Earnings call transcript Q4 2022

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Cutera Inc. Fourth Quarter 2022 Results Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. will opportunity there ask presentation, the be to an questions. After Instructions] [Operator

today financial guidance The forecast These forward-looking company's or forward-looking statements statements. of purposes. but limited discussion any including, aspects future provided for includes current reflect business the of to not expectation management's modeling current

Forward-looking is, its on nature, dynamic that based statements change. information and are current by subject to

geographies. and include, plans financial productivity guidance, statements regulatory expand regarding into among and statements additional introduce to improvements others, new products Forward-looking approvals,

identify we today. our statements, to to that you words in For statement the forward-looking press refer encourage safe harbor earlier release

All risks entitled filed. and our Form risk Risk those are Securities as forward-looking section our updated factors in in the statements Commission XX-K, Form subject and uncertainties, Exchange subsequently Factors the XX-Q filed to described in with including and

statements Cutera obligation not results you which Cutera only the as on may place are or events. to update the current from reliance to differ occurrence undertakes expectations. events publicly reflect speak reflect of Future management's undue made. also cautions unanticipated they forward-looking new date information, to of or no circumstances materially forward-looking statements, to any

we will an basis. can financial to operations, of believe underlying from measures, discuss including comparing results adjusted greater measures complete results period facilitate period. Cutera's these on financial analysis more results ongoing non-GAAP We a and addition, into In transparency particularly when

non-GAAP release. operating GAAP. as the by to measures not performance These earnings refer reconciliation be Please financial prescribed our considered non-GAAP of measures to the with, in should GAAP to alternatives but along measures

Cutera. to Please, over the of would go CEO With like that, I turn Mowry, conference to ahead. Dave

Dave Mowry

quarter and year welcome Thank earnings full you, and XXXX operator. to Cutera's call. afternoon fourth Good

Financial Rohan for you glad are our me joining today's on Chief is can that We call. this Officer, us update. join Seth,

XXXX pass results with initial the of will Rohan, call periods, and other provide of our market I on the our financial full financial indicators both provide of will the as as our for the view quarter as our XXXX XXXX on segment you health to fourth year leading initial XXXX you underlying then fundamentals will I and guidance. with share performance, call, well quarter year well who fourth the as greater During the detail business. full

Rohan's thoughts ahead, Following over share I financial will the business AviClear the transformation of our we year product remarks, the the the XXXX. on course associated delivering anticipate of contributions and

our prepared questions. call to Following open we who the the your remarks, will over to call turn then will the operator,

With that being said, let's in. dive right

our I'd the year for XXXX a full perspective. performance put to point As starting into like call,

team our geography During coming with results face macroeconomic XXXX, category. across This delivered almost business, contributions the every each year material confidence consumer foreign exchange wavering pressures, strong top and in currency growth headwinds. a in of product with line performance came full mid-teens the constant from

of types. brought energy-based for mild, treatment we treatment device scaled we first severe all by the moderate always Additionally, the for nearly market successfully total and our the will FDA-approved market is to of The be across AviClear laser and X.X-fold. an acne addressable device believe innovative and which skin first-mover increases acne,

dermatologists critically, patient change, in are procedure treat see this that device the the Most the We remain unmatched. will clinical safety acne. profile, way outcomes from convinced signature indeed that and

aligns that By with market deliver of business through true model. financial the approaching were acne the we collaboration owners. AviClear, those of a with the to novel Finally, interests, a practice shoots AviClear tightly transformation, intend we the have to established placement-based approach unique we clinicians our the green see able and to

in revenues, migration business increased AviClear greater positive on to additional the on discussion. for relationships, in of program, Cutera. customer later significant cash provide top energize in trajectory the to will recurring commentary our to of EBITDA, impact linearity the addition, change AviClear we I margins, In our expansion expect line transformation this generation gross of and also a

quarter Turning fourth performance. now to XXXX

North While announced launch a to November was core lower expectations, revenue line in in on equipment XXXX. North of miss sales extent core was than sales. Top period, shortfall expected, North full following our the AviClear product overachieved lesser American capital American driven consumable we placement by a the and its American

supporting were key of volume which, the account extend as Both managers in placing of customer the focused for period, promoting, AviClear. demand activity directly and in impacted the AviClear increased on by

the In As same driving and previously to of its American the place and over-index core quarter on perhaps capital we XXXX, North team sales force focused bookings, some disclosed, their fourth equipment. are AviClear, efforts our capital efforts. utilizing sell AviClear

reps interest North customer full strong underlying into of The throughout occupied the routine November core deals shortened diverted deals quickly most volume sales demand of in a much attention of capital our deals pipeline. time finally American core capital AviClear to sales processing back close December. pivoted converted launch, and for AviClear, away, their when higher-than-anticipated team and that frame, to left significantly Following

some believe Based $X still advancing spent launch, of roughly the recovered course translated core may with that resulted have $X XXX to capital approximately upon XXX deals, million we which of be experience, prospecting would thus over and into million the efforts our of capital have closing which to XXXX. in these AviClear estimate million revenue, far we to core AviClear deals,

We quarter cause and rep monitoring; are: sales have and to issues already taken attention one, number revenue underlying of address and requiring our structures. XXXX. shortfall, commission two, The activity Number fourth action in root sales capital incentive the

rewards sales goals issues. with this in the turn, the an in resulted we activities, that went has And achieves construction of to leadership both AviClear implementation uncapped, sales segments. compensation and team, program and Following these understand end-of-year the work when it American core, North close performance to in

segments. Additionally, activity application, ensure and across sales applied we have rep Salesforce.com adequate utilizing time being implemented attention, help each managers that to tracking are by both

of sales force. these oversights are upon skills management obvious, and our they may or American reflect not repairs While seem North do these capabilities the

As this team. the you in the AviClear and confirms placements discussion, in hear sales period level of exceptional the later, capabilities, the quality will of

reviewing in goal we the sales managers strong hand, actively leveraging senior the our that a at levels within are segments. data both with applied processes. are activity our delivering of improve with message, Meanwhile, accountability Now to efforts this sales the across information organization, be sales must

capital with Additionally, scaling staff on deals its the customers. is that focused to our internal support ensure remain processing team, tightly can their sales

have I share results. are ahead Before to indeed would XXXX macroeconomic impact on our we some call headwinds Rohan, of over believe will We and that turning markets, the our the to present that view look as like to XXXX. an these

believe be market lasting patient not traffic. we will these as steady to that changes highlight Nevertheless, underlying long feedback continues

confidence Additionally, our over in well-booked continued we routine practice have seen reinforcing the schedules, indicates assessment past of our resiliency the six quarters. that activity levels

place With be AviClear procedure impacted to a process now to we in believe recession-resistant full launch, can into that leverage more factors. more may and we be areas products what macroeconomic by

to In leverage the some with end, by in be expect bolstered core new above-market the combination introductions able products, to business. AviClear product our performance deliver we for to

call financial color year With provide outlook. over fiscal Rohan and that, our performance turn to to XXXX let our on some Rohan? additional me the

Rohan Seth

Dave. you, Thank

our We remarks, be to this results conjunction A non-GAAP prepared to included release. I non-GAAP listeners discussing As is review of metrics GAAP GAAP results. with reconciliation I earnings encourage complete my some want and earnings in non-GAAP the note I contained as readers review in release. that to will our in

as-reported $XX.X for X% increase was approximately million revenue the in to of $XX.X XXXX basis. quarter Total an same an on fourth the compared million period for representing

XX%. we quarter, to the was approximately foreign headwinds continued currency During constant and currency face our revenue growth meaningful

American up over and of revenue from in XX% Fourth quarter as was reported equipment the year. XX% fourth of capital constant $XX million North currency million by for XX% decreased International equipment revenue the $XX.X quarter quarter fourth XXXX. prior capital the in

and million and Recurring revenue Consumables, and The XX% revenue Service, the in reported Skincare Global lines was defined fourth for product XX% the as in million AviClear quarter currency of in as the of generating prior our Skincare XX% ramp currency. constant quarter. $X.X AviClear up $XX.X increase up year over driven $XX.X fourth largely XX% in million by as reported the constant revenue continued was and

came decline and on from account basis onboarding million sales XX% $X.X team partially activities which clear events. This our growth of diverting the at away by was core revenue, Consumable currency driven offset XX% reported in as by constant our a down a promotional in attention

margin Our of increase XXXX period service XX.X% profit compared of at gross grew an gross basis. million to X% slightly revenue on constant same Non-GAAP a representing quarter for basis fourth year. a the last with $XX points XX of was currency the fiscal

the prior is American been given headwinds, AviClear Excluding improvement bringing than fourth This impact the approximately particularly the capital was XXX XXX over revenue point our in the foreign margin in point and North quarter from the non-GAAP a that exchange transformation basis highlights shortfall have to basis XX.X% an business. more would impressive year. gross

Total quarter the operating million $X.X the compared expenses expenses year. to million were period non-GAAP $XX.X AviClear. for for million number same are XXXX $XX.X within of Included in to this fourth last related

in for XXXX increased last driven to million for period continued XXXX were travel. were the period $X.X commissions million million last Non-GAAP for of force, our fourth same same marketing and Non-GAAP million year the expenses $X.X fourth expansion $XX the sales expenses quarter by compared the and $XX.X quarter of year. to sales R&D higher compared for

XXXX was increase were same compared by to an debt Non-GAAP an in $X.X head sales. capital expenses the core the receivables. in and last driven reserve the sales count G&A mainly force in of same to our that million driven impacted period This fourth quarter million year our distraction by bad expansion aids for due in $X.X equipment increase

addressed We expect to largely this couple of next the quarters. over be

operating million FX AviClear. quarter period, of and fourth million with $X.X more EBITDA, largely American North of of driven costs associated the income, full XXXX, headwinds to million the non-GAAP in refer by we adjusted the compared was $X.X $X.X than For launch as which prior our to year

were there material our position. Finally, tax or changes no to significant

quarter We Turning driving cash proceeds balance of third and our $XX.X increase primarily with of now $XX.X securities driven from increased the net convertible million or million of million $XX.X million cash utilization the compared sequential offset at sheet. by marketable deployment. quarter, $XXX.X to the million end rate, of to our partially the ended debt over by $XXX.X December

you provide back full to year would with call to of I our the turn I like XXXX. the Before for outlook Dave, over

guidance are year. million, growth $XXX current At prior We revenue currency to over million expect QX we rates, eclipse exchange XX% headwinds constant to exiting issuing foreign implying currency $XXX XXXX. to of the constant XX% these

consumption to be the first in in adjusted half to through progress to cash sequential will projected AviClear $XX single-digit $XX QX. our We continue a half we of we expand in market we the we with By of And XXXX cash, the low North American than of happen flow XXXX. which expect breakeven. achieve primarily greater continue as million expect expect also footprint to consistent improvement consume EBITDA in millions XXXX, to to with million, cash as QX

reminder, consumed has of a cash business the and year. our As QX core in historically QX

over that, back call will now to the Dave. I With pass

Dave Mowry

Thank you, Rohan.

in customer demand, accelerate enabling our especially As the broad device was noted exceeded period earlier XXXX. to today which as the AviClear pleased us in acceptance to of for placements earnings corresponding as see well units AviClear release XXX product I the

with markets on and outcomes with risk a as delivery indeed with ensuring profile Our improved increased is as adoption, resonating providing time leading focus dermatology patient for clinical patient less of well team's relentless results, practice reduced within support in patients. the the

expect exit installed to XXXX devices quarter of devices and X,XXX placement to per We XXX AviClear greater AviClear and in active than with base. a XXX sustain our rate

with intend of utilization practice. we As plans, part increase driving AviClear to each efforts XXXX our our in

our on functions. of to through we been To-date, first-mover execution our efforts prioritizing product clinical, have the and leverage we the development, advantage fully placements created regulatory

applied base We initiated we across patient coordinated in and improvement will deliver revenue have profound traffic. installed the recognize that any a also utilization effort long-term and a in profitability growing impact incremental drive our to

campaign. include of continued indication over and patient procedure and optimization, expanded These course expansion, and the efforts and XXXX XXXX build outreach an awareness will

gross performance linearity desired XXXX. just greater in the lead and will improvements contributions placements of financial margins, to as nature increased increased AviClear will of utilization recurring of these contributions. The mix an ramp results key metrics The higher expanded ultimately quality revenue, visibility around such business, we across exiting profile continue state corner and AviClear are financial as EBITDA, accelerate sustainable our and program. positive to flow our adjusted and These transformations cash contributions finally, sustain

your Operator? open we Now, will the call questions. to

Operator

is you. question-and-answer Block Stifel. first Instructions] now Thank begin We'll session. the [Operator Our Please from question Jon go with ahead.

Jon Block

was difficult, XQ force, capital afternoon. as you said good augmenting American making changes, North Thanks, sales changing start You're you're with guys. the XXXX Hey, I'll it David, incentives. you're right?

have arguably those some products capital you are new in later but year. think the I

thoughts give guidance you little waiting and think as us again don't XXXX bit but details for specific would like get then the provide. as a considering products my directionally are I on events, specific that to many to you that just I you help ask the can want changes of the to don't Thanks. much if capital And So you follow-up. those out quarterly new – XQ I'll

Dave Mowry

that this Yes. quarter Thanks, for I think And seasonally of be in thinking again capital you like year, I would the every Listen, we and Jon. low And capital think XXXX generally just the question. to expect is see this thank the quarter. sales. quarter other the placement is about first for to way

we still those may some out the deals to artifact half not quarter. first in the the mostly through in just push maybe thinking over think bleed that had those will actually continue and some I quarter. the we of may first But I'm first of that probably pipeline the see and

think signs significantly that some that people have I I'll degree But think that or do will is out don't hesitant, there any there down. I we slightly see say patient perceptions macroeconomic telltale hesitant. that spending be off of

our good majority information our patient seeing at just of of concern other we're fact that a to but than these and long customers. lasting the customer. maybe suggests steady things the In that perception are show continues near-term And not anything traffic

would of very of may similar a they that we'll a over little think terms concerns. quarter outrun think the would in in shadow first the expect seasonality the bit create XXXX in think we've I than And follow I we those while long-term, I quickly seen a So capital historically.

Jon Block

as Thanks quarter my for Very it. second per And is Got sure said helpful. if million-ish question XXXX. helpful. while thoughts I But XXX just at XXX little lot. a $XX to do? The maybe system to how you And in want does placed the Okay. revenue but ramping so that a number cohort if systems for were maybe you to revenue Thanks. AviClear. that perspective So just to for pivot not and things these really of it AviClear data at know and anything or those really utilization a September, I comment take on a on How comment And to get end two those on? up long items XXX approved the from March. are the perspective? from look these things a running? cohort around any mean number you're of willing take you

Dave Mowry

John. Yes. Thanks,

practice I think have the on in of where number depending aware on first type device that the of one. the then of But are it's all on it's placed, of that most listeners volume. does impact speed which placed secondarily uptake, some that important sustainability

the uptake diagnosis. kind and upfront for rewire room practice with seeing tough room particular, seven reengineer much What practice it's that slower doesn't move from and take behaviors minutes, we to to I are med derms, in because as a of is in of something

to practice being into bit takes So able the that little a work. more accept

some That to also they said, they being practice. adopt before very and they're want results across driven clinically their broadly see

the So longer-term. we patients they adopt change greater to once a convinced the more to they move lot utilization see slow but have get them ability they further in have to of that a and

they're patients device. aesthetic derm the right with a and the the that that more recruiting for to at rate sourcing Contrast may med the couple have acne not actively same now be But in we'll willing aggressive little they is. or use placement maybe a derm, quite say in is of bit of patients and

patients burning and some through them periods. So low having then we see

different. each think very are I So

your pool an get But aesthetic time. to they couple And particular to once get see question, a increasing and those they aging both period the an of med their patient certainly over the over of to rate you extended habit utilization derms are that derms, in the refilling into answer we as of of well. recruiting run will of established And see that we leads higher quarters. time if

Jon Block

$XX threw that? number for that just thoughts just AviClear I'm million sorry. the around I Thanks. any And out

Dave Mowry

avoiding that, number giving I a understand financial what think, it guidance. because was we I out is, think number don't I we aren't overwhelmingly there's think AviClear And in the is conveniently look, and street. But that scary us. to I

know we out However, that for we our cut work us. have

Jon Block

Thanks for your guys. time

Operator

The with go next Kaczor Blair. Please question ahead. is from Margaret William

Margaret Kaczor

on side, capital KAM quality taking structure, follow-up the Thanks that of for kind Hey, to lead good adjustments cetera. maybe as et the of I series wanted you both improving on as everyone. talked afternoon, question. guys side to well the submission on the

those metrics traction weeks bit you're given a going Can of to you or give now implemented? when it's it think to is having last these few that kind into take changes or get sales of So quarter? sense you changes month the the us little time did the just of capital any whether maybe weight a more

Dave Mowry

you very in just Great. we much different By by that Margaret, that, the elements question. have would thank two place. for the start way, I there's put saying

The an avi think, commission the in that's well time is the dramatic and immediate a that generally And they more impact, the period. apply and towards of well over their core segment first going both uncapped performing structure people's I an effect have weighted to on as as segment. significantly how use themselves

as probably sales had an out much bit February and So, we national a change immediate of rolled get I more effectively more that's think our in little probably meeting.

So desired and time. have on I think sharing effect time will that the that,

how outcome and and see The reps, reps, cetera, sales taking, output how element patterns can but of intent is up practice, of actually monitoring data. micromanage setting And calls they're is the identify actually not that so attention processes, different if our many coach many other to you and notice that what's time et and cetera. rather et will with they're best to the meetings we

to little take to improvements and bit more a time that's And probably process I think into process going changes. coalesce

However, at a the certain what's happening of want I have just from think what effect on to with rep, see halt we bit on that they areas they'll activity early of looking kind is focus. little more a manager probably their will get

increased being really don't we going quarter of focus probably process I I this until and the do quarter, see attention early end while improvements think think So to see some we're towards next spent nonetheless. may

Margaret Kaczor

Okay. point. a big on to increasing follow-up all guess still in seen increase That's accounts this that Obviously just lot I even we've a helpful. further And the that's year.

So you number how about accounts either do anything up points or to that accounts KAMs And of end if number you. reps and some would have these like of know don't you accounts useful. sales the avi and/or Cutera sure frankly think numbers the that rep in can new experience. that it these a having give of touch good make be I new Thank

Dave Mowry

Yeah.

I this. into in of to quarter we're think interesting part kind and early – about the bit of that, Fundamentally, rate of of But kind talk this a first laying fourth is in placements. notice you'll in a really we ourselves little quarter. outpaced sustained in future line

a require outcomes. significant for this to you going will reps, amount we'll always have of and us capital performers a not better churn, higher So although, is add if to

add a there's don't key we'll players to growth, I scale as team we going to to and capital going think see to best you're reps think service will continue be added, engineers in market such the you're see to see field I the to to you'll team. we to an as think you're I added. support some being the But the account their investments. do intent to the a I the right? on and it be some think opportunity add great upgrade roles. see installations will back-office And field. our field that's the few I managers going expand operations of what where do significant accounts to that And to continue require is have continue and I but with think to think new people But put of our for investment expand our continue will going amount

Margaret Kaczor

Thank Great. you, guys.

Dave Mowry

right. All

Operator

Our O'Brien Matt next ahead. question go from Piper is with Please Sandler.

Sim Kaur

We year. Hi. us help of is just Sim you the the could for were a hoping on Matt. This bit little guidance for with

you So roughly think growth you there's of be Can XXXX. to would from anticipate for much XX% how AviClear. that of

Dave Mowry

the the now. I say please us. for question, Matt part hi way, thanks and right the would most to breaking not for say, we're out By for that

We will the the over course year. be reporting segment of by

little data of are bit this far So this would obvious as quarter, we of us more become out the kind in to of to get kind fourth too we premature will for a as bit quarter coming and be It AviClear. out. put of little more more we front where over-indexed in the a

from some probably have And on early of some hangover quarter. this effect the that will

we out So accounts see we're we these lay we as shifting and guidance a we nature. AviClear which as a really don't can onboard want and go, the get to productive to at speed them specifically stand-alone until

to going the think hold we're for back time being. on I that So,

they'll think numbers. able they be get that achieve a items. a put little out certainly have of I of and us do line going our the inoculated things. in delays be been purchases people to there's do rates notes their XXXX, successfully to due of have think pipeline and I I we salespeople that a deliver to But don't capital and back or anticipate other sight from to overhang regarding that we're markets, good able very rate. to that bit those have very, interest a And regarding think for throughout And lot to

we'll see So, grows. without as breaking think I base team, growth the that good see continued from installed apart, performance AviClear do I of think and we'll our

Sim Kaur

you. Thank Great.

Operator

next Inc. Sellers from ahead. Greg with is Stephens question go The Please

George Sellers

to start That wanted quarter. our George. margins. is in with expectations I the This gross outperformed maybe Hey. just

a good few puts we the and curious just starting quarters there if to and think model what next years? as this point us the were? So, about takes And is for maybe

Dave Mowry

to green of knew I it try of from constant product. the think and you impact -- think see the was of acceleration come Listen, think seeing towards the that continued George as we're I you non-GAAP George. I AviClear just starts to by at hint probably we it I that way. can And growth we look probably to likely margins. lot this kind by that people will shoots that think XX.X% got gross a saying kind Hey, could our those the there's remember a And numbers. year viability. growth I currency And ago to the of think of and up thought that get a that takes specifically we Rohan got we puts shows that let this into XXs. us I But that us maybe speak

Rohan Seth

Yes. Dave. Thanks

and to seasonal costs over scale, now the think So a addition getting And the been capital. biggest The continues and our well of bit. overall that I We've I'd in was health past this lift the as quarters. say, and $X put we're for being some couple to of margins million. carrying AviClear in high to we've here mix company. AviClear those been simply the planning of off little of so year-end cash P&L revenue And financial

George Sellers

revenue Okay. little The bit. put line switching international That's And a here strong really another helpful. up gears maybe really quarter. systems

expectations are, for give you drivers could what the year? your us just on some of So, and there next color some

Rohan Seth

currency between why our was non-GAAP get that, there's and almost a me, there spread the XXX reminded I and think before constant biggest margin that's margin, obviously which basis awesome. Dave take points FX our we particularly of just crested which XX%, to was over

Dave Mowry

I We of more there are problematic the perceived in Yes. U.S. think present. probably Internationally, this that do Thanks, be may real. somewhat We don't than we fact macroeconomic significant that think temporarily. some speaks Rohan. rates are a pressures. some the little that believe to think bit and And think there these we be to interest

although, the Europe being stymied things distribution as growth year-over-year we a fairly longer-term. And year. Australia markets. decent somewhat And saw performance our and of was held well at Japan we own. both kind more the the of expect Europe had end in InterContinental kind from their said, it Those of over in

But have actually of quite the gone they through knowing it particular terms Japan performance in compelling in local to economic challenges some see was and of that pricing environment. in the

So and or was say at strong Europe. InterContinental probably capital really and in expectations and Japan above in I'd Australia

George Sellers

Great. time you for all Thank Okay. the evening. this

Operator

is Group. question with next Vendetti go from The Anthony ahead. Maxim Please

Anthony Vendetti

Dave. Thank Yeah.

couple a provide total, on, so just the specifically? questions you follow-up placed, fourth of AviClear, XXXX did for XXX in were that more number the So quarter

Dave Mowry

I not, the units oranges, end to just the I frankly. apples talked accuracy the of do kind about can number did placements active with didn't But being at I wanted XXX. mix QX report probably get we a Anthony. were of want what more and and We at installed that what which had to is on regularly to are indeed shipments.

year. amount in probably of But a disclosed us XXX confidence coming little through total XXX the that that gave continue doesn't this I year. the placements and giving the the which customer I will interest we quarter great demand per think bit tell see you we to in saw over that, XXX you to this that fully

that, you demand been very would very, overwhelming to I that see our from gratified base. it's kind of and tell So, customer

Anthony Vendetti

AviClear the have generated Okay. during from correct? the And the, revenue AviClear, the fees in fourth And then consisting spending. revenue $X.X million there device $X.X million that that of quarter treatment quarter. Is was and was in license

Dave Mowry

Yeah.

devices. amount I installed the will place the through if to cost think, not point a that it's we're small kind base is still you of enough over-earning of where moving

XXXX. about that over think accretive I exiting we've during cross being to talked expect cash we And $XX million.

Anthony Vendetti

than a that XQ the said, maybe XXXX. is same Is thing Cash accretive, little cash AviClear that Rohan is AviClear flow it for XXXX. in I that breakeven, in think bit or later

Rohan Seth

guidance specific said breakeven script XXXX. look not flow is at cash And end to... back specifically, and was but go What I that the can towards of I my

Dave Mowry

Yeah, for consolidated, that right? the was

Rohan Seth

company. entire the For

Dave Mowry

Yeah.

what has expect said continue. we've And is core historically we us made XXXX. back business that we for historically that I cash that, in changes will the a think, Anthony some been from since us generator

AviClear nature cash does the But before of the That over think generated end through of that it even funded course it totally you'll being into an kind it XXXX. the faster see of fourth And over, will some when quarter accretive then has expenses. cross accelerate AviClear being as crosses crosses over. of of indeed, said, we partially AviClear even

Rohan Seth

Yeah, exactly.

said clarify to by script Anthony. I QX my in XXXX, Just

Anthony Vendetti

Okay. I right. sure, if got I Yeah. that wasn't

in prior QX, constant what AviClear other consumable stuff Okay. And in what's the in major some year? was what -- for there. it's the currency are that fell so you If that. of know, but I then, off things was revenues? So And remind the XX% us from reason there's that product

Dave Mowry

Yes.

including all, There's to want that AviClear in clear. iD the our truBody finally, no are tips of and products is of and there truSculpt First revenue some sell sales And hand that be core. we we well Secret associated flex with consumable as in product line the consumable the as PRO the truSculpt for distribute. associated RF. What's that products very consumable pieces Secret our with I product

product. we engage number clear of said the in came The and vast though. America share a AviClear script in my And lion's of that their kind that I as So to just onboard the receiving miss be of we're North of there. to accounts in that result were that's trying what's number like came

With training. that there do and help you of make many receive wanted to that sure them obviously And the getting placements customers had to shipments, we the were lot or we product a product.

consumables. or or result we showing events, doing truSculpt houses result practices fewer we net as flex net practices the sell promotions, base. many demonstrating that as as promotional the and customer was open Secret didn't not at of the iD nights VIP So the And many product to or of did

So and addressed, here horse and first back capacity get on that in staffing we're a that's we'll that issue we've that expecting the quarter. issue a

Anthony Vendetti

Okay. if or add significantly I on add lastly XXXX. have incrementally quarter? XXX placements you to difference force look you And feel Great. clinical you that product the sales key that do the at AviClear end And is of the and to then another do that the support XXX account per on -- AviClear to guess out you there do the or How there's right you before how need product? managers and the you now, have there. now and like FDA-approved between goal to

Dave Mowry

Look, I offer you order the could take them. those in

a all come in technology ways there that product wavelength serves another And as that's XX, of that market of it uses have. validation First some to we the laser. is XX-nanometer

discomforted they anesthesia, come rest but I don't close details there, adjunctive And into this rather that without less And on pain than the basis. not or of a the to without that while of are a subset may very procedure. do a a any there folks. to handful duplicating we're get However, of is able be always those therapy all handful our really routine people complaint

with product So risk and very we associated that different product. have there's profile, discomfort even safety this the profile a versus competitive

AviClear of manager then now them. practice the the the also capital necessarily I financing, support only their patient a certainly a know a two, them it a we've account we investment no see I and to don't around things expense in device the competitive but And be to think number practice, while particular, the see marketing validation, ancillary developed if them promote give med in low that their So down, derm as not And loyalty around programs that I to device. program an model it that very a allows that allows outlay opportunity number one. and key for cooperative

we've competitors think offer. got and broad very support can't I moat of functions that So opportunities our a

place earlier, from Finally, on and have But number accounts scale account of staffing need we key we add in to customers. not if number would add to we a you since as a continue said settled and I broader team a devices, new probably we've guess add necessarily will I say, expect and how a capital these as flat our need to place. I perspective, to we do sales reps our to to many managers

in from So all good I think shape way the staffing. around we're our

base I grows, you'll and capital of will in it but don't think the see team. service I think the sales year our additional installed course investments necessarily be support as over

Anthony Vendetti

Thanks. the I back in Great. Okay. hop queue.

Dave Mowry

Okay.

Operator

the over conference to turn remarks. concludes session. like any to question-and-answer the for would This Mr. Great. I closing back Mowry

Dave Mowry

and for Thank dialing you again in our thanks operator for update.

for and AviClear bullish between evenly core with performance acceleration. business our XXXX split focus very are We

forward updating come with Our May to early and look next update you our first we results quarter will XXXX then.

Operator

call. today's concludes This conference

You pleasant may disconnect your have day. and lines. Thank you a for participating

Cutera (CUTR) 28 Feb 232022 Q4 Earnings call transcript