CUTERA Reports Second Quarter FY2023 Earnings Results on August 8
August 21, 2023
🌥️Earnings Overview
On August 8 2023, CUTERA ($NASDAQ:CUTR) announced its financial results for the second quarter of FY2023, which ended on June 30 2023. Revenue for the quarter totaled USD 61.2 million, a decrease of 4.7% compared to the same period last year. Net income was -31.6 million, an improvement from -47.3 million in the same quarter of FY2022.
Market Price
Following the announcement, CUTERA stock opened at $18.1 and closed at $17.3, a decrease of 5.9% from its prior closing price of $18.4. The decrease highlighted investor concerns with CUTERA’s financial performance for the quarter and raised further questions about the company’s future prospects. CUTERA’s management responded to the earnings report by reiterating their commitment to focus on innovation and cost containment to drive future growth. Overall, investors were disappointed with CUTERA’s second quarter results and will be watching closely as the company navigates the upcoming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cutera. CUTERA_Reports_Second_Quarter_FY2023_Earnings_Results_on_August_8″>More…
| Total Revenues | Net Income | Net Margin |
| 246.37 | -76.58 | -31.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cutera. CUTERA_Reports_Second_Quarter_FY2023_Earnings_Results_on_August_8″>More…
| Operations | Investing | Financing |
| -105.24 | 122.99 | 87.85 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cutera. CUTERA_Reports_Second_Quarter_FY2023_Earnings_Results_on_August_8″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 463.83 | 532.97 | -3.48 |
Key Ratios Snapshot
Some of the financial key ratios for Cutera are shown below. CUTERA_Reports_Second_Quarter_FY2023_Earnings_Results_on_August_8″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.3% | – | -27.2% |
| FCF Margin | ROE | ROA |
| -59.1% | 77.5% | -9.0% |
Analysis
At GoodWhale, we conducted an analysis of CUTERA’s wellbeing and found that according to Star Chart, CUTERA is strong in terms of growth and profitability, and medium in terms of assets. However, its dividend score is weak. Moreover, the company has an intermediate health score of 4/10 with regard to its cashflows and debt, suggesting it might be able to pay off debt and fund future operations. Based on these findings, we classified CUTERA as ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Given these results, we believe that CUTERA may be of interest to value investors, who are looking for stocks with low PE ratios, and income investors, who prioritize dividend payments. Moreover, growth investors may also be interested in CUTERA since it has strong growth and profitability scores. More…
Peers
The medical device industry is highly competitive, with Cutera Inc competing against Second Sight Medical Products Inc, Urologix Inc, and Senseonics Holdings Inc. All four companies offer products that improve the quality of life for patients, but Cutera’s products are the most advanced and effective on the market. Cutera’s products are also the most expensive, which has allowed the company to maintain a dominant market share.
– Second Sight Medical Products Inc ($OTCPK:ULGX)
Urologix Inc is a medical device company that specializes in the treatment of urinary conditions. The company has a market cap of $82.91 million and a return on equity of 8.06%. The company’s products are used to treat conditions such as urinary incontinence, urinary retention, and urinary tract infections. The company’s products are sold in over 60 countries worldwide.
– Urologix Inc ($NYSEAM:SENS)
Sensonics Holdings Inc is a medical technology company that develops, manufactures and markets continuous glucose monitoring (CGM) systems for people with diabetes. The company’s products include the Eversense CGM System, which is the first and only FDA-approved implantable CGM system for people with diabetes; and the G4 Platinum CGM System, which is a next-generation CGM system that is designed to provide real-time glucose readings for up to 14 days.
Summary
Investors had high expectations for CUTERA, however, the company delivered underwhelming earnings results for the second quarter of FY2023. Total revenue for the quarter fell by 4.7% year over year to USD 61.2 million, and net income was reported at USD -31.6 million, a decrease from the prior year’s figure of -47.3 million. These lower than expected figures caused the stock price to drop on the same day. Investors should therefore approach CUTERA with caution, as it may take some time for the company to recover from this dismal quarter.
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