Exhibit 99.1

Cutera Announces Third Quarter 2022 Financial Results

Continued momentum in Capital equipment sales, posting 27% growth as reported and 32% in constant currency;

Strong Consumable product growth reflecting robust underlying treatment volumes;

Moving to full North American AviClear launch following successful limited commercial release;

Reiterating full-year revenue guidance despite foreign exchange headwinds, implying year-over-year constant currency growth of approximately 20%

BRISBANE, California, November 3, 2022 ─ Cutera, Inc. (Nasdaq: CUTR) (“Cutera” or the “Company”), a leading provider of aesthetic and dermatology solutions, today reported financial results for the third quarter ended September 30, 2022.

Third Quarter 2022 Financial and Operational Highlights

•Consolidated revenue of $62.8 million driven by capital equipment and consumable product demand.

•During Q3 2022, over 100 new active placements of AviClear devices, up from the over 50 in Q2 and slightly ahead of the previous 100 device Q3 commitment.

•Strong Consumable Product Revenue, up 66% as reported and 74% on a constant currency basis, reflecting robust underlying treatment volumes and the inclusion of AviClear patient procedure revenue.

•GAAP Gross margin of 54.5% in the quarter, compared to 58.2% in the prior-year period.

◦Excluding the 170 basis point impact from AviClear investments and foreign exchange headwinds of approximately 250 basis points, gross margin would have been 58.7%.

•GAAP Operating expenses were $43.7 million in the quarter, compared to $32.8 million in the prior-year period. Operating expenses during the period included $8.1 million in AviClear spending in addition to $1.4 million in ERP implementation expenses.

•GAAP Net loss was $12.1million, compared to a Net loss of $1.4 million in the prior-year period.

•Adjusted EBITDA was a loss of $2.0 million, compared to a gain of $5.1 million in the prior-year period.

◦Excluding AviClear impacts of $7.9 million in the quarter and foreign exchange headwinds of $3.1 million over the prior year period comparable adjusted EBITDA would have been $9.1 million.

Key Revenue Metrics	Three Months Ended September 30, 2022		% Change 2022 Vs 2021		Constant Currency
Capital Equipment	$	41.0	27	%	32	%
Skincare	$	9.4	-36	%	-21	%
Consumables	$	6.1	66	%	74	%
Service	$	6.3	-6	%	-1	%
Recurring	$	21.8	-13	%	-2	%
Total Revenue	$	62.8	9	%	17	%

Key Profit Metrics	Three Months Ended September 30, 2022		Constant Currency
GAAP Margin %	54.5%		57.0%
Non-GAAP Margin %	55.4%		57.8%
Adjusted EBITDA	($2.0)		$1.2
% Margin	-3.1	%	1.9%

Key Revenue Metrics	Nine Months Ended September 30, 2022		% Change 2022 Vs 2021		Constant Currency
Capital Equipment	$	121.2	26	%	30	%
Skincare	$	30.7	-21	%	-8	%
Consumables	$	15.3	39	%	44	%
Service	$	17.9	-9	%	-5	%
Recurring	$	63.9	-8	%	1	%
Total Revenue	$	185.0	12	%	18	%

Key Profit Metrics	Nine Months Ended September 30, 2022		Constant Currency
GAAP Margin %	54.6%		56.5%
Non-GAAP Margin %	55.6%		57.4%
Adjusted EBITDA	$(7.4)		$(0.3)
% Margin	-4.0	%	-0.2	%

“I am pleased by the momentum we continue to see in our core business, as prior investments in sales force expansion deliver strong results in both our capital and consumables product segments across North America and other direct-sales markets. We remain watchful to the global macroeconomic conditions and are prepared to respond quickly if warranted. Based upon our current view, the strength of our third quarter performance, and our capital equipment pipeline, we remain encouraged by the resilience of our core markets,” commented Dave Mowry, Chief Executive Officer of Cutera, Inc.

“During the quarter, in addition to setting an all-time high for 3Q capital sales in North America, our sales team executed the second phase of our Limited Commercial Release, placing over 100 additional active AviClear devices into the field. These efforts enabled us to validate several new processes and as a result in November we will move to a full launch of this revolutionary product and procedure in North America, slightly ahead of our previous plans.

2022 Outlook

Based upon our results year-to-date, despite unprecedented foreign exchange volatility Cutera expects to finish 2022 at the upper end of revenue guidance of $255 million to $260 million, fully absorbing the impact of approximately $17 million of currency headwinds. This implies constant currency growth of roughly 18% to 20% over the prior year.

Management now anticipates the placement of an additional 200 AviClear devices during the fourth quarter of 2022, bringing the total number of active AviClear platforms entering FY 2023 to approximately 350.

Conference Call

The Company’s management will host a conference call to discuss these results and related matters today at 1:15 p.m. PT (4:15 p.m. ET). Participating in the call will be Dave Mowry, Chief Executive Officer, and Rohan Seth, Chief Financial Officer.

To participate in the conference call, dial 1-800-319-4610 (domestic) or + 1-631-891-4304 (international).

The call will also be a webcast and can be accessed from the Investor Relations section of Cutera’s website at http://www.cutera.com/. The webcast replay of the call will be available at the same site approximately one hour after the end of the call.

About Cutera, Inc.

Brisbane, California-based Cutera is a leading provider of aesthetic and dermatology solutions for practitioners worldwide. Since 1998, Cutera has been developing innovative, easy-to-use products that harness the power of science and nature to enable medical practitioners to offer safe and effective treatments to their patients. For more information, call +1-415-657-5500 or 1-888-4CUTERA or visit www.cutera.com.

*Use of Non-GAAP Financial Measures

In this press release, to supplement the Company’s condensed consolidated financial statements presented in accordance with Generally Accepted Accounting Principles, or GAAP, management has disclosed certain non-GAAP financial measures for the statement of operations and net income (loss) per share. Non-GAAP adjustments include stock-based compensation, depreciation, amortization, executive and other non-recurring severance costs, customer relationship management (“CRM”) and enterprise resource planning (“ERP”) system costs, non-recurring legal and litigation costs, and the loss on extinguishment of convertible notes. From time to time in the future, there may be other items that we may exclude if the Company believes that doing so is consistent with the goal of providing useful information to investors and management. The Company has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure. The Company has not provided a reconciliation of non-GAAP guidance measures to the corresponding GAAP measures on a forward-looking basis due to the potential significant variability, limited

visibility, unpredictability, or unique non-recurring nature of the items. Forward-looking non-GAAP measures include adjusted EBITDA. The Company defines adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, stock-based compensation, executive and other non-recurring separation costs, customer relationship management and enterprise resource planning system costs, non-recurring legal and litigation costs, and losses on the extinguishment of convertible notes.

Company management uses these measurements as aids in monitoring the Company’s ongoing financial performance from quarter to quarter, and year to year, regularly and for benchmarking against other similar companies. Non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. These non-GAAP financial measures should be considered along with, but not as alternatives to, the operating performance measure as prescribed by GAAP. Non-GAAP financial measures for the statement of operations and net income per share exclude the following:

Non-cash expenses for stock-based compensation. The Company has excluded the effect of stock-based compensation expenses in calculating its non-GAAP operating expenses and net income measures. Although stock-based compensation is a key incentive offered to the Company's employees, the Company continues to evaluate its business performance excluding stock-based compensation expenses. The Company records stock-based compensation expenses related to grants of options, employee stock purchase plans, and performance and restricted stock. Depending upon the size, timing, and terms of the grants, this expense may vary significantly but will recur in future periods. The Company believes that excluding stock-based compensation better allows for comparisons to its peer companies;

Depreciation and amortization. The Company has excluded depreciation and amortization expense in calculating its non-GAAP operating expenses and net income measures. Depreciation and amortization are non-cash charges to current operations;

Executive and other non-recurring severance costs. We have excluded costs associated with the resignation of our former Executive Officers in calculating our non-GAAP operating expenses and net income measures. We exclude these and other non-recurring employee separation costs because we believe that these items do not reflect future operating expenses;

Customer Relationship Management. We have excluded CRM system costs related to direct and incremental costs incurred in connection with our multi-phase implementation of a new CRM solution and the related technology infrastructure costs. We exclude these costs because we believe that these items do not reflect future operating expenses and will be inconsistent in amounts and frequency making it difficult to contribute to a meaningful evaluation of our operating performance;

Enterprise Resource Planning. We have excluded ERP system costs related to direct and incremental costs incurred in connection with our multi-phase implementation of a new ERP solution and the related technology infrastructure costs. We exclude these costs because we believe that these items do not reflect future operating expenses and will be inconsistent in amounts and frequency making it difficult to contribute to a meaningful evaluation of our operating performance;

Non-recurring legal and litigation costs. We have excluded costs incurred related to third-party litigation and disputes, that are non-recurring; and

Loss on extinguishment of convertible notes. We have excluded the loss on extinguishment ofconvertible notes. We excluded this loss because we believe it is non-recurring.

The Company believes that excluding all of the items above allows users of its financial statements to better review and assess both current and historical results of operations.

Safe Harbor Statement

Certain statements in this press release, other than purely historical information, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements include but are not limited to, Cutera’s plans, objectives, strategies, financial performance and outlook, product launches and performance, trends, prospects, or future events and involve known and unknown risks that are difficult to predict. As a result, the Company’s actual financial results, performance, achievements, or prospects may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,”“could,”“seek,”“guidance,”“predict,”“potential,”“likely,”“believe,”“will,”“should,”“expect,”“anticipate,”“estimate,”“plan,”“intend,”“forecast,”“foresee” or variations of these terms and similar expressions or the negative of these terms or similar expressions. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause Cutera's actual results to differ materially from the statements contained herein. These statements are not guarantees of future performance, and stockholders should not place undue reliance on forward-looking statements. There are several risks, uncertainties, and other important factors, many of which are beyond the Company’s

control, that could cause its actual results to differ materially from the forward-looking statements contained in this press release, including those described in the “Risk Factors” section of Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, the Registration Statement on Form S-8 and other documents filed from time to time with the United States Securities and Exchange Commission by Cutera.

All information in this press release is as of the date of its release. Accordingly, undue reliance should not be placed on forward-looking statements. Cutera undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date they were made, or to reflect the occurrence of unanticipated events. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates concerning those or other forward-looking statements. Cutera's financial performance for the third quarter ended September 30, 2022, as discussed in this release, is preliminary and unaudited, and subject to adjustment.

Cutera, Inc.

Greg Barker

VP, Corporate FP&A

415-657-5500

IR@cutera.com

CUTERA, INC. 

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands) 

(unaudited) 

	September 30, 2022		December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	45,880	$	164,164
Marketable investments	204,946		—
Accounts receivable, net	35,876		31,449
Inventories, net	55,938		39,503
Other current assets and prepaid expenses	23,672		14,545
Total current assets	366,312		249,661
Property and equipment, net	34,479		3,019
Deferred tax assets	626		778
Goodwill	1,339		1,339
Operating lease right-of-use assets	13,033		14,627
Other long-term assets	11,668		10,169
Restricted cash	700		700
Total assets	$	428,157	$	280,293
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	34,176	$	7,891
Accrued liabilities	50,791		54,100
Operating leases liabilities	2,712		2,419
Deferred revenue	10,579		9,490
Total current liabilities	98,258		73,900
Deferred revenue, net of current portion	1,822		1,335
Operating lease liabilities, net of current portion	11,642		13,483
Convertible notes, net of unamortized debt issuance costs	300,256		134,243
Other long-term liabilities	685		763
Total liabilities	412,663		223,724
Stockholders’ equity:
Common stock	20		18
Additional paid-in capital	148,535		114,724
Accumulated other comprehensive loss	(336)		—
Accumulated deficit	(132,725)		(58,173)
Total stockholders' equity	15,494		56,569
Total liabilities and stockholders' equity	$	428,157	$	280,293

CUTERA, INC. 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited) 

	Three Months Ended						Nine Months Ended
	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Products	$	56,540		$	50,694		$	167,195		$	146,056
Service	6,268			6,690			17,851			19,585
Total net revenue	62,808			57,384			185,046			165,641
Products	25,255			20,259			74,066			59,483
Service	3,305			3,700			9,900			11,234
Total cost of revenue	28,560			23,959			83,966			70,717
Gross profit	34,248			33,425			101,080			94,924
Gross margin %	54.5		%	58.2		%	54.6		%	57.3		%
Operating expenses:
Sales and marketing	26,488			19,190			78,433			52,668
Research and development	6,389			5,802			19,747			14,764
General and administrative	10,804			7,807			35,554			23,633
Total operating expenses	43,681			32,799			133,734			91,065
(Loss) income from operations	(9,433)			626			(32,654)			3,859
Interest and other (expense) income, net
Amortization of debt issuance costs	(400)			(225)			(917)			(492)
Interest on convertible notes	(1,739)			(768)			(3,666)			(1,737)
Loss on extinguishment of convertible notes	—			—			(34,423)			—
Gain on extinguishment of PPP loan	—			—			—			7,185
Other expense, net	265			(561)			(2,018)			(1,976)
(Loss) income before income taxes	(11,307)			(928)			(73,678)			6,839
Income tax expense	827			462			874			842
Net (loss) income	$	(12,134)		$	(1,390)		$	(74,552)		$	5,997
Net (loss) income per share:
Basic	$	(0.62)		$	(0.08)		$	(3.95)		$	0.34
Diluted	$	(0.62)		$	(0.08)		$	(3.95)		$	0.33
Weighted-average number of shares used in per share calculations:
Basic	19,593			17,945			18,897			17,860
Diluted	19,593			17,945			18,897			18,327

CUTERA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 

(in thousands)

(unaudited)

			Three Months Ended				Nine Months Ended
			September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Cash flows from operating activities:
Net (loss) income			$	(12,134)	$	(1,390)	$	(74,552)	$	5,997
Adjustments to reconcile net (loss) income to net cash used in operating activities:
	Stock-based compensation		4,245		3,742		13,021		8,507
	Depreciation and amortization		674		307		1,603		1,014
	Amortization of contract acquisition costs		596		427		1,815		1,430
	Amortization of debt issuance costs		400		225		917		492
	Unrealized gain on foreign exchange forward		(292)		—		(292)		—
	Impairment of capitalized cloud computing costs		—		—		—		182
	Change in deferred tax assets		72		3		152		54
	Provision for excess and obsolete inventories		(448)		636		110		1,335
	Provision for credit losses		268		(391)		677		101
	Loss (gain) on sale of property and equipment		23		37		86		(45)
	PPP loan forgiveness		—		—		—		(7,185)
	Change in right-of-use asset		668		1,077		1,976		1,681
	Loss on extinguishment of convertible notes		—		—		34,423		—
Changes in assets and liabilities:
	Accounts receivable, net		(3,996)		(4,466)		(5,104)		(8,899)
	Inventories, net		(10,666)		(1,604)		(28,725)		(8,261)
	Other current assets and prepaid expenses		(5,801)		(4,494)		(8,835)		(4,571)
	Other long-term assets		(2,573)		(1,767)		(3,644)		(3,487)
	Accounts payable		5,671		1,049		20,442		575
	Accrued liabilities		3,194		2,129		(3,684)		11,782
	Operating lease liabilities		(658)		(1,043)		(1,930)		(1,573)
	Deferred revenue		874		(723)		1,576		(557)
		Net cash used in operating activities	(19,883)		(6,246)		(49,968)		(1,428)
Cash flows from investing activities:
Acquisition of property, equipment and software			(5,869)		(12)		(14,107)		(382)
Disposal of property and equipment			—		—		—		71
Purchase of marketable and long-term investments			47,000		—		47,000		—
Purchase of marketable investments			(48,973)		—		(252,282)		—
		Net cash used in investing activities	(7,842)		(12)		(219,389)		(311)
Cash flows from financing activities:
Proceeds from exercise of stock options and employee stock purchase plan			248		158		1,687		2,056
Taxes paid related to net share settlement of equity awards			(586)		(511)		(4,820)		(1,963)
Purchase of capped call			—		—		(31,671)		(16,134)
Payment of issuance costs of capped call			(353)		—		(353)		—
Proceeds from issuance of convertible notes			—		—		240,000		138,250
Payment of issuance costs of convertible notes			(646)		—		(7,602)		(4,717)
Extinguishment of convertible notes			—		—		(45,777)		—
Payments on finance lease obligations			(108)		(103)		(391)		(314)
		Net cash (used in) provided by financing activities	(1,445)		(456)		151,073		117,178
Net (decrease) increase in cash, cash equivalents and restricted cash			(29,170)		(6,714)		(118,284)		115,439
Cash, cash equivalents, and restricted cash at beginning of period			75,750		169,200		164,864		47,047
Cash, cash equivalents, and restricted cash at end of period			$	46,580	$	162,486	$	46,580	$	162,486

 CUTERA, INC. 

CONSOLIDATED FINANCIAL HIGHLIGHTS

(in thousands, except percentage data)

(unaudited)

	Three Months Ended						% Change		Nine Months Ended						% Change
	September 30, 2022			September 30, 2021			2022 Vs 2021		September 30, 2022			September 30, 2021			2022 Vs 2021
Revenue By Geography:
North America	$	33,258		$	26,710		+24.5	%	$	94,350		$	75,794		+24.5	%
Japan	15,263			19,335			-21.1	%	47,940			53,311			-10.1	%
Rest of World	14,287			11,339			+26.0	%	42,756			36,536			+17.0	%
Total Net Revenue	$	62,808		$	57,384		+9.5	%	$	185,046		$	165,641		+11.7	%
International as a percentage of total revenue	47.0		%	53.5		%			49.0		%	54.2		%
Revenue By Product Category:
Systems
–North America	$	25,359		$	20,680		+22.6	%	$	73,298		$	57,353		+27.8	%
–Rest of World (including Japan)	15,626			11,511			+35.7	%	47,854			38,726			+23.6	%
Total Systems	40,985			32,191			+27.3	%	121,152			96,079			+26.1	%
Consumables	6,119			3,684			+66.1	%	15,320			11,040			+38.8	%
Skincare	9,436			14,819			-36.3	%	30,723			38,937			-21.1	%
Total Products	56,540			50,694			+11.5	%	167,195			146,056			+14.5	%
Service	6,268			6,690			-6.3	%	17,851			19,585			-8.9	%
Total Net Revenue	$	62,808		$	57,384		+9.5	%	$	185,046		$	165,641		+11.7	%

	Three Months Ended				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Pre-tax Stock-Based Compensation Expense:
Cost of revenue	$	471	$	330	$	1,430	$	908
Sales and marketing	1,641		711		3,855		1,954
Research and development	466		1,020		2,513		1,628
General and administrative	1,667		1,681		5,223		4,017
	$	4,245	$	3,742	$	13,021	$	8,507

CUTERA, INC. 

RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

TO  NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited) 

	Three Months Ended September 30, 2022
	GAAP			Depreciation and Amortization		Stock-Based Compensation		ERP Implementation		Legal - Lutronic		Severance		Other Adjustments		Non-GAAP
Net revenue	$	62,808		—		—		—		—		—		—		$	62,808
Cost of revenue	28,560			(359)		(471)		—		—		(26)		290		27,994
Gross profit	34,248			359		471		—		—		26		(290)		34,814
Gross margin %	54.5		%													55.4		%
Operating expenses:
Sales and marketing	26,488			(715)		(1,641)		—		—		(262)		—		23,870
Research and development	6,389			(67)		(466)		—		—		(88)		—		5,768
General and administrative	10,804			(54)		(1,667)		(1,351)		(566)		(39)		—		7,127
Total operating expenses	43,681			(836)		(3,774)		(1,351)		(566)		(389)		—		36,765
(Loss) income from operations	(9,433)			1,195		4,245		1,351		566		415		(290)		(1,951)
Interest and other income (expense), net
Amortization of debt issuance costs	(400)			—		—		—		—		—		—		(400)
Interest on convertible notes	(1,739)			—		—		—		—		—		—		(1,739)
Other income	265			—		—		—		—		—		—		265
Total interest and other expense, net	(1,874)			—		—		—		—		—		—		(1,874)
(Loss) income before income taxes	(11,307)			1,195		4,245		1,351		566		415		(290)		(3,825)
Income taxes expense	827			—		—		—		—		—		—		827
Net (loss) income	$	(12,134)		$	1,195	$	4,245	$	1,351	$	566	$	415	$	(290)	$	(4,652)
Net loss per share:
Basic	$	(0.62)														$	(0.24)
Weighted-average number of shares used in per share calculations:
Basic	19,593															19,593
Operating expenses as a % of net revenue	GAAP															Non-GAAP
Sales and marketing	42.2		%													38.0		%
Research and development	10.2		%													9.2		%
General and administrative	17.2		%													11.3		%
	69.6		%													58.5		%

CUTERA, INC. 

RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

TO  NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited) 

	Three Months Ended September 30, 2021
	GAAP			Depreciation and Amortization		Stock-Based Compensation		CRM and ERP Implementation		Legal - Lutronic		Other Adjustments		Non-GAAP
Net revenue	$	57,384		—		—		—		—		—		$	57,384
Cost of revenue	23,959			(132)		(330)		—		—		445		23,942
Gross profit	33,425			132		330		—		—		(445)		33,442
Gross margin %	58.2		%											58.3		%
Operating expenses:
Sales and marketing	19,190			(549)		(711)		—		—		—		17,930
Research and development	5,802			(49)		(1,020)		—		—		—		4,733
General and administrative	7,807			(8)		(1,681)		(128)		(288)		—		5,702
Total operating expenses	32,799			(606)		(3,412)		(128)		(288)		—		28,365
(Loss) income from operations	626			738		3,742		128		288		(445)		5,077
Interest and other expense, net
Amortization of debt issuance costs	(225)			—		—		—		—		—		(225)
Interest on convertible notes	(768)			—		—		—		—		—		(768)
Other expense	(561)			—		—		—		—		—		(561)
Total interest and other expense, net	(1,554)			—		—		—				—		(1,554)
(Loss) income before income taxes	(928)			738		3,742		128		288		(445)		3,523
Income tax expense	462			—		—		—		—		—		462
Net (loss) income	$	(1,390)		$	738	$	3,742	$	128	$	288	$	(445)	$	3,061
Net (loss) income per share:
Basic	$	(0.08)												$	0.17
Weighted-average number of shares used in per share calculations:
Basic	17,945													17,945
Operating expenses as a % of net revenue	GAAP													Non-GAAP
Sales and marketing	33.4		%											31.2		%
Research and development	10.1		%											8.2		%
General and administrative	13.6		%											9.9		%
	57.1		%											49.3		%

CUTERA, INC. 

RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

TO  NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited) 

	Nine Months Ended September 30, 2022
	GAAP			Depreciation and Amortization		Stock-Based Compensation	ERP Implementation	Legal - Lutronic	Severance	Other Adjustments	Loss on Extinguishment of Convertible Notes	Non-GAAP
Net revenue	$	185,046		—		—	—	—	—	—	—	$	185,046
Cost of revenue	83,966			(596)		(1,430)	—	—	(26)	290	—	82,204
Gross profit	101,080			596		1,430	—	—	26	(290)	—	102,842
Gross margin %	54.6		%									55.6		%
Operating expenses:
Sales and marketing	78,433			(2,328)		(3,855)	—	—	(262)	—	—	71,988
Research and development	19,747			(180)		(2,513)	—	—	(88)	—	—	16,966
General and administrative	35,554			(238)		(5,223)	(7,712)	(1,062)	(39)	—	—	21,280
Total operating expenses	133,734			(2,746)		(11,591)	(7,712)	(1,062)	(389)	—	—	110,234
(Loss) income from operations	(32,654)			3,342		13,021	7,712	1,062	415	(290)	—	(7,392)
Interest and other (expense) income, net
Amortization of debt issuance costs	(917)			—		—	—	—	—	—	—	(917)
Interest on convertible notes	(3,666)			—		—	—	—	—	—	—	(3,666)
Loss on extinguishment of convertible notes	(34,423)			—	—	—	—	—	—	—	34,423	—
Other expense	(2,018)			—		—	—	—	—	—	—	(2,018)
Total interest and other expense, net	(41,024)			—		—	—	—	—	—	34,423	(6,601)
(Loss) income before income taxes	(73,678)			3,342		13,021	7,712	1,062	415	(290)	34,423	(13,993)
Income tax expense	874			—		—	—	—	—	—	—	874
Net (loss) income	$(74,552)			$3,342		$13,021	$7,712	$1,062	$415	$(290)	$34,423	$(14,867)
Net loss per share:
Basic	$(3.95)											$(0.79)
Weighted-average number of shares used in per share calculations:
Basic	18,897											18,897
Operating expenses as a % of net revenue	GAAP											Non-GAAP
Sales and marketing	42.4		%									38.9		%
Research and development	10.7		%									9.2		%
General and administrative	19.2		%									11.5		%
	72.3		%									59.6		%

CUTERA, INC. 

RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

TO  NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

	Nine Months Ended September 30, 2021
	GAAP			Depreciation and Amortization		Stock-Based Compensation		CRM and ERP Implementation		Severance (RIF)		Legal - Lutronic		Other Adjustments		Non-GAAP
Net revenue	$	165,641		—		—		—		—		—		—		$	165,641
Cost of revenue	70,717			(432)		(908)		—		—		—		791		70,168
Gross profit	94,924			432		908		—		—		—		(791)		95,473
Gross margin %	57.3		%													57.6		%
Operating expenses:
Sales and marketing	52,668			(1,827)		(1,954)		(182)		(638)		—		—		48,067
Research and development	14,764			(133)		(1,628)		—		—		—		—		13,003
General and administrative	23,633			(56)		(4,017)		(605)		—		(979)		—		17,976
Total operating expenses	91,065			(2,016)		(7,599)		(787)		(638)		(979)		—		79,046
(Loss) income from operations	3,859			2,448		8,507		787		638		979		(791)		16,427
Interest and other income (expense), net
Amortization of debt issuance costs	(492)			—		—		—		—		—		—		(492)
Interest on convertible notes	(1,737)			—		—		—		—		—		—		(1,737)
Gain on extinguishment of PPP loan	7,185			—		—		—		—		—		(7,185)		—
Other expense	(1,976)			—		—		—		—		—		—		(1,976)
Total interest and other income (expense), net	2,980			—		—		—		—		—		(7,185)		(4,205)
Income (loss) before income taxes	6,839			2,448		8,507		787		638		979		(7,976)		12,222
Income tax expense	842			—		—		—		—		—		—		842
Net income (loss)	$	5,997		$	2,448	$	8,507	$	787	$	638	$	979	$	(7,976)	$	11,380
Net income per share:
Basic	$	0.34														$	0.64
Weighted-average number of shares used in per share calculations:
	17,860															17,860
Operating expenses as a % of net revenue	GAAP															Non-GAAP
Sales and marketing	31.8		%													29.0		%
Research and development	8.9		%													7.9		%
General and administrative	14.3		%													10.9		%
	55.0		%													47.8		%

CUTERA, INC. 

RECONCILIATION OF LOSS TO ADJUSTED EBITDA

(in thousands)

(unaudited) 

	Three Months Ended		Nine Months Ended
	September 30, 2022
Net loss	$	(12,134)	$	(74,552)
Adjustments:
Depreciation and amortization	1,195		3,342
Stock-based compensation	4,245		13,021
ERP implementation cost	1,351		7,712
Legal - Lutronic	566		1,062
Severance	415		415
Other adjustments	(290)		(290)
Interest and other expense, net	1,874		41,024
Income tax expense	827		874
Total adjustments	10,183		67,160
Adjusted EBITDA	$(1,951)		$(7,392)