Segment reporting

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Segment reporting is based on the “management approach,” following the method that management organizes the Company’s reportable segments for which separate financial information is made available to, and evaluated regularly by, the chief operating decision maker in allocating resources and in assessing performance. The Company’s chief operating decision maker ("CODM") is its Chief Executive Officer ("CEO"), who makes decisions on allocating resources and assessing performance.

Beginning in the fourth quarter of 2022, the Company segregates its operations into two reportable business segments: (i) Cutera Core and (ii) AviClear. This segregation aligns the Company’s operating business segments with the way the CEO reviews the Company's operations as a result of the commercial release of the Company’s AviClear acne treatment device in April 2022.

The Company measures the financial results of its reportable segments using an internal performance measure that excludes certain non-cash and non-recurring expenses.

	Three Months Ended March 31,
	2023		2022
	(Dollars in thousands)
Net revenue
Cutera Core	$	50,598	$	58,014
AviClear	4,395		—
Total net revenue	$	54,993	$	58,014
Income (loss) from operations
Cutera Core	$	(8,530)	$	4,350
AviClear	(5,996)		(8,155)
Segment loss from operations	(14,526)		(3,805)
Items not allocated to segments
Stock-based compensation	(3,386)		(4,043)
ERP implementation	(518)		(3,976)
Depreciation and amortization	(3,587)		(1,079)
Legal fees, severance, and other	(1,552)		(254)
Consolidated loss from operations	(23,569)		(13,157)
Interest and other expense, net	(1,175)		(1,752)
Consolidated loss before income taxes	$	(24,744)	$	(14,909)
Capital spending
Cutera Core	$	73	$	91
AviClear	11,080		230
Total segment capital spending	11,153		321
Corporate	—		—
Total capital spending	$	11,153	$	321
Total assets	March 31, 2023		December 31, 2022
Cutera Core	$	168,697	$	154,978
AviClear	62,173		47,406
Total segment assets	230,870		202,384
Corporate	268,928		318,604
Total assets	$	499,798	$	520,988

The following table presents a summary of revenue by geography and product category for the three months ended March 31, 2023 and 2022 (in thousands):

	Three Months Ended March 31,
	2023		2022
Revenue mix by geography:
North America	$	27,669	$	28,853
Japan	12,908		17,503
Rest of the World, other than United States, Asia and Europe	14,416		11,658
Total consolidated revenue	$	54,993	$	58,014
Revenue mix by product category:
Systems	$	33,317	$	36,514
AviClear	4,395		—
Consumables	3,744		3,903
Skincare	8,132		11,649
Total product revenue	49,588		52,066
Service	5,405		5,948
Total consolidated revenue	$	54,993	$	58,014