Segment reporting

6 Months Ended

Jun. 30, 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.

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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(Dollars in thousands)				(Dollars in thousands)
Net revenue
Cutera Core	$	57,222	$	64,088	$	107,820	$	122,102
AviClear	3,996		136		8,391		136
Total net revenue	$	61,218	$	64,224	$	116,211	$	122,238
Loss from operations
Cutera Core	(4,342)		5,871		(12,872)		10,221
AviClear	(7,260)		(7,507)		(13,256)		(15,662)
Segment loss from operations	(11,602)		(1,636)		(26,128)		(5,441)
Items not allocated to segments
Stock-based compensation	(1,550)		(4,733)		(4,936)		(8,776)
ERP implementation costs	(770)		(2,385)		(1,288)		(6,361)
Depreciation and amortization	(3,991)		(1,068)		(7,578)		(2,147)
Board of Directors legal and advisory fees	(7,709)		—		(7,709)		—
Retention plan costs	(2,972)		—		(2,972)		—
Legal fees, severance, and other	(935)		(242)		(2,487)		(496)
Consolidated loss from operations	(29,529)		(10,064)		(53,098)		(23,221)
Interest and other expense, net	(1,789)		(37,398)		(2,964)		(39,150)
Consolidated loss before income taxes	$	(31,318)	$	(47,462)	$	(56,062)	$	(62,371)
					Six Months Ended June 30,
Capital spending					2023		2022
Cutera Core					$	64	$	603
AviClear					25,844		7,635
Total segment capital spending					$	25,908	$	8,238
Corporate					—		—
Total capital spending					$	25,908	$	8,238
Total assets					June 30, 2023		December 31, 2022
Cutera Core					$	164,906	$	154,978
AviClear					75,074		47,406
Total segment assets					$	239,980	$	202,384
Corporate					223,850		318,604
Total assets					$	463,830	$	520,988

The following table presents a summary of revenue by geography and product category for the three and six months ended June 30, 2023 and 2022 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenue mix by geography:
United States	$	24,995	$	26,742	$	47,964	$	51,216
Japan	12,810		15,174		25,718		32,677
Asia, excluding Japan	4,323		5,106		11,054		8,715
Europe	5,495		5,925		10,613		10,116
Rest of the World, other than United States, Asia and Europe	13,595		11,277		20,862		19,514
Total consolidated revenue	$	61,218	$	64,224	$	116,211	$	122,238
Revenue mix by product category:
Systems	$	37,895	$	43,653	$	71,213	$	80,167
AviClear	3,996		136		8,391		136
Consumables	4,255		5,162		7,998		9,065
Skincare	9,422		9,638		17,554		21,287
Total product revenue	55,568		58,589		105,156		110,655
Service	5,650		5,635		11,055		11,583
Total consolidated revenue	$	61,218	$	64,224	$	116,211	$	122,238