Slide 1: Creating a World Class Platform
Creating a World Class Platform INVESTOR PRESENTATION July 2023 © 2023 AtriCure, Inc. All rights reserved.
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation and oral statements made in connection with this presentation contain “forward-looking statements,” which are statements related to future events that by their nature address matters that are uncertain. Forward-looking statements address, among other thin
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement AtriCure’s condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, AtriCure provides certain non-GAAP financial measures as supplemental financial metrics in t
Slide 4: We are passionately focused on healing the lives of those affected by Afib and pain
Large Markets We are Addressing an underserved and growing patient population passionately focused on Strong Portfolio healing the lives Existing products and solutions driving consistent growth of those affected by Afib and pain Bright Future after surgery Novel therapies supported by growing body
Slide 5: Afib: A Serious Problem
Afib: A Serious Problem Atrial Fibrillation (Afib) is an irregular heartbeat (or arrhythmia) that affects more than 37 million people worldwide. 1 8 Million 2 8 Million 3.5 Million 1 in 4 Adults People estimated to have long-standing Over the age of 40 People estimated to have Afib in the US2 persis
Slide 6: Afib: A Serious Problem
Afib: A Serious Problem Afib 5x Higher Risk of Stroke5 is tied to higher risk of stroke, heart failure, 46% Greater Risk of Mortality6 dementia, and other health problems >5x Higher Risk of Heart Failure7 © 2023 AtriCure, Inc. All rights reserved. 6
Slide 7: AtriCure: Foundation for Success
AtriCure: Foundation for Success Durable Expansion Growth Clinical Innovation Science Developing addressable markets Strong history of Continuous Differentiated clinical and expanding revenue growth and improvement, trials with superior patient impact acceleration from increasing pipeline patient ou
Slide 8: Innovative and Expanding Product Portfolio
Innovative and Expanding Product Portfolio ISOLATOR® cryoICE® EPI-SENSE® cryoSPHERE® ISOLATOR SYNERGY Ablation SYNERGY™ CLAMP CRYOABLATION PROBE DEVICE CRYOABLATION PROBE ENCOMPASS® CLAMP Continuous innovation to less invasive, simpler to use, more efficient products LAA ATRICLIP® FLEX ATRICLIP PRO®
Slide 9: Differentiated and Growing Clinical Evidence
Differentiated and Growing Clinical Evidence Isolator® Synergy CONVERGE IDE CEASE-AF: Ablation System Trial: EPi-Sense® RCT showing approved by FDA for Guided Coagulation the benefits of treatment of persistent or System approved by hybrid ablation long-standing persistent FDA for treatment of with
Slide 10: Significant Global Market Opportunity
Significant Global Market Opportunity $5B+ Global Opportunity LOW PENETRATION IN EXISTING MARKETS EXPANSION OPPORTUNITIES IN FOCUS Innovative product Penetration of large development markets first Data supporting Expand product label expansions availability Enhanced Dedicated sales and reimbursement
Slide 11: Cardiac Surgery Opportunity (US)
Cardiac Surgery Opportunity (US) ~$900M AtriCure Difference Concomitant Open Procedures (Open Ablation/LAAM) Innovation • Isolator Synergy EnCompass® Clamp • AtriClip® platform and expansion of labeling (electrical isolation of LAA) ~$500M annually Science Cardiac Surgery • Isolator® Synergy Ablatio
Slide 12: LeAAPS Overview
LeAAPS Overview Le ft Atrial IDE Trial to evaluate the effectiveness of prophylactic LAA Appendage Exclusion for exclusion for the prevention of ischemic stroke or systemic arterial P rophylactic embolism in cardiac surgery patients without pre-operative AF S troke Reduction diagnosis CLINICAL TRIAL
Slide 13: Hybrid Opportunity (US)
Hybrid Opportunity (US) $2B+ and Growing AtriCure Difference Standalone Hybrid Procedures (MIS Ablation/LAAM) Innovation • Multiple approaches to treatment: Hybrid AF Therapy + AtriClip®, DEEP ~$500M annually • EPi-Sense ST Long-Standing Persistent Afib catheter ablations Science Hybrid Therapy comp
Slide 14: CONVERGE: Long-standing Persistent Afib Patient Analysis
CONVERGE: Long-standing Persistent Afib Patient Analysis Freedom from AF/AFL/AT from 3-month blanking period through 12-months and 18-months 100% • Superior outcomes with hybrid Convergent 90% 29% differential 35% differential procedure when compared to endocardial catheter ~78% improvement >100% im
Slide 15: HEAL-IST Overview
HEAL-IST Overview CLINICAL TRIAL IDE Trial to support safety and efficacy of hybrid sinus node sparing ablation procedure Highlights for the treatment of IST • Inappropriate Sinus Tachycardia (IST) is a chronic condition characterized by Using AtriCure ISOLATOR Synergy Ablation System elevated resti
Slide 16: Pain Management Opportunity (US)
Pain Management Opportunity (US) ~$1B AtriCure Difference Pain Management Procedures (Ablation) Innovation • cryoSPHERE® cryoablation probe • Expanded labeling for Cryo Nerve Block Therapy in adolescents (patients ~$350M annually as young as 12 years of age) Thoracic Procedures Science Estimated pen
Slide 17: Second Quarter 2023 Financial Highlights
Second Quarter 2023 Financial Highlights Worldwide Revenue* ($M) $100.9 Key Metrics* Q2 2022 Q2 2023 8% $93.5 GROSS MARGIN 75.1% 76.4% OPERATING EXPENSES $77.2M $81.2M 19% ADJUSTED EBITDA+ ($3.2M) $8.0M $84.5 ADJUSTED LOSS PER SHARE+ ($0.32) ($0.12) CASH & INVESTMENTS $183M $135M Q2 2022 Q1 2023 Q2
Slide 18: Financial Results and 2023 Outlook
Financial Results and 2023 Outlook $400 ($ Millions) History of Consistent Revenue Growth $350 5-Year organic revenue CAGR (pre-COVID19) ~15% Accelerating growth in 2021 and beyond $300 $250 Worldwide Revenue 2023 Guidance $200 • Worldwide revenue of $392 $150 to $395 million (approximately +19-20%
Slide 19: Commitment to Sustainability
Commitment to Sustainability Diversity & Inaugural Inclusion NACD Top Workplace Honors sustainability award ESG Cincinnati, Minneapolis, Amsterdam report published recognizing ATRC Board 2,500+ live 35th Anniversary >1,000 Employees attendees At our Women’s of Cox-Maze Cardiac Health Global headcoun
Slide 20: Thank You!
Thank You! © 2023 AtriCure, Inc. All rights reserved.
Slide 21: Supplemental Information
Supplemental Information References for any comments, statistics, or figures in this presentation are available upon request. © 2023 AtriCure, Inc. All rights reserved.
Slide 22: Key Investment Rationale
Key Investment Rationale Large Markets Strong Portfolio Bright Future Addressing an underserved and Existing products and solutions Novel therapies supported by growing patient population driving consistent growth growing body of clinical evidence • Approximately 37 million Atrial • Strong history o
Slide 23: US Concomitant Market Opportunity
US Concomitant Market Opportunity Estimated Afib Opportunity in Cardiac Surgery Annual Cardiac Surgeries14 300,000 Pre-Operative Afib Rate12 ~28% • US annual cardiac surgery volume Cardiac Opportunity – Pre-Op Afib 85,000 steady over the past 5 years with shifts in procedure types11 ASP Mix (Ablatio
Slide 24: US Standalone Market Opportunity
US Standalone Market Opportunity Estimated Standalone Afib Opportunity 2022 Projected 2025 Market opportunity Long-standing Persistent Afib Catheter Ablation17 32,000 45,000 in analysis at right considers: • Addition of ablation and LAAM to ASP Mix (Ablation + Appendage Management)15 $15,300 $15,300
Slide 25: CONVERGE Overview
CONVERGE Overview Highlights SUPERIORITY TRIAL designed to support FDA approval of the EPi-Sense device • Completed enrollment August 2018 • Data released at virtual Heart Rhythm Achieved statistical superiority for primary endpoints Society (HRS) conference May 2020 • PMA submission seeking approva
Slide 26: Hybrid AF Therapy: The Convergent Procedure
Hybrid AF Therapy: The Convergent Procedure © 2023 AtriCure, Inc. All rights reserved. 26
Slide 27: The Cox-Maze IV Procedure
The Cox-Maze IV Procedure © 2023 AtriCure, Inc. All rights reserved. 27
Slide 28: References and Abbreviations
References and Abbreviations Note Reference Key Abbreviations 1 European Heart Journal – Quality of Care and Clinical Outcomes (2021) 7, 574-582 doi: 10.1093/ehjqcco/qcaa061 Afib or AF Atrial Fibrillation 2 The American Journal of Cardiology (2013), 112: 1142-1147 AA Atrial Arrythmia Medical managem