Business
AtriCure Reports Third Quarter 2024 Financial Results
Worldwide revenue of $115.9 million – an increase of 17.9% year over year U.S. revenue of $95.5 million – an increase of 16.8% year over year Achieved 20%
About this update from Atricure, Inc.
Worldwide revenue of $115.9 million – an increase of 17.9% year over year U.S. revenue of $95.5 million – an increase of 16.8% year over year Achieved 20% growth on revenues from open appendage management devices in the U.S. International revenue of $20.5 million – an increase of 23.3% year over year Positive cash flow generation of $16.3 million in third quarter 2024 MASON, Ohio --(BUSINESS WIRE)-- AtriCure, Inc. ( Nasdaq: ATRC ), a leading innovator in surgical treatments and therapies for atrial fibrillation (Afib), left atrial appendage (LAA) management and post-operative pain management, today announced third quarter 2024 financial results. “Our broad-based growth in the third quarter reflects strong, ongoing adoption trends throughout our business,” said Michael Carrel , President and Chief Executive Officer at AtriCure . “During the quarter, we launched several new products in the United States and Europe , leading to an acceleration in growth along with continued improvement in profitability and positive cash flow generation. Our results are a testament to our commitment to expand access to our innovative solutions for patients and providers worldwide.” Third Quarter 2024 Financial Results Revenue for the third quarter 2024 was $115.9 million , an increase of 17.9% over third quarter 2023 revenue (17.8% on a constant currency basis), reflecting continued adoption of our products by physicians globally for the treatment of patients with Afib, LAA management and post-operative pain management. On a sequential basis, worldwide revenue for the third quarter 2024 decreased approximately 0.3% from the second quarter 2024 due to normal seasonality of procedures in summer months. U.S. revenue was $95.5 million , an increase of $13.8 million or 16.8%, compared to the third quarter 2023. U.S. revenue growth was driven by sales across key product lines, including the ENCOMPASS® clamp in open ablation, AtriClip® Flex·V® device in appendage management and cryoSPHERE® probes for post-operative pain management. International revenue increased $3.9 million or 23.3% (22.4% on a constant currency basis) to $20.5 million , realizing significant growth across all franchises in Europe and most of our other major geographic regions. Gross profit for the third quarter 2024 was $86.8 million compared to $73.9 million for the third quarter 2023. Gross margin was 74.9% for the third quarter 2024, a decrease of 27 basis points from the third quarter 2023, reflecting less favorable geographic and product mix. Loss from operations for the third quarter 2024 was $7.4 million , compared to $8.1 million for the third quarter 2023. Basic and diluted net loss per share was $0.17 for the third quarter 2024, compared to $0.20 for the third quarter 2023. Adjusted EBITDA for the third quarter 2024 is $7.9 million , an increase of $3.2 million from third quarter of 2023. Adjusted loss per share for the third quarter 2024 was $0.17 , compared to $0.20 for the third quarter 2023. Constant currency revenue, adjusted EBITDA and adjusted loss per share are non-GAAP financial measures. We discuss these non-GAAP financial measures and provide reconciliations to GAAP measures later in this release. 2024 Financial Guidance AtriCure now expects full year 2024 revenue of approximately $459 million to $462 million , reflecting growth of approximately 15% to 16%. Management continues to expect full year 2024 Adjusted EBITDA of approximately $26 million to $29 million , with improvements annually thereafter. Projected full year 2024 adjusted EBITDA represents a 34% to 49% increase over full year 2023. Full year 2024 adjusted loss per share is expected to be in the range of $0.74 to $0.80 . Conference Call AtriCure will host a conference call at 4:30 p.m. Eastern Time on Tuesday, October 29, 2024 to discuss third quarter 2024 financial results. To access the webcast, please visit the Investors page of AtriCure’s corporate website at https://ir.atricure.com/events-and-presentations/events . Participants are encouraged to register more than 15 minutes before the webcast start time. A replay of the presentation will be available for 90 days following the presentation. About AtriCure AtriCure, Inc. provides innovative technologies for the treatment of Afib and related conditions. Afib affects more than 37 million people worldwide. Electrophysiologists, cardiothoracic and thoracic surgeons around the globe use AtriCure technologies for the treatment of Afib, reduction of Afib related complications, and post-operative pain management. AtriCure’s Isolator® Synergy™ Ablation System is the first medical device to receive FDA approval for the treatment of persistent Afib. AtriCure’s AtriClip® Left Atrial Appendage Exclusion System products are the most widely sold LAA management devices worldwide. AtriCure’s Hybrid AF™ Therapy is a minimally invasive procedure that provides a lasting solution for long-standing persistent Afib patients. AtriCure’s cryoICE cryoSPHERE® probes are cleared for temporary ablation of peripheral nerves to block pain, providing pain relief in cardiac and thoracic procedures. For more information, visit AtriCure.com or follow us on X (formerly known as Twitter) @AtriCure. Forward-Looking Statements This press release contains “forward-looking statements”– that is, statements related to future events that by their nature address matters that are uncertain. This press release also includes forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially. For details on the uncertainties that may cause our actual results to be materially different than those expressed in our forward-looking statements, visit http://www.atricure.com/forward-looking-statements as well as our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q which contain risk factors. Except where otherwise noted, the information contained in this release is as of October 29, 2024 . We assume no obligation to update any forward-looking statements contained in this release as a result of new information or future events or developments, except as may be required by law. Use of 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 in this release as supplemental financial metrics. Revenue reported on a constant currency basis is a non-GAAP measure, calculated by applying previous period foreign currency exchange rates to each of the comparable periods. Management analyzes revenue on a constant currency basis to better measure the comparability of results between periods. Because changes in foreign currency exchange rates have a non-operating impact on revenue, the Company believes that evaluating growth in revenue on a constant currency basis provides an additional and meaningful assessment of revenue to both management and investors. Adjusted EBITDA is calculated as net income (loss) before other income/expense (including interest), income tax expense, depreciation and amortization expense, share-based compensation expense, acquisition costs, legal settlement costs, impairment of intangible assets and change in fair value of contingent consideration liabilities. Management believes in order to properly understand short-term and long-term financial trends, investors may wish to consider the impact of these excluded items in addition to GAAP measures. The excluded items vary in frequency and/or impact on our continuing results of operations and management believes that the excluded items are typically not reflective of our ongoing core business operations and financial condition. Further, management uses adjusted EBITDA for both strategic and annual operating planning. A reconciliation of adjusted EBITDA reported in this release to the most comparable GAAP measure for the respective periods appears in the table captioned “Reconciliation of Non-GAAP Adjusted Income (Adjusted EBITDA)” later in this release. Adjusted loss per share is a non-GAAP measure which calculates the net loss per share before non-cash adjustments in fair value of contingent consideration liabilities, impairment of intangible assets, debt extinguishment and legal settlements. A reconciliation of adjusted loss per share reported in this release to the most comparable GAAP measure for the respective periods appears in the table captioned “Reconciliation of Non-GAAP Adjusted Loss Per Share” later in this release. The non-GAAP financial measures used by AtriCure may not be the same or calculated in the same manner as those used and calculated by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for AtriCure’s financial results prepared and reported in accordance with GAAP. We urge investors to review the reconciliation of these non-GAAP financial measures to the comparable GAAP financials measures included in this press release, and not to rely on any single financial measure to evaluate our business. ATRICURE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Amounts) (Unaudited) Three Months Ended September 30 , Nine Months Ended September 30 , 2024 2023 2024 2023 United States Revenue: Open ablation $ 30,601 $ 25,844 $ 90,661 $ 77,988 Minimally invasive ablation 11,117 10,893 35,263 31,900 Pain management 16,314 12,591 44,059 36,249 Total ablation 58,032 49,328 169,983 146,137 Appendage management 37,420 32,364 111,257 98,647 Total United States 95,452 81,692 281,240 244,784 International Revenue: Open ablation 8,607 8,007 25,679 23,015 Minimally invasive ablation 1,681 1,578 5,559 4,820 Pain management 1,590 547 3,768 1,214 Total ablation 11,878 10,132 35,006 29,049 Appendage management 8,580 6,466 24,784 18,869 Total International 20,458 16,598 59,790 47,918 Total revenue 115,910 98,290 341,030 292,702 Cost of revenue 29,117 24,421 86,125 72,147 Gross profit 86,793 73,869 254,905 220,555 Operating expenses: Research and development expenses 20,960 20,354 61,221 53,119 Selling, general and administrative expenses 73,238 61,604 219,174 185,451 Total operating expenses 94,198 81,958 280,395 238,570 Loss from operations (7,405 ) (8,089 ) (25,490 ) (18,015 ) Other expense, net (126 ) (919 ) (2,882 ) (2,416 ) Loss before income tax expense (7,531 ) (9,008 ) (28,372 ) (20,431 ) Income tax expense 322 47 758 218 Net loss $ (7,853 ) $ (9,055 ) $ (29,130 ) $ (20,649 ) Basic and diluted net loss per share $ (0.17 ) $ (0.20 ) $ (0.62 ) $ (0.45 ) Weighted average shares used in computing net loss per share: Basic and diluted 47,105 46,411 46,912 46,262 ATRICURE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands) (Unaudited) September 30 , 2024 December 31 , 2023 Assets Current assets: Cash, cash equivalents, and short-term investments $ 130,335 $ 137,285 Accounts receivable, net 54,909 52,501 Inventories 76,546 67,897 Prepaid and other current assets 7,496 8,563 Total current assets 269,286 266,246 Property and equipment, net 43,537 42,435 Operating lease right-of-use assets 6,100 4,324 Goodwill and intangible assets, net 293,133 298,767 Other noncurrent assets 3,012 2,160 Total Assets $ 615,068 $ 613,932 Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued liabilities $ 71,716 $ 72,036 Current lease liabilities 2,715 2,533 Total current liabilities 74,431 74,569 Long-term debt 61,865 60,593 Finance and operating lease liabilities 12,548 11,368 Other noncurrent liabilities 1,203 1,234 Total Liabilities 150,047 147,764 Stockholders' Equity: Common stock 49 48 Additional paid-in capital 851,306 824,170 Accumulated other comprehensive loss (147 ) (993 ) Accumulated deficit (386,187 ) (357,057 ) Total Stockholders' Equity 465,021 466,168 Total Liabilities and Stockholders' Equity $ 615,068 $ 613,932 ATRICURE, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS (In Thousands) (Unaudited) Reconciliation of Non-GAAP Adjusted Income (Adjusted EBITDA) Three Months Ended September 30 , Nine Months Ended September 30 , 2024 2023 2024 2023 Net loss, as reported $ (7,853 ) $ (9,055 ) $ (29,130 ) $ (20,649 ) Income tax expense 322 47 758 218 Other expense, net 126 919 2,882 2,416 Depreciation and amortization expense 4,928 4,111 13,907 10,634 Share-based compensation expense 10,364 8,661 30,020 26,416 Gain from legal settlements — — — (4,412 ) Non-GAAP adjusted income (adjusted EBITDA) $ 7,887 $ 4,683 $ 18,437 $ 14,623 Reconciliation of Non-GAAP Adjusted Loss Per Share Three Months Ended September 30 , Nine Months Ended September 30 , 2024 2023 2024 2023 Net loss, as reported $ (7,853 ) $ (9,055 ) $ (29,130 ) $ (20,649 ) Loss on debt extinguishment — — 1,362 — Gain from legal settlements — — — (4,412 ) Non-GAAP adjusted net loss $ (7,853 ) $ (9,055 ) $ (27,768 ) $ (25,061 ) Basic and diluted adjusted net loss per share $ (0.17 ) $ (0.20 ) $ (0.59 ) $ (0.54 ) Weighted average shares used in computing adjusted net loss per share Basic and diluted 47,105 46,411 46,912 46,262 View source version on businesswire.com : https://www.businesswire.com/news/home/20241029706905/en/ Angie Wirick AtriCure, Inc. Chief Financial Officer (513) 755-5334 [email protected] Marissa Bych Gilmartin Group Investor Relations (415) 937-5402 [email protected] Source: AtriCure, Inc.