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% 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

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 [phone] [e-mail]

Marissa Bych Gilmartin Group Investor Relations [phone] [e-mail]