0001323885False00013238852024-02-152024-02-15

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) of the
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 15, 2024
AtriCure, Inc.
(Exact name of registrant as specified in charter)
Delaware
000-51470
34-1940305
(State or other jurisdiction of
incorporation)
(Commission File Number)
(IRS Employer Identification No.)
7555 Innovation Way, Mason OH 45040
(Address of Principal Executive Offices, and Zip Code)
(513) 755-4100
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act: 
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $.001 par valueATRCNASDAQ Global Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02.    Results of Operations and Financial Condition.
On February 15, 2024, AtriCure, Inc. issued a press release regarding its financial results for the fourth quarter and full-year ended December 31, 2023. The Company will hold a conference call on February 15, 2024 at 4:30 p.m. Eastern Time to discuss the financial results. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
The information in Item 2.02 of Form 8-K and in the press release attached as Exhibit 99.1 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in Item 2.02 of this Form 8-K and Exhibit 99.1 shall not be incorporated by reference in any filing or other document under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing or document.
Item 9.01.    Financial Statements and Exhibits.
(d)Exhibits
No.Description
99.1
104Cover Page Interactive Data File--the cover page XBRL tags are embedded within the Inline XBRL document.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ATRICURE, INC.
Dated:February 15, 2024By:/s/ Angela L. Wirick
Angela L. Wirick
Chief Financial Officer


image_0.jpg
Exhibit 99.1
For immediate release
February 15, 2024

AtriCure Reports Fourth Quarter 2023 and Full Year 2023 Financial Results
•Fourth Quarter 2023 Worldwide revenue of $106.5 million – an increase of 21.0% year over year
•Full Year 2023 Worldwide revenue of $399.2 million – an increase of 20.8% year over year
•Full Year 2023 U.S. revenue of $333.5 million – an increase of 20.3% year over year
•Full Year 2023 International revenue of $65.7 million – an increase of 23.5% year over year
•Full Year 2023 Net loss of $30.4 million – an improvement of $16.0 million year over year
•Full Year 2023 Positive adjusted EBITDA of $19.4 million – an improvement of $21.6 million year over year
•Over one million patients treated life to date
MASON, Ohio, February 15, 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 fourth quarter 2023 and full year 2023 financial results.
“Our 2023 results showcase the broad-based expansion of our many growth drivers, balanced by disciplined investments as we make progress towards sustained profitability,” said Michael Carrel, President and Chief Executive Officer at AtriCure. “We begin 2024 with strong momentum throughout our business and an unwavering focus on advancing innovation, clinical science and therapy awareness as we establish new standards of care for patients globally.”
Fourth Quarter 2023 Financial Results
Revenue for the fourth quarter 2023 was $106.5 million, an increase of 21.0% (an increase of 20.5% on a constant currency basis) over fourth quarter 2022 revenue. U.S. revenue was $88.8 million, an increase of $14.9 million or 20.1%, compared to fourth quarter 2022 revenue. U.S. revenue reflected strong growth across franchises, driven by sales of our EPi-Sense® Systems for Hybrid AF™ Therapy procedures, AtriClip® Flex⋅V® devices, ENCOMPASS® clamp and cryoSPHERE® probe. International revenue increased $3.6 million or 25.8% (an increase of 22.1% on a constant currency basis) to $17.8 million, reflecting growth across all franchises and major geographic regions. On a sequential basis, worldwide revenue for the fourth quarter 2023 increased approximately 8.4% over third quarter 2023.
Gross profit for the fourth quarter 2023 was $79.8 million compared to $65.1 million for the fourth quarter 2022. Gross margin was 74.9% and 74.0% for the fourth quarters 2023 and 2022, showing improvement of 94 basis points. Loss from operations for the fourth quarter 2023 was $8.7 million, compared to $4.1 million for the fourth quarter 2022, driven by investments in clinical trials and product development initiatives outpacing revenue growth. Basic and diluted net loss per share was $0.21 for the fourth quarter 2023, compared to $0.09 for the fourth quarter 2022.
Adjusted EBITDA was positive for the fourth quarter 2023 at $4.8 million, compared to positive $6.0 million for fourth quarter of 2022. Adjusted loss per share for the fourth quarter 2023 was $0.21 compared to $0.09 for the fourth quarter 2022.
Constant currency revenue, adjusted EBITDA and adjusted loss per share are non-GAAP measures. We discuss these non-GAAP measures and provide reconciliations to GAAP measures later in this release.
2023 Financial Results
Revenue for 2023 was $399.2 million, an increase of $68.9 million or 20.8% (an increase of 20.6% on a constant currency basis), compared to 2022 revenue. Revenue growth resulted from deepening market penetration globally and expanding physician adoption of our products across franchises. U.S. revenue increased 20.3% to $333.5 million. International revenue was $65.7 million, an increase of $12.5 million or 23.5% (an increase of 22.1% on a constant currency basis). Gross profit for 2023 was $300.4 million compared to $245.9 million for 2022, and gross margin increased to 75.2% for 2023 compared to 74.4% for 2022.


Loss from operations for 2023 was $26.7 million, compared to $42.7 million for 2022, reflecting strong revenue growth, cost efficiencies and improving operating leverage while expanding research and development investments. Basic and diluted net loss per share was $0.66 for 2023, compared to $1.02 for 2022.
Adjusted EBITDA was positive $19.4 million for 2023, compared to negative $2.2 million for 2022. The adjusted loss per share for 2023 was $0.75 compared to an adjusted loss per share of $1.02 for 2022.
2024 Financial Guidance
Full year 2024 revenue is projected to be approximately $459 million to $466 million, reflecting growth of approximately 15% to 17% over full year 2023. Full year 2024 adjusted EBITDA is expected to be approximately $26 million to $29 million, with improvements annually thereafter. Full year 2024 adjusted EBITDA represents an approximately 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 $0.82.
Conference Call
AtriCure will host a conference call at 4:30 p.m. Eastern Time on Thursday, February 15, 2024, to discuss its fourth quarter 2023 and full year 2023 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 and cardiothoracic surgeons around the globe use AtriCure technologies for the treatment of Afib and reduction of Afib related complications. 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 February 15, 2024. We assume no obligation to update any forward-looking statements contained in this release and the related attachment 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 asset 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 (Loss) (Adjusted EBITDA)” later in this release.
Adjusted loss per share is a non-GAAP measure which calculates the net (loss) income per share before non-cash adjustments in fair value of contingent consideration liabilities, impairment of intangible asset and legal settlement costs. A reconciliation of adjusted (loss) income 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.
CONTACTS:
Angie Wirick
AtriCure, Inc.
Chief Financial Officer
(513) 755-5334
awirick@atricure.com
Marissa Bych
Gilmartin Group
Investor Relations
(415) 937-5402
marissa@gilmartinir.com


ATRICURE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended
December 31,		Twelve Months Ended
December 31,
2023202220232022
United States Revenue:
Open ablation$27,299 $23,506 $105,287 $86,119 
Minimally invasive ablation12,677 9,707 44,577 38,553 
Pain management12,950 11,240 49,199 39,974 
Total ablation52,926 44,453 199,063 164,646 
Appendage management35,834 29,435 134,481 112,555 
Total United States88,760 73,888 333,544 277,201 
International Revenue:
Open ablation8,468 7,424 31,483 26,809 
Minimally invasive ablation1,850 1,737 6,670 5,986 
Pain management799 183 2,013 558 
Total ablation11,117 9,344 40,166 33,353 
Appendage management6,666 4,796 25,535 19,825 
Total International17,783 14,140 65,701 53,178 
Total revenue106,543 88,028 399,245 330,379 
Cost of revenue26,728 22,915 98,875 84,439 
Gross profit79,815 65,113 300,370 245,940 
Operating expenses:
Research and development expenses20,796 13,748 73,915 57,337 
Selling, general and administrative expenses67,687 55,501 253,138 231,272 
Total operating expenses88,483 69,249 327,053 288,609 
Loss from operations(8,668)(4,136)(26,683)(42,669)
Other (expense) income, net(748)87 (3,164)(3,529)
Loss before income tax expense(9,416)(4,049)(29,847)(46,198)
Income tax expense373 121 591 268 
Net loss$(9,789)$(4,170)$(30,438)$(46,466)
Basic and diluted net loss per share$(0.21)$(0.09)$(0.66)$(1.02)
Weighted average shares used in computing net loss per share:
Basic and diluted46,447 45,912 46,309 45,740 


ATRICURE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
December 31,
2023		December 31,
2022
Assets
Current assets:
Cash, cash equivalents, and short-term investments$137,285 $121,113 
Accounts receivable, net52,501 42,693 
Inventories67,897 45,931 
Prepaid and other current assets8,563 5,477 
Total current assets266,246 215,214 
Long-term investments— 51,509 
Property and equipment, net42,435 38,833 
Operating lease right-of-use assets4,324 3,787 
Goodwill and intangible assets, net298,767 274,120 
Other noncurrent assets2,160 1,985 
Total assets$613,932 $585,448 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities$72,036 $52,920 
Other current liabilities and current maturities of debt and leases2,533 5,472 
Total current liabilities74,569 58,392 
Long-term debt60,593 56,834 
Finance and operating lease liabilities11,368 12,242 
Other noncurrent liabilities1,234 1,226 
Total liabilities147,764 128,694 
Stockholders' equity:
Common stock48 47 
Additional paid-in capital824,170 787,422 
Accumulated other comprehensive loss(993)(4,096)
Accumulated deficit(357,057)(326,619)
Total stockholders' equity466,168 456,754 
Total liabilities and stockholders' equity$613,932 $585,448 


ATRICURE, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS
(In Thousands)
(Unaudited)
Reconciliation of Non-GAAP Adjusted Income (Loss) (Adjusted EBITDA)

Three Months Ended
December 31,		Twelve Months Ended
December 31,
2023202220232022
Net loss, as reported$(9,789)$(4,170)$(30,438)$(46,466)
Income tax expense373 121 591 268 
Other income (expense), net748 (87)3,164 3,529 
Depreciation and amortization expense4,179 2,919 14,813 11,710 
Share-based compensation expense9,312 7,197 35,728 28,771 
Net gain from legal settlements— — (4,412)— 
Non-GAAP adjusted income (loss) (adjusted EBITDA)$4,823 $5,980 $19,446 $(2,188)
Reconciliation of Non-GAAP Adjusted Loss Per Share

Three Months Ended
December 31,		Twelve Months Ended
December 31,
2023202220232022
Net loss, as reported$(9,789)$(4,170)$(30,438)$(46,466)
Net gain from legal settlements— — (4,412)— 
Non-GAAP adjusted net loss$(9,789)$(4,170)$(34,850)$(46,466)
Basic and diluted adjusted net loss per share$(0.21)$(0.09)$(0.75)$(1.02)
Weighted average shares used in computing adjusted net loss per share
Basic and diluted46,447 45,912 46,309 45,740 

v3.24.0.1
Cover
Feb. 15, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 15, 2024
Entity Registrant Name AtriCure, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 000-51470
Entity Tax Identification Number 34-1940305
Entity Address, Address Line One 7555 Innovation Way
Entity Address, City or Town Mason
Entity Address, State or Province OH
Entity Address, Postal Zip Code 45040
City Area Code 513
Local Phone Number 755-4100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $.001 par value
Trading Symbol ATRC
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Central Index Key 0001323885
Amendment Flag false
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