- 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 (513)
755-5334 awirick@atricure.com
Marissa Bych Gilmartin Group Investor Relations (415) 937-5402
marissa@gilmartinir.com
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