AtriCure(ATRC)

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Do You Believe in the Upside Potential of Atricure (ATRC)?
Yahoo Finance· 2025-09-09 16:08
Core Insights - Riverwater Partners' Small Cap Strategy underperformed the Russell 2000 in Q2 2025 due to a focus on defensive holdings and market preference for low-quality companies [1] - AtriCure, Inc. (NASDAQ:ATRC) is highlighted as a key stock, with a one-month return of 0.45% and a 52-week gain of 33.98% [2] - AtriCure, Inc. specializes in surgical devices for cardiac tissue ablation and pain management, addressing a significant healthcare issue with over 37 million people affected by atrial fibrillation globally [3] Company Overview - AtriCure, Inc. is a leading innovator in treatments for atrial fibrillation (Afib) and left atrial appendage (LAA) management [3] - The company operates in the cardiac and minimally-invasive ablation markets, providing products used in both open-heart and minimally invasive surgical procedures [3] - As of September 08, 2025, AtriCure, Inc. had a market capitalization of $1.789 billion, with shares closing at $36.00 [2]
AtriCure(ATRC) - 2025 FY - Earnings Call Transcript
2025-09-03 20:45
Financial Data and Key Metrics Changes - The company experienced growth acceleration from 13.6% in Q1 to 17.1% in Q2, driven by strong product launches and increased adoption of new products [3][4] - Gross margin faced headwinds due to international business growth outpacing U.S. growth, but new product launches in the U.S. are expected to benefit gross margin in the long term [5][6] Business Line Data and Key Metrics Changes - Pain management and open appendage management saw significant growth due to new products like Cryosphere Max and AtriClip Flex Mini, contributing to improved pricing and volume [3][4] - The Encompass clamp has shown continued adoption, with growth shifting from low double digits to mid to upper teens, indicating strong market penetration [4][7] Market Data and Key Metrics Changes - The company is currently underpenetrated in the AFib patient market, with only 40% penetration, suggesting substantial growth potential as education and adoption increase [8][9] - The total addressable market (TAM) for cardiac surgery is expected to triple due to ongoing clinical trials, expanding the opportunity significantly [14][15] Company Strategy and Development Direction - The company aims for $1 billion in revenue and over 20% EBITDA margin by 2030, focusing on innovation and clinical trials to drive growth [12][13] - The strategy includes expanding into new markets such as extremities for pain management and enhancing existing products to improve surgeon usability [20][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth driven by new product launches and market expansion, despite current pressures from competition [6][25] - The company anticipates a rebound in its hybrid business as non-responders to existing treatments will seek alternative solutions, indicating a long-term growth opportunity [26][30] Other Important Information - The LEAPS trial, the largest cardiac surgery trial, aims to assess the efficacy of AtriClip in non-AFib patients, potentially tripling the addressable market for stroke reduction [57][60] - The company is also developing a PSA program to enhance surgical procedures, with key milestones expected in the near future [69][70] Q&A Session Summary Question: What are the drivers of growth for the company? - Management highlighted new product launches and market expansion as key growth drivers, with a focus on innovation and clinical trials [3][12] Question: How does the company view competition in the market? - The company welcomes competition as it validates the market's potential and drives awareness, while maintaining a strong focus on innovation and clinical evidence [41][48] Question: What is the outlook for the hybrid business? - Management is optimistic about the hybrid business's rebound, citing a significant patient population that may seek alternative solutions after unsuccessful treatments [26][30]
AtriCure (ATRC) FY Conference Transcript
2025-08-12 19:30
AtriCure (ATRC) FY Conference Summary Company Overview - AtriCure focuses on addressing atrial fibrillation (AFib) and post-surgical pain management, aiming to eradicate AFib and reduce pain through innovative products like cryo technology [2][3] - The company has a rich portfolio of existing products and emphasizes internal innovation rather than acquisitions [3] Market Potential - AtriCure operates in multi-billion dollar markets, specifically targeting complex AFib and post-surgical pain management [3][4] - AFib affects approximately 60 million people globally and is a rapidly growing area within medical technology [6] - The pain management market is valued at $10 billion, with significant opportunities for growth [10] Product and Innovation Strategy - AtriCure's cardiac surgery business targets patients undergoing surgery with AFib, with only 35-40% currently treated, indicating a large unmet need [11] - The company invests 18-20% of its revenue in R&D to create a competitive advantage and establish new standards of care [13][14] - New product launches, such as the AtriClip Flex Mini and Cryosphere Max probes, have driven growth and are expected to continue doing so for several years [14] Financial Performance - AtriCure reported a 17% revenue growth year-over-year, with strong performance from new product launches [18][29] - The company generated $18 million in cash flow in Q2 and is expected to be cash flow positive through 2025 [19][41] - AtriCure anticipates achieving over 20% profitability by the end of the decade, with a growth rate of nearly 14% [19] Reimbursement and Guidelines - Recent changes in reimbursement guidelines have positively impacted AtriCure's business, with significant increases in reimbursements for procedures involving their products [16][17] - The company has seen a shift in guidelines from lower to higher levels, supporting the adoption of their therapies [15] Challenges and Outlook - The hybrid business segment is experiencing pressure, with expectations for stabilization beyond 2025 [29][32] - Despite challenges in certain areas, AtriCure's overall business remains strong, with potential for further growth as markets are underpenetrated [19] Clinical Trials and Future Prospects - The LEAPS trial, the largest cardiac surgery trial ever conducted, is expected to provide valuable data on the efficacy of AtriClip in reducing stroke rates [60][61] - The company is optimistic about the long-term growth potential of its products and markets, particularly in appendage management and pain management [68][73] Conclusion - AtriCure is positioned as a leader in its market segments, with a strong focus on innovation, significant growth potential, and a commitment to improving patient outcomes through advanced medical technologies [18][19]
AtriCure (ATRC) Q2 Revenue Jumps 17%
The Motley Fool· 2025-07-30 19:19
Core Insights - AtriCure reported Q2 2025 earnings that exceeded Wall Street expectations, with revenue of $136.1 million and a non-GAAP loss per share of $(0.02), showing significant improvement from the previous year [1][2] - The company experienced strong growth in open ablation, appendage management, and pain management product lines, although the minimally invasive ablation segment in the U.S. faced a decline [1][5][8] - Management raised its financial outlook for the year, anticipating GAAP revenue of $527–$533 million and adjusted EBITDA of $49–$52 million [12] Financial Performance - Q2 2025 non-GAAP EPS improved to $(0.02) from $(0.17) a year ago, marking an 88.2% improvement [2] - GAAP revenue increased by 17.1% year-over-year, from $116.3 million in Q2 2024 to $136.1 million in Q2 2025 [2] - Adjusted EBITDA rose to $15.4 million, a 97.4% increase from $7.8 million in Q2 2024 [2] - Gross profit was $101.5 million, up 16.9% from $86.8 million a year earlier, with a gross margin of 74.5% [2][9] Business Overview - AtriCure specializes in medical devices for treating atrial fibrillation, left atrial appendage management, and post-operative pain management [3] - The product portfolio includes cardiac ablation systems, devices for closing the left atrial appendage, and cryoablation probes [3] Recent Developments - The company focused on launching innovative devices to address the growing prevalence of atrial fibrillation and emphasized clinical validation through major trials like the LeAAPS study [4] - Open ablation devices saw double-digit growth, with U.S. sales up 13.7% and international sales up 20.8% [5] - The AtriClip FLEX·Mini device for appendage management experienced a revenue increase of 23.3% internationally, with U.S. growth at 15.7% [6] - Pain management solutions, particularly the cryoSPHERE MAX probe, reported a 41.1% increase in U.S. sales [7] Clinical and Strategic Focus - The LeAAPS clinical trial reached full enrollment, which is expected to support differentiated claims for AtriClip and potentially reduce stroke risk for patients [11] - Management identified the trial as a unique opportunity to build competitive barriers, as no other company's device is part of the study [11] Outlook - The company anticipates modestly positive cash flow for the year and improved adjusted loss per share guidance to $(0.34)–$(0.39) [12] - Key themes to monitor include the adoption pace of new products, margin trends, and progress on clinical trials [13]
AtriCure(ATRC) - 2025 Q2 - Quarterly Report
2025-07-30 16:34
[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents AtriCure, Inc.'s unaudited interim financial statements for the periods ended June 30, 2025, covering balance sheets, statements of operations, and cash flows, reflecting its single operating segment - The company operates as one operating segment: the development, manufacture, and sale of devices for surgical procedures, primarily for cardiac tissue ablation, LAA exclusion, and peripheral nerve ablation[22](index=22&type=chunk) Condensed Consolidated Balance Sheet Data (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $117,796 | $122,721 | | Total current assets | $271,257 | $267,826 | | Total Assets | $608,849 | $609,328 | | **Liabilities & Equity** | | | | Total current liabilities | $68,843 | $73,424 | | Long-term debt | $61,865 | $61,865 | | Total Liabilities | $144,358 | $148,359 | | Total Stockholders' Equity | $464,491 | $460,969 | Condensed Consolidated Statements of Operations Data (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $136,139 | $116,269 | $259,759 | $225,120 | | Gross Profit | $101,482 | $86,844 | $194,110 | $168,112 | | Loss from operations | $(6,192) | $(7,168) | $(12,146) | $(18,085) | | Net loss | $(6,190) | $(8,008) | $(12,937) | $(21,277) | | Basic and diluted net loss per share | $(0.13) | $(0.17) | $(0.27) | $(0.45) | Condensed Consolidated Statements of Cash Flows Data (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $10,591 | $(13,636) | | Net cash (used in) provided by investing activities | $(9,343) | $40,535 | | Net cash used in financing activities | $(6,906) | $(5,008) | | Net (decrease) increase in cash and cash equivalents | $(4,925) | $21,725 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, including a **15.4%** revenue increase for H1 2025, reduced net loss, improved operating cash flow, and strategic initiatives in product innovation and clinical trials - Worldwide revenue for the six months ended June 30, 2025, increased by **15.4%** (**15.3%** on a constant currency basis) to **$259.8 million**, driven by strong adoption of appendage management and pain management product lines[63](index=63&type=chunk) - The company is advancing key clinical trials, including completing enrollment for the LeAAPS trial (6,500 patients) and receiving FDA approval for the BoxX-NoAF trial protocol[66](index=66&type=chunk)[67](index=67&type=chunk) - Recent product innovations include FDA 510(k) clearance for the AtriClip PRO-Mini LAA Exclusion System and the cryoICE cryoXT probe for pain management, both expected to launch in the second half of 2025[69](index=69&type=chunk) - As of June 30, 2025, the company had **$117.8 million** in cash and cash equivalents, **$61.9 million** in outstanding debt, and **$61.9 million** in unused borrowing capacity under its ABL facility[80](index=80&type=chunk) [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Revenue for Q2 2025 increased **17.1%** to **$136.1 million**, driven by pain and appendage management, while R&D and SG&A expenses rose due to IPR&D and personnel costs Revenue by Product - Three Months Ended June 30 (in thousands) | Product Line | 2025 | 2024 | Change % | | :--- | :--- | :--- | :--- | | Open ablation | $36,468 | $30,760 | 18.6% | | Minimally invasive ablation | $7,839 | $11,828 | (33.7)% | | Pain management | $21,168 | $15,006 | 41.1% | | Appendage management | $45,108 | $37,945 | 18.9% | | **Total United States** | **$110,583** | **$95,539** | **15.7%** | | **Total International** | **$25,556** | **$20,730** | **23.3%** | | **Total Revenue** | **$136,139** | **$116,269** | **17.1%** | Revenue by Product - Six Months Ended June 30 (in thousands) | Product Line | 2025 | 2024 | Change % | | :--- | :--- | :--- | :--- | | Open ablation | $69,776 | $60,060 | 16.2% | | Minimally invasive ablation | $16,319 | $24,146 | (32.4)% | | Pain management | $38,438 | $27,745 | 38.5% | | Appendage management | $87,199 | $73,837 | 18.1% | | **Total United States** | **$211,732** | **$185,788** | **14.0%** | | **Total International** | **$48,027** | **$39,332** | **22.1%** | | **Total Revenue** | **$259,759** | **$225,120** | **15.4%** | - Q2 2025 R&D expenses increased **43.4%** to **$29.3 million**, primarily due to a **$5.0 million** acquired in-process R&D (IPR&D) expense and a **$2.2 million** increase in clinical trial expenses for the LeAAPS trial[73](index=73&type=chunk) - Q2 2025 SG&A expenses increased **6.5%** to **$78.4 million**, driven by a **$6.1 million** increase in personnel costs from headcount growth, partially offset by lower marketing and travel costs[74](index=74&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company held **$117.8 million** in cash, with **$10.6 million** positive operating cash flow for H1 2025, and **$61.9 million** available under its **$125 million** ABL facility - Net cash provided by operating activities improved by **$24.2 million** year-over-year, from a **$13.6 million** use in 2024 to a **$10.6 million** provision in 2025, reflecting improved operating results and lower working capital usage[16](index=16&type=chunk)[83](index=83&type=chunk) - Net cash used in investing activities was **$9.3 million** in H1 2025, compared to **$40.5 million** provided by investing activities in H1 2024. The change is due to a **$45.7 million** decrease in proceeds from sales of securities and a **$5.0 million** payment for acquired IPR&D in 2025[16](index=16&type=chunk)[84](index=84&type=chunk) - The company has an asset-based revolving credit facility (ABL Facility) of up to **$125 million**, with an option to increase by **$40 million**. As of June 30, 2025, **$61.9 million** was borrowed, and **$61.9 million** was available[86](index=86&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=22&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the company's quantitative and qualitative disclosures about market risk compared to its 2024 Annual Report on Form 10-K - As of June 30, 2025, there were no material changes to the company's quantitative and qualitative disclosures about market risk from those reported in the Form 10-K for the year ended December 31, 2024[91](index=91&type=chunk) [Controls and Procedures](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[92](index=92&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[94](index=94&type=chunk) [PART II. OTHER INFORMATION](index=23&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=23&type=section&id=Item%201.%20Legal%20Proceedings) The company faces a **$260 million** breach of contract lawsuit from former SentreHEART securityholders regarding alleged failure to obtain FDA approval for the LARIAT System, with no liability recognized as loss is not probable - On February 7, 2025, former securityholders of SentreHEART, Inc. filed a complaint against the company alleging breach of contract related to the merger agreement dated August 11, 2019[43](index=43&type=chunk) - The complaint seeks damages up to **$260 million** plus interest for alleged failure to use commercially reasonable efforts to achieve PMA and CPT reimbursement milestones[43](index=43&type=chunk) - The company has not recognized a liability for this matter because any potential loss is not currently considered probable or reasonably estimable[43](index=43&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred in the company's risk factors from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[96](index=96&type=chunk) [Other Information](index=23&type=section&id=Item%205.%20Other%20Information) No executive officers or directors adopted, terminated, or modified Rule 10b5-1(c) trading arrangements during the second quarter of 2025 - No executive officers or directors adopted, terminated, or modified a Rule 10b5-1(c) trading arrangement during the three months ended June 30, 2025[97](index=97&type=chunk) [Exhibits](index=24&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the amended 2023 Stock Incentive Plan, CEO/CFO certifications, and XBRL data files
AtriCure (ATRC) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
ZACKS· 2025-07-29 22:31
Core Insights - AtriCure reported revenue of $136.14 million for the quarter ended June 2025, reflecting a year-over-year increase of 17.1% and surpassing the Zacks Consensus Estimate of $130.15 million by 4.61% [1] - The company achieved an EPS of -$0.02, a significant improvement from -$0.17 in the same quarter last year, resulting in an EPS surprise of 86.67% against the consensus estimate of -$0.15 [1] Revenue Performance - U.S. Revenue in Pain Management reached $21.17 million, exceeding the average estimate of $18.36 million, marking a year-over-year increase of 41.1% [4] - International Revenue in Pain Management was $2.03 million, slightly below the average estimate of $2.24 million, but still showing a year-over-year growth of 63.8% [4] - U.S. Revenue for Total Ablation was $44.31 million, falling short of the average estimate of $62.64 million, representing a decline of 23.1% year-over-year [4] - International Revenue for Total Ablation was $12.72 million, compared to the average estimate of $14.37 million, with a year-over-year increase of 4.5% [4] - Total U.S. Revenue amounted to $110.58 million, surpassing the average estimate of $105.65 million, reflecting a year-over-year growth of 15.8% [4] - International Revenue for Appendage Management was $10.8 million, exceeding the average estimate of $10.33 million, with a year-over-year increase of 26.3% [4] - U.S. Revenue for Open Ablation was $36.47 million, slightly above the average estimate of $35.47 million, showing an 18.6% increase year-over-year [4] - International Revenue for Open Ablation reached $10.35 million, exceeding the average estimate of $10.15 million, with a year-over-year growth of 12.9% [4] - U.S. Revenue for Minimally Invasive Ablation was $7.84 million, below the average estimate of $8.81 million, reflecting a decline of 33.7% year-over-year [4] - International Revenue for Minimally Invasive Ablation was $2.37 million, surpassing the average estimate of $1.98 million, with a year-over-year increase of 34.5% [4] - U.S. Revenue for Appendage Management was $45.11 million, exceeding the average estimate of $43.01 million, representing an 18.9% year-over-year increase [4] - Total International Revenue was $25.56 million, surpassing the average estimate of $24.69 million, with a year-over-year growth of 23.3% [4] Stock Performance - AtriCure's shares have returned +1.4% over the past month, compared to the Zacks S&P 500 composite's +3.6% change, indicating a performance in line with the broader market [3]
AtriCure (ATRC) Reports Q2 Loss, Tops Revenue Estimates
ZACKS· 2025-07-29 22:11
Company Performance - AtriCure reported a quarterly loss of $0.02 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.15, and an improvement from a loss of $0.17 per share a year ago, resulting in an earnings surprise of +86.67% [1] - The company achieved revenues of $136.14 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 4.61% and showing a year-over-year increase from $116.27 million [2] - Over the last four quarters, AtriCure has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - AtriCure shares have increased approximately 8.7% since the beginning of the year, slightly outperforming the S&P 500's gain of 8.6% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $129.12 million, and for the current fiscal year, it is -$0.50 on revenues of $522.61 million [7] Industry Context - The Medical - Products industry, to which AtriCure belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of AtriCure's stock may be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]
AtriCure(ATRC) - 2025 Q2 - Earnings Call Transcript
2025-07-29 21:30
Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $136 million, reflecting a 17% year-over-year increase and a 10.1% sequential growth from Q1 2025 [4][18] - Adjusted EBITDA was $15.4 million, compared to $7.8 million in Q2 2024, indicating significant profitability improvement [23] - Cash generation for the quarter was nearly $18 million, with cash and investments totaling $117.8 million at the end of Q2 2025 [4][23] Business Line Data and Key Metrics Changes - Appendage management revenue grew over 20%, with U.S. sales of appendage management products reaching $45.1 million, up 18.9% year-over-year [6][19] - Pain management franchise grew nearly 43%, driven by the CryoSphere Max and CryoSphere Plus probes, with U.S. sales at $21.2 million, reflecting a 41.1% increase [14][20] - Open ablation product sales were $36.5 million, up 18.6% year-over-year, led by the Encompass clamp [19][11] Market Data and Key Metrics Changes - U.S. revenue was $110.6 million, a 15.7% increase from Q2 2024, with international sales showing strong growth across all franchises [18][21] - European sales accounted for $16.1 million, up 27.7%, while Asia Pacific and other international markets contributed $9.4 million, up 16.3% [21] Company Strategy and Development Direction - The company is focused on innovation, with new product launches such as the AtriClip Flex Mini and CryoStere Max driving growth [5][14] - The completion of the LEAPS clinical trial enrollment is expected to enhance the standard of care for stroke prevention in cardiac surgery [9][10] - The company anticipates continued growth in international markets, outpacing U.S. growth, driven by new product launches and increased adoption of existing products [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue guidance of $527 million to $533 million for 2025, reflecting growth of approximately 13% to 15% [24][27] - The company expects to maintain gross margins comparable to 2024, with adjusted EBITDA projected to be between $49 million and $52 million for the full year [27][24] - Management acknowledged challenges in the minimally invasive hybrid therapy market due to increased adoption of PFA catheter technology but remains optimistic about long-term growth opportunities [13][48] Other Important Information - The company is preparing for the launch of the Cryo XD probe for pain management in lower limb amputations, with initial procedures completed [15][16] - The company is also focused on expanding clinical and economic data to support the value of non-opioid pain management solutions [16] Q&A Session Summary Question: Impact of LEAPS trial completion on physician utilization - Management indicated that the completion of the LEAPS trial has had minimal impact on overall revenue, with continued growth in appendage management adoption [32][34] Question: Managing discussions with electrophysiologists regarding PFA failures - Management emphasized open and transparent discussions with electrophysiologists, focusing on the clinical benefits of PFA and the importance of follow-up solutions [37][39] Question: Guidance implications for top-line growth - Management clarified that guidance reflects a conservative approach, with expectations for continued strong performance driven by new product launches and international growth [43][45] Question: Trends in minimally invasive hybrid therapy - Management acknowledged significant pressure in the hybrid therapy segment but highlighted the overall strength of the business in achieving 17% growth [48][50] Question: Progress on Cryosphere MAX adoption - Management reported that Cryosphere MAX is in over half of U.S. accounts, with cautious optimism for similar uptake in Europe [55][57] Question: Key milestones for clinical initiatives - Management outlined upcoming milestones for LEAPS, BOX No AF, and PFA programs, with expectations for first patient enrollment in BOX No AF this year [66][70]
AtriCure(ATRC) - 2025 Q2 - Earnings Call Presentation
2025-07-29 20:30
Financial Performance - Second quarter revenue reached $136.1 million, a 17.1% increase year-over-year (16.5% on a constant currency basis)[3, 10] - U S revenue increased by $15.0 million, or 15.7%, to $110.6 million compared to the second quarter of 2024[3] - International revenue grew by $4.8 million, or 23.3% (19.9% on a constant currency basis), reaching $25.6 million[3] - Gross profit for the second quarter was $101.5 million, compared to $86.8 million in the second quarter of 2024[4] - Adjusted EBITDA for the second quarter was $15.4 million, an increase of $7.6 million from the second quarter of 2024[5, 10] - Net loss improved by $1.8 million year-over-year, with a net loss of $6.2 million[10] Financial Guidance - Full year 2025 revenue is projected to be approximately $527 million to $533 million[6] - Full year 2025 Adjusted EBITDA is expected to be approximately $49 million to $52 million[6] - Full year 2025 adjusted loss per share is expected to be in the range of $0.34 to $0.39[6] Key Products and Developments - Growth was driven by key product lines, including the AtriClip® FLEX·Mini ™ device, the EnCompass® clamp, and the cryoSPHERE MAX ™ probe[3] - Enrollment was completed for all 6,500 patients in the LeAAPS trial[10]
AtriCure(ATRC) - 2025 Q2 - Quarterly Results
2025-07-29 20:00
[Executive Summary](index=1&type=section&id=Executive%20Summary) AtriCure reported strong Q2 2025 financial results driven by innovation and portfolio expansion, with significant revenue growth, improved profitability, and a major clinical trial milestone [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) AtriCure reported strong second quarter 2025 results, marked by significant revenue growth, improved net loss, and increased Adjusted EBITDA, alongside the completion of a major clinical trial - Worldwide revenue reached **$136.1 million**, an increase of **17.1%** year over year (**16.5%** on a constant currency basis)[6](index=6&type=chunk) - Net loss improved to **$6.2 million**, an improvement of **$1.8 million** year over year[6](index=6&type=chunk) - Adjusted EBITDA was **$15.4 million**, an increase of **$7.6 million** year over year[6](index=6&type=chunk) - The company generated **$17.9 million** of cash in the quarter[6](index=6&type=chunk) - Completed enrollment of all **6,500 patients** in the LeAAPS trial[6](index=6&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Michael Carrel emphasized that the strong Q2 results are a testament to AtriCure's innovation and the expanding impact of its product portfolio, particularly the AtriClip platform and cryoSPHERE devices, which are driving adoption and improving patient outcomes - The stellar results reflect the power of innovation and the growing impact of the expanding portfolio, especially the AtriClip platform and cryoSPHERE device offerings[2](index=2&type=chunk) - New technologies are driving deeper adoption, reduced procedure times, and improved patient outcomes, leading to increasing momentum[2](index=2&type=chunk) - The company is optimistic about delivering strong growth and expanding profitability in the second half of 2025 and beyond[2](index=2&type=chunk) [Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) AtriCure's Q2 2025 financial results show robust revenue growth across segments, improved net loss, and strong non-GAAP performance, despite a slight gross margin decrease [Revenue Performance](index=1&type=section&id=Revenue%20Performance) AtriCure achieved a total revenue of $136.1 million in Q2 2025, representing a 17.1% increase year-over-year, driven by robust growth in both U.S. and international markets across key product lines Q2 2025 Total Revenue Overview | Metric | Q2 2025 | Q2 2024 | YoY Change | YoY Change (Constant Currency) | | :----- | :------ | :------ | :--------- | :----------------------------- | | Total Revenue | $136.1 million | $116.3 million | 17.1% | 16.5% | [U.S. Revenue](index=1&type=section&id=U.S.%20Revenue) U.S. revenue grew by 15.7% to $110.6 million, primarily driven by strong sales in open ablation, pain management, and appendage management product lines U.S. Revenue by Product Line (Q2 2025 vs Q2 2024) | Product Line | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change | | :----------- | :--------------------- | :--------------------- | :--------- | | Open ablation | $36,468 | $30,760 | 18.5% | | Minimally invasive ablation | $7,839 | $11,828 | -33.7% | | Pain management | $21,168 | $15,006 | 41.1% | | Appendage management | $45,108 | $37,945 | 18.9% | | **Total U.S. Revenue** | **$110,583** | **$95,539** | **15.7%** | - U.S. revenue growth was primarily driven by sales across key product lines, including the AtriClip FLEX·Mini device for appendage management, the EnCompass clamp for open ablation, and the cryoSPHERE MAX probe for post-operative pain management[3](index=3&type=chunk) [International Revenue](index=1&type=section&id=International%20Revenue) International revenue surged by 23.3% to $25.6 million, with significant growth across all product franchises and geographic regions International Revenue by Product Line (Q2 2025 vs Q2 2024) | Product Line | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change | | :----------- | :--------------------- | :--------------------- | :--------- | | Open ablation | $10,349 | $9,170 | 12.9% | | Minimally invasive ablation | $2,372 | $1,764 | 34.5% | | Pain management | $2,033 | $1,241 | 63.8% | | Appendage management | $10,802 | $8,555 | 26.3% | | **Total International Revenue** | **$25,556** | **$20,730** | **23.3%** | - International revenue increased by **23.3%** (**19.9%** on a constant currency basis) to **$25.6 million**, realizing significant growth across all franchises and geographic regions[3](index=3&type=chunk) [Profitability and Net Loss](index=1&type=section&id=Profitability%20and%20Net%20Loss) AtriCure demonstrated improved profitability in Q2 2025, reducing its loss from operations and net loss per share compared to the prior year, despite a slight decrease in gross margin due to product mix Q2 2025 Profitability Metrics | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change | | :----- | :--------------------- | :--------------------- | :--------- | | Gross Profit | $101,482 | $86,844 | 16.8% | | Gross Margin | 74.5% | 74.65% | -0.15 percentage points | | Loss from Operations | $(6,192) | $(7,168) | Improved by $976 | | Net Loss | $(6,190) | $(8,008) | Improved by $1,818 | | Basic and Diluted Net Loss Per Share | $(0.13) | $(0.17) | Improved by $0.04 | - Gross margin for the second quarter 2025 was **74.5%**, a decrease of **15 basis points** from the second quarter 2024, reflecting less favorable geographic and product mix[3](index=3&type=chunk) [Non-GAAP Financial Measures (Q2)](index=1&type=section&id=Non-GAAP%20Financial%20Measures%20(Q2)) In Q2 2025, AtriCure reported significant improvements in its non-GAAP financial metrics, with Adjusted EBITDA more than doubling and adjusted loss per share substantially decreasing compared to the prior year Q2 2025 Non-GAAP Financial Metrics | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Adjusted EBITDA | $15.4 million | $7.8 million | Increased by $7.6 million | | Adjusted Loss Per Share | $(0.02) | $(0.17) | Improved by $0.15 | [2025 Financial Guidance](index=1&type=section&id=2025%20Financial%20Guidance) AtriCure has updated its full-year 2025 financial guidance, projecting increased revenue and Adjusted EBITDA, alongside an improved adjusted loss per share [2025 Financial Guidance](index=1&type=section&id=2025%20Financial%20Guidance) AtriCure has raised its financial outlook for the full year 2025, projecting higher revenue and Adjusted EBITDA, alongside an improved adjusted loss per share and modest cash flow generation Full Year 2025 Financial Guidance | Metric | Projected Full Year 2025 | | :----- | :----------------------- | | Revenue | $527 million to $533 million | | Adjusted EBITDA | $49 million to $52 million | | Adjusted Loss Per Share | $(0.34) to $(0.39) | - Management expects modest cash flow generation for the full year 2025[5](index=5&type=chunk) [Company Overview](index=2&type=section&id=Company%20Overview) This section provides an overview of AtriCure's core business in Afib and pain management technologies, along with important disclosures regarding forward-looking statements and associated risks [About AtriCure](index=2&type=section&id=About%20AtriCure) AtriCure, Inc. is a leading innovator in surgical treatments for atrial fibrillation (Afib), left atrial appendage (LAA) management, and post-operative pain management, serving a global market of over 59 million Afib patients. The company's portfolio includes FDA-approved devices and minimally invasive therapies - AtriCure provides innovative technologies for the treatment of Afib and related conditions, which affect more than **59 million people** worldwide[8](index=8&type=chunk) - Key products include the **FDA-approved Isolator Synergy™ Ablation System** for persistent Afib, the widely sold AtriClip Left Atrial Appendage Exclusion System, Hybrid AF™ Therapy, and cryoICE cryoSPHERE probes for pain relief[8](index=8&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section serves as a cautionary note, indicating that statements regarding future events are forward-looking and subject to various risks and uncertainties that could cause actual results to differ materially from projections - Except for historical information, certain statements are forward-looking and subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from projections[9](index=9&type=chunk) - Risks include market acceptance, negative clinical data, competition, regulatory approvals, impacts of rising healthcare costs, and the ability to manage intellectual property rights, as detailed in SEC filings[9](index=9&type=chunk) [Use of Non-GAAP Financial Measures](index=2&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) This section explains AtriCure's use of non-GAAP financial measures to provide supplemental insights into operational performance, emphasizing their limitations and the need for GAAP reconciliation [Use of Non-GAAP Financial Measures](index=2&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) AtriCure uses non-GAAP financial measures like constant currency revenue, Adjusted EBITDA, and Adjusted loss per share to provide supplemental insights into its financial performance, believing these metrics offer a more comparable view of operational results by excluding certain non-operating or non-recurring items. Investors are cautioned to review GAAP reconciliations and not rely solely on non-GAAP measures - Non-GAAP financial measures are provided to supplement GAAP statements, offering additional and meaningful assessments of revenue and operational results[10](index=10&type=chunk)[11](index=11&type=chunk) - These measures have limitations as analytical tools and should not be considered in isolation or as a substitute for GAAP financial results[16](index=16&type=chunk) [Constant Currency Revenue Definition](index=2&type=section&id=Constant%20Currency%20Revenue%20Definition) Constant currency revenue is a non-GAAP metric used to evaluate growth by adjusting for the non-operating impact of foreign currency exchange rate fluctuations - Constant currency revenue is a non-GAAP measure calculated by applying previous period foreign currency exchange rates to comparable periods to better measure comparability of results[11](index=11&type=chunk) - Management analyzes revenue on a constant currency basis to evaluate growth, as changes in foreign currency exchange rates have a non-operating impact[11](index=11&type=chunk) [Adjusted EBITDA Definition](index=2&type=section&id=Adjusted%20EBITDA%20Definition) Adjusted EBITDA is a non-GAAP measure reflecting core business operations by excluding non-cash and non-recurring charges from net loss - Adjusted EBITDA is calculated as net loss before other income/expense, income tax expense, depreciation and amortization, share-based compensation, and non-recurring charges[12](index=12&type=chunk) - Non-recurring charges include acquisition costs, acquired-in-process research and development (IPR&D), legal settlement costs, impairment of intangible assets, and changes in fair value of contingent consideration liabilities[12](index=12&type=chunk) - Management uses Adjusted EBITDA for strategic and annual operating planning, believing it reflects ongoing core business operations[14](index=14&type=chunk) [Adjusted Loss Per Share Definition](index=3&type=section&id=Adjusted%20Loss%20Per%20Share%20Definition) Adjusted loss per share is a non-GAAP metric that modifies net loss per share by excluding specific non-cash and non-recurring adjustments - Adjusted loss per share is a non-GAAP measure that calculates net loss per share before non-cash adjustments for fair value of contingent consideration liabilities, acquired IPR&D, legal settlement costs, impairment of intangible assets, and debt extinguishment[15](index=15&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents AtriCure's unaudited condensed consolidated statements of operations and balance sheets for Q2 2025 and prior periods, detailing financial performance and position [CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents AtriCure's unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024, detailing revenue, expenses, and net loss under GAAP Condensed Consolidated Statements of Operations (Three Months Ended June 30) | Metric (in thousands) | Q2 2025 | Q2 2024 | | :-------------------- | :------ | :------ | | Total revenue | $136,139 | $116,269 | | Cost of revenue | $34,657 | $29,425 | | Gross profit | $101,482 | $86,844 | | Research and development expenses | $29,284 | $20,416 | | Selling, general and administrative expenses | $78,390 | $73,596 | | Total operating expenses | $107,674 | $94,012 | | Loss from operations | $(6,192) | $(7,168) | | Net loss | $(6,190) | $(8,008) | | Basic and diluted net loss per share | $(0.13) | $(0.17) | Condensed Consolidated Statements of Operations (Six Months Ended June 30) | Metric (in thousands) | YTD Q2 2025 | YTD Q2 2024 | | :-------------------- | :---------- | :---------- | | Total revenue | $259,759 | $225,120 | | Cost of revenue | $65,649 | $57,008 | | Gross profit | $194,110 | $168,112 | | Research and development expenses | $51,812 | $40,261 | | Selling, general and administrative expenses | $154,444 | $145,936 | | Total operating expenses | $206,256 | $186,197 | | Loss from operations | $(12,146) | $(18,085) | | Net loss | $(12,937) | $(21,277) | | Basic and diluted net loss per share | $(0.27) | $(0.45) | [CONDENSED CONSOLIDATED BALANCE SHEETS](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides AtriCure's unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024, outlining the company's assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (as of June 30, 2025 vs. December 31, 2024) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | **Assets:** | | | | Cash and cash equivalents | $117,796 | $122,721 | | Total current assets | $271,257 | $267,826 | | Total Assets | $608,849 | $609,328 | | **Liabilities & Equity:** | | | | Total current liabilities | $68,843 | $73,424 | | Total Liabilities | $144,358 | $148,359 | | Total Stockholders' Equity | $464,491 | $460,969 | [Reconciliation of Non-GAAP to GAAP Results](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20to%20GAAP%20Results) This section provides detailed reconciliations of AtriCure's non-GAAP financial measures, including Adjusted EBITDA and Adjusted Loss Per Share, to their most directly comparable GAAP equivalents [Reconciliation of Non-GAAP Adjusted Income (Adjusted EBITDA)](index=6&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) This section provides the reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024, detailing adjustments for income tax, depreciation, share-based compensation, and acquired IPR&D Reconciliation of Non-GAAP Adjusted Income (Adjusted EBITDA) (Three Months Ended June 30) | Metric (in thousands) | Q2 2025 | Q2 2024 | | :-------------------- | :------ | :------ | | Net loss, as reported | $(6,190) | $(8,008) | | Income tax expense | $261 | $253 | | Other income (expense), net | $(263) | $587 | | Depreciation and amortization expense | $5,171 | $4,527 | | Share-based compensation expense | $11,371 | $10,391 | | Acquired in-process research & development expense | $5,000 | — | | **Non-GAAP adjusted income (adjusted EBITDA)** | **$15,350** | **$7,750** | [Reconciliation of Non-GAAP Adjusted Loss Per Share](index=6&type=section&id=Reconciliation%20of%20Adjusted%20Loss%20Per%20Share) This section presents the reconciliation of GAAP net loss to non-GAAP Adjusted Loss Per Share for the three and six months ended June 30, 2025 and 2024, highlighting adjustments for acquired IPR&D and loss on debt extinguishment Reconciliation of Non-GAAP Adjusted Loss Per Share (Three Months Ended June 30) | Metric (in thousands) | Q2 2025 | Q2 2024 | | :-------------------- | :------ | :------ | | Net loss, as reported | $(6,190) | $(8,008) | | Acquired in-process research & development expense | $5,000 | — | | Loss on debt extinguishment | — | — | | **Non-GAAP adjusted net loss** | **$(1,190)** | **$(8,008)** | | Basic and diluted adjusted net loss per share | $(0.02) | $(0.17) | [Additional Information](index=1&type=section&id=Additional%20Information) This section provides details for accessing the upcoming conference call to discuss financial results and contact information for investor relations inquiries [Conference Call](index=1&type=section&id=Conference%20Call) AtriCure will host a conference call to discuss its second quarter 2025 financial results, providing details for accessing the webcast and replay - AtriCure will host a conference call at **4:30 p.m. Eastern Time** on **Tuesday, July 29, 2025**, to discuss second quarter 2025 financial results[6](index=6&type=chunk) - The webcast can be accessed via the Investors page of AtriCure's corporate website (https://ir.atricure.com/events-and-presentations/events), with a replay available for **90 days**[6](index=6&type=chunk)[7](index=7&type=chunk) [CONTACTS](index=3&type=section&id=CONTACTS) This section provides contact information for investor relations inquiries - Investor relations contacts are Angie Wirick (Chief Financial Officer, AtriCure, Inc.) and Marissa Bych (Gilmartin Group)[17](index=17&type=chunk)