AtriCure(US:ATRC)2025-04-29 21:32Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $124 million, representing a 14% growth compared to the same period in 2024 [6][21] - Adjusted EBITDA for Q1 2025 was $9 million, an improvement of over 200% from Q1 2024 [6][26] - Gross margin for Q1 2025 was 74.9%, up 27 basis points from Q1 2024 [25] Business Line Data and Key Metrics Changes - Appendage management revenue grew 19%, with open AtriClip devices growing 23% and minimally invasive (MIS) devices growing 7% [10] - Open ablation franchise saw a 14% growth, with Encompass clamp sales increasing by over 47% [14] - Pain management franchise experienced a 39% growth, driven by the adoption of CryoStur Max and CryoStur Plus probes [18] Market Data and Key Metrics Changes - U.S. revenue was $101.1 million, a 12.1% increase from Q1 2024 [21] - International revenue totaled $22.5 million, up 20.8% on a reported basis [25] - European sales accounted for $14.2 million, reflecting a 25.1% increase [25] Company Strategy and Development Direction - The company aims to remain a leader in multibillion-dollar markets through investments in product development and clinical research [7][8] - A focus on double-digit revenue growth and expanding profitability through the rest of the decade is emphasized [7] - The company is expanding its Cryo nerve block therapy to address postoperative pain and reduce opioid dependency [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive cash flow for the remainder of 2025, with a modest gain expected for the year [27][28] - The company anticipates continued pressure in the U.S. MIS ablation and appendage management revenue in the near term [29] - Management highlighted the importance of maintaining relationships with electrophysiologists (EPs) to navigate competitive pressures from PFA technologies [81] Other Important Information - The company received FDA clearance for the AtriClip Pro Mini device, which is expected to enhance minimally invasive procedures [12] - The LEAPS trial is progressing rapidly, with total enrollment reaching 5,500 patients, aiming for 6,500 by Q3 2025 [13] Q&A Session Summary Question: Impact of tariffs on gross margin - Management expects a modest impact on gross margin due to tariffs, primarily because most suppliers are based in the U.S. [36] Question: Acceleration in appendage management - The acceleration is attributed to the launch of the Flex Mini device, which has received positive feedback from physicians [39] Question: Guidance for revenue growth - Management refrained from raising the low end of the revenue guidance range, citing it is early in the year [43] Question: Pain management growth sources - Growth is driven by increased adoption of CryoStur Max and improved procedure efficiency [47] Question: Confidence in MIS business recovery - Management believes there are signs of recovery, but anticipates continued pressure in the near term [100] Question: Future of Encompass clamp - The Encompass clamp is expected to continue driving growth, with significant market penetration still available [93]