AtriCure Reports First Quarter 2021 Financial Results

Rhea-AI Summary

AtriCure, Inc. (Nasdaq: ATRC) reported first quarter 2021 revenue of $59.3 million, an increase of 11.4% year-over-year. U.S. revenue grew 15.7% to $50.3 million, driven by increasing sales in key product categories, while international revenue declined 8.1% to $9 million due to COVID-19 restrictions. The gross profit rose to $44.5 million with a gross margin of 75.1%. The company reported a net loss of $15.9 million, or $0.38 per share, an improvement from $0.42 per share a year earlier. AtriCure projects full year 2021 revenue between $252 million and $256 million.

Positive

• Revenue increased 11.4% year-over-year to $59.3 million.
• U.S. revenue rose 15.7%, reaching $50.3 million.
• Gross profit increased to $44.5 million with a gross margin of 75.1%.
• Adjusted EBITDA loss improved to $4.7 million from $6.1 million.

Negative

• Net loss of $15.9 million, slightly worse than $15.5 million in Q1 2020.
• International revenue fell 8.1% due to COVID-19 impacts.
• Full year financial guidance remains uncertain due to ongoing pandemic effects.

AtriCure, Inc. (Nasdaq: ATRC), a leading innovator in treatments for atrial fibrillation (Afib) and left atrial appendage (LAA) management, today announced first quarter 2021 financial results.

“Our growth in the first quarter is a testament of our team’s strong execution and unwavering dedication despite continued COVID headwinds,” said Michael Carrel, President and Chief Executive Officer of AtriCure. “As we navigate toward a return to normalcy, I am confident that we are extremely well positioned for the future with our pathway of growth catalysts and the realization of these opportunities underway, beginning with CONVERGE.”

First Quarter 2021 Financial Results

Revenue for the first quarter of 2021 was $59.3 million, an increase of $6.1 million or 11.4% (an increase of 10.5% on a constant currency basis), compared to first quarter 2020 revenue. U.S. revenue was $50.3 million, an increase of $6.8 million or 15.7%, compared to first quarter 2020 revenue. U.S. revenue growth was driven by increased sales across key products within open ablation, minimally invasive ablation and appendage management categories, reflecting continued recovery of domestic procedure volumes. International revenue decreased 8.1% (a decrease of 12.9% on a constant currency basis) to $9.0 million. The decline in international revenue was driven by the various COVID-19 restrictions and delayed recoveries across the different geographies. On a sequential basis, worldwide revenue for the first quarter 2021 increased approximately 3% over fourth quarter 2020.

Gross profit for the first quarter of 2021 was $44.5 million compared to $38.9 million for the first quarter of 2020. Gross margin was 75.1% and 73.1% for the first quarters of 2021 and 2020 respectively, reflecting the favorable impact of both geographic and product mix.

Loss from operations for the first quarter of 2021 was $15.9 million, compared to $15.5 million for the first quarter of 2020. Net loss per share was $0.38 for the first quarter of 2021, compared to $0.42 for the first quarter of 2020.

Adjusted EBITDA was a loss of $4.7 million for the first quarter of 2021 compared to a $6.1 million loss for the first quarter of 2020. Adjusted loss per share for the first quarter of 2021 was $0.32 compared to $0.36 for the first quarter of 2020.

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.

2021 Financial Guidance

Full year 2021 revenue is now projected to be approximately $252 million to $256 million. As with previous guidance, continued uncertainty relating to the dynamic environment with the COVID-19 pandemic could materially impact this projection. Additionally, the Company is maintaining guidance for full year 2021 adjusted EBITDA loss of approximately $10 million and adjusted loss per share of $1.15.

Conference Call

AtriCure will host a conference call at 4:30 p.m. Eastern Time on Tuesday, April 27, 2021 to discuss its first quarter 2021 financial results. The call may be accessed through an operator by calling (844) 884-9951 for domestic callers and (661) 378-9661 for international callers using conference ID number 3349395. A live audio webcast of the presentation may be accessed by visiting the Investors page of AtriCure’s corporate website at ir.atricure.com. 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 33 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 and only 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. For more information, visit AtriCure.com or follow us on 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/fls as well as our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q which contain risk factors. We do not undertake to update our forward-looking statements.

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, which are determined by the average daily Euro to Dollar exchange rate, to each of the comparable periods. Management analyzes revenue on a constant currency basis to better

FAQ

What were AtriCure's first quarter 2021 financial results?

AtriCure reported first quarter 2021 revenue of $59.3 million, a net loss of $15.9 million, and an adjusted EBITDA loss of $4.7 million.

What is AtriCure's revenue guidance for 2021?

AtriCure projects full year 2021 revenue between $252 million and $256 million.

How did AtriCure's U.S. and international revenue perform in Q1 2021?

U.S. revenue increased by 15.7% to $50.3 million, while international revenue decreased by 8.1% to $9 million.

What were the main drivers of AtriCure's revenue growth in Q1 2021?

The revenue growth was primarily driven by increased sales across key product categories, notably in open ablation and minimally invasive ablation.