AtriCure Reports Fourth Quarter 2023 and Full Year 2023 Financial Results
- Strong revenue growth in Q4 and full year 2023, with worldwide revenue of $106.5 million and $399.2 million respectively.
- 21.0% year-over-year increase in Q4 revenue and 20.8% increase for the full year.
- Net loss of $30.4 million for 2023, but positive adjusted EBITDA of $19.4 million.
- Over one million patients treated by AtriCure to date, showcasing significant market penetration.
- 2024 revenue projected to be $459 million to $466 million, with 15% to 17% growth over 2023.
- Adjusted EBITDA expected to increase by 34% to 49% over 2023, with a projected range of $26 million to $29 million for 2024.
- AtriCure to host a conference call on February 15, 2024, to discuss financial results.
- None.
Insights
The reported revenue growth for AtriCure, Inc. is a robust indicator of the company's expanding market presence and the increasing adoption of its surgical treatments. The year-over-year revenue increase of approximately 21% is significant, outpacing the average industry growth rate for medical device companies, which typically hovers around the mid to high single digits. This suggests that AtriCure is gaining market share and that its strategic initiatives are bearing fruit.
From a financial perspective, the improvement in net loss and the positive adjusted EBITDA reflect improved operational efficiency and cost management. These improvements are crucial for the company's path to sustained profitability. The reported gross margin expansion, although modest, is indicative of the company's ability to scale production and optimize costs, which is essential for future profitability as the company continues to invest in clinical trials and product development.
The forward-looking guidance for 2024, projecting 15% to 17% revenue growth and a significant increase in adjusted EBITDA, suggests management's confidence in the company's growth trajectory. However, the projected adjusted loss per share indicates that the company is still in a growth phase, prioritizing expansion over immediate profitability.
From a market perspective, AtriCure's performance can be attributed to the increasing prevalence of atrial fibrillation, which is driving demand for Afib-related surgical treatments. The company's focus on innovation and clinical science, as mentioned by the CEO, is likely resonating with healthcare providers. The strong growth in international revenue highlights the global appeal of AtriCure's products and the effectiveness of its international market penetration strategies.
The company's product portfolio, including the EPi-Sense® Systems, AtriClip® Flex⋅V® devices, ENCOMPASS® clamp and cryoSPHERE® probe, appears to be well-received in the market. The uptick in sales for these devices could be due to their differentiation in the market and the clinical value they provide. As AtriCure continues to invest in product development, maintaining this momentum will be key to sustaining growth and capturing additional market share.
The medical device sector, particularly in the area of cardiac surgery, is highly competitive and subject to rapid technological advancements. AtriCure's reported growth and positive financial outcomes indicate successful navigation through regulatory landscapes and effective response to market needs. The company's emphasis on innovation—evident from their investment in clinical trials and product development—is a strategic move to maintain a competitive edge in the market.
Moreover, the focus on atrial fibrillation and post-operative pain management reflects a targeted approach to addressing high-impact medical conditions. AtriCure's ability to treat over one million patients showcases not only the clinical acceptance of their technologies but also their potential impact on public health. As the company looks to 2024, stakeholders will be interested in the outcomes of ongoing clinical trials and any regulatory milestones that could further enhance the company's market position and financial performance.
-
Fourth Quarter 2023 Worldwide revenue of
$106.5 million 21.0% year over year -
Full Year 2023 Worldwide revenue of
$399.2 million 20.8% year over year -
Full Year 2023 U.S. revenue of
$333.5 million 20.3% year over year -
Full Year 2023 International revenue of
$65.7 million 23.5% year over year -
Full Year 2023 Net loss of
$30.4 million $16.0 million -
Full Year 2023 Positive adjusted EBITDA of
$19.4 million $21.6 million - Over one million patients treated life to date
“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
Gross profit for the fourth quarter 2023 was
Adjusted EBITDA was positive for the fourth quarter 2023 at
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
Loss from operations for 2023 was
Adjusted EBITDA was positive
2024 Financial Guidance
Full year 2024 revenue is projected to be approximately
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
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.
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, |
|||||||||||||
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
United States Revenue: |
|
|
|
|
|
|
|
||||||||
Open ablation |
$ |
27,299 |
|
|
$ |
23,506 |
|
|
$ |
105,287 |
|
|
$ |
86,119 |
|
Minimally invasive ablation |
|
12,677 |
|
|
|
9,707 |
|
|
|
44,577 |
|
|
|
38,553 |
|
Pain management |
|
12,950 |
|
|
|
11,240 |
|
|
|
49,199 |
|
|
|
39,974 |
|
Total ablation |
|
52,926 |
|
|
|
44,453 |
|
|
|
199,063 |
|
|
|
164,646 |
|
Appendage management |
|
35,834 |
|
|
|
29,435 |
|
|
|
134,481 |
|
|
|
112,555 |
|
Total |
|
88,760 |
|
|
|
73,888 |
|
|
|
333,544 |
|
|
|
277,201 |
|
International Revenue: |
|
|
|
|
|
|
|
||||||||
Open ablation |
|
8,468 |
|
|
|
7,424 |
|
|
|
31,483 |
|
|
|
26,809 |
|
Minimally invasive ablation |
|
1,850 |
|
|
|
1,737 |
|
|
|
6,670 |
|
|
|
5,986 |
|
Pain management |
|
799 |
|
|
|
183 |
|
|
|
2,013 |
|
|
|
558 |
|
Total ablation |
|
11,117 |
|
|
|
9,344 |
|
|
|
40,166 |
|
|
|
33,353 |
|
Appendage management |
|
6,666 |
|
|
|
4,796 |
|
|
|
25,535 |
|
|
|
19,825 |
|
Total International |
|
17,783 |
|
|
|
14,140 |
|
|
|
65,701 |
|
|
|
53,178 |
|
Total revenue |
|
106,543 |
|
|
|
88,028 |
|
|
|
399,245 |
|
|
|
330,379 |
|
Cost of revenue |
|
26,728 |
|
|
|
22,915 |
|
|
|
98,875 |
|
|
|
84,439 |
|
Gross profit |
|
79,815 |
|
|
|
65,113 |
|
|
|
300,370 |
|
|
|
245,940 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development expenses |
|
20,796 |
|
|
|
13,748 |
|
|
|
73,915 |
|
|
|
57,337 |
|
Selling, general and administrative expenses |
|
67,687 |
|
|
|
55,501 |
|
|
|
253,138 |
|
|
|
231,272 |
|
Total operating expenses |
|
88,483 |
|
|
|
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 expense |
|
373 |
|
|
|
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 diluted |
|
46,447 |
|
|
|
45,912 |
|
|
|
46,309 |
|
|
|
45,740 |
|
ATRICURE, INC. AND SUBSIDIARIES |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(In Thousands) |
|||||||
(Unaudited) |
|||||||
December 31,
|
|
December 31,
|
|||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash, cash equivalents, and short-term investments |
$ |
137,285 |
|
|
$ |
121,113 |
|
Accounts receivable, net |
|
52,501 |
|
|
|
42,693 |
|
Inventories |
|
67,897 |
|
|
|
45,931 |
|
Prepaid and other current assets |
|
8,563 |
|
|
|
5,477 |
|
Total current assets |
|
266,246 |
|
|
|
215,214 |
|
Long-term investments |
|
— |
|
|
|
51,509 |
|
Property and equipment, net |
|
42,435 |
|
|
|
38,833 |
|
Operating lease right-of-use assets |
|
4,324 |
|
|
|
3,787 |
|
Goodwill and intangible assets, net |
|
298,767 |
|
|
|
274,120 |
|
Other noncurrent assets |
|
2,160 |
|
|
|
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 leases |
|
2,533 |
|
|
|
5,472 |
|
Total current liabilities |
|
74,569 |
|
|
|
58,392 |
|
Long-term debt |
|
60,593 |
|
|
|
56,834 |
|
Finance and operating lease liabilities |
|
11,368 |
|
|
|
12,242 |
|
Other noncurrent liabilities |
|
1,234 |
|
|
|
1,226 |
|
Total liabilities |
|
147,764 |
|
|
|
128,694 |
|
Stockholders' equity: |
|
|
|
||||
Common stock |
|
48 |
|
|
|
47 |
|
Additional paid-in capital |
|
824,170 |
|
|
|
787,422 |
|
Accumulated other comprehensive loss |
|
(993 |
) |
|
|
(4,096 |
) |
Accumulated deficit |
|
(357,057 |
) |
|
|
(326,619 |
) |
Total stockholders' equity |
|
466,168 |
|
|
|
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
|
|
Twelve Months Ended
|
|||||||||||||
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
Net loss, as reported |
$ |
(9,789 |
) |
|
$ |
(4,170 |
) |
|
$ |
(30,438 |
) |
|
$ |
(46,466 |
) |
Income tax expense |
|
373 |
|
|
|
121 |
|
|
|
591 |
|
|
|
268 |
|
Other income (expense), net |
|
748 |
|
|
|
(87 |
) |
|
|
3,164 |
|
|
|
3,529 |
|
Depreciation and amortization expense |
|
4,179 |
|
|
|
2,919 |
|
|
|
14,813 |
|
|
|
11,710 |
|
Share-based compensation expense |
|
9,312 |
|
|
|
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
|
|
Twelve Months Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
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 diluted |
|
46,447 |
|
|
|
45,912 |
|
|
|
46,309 |
|
|
|
45,740 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240215724879/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
Source: AtriCure, Inc.
FAQ
What was AtriCure's worldwide revenue for the fourth quarter of 2023?
What was the year-over-year increase in revenue for AtriCure in the full year 2023?
What was AtriCure's net loss for 2023?
Did AtriCure achieve positive adjusted EBITDA for 2023?
How many patients has AtriCure treated to date?
What is AtriCure's revenue guidance for full year 2024?
What is the expected range for AtriCure's adjusted EBITDA for full year 2024?
When will AtriCure host a conference call to discuss its financial results?
