AtriCure Reports Preliminary Results for Fourth Quarter and Full Year 2023, Provides Financial Outlook for 2024

Rhea-AI Summary

AtriCure, a leading innovator in surgical treatments for atrial fibrillation, announced preliminary financial results for Q4 2023 and full year 2023. The company expects a 21% growth in revenue for Q4 2023, with U.S. revenue at $88.7 million and international revenue at $17.8 million. Full year 2023 revenue is expected to be $399.2 million, reflecting a 21% growth over 2022. The company also provided 2024 financial guidance, projecting revenue of $459 million to $466 million, and positive adjusted EBITDA of $26 million to $29 million.

Insights

Financial Analyst

The preliminary financial results of AtriCure for Q4 and the full year of 2023 suggest a strong performance, with an impressive growth rate of approximately 21% year-over-year. The projected revenue growth for 2024 indicates a slightly slower pace, with an expected increase of 15% to 17%. This deceleration may be indicative of market saturation or increased competition. However, the forecasted positive adjusted EBITDA for 2024, estimated to be between $26 million and $29 million, reflects a healthy upward trend in profitability, likely driven by operational efficiencies and an expanding product portfolio.

Investors should note the reliance on non-GAAP measures such as adjusted EBITDA and constant currency revenue growth. These metrics exclude certain expenses that are factored into GAAP measures, potentially presenting a more favorable financial position. It's crucial to consider the forthcoming GAAP reconciliation for a complete financial picture. The growth in U.S. and international revenues, particularly the robust performance of the Hybrid AF™ therapy and other devices, suggests successful market penetration and product adoption.

Market Research Analyst

From a market perspective, AtriCure's focus on surgical treatments for atrial fibrillation and related therapies positions it well in a specialized and growing segment of the medical device industry. The significant year-over-year growth, especially in the international market, indicates a robust global demand for Afib solutions. The emphasis on innovative therapies like the Hybrid AF™ therapy, AtriClip®, Encompass® and cryoSPHERE® devices showcases the company's commitment to expanding its product line and catering to diverse medical needs.

Looking forward, the projected revenue growth for 2024, while lower than 2023, still represents a strong trajectory in a market that is becoming increasingly aware of the importance of advanced Afib treatments. The anticipated increase in operating leverage implies that AtriCure is expected to manage its expenses effectively while scaling up its operations, which could enhance its competitive edge and market share.

Medical Device Industry Expert

AtriCure's performance is indicative of the broader trends in the medical device sector, where innovation and specialization drive growth. The company's success with Hybrid AF™ therapy and its suite of other devices highlights the importance of technological advancements in treating complex cardiac conditions. The growth in the LAA management and post-operative pain management segments further demonstrates the company's strategic focus on comprehensive cardiac care solutions.

The medical device industry is subject to stringent regulatory environments and AtriCure's ability to grow amidst these conditions suggests effective navigation of such challenges. Prospective investors and stakeholders should consider the potential impact of regulatory changes on the company's future performance. Additionally, the ongoing need for clinical validation and the adoption of new surgical techniques may influence the rate of growth and market acceptance of AtriCure's offerings.

MASON, Ohio--(BUSINESS WIRE)-- 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, announced preliminary financial results for the fourth quarter and full year 2023 and provided 2024 financial guidance.

Preliminary, unaudited revenue for fourth quarter 2023 is expected to be $106.5 million, reflecting growth of approximately 21% over the fourth quarter of 2022 (20% on a constant currency basis). U.S. revenue is expected to be $88.7 million, reflecting growth of approximately 20%, and international revenue is expected to be $17.8 million, an increase of approximately 26% as reported (22% on a constant currency basis). Fourth quarter revenue was driven by strong growth in Hybrid AF™ therapy, followed by sales of our AtriClip^®, Encompass^®, and cryoSPHERE^® devices.

Preliminary, unaudited revenue for full year 2023 is expected to be $399.2 million, reflecting growth of approximately 21% over full year 2022 (21% on a constant currency basis). As previously communicated, management expects full year 2023 positive adjusted EBITDA of approximately $18 million to $20 million, and full year 2023 adjusted loss per share of approximately $0.74 to $0.76. Adjusted EBITDA, adjusted loss per share and constant currency revenue growth are non-GAAP measures. AtriCure will provide a reconciliation of non-GAAP measures to the related GAAP measure in the release of audited 2023 results.

“Our fourth quarter 2023 results complete an exceptional year at AtriCure, as we extend our impact on patients globally,” said Michael Carrel, President and Chief Executive Officer of AtriCure. “We continue to see substantial opportunities in each of our markets and are well positioned to deliver robust growth and increasing operating leverage in 2024 and beyond.”

2024 Financial Guidance

Management projects 2024 revenue of approximately $459 million to $466 million, reflecting growth of approximately 15% to 17% over full year 2023. Management also projects full year 2024 positive adjusted EBITDA of approximately $26 million to $29 million, with improvements annually thereafter.

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 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 January 8, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240108645382/en/

Angie Wirick

AtriCure, Inc.

Chief Financial Officer

(513) 755-5334

awirick@atricure.com

Marissa Bych

Gilmartin Group

Investor Relations

marissa@gilmartinir.com

Source: AtriCure, Inc.

FAQ

What are AtriCure's preliminary financial results for Q4 2023?

AtriCure expects a 21% growth in revenue for Q4 2023, with U.S. revenue at $88.7 million and international revenue at $17.8 million.

What is AtriCure's full year 2023 revenue expectation?

Full year 2023 revenue is expected to be $399.2 million, reflecting a 21% growth over 2022.

What is AtriCure's 2024 revenue projection?

AtriCure projects revenue of approximately $459 million to $466 million for 2024.

What is AtriCure's 2024 adjusted EBITDA projection?

Management projects full year 2024 positive adjusted EBITDA of approximately $26 million to $29 million.