AtriCure Reports Third Quarter 2024 Financial Results

Rhea-AI Summary

AtriCure reported strong Q3 2024 financial results with worldwide revenue reaching $115.9 million, up 17.9% year-over-year. U.S. revenue grew 16.8% to $95.5 million, while international revenue increased 23.3% to $20.5 million. The company achieved 20% growth in U.S. open appendage management devices and generated positive cash flow of $16.3 million. Gross profit was $86.8 million with a 74.9% margin. The company updated its full-year 2024 revenue guidance to $459-462 million, representing 15-16% growth, and maintained its Adjusted EBITDA guidance of $26-29 million.

Positive

• Worldwide revenue increased 17.9% YoY to $115.9 million
• U.S. revenue grew 16.8% to $95.5 million
• International revenue rose 23.3% to $20.5 million
• Generated positive cash flow of $16.3 million
• Strong gross margin of 74.9%
• Raised full-year 2024 revenue guidance to $459-462 million

Negative

• Operating loss of $7.4 million in Q3 2024
• Net loss per share of $0.17
• Sequential revenue decline of 0.3% from Q2 2024
• Gross margin decreased 27 basis points YoY

Insights

Financial Analyst

AtriCure's Q3 2024 results demonstrate robust growth with $115.9 million in revenue, up 17.9% YoY. The company's core business segments show healthy momentum, particularly in U.S. operations which contributed $95.5 million (16.8% growth) and international markets at $20.5 million (23.3% growth). Despite a slight gross margin decline of 27 basis points, operational efficiency improvements are evident with reduced net loss per share from $0.20 to $0.17.

The raised full-year revenue guidance of $459-462 million and maintained Adjusted EBITDA forecast of $26-29 million reflects management's confidence in continued growth. The $16.3 million positive cash flow generation signals improving financial health and operational scalability.

Medical Research Analyst

The strong adoption of AtriCure's innovative product portfolio, particularly the ENCOMPASS® clamp, AtriClip® Flex·V® device and cryoSPHERE® probes, validates the company's market position in surgical treatments for atrial fibrillation. The 20% growth in U.S. appendage management devices is particularly noteworthy, indicating increasing clinical acceptance of these solutions. New product launches in both U.S. and European markets during Q3 suggest a robust pipeline and continued market expansion potential, addressing the growing global Afib patient population of over 37 million.

• Worldwide revenue of $115.9 million – an increase of 17.9% year over year
• U.S. revenue of $95.5 million – an increase of 16.8% year over year
• Achieved 20% growth on revenues from open appendage management devices in the U.S.
• International revenue of $20.5 million – an increase of 23.3% year over year
• Positive cash flow generation of $16.3 million in third quarter 2024

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, today announced third quarter 2024 financial results.

“Our broad-based growth in the third quarter reflects strong, ongoing adoption trends throughout our business,” said Michael Carrel, President and Chief Executive Officer at AtriCure. “During the quarter, we launched several new products in the United States and Europe, leading to an acceleration in growth along with continued improvement in profitability and positive cash flow generation. Our results are a testament to our commitment to expand access to our innovative solutions for patients and providers worldwide.”

Third Quarter 2024 Financial Results

Revenue for the third quarter 2024 was $115.9 million, an increase of 17.9% over third quarter 2023 revenue (17.8% on a constant currency basis), reflecting continued adoption of our products by physicians globally for the treatment of patients with Afib, LAA management and post-operative pain management. On a sequential basis, worldwide revenue for the third quarter 2024 decreased approximately 0.3% from the second quarter 2024 due to normal seasonality of procedures in summer months.

U.S. revenue was $95.5 million, an increase of $13.8 million or 16.8%, compared to the third quarter 2023. U.S. revenue growth was driven by sales across key product lines, including the ENCOMPASS^® clamp in open ablation, AtriClip^® Flex·V^® device in appendage management and cryoSPHERE^® probes for post-operative pain management. International revenue increased $3.9 million or 23.3% (22.4% on a constant currency basis) to $20.5 million, realizing significant growth across all franchises in Europe and most of our other major geographic regions.

Gross profit for the third quarter 2024 was $86.8 million compared to $73.9 million for the third quarter 2023. Gross margin was 74.9% for the third quarter 2024, a decrease of 27 basis points from the third quarter 2023, reflecting less favorable geographic and product mix. Loss from operations for the third quarter 2024 was $7.4 million, compared to $8.1 million for the third quarter 2023. Basic and diluted net loss per share was $0.17 for the third quarter 2024, compared to $0.20 for the third quarter 2023.

Adjusted EBITDA for the third quarter 2024 is $7.9 million, an increase of $3.2 million from third quarter of 2023. Adjusted loss per share for the third quarter 2024 was $0.17, compared to $0.20 for the third quarter 2023.

Constant currency revenue, adjusted EBITDA and adjusted loss per share are non-GAAP financial measures. We discuss these non-GAAP financial measures and provide reconciliations to GAAP measures later in this release.

2024 Financial Guidance

AtriCure now expects full year 2024 revenue of approximately $459 million to $462 million, reflecting growth of approximately 15% to 16%. Management continues to expect full year 2024 Adjusted EBITDA of approximately $26 million to $29 million, with improvements annually thereafter. Projected full year 2024 adjusted EBITDA represents a 34% to 49% increase over full year 2023. Full year 2024 adjusted loss per share is expected to be in the range of $0.74 to $0.80.

Conference Call

AtriCure will host a conference call at 4:30 p.m. Eastern Time on Tuesday, October 29, 2024 to discuss third quarter 2024 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, cardiothoracic and thoracic surgeons around the globe use AtriCure technologies for the treatment of Afib, reduction of Afib related complications, and post-operative pain management. 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 October 29, 2024. We assume no obligation to update any forward-looking statements contained in this release 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 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 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 assets 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 (Adjusted EBITDA)” later in this release.

Adjusted loss per share is a non-GAAP measure which calculates the net loss per share before non-cash adjustments in fair value of contingent consideration liabilities, impairment of intangible assets, debt extinguishment and legal settlements. A reconciliation of adjusted loss 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 September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
United States Revenue:
Open ablation	$	30,601			$	25,844			$	90,661			$	77,988
Minimally invasive ablation		11,117				10,893				35,263				31,900
Pain management		16,314				12,591				44,059				36,249
Total ablation		58,032				49,328				169,983				146,137
Appendage management		37,420				32,364				111,257				98,647
Total United States		95,452				81,692				281,240				244,784
International Revenue:
Open ablation		8,607				8,007				25,679				23,015
Minimally invasive ablation		1,681				1,578				5,559				4,820
Pain management		1,590				547				3,768				1,214
Total ablation		11,878				10,132				35,006				29,049
Appendage management		8,580				6,466				24,784				18,869
Total International		20,458				16,598				59,790				47,918
Total revenue		115,910				98,290				341,030				292,702
Cost of revenue		29,117				24,421				86,125				72,147
Gross profit		86,793				73,869				254,905				220,555
Operating expenses:
Research and development expenses		20,960				20,354				61,221				53,119
Selling, general and administrative expenses		73,238				61,604				219,174				185,451
Total operating expenses		94,198				81,958				280,395				238,570
Loss from operations		(7,405	)			(8,089	)			(25,490	)			(18,015	)
Other expense, net		(126	)			(919	)			(2,882	)			(2,416	)
Loss before income tax expense		(7,531	)			(9,008	)			(28,372	)			(20,431	)
Income tax expense		322				47				758				218
Net loss	$	(7,853	)		$	(9,055	)		$	(29,130	)		$	(20,649	)
Basic and diluted net loss per share	$	(0.17	)		$	(0.20	)		$	(0.62	)		$	(0.45	)
Weighted average shares used in computing net loss per share:
Basic and diluted		47,105				46,411				46,912				46,262

ATRICURE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands) (Unaudited)
	September 30, 2024				December 31, 2023
Assets
Current assets:
Cash, cash equivalents, and short-term investments	$	130,335			$	137,285
Accounts receivable, net		54,909				52,501
Inventories		76,546				67,897
Prepaid and other current assets		7,496				8,563
Total current assets		269,286				266,246
Property and equipment, net		43,537				42,435
Operating lease right-of-use assets		6,100				4,324
Goodwill and intangible assets, net		293,133				298,767
Other noncurrent assets		3,012				2,160
Total Assets	$	615,068			$	613,932
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities	$	71,716			$	72,036
Current lease liabilities		2,715				2,533
Total current liabilities		74,431				74,569
Long-term debt		61,865				60,593
Finance and operating lease liabilities		12,548				11,368
Other noncurrent liabilities		1,203				1,234
Total Liabilities		150,047				147,764
Stockholders' Equity:
Common stock		49				48
Additional paid-in capital		851,306				824,170
Accumulated other comprehensive loss		(147	)			(993	)
Accumulated deficit		(386,187	)			(357,057	)
Total Stockholders' Equity		465,021				466,168
Total Liabilities and Stockholders' Equity	$	615,068			$	613,932

ATRICURE, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS (In Thousands) (Unaudited)
Reconciliation of Non-GAAP Adjusted Income (Adjusted EBITDA)
	Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Net loss, as reported	$	(7,853	)		$	(9,055	)		$	(29,130	)		$	(20,649	)
Income tax expense		322				47				758				218
Other expense, net		126				919				2,882				2,416
Depreciation and amortization expense		4,928				4,111				13,907				10,634
Share-based compensation expense		10,364				8,661				30,020				26,416
Gain from legal settlements		—				—				—				(4,412	)
Non-GAAP adjusted income (adjusted EBITDA)	$	7,887			$	4,683			$	18,437			$	14,623

Reconciliation of Non-GAAP Adjusted Loss Per Share
	Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Net loss, as reported	$	(7,853	)		$	(9,055	)		$	(29,130	)		$	(20,649	)
Loss on debt extinguishment		—				—				1,362				—
Gain from legal settlements		—				—				—				(4,412	)
Non-GAAP adjusted net loss	$	(7,853	)		$	(9,055	)		$	(27,768	)		$	(25,061	)
Basic and diluted adjusted net loss per share	$	(0.17	)		$	(0.20	)		$	(0.59	)		$	(0.54	)
Weighted average shares used in computing adjusted net loss per share
Basic and diluted		47,105				46,411				46,912				46,262

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241029706905/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 (ATRC) revenue growth in Q3 2024?

AtriCure's worldwide revenue grew 17.9% year-over-year to $115.9 million in Q3 2024.

What is AtriCure's (ATRC) revenue guidance for full-year 2024?

AtriCure expects full-year 2024 revenue of $459-462 million, representing growth of 15-16%.

What was AtriCure's (ATRC) cash flow in Q3 2024?

AtriCure generated positive cash flow of $16.3 million in Q3 2024.

What was AtriCure's (ATRC) international revenue performance in Q3 2024?

International revenue increased 23.3% to $20.5 million in Q3 2024.