ATRC AtriCure Inc

• 2022 Worldwide revenue of $330.4 million – an increase of 20.4% year over year
• 2022 U.S. revenue of $277.2 million – an increase of 21.0% year over year
• 2022 International revenue of $53.2 million – an increase of 17.7% in 2022

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 fourth quarter 2022 and full year 2022 financial results.

“We delivered another outstanding year of growth in 2022, as we expanded adoption across our broad portfolio of solutions. I am incredibly proud of the dedication of our team to our mission of improving patient lives, which led to an impact on over 100,000 patients around the globe in 2022,” said Michael Carrel, President and Chief Executive Officer of AtriCure. “We begin 2023 with an unrelenting determination to execute against the significant market opportunities in front of us while also achieving operating leverage, building upon the foundation we have created over the last decade with a long-term, growth mindset.”

Fourth Quarter 2022 Financial Results

Revenue for the fourth quarter 2022 was $88.0 million, an increase of 20.2% (an increase of 21.5% on a constant currency basis) over fourth quarter 2021 revenue. U.S. revenue was $73.9 million, an increase of $12.7 million or 20.7%, compared to fourth quarter 2021 revenue. U.S. revenue reflected strong growth across our open ablation, pain management and appendage management product lines, driven by sales of our EnCompass® clamp, cryoSPHERE® and AtriClip® Flex⋅V® products. International revenue increased $2.1 million or 17.8% (an increase of 25.4% on a constant currency basis) to $14.1 million, reflecting growth in appendage management and open ablation franchises. On a sequential basis, worldwide revenue for the fourth quarter 2022 increased approximately 5.7% over third quarter 2022.

Gross profit for the fourth quarter 2022 was $65.1 million compared to $55.0 million for the fourth quarter 2021. Gross margin was 74.0% and 75.1% for the fourth quarters 2022 and 2021, reflecting changes in product and geographic mix, as well as inflationary pressure. Loss from operations for the fourth quarter 2022 was $4.1 million, compared to $12.5 million for the fourth quarter 2021, reflecting strong revenue growth and improving leverage of our operating costs. Basic and diluted net loss per share was $0.09 for the fourth quarter 2022, compared to $0.30 for the fourth quarter 2021.

Adjusted EBITDA was positive for the fourth quarter 2022 at $6.0 million, compared to negative $2.1 million for fourth quarter of 2021. Adjusted loss per share for the fourth quarter 2022 was $0.09 compared to $0.30 for the fourth quarter 2021.

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.

2022 Financial Results

Revenue for 2022 was $330.4 million, an increase of $56.1 million or 20.4% (an increase of 21.8% on a constant currency basis), compared to 2021 revenue. U.S. revenue increased 21.0% to $277.2 million. International revenue was $53.2 million, an increase of $8.0 million or 17.7% (an increase of 25.7% on a constant currency basis). Gross profit for 2022 was $245.9 million compared to $205.9 million for 2021, and gross margin decreased to 74.4% for 2022 compared to 75.0% for 2021.

Loss from operations for 2022 was $42.7 million, compared to income from operations of $55.2 million for 2021. Income from operations in 2021 includes a $184.8 million credit to operating expenses for the change in fair value of contingent consideration, offset partially by a $82.3 million intangible asset impairment charge for the IPR&D asset associated with the aMAZE™ trial. Basic and diluted net loss per share was $1.02 for 2022, compared to basic and diluted income per share of $1.11 and $1.09, respectively, for 2021.

Adjusted EBITDA was negative $2.2 million for 2022, compared to negative $8.8 million for 2021. The adjusted loss per share for 2022 was $1.02 compared to an adjusted loss per share of $1.16 for 2021.

2023 Financial Guidance

Full year 2023 revenue is projected to be approximately $380 million to $387 million, reflecting growth of approximately 15% to 17% over full year 2022. Full year 2023 adjusted EBITDA is expected to break even, with improvements annually thereafter. Full year 2023 adjusted loss per share is expected to be in the range of $1.14 to $1.19.

Conference Call

AtriCure will host a conference call at 4:30 p.m. Eastern Time on Tuesday, February 21, 2023, to discuss its fourth quarter 2022 and full year 2022 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® probe is 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 February 21, 2023. 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 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 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 (loss) income 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) income 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,

2022

 

2021

 

2022

 

2021

United States Revenue:

 

 

 

 

 

 

 

Open ablation

$

23,506

 

 

$

17,561

 

 

$

86,119

 

 

$

72,396

 

Minimally invasive ablation

 

9,707

 

 

 

11,303

 

 

 

38,553

 

 

 

39,380

 

Pain management

 

11,240

 

 

 

6,927

 

 

 

39,974

 

 

 

22,787

 

Total ablation

 

44,453

 

 

 

35,791

 

 

 

164,646

 

 

 

134,563

 

Appendage management

 

29,435

 

 

 

25,424

 

 

 

112,555

 

 

 

94,568

 

Total United States

 

73,888

 

 

 

61,215

 

 

 

277,201

 

 

 

229,131

 

International Revenue:

 

 

 

 

 

 

 

Open ablation

 

7,424

 

 

 

6,544

 

 

 

26,809

 

 

 

23,194

 

Minimally invasive ablation

 

1,737

 

 

 

1,711

 

 

 

5,986

 

 

 

6,409

 

Pain management

 

183

 

 

 

39

 

 

 

558

 

 

 

61

 

Total ablation

 

9,344

 

 

 

8,294

 

 

 

33,353

 

 

 

29,664

 

Appendage management

 

4,796

 

 

 

3,709

 

 

 

19,825

 

 

 

15,534

 

Total International

 

14,140

 

 

 

12,003

 

 

 

53,178

 

 

 

45,198

 

Total revenue

 

88,028

 

 

 

73,218

 

 

 

330,379

 

 

 

274,329

 

Cost of revenue

 

22,915

 

 

 

18,202

 

 

 

84,439

 

 

 

68,469

 

Gross profit

 

65,113

 

 

 

55,016

 

 

 

245,940

 

 

 

205,860

 

Operating expenses (benefit):

 

 

 

 

 

 

 

Research and development expenses

 

13,748

 

 

 

13,808

 

 

 

57,337

 

 

 

48,506

 

Selling, general and administrative expenses

 

55,501

 

 

 

53,710

 

 

 

231,272

 

 

 

204,649

 

Change in fair value of contingent consideration

 

—

 

 

 

—

 

 

 

—

 

 

 

(184,800

)

Intangible asset impairment

 

—

 

 

 

—

 

 

 

—

 

 

 

82,300

 

Total operating expenses

 

69,249

 

 

 

67,518

 

 

 

288,609

 

 

 

150,655

 

(Loss) income from operations

 

(4,136

)

 

 

(12,502

)

 

 

(42,669

)

 

 

55,205

 

Other income (expense), net

 

87

 

 

 

(1,186

)

 

 

(3,529

)

 

 

(4,818

)

(Loss) income before income tax expense

 

(4,049

)

 

 

(13,688

)

 

 

(46,198

)

 

 

50,387

 

Income tax expense

 

121

 

 

 

53

 

 

 

268

 

 

 

188

 

Net (loss) income

$

(4,170

)

 

$

(13,741

)

 

$

(46,466

)

 

$

50,199

 

Basic net (loss) income per share

$

(0.09

)

 

$

(0.30

)

 

$

(1.02

)

 

$

1.11

 

Diluted net (loss) income per share

$

(0.09

)

 

$

(0.30

)

 

$

(1.02

)

 

$

1.09

 

Weighted average shares used in computing net (loss) income per share:

 

 

 

 

 

 

 

Basic

 

45,912

 

 

 

45,331

 

 

 

45,740

 

 

 

45,066

 

Diluted

 

45,912

 

 

 

45,331

 

 

 

45,740

 

 

 

46,039

 

ATRICURE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands)

(Unaudited)

 

December 31, 2022

 

December 31, 2021

Assets

 

 

 

Current assets:

 

 

 

Cash, cash equivalents, and short-term investments

$

121,113

 

 

$

119,090

 

Accounts receivable, net

 

42,693

 

 

 

33,021

 

Inventories

 

45,931

 

 

 

38,964

 

Prepaid and other current assets

 

5,477

 

 

 

5,001

 

Total current assets

 

215,214

 

 

 

196,076

 

Long-term investments

 

51,509

 

 

 

104,338

 

Property and equipment, net

 

38,833

 

 

 

31,409

 

Operating lease right-of-use assets

 

3,787

 

 

 

4,761

 

Goodwill and intangible assets, net

 

274,120

 

 

 

277,773

 

Other noncurrent assets

 

1,985

 

 

 

955

 

Total assets

$

585,448

 

 

$

615,312

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued liabilities

$

52,920

 

 

$

54,689

 

Other current liabilities and current maturities of debt and leases

 

5,472

 

 

 

1,756

 

Total current liabilities

 

58,392

 

 

 

56,445

 

Long-term debt

 

56,834

 

 

 

59,741

 

Finance lease liabilities

 

9,147

 

 

 

10,082

 

Operating lease liabilities

 

3,095

 

 

 

4,068

 

Contingent consideration and other noncurrent liabilities

 

1,226

 

 

 

1,220

 

Total liabilities

 

128,694

 

 

 

131,556

 

Stockholders' equity:

 

 

 

Common stock

 

47

 

 

 

46

 

Additional paid-in capital

 

787,422

 

 

 

764,811

 

Accumulated other comprehensive loss

 

(4,096

)

 

 

(948

)

Accumulated deficit

 

(326,619

)

 

 

(280,153

)

Total stockholders' equity

 

456,754

 

 

 

483,756

 

Total liabilities and stockholders' equity

$

585,448

 

 

$

615,312

 

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 December 31,

 

Twelve Months Ended December 31,

2022

 

2021

 

2022

 

2021

Net (loss) income, as reported

$

(4,170

)

 

$

(13,741

)

 

$

(46,466

)

 

$

50,199

 

Income tax expense

 

121

 

 

 

53

 

 

 

268

 

 

 

188

 

Other income (expense), net

 

(87

)

 

 

1,186

 

 

 

3,529

 

 

 

4,818

 

Depreciation and amortization expense

 

2,919

 

 

 

2,833

 

 

 

11,710

 

 

 

10,441

 

Share-based compensation expense

 

7,197

 

 

 

7,539

 

 

 

28,771

 

 

 

28,078

 

Change in fair value of contingent consideration

 

—

 

 

 

—

 

 

 

—

 

 

 

(184,800

)

Intangible asset impairment

 

—

 

 

 

—

 

 

 

—

 

 

 

82,300

 

Non-GAAP adjusted income (loss) (adjusted EBITDA)

$

5,980

 

 

$

(2,130

)

 

$

(2,188

)

 

$

(8,776

)

Reconciliation of Non-GAAP Adjusted Loss Per Share

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

2022

 

2021

 

2022

 

2021

Net (loss) income, as reported

$

(4,170

)

 

$

(13,741

)

 

$

(46,466

)

 

$

50,199

 

Change in fair value of contingent consideration

 

—

 

 

 

—

 

 

 

—

 

 

 

(184,800

)

Intangible asset impairment

 

—

 

 

 

—

 

 

 

—

 

 

 

82,300

 

Non-GAAP adjusted net loss

$

(4,170

)

 

$

(13,741

)

 

$

(46,466

)

 

$

(52,301

)

Basic and diluted adjusted net loss per share

$

(0.09

)

 

$

(0.30

)

 

$

(1.02

)

 

$

(1.16

)

Weighted average shares used in computing adjusted net loss per share

 

 

 

 

 

 

 

Basic and diluted

 

45,912

 

 

 

45,331

 

 

 

45,740

 

 

 

45,066

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230221005687/en/

Angie Wirick AtriCure, Inc. Chief Financial Officer (513) 755-5334 awirick@atricure.com

Lynn Lewis or Marissa Bych Gilmartin Group Investor Relations (415) 937-5402 lynn@gilmartinir.com marissa@gilmartinir.com