ATRC AtriCure Inc

• Fourth Quarter 2023 Worldwide revenue of $106.5 million – an increase of 21.0% year over year
• Full Year 2023 Worldwide revenue of $399.2 million – an increase of 20.8% year over year
• Full Year 2023 U.S. revenue of $333.5 million – an increase of 20.3% year over year
• Full Year 2023 International revenue of $65.7 million – an increase of 23.5% year over year
• Full Year 2023 Net loss of $30.4 million – an improvement of $16.0 million year over year
• Full Year 2023 Positive adjusted EBITDA of $19.4 million – an improvement of $21.6 million year over year
• Over one million patients treated life to date

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 2023 and full year 2023 financial results.

“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 $106.5 million, an increase of 21.0% (an increase of 20.5% on a constant currency basis) over fourth quarter 2022 revenue. U.S. revenue was $88.8 million, an increase of $14.9 million or 20.1%, compared to fourth quarter 2022 revenue. U.S. revenue reflected strong growth across franchises, driven by sales of our EPi-Sense® Systems for Hybrid AF™ Therapy procedures, AtriClip® Flex⋅V® devices, ENCOMPASS® clamp and cryoSPHERE® probe. International revenue increased $3.6 million or 25.8% (an increase of 22.1% on a constant currency basis) to $17.8 million, reflecting growth across all franchises and major geographic regions. On a sequential basis, worldwide revenue for the fourth quarter 2023 increased approximately 8.4% over third quarter 2023.

Gross profit for the fourth quarter 2023 was $79.8 million compared to $65.1 million for the fourth quarter 2022. Gross margin was 74.9% and 74.0% for the fourth quarters 2023 and 2022, showing improvement of 94 basis points. Loss from operations for the fourth quarter 2023 was $8.7 million, compared to $4.1 million for the fourth quarter 2022, driven by investments in clinical trials and product development initiatives outpacing revenue growth. Basic and diluted net loss per share was $0.21 for the fourth quarter 2023, compared to $0.09 for the fourth quarter 2022.

Adjusted EBITDA was positive for the fourth quarter 2023 at $4.8 million, compared to positive $6.0 million for fourth quarter of 2022. Adjusted loss per share for the fourth quarter 2023 was $0.21 compared to $0.09 for the fourth quarter 2022.

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 $399.2 million, an increase of $68.9 million or 20.8% (an increase of 20.6% on a constant currency basis), compared to 2022 revenue. Revenue growth resulted from deepening market penetration globally and expanding physician adoption of our products across franchises. U.S. revenue increased 20.3% to $333.5 million. International revenue was $65.7 million, an increase of $12.5 million or 23.5% (an increase of 22.1% on a constant currency basis). Gross profit for 2023 was $300.4 million compared to $245.9 million for 2022, and gross margin increased to 75.2% for 2023 compared to 74.4% for 2022.

Loss from operations for 2023 was $26.7 million, compared to $42.7 million for 2022, reflecting strong revenue growth, cost efficiencies and improving operating leverage while expanding research and development investments. Basic and diluted net loss per share was $0.66 for 2023, compared to $1.02 for 2022.

Adjusted EBITDA was positive $19.4 million for 2023, compared to negative $2.2 million for 2022. The adjusted loss per share for 2023 was $0.75 compared to an adjusted loss per share of $1.02 for 2022.

2024 Financial Guidance

Full year 2024 revenue is projected to be approximately $459 million to $466 million, reflecting growth of approximately 15% to 17% over full year 2023. Full year 2024 adjusted EBITDA is expected to be approximately $26 million to $29 million, with improvements annually thereafter. Full year 2024 adjusted EBITDA represents an approximately 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 $0.82.

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 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 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 United States

 

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, 2023

 

December 31, 2022

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 December 31,

 

Twelve Months Ended December 31,

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 December 31,

 

Twelve Months Ended December 31,

 

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