0001323885False00013238852024-07-302024-07-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) of the
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 30, 2024
AtriCure, Inc.
(Exact name of registrant as specified in charter)
Delaware
000-51470
34-1940305
(State or other jurisdiction of
incorporation)
(Commission File Number)
(IRS Employer Identification No.)
7555 Innovation Way, Mason OH 45040
(Address of Principal Executive Offices, and Zip Code)
(513) 755-4100
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act: 
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $.001 par valueATRCNASDAQ Global Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02.    Results of Operations and Financial Condition.
On July 30, 2024, AtriCure, Inc. issued a press release regarding its financial results for the second quarter ended June 30, 2024. The Company will hold a conference call on July 30, 2024 at 4:30 p.m. Eastern Time to discuss the financial results. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
The information in Item 2.02 of Form 8-K and in the press release attached as Exhibit 99.1 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in each of Item 2.02 of this Form 8-K and Exhibit 99.1 shall not be incorporated by reference in any filing or other document under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing or document.
Item 9.01.    Financial Statements and Exhibits.
(d)Exhibits
No.Description
99.1
104Cover Page Interactive Data File--the cover page XBRL tags are embedded within the Inline XBRL document.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ATRICURE, INC.
Dated:July 30, 2024By:/s/ Angela L. Wirick
Angela L. Wirick
Chief Financial Officer


image_0a.jpg
Exhibit 99.1
For immediate release
July 30, 2024

AtriCure Reports Second Quarter 2024 Financial Results
•Worldwide revenue of $116.3 million – an increase of 15.2% year over year
•Positive cash flow generation of $8.1 million in second quarter 2024
MASON, Ohio, July 30, 2024 – 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 second quarter 2024 financial results.
“Our second quarter results reflect strong growth worldwide, underscored by our pain management and open AtriClip® franchises, as we continued to deliver exceptional patient outcomes across all therapies, while driving positive cash flow,” said Michael Carrel, President and Chief Executive Officer at AtriCure. “Entering the second half of 2024, we are advancing several clinical initiatives including our LeAAPS™ stroke reduction trial and introducing new products across our markets, with two cryoSPHERE® probes to reduce freeze times and the most advanced, smallest profile AtriClip® device. We also remain focused on improving the efficiency of our business.”
Second Quarter 2024 Financial Results
Revenue for the second quarter 2024 was $116.3 million, an increase of 15.2% over second quarter 2023 revenue (15.4% on a constant currency basis), reflecting continued adoption of our products by physicians globally and an acceleration in U.S. pain management and international franchises, as well as U.S. open appendage management which outpaced overall growth. On a sequential basis, worldwide revenue for the second quarter 2024 increased approximately 7% from the first quarter.
U.S. revenue was $95.5 million, an increase of $10.6 million or 12.5%, compared to the second quarter 2023. U.S. revenue growth was driven by sales across key product lines, highlighted by cryoSPHERE® probes for post-operative pain management, the AtriClip® Flex·V® device in appendage management, and the ENCOMPASS® clamp in open ablation. International revenue increased $4.7 million or 29.4% (30.4% on a constant currency basis) to $20.7 million, realizing significant growth across all franchises and most major geographic regions.
Gross profit for the second quarter 2024 was $86.8 million compared to $77.1 million for the second quarter 2023. Gross margin was 74.7% for the second quarter 2024, a decrease of 168 basis points from the second quarter 2023, reflecting less favorable geographic and product mix, as well as increased product costs compared to the prior year. Loss from operations for the second quarter 2024 was $7.2 million, compared to $4.1 million for the second quarter 2023. Basic and diluted net loss per share was $0.17 for the second quarter 2024, compared to $0.11 for the second quarter 2023.
Adjusted EBITDA for the second quarter 2024 is $7.8 million, a decrease of $0.2 million from second quarter of 2023. Adjusted loss per share for the second quarter 2024 was $0.17, compared to $0.12 for the second 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 $456 million to $461 million, reflecting growth of approximately 15% at the midpoint of the range. 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 $0.82.


Conference Call
AtriCure will host a conference call at 4:30 p.m. Eastern Time on Tuesday, July 30, 2024 to discuss second 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 July 30, 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.
CONTACTS:
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


ATRICURE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
United States Revenue:
Open ablation$30,760 $27,002 $60,060 $52,144 
Minimally invasive ablation11,828 11,370 24,146 21,007 
Pain management15,006 12,590 27,745 23,658 
Total ablation57,594 50,962 111,951 96,809 
Appendage management37,945 33,941 73,837 66,283 
Total United States95,539 84,903 185,788 163,092 
International Revenue:
Open ablation9,170 7,722 17,072 15,008 
Minimally invasive ablation1,764 1,375 3,878 3,242 
Pain management1,241 439 2,178 667 
Total ablation12,175 9,536 23,128 18,917 
Appendage management8,555 6,479 16,204 12,403 
Total International20,730 16,015 39,332 31,320 
Total revenue116,269 100,918 225,120 194,412 
Cost of revenue29,425 23,841 57,008 47,726 
Gross profit86,844 77,077 168,112 146,686 
Operating expenses:
Research and development expenses20,416 17,438 40,261 32,765 
Selling, general and administrative expenses73,596 63,783 145,936 123,847 
Total operating expenses94,012 81,221 186,197 156,612 
Loss from operations(7,168)(4,144)(18,085)(9,926)
Other expense, net(587)(881)(2,756)(1,497)
Loss before income tax expense(7,755)(5,025)(20,841)(11,423)
Income tax expense253 93 436 171 
Net loss$(8,008)$(5,118)$(21,277)$(11,594)
Basic and diluted net loss per share$(0.17)$(0.11)$(0.45)$(0.25)
Weighted average shares used in computing net loss per share:
Basic and diluted46,909 46,266 46,814 46,187 


ATRICURE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
June 30,
2024		December 31,
2023
Assets
Current assets:
Cash, cash equivalents, and short-term investments$114,020 $137,285 
Accounts receivable, net55,568 52,501 
Inventories73,654 67,897 
Prepaid and other current assets9,610 8,563 
Total current assets252,852 266,246 
Property and equipment, net42,175 42,435 
Operating lease right-of-use assets4,030 4,324 
Goodwill and intangible assets, net295,019 298,767 
Other noncurrent assets3,197 2,160 
Total Assets$597,273 $613,932 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities$58,684 $72,036 
Current lease liabilities
2,541 2,533 
Total current liabilities61,225 74,569 
Long-term debt61,865 60,593 
Finance and operating lease liabilities10,910 11,368 
Other noncurrent liabilities1,188 1,234 
Total Liabilities135,188 147,764 
Stockholders' Equity:
Common stock49 48 
Additional paid-in capital840,939 824,170 
Accumulated other comprehensive loss(569)(993)
Accumulated deficit(378,334)(357,057)
Total Stockholders' Equity462,085 466,168 
Total Liabilities and Stockholders' Equity$597,273 $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
June 30,		Six Months Ended
June 30,
2024202320242023
Net loss, as reported$(8,008)$(5,118)$(21,277)$(11,594)
Income tax expense253 93 436 171 
Other expense, net587 881 2,756 1,497 
Depreciation and amortization expense4,527 3,580 8,979 6,523 
Share-based compensation expense10,391 8,995 19,656 17,755 
Gain from legal settlements
— (412)— (4,412)
Non-GAAP adjusted income (adjusted EBITDA)$7,750 $8,019 $10,550 $9,940 
Reconciliation of Non-GAAP Adjusted Loss Per Share
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Net loss, as reported$(8,008)$(5,118)$(21,277)$(11,594)
Loss on debt extinguishment— — 1,362 — 
Gain from legal settlements
— (412)— (4,412)
Non-GAAP adjusted net loss$(8,008)$(5,530)$(19,915)$(16,006)
Basic and diluted adjusted net loss per share$(0.17)$(0.12)$(0.43)$(0.35)
Weighted average shares used in computing adjusted net loss per share
Basic and diluted46,909 46,266 46,814 46,187 


v3.24.2
Cover
Jul. 30, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 30, 2024
Entity Registrant Name AtriCure, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 000-51470
Entity Tax Identification Number 34-1940305
Entity Address, Address Line One 7555 Innovation Way
Entity Address, City or Town Mason
Entity Address, State or Province OH
Entity Address, Postal Zip Code 45040
City Area Code 513
Local Phone Number 755-4100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $.001 par value
Trading Symbol ATRC
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Central Index Key 0001323885
Amendment Flag false
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