ATRC - Earnings call transcript Q4 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to AtriCure’s Fourth Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode.

We will be facilitating a question-and-answer session toward the end of today’s call.

As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Lynn Lewis from Gilmartin Group for a few introductory comments.

Lynn Lewis

you. Thank should copy you press the received release. have now, of a earnings By

not please a have you received If have copy, to one you. call e-mailed to XXX-XXX-XXXX

remarks remind Before that let begin statements. me we the today, company’s include forward-looking you

publicly from and no SEC Forward-looking which any many may filings. update risks uncertainties AtriCure’s are statements to obligation time materially including of described control, results uncertainties, from numerous those AtriCure’s time statements. are undertakes to and subject to projected. risks AtriCure beyond in forward-looking differ AtriCure’s

Additionally, our to a directly share. most financial refer over website. adjusted adjusted non-GAAP the we non-GAAP that, to revenue measures turn Mike financial Mike? the per reported constant Executive EBITDA like to measures, on A loss With included and comparable these with press specifically, reconciliation GAAP release, of on currency is I’d basis call President our measures Officer. in and Carrel, and Chief which available is

Mike Carrel

everyone. for Thanks, Lynn. Good us afternoon you and joining thank

We creating AtriClip year. achieved XXX,XXX flexibility. devices building atrial are We and in and IDE professionals of over growth. quarter pain healthcare revenue completed performance pleased surpassed XXXX. XXXX accomplishments strong consistent We track worldwide, device, foundation sold, trial, FLEX and launched was a fourth established continue in team CONVERGE our we raised XXX financial enrollment fib with our over sheet strengthening balance milestones the and record V also management and dedicated our a $XX million, many the throughout XXXX, trained results

we that can in teams to of a entire robust million. innovation the believe performance the with the leverageable efficiently training and scale. announced, more of year, programs $XXX and our million revenue range cornerstones success. as and We than we education, are our science $XXX We as so XXX by With previously field, team our full in reflected to maturing the infrastructure expect organization, across year is of in as this education a our our commitment clinical XXXX maturation this underpinned people

Now quarter highlighted approximately turning $XX and the million, to XX% performance. US of fourth growth was This revenue revenue Total was of reflecting XXXX over of QX the growth last fourth our million XXXX. $XX by quarter fourth of year. to for of XX% quarter of

Our the top line the products. by management sales strong. appendage. management conditions ablation Within franchise, the manage appendage remains opportunity strong other performance we that our need appendage was are to we our across Surgeons driven believe continued and increasingly recognizing and signs market are seeing key

consistently work AtriClip effectively for they Our surgeons. as work products many becoming the go-to-choice

steady We this innovative on approach are clinical in franchise also products meet to needs. receiving to advancing our positive feedback

dynamics Our market is potential. platform approach in its confidence this evolving in collectively and driving conjunction with our

open FLEX V enabling procedures. procedures the AtriClip, everything more seeing are being used in We convergent seeing to CABG from cases in device greater uptake

As originally thought be rate less the X%. in convergent we a than attachment reminder, AtriClip will

– However, is we currently XX%. it currently believe we over are

surgical driving data adoption. Evolving ablation, the driving behavior. an do courses were in is XXXX, making live for it Patients our and and open guidelines Throughout with and full we our to that increasing platform. and fact longer are XXXX. better expect demand clinical Turning This training is simple. emerging steady changing impact, same

Afib effectiveness The with cardiac effectiveness and/or United surgery system persistent XX undergoing Ablation persistent is ICE-AFIB will are to our procedure. at evaluated Afib, clinical heart three during XX replacement and and ICE-AFIB procedures United atrial seconds patients procedures. investing repair as freedom of atrial States of patients cryoICE XXX of defined in unique XXX are evidence the the up Long-term and/or to in be up the months at long-standing trial be tachycardia concomitant and treatment was procedure. centers as procedures note, sites after cardiac convergent valve on trial systematic evaluated have pleased year. enrolling prospective, had multicenter, for We the for a in Primary for atrial persistent at announce flutter or we evidence, will heart now to business, than clinical QX. is fibrillation lasting generate the Within trial. to the performance greater effectiveness patients solid years surgery. cryosurgery that our this we safety will ICE-AFIB surgery. evaluate ICE-AFIB the single-arm persistent developing XX in States. On atrial the treatment of to effectiveness the long-standing February first up than the the XXX and patient study MIS done undergoing safety trial opportunity to part As structural in from and – the we post More commitment in coronary enrolled fibrillation concomitant of bypass of clinical view

performed the of procedure is multi-disciplinary in of a by close the is catheter first The upper by catheter convergent ablation complemented the reminder, a who electrophysiologist. an an its kind evaluating IDE a patients CONVERGE most As against the therapy by is surgeon, endocardial chest serious performed cardioablation which for suffer Afib. forms convergent a from approach trial

we trial reminder, in completed the enrollment IDE a August CONVERGE in As XXXX.

patient one-year half the AtriCure of in for milestone second Afib approach. for of AtriClip EPi-Sense we followed using the XXXX, persistent the the pre-market completion submission next of will follow-up, expect approval EPi-Sense system FDA the – to of be convergent by treatment for which Our a

the FDA disclose meeting process. We of the PMA part in from expect as panel in of support trial XXXX anticipated our to a be in to position data

lung very strategies, the opioid One probe real abuse. the We the to for approval recent to established to post-operative also epidemic. nerve remarkable addiction patient thoracic The FDA users. also provides trial as to announce updates have we trial by several pain transmitting temporarily alternative has pleased probe patients fourth cryoSPHERE pain We announced the nerves, launch the The States. become therapy, the forward AF been postoperatively the part are quarter CryoSPHERE reduce expand regenerates. United the are year, for satisfaction. solution cryo has or a from of first XX markets. that pain for their blocking and for as dedicated The nerve in than performed cases recovery advances the additional to to include and from study post-operative to need platform the surgeons reduce the key that Switching block look recently noting persistent showed team Probe nerves a XX surgery and in therapy to cryoSPHERE clinical and Last approaches with in typically cryoSPHERE support the long-term XX% times, undergoing The invasive cancer a XXXX. we select peripheral of have pain offering CryoICE to cryoICE DEEP management More potential device the throughout the ablating cardiothoracic of Because patients. in of therapy small surgery. and blocking We solely unique undergoing dedicated patients believe that are combating risk the potential of another received thereby gears trial is minimally months deep nerve use in signals. with providing cryo narcotic of during management. opioid IDE nerve cryo the block NB levels adopting contribute which block block therapy our the the AF an improvement physicians we to cryo time nature cryoSPHERE lasts probe probe, the pain

of in we the our therapy. forward are franchise, There complete these evidence are are are seeing We support to in will the launch with XXXX, other cryoSPHERE we FROST the Further, track clinicians And we also team probe. in studies impact early as to of future. in this expand independent efforts. of being for the enrollment this commercial this novel committed who done study on clinical by near developing move

Looking Internationally, product to were our constant are the opportunities deliver entire the excited portfolio for X%, revenues to benefits our innovation we up to quarter. are across about ahead and XXXX worldwide. patients fourth and in committed continuing currency beyond,

Our in a order solid we not impacted saw fourth year, device overall In quarter we the Europe, United outside the did by the in of XX% growth with China throughout sales top quarter. taken was line in EPi-Sense culminating fourth the States progress rate from the region. the steady of fact the that growth across

In the we platforms into Asia, encouraged team We to XXXX XXXX. to market. the are by this expect which European AtriClip and in experience forward transfer with the we look maintaining maturity established both Japan, and the strength in the cryoICE momentum in very to continue cohesion of and

continuing is new biopharmaceutical Our several to board. progress partnership China sub-distributors with with on group in

US both providers XXX and education. training of in to more and Europe, conducted finally than training record worldwide. sessions XXXX, our the number and training professionals a Turning investments In we in healthcare

feedback. our we Afib target year, exceeding we to Maze the for also XXth positive at year. labs were IV courses expectations than the the received surgery trained, enable and experiences. the January International our XXX more Boston, these Through During cardiothoracic courses, overwhelmingly hands-on In increased XXXX, Annual significantly symposium at fellows cadaver in

received also course ablation advanced Society from learned has Thoracic our endorsement Surgeons. that the We of

call that, extends societies, support lives. to over Andy to these awareness, the now Financial and getting access Wade, at from end. more Chief confident leading turn will education are from patients will with I we’ll their lead Officer, comments the that and for care turn We With institutions medical coupled our to and improves

Andy Wade

Mike. Thanks,

On in ablation sales particularly Revenue by For XXXX. in from results robust system. by Cryoablation from increase from increased a driven AtriCure the both million to management worldwide driven the the growth V product on the of $XX.X products ablation million, used very the fourth from to AtriClip of ablation MIS XXXX, on quarter strong China, was to for $XX.X appendage partner. XXXX up fourth XXXX. XX.X% were procedures million an EPi-Sense $XX.X in on million million, million. constant XX% US results fourth increased as the devices representing especially up quarter the as US of invasive from and a totaled of currency compared performance chest volume approximately distributor constant of was open fourth The – platforms, XX.X%, currency were quarter with product new open procedures the to the of during Growth to $X.X AtriClip for revenue procedures. a open of XX.X%. related AtriClip basis $X.X for a we fourth used US, XX.X% pleased compared to revenue quarter transition to of chest a increased platform. International continue quarter US the XXXX, by no basis $XX.X products we an across as worldwide and products, minimally GAAP GAAP were X.X% FLEX.V basis, million, revenue of revenue million, $X sales reflect sales down all of be X.X% number XX.X%. open in quarter Revenue the to of distribution increase $XX.X increasing basis products strong fourth the of our continue a quarter

loss of portion driven in lines product small our QX Gross of was represented primary In our sales compared of to quarter with XXXX. In have the for throughout the expect . saw Europe, the fourth the to was positive quarter, quarter remain quarter continues as than geographic incrementally platform fourth of rest XXXX pattern fourth of with improvement the higher of of across margin more markets favorability by a had strong in XXXX. adjusted China change sold quarter a in by for We distributor EBITDA driver normal the Germany, of the approximately in of AtriClip we steady $XXX,XXX our XX% a adjusted driven fourth order for US and worldwide XXXX V the from several The larger a EBITDA growth $XXX,XXX being mix. and to sales we business, XXXX. XXXX. UK, of XX% larger ASP. geographies overall the both the percentage throughout fourth Pricing international compared

Our was the million. compared for loss operating the to loss for quarter million operating XXXX of fourth the of $X.X $X.X quarter

to $X.XX Our expenses of liability. XXXX the share for loss related million non-cash was per credit fourth the of to recorded quarter $X.XX loss fourth the this QX an change share $X.X in per in for compared Note contingent to that XXXX. operating was consideration quarter XXXX

of to $X.X $X.XX an per related compared Note adjustments of Research non-cash million to Operating was or of investment in from worldwide, to quarter a exclude share adjustments share-based partially and these and million For per the from QX, $X.X efforts with for credits fourth driven and and costs XXXX, quarter an to also fourth we $XX.X $X.X of increase recorded in approximately of organization impact operating credit legal trials, in regulatory this both approximately include sales, this offsetting the to related increase the results XXXX XXXX marketing the The of XXXX or million for was The non-cash a $X.X the increase. commercial of for adjusted quarter costs non-cash loss increased increase continued quarter previously of adjusted to expenses, $XXX,XXX for were share expenses described, the clinical to our $XX.X and XXXX. expenses, primarily million increased to offset $X.XX XXXX the activities, XXXX. excluding fourth XX% reduction costs consideration personnel-related million adjustments adjusted SG&A the liability. Without XX% EBITDA total from contingent increase sales. of of development the for by activities. quarter liability. for spending and liability. results XXXX that fourth fourth million quarter XXXX development of some $XX.X training loss for the consideration this which quarter with the expenses, the our clinical from lower non-cash fourth XXXX the excluding of of compensation contingent million for non-cash an fourth related

XX.X% $XXX.X or For the growth over million million, of increase worldwide XX.X%. XXXX, revenue On currency was basis, $XX.X XXXX. full an constant a was year

grew basis procedures by in increased grew chest offset open and ablation $XX.X of used other to driven to sales lower to US driven of from to sales MIS US, $XX.X revenue grew revenue $XX.X US XXXX for minimally appendage sales transition. on distributor X.X% balancing by the strong to Gross AtriClip $XXX.X XX.X% to compared was For XX.X% products. a Loss International China to for ablation European per both X.X% to for million. products. performance US open was million, XX% GAAP weaker million. XXXX million. a products $X.XX $XX.X compared and in XXXX increased EBITDA invasive EPi-Sense loss from for products Asia, million products, by grew XXXX. or $X.X XX% margin on for $X.X currency driven $X.XX adjusted million was XXXX revenue sales but by X.X% the basis constant slightly strong million, XXXX. share XXXX XXXX for XX.X% the MIS compared management for growth of results was of

share and Our adjusted contingent adjustments the liability. year adjusted loss $X.XX million We and XXXX exclude cash equivalents XXXX related Without and loss ended EBITDA both to loss adjustments, for is these $XXX the share the non-cash approximately adjusted XXXX $X.XX. XXXX investments. non-cash per is consideration with cash, in per the

we credit of facility also In cost Silicon in proceeds, debt. offering Valley addition Bank, overall approximately netted October amended in recently with we million to $XX our completed reducing the that that our

to expire with filing, current shelf is as with planning are concurrent set June year. of shelf our our registration in an this updated XX-K SEC to We the file

improvement progress we be the we and goal approximately are changes a XX% both We for top-line approximately XX% $XXX year-over-year as will be by Lastly, efforts. million approximately anticipate anticipate revenues million XX% worldwide to We to guidance toward XX% cost for X% margin basis. margin. on year, of of growth control XXXX. to providing long-term gross mix of or GAAP gross our The $XXX to driven

ICE-AFIB science sales. along include activity expenses R&D and this of development. XX% with pipeline the trials, in Investment AF clinical new to DEEP and expect developing R&D IDE area to be We XX%

of XX% and driven sales administrative well to thoughtful XXXX. continued in education worldwide again training SG&A We expansion The in by in expense areas. increase XX% expect be expenses approximately the general to SG&A team in sales increasing with investments as is our and leverage as of

between EBITDA be a with adjusted expect adjusted the loss of We This $X reported to improving positive and per for from into EBITDA the share million, XXXX. $X.XX $X $X.XX. XXXX loss range translates for to

like for of be an a EBITDA million expect to the and we the and will expenses reported approximately XXXX Therefore, for Mike the translates EBITDA share we XXXX the years EBITDA progresses. this million. to expect earlier range for closing year quarter adjusted As quarterly EBITDA in to positive, in typically we to the in back while prior, loss anticipate adjusted comments. of full results call as to point, heavy loss deliver to the positive This experience $X adjusted improve adjusted year would I quarter we adjusted EBITDA Again, full-year of loss $X in first year $X.XX. we for to XXXX XXXX. the expect generate first At $X.XX turn per of

Mike Carrel

our Thank strong. remains we you, In closing, Andy. that outlook fundamentals remain confident and business

our pleased performance extremely our record of growth. We’re sustained double-digit with top-line quarter fourth track and

mission, Looking on we pillars continue the critical three clinical to ahead which our education, innovation. to focus and science are in XXXX,

have We positions long fosters that mindset created and strong well and culture for a the a patient-first us term. foundation

We are the made and globally set improving Operator? deeply of that, next decade. over us that the With patients committed our to questions. steadfast to efforts remain up confident Afib in open we’ve growth are we’ll strong for now and investments lives the up

Operator

Instructions] [Operator Stifel. Rick question first Our from Wise comes with

Drew Ranieri

get – for X% that the Can range? Hi us initial lower little was on the of maybe takes year? maybe about assumptions of end guys. you tonight. It’s with and us just just than the first, your Rick for Drew thanks higher to wider XX%. talk start help bit last there It’s Can a But to But the guidance question. some the your guidance. I and to taking puts Ranieri just on just you for

Andy Wade

path and a the both Drew, about right MIS to States. on really about year. for stands the anticipate now right clip Europe come momentum and it there’s strong obviously is the feel great remain open will and back and as The mean clip the in now We the do a as overall well say, we business good anticipate I talked in good United strong nothing are solid ablation Yes. business, before. as way specific China we’ve we will

feel So, not really guidance. with we much that I the wider. It’s mean overall confident

last I a percentage similar differential pretty think it’s and close year. from

of our kind with aligned gave pretty we’re think I the last we way year. So, guidance

Drew Ranieri

it. the it was, fourth China quantify order any Got can there – is on that quarter absence the then for of that? just the And way you

Mike Carrel

quite not Yes, number. it’s to overall because of frankly international really our the did have an that impact international XX% represents growth It material the obviously rate, business. only on

So, we per specifics how that, we se, good – position job a is feel country, doing give and it there do the strong impact we’re really a did we’re in about together. feel XXXX great on to like not long-term. really is by going have but don’t we but Baheal come

Drew Ranieri

Got on ablation it then and MIS just business. the US

XXXX? had I Mike. But you that of market You for franchise the bounce kind CONVERGE understand XXXX, and quarter. your nice degree are in DEEP. to hampered fourth since focused what’s you’re in What you. back or go out MIS ahead can playbook in of on commercially the data some a the Thank CONVERGE in you

Mike Carrel

in education for for got a and I STS we as we’ve IV Maze CONVERGE getting talked aware, just how clinical got program. ready you the call the today number are It’s for getting is team in things XXXX is robust The really, endorsement. about the one, focus world-class.

done Our a job. just team has wonderful

right robust way PMA want begin now are we go roll that can safe get ready are make ourselves that that a we prepared to That’s the out to Once not effective really and we’re we and more more making plan. sure with as there. robust that everything term ready doing in get now a to have long aggressive at to the sure to focus time. as and if procedure We

Drew Ranieri

much. so Thanks

Operator

with Canaccord from Genuity. question next Our comes Mills Jason

Jason Mills

the and Andy. for Thanks taking question. Mike Hi,

me road, you on am hear the noise. OK? background I about Now, sorry the Can

Mike Carrel

you’re Yes, Thanks, Jay. good.

Jason Mills

Great, thanks.

In easier So XXXX, market you’re comp part of distant back. ask you just going of to OUS. a of a kind XXXX, small coming maybe broader have bit question, business little we’ll The your bit about Mike. have little more target

The So relative about us assumptions some I’m range. faster in terms as guidance, overall US, I’m wondering to me is about see I that your growing growth of like cautious you then have if a thinking in you think or seems And could to you’ve guidance qualitatively management wrong. I basis, appendage that OUS than range, range the this rates grow it label. it that the until that been respect slower a MIS, within in that range the growing you think an tell you’ve growth faster on with give given

the the that think it the lower a the is I’m I’m mid-to-high little be open. end lower about of of source and part perhaps within revenue if of opportunity if single in me maybe suppose at to digits the that management thinking but range wondering and pain my about – and pain would what So management pain upside management the end range open. recorded going be correct on the then we – is of is I lower for wrong, not for a question second incremental –

So get sorry can think there, I all in them questions but just. about the you

Mike Carrel

lot there. in a is packed There

one the getting with here. So I’ll first road down things the start

takes in OUS US both on to anticipate at be all sides that will will of different the across it range. and that OUS of within range. that do the for be consistent We on around side the So I rate, terms growth X% when the we companies be blend the will XX% and puts things. growth mean, you and anticipate various rates the both that

I So kind that’s how that. articulate of would

on that for things to that the I continue year. primary is our our side franchise. fastest-growing our – mean that you will anticipate XXXX that We are franchise fastest-growing As US, clip at the you look correct the be of in

for other the be the As year. at it, look we’ll we pieces solid ablation of think I

management look bit as be. I the overall basis, on but course side, it It’s more You MIS will reasonably I MIS and a a own volatile little the over about a mentioned have this whole pain think we talk right, pain think year, you’re And on don’t it then of when you at quarterly could we their time. the in be consistent. management, open ton

a of as It’s opportunity the part build begin about the rollout, there. year, back We’ve opportunity. excited to just product. maybe we place the XXXX rolled That’s We’re got big out new things now. the this really out to team team we as the in go beginning year, the

the that up the half ramping should through third the I sure quarter think revenue of in the first one on team we around probably last actually about this we’re revenue through how of that bucket, this in asked come the out year, we’ll We’re sure impact whether in to basis, And an going thing for be a but or external year of still you on that going terms that’s other it’s impact working XXXX talk have but and anticipate in where going in on we of fall to next ton then us. was an for the – make it’s open reporting call. to the in

Jason Mills

the big continuing was for large in the I’m penetration TAM fairly largest part hopefully even opportunity CONVERGE love expect color rates in Thank management or by because being attachment on management is surprised, on much. the as TAM. appendage and this MIS. strong me talked about you you in thinking the to you rate rate level, see run. and is growth the it you rate And after its data some see into CONVERGE, attachment the moderate – stay a XXXX, to great management well term, the Okay. MIS, And as today XXXX the if Do as MIS you’ve for quarter. at you’re good if pleasantly of attachment time, low Longer appendage about incorrectly. attachment – builds but be are this appendage a there, if guessing business the And your your I to Congrats am get I Mike, over more thoughts struck tell you stands XXXX, the very

Mike Carrel

data quick performer you’re asking clip question I anticipate strong attachment so for you. continued us, that rate Thank helping more and has I our do more the will incredibly strong that be only incredibly the continue appendage be appendage. to managing it mean, and that – is works works grow the for data off real clip out. think that know well obviously and about franchise. the at a product is coming We an and the and to There closing positive that’s around we do

And we look future types looking a so from – as as into standpoint and for other clip of advantages the years. well labeling the with we’re

we’re opportunity. So clip excited about the

people continued area, during You’re of absolutely grow year, V innovation, this a clips, a And is products correct we’ve is innovate new innovation easier their driven do, but it use that’s this single bringing to better the to on for to is made of more growth able really really to and and to our but more that the consistent that do only our what manage. It’s top that really basis every much to be base to surgeons that dedicated handle tough this lot we that really other regular we’re and we what talk exactly dividends On anticipate not is into – that, paying know focus about attachment which continue well, really out as that dollar XXXX for us. amount day procedures. to related into is we XXXX.

Operator

with Needham you. next Company. Matson question our from Mike Thank & comes And

Mike Matson

give on expect that remember that, contribute as just guess versions I number, timing if my taking of Hi. V don’t the the but mix want know to start just favorable newer exact don’t a penetration those there, to you us the about to Thanks of business? questions. ask do to lap to for I continue I I you AtriClips. launches you but And in

Mike Carrel

to we – conversion more that And side that two perfectly it, that sides great we was MIS is the V, The which attachment a both for of the originally, do was first see of the sure. Pro procedure things, and on procedures. one both On types of for see the question. more different one we launched

So gain through taking as for preferred people most undergoing convergent the Pro it V transverse mini get method they the the smaller spaces. valve we grows got the surgery is and a is mitrals, are are is ones, mitral see are through that On and we whey sinus as of top the another that that patients tight where also to path. attachment, of down kind much really it’s side and goes route that V from profile those doing other preferred just easier right because area the that over

kind So that’s new easy top that, so to of got an that getting board is just FLEX On that. It’s surgeons on use. product V, really the on to automatic of relative the had cut on a ergonomically It’s it basically release put where simpler, also much on you the clip pressure the as lot of doesn’t made sutures. it’s before to hand. –

weren’t that are and a or into are clip just of to going use difficult was the lot to area, CABG it seeing more that we’re them people patients. into before, wanting cozy because willing So basically use, getting now

big us for So and term. that to we future foreseeable will long that contributor anticipate continue to the as well grow be a

Andy Wade

carry of market prices that can is on kind the just answer months the from the being XX being the of, on mix the, benefit So products on I product market. higher beyond you’re guess getting first the products short on the – those

Mike Carrel

based. I frankly I growth our the there’s we volume-based... mean price. little volume of have most is mean And in But a a quite mix

Mike Matson

Okay. Alright.

Mike Carrel

product, Yes, or of using the people quite getting the liking I they results, mean, procedures. anything than other But thing product. more product, new that are costs we’re the more happy with a that frankly, there is the old it’s wonderful, saw procedures. old that used not still else. are use to them it’s So with they’re because They’re that happy taking the necessarily product wonderful We out, still because it. into

is so And it, then go the that we’re we long continue to for – before. has price kind cases – new really it’s didn’t the really a and just to volume a get up portion of small getting of time,

Mike Matson

Yes.

a was comment the data panel about Okay, advance And there in XXXX. being a got then in made it. released of CONVERGE

going now not best is in definitely does So timing. for XXXX it right or guess to just that we’re see that’s that where mean your

Mike Carrel

through – I I’ll I don’t timeline. you’ll mean just see imagine, walk

I this. this for complete clarity pretty think is just good it sure timeline of on a make helpful to

pass So is be be or within of end August, to last then before treated. the to at we FDA. in time August FDA. data We be get compile of and days might to We’ll dates then all to or the give sometime ready September don’t panel, really get quarter to the the that of we or early treated panel go go of going the fourth to the patient the two last XXXX. follow-up either patient be you’ll and Therefore, will so we’ll if say after, was and that patient XX the treated go or both have of approval, to XXst There’s the to you approval. take,

day have data that’s we’re the then it to – done If presenting of basically that to they’ve of the typically you’re going you front, the obviously release and you panel you the will in and space. how go panel to results on

approved in do paroxysmal, you other technologies to anticipate of consistent the end year And line the sometime so of the all anticipate will is to XXXX, again, data for information not this for were at the this wants look in FDA. estimated, sure will how is we’re how with we data compiling the exactly sake that at. is, be the but that’s what I that release to be make send we If they that FDA the to all and catheter-based with look

Mike Matson

wanted Okay, probe more there of maybe together about that. the launch you bit put and thanks. that the And then talk if team cryoSPHERE the a little size see could to just you’ve finally

Thanks. reps to that. planning If many How you you’re to year? this add disclose want

Mike Carrel

Yes.

So, we’ve sales than probe had We that last all or also that sure built the up professional that anticipate we’re at out we – four probe spaces. We which And block year with getting – last small cases to team. larger and the make team have year. into with as extending CryoSPHERE probe. are going reps least over this doubling those nerve year the potential we covering X.X weeks last the that is our The ago rolled announced. existing team we the year. Obviously, team cryo

focused data getting build market. going we’re to and data the in to so invest really thoracic and that more team commercially, And on clinical out continue is team clinical that

for it’s year up excited two, our good beginning going results kind this the kind it’s again and have running great to getting really pretty financials. And and of on but think it, going, of to it patient have so that some number we’re of should about think number results we going take but and we’re long-term part sure make do launch we one to

Mike Matson

right. Thank you. All

Operator

with from next Jaffray. Our question O’Brien Matt Piper comes

Kevin Farshchi

any help on next there of My year, on it look Andy, think bit on you that into adjusted at and question waiting at today. and there is Thank do currently Is the kind out little then rate time. XXXX. going your Mike just comp look as or you slowdown a as anything XXXX. specific for for but going dynamic of Hi, think for if out some the some as you are MIS clinicians kind Matt point I then numbers, to decelerated growth us the side, for anticipate I and this into of plays through Kevin a on-label, first the of is basis a

Mike Carrel

mean, I we earlier. about talked Yes, as

clear today label of First trying products on and really to our all ablation. cardiac make for it are

on more us about. we’re programs, talked what that’s get and to training of doing cetera So that’s et a the used going aggressive allows label being label some really for What in today. more we is advanced we’re

of the FDA, So kind go when that’s we data what cetera. really et is to help this to going provide

– it things will the the full because we we range specifics the what we’ve will not anticipate and drive of go clip a category MIS about with rates with reasons. rates that. not in were to little going that to but the relates overall like on to by it’s that upside open growth the have for X% be talked and on growth volatile kind What do the rates, able the consistent to the business throttle business XX%, we’re of overall is, different growth give the the we we’re on gave it obvious but side, for we before anticipate to As more that bit

Kevin Farshchi

this still most just walk asked, business that do deal and question but thank that the but I about the for a you is, of that how that directionally, you through you terms Is company low-risk think been CABG, you that. and helpful the all? is it us about think volumes, how at because think last don’t upcoming have kind in of if think of Okay, in about i.e., big you’re that aortic of My data. mine something so surgical the with TAVR side that and you do under-penetrated on

Mike Carrel

that to surgical I that we about they I have obviously basically operating about are go going where patients procedures the think AVRs so be figure – mean course than the mean we Still the quite but different less treated. to of across have that patients board. a have the to all obviously, the Afib, big thinking getting or Because out, we’re it. and into have patients they so have seven as frankly, table not XX% that area, markets are we’re on are under-penetrated of

that Afib, should the result a shown as surgery AVRs big frankly of are Afib, you more you should even Patients have is actually Like five, Afib get number CABG Quite get news getting and continue patients going go the is XX% is AVR you attachment. kind and ago and opportunity. treated and so of path education considerably our training down for have that to and sent it’s and big we six been years greater us. to if we’re said, the that from up closer when more good a so greater are number with work opportunity to to of that. was anticipate that that Now to programs

so And TAVRs institution. That’s the they’ve over got side in treated are being for the the case getting not things. they’re going again lot the a of typically TAVR pushed that Afib, if patients of in to not every and the

do Sometimes, Afib later we’ll follow-up on. procedures

still look talked under-penetrated that it and think we there lots our the that got next a years here. for so of growth way And open underpenetration side about it’s is We opportunity huge business. is of the We’ve we issue on question. for there’s think at still and

Kevin Farshchi

Okay, you so perfect. Thank much.

Operator

Our STB Wang from next question with Leerink. comes Rebecca

Rebecca Wang

Hi you my guys. question. for Thank taking

So a on I of your ICE to question side want the ask business. high-level

trial. CONVERGE completely enrollment guys then and you DEEP already the in you now So have make progress

think have now what you. the of about Thank you business? and DEEP role procedure in in So the procedure eyes is to we my should how this

Mike Carrel

great mean, question. a I it’s Yes,

able So of to physicians way we the building the lot choose to is the we’re be a for have philosophically from. business that provide tools – to

is physicians lot a And believe of cohort a so is some do DEEP There procedure better. electrophysiologists cardiologists like that and that the the that right huge procedure.

with to a in really for itself. trial and one kind in less that advance on back the is and then little is EPs convergent So the And comes we’re and in investing wall thing the a clinical deal where side. labeling get that out market of substrates of It with invasive a that. approach, for associated

sites EP some both. comes down it preference, actually offer to So

different data choose to with be say, these that to and to have their want decisions to especially because choices, can That’s see you be those to hospitals choices so want more larger between able that I and get concrete happening to why get the able institutions really and us a to make can patients. important full offer today, be the can want really that patients they items. relative to be you – it’s basically both, provide So to can able able to that. to for service more associated they both be these

Rebecca Wang

right, thank you, All very that’s helpful.

Operator

is your open, Suraj, with Kalia Securities. comes question Northland next line your question. you Our ask Suraj can from

Your phone please phone unmute line. the line muted, you is could

Okay, Carrel. further question any turn I’m call showing back at over to this not Mike time. I the

Mike Carrel

as look joining. various at year I you forward look I for Thank you. of Again, and the you conferences thank And everyone to seeing progresses XXXX. great forward different to many congresses.

Operator

concludes that gentlemen, and today’s Ladies presentation.

disconnect You have day. a may wonderful now and

AtriCure (ATRC) 2 Mar 192018 Q4 Earnings call transcript