ATRC - Earnings call transcript Q1 2019

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

Operator

Good afternoon and welcome to AtriCure's First Quarter 2019 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 the Gilmartin Group for a few introductory comments.

Lynn Lewis

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

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

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

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

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

Mike Carrel

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

XXXX initiatives. management first quarter. We a started Treat along and growth meaningful from contribution made concomitant We solid had on launched operational double-digit excellent XX% appendage a focused our quarter revenue our multiple marketing Why straight again have ablation, with products, growth, XXth campaign progress of

nature we in Our concomitant we surgery, are our our in of advanced diverse of growth products, Coupled business confident to innovation, education. penetration strong and and types continued under ablation clinical driven team of well-positioned continues growth. patient-first major consistent the are revenue with investments deliver vast by culture, technologically all trials, for cardiac and

of be bottom the growth of the range million to to year. million in steady of pulling products. in guidance XX% are expect corresponding business, the end driving to data guidelines evolving and Demonstrating our and increasing behavior adoption of to seeing clinical our are We $XXX XX% for that training we field $XXX we change to leading for the XXXX now are confidence our demand which in our emerging up

reflecting over Revenue of our first performance XXXX quarter. growth appendage highlighted compared of growth XX% U.S. our XX% quarter the Now, turning led by strong $XX first performance. was first to quarter products quarter international the of first and by to the in This for million, XXXX was management XXXX.

to appendage growth first management Our franchise with XX% year-over-year. quarter continues outperform of

have needs. franchise We sold for over worldwide. advancing future. franchise our We business our In approach to be now this the fastest-growing on XXX,XXX foreseeable this receive we devices the products AtriClip field, positive in meet clinical will feedback innovative to steady anticipate

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

steadily. seeing the in invasive On convergent rate are procedures minimally side, increase attachment we the

being V side, it's On our year are and stride are mark available as the incrementally in CABG AtriClip more open U.S. having in device we cases especially the of hitting open one approaching we FLEX procedures. the used

more Turning data emerging adoption. and guidelines broadly platform, clinical increasing to behavior changing are ablation and our open driving

continue market. and to procedures our in address large this and training sustaining see in investments open are education We opportunity a to

last few the As on business. what means our of gotten it months the for expect, one have TAVR questions we over low-risk several might course and

So, I'd minute to like to address this. take a

business As into and we factored have guidance something more a this going our about importantly, that point, starting both think is how our we forward.

of already we patients XX,XXX that the United approximately States. procedures annually are aside patients the for to if At can Roughly expectations. that impact say market the in on AVR Of aortic we are and this impact XXX% XX% dynamic from the treated market market would upward or This could pushing higher Based on that X% what direction the that break surgical were referenced getting of dramatic impact. under-penetration XX,XXX or valve means those than they migrate is TAVR, foresee have XX,XXX is business these the a of be Afib. not the be. So, AVR factor treated. are not a happen. our of estimate that we This, there to remaining table guidelines long-term to is course, the expected to standpoint, data, I in moment, overriding trends short our potential down earlier. the less are Taking to The today don't be. surgical also should though here level

there more the where This XXX,XXX about is is the every even gap that patient at Afib large getting have and to sees prevalence XXX,XXX procedures So, we market treated pressure, year. today. XX,XXX XX% if by penetration under-penetration downward still are look CABG that number even than those, XX,XXX exists. are it offset when only larger Of

opportunity in and real large. procedures is Our is open

With campaign, of just to innovation, combination training, scratching are and will We our updates we Treat marketing which we education guidelines, the Why still. further. bolster adoption just the even our launched surface believe

quarter enrollment first the this began clinical on mentioned we in trial As ICE-AFIB last our our of year. call, in

trial heart evidence and three have activated and of concomitant effectiveness the following. throughout unique several safety additional treatment on We this patients are the The track to a enrollment Afib opportunity on surgery. is for ICE-AFIB with generate to add year more sites cryo undergoing of systematic structural surgery clinical

for train treatment will developing first deeper allow at the in to educate we We growth softness and Within experienced care. treatment much better to clinical our support and are confident our concomitant the quarter. level patient better business, a some MIS and in continued commitment evidence us

fluctuate continue of a MIS MIS quarterly sites number Our due comprising small portion large to a relatively volume. to the results of

for have remain to into of system the guidance our year. for convergent EPi-Sense we trend this FDA the factored expect receive We approach using volatility this approval the and until we quarterly

CONVERGE trial treated reminder, CONVERGE for was All treatment. patient of August are a post in our year. year As one last last in followed patients

EPi-Sense persistent approach. persistent of then using for our be submit the longstanding premarket will AtriCure system of the position work treatment for investigators and data convergent the We part of to FDA a with application Afib the to in principal the as an approval and

previously versed of then, system EPi-Sense Until anticipating disclosed PMA experts up training prepared we to EP have purposes, are outreach education treatment we the of disclose make We That around be and and and for continue panel team for to would receipt meeting. in persistent will our ramp we've to understand programs who planning our expect clinical that the and well. team programs. an FDA investments longstanding population. the a currently in the well upon of persistent data As of Afib patient time quickly

progress as to patients. approval also the are which in We our mentioned pleased include received AF previously FDA additional clinical XX trial, with IDE DEEP an

another for minimally approaches as updates throughout and AF trial advance provides As forward to we invasive XXXX. the look DEEP alternative a reminder, to providing continues

a in these leading to in investments bolster position innovator our continue trials Our as the market. prospective clinical

group that for a of these expanded successful a expect dramatically will comprehensive upon technologies physicians We trials, and be therapies we as market patients. platform the able conclusion to and of our

to already gears States product. good switching pain United we seeing launched activity in in and from Now a We management. this are cryoICE, mid-February probe cryoSPHERE the

signals adopting a This to probe cardiothoracic designed Nerve Cryo As Last strategies months currently a Block. and in during prevents several Nerve management pain undergoing nerve probe their of Cryo six Block device thoracic manager pain pain as by part which peripheral from surgery. dedicated reminder, Block nerves. for patients therapy we small time regenerates. for the people, support year progresses. therapy platform the established offering a key ablating solution expand therapy, The block to cryoSPHERE team Cryo seven number Block unique and In in we up the select is is used this for year, the peripheral awareness nerves to specifically to transmitting is cryoSPHERE reps markets. first a therapy expect Physicians Nerve as the are Nerve a team Cryo the cryo

We look offer and we our are positive receiving to to XXXX and probe as cryoSPHERE customers significant beyond. the from XXXX we opportunity feedback expect and

investment to our and education. in Turning training

This the quarter further with of continued STS setting well about collaborations our to our our educational we that programs surgical guidelines programs. about us in to We though, guidelines drive are treat. ability talked to and as concomitant with as societies. the Also accelerate speak AtriCure-sponsored professional impact enabling adoption the for the requirement to ablation of training have surgeons earlier

list KOL are trainers almost around full. the country expanded our courses and of our completely have We

this of such As quality year, on our endorsed having program. earlier STS has program, we announced strong incrementally We're the statement training larger also an scientific which a meetings. is at presence

ISLAA part of was prominently we month, meeting. last discussion. in were past of presentations But clinical AtriClip line the Atrial and cases this the Just conversation. discussions featured AtriClip the were at an the year, symposia In part devices Symposium live and of Left important was years, overall International Appendage, XXXX

the momentum. in strength Asia, are throughout U.K., In Germany and consistent in patterns first our of strong with and to results we markets the had now growth year. and international In saw Turning from revenue seeing XX% with devices strength We now order EPi-Sense those Europe, expect performance. the driving the France AtriClip we particular quarter.

of investments the business the steady and years, international we are consistently to over Financial off And team and With While the our return for business with will turn to maturation roughly the in overall Andy revenue for Chief it with call now strong that, comments. end the Wade, I of Officer. be our a our and grower our to represents start past I'll expect we're we pleased XX% business. strong at year. to closing the Overall,

Andy Wade

Mike. Thanks

approximately was and the compared from of revenue the driven device. new $XX revenue to of constant For during million. of of million $XX.X in was million, the growth on rates basis including the the by probe. basis product an $X.X the a XXXX, XXXX to quarter from up, worldwide cryo XXXX. a of of in management U.S. cryoSPHERE appendage $XX.X increase products. this of quarter quarter volume XX.X% and a the low Revenue products, open sales of increased as AtriClip representing confident sale, basis XX.X% sales increased to of the products chest XX.X% quarter management continuing solid strong on increased from remain probe in and driven of growth currency first of in trend X.X% a We XX.X% million, our Revenue very of by first U.S. million currency of the an products FLEX.V launch used U.S. were first grew constant strong growth by business. and minimally basis, first volatility quarter On procedures invasive million U.S. down in $XX.X $XX.X increase our first the XXXX. growth XX.X%. for million, International to sustained GAAP the GAAP X.X% XX.X% on on appendage revenue ablation-related the $X.X

return to to a we of Gross costs other our operations more growth and pattern very last unfavorable sales reminder, growth distributor strong had Outside due offset a mix Germany. with markets particularly normal XX.X% quarter China, quarter UK, XX.X% no quarter order XX.X% to primarily margin a geographic QX concentration had Europe our improvements As as international a markets. to first and to and management for the strong throughout China at due in compared of year. year-over-year. the Appendage starting had we for was of the in first France of of higher sales XXXX in product in XXXX and for by to lower partially distributor Asia

adjusted to making consistent strong we compared of of margin. EBITDA adjusted first a had loss a an $X.X In long-term gross goal first the of XXXX, quarter are loss of XXXX. million toward for $XXX,XXX the quarter We our EBITDA progress XX%

quarter operating quarter of of XXXX compared loss quarter for loss for operating -- million. the of million the for was XXXX, $X.X the the $X.X first first Our to

in commercial for due contingent quarter XXXX were the for the costs for results results the of total the $X.X our of to adjustments contingent operating recorded liability. XXXX, the to non-cash our all of timing for or XXXX. from the increased project for million of of costs. to described, excluding per that XXXX. the of XXXX the QX by XXXX. XXXX. million adjustment of credit a clinical The increase first activities approximately $X.XX investment per ended first clinical in to non-cash and with loss million expenses, the consideration the These to lower first to compared liability. of regulatory $X.XX of XX% the was compared decrease the operating consideration the of compared quarter in $X.X adjusted contingent XXXX million the per legal expenses regulatory this investments. XXXX, made increase activities consideration million of XXXX. Operating QX reported which related expenses quarter was in activities. No continued share first lower related $X.X The million the reported would have Note from quarter XXXX for some quarter $X.XX was to XXXX, non-cash XX% product approximately headcount Our $XXX,XXX million loss EBITDA to costs quarter in and compensation for in increased an operating been with loss various from development, Operating development was the partially adjustment clinical million operating lower $X approximately related for quarter expense. decrease and $XX.X Note, for XXXX, loss offset of Research non-cash that for include expenses periods in $X.X decreases and increased of and quarter the per organization in increase other share million from cash, were impact first the sales credit excluding offset or SG&A to the cash $XX.X quarter previously expense product a loss million equivalents expenses of $X QX to worldwide, the without We loss Without $XX.X first of liability. to expense exclude related first adjustments was and share development adjusted quarter change from of to credit, to a trial a quarter activities first is an first $X.XX share first $XXX the non-cash higher share-based of in sales. our

to quarter, burn heavy our due compensation first trade As a payouts, reminder meetings. variable cash training higher is the seasonally spend and year-end show in internal

growth of our range. adjusting $XXX approximately end XX% a for XX% pulling are basis. our of guidance We the million by previous to anticipate year-over-year XXXX, or million revenue lower on we line Lastly, $XXX to up top GAAP approximately

margin to continue improvement to XX% to changes The efforts. cost anticipate year. approximately be by control gross driven will We gross for XXXX be margin the mix XX% both and over

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

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

to for We the anticipate X $X.XX adjusted adjusted progresses. be $X.XX. with range translates This share positive an results into XXXX expect adjusted to per from EBITDA prior with a the Consistent million and improving loss EBITDA XXXX. year loss $X will EBITDA as between adjusted for of improve we years, reported

the share to like for of $XXX,XXX range positive call loss generate quarter to turn the EBITDA million. this second to would XXXX to of in second expect to $X.XX. in At a I the closing of for We point, per comments. adjusted translates This back Mike to XXXX EBITDA the approximately of quarter $X.X $X.XX

Mike Carrel

Thank and we of closing, track pleased with you, In top our first our line performance are growth. record extremely sustained double-digit Andy. quarter

we confident, are on will future. the trajectory continue foreseeable for this We

turn platform three is which and education. pillars that, it on Our and critical open the I'll innovation, of now mission, to are the our With continue to Operator? growth to we questions. science, clinical diverse focus over

Operator

is from SVB our And question Antalffy first [Operator Instructions] from Leerink. Danielle

now is line Your open.

Danielle Antalffy

afternoon congrats guys. taking a question solid on so good for Thanks Hey, the really much quarter. and

Mike Carrel

you. Thank

Danielle Antalffy

put add at little would surgical for driver markets past different my follow that thank the bit be being little up. really sense talk people you've obviously open follow-up CABG. you about maybe on growth to you is dig CABG fastest three you the so I three ablation of growing. color the mitral wondering here give you think business: the amongst market. your to there ease and about into a so could maybe just markets breaks Wondering was that can the have can more valve aortic – great. if growth color any a that those I any down then for talked aortic to CABG one is the about deeper even if And sort there's I color how much And Mike, also in

Mike Carrel

quarterly specific because I on Sure. data can't it data. a give and basis, you of time for report STS takes all to kind that others

People our So, growth you CABG from typically, coming all are sales the field you're with That's efforts that looking times wrong side. coming back the is courses the we've on at where to are absolutely tell where in force the on our training. around that done But I that. is. that focus CABG can and the are surveys

So of growth new it we've pipeline, today those year that majority make well. vast CABG next that's And physicians as the on that likely innovations really to we've where treat easier got CABG coming. even the a also patients to is the coming for got for market

it's the little penetrated we consistent bit on market like growing. I'd you So and market giving expected. CABG largest and XX% side TAVR today been definitely valve without is specifics the said, had than on say and The is TAVR But overall it the less of many like of too pressure it. obviously fastest the under offsetting and a growing one the relatively had some mitral

Danielle Antalffy

sometime XXXX, more about Yeah. panel. going No, about the no, guys the to FDA meeting Are Because talk us can somewhat in safety? you that, with could follow-up we is think first assume what on all they least of far at know the this that's frequently or is, and both? as we as then very going as at effective is one you talk potential pretty expect sense helpful. CONVERGE be that and we coming half should FDA And it also I or my safe. but be give to efficacy issues my focused the FDA panel Is raise

just when curious, heads that comes FDA at focused a a as panel sort expect give to what to to on up so So is just meeting to of fruition. going people to be Thanks much. what

Mike Carrel

Convergent within using an and to relative events happened to like in catheter you've happened and rates. quite of safety our rates are have said, that itself. both Really fair do on a going by hit catheter frankly them. trial at efficacy look it's terms what just what line you They procedure. have with might I look question, think other the well trials and safe in incredibly Like is the

So look quite what in frankly, are efficacy how safety. at I is they'll difference much getting think for basically you no

and have I conversation think good and about it's of that the side and understanding to side having just to of got incredibly We've you out the an risk good the it, again to specific safety that the numbers that those find that it's benefit are. likely procedure. FDA. will the conversations in very what you're safe we'll getting off safety Obviously, right, the be handle going feel benefit a the be things with very of on be you're wait because

Operator

you. Thank

next Our Wise Stifel. Rick question's from from

now is line Your open.

Rick Wise

Mike, Good take a the outlook to about it's for not hard afternoon fact strong this starting quarter the you're you that incredibly Obviously, feeling hi had first you're year. -- confident year. Mike, Andy. just notice the

high to making this in XXXX? U.S. why just confident to of performance a the high I'd at at data? much momentum as be products? wondering, sort the what's just just I incrementally of Is of look hear so the this it a curious you level, You a year first Is actually point year some it year ahead. it ablation? it you quarter. at confidence new Is Is the the level, business? at raise started the was last strong more in the numbers off with

Mike Carrel

and Rick, range the have We finished of mean looking XXXX, as as having I doing looking we at overall ablation that bottom the well clip Yes. a end at on well look The a incredibly the XX% we I about quarter good looked business. we're really the amount very bottom question going what's mean said, -- within that confidence on it's growth cryoSPHERE, just kind at on just tremendous just happening. looked at that range we so end above XXXX year impact we of and the really at we at of good well. We at and upside feel mathematically could see thought, what's that a time is frame. well. our later some business open And in as

And the conformable in kind us things of solid so get very our are overall mean those has of been big over business. space a the nine-plus the been drivers International last and months. us at those kinds has bullish point. are I is really really and this that make for consistent and obviously

some also on gives us that And so as that consistency confidence well.

Rick Wise

a little again as change stronger seeing business the guidelines that are you you also emphasized some guidelines translate The Maybe years strengthening out year factor. it have and behavior. indicated societies And talk And their for level of place evidence more now now the et call couple evolving, in or in changing, STS the a making you. of you of know guidelines detailed into how been you Thank about raised and last have that Mike. two a are bit that's I the over guidelines cetera. driving

Mike Carrel

for to classes to get actually to People published. guidelines learn to It go work because time to use takes they then through how themselves it. training have

them show that that, better to conversations telling papers, guidelines our training are to relative maybe And me it. really with say is is, go and happens it encouraged to is what what hey them it's in, bring that them safe. should CABG that really doing guys was I Not those do have do to surgeon you These the So then live and ablation doing there doing the it. they not an and so patients know longer a courses. benefit only

every to build in space. one market just begin end continue get of momentum training courses kinds in over of We've to the things the them the Those Our added of time at better. cadaver now. labs

our say and et has it's that I long-term scrub that that basically cetera overall the so team the the in drumbeat field the that when conversations behavior changes. sink occurs continuing at those that And guidelines, drive

Now why happen now at well surgeon I the Treat to converting and campaign as -- now it's mean of Why coming it a out is going doesn't And that's you're time. one it kind happen to to are going overnight. continues this -- and we're to better that's patients further of continue doing provide about to procedure seeing ammunition benefits people why better. do properly. mean and importantly do treatment better better the show I most and is the patients results when is they

And the being trending get leads leads treated. more it that they so to data, patients to

Operator

you. Thank

next Our Marcus Robbie question JPMorgan. is from from

Your line is now open.

Robbie Marcus

Great and good a on congrats quarter.

Mike Carrel

Thanks Robbie.

Robbie Marcus

you was opportunity interesting it's table that on frame of patients really thought for there that still the exposed business. And much to not on gave also discussion that treatment about great metrics the are think to a the the I having is ablation. today the I X% the so way the

that in whether something midterm today? or or maybe can near the market it as the existing how increase drive you you to do So you already penetration see a that do in it's the you what or as to company that exists societies

Mike Carrel

That's campaign that we've There's the items we Why do. can that start with rolled question. I'll a great out. Treat just several

four patients entire the And these better. force sales it's So come but at do And of campaign show about patients publications treatment. at just long proactive to work not courses. referring why and the more of to globally drumbeat treat is then data to Two, more back years taught is the that both the for awareness, kind over labs treat, kind they three, showing to really come actually down learn. to a in a back patients come awareness. they're to marketing out field. advanced two, are of get the of doing different we've awareness, a the that of that first our one They of on continue That's to Many cardiologists to done from They get from been want to our those front benefits awareness two to cadaver that to experts our we're on and from have the their are pulling why because that teachers that been of step courses from we've have them to the come that important kind pathway They term. here get this of and to times. helping right the we've also to out kind move different launched benefits people come continued get last the campaign create hands advance surgeons better. lot and people guidelines, more referring of back

And term continue the This meaning they're education Europe. a those advance And for then We've it the is -- short-term so States. to know will we done Longer which just and United primarily have now. has States. job CABG worldwide. cases. remarkable non-atriotomy we're actively that doing really front. cases, I things people term many to as that year longer again are the on almost team more that items very We'll really specifically the right in is in our United in Europe We're Europe doing over train expanded in we as the in

also with it's out technology continuing those technology makes For that -- easier. look to cases, about it's and at come the our procedure

and So we it. market it we'll even position term team good to the advantage our over take of to if that'll make easier in next really And technical months, increase a feel be longer looking out penetration is that a at have XX CABG in look that. and product I XX like,

deeper procedure this surgeons right, those doing trial ICE-AFIB geared towards doing doing to about all with that we ICE-AFIB are broader And talked the got the enables hit it I kind clinical the have us RF trial, on make What is of would it that that. do dives data the different to of some cryo-only today. that of our really clinical evidence are then all sure covering to cryo. a a us which help there So this to a plus using the training, do do good products, in all them if they're device. there fronts. there you've a Almost body out finally going but cryo-only those say to is they're that technology do relates is to are training and out surgeons get And on but allows to data job today also is

So breadth market. sense the on that of for to in a hopefully we going you company that the that gives have attack activity

Robbie Marcus

was Great color. for first still wasn't quarter international, in million maybe that sales it phenomenal so when adjusting even the And then XXXX, or rate. a year-over-year on China growth there a

and is through and So sustainable here. the growth that Thanks. puts how takes maybe walk just trajectory

Mike Carrel

saw an strong. dedicated there over I you was Germany, on lot even more We We now being particular across as EPi-Sense that's across I more to in mentioned the a mean, that that's the sold MIS board impact it was board. we're it's put clips mentioned. Yeah, and strong really and with across in there. China We've said UK but particular a very like Europe lots continent. year. last it And adjustment you have team that really starting in strong the strong focused started the

many we us the the market driving the that's all over We've market. three been really how They quite starting you're across a consistency is out the much coming how team. other to leadership I say years. talk first I'd and for really understand people And European got there that and frankly. create and growth markets, mentioned a team of driving of They've that's saw that quarter thing of closely anticipate come in The now consistent that we the those gel. about years beginning that the to real maturation for selling great more together but for see working two, really there to it, lot to they and understand they're countries. And of

it's and cryo we look quarterly of in at largest you opposed but continues markets those of If markets you second China And the basis a -- solid pattern were that just for really clip the got they Japan's high level quarter mentioned many and them strong They've year -- coming they to in other out anticipate on They're get ordering Asia Japan. consistent really were country so and a to adoption. Japan but the look the years. now and world. annual for at we in an again. good as been

Operator

you. Thank

Our question's Mills Genuity. from from Canaccord Jason next

now is Your line open.

Jason Mills

Andy. for Hi, Great the quarter. Mike. Hi, taking Thanks question.

the about behind first generally question guidance. calculus and So your guidance

did context. So, Appendage high-single trends put of mid let just your your digits, of looking open several management's than the U.S. XX%, some over the range thereabout, this into has volatility and It growing we're it's high-single kind digits modeling like forward midpoint which international quarters, MIS, you if quarter, then at -- last growth, but midpoint. it the looks that's you'll been the got going XX% of me each with better to faster, which in flat businesses

United perhaps States kicker ablation. probably that some your the you is, just goes appendage play. comes part outside then if management the you're growth Do the end general -- the and term these see question top I you in And suppose then And calculus that's guidance. into the into I right? going the So nearer to in open have is oversimplified as drive where see that calculus it, to plus I in programs in continue upside XX% in

Mike Carrel

and terms of in fair Yeah, the of kind franchises and I assessment the that a an of the characterization think gives it. overall the but in talked think that's sit. takes, of And we I upside you and there's that's of business about where general fair

Jason Mills

rates can It the you increasing and do based on Okay. you in for asking, historically, where management, seeing historical guidance some the feel two-part from perhaps a to the say my getting feedback, data And second helpful. unrelated quantitative positively and your this Mike. Danielle Thanks, and If be I I'm words literature that'd would be of you see from more appendage midpoint following Where of most what the then is at the when follow guess that relative part your so strength more literature up follow-up data field all on CONVERGE. based think what success what set? just other up question. about confident they population would forward? clinicians respond space patient says to would the historical be you then about this context investors a your open does in I'll In not And specifically treatment perspective. on seem mouth. on was put it questions number what CONVERGE the going of but words And would like do

Mike Carrel

Yeah.

So it on the got the confidence we've across general. across diversity came hopefully you confidence today, as in mentioned and call the the business of

pieces year when given think and that I in you because start to for really of diverse base out that's be the gives us just the you look of especially, as double-digit We've got you quarter. areas. of different and allows cylinders across all probably the great takes revenue any us kind that lot primary many add-up gives to a piece. growth the business confidence a going And built

quarter out being that just to And That in a they've the an space and that saw overall very the see that good, for confidence those in provides as got one you really obviously way numbers in increasing double-digit adopted that space. in probably to isn't hitting this been continue continue want are I'd first juggernaut the across you've long-term a to you growth for the to for balance said, as we strong we've for revenue now. that with, momentum area well I really say quite see come strong specific We're gives us most see The to we a activity well. received think I mentioned. relative that for innovations well it The We products continue long the quarter. really clip as So time. if doing something right incredibly is us business area.

Like the excellent kind more relates think, you more in market an was the CONVERGE, data of we've it's it there more out more and that I questions to how put confidence question. together. on to definitely you look that's gotten and and data. When at or CONVERGE As relative CONVERGE

of to It arm really what at some effectiveness ones our comparator it was you're would get you the If HRS that you to and XXXX in you catheter that set the indicates if recent lesions XX%. on when to statements you data only. lesion more at the XX% kind some a treatment XX% exact of of be look linear relative really that do closer it trying to do. look consensus you mid-XXs. the look But depends which to some When at on

So out and I'd is of that, been and kind that XX% in say to consistent the XX% there that across the others market. the catheters with literature forceps have

and number substrate reduction. EPs that there. necessarily and hands, has that wall. You relevant the look They the not are they're the lot And to this going at at consensus lesions more the you of the statement look this this. in per that When They they do be I to pretty really se. have. you stronger because that might believe really when back may pinpoint think comes take consensus not see to looking it to what's XXXX when it be do center of statement -- person's durability of just going that more like today not they about kind clinically that because single think, burden states be durability one better but out to believe I of I data strongly it's market, endpoint, much A do talking Afib people at

start going this look make what actually benefit. multitude of how clinical how that look -- going a looking at adding -- they're my work things what come that clinical to risk, What is the the their So look and get they end does I think like and Afib et to like? hospital like decisions burden to logistics does I some make I I'm to at the What it any affect it's at and not that's I be a my factors do referral that. down see going cetera? think but practice does and really and and you're of it's in much going to to of how profile, when combination day

Jason Mills

you. Thank Perfect.

Operator

Thank you.

question's next Mike Company. & Our from Needham Matson from

Your now line open. is

Mike Matson

Hi. my questions. Thanks taking for

minimally Just U.S. a out understand was some it time volatility, I in down more wanted but start in -- the with bit to particularly invasive seen than the comments we've the around business.

kind the of want just of that term been are looking away sure So it's like anything then from just physicians that the make really And don't over the backing to have longer never procedure you any get that. business. you're FDA the what handcuffed a the real approval and really because of change mainly the just you year? high-growth FDA approval sort by should that's that hopefully lack of Is like next once

Mike Carrel

be procedure. the piece the that and I part, last Right wall able us think getting the back Yes, we're FDA lot armamentarium that is that's to to that. a sites want the to upon more answer now to do discuss obviously ablation. of We're approval gives doing this to push absolutely, biggest more capable which that reacting

market and -- becomes and in quarter. volatility These be absolutely that it's a down plus the and the when so get not that up them sites. patient market. That's down were mean, It's mean, is, quarter. to therapy look path at saw the XX% this move -- like or these that going we we of are front. And enormous not to were -- getting fourth able We that control again kind I flow you up were are XX volatility. down so -- depending we'll durable. be down think they I lot first-line of year, on And the you're right without an -- on a we we some The we big very bigger. Then FDA today. we had last approval treat to trying treated that'll at that of I QX And if patients if the it's this even XX%. kind

at to a date. have back they come later So

going there a lot and fundamental nothing there's within of the they're frankly. got really sites We've -- business comfortable so quite the on procedure. good And with

in, think, be flow. kind I again once that to of patients it's that FDA treat able And point. just And we'll of patient a comes at matter so approval that more

Mike Matson

that was curious us sure just in And And wanted Andy then into. on you're make Okay, which I then launch. right? I thought if cryoSPHERE open thanks. give just could heard you more say, wondering, the category just but I it to category revenue was heart the putting that color

Mike Carrel

are and that do on six most it, now. make the lot for it first and a been And market it's they who feedback testing it's people for of months. the it right sites to getting are of the kind of are for about we're time. then of it first to activity, now trained They're anticipate the together. activity we're just of using the test how lots from It's that mean, want about really on really from comes weeks properly not and it that correctly. it Yes, kind We only sure good I we six getting out so the We'll products. trying want see sites using revenue

sitting mentioned. it in we'll the geography open the now So right look future right the business And like now the business where it's you in is at open but in yet. for

Mike Matson

it just here Okay, just too that potentially tell? do the with timing for complete have terms or in sense And early could getting restarted on DEEP you you any of is thanks. enrollment when to

Mike Carrel

be that. to tell, early too able say to to It's love really I'd Mike.

We of eight We or to are by or enrolling sites couple having had sometime We've this up first enrollments patients. earlier We've since QX a patient talked anticipate so. enrolling early we've so enrolled we announced in then. other week. about as the

sites And so process of back to getting got the we've the now. kind IRB right

we're of kind So phase. in initial that

to really really of I'm we're it kind These I that we'll this excited on that don't to still for still right have terms lot way, of is date learn are update it sites. are more, end patients. in to an committed of they're solution now. but we and a good this. providing committed this these on that As committed everybody treating we're people excited that, But

Operator

Thank you.

Matthew Our Piper from O'Brien question is from Jaffray. next

now is open. line Your

Matthew O'Brien

taking for thanks my questions. Afternoon,

of the the know kind know a timing housekeeping. we QX/QX that of actually we'll When Is panel? quick of timing will panel? the event, Just the

Mike Carrel

-- be point this at guess a just this don’t rendering be point, I’d that. I don't time. -- at I in know I'd

back. the finalize to a next of the the And of don't this together early and some to come at be submit the then in part information year of quarter year so will it we'll the up hazard the guess in we'll pull FDA I -- likely and point. sometime data to fourth this want

Matthew O'Brien

Fair Okay. enough.

So I questions. two have

U.S. performance had strong. question look then in I calculus Jason back business for at First international have that this of you comps I the the look at this the business the that year. of And very half quarter all, the the on of earlier

that? think year comps? and that that as launch clip question about year we or about, to business So decelerating this chunk the how isn't think you with then being the most half to with tough of of Is growth far in about think I'm way do want within the the especially of biggest And it that right drive to back I OUS, management just as goes, make that the the probably sure, modeling the fair early U.S. come there? able appropriately things year maybe last lapping will quote-unquote appendage growth to

Mike Carrel

I think kind the for of of little will hit of scenario, overall a way we'll think Europe a of to consistent the other. end growth, Andy each that growth relatively We U.S. across you on There stronger going far -- across geographies. China be this there's look let consistency because see growth the year and be if be sure, other. it think we couple of within the for the and one to at by be but between -- relative points in the sure. I actually international Maybe those as won't or were exceeding overall the chime beyond you'll comes overall well. both the I'll rates, whole but balanced quarter When stronger

relates seeing volume is what increases. clip, we're As to the it

that of bump, little from actually mean, kind getting So to is from the grew sold. And seeing XX%. much. -- changes. not volume year last We're be lapping we going actually coming but most I of more any the a of increases We is pricing not don't we're and and just I more necessarily get clips growth it's see, and bit

that feel that going XX%. with be But business. there as at some so so be Obviously, or XX% at quarter, volume bullish we on might we on we're it well, we're every predicting to really saying the not growing Now comfortable single as that. we're are we're little seeing a pressure

Matthew O'Brien

one was when two-parter currency me. adjusting It's not for guys Andy. thought. more Andy, you Okay. for grew there last And actually then quarter a for And currency. this than I XX% XX%; impact

how the And kind for to So guided low this question throughout the of you've year? Why was range we necessarily better is to typically higher? the EBITDA the been of It guided to the actually about rate do higher on course modeling. we impact of watermark XX% closer shouldn't goes think of same your wouldn't was growth side, expect EBITDA. currency that specifically, XX% And much the you've not something I but than to? QX for the end currency

Andy Wade

currency the FX try don't take Matt. strong a stance We Yes, rates The do going best rates. to typically one way. with real our

So we the rest year around the are kind of where about of think we today.

both on general expense EBITDA, far the makes to spot at impact that little because a in the As a the this Hopefully, and side being so our as the of you. unique around side, tends bit EBITDA revenue to there. positive sense FX margin point affect we're

Matthew O'Brien

Yes. Fair much. so Thanks enough.

Operator

from from Northland is next Suraj Securities. Our question Kalia

open. Your now line is

Suraj Kalia

Hi Mike. you Andy. me hear Could Hi okay?

Mike Carrel

Yeah, Suraj. Suraj. can Hi I

Suraj Kalia

this sales? what biz color Maybe of right, some business Hey, your as you done How buckets. a every quarter recurring what new or a we what Okay. and sales recurring new somehow can you job Mike is on phenomenal online? it Andy same look; the background noise. provide looks in changes any is so road. look do structural the of versus when can trying guys this market terms store start you you to some look; different that I'm Pardon directionally, in is business, different the you guess, store the color. come like mapping understand us these I give I'm of at have the view any looks like, managing buckets can

Mike Carrel

We be number do year. give say to that in We you're standpoint. out I'm Yes, I cardiac exact sure and for, -- centers we perfect an sell United there the a I last not could dynamic surgery X,XXX. from what into of you know that the I Suraj. what and can X,XXX I sold over wish it would And States looking

So we're just selling into about everywhere.

So get is one because site we're sites in expanding to of with That's the of treat. a just what now, within more doing focus about we're every now to at our least surgeons to products. lot really

focus and We're getting no per se to our expand we're them so is And usage. relationships. new as sites getting expand longer

RF the So they're to and them or they be might else. we we them the something to using use clip get to today, clamp using and the get clip start use

and surgeon kind If procedure, And other as that surgeons within treating. surgeons the and the doing get got of well. been then five to expanding so a of at trying two focus. three And we're site we're kind products and that's we're number the are aren't after within they've of each expanding the

and kind States sure of blanket that impact. And United coverage so, Treat a campaign more got really every surgeon focus the having of Why the big part of in the is to of kind make we've across

dollars kind best attacking same-store kind about obviously of the it's have usually typically look look how So, a look We look it, think what's per at putting planning of the more ahead that as in it's by -- going in far we year then place. to the retrospective in to a you we're things we're on how what it out, do a comes but after at terms once that's to that's and se. our data difficult but and forward looking like, of sale and

Suraj Kalia

question efficacy the the Mike, it believe Jason they enough. about was procedure how one about was Fair And look would that -- asked hybrid This clinicians last question. asked the data. I upon and how

little bit. that a flip me Let question

you to incremental have So efficacy procedure, I'm efficacy. right, you for excellent level trying taking that my some the safety the goalposts of going understood we -- venture is this that be races. for reimbursement. the field next the is the -- delta of keep this is know, the able be of, XXk to just understand safe, get this the out to give and getting for terms we a mean in to justify are of I and delta what things of Can I upwards reimbursement think year Suraj, you Thanks up be well ex what procedure. the the and procedure us where all I'm say off healthy picking it's in comes one would love hybrid I to almost guess level reimbursement? to I can when data efficacy questions. not now have right to clinicians that

Mike Carrel

today. for I Yeah, procedures mean, there is the reimbursement various out

once about the a long-term the lot all say So, sure -- burden. in not the again again comes -- going answer to just of look that at they're think Afib durable to at of exactly data. getting how come to I'd that, it's clinically I how to down the out, going in They'll what's that safe not I question to that particular treating patient. they'll at they'll Suraj. terms it. believe again, It's best data multiple benefits and it's I'm specifically, interest and fact They're look their factors one-year the at they're that look look of

as more two more and years, you'll and coming out seeing out three think and with more papers more that wind up data I come at well.

will that's burden. pinpoint be They we're is that one-year data, course, that As we've will a be got on think the many at that. looking AF years and strong registry know is to the of and years tracking think three very long-term at but year, two and there's data Afib And not be going called data, don't clinicians the I I of at much again, but one data of what on one looking front. the you just Track may both

best kind that the that's guess, I question I know answer that this to of, So way at point. how

Suraj Kalia

Thanks.

Operator

questions. would further this over turn remarks. closing Thank Mike call the for like time, showing you. I Carrel am no I back to At to conference

Mike Carrel

many us of the you thank next everyone Great. out joining in and field great you look talking Bye. call. a to for at Have quarter's one. forward Again, and to

Operator

the conference. gentlemen, This participation for Ladies program. in thank today's you concludes and your

now may disconnect. You

AtriCure (ATRC) 26 Apr 192019 Q1 Earnings call transcript