ATRC - Earnings call transcript Q2 2019

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

Operator

Good afternoon. And welcome to AtriCure's Second 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.

to Gilmartin call introductory Group like Lewis to comments. now the from for would turn over the Lynn I a few

Lynn Lewis

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

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

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

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

financial to Additionally, with comparable directly measures and refer a loss on the constant is specifically basis, GAAP our press site. Web included non-GAAP available we non-GAAP revenue is adjusted reported reconciliation on release, measures financial measures, our A which per most EBITDA adjusted share. in currency these of

turn President Officer. over I'd call to like that, Carrel, to Mike? Mike With Executive the Chief and

Mike Carrel

Good afternoon. Thanks joining And today. for Lynn. thank you us

are of revenue for XXXX from at a with the quarter row digit continuing growth. start of $XX in revenue second quarter double the momentum total the We our million, XXth strong

franchises in diverse performance by driven top-line open highlights appendage nature and strength Our and management ablation of was our worldwide the our business.

and global theme. We initiatives for our of our reflects execute on continue XXXX, to quarter operational achieve depth and believe the this

to be of the range range for are revenue This XX% which the raising now outlook in we XX% such, expect $XXX XXXX, year. to As growth $XXX million for of to corresponds million. to we

franchise and also invasive years. PROX attach our procedures management contributions meaningful our minimally quarter. devices second the robust to three of launched products both both had rise. We in and We'll rate with minimally the franchise. open for conversion last continues AtriClip and with minimally PRO.V invasive The invasive products, from to Turning business be the Growth this in to U.S. appendage impacting results. continues the begin

the highlight device. strong we we management to is invasive platform, in minimally adoption than the chest addition the FLEX.V that in the has are launched pleased contribution a demonstrate in since extension substantial the Results It appendage previous the AtriClip more quarter business the the open the In product with for having remain been U.S., our FLEX.V from the market. franchise investments today. and impact and our of on the year innovation this

expansion PRO.V products. PROX, drive products were of initiative The part FLEX.V with a platform and constant new to

our top these clearly demonstrating while all products, realizing strengthening new line, contributions immediate We core traction to are with portfolio. our and sustainable

been publication benefit our next open view the platform. more and could from support efforts suggested Turning more means significant under-treatment underpenetrated. large this ablation treatment We is laser in A We this We've to education AtriCure in that is believe than and even thoracic market. patients therapies. recent this cardiovascular surgery for steadfast estimated. opportunity the and training under-diagnosis remain to journal our penetrating in on with our real, focused previously and

and physicians over programs be from training every seven began continues years there robust repeatedly we Maze to AtriCure ago, interest fill While course.

a the Conclave, offerings, International sessions, scientific Surgery, for and American to Association addition heart Thoracic the strong we the extensive Invasive training including quarter rhythm had Minimally course meetings, scientific Mitral Surgery. this Cardiothoracic In for at presence Society

signifies and legacy society products believe growth Afib, the and RF prominent by our the view were from increasingly and driven devices at we meetings, have towards a in positive procedures open treatment ablation. cryo change within our these seen AtriCure which we guidelines, steady initiatives

device contribution were a unique pain using regenerates, to transmitting peripheral blocking while results months, from we the The past relief pain, by Another patients dedicated signals, demonstration launched probe, to the bolstered giving several for cryoSPHERE block the is freezing the but investment with block of time and last this a cryoSPHERE providing is cryoSPHERE. impact ablation our nerves pain cryoICE its which February. body with typically and from method heal. in quarter innovation nerves Open nerve the ablating temporarily to

their therapy are Physicians cardiothoracic Block Cryo are physicians patients as believe and adopting a Nerve therapy for Cryo forefront as key Nerve strategies part the of now finding management pain patients. meaningful many particularly a Block alternatives is of We surgery. focus for undergoing opioids option at

Nerve cryoSPHERE our revenues Cryo it with be and probe contribution to While are still early is with customers, appears is resonating growing. still the and Block with small, therapy accounts new

team reps support currently. in Block to have dedicated markets, our continue small to expand therapy and Cryo select Nerve will thoracic dedicated We eight

are positive significant offer thoracic the our long-term. to pain management and customers, from opportunity market feedback receiving We we the over expect

our target roughly to in on revenues receive remain MIS line compared submit to using later fluctuations system as prior persistent FDA patients. treating year. in FDA continue the is We symptomatic the approval were CONVERGE Afib the the from year our the States. to approach flat of Transitioning United the data with expectation quarterly until we business, as in our to conversion trial This EPi-Sense will this

last a in patients with August filed reminder, was XXXX all post year for treated As treatment. one patient

around the purposes, For that of and to planning disclosure expect continue time a we anticipating panel meeting. data

undergoing a evidence We've ahead clinical surgery. this and sites Successful year. will generate effectiveness surgery clinical heart enrolling. on clinical enrolment trial for safety forging cryo concomitant in the of of structural patients the this nine new of with ICE-AFIB on six treatment systematic front, that trial are sites added began total for completion Also the actively Afib earlier of our we

progress Additionally, in we to making enrolling. up now our XX with sites trial clinical DEEP AF-IDE are

provides in DEEP trials our prospective believe will a for in another our reminder, leading approaches. AF investments We minimally these clinical as a the alternative invasive As position market. reinforce innovator

the technologies to patients. opportunity and conclusion the a therapies our group of offer successful expanded of We are a forward as trials, comprehensive these looking physicians to to and and platform dramatically

portfolio driving our is revenue of our diversification performance strong the consistently see, can you with As growth.

Officer Andy Financial for comments. to Chief the return closing now call and will I we'll turn Wade, our over

Andy Wade

Thanks Mike.

basis. XX.X% the revenue of driven quarter sales XXXX. of of addition, constant an $XX.X second in of revenue on continued a $XX.X representing volume by For in from XXXX, and the of to U.S. ablation cardiac steady which million, GAAP product for XX.X% $XX.X second XXXX quarter devices. was currency the the Revenue was Open cryoSPHERE increased on of ablation from in million, increase growth success XX.X% first U.S. basis million, worldwide probe, our XX.X% quarter launched the the increases a

showing the along increases second of first LAA with XX.X%. minimally quarter our this an in U.S. in Across low XXXX products. XXXX during of products of volume FLEX.V with the devices. We invasive were volatility from appendage rates but and sales used of on minimally 'XX. in remain products, very strong management results improving minimally realized trend the invasive U.S. AtriClip keeping sales quarter were million, invasive of exclusion of was management products the increase in flat, volume $X.X quarter million appendage the $XX.X again business. device procedures growth confident for the second We of system growth from sustaining ablation

products our $XX.X invasive of offsetting from appendage driving a basis as second XX.X% X% ablation products. was currency a XXXX. million, to quarter on and international management revenue compared decline minimally the business, a are GAAP constant basis ablation in International up Open on and revenue

Turning markets. to specific

particularly Australia see in growth Japan. and throughout to Asia, continue We

anniversary in distributor of this We mark are our to pleased partnership quarter. the China

quarter costs. We margin second as key France XX.X% of also in the had Gross primarily of for improvements with areas to solid Europe, XXXX and quarter UK, XX.X% growth lower notably the and to due in compared several the operations second Germany. for was XXXX

making gross our We strong margin. long term are progress goal of consistent toward XX%

XXXX In Operating for loss of second the of $XXX,XXX XXXX for EBITDA of $X.X compared of $XXX,XXX. the quarter XXXX. second operating XXXX, of adjusted second positive income the we second quarter to quarter was million compared $XXX,XXX for to the had quarter of

$X.XX net second for quarter per the of share loss XXXX. net was of XXXX Our a second to of $X.XX for compared quarter loss sharing the for

Similarly, related non-cash to operating liability. adjusted credit this expenses the share $X.X our change to per would XXXX credit $X our of million quarter second contingent to the was non-cash in recorded expenses, operating the a XXXX that credit consideration second liability. recorded the this in Note for in operating Without was quarter non-cash contingent million. for quarter million $X.X change was $X.XX, and expenses consideration of loss loss a operating been to have

adjustments loss second EBITDA related loss consideration Adjusted million. non-cash the operating the to quarter all and share per for of was our contingent $X XXXX liability. would exclude results periods for been $X.XX, Adjusted have

second Excluding of the from quarter million the in expenses second operating contingent increased quarter million approximately the consideration XXXX. liability, to in of $XX.X the adjustments million non-cash $X.X of XXXX to $XX the impact

personnel sales. project contributed $X.X were activities, or and expenses, second costs, development clinical expenses. and of of and the increase development regulatory and activities studies the which in quarter total share-based XX% development product XXXX, clinical include in million compensation, research $X.X for Research million to Increases

and and ended the first $X.X and $XXX.X from show million the with training non-cash investments, SG&A in increase increases our expenses, quarter The cash, the excluding approximately organization cash investment XXXX of results approximately million continued $X.X XX% and incremental quarter expense. as a up professional total and well equivalents increased million, share-based as commercial of legal activities, in described, $XX.X trade previously in to second adjustments from of We sales. compensation approximately million fees the worldwide, or the from quarter.

Lastly, XX% anticipate to or we basis. are approximately updating We million year-over-year, a on guidance approximately to GAAP now revenue top-line of XXXX. million for $XXX XX% growth $XXX

XX% We be support current continue and ongoing based to will approximately growth. margin on XX% the anticipate gross for to investments trends year to

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

increase protect believe expenses We sales market in includes expect competitive on XXXX, driven education recorded notably our and in positions are this bring and contingent and SG&A spend Legal develop defending increasing of these which intellectual XX% sales intent adjustments as valuable, are training worldwide our and we to the made approximately We investments markets, consideration expenses. to products be expansion year. within investments international the result a thoughtful expenses of in to property legal with of heavier to to our XX% The innovative team, non-cash SG&A is by efforts liability along assets. China. is to

the to The XXXX range adjusted costs. full-year expect end $X is primarily zero in for the in be million. now reduction We of range of to this the to legal top EBITDA due

improvement EBITDA EBITDA it an continues loss an is originally reported million $X.XX. lower adjusted for per loss EBITDA $X.XX anticipated, to adjusted for to This range XXXX While XXXX translates be between and from the adjusted XXXX. adjusted share than $X.X of

in EBITDA. Consistent calls, quarterly previous we see adjusted will fluctuations

range loss XXXX, loss expect EBITDA adjusted a of of million $X $X per to for we of third quarter third quarter an the between The translates range the million. $X.XX. loss $X.XX EBITDA For XXXX the in share to adjusted and

for At like to I this to would the turn back closing point, comments. Mike call

Mike Carrel

Cincinnati At point, AtriCure at were values Andy. of entire each you, to truly of workplace for of thank be this culture the foundational top working am this our once of again their Enquirer. and every I to for day. would every class showing like one the recognized alongside our Thank passionate I year to this world mission grateful patients. We part you of dedication helping team

in to our patient in expanding outcomes And we confident impact our strategy positively are closing, of worldwide. reach

cardiac driven years builds is double from of education digit our commitment range all patients, the are the led our quarter quarter of penetration well we focus first is first concomitant investments guys, XXXX revenue surgery, and on second growth. expanding under with of marking types vast ablation clinical culture science half from straight a with of growth. to treatment consistent in to an our The in positioned major and Coupled for XXth The success patient options. continued of momentum innovation,

to up With we open now that, will questions. Operator?

Operator

question or Jason from the comment Genuity. of line first from Canaccord Our comes instructions] [Operator Mills

line Your is open.

Cecilia Furlong

what I seeing -- are is you Mike kind you're this, in this Where's of your do attachment where for converge of Cecilia going recently? wanted corporate trending drivers the Hi, on just Andy. this and primary the and been This to on comments the actually And longer procedures. term? see attachment about Jason. ask

Mike Carrel

Sure.

an be have If attachment -- recall, really we thought that anticipate didn't it'd in didn't of contact an been XX% We've We when are brought almost getting talked at the undergoing time. that trending much of We years are X%. for than you four well. as that actually at we conversion clip over that patients up. the right less about management ago, recently we a appendage time

And continues so go that number up. to

really positivity go, that a management the to to they're -- talk it. I'd it's about lot of terms their there with out to surgeons to going of we say EPs. important in And appendage. conversion And that It's where towards there's the driving concomitant appendage think the procedures. They managing manage

it have get that don't that that some could terms -- in we will or I look So, number penetration I I'd what But of like. continued that area. say continues a in growth specific do range anticipate

Cecilia Furlong

I areas talk continue And continuing with are as further Thank What And strength what opportunity? could kind you about you. the look clip, or guess just for you with seeing FLEX.V with areas innovation? of just potential that just also you targeting you're CABG and to drive forward.

Mike Carrel

years, market. to FLEX.V. them an on to innovation out management rolled the the of way I long the last a the be procedures. clip products PRO.V penetration very and about the under we've got PROX, all use of and we've three feel good On new cardiac into think and over I appendage those There's the three side, And go absorbed net products the adoption. have in the

years right focused that out And getting last a over innovating the really quite we're most several the area. in bit of so on been products since we've there now, got we've that the

be next several to a on that of lines is generation years would front, clip standpoint. -- the The be along probably the that new the off something invasive. something And front even us more on can that its for wave but less that next from going on stage really that

question. that In that terms think -- of I answered -- was the

Operator

you. Thank

from from Our next of Piper O'Brien the question Jaffray. comes or line Matthew comment

open. line is Your

Matthew O'Brien

is driver to quarter. in eye-popping, big pretty both pain that's, the in open like a the the sound obviously, doesn't U.S. performance it ablation Mike, But

help, So a are we we then talk we just inflection mean, that where of about clinicians and doing centers actually you bit doing lot saying, point driving and the this? of it? And be could a across should it lot are more growth, a -- little not I of what's more sustainability be hitting is it hospitals? that now should this. why more look And and mandated are

Mike Carrel

growth. the pain of the mean, I definitely some drives

meaningful mean continue we it will growth, that that that only to not look say but coming contribution we pain at driven even by that So is front. of off that the end time. we as to that do -- I drive this we look the see where next into of definitely on anticipate some year was the being and of year as at more -- more And growth

of the I'd terms things, kind open as she side say it's In steady of of goes.

nice like It's see guidelines to and think many like to the those at come. consistent, treat on I leverage exact was I mean how to job you'll everyday point, guidelines. and we're what get influencing more don't better years in a and talking the more is in a growing many, course, to front. about. I the of having to be you're growth the driver for with continue some conversation surgeons inflection just of top people better weekend world, this Baltimore of that to at, going do this about

on we're that. focused so And

some that we in to accelerated coming converge, our accelerate beginning team, clip like down that side things off a under the get year got on of and to as seen as that. the the and growth. get of And next pipeline, like obviously mature we've penetration that then, traction ability and more new and on cryoSPHERE get And approval the more on see we strength continued once we've the growth continue

we going not got I a a competition. share good our is growth steady the the forward. side share to grower think of be of against business market, to we've gain for lot So going as continue open levers of just And

Matthew O'Brien

more about that. bit to a Just ask little

about driver. talked XXXX the you you something of XXXX early think the Are that kind as here I for outlook those seeing you along pain what that business more adopters, you're faster reordering lines? than of they're accelerating because a expected, in and of just from So 'XX, or

Mike Carrel

line number number huge our on not it's a mean, top I yet.

are product. the a great We lot we're getting -- on of feedback seeing

year, we've the more frankly are quite have may reps the than is beginning that covering seeing. issue at And cases. biggest the demands adding just we're We because of anticipated now we got of the

And a be lot more to more got able and those clinical to add cover so of cases. we've specialist to

And and building as success XXXX know acceleration modest I so a we're towards -- it's 'XX. don't in --

Matthew O'Brien

can from them they're necessarily about of know cases tougher talk rates And need then next more just ask to low. of just on And that both you on two one don't more into. is I a the of low I'll hanging the gotten here. of and where Mike still -- But penetration you Andy. tranche get But type me, fairly go. the fruits follow-ups procedures. One for probably clips, question always to follow-up you've to for lot last

an So can basis this about is next margin that that for you for momentum that makes couple And quick in Andy, seeing big driver just on you be years? just gross the really management comfortable then the you're still talk real of feel account the was the to quarter appendage going good.

sticking a wouldn't high-end the Why little higher bit or XX% XX%. You're we with at be than even that? to

Mike Carrel

the on front. On still mean, globally under penetration clip that I penetrated piece, remarkably we're on

there clip come and there's And well. people And piece that benefits is it in that benefit the of Plus are we as of the we've get behavior. It's every but to yes, a in discussion know data EP from people happening out some data because managing continues hanging world appendage, that day. on around and more works. that world. what's out of it, more us some more because and the that cardiology of adopting is influencing independent There's just fruit various different a got low the not more lot of sure, applications every but of hospital, conversation

of gross and the leads believe think let all to answer good those I us question. the feel foreseeable future. so the margin And I'll combination clip for things And Andy about

Andy Wade

a gross sure. for really Matt, I quarter margin it think was good

team to do the support on sales. managing costs ops way, as and the build producing to nice to we efficient way, a think continues job good product I in a really continue

back in want So make we'll still at to we some the make that organization. year, investments that

So the in to we've just is the XX do to first where XX. to but in at got good a range spot. a the half, driving We've really leave it and us half things got back some range that's the to keep want good

Operator

you. Thank

Our JP Marcus the line comes next from Morgan. from comment of question Robbie or

open. Your line is

Robbie Marcus

on quarter. earnings and minimally good you very heart surgery. from really strong first heart invasive a We on quarter from TAVR. Thanks, guys the surgery TAVR limited an to and thought I congrats impact discussing did job from excellent there's open the conversion and how quarter call, TAVR saw

any impact you Here clearly just what you your ACC. was Maybe that could or And you didn't color call? us from give data of less based excited you're that the presented here. the made quarter hearing first following it other the financials business on the on more either gets physicians some and comments

Mike Carrel

in the see evaluated treated he with lot open is for patient period that first to and is is that's that getting where much thing for those the said at the in saw anticipate paper that a getting published patients really the lot and call, side year the the CMS for is Consistent our about us treated future we of what our treated business. the were Dr. a over growth biggest numbers we foreseeable three talking comments. growth low. and who under-penetration. think you of of quarter we table the I by around a the and Thank pretty who and We Northwestern And not on of see McCarthy, aren't gone who kind today getting data a just every

they to their terms were diagnosis of addition of well. In as low them under that, in

that penetrated So place. they'll goes on to AVR impact on the under market that relative risk positive combination the pressure de this just one all it lower in our But says tailwinds specific market. very as other and that in on the true area. that space are going be in minimis an is is business Sure, the that around

still bullish and and feel the for next open frankly. overall for for business us we year And quite of on the so for sure, into many remainder years

Robbie Marcus

point the two reasonable here? don't an had adoption earlier to way I the What's that want of Thanks it more came saw big this on clearly curve We time? on great a But quarter that, reps year in accelerating cryo, think to do the adding the business balance And lot. two, think be much launch You're than since growth line That do this year. we XXXX? expected. How three of you in business about quarter. a belabor excellent line. could not years' that think a of so how

Mike Carrel

do sizable big only the it's It's sense didn't wouldn't it but advantage We're fair a be it's think one the mean, I product we that nice market question. this. probe where well management a that if the the nearly is the a had we really actually large market. a as market a believe we've can market we reasonably pain in specifically really was over Afib -- the exceptionally as significant that standpoint, that that with in dedicated not investing we it And for works got long-term from niche there. our a market

patients year surgery. every If thoracic think of number about going for they're the you

And United and there's patients lot as number in fill growing changes is the reduce just for resections hospitals it's more lung they're a XXX,XXX people. cancer in to as Just due States, That of an every on XXX,XXX lung how these pressure example. in to to diagnosing more year pain.

do that that, the one if million be would we're huge cases a in math on every well market, and market. those over just of $XXX you So

it. to the got good of for good those that think can it, next by if a where we've supports of market small percentage robust that's really, stretch one imagination. think on a to in three got don't cases, get a really we've going, leg clinical going data we we of be Now, But we're the any every years. five we And

Operator

Thank you.

from question line comment the from Wise of or next Rick Our Stifel. comes

open. is line Your

Unidentified Analyst

start the guidance, only the the looking be like sounding at of and lower It's taking beat, the quarter to But you're second the commentary end on the confident looks full-year maybe tonight. bottom increasingly updated business. Drew up through half like by your the to of just you're year, looks Mike for Mike just is expecting half range. Hi first Mike, Rick the Andy. on at

So is there second beyond that anything XQ be challenging more appreciating half better in should the comps? we maybe

Mike Carrel

product. great in good on in a them just a balance and some got We plus Nothing and the particular. year mentioned, three the We've the mean the for about many great really is both got you this clinical the pipeline, We've great franchise to of that as feel mentioned feel all we come. the years. We've but I business in. where markets the about business. all for product we're not the going years to through go, next side of

So think nothing pretty per it se, you I well. on hit

Unidentified Analyst

a the cardiac there's number helpful. about business. like the in And opportunity of to centers maybe U.S.? any U.S. be I if talked more know I similar the you've that just that help from you would number But able ablation that, there wondering know a perspective. the population expect a like I should the be quarter? on Just centers MIS in maybe size opportunity we U.S. the MIS market maybe X,XXX or patient by was surgery might to then But

Mike Carrel

over it's going one surgeon a to capable areas getting in facilities well of Probably of community benefits be in pretty the those and every of of CONVERGE XX% quite frankly, much once But cardiac of procedure mean, be get to that truly some adopted. them, we X,XXX, the we I hospitals shouldn't to is that it easily like of you're is doing. could in smaller that. XX% is not reason there's no

doing. but the do. cardiac for be Interesting, is about, some easy adopted so mean straightforward. just enjoy cardiac can to not And by that about to is standpoint. surgery training it I pretty mean they that say I that's is a pretty from frankly, a this something obviously, for quite surgeon us relatively much that And anybody It's surgeon.

that be side. can So it highly on penetrated

Unidentified Analyst

just on then And last clinical trials. one one

to patients. also now. us then I would trials? you Have on XX You you FROST you're And to up believe update mentioned started approval at And this few that the sites actually patients for you enroll a and point? CEASE-AF have

Mike Carrel

Sure.

started to patients. enroll have We

-- a enrolled we've robust sites had got So and enrolled pipeline up patients got and now that year. got we've over XX of be of of rest patients we've course good we've the the and running will -- we've the

will in so good call. spot. want of in end I very But We we'll additional by a hit we're XX, And year. but spot a detailed and the think more to hit update we very subsequent the XX won't give we be a solid on overall, conference

up that need year the of case, this actually enrolled through relative to to or very it's that XX number in month then continue the we of hitting statistical that. going close to a the to terms up CEASE we're that. In enroll particular the year follow patients of we endpoint follow get CEASE, on data Once in are -- through they'll be end of end one year. to in be actually We've and

patients had the this enrolled last and of we kind enrollment trial the in decent year near of being terms We've the really needed. So current number end of conclusion actually year. based pacing anticipate on of where well of enrollment are year, by this

actually next if trial. And be the FROST, the various sometime shows hopefully, it gets again, publication. at the journals. of enrollment data to one's in abstract shows to did different before being we complete one a And that of will presented randomized And submitted that, is data year, one on an then in

Operator

you. Thank

Leerink. Danielle next from or from comment Our Antalffy SVB line question comes the of

open. is line Your

Danielle Antalffy

the what around you Can an it coming good up But talk quarter. driver. to afternoon, Good just how bit patient go are Mike, about, I much on that a guys. seeing getting congrats how you're question important that and based increasingly are procedures doctor? sort Thanks some so Like so its about opportunity of and growth you think XXX,XXX on adopting within it there and process cryo really market to I so said physicians Robbie's addressable days. taking be question the another total little to? selection just for physicians follow think know is because seems early that? to far, you done. or seeing so And

Mike Carrel

that its multimodality away what used not using approach. pain. reduce used significantly approaches we call, them it's it's is The currently the from it's being that helping being taking a, but way as Meaning actually they're today

United done, adding So mentioning support to initially was it were to long more country. kind procedures in out then big We'll We've eight. to to the profile. went since and the around being it the continue cities you States them before. and of expanded can name expand they're four where I add likely areas We of as clinical the metro most

to growing area the getting caught some particular patients of -- like at, rib-plating, that are or accidents, caught I a intercostal fastest anytime are mean cancer, kind are benefit for as that such any early, that. or items Cases of where looking take that going going there, thoracic earlier, see you you to anytime from lung being on the it types mentioned going probably want it. out where surgery, pressure any nerve much as spreading, they somebody's cancer. that's in any you treated the screened, I Or they've pretty they've is really be see car to the patients in lung the be might put have nodule rib you're that's about

And so are probably some lobes of That of of a primarily. take there. being Today, used are may result worth definitely is those areas that that. the big one they the as out

no penetration. of I one growing. areas, And obviously couldn't know there's those reason be expand into And I'd you every think There's kind as and But XXX% in that nothing it good those say that are we of is using thoracic markets cities cases. other we other all adoptable.

All the they pain University those of the not the of out unhealthy top associated to year meeting patients where cases those addition STS do thoracic the that with an past this them. year of had out. was one papers of one showed at before, year of have opioids The XX% but Michigan

of lot it. And sensitivity to so there's a

that. different to to this a other and ways that go manage people are way help is there pain the so with along for looking with And pain. are And

Danielle Antalffy

more business then piece a so focused built have U.S., but doesn't mean growth everyone's I the talk And The the into I business, and is the really sustainable Can CABG? of of are how on runway Or here. big you it there? the so momentum curve frame is there. are where about sort seem we the of sales us in on CABG percentage there you have guesstimate do way to know, be sort your to much now question any to driver just open AVR CABG the in you much. Thanks rightly what here for seems highlight of slowing. adoption growth would

Mike Carrel

those at articulate best is system way patients to our mission likely It's the healthcare are the Afib cardiac to XX% low in is help that penetration get there. today. CABG abysmally our the of less appropriately for on the than that embarrassingly table mean, treated that treated. life patients I time have it's And and they're surgery that of getting are

You're a of right, biggest leveraging guidelines, the we've combination that's that training biggest doing through We the do can opportunity. it more done. and the that's market, education

a XX% guideline that than make treat. about to are patients in got physicians about And got conference they've And we've campaign the to that go sure Why the in getting referring this when others should and treat I that treated specifically. call to last And that Treat campaign these you talked and is out really to say and less again, are surgeon that about them, this think because cardiac we Why telling Treat CABGs. the talk talk it's

Operator

Thank you.

Company. or comment the of Needham question Matson from next and comes from line Mike Our

is open. Your line

Unidentified Analyst

questions. also and Mike, what's other evening, thanks guess Andy. I for focusing the for team? It's And organization. on this on -- what that the sales cryo, One taking about the David team where At for eight are Mike size cryo point, people. right Good teams hiring? you you're the is then

Mike Carrel

this more say a and not too size early. ready kind that and exact what come about the We're playing I the we out as it market, of is is. of the learn team don't size have aggressive, we're get too to

we I general think just in in quite seen and our it. manage that, business you've frankly how

to clinical more is we now, add support And the more demand to that have so cases. right people

can to some to And year. so We're so major on I and But add again, going specific we're next That's cover end of number of we our that this year definitely current that front into a geographies. give number the going focus. to expand have these by really you. then don't to

other label year. clinical of support next CONVERGE as our we add adds, our to advance terms well continue In of in

really read effect lab space, an our EP that ablations to on that. how we're EP what look to understand the and add be people landscape see maps, EP of And understand continuing like and so the

so now that more And of next right into adding we're year. much heading

clinical our so on make basically now to those -- as that are side that the to got we're And sure got side. more our build major cases, to other coverage good the side, business, you Again, exceptional of on we're on to adding we're some we've provide as support that reps the hospitals. we've right clinical that direct in that support continuing mentioned on because or resources It's today. support support just addition really direct relationships areas have investing open two the

Unidentified Analyst

Thank then you about appendage was much for Can what volume the business' break thinking that out durability growth And you management. versus of are pricing? the growth? you. how And of

Mike Carrel

part Yes, see to it on continue majority of we really strong -- volume business. our that of

to And we of So to price do components is continue have based a on vast it. some the but anticipate majority grow. growth we'll that we volume

we'll which pressure anticipate told of growth, that though continue bit We we've was growth people down little good, the for robust strong, a we this couldn't quarter do forever. it saw foreseeable XX% XX% You grow future. to

Operator

I'd the Mr. over in you. comments. for to like time. additional this to turn queue Thank showing any no I'm conference questions Carrel the closing back at

Mike Carrel

the Again, we call today joining in you everyone appreciate interest wonderful Great. Have a and AtriCure. your evening.

Operator

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

You wonderful now a disconnect. Everyone, day. may have

AtriCure (ATRC) 30 Jul 192019 Q2 Earnings call transcript