ATRC - Earnings call transcript Q3 2019

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Operator

Good afternoon and welcome to AtriCure's Third 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 towards 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 Ms. Gilmartin a the introductory from Lewis Group few for comments. Lynn

Lynn Lewis

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

to not please you. have the have XXX-XXX-XXXX you to one If emailed received call copy,

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

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

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

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

Mike Carrel

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

with half our We our strong continuing XXXX revenue $XX quarter approximately quarter XXth are in growth. the consecutive million, of momentum first the of double-digit third of total from revenue

Our top-line driven performance our strength was U.S. franchises. across again by

of expect raising be this we XX% to momentum, which outlook in year. million. now range to million With for growth strong the XXXX, revenue our of XX% $XXX are we range This $XXX to to corresponds for the

of the entry acquisition transformative us direct here for electrophysiology strategic market. quarter paving at for quarter quarter was third and very It highlighted a the The by exciting was the into AtriCure. our SentreHEART, way

atrial acceptance atrial and managing is market. to the support Afib transaction, within device, EP August the particularly on developed discussed the of the a close appendage. appendage the of suture-based and important is which our treatment of given we percutaneous potential left As This growth groundswell approach the the in SentreHEART the left announcing LARIAT call

under a being the studied Europe. today XXX(k) aMAZE U.S. is in is on and clinical device market LARIAT in The The product in the the LARIAT currently trial.

expect very devices be few sold the to outside we of However, aMAZE trial.

in enrollment trial acquisition made in progress Our meaningful top since we have this and complete is priority the to August.

of of on track As quarter of and we to XXXX. first XXX patients reach enrollment in XXX patients the enrolled today, full are have

DEEP addressing AF three most advanced have forms complex With we Afib. the the only aMAZE clinical and trials, the CONVERGE, of trials and

to is Strategically, endocardial as complementary we LARIAT catheter approaches, position DEEP. expect procedures multi-disciplinary space, and the and our the technology to in the EP as ablation CONVERGE such advance

procedures CONVERGE valuable total option Each and DEEP of aMAZE and into these the billions conservative patients using and offers Afib therapies is for for market treatment a well the the addressable estimates.

to now execute portfolio results, seeing are our broad and Turning quarterly pipeline. our the continue robust to benefit of we and

quarter, in open invasive by our U.S. minimally saw continued franchise, strength the we and business Specifically, management our appendage driven in our products. AtriClip in third

our contribution We open AtriClip our V minimally and from invasive as devices, again device. meaningful PRO chest Flex had PROX well V from as AtriClip

Within under-penetrated ablation our address innovation, and platform, still to we this large education, focused on market. remain training open

be clamp approach launch and attractive plan are the We XXXX, are simpler a heart procedures. we open physicians progressing will believe who new faster to our which open bleeding to in a seeking with in to

space appeal, While open revenue. resonant ablation be with the the market open particularly and expect our surgeons we be to to in we anticipate broad accretive concomitant Cabot to

multiple appendage. were Labeling This quarter, of appendage of third demonstrate AtriClip the and Claims benefits. both devices. AtriClip's left in the expansion isolate atrial the electrically to epicardial AtriClip devices addition, the clinical FDA Expanded we is able important received because exclude labeling evidence the We exclusion In family clearance that has for for

how the portfolio have different variety needs Physicians products of line serve increasing ways. management left continue support to of the in a can our adoption. management atrial we devices Over their and with of the recognize new appendage AtriClip past benefits left AtriClip to innovative and in the atrial invested years, appendage several evidence

device dedicated pain third surgical U.S. our post-operative probe, quarter. cryoSPHERE strong for in in contributed managing The results cardiothoracic the to patients our also

still revenue our we it's still build. early contribution is perform well continues this seeing therapy base low, relatively account and While, overall and to are

We bolstering – resources our we are markets. support with to small, team are cases dedicated seeing steadily thoracic clinical select in

as we adding pain the Our accounts business support and approach we builds. management depth, case resources patients than volume in we program believe then, on rather focused for a innovative go is identify deep that comprehensive breadth their as first and

the We are over to encouraged the offer long-term. our by results significant market and thoracic opportunity management pain expect

revenues the EPiSense have growth year-to-date we system been the Transitioning ablation franchise the treating in patients. we of this U.S. business, to the our in using XX% in symptomatic FDA approach from approval This persistent approximately we with to X%. is fluctuations experiencing quarterly of and our were up that expect variability until receive continue MIS quarter, Afib rebounding convergent consistent

back follow-up CONVERGE again. step review the recently. was our and XXXX last study completed one-year I to was The the want to and in take relates in August patient and it As trial, expectations a treated timeline

the that are team group there the are and in procedure final on for the persistent module, to The year. details Afib. product novel clinical training persistent track to a is we working a therapy PMA this the whom label submit including of is Our for other With through convergent patients is data treatment are stand-alone expecting panel. end FDA by mind, convene group protocols no and and for long-standing

could process optimistic release within the toward dependent FDA. the is we XXXX, our the on the that We this XXXX, anticipate clearly submission with we will we and along of although panel. approval this the end data preparation FDA for timeline, that on receive in are Based

up and future. modestly strength management to and received with PRO AtriClip the appendage V our Internationally, Flex our by contribution We results in forward for in devices quarter were and Mark CE third open driven market look recently their businesses. European the V

growth the prospects in the operate steady end-user see markets US. we to which continue we speaking, in Broadly outside

channels about pleased and extremely portfolio excited sustained In this broadening double-digit summary, growth. are and line our quarter we top with record of track are our

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

Andrew Wade

Thanks, Mike.

the of worldwide a the For million, XX% growth revenue basis XX.X% an basis. from was XXXX. Revenue $XX.X a increase and representing XXXX, on currency U.S. constant of sales on third GAAP million, of $XX.X of XX% was quarter third quarter from product

in to franchise, is open million. revenue ablation open addition XXXX clamps. along of cryoSPHERE contribution early open continued XX.X% the momentum from creating probe in U.S. ablation our $XX.X steady increased with The

in invasive is soft XX.X% The the in due used prior from minimally of year products of increased minimally quarter procedures comparison the with quarter third sales XXXX. a XXXX. U.S. in to improvement third $X sales to million invasive relatively

calls, third an past volatility sales appendage XX.X%, quarterly primarily quarter business. As management we XXXX, we $XX.X anticipate driven of from million products, which of AtriClip now during have were U.S. system discussed this increase LARIAT the includes on by the of products.

AtriClip rates We products. again realized with management devices. the strong in exclusion growth device, for increases Flex the in system LAA minimally V very our We from invasive volume sustaining growth appendage confident along remain

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

continue solid and in the with we Turkey, see Turning to in key Europe, Asia several in performance and some to UK, and The areas markets, growth France Netherlands. weakness had specific notably, throughout Germany

compensation quarter operations as third with XXXX. of in third margin for is an was XX% a from leader. improvement of for XXXX the the to in retirement XX.X%, XXXX, charge Gross driven the share-based the approximately compared quarter of due of one-time primarily third by decrease quarter This of $XXX,XXX a

the gross slanted margin. to was carries U.S. mix which higher addition, business, In a

XX% long-term We making progress a and see gross to of improvements continue lower operations to margin. our strong goal toward consistent costs

we had loss In the quarter $X.X to compared for of $XXX,XXX adjusted million, XXXX. the of of quarter of third a EBITDA loss third approximately an XXXX,

acquisition During to our due XXXX, modified to of adjusted their definition we the EBITDA of nature. quarter third non-recurring exclude costs

for SentreHEART recorded in of costs million XXXX. acquisition $X.X the Approximately, acquisition were

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

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

and Without this loss XXXX for non-cash would our have loss per adjusted operating the credit our quarter to share been million. third $X.XX $XX.X was operating of expenses,

have of non-cash recorded non-cash results liability. a Adjusted for to XXXX to $X.XX for contingent for Similarly, the operating operating the loss liability. our been change related periods consideration would third the $X.X per share exclude loss quarter in Adjusted adjustments credit and expenses quarter all consideration in XXXX million. $XXX,XXX was the was EBITDA of third contingent

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

consulting to clinical the research XX% third expenses in contributed XXXX development and and amortization the were for and or personnel include quarter expenses, in and expenses. clinical which million Research activities increase million regulatory and of total $X.X costs, of $XX.X Increases development sales.

higher SentreHEART or compensation activities sales. increased show cost our training and other million of described, third commercial excluding The the as of expenses, cost total worldwide, the quarter results and a organization increases adjustments trade personnel from in the previously expense of SG&A non-cash and and increased acquisition well in investment from costs. operating continued $X.X to incremental approximately million from the XXXX as share-based $XX.X XX%

the cash investments, from approximately quarter. We million down $XXX second equivalents ended in approximately quarter and cash, $X.X the million with

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

to year. absorption anticipate cost pressure the on to margin. operating XX% put XX% be margin approximately continue SentreHEART for gross of some gross We will The

against this we improvements XXXX. we tailwind the have believe that However, a gross made throughout small to is margin

range maintaining are for we guidance result, a As XXXX. our

to stated are this still and front. our marching As goal of toward progress we many on we have margins gross times, XX% continue make

expect XX% sales of We be year. to for XX% the to expenses R&D

Investments aMAZE, DEEP IDE development. ICE-AFIB, trials, AF this science R&D in pipeline include area and the clinical activity and growing

in consideration to of in absorption non-cash this costs. expense sales in year. by The expenses operating which to adjustments training thoughtful along XX% We investments increase XX% heavier approximately of costs, sales worldwide expect team, acquisition be SG&A expansion driven contingent SentreHEART and recorded XXXX, SG&A with to our and of is the legal liability education, includes

of We XXXX continue EBITDA translates share $X the to the operating and million the to absorbing for full per of $X expect adjusted after since an for adjusted in of cost range year be range loss the $X.XX an XXXX $X.XX. acquisition. to between EBITDA SentreHEART million loss to This adjusted

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

Mike Carrel

Thank Andy. you,

it open and life-threatening which to we options. warning familiar to marks raise I Before want time awareness for work to this month. become Afib symptoms, signs a acknowledge arrhythmia is a moment September critically This available that National more with the take in for questions, public treatment the Awareness helping by important we

people XX and media Afib million of the patients AtriCure's those and addressed More our by of Through are about role with in channels, Treat by campaign we information not physicians. standard showcased uniting than social affected and provided are educational care. Afib worldwide majority Why our

to and addressable our strength addition Afib, strategy organization. diversity of business differentiated of the commitment markets to will more the total serve meaningful our closing, allow performance the In continued SentreHEART overall We that a expanding believe and will thus products, our accelerate us way. patients reflects clinically with our in to our treat of our

looking more Nerve business many Cryo our such Blocks created are forward years. as, catalysts aMAZE, by several We over prospects to shaped future bright the several growth next by and a CONVERGE,

now open We will to questions. it up

Operator

comes Marcus line JP Instructions] first [Operator Robbie question from from Your Morgan. of the

open. line is Your

Robbie Marcus

Thanks, a nice guys congrats quarter. and on really

Mike Carrel

you. Thank

Andrew Wade

Robbie. Thanks,

Robbie Marcus

give with hoping that be the starting next was build sort early of Is the or to the Any discussion? you to after feedback feedback would relationship CONVERGE been see acquisition what’s Are out I in with on early the SentreHEART start EPs? of year? could ahead you great. starting LARIAT you could acquisition, moving

Mike Carrel

with it. integration smoothly really different great gone Yes, We've on early, it's I trial. also built are the mean, I but EPs their a have. new many and when we but into more the a them we more job are nervous our of doing introducing fronts. didn't with about that little with side, first, excited has nature us EPs relationships the mean, great were bit slowdown. They We obviously on they enrolment strategic bought

the about And visits instead and with that they that very KOLs accelerated are personally all very increased well closely excited and done very made reception. I Again, to it's much positive we actually actually got on of front. pretty working the they product in trial. and very are were make through of training clinically to will They with. that trial. it committed that the great to market The want that and to team education then kind is aMAZE bringing focus and sure obviously bolster

also really I've SentreHEART. the been at impressed team with

professionals across are people to focused on XXX% board, cases, meet the they sure, really go are culture an They the topnotch you in going and are through you is Just field the clinical fit everybody you that great the wonderful team, I to the mean, the just when acquisition. with team both well. not don't through because patient. you back these, office, a supporting

great field. are aMAZE the and people just really the same time, And and I'll trial. are there at very but already blended focused and say on we in have fantastic been on going the in the that, fit conversations well

sure diluting from that and of out it are teams are getting that yet. in we're attention on integrated quite kind their our making focused that We the that field not

It's make we we sure really more to get next of kind that awareness, it and kind an create well. beginning enrolled We done. the want of but of get running hit really as and we year, ground to trial introductions

great. the I today was excited with it's I acquisition more So, be and than two happier ago. months going couldn't

Robbie Marcus

a to those just that and a topic both I open here. of But is was hoping that be then and were segments. in two in Great, this is stood Thanks follow-up outperformance I see are from. helpful? with a ablation line quarter what seeing, know you The you this items not where lot. out AtriClip. heart me the quarter, a new you the in fundamentals any there coming little could particularly improvements color, third that would growth give Is change or

Andrew Wade

change, I that per there any is se. wouldn't say

it On comes two end. the to at business We pieces. down can, here open the side I near of as our different mentioned,

hard the on We are pushing concomitantly. awareness really treatment and this Afib

the every you probably know, of we've in and the year we ourselves the invested seven eight than the well number penetration in that to patients last the we've globe. over around PMA doubled space space As more to heavily improve years since got open the

Dr. in just are data, U.S. table actually on that only that where patients he demonstrated they getting That and it's still getting patients the on XX% the of that looked have out a paper not actually treated. are In came analyzed XX% are or getting said, are all still at treated. the being treated. particular, that McCarthy of the are it the there that CMS Afib getting operated on with

we've got we that have that will us see the think and with of that you that with we programs big so that under-penetrated in and of some I a education front market our are to And running. continue training and

as Nerve of is part the our top cryoSPHERE Block open On – in I did get team, benefit other and business that, Cryo side well. of the that would of the we

points So numbers, it It bit and that good impact that, is little that but behind team well. from from the us is well we kind growth of numbers give some get because a scenes small a doing couple there. very of kind can as of

are We giving specifics.

People the and any that people on clips open easy, just place AtriClip the of of It open the now they cheat V a the cause off for extensively, are product. franchise, it clips On those a It's love when doesn't market simple. about Flex of clip. in It's the been kind cases. plays actually it. going year using actually them or into because are lot a that business that quite

It's a profile. smaller

in on the open innovation kind and steam is in other it's momentum because that the on kind that build that side, of on that. our And then, helps MIS business with continuing of concomitant of off in side the say typically I'd business, particular. to So, that, MIS, strength

Operator

next question David from of the comes from line Your Saxon Needham.

Your open. line is

David Saxon

how you and Andy. one. let Can us much Mike in know quick was Thanks, the SentreHEART quarter? guess, a just I

Andrew Wade

Very was We focus were them the mean, number – bought August it the very, within I we on very Obviously, – got quarter. very, was focused it on small nothing. really almost - trial. XXth. a this was

in little of this very revenue it's So, quarter. bit

David Saxon

of the maybe thoughts then, talk to on at great. and about just priced Okay, of going you pace box your kind And it? looking how you can be launch it's adoption clamp, the once

Mike Carrel

kind think of are I of our were talking you will of The the charging that next pricing for kind that open product price for are Yes, and we year. new sometime we are part business about of we to today the looking clamp looking likely. above what at be the our have

But specific clamp we what get north price it a this anticipate with be at will on you set do today. far regular time. of haven't a We that

It's attacking get better making and heart the more sophisticated easier physicians a and it's broader these lot actually ablations. simpler and for to obviously and

David Saxon

lastly, Great. advance higher-end are in with you how progressing And just clinical support of CONVERGE?

Mike Carrel

several out been building Great team We've actually the question. for years. that last

And so got it's to that our also on of on side, the minimally a we've but wonderful kind invasive to product clinical both them understand that clinical trained is team speed, – team line. up get

progressing roles. got We've and and just out about quickly. up continue managers to so are a We they today more to are very five side. got, on will They've the minimally fit wonderful team and been that well. extend add invasive to or very, very we in clinical we or I that we that, So, anticipate great believe XX speed found get those people we've about and there XX

David Saxon

congrats thanks the on and quarter. Great,

Mike Carrel

Thanks.

Andrew Wade

David. Thanks,

Operator

comes from from Leerink. the Antalffy Your next question Danielle SVB line of

open. is line Your

Danielle Antalffy

for afternoon so Congrats solid much really another taking good quarter. my Thanks question. on guys. Hey,

Mike Carrel

Okay.

Andrew Wade

Danielle. Thanks,

Danielle Antalffy

as guys you've view as specifically on it your that been Yes, Robbie's have I business does about follow-up growth open to of few business? ahead that. you know outperformance. to of is mean, Mike, ablation profile single-digit grower. I no relates kind durable I quarters, this talked Clearly, high what a the and tracking the last problem. change just for the on question, wanted

It it curious maybe was a But the based feels also on recent as on strong low-double like quarter, two, one and it's outperformance, digits. just closer TAVR your view to that quarter. this

So, seeing if it what the aortic to curious are the as you on relates side seeing comment of or not business. you can

Mike Carrel

Yes.

about all questions. business. the are that, So, open excited happening in mean, we really I I'd say good what's

ahead talking I long get basis. don't to there feel numbers going We that about on consistently that strength for are the continue there to you like, to ourselves is time. want to be a of

That said, the Cryo a more for have enter XXXX XXXX, as bit. more Block bolster us coverage also – team being upside becomes opportunity into country. -- we That Nerve we out will that and quite a is that mature, help really get big and around the definitely as we there those help

And point question? opportunity open, do then And apologize. like do ahead those I know don't would I a I there's this far relative myself get huge asked front. we you question So, but the that me on rates growth remind of at to feel too that another

Danielle Antalffy

risk based business. - TAVR the is impact the on seems if low you we're of not much are put valve The thinking. there It on curious out, but like aortic numbers you what

Mike Carrel

basically in patients overall be consistent those But before, what low that are not patients I per se. diagnosed of which a with it's have They're to an getting what saying, we impact on advance, is with better. obviously about aortic these treated TAVR. know it's think with having continues the or Afib patients many Afib penetration the and talked do volumes we've

do with there if they There patients better if in that if - out and the actually Afib that are and treat are you TAVR. those going surgically you do, the them have doing our Afib just papers showing

is more that's So data I there out there. think

our aortic we not getting the And pressure that. We aortic the in it benefit are necessarily But are business. part seeing is on the there of of side.

but same time to is probably You this benefits the really well, at for of going penetration the the low of valve of in the us so the probably net lot Afib affecting are point. not on, and sides company terms where because treating at that pressure it's us as

Danielle Antalffy

for follow-up quick then, it. Got And Andy. question

this Just year. adjusted on I guidance EBITDA, appreciate the for your

Thanks come did are can quarter tracking or on much. the positive in in so had and we expected you better You EBITDA wondering if profitability. than how you comment towards just adjusted

Andrew Wade

Sure.

in the still the on of we $X lose guidance. at that, with So, comfortable time feel the will gave million million the guidance deal was of range we We August that $X EBITDA to back line.

said As front. Mike we out, as couple said, months integration of a well are are, the we on doing we

the to running we But infrastructure the have successful. that of make in absorbed trial the cost and which

So, about why the million to just is guidance. which $X reiterated the feel million, we $X good

that really front. else nothing So, on

Danielle Antalffy

thank you. Okay,

Operator

next question Matt of from Your line O' Brien Piper comes the from Jaffray.

open. is line Your

Adam Gunther

tough taking on Hi, quarter strong it's on the Adam comp. thanks and on the again My growth, first question which questions. is for against for Matt. Congrats AtriClip was a

reps you any have came impact in a that August and then labeling wondering, shape this that and the the from having in I helping is conversations had or late are Just follow-up. seen changes your benefit field

Mike Carrel

Yes.

the am to of reverse to kind going I So answer that.

and more benefits – isolation. are is because shaping doing the more We electrical there of a then talking and about lot EPs definitely of activity, conversations, it's

In the exactly we reducing bought, that is fact, what aMAZE Afib just the and how product LARIAT trials. that doing and it's the is

intellectual of what able and our to supported our to really player we are business the the that it driving discussion it. that that the a result haul. in here know I been that's really that that general data as – that at good mean, allows well, have So in with that that. we've for have revenue know if it’s was conversation look don't are been that long of excited does and are rich – for conversation short-term, you it kind I we People

of of out drove six will with that . the last I the this product is over and comes think left anything last improve we kind have with course in wouldn't that things the years we five that the do the specifically But the the be of atrial or product and combination other weeks of it data We introductions that say have really other conversations adoption have. XX four continuing of kind new eventually we appendage done to

Adam Gunther

then, helpful, question thanks. a ask And to QX quick That's performance. wanted just on the

the U.S. came a OUS U.S. expecting, bit in you little hoping dynamics and were more. could parse came in better than while little softer. a OUS Just bit we out

any those just, color the So additional be taking questions. would on for Thanks helpful?

Mike Carrel

Sure.

are have We strong U.S. U.S. in really right. in are continue You great little and quarter incredibly strength people a have we have. strong. weakness bit business this one we saw a of little forward. to a is of a parts in going we did coverage many bit of That the see and I impacts that lot of Europe. that had market We exchange currency

where But little and of The bit Germany felt little it a a was also bit pressure. we of in Netherlands,

While we little a There is other were countries many in those bit two in Europe, nothing softer. around are countries strong in particular particular.

say, look can were softer just at this it. countries. in and what We a is caused You bit those little

And an on the had us. percentage impact so

. come that back really rest time and nothing international was very think the overall, strong that of will over specific. actually We But

Adam Gunther

helpful. That's Thanks.

Operator

question the line comes Your Canaccord. from of next from Jason Mills

open. is line Your

Cecilia Furlong

Hi, this for about going and and on drive can How Cecilia higher? you other is new in again, your drivers penetration specifically, with ask that forward actually you business that to see this wanted see XXXX open I just clamp. Jason, the penetration help CABG

Mike Carrel

a just about, talked innovations new excited about if question new you even really I because am the the that relative Yes, we of that go little had innovation innovation of business history, our eight really a open with. side out since our bit more the coming plus haven't the back PMA. another on on the are to good kind actually new clamp in really years, for we

the XXXX. education, PMA then the of different where working got kind training done. get people has been helping guidelines that correctly, was and work to societies, teaching do all on in with are, focus the We The procedure they

reason It's well moved doing a have what to really that's We've for think easier it's the procedure and we've are created awareness a make base simpler to a we needle easier the even this, going of But to use. be We and this of this, to use new lot a lot. lot really the broader that and clamp. received. we

likely And about that. so sometime year. we It excited are next will pretty come out

and at growth It and it done anticipate kinds in catalyst done open look complementary a don't XXXX that. – training the that past open into being sustain it can help it's revenue the the us have we've should to in XXXX. relative I really the of But work and to to really beyond. we've

Cecilia Furlong

And thank you see if you business, recently in how forward? well. business team cryoSPHERE What of any dynamics and you've just strength business? seen of you. Great, adoption, building I I guess, your in could areas as just ask sales about terms How see this this going

Mike Carrel

I mean reps therapy to and we that eight in hired Sure. up team. have clinicals two

force combining that are the a right about with existing leader and and or understands our manager that of people that's a hospitals that just XX sales So running then, job group selling now. They've done into. working phenomenal a

in. have just most the we have things been the at they how of was hospital that One level well impressed in the are that markets partnered

and a smaller cases, see the resection. others we doing cases, the so, what vast because we're areas some seeing some the really vast thoracic where of of majority lot markets. are those majority the that in A vast lot of in also cases that's seeing cases select some surgeons and are that’s lung we of I'd the is the but But that's that's today. in replacing majority say of overall,

of sales country We cases. other the combination clinicals members adding anticipate around expand also that next new can team, that support a both the we adding and team and geographies to year, as considerably

and more we data is support can So, impact coming do believe in therapy. the more it that think We and out that we space. to

Cecilia Furlong

a on and great Great. you congrats Thank quarter.

Mike Carrel

Thanks.

Operator

the line Your next of question comes Rick Stifel. from from Wise

open. is line Your

Andrew Ranieri

year time final probably and I Drew for looks a patients two your back of years to for have is just to patient might Mike follow-up, it's Andy, CONVERGE it one Rick of there wanted But the second. follow-up. hitting XXX Hi, at go like on tonight. about that

follow-up also comes will submit for the pool and submit or the we at it when will when time XX-months the see you that able you data panel be Just patient just to to entire approval population? you market from data see longer-term broader that the how think the durability your and patient And, translate a labeling ultimate opportunity? into decision and into FDA's do factor might just

Mike Carrel

Yeah, it's a question. great

the some all some be We data of data might will we basically access that to, panel. likely, presenting we that at the the, durability of have

asking and top out we think at good I this. mean, really as that's So of On a that, about are where feel all said confident there, kind single very of good these before, with when a Drew. you're center we kind I've of we data business as I question, very look are of

got there. that We've also know durable out play know the the We procedures to and big to profile trial all market XX,XXX use how and that are in year. also think both available is that's the the to are low, long-term safety we but low role. that in in get us is we been incredibly as going a forward data not use we it We next that’s only the move over to going approval

Andrew Ranieri

trial focus at heard enrolled. it. to that know then, Got saying right, is you I I I XXX over for the you. patients hopping LARIAT, big aMAZE just And a think, you're now

right announced XX to you target the But close not sooner? think up are deal. I is the patients XXXX why first You quarter SentreHEART and since

into holiday Is little of in there anything a delay is year? or are seeing you might it next that just kind of kind season slowdown, bit that enrollment of that the terms

Andrew Wade

You a the could and get out close are it done year. of it end and this question asking by we absolutely great

patient looks sense we pace. great because, year. very fantastic. But right am or what look We only cautious a are XXXX be patents for little bit now, in like. I being are on we could early the acquired just this And late it flow just them, a a getting

And we that. stick want guidance and The to is part know, with first again the just to in early for as sense and end owned that things give of And to actually quarter, happens we've a it. the like time in am you it's year this. I the what getting the holidays first

large difference difference what it between to after on gets it it make here. us frankly, XXst quite market and XXth, the are a really, on going the so, long-term or whether doesn't December February we up And done

on PMA We getting are the on on the getting back-end modules already work doing work, the readiness doing behind.

doing work the that scenes. are we behind all So

the enrollment we it's great difference it So not matter. the of the year. very out – are really days We've I by possible right. you in doesn't end am and had close Yes,

Andrew Ranieri

then, And Great. just one. one last

If I'd provide say like, Afib, to Frost on other data. you trials your wanted and some CCF separately, on an update then, indeed clinical of

a you or I when you a point you think in XXXX. maybe you've either that little at expected publication? put you. data before Thank Can on that expect might conference mentioned finer a

Mike Carrel

new and All to so explaining trials, as focus CONVERGE walking for of process our trial and We clinical the up sure on bit call acquisition wanted little aMAZE with is everybody this and right. about also bringing and on the that. data, clinical kind kind a reminding then to of making good talking are kind kind to of questions, of you really speed

as a trial open XXX said as enrollment. and I our patient you But that's to it's right, everybody, a reminder are

now our up months part to enrolled running really XX several bullish trial. We next the may that we and and about the add patients over and focus going schedule up over is early next got sites plan of sites course to-date. sites It's and what to of that We running. a get But couple of actually year. the our feel was, have ahead have we've more XX the

a the have business of had many we've with excitement, big is do that part coming It's submissions created of journals. data as a top Frost of Frost. another off lot of different which been evidence way have open of and mentioned knows. gather again various – the clinical more our On you We got within that, kind to everybody space,

the So anticipate at will and it in accepted major next one one we of be shows it those paper presented do shows. as year that an abstract of a as and be

it that on are It and comes or could whether trial. year. kind When in that's CCF, are the or others accepted be we patients. of not half XXX our these first in STS, That's the to of Europe at trial over of depends DEEP kind several the occur

are near overall we the terms so, in trial significance enrollment. And statistical the on of

then, is obviously sometime we’ll they early the wait the conclude end enrollment And will will year. our of kind then, more and have of year by the the in And – We follow-up DEEP -- one-year think, and trial. for US, and part obviously know that in everything of in that AF DEEP the then, the to is is I point one DEEP time. which other after the next hope

patients We’re total. at in enrolled XX

sites of so the that or got now. six - had enrolling - a sites seven or back are pipeline about We we We've months. next got we've six anticipate over We've we track. on XX got

feeling about kind good will trial that. for the and in of have so And that far very cases and to-date. into We up running happened excitement the that get

So, lots of activity. good

our well. for clinical question as other the within Thanks pillars, asking

Andrew Ranieri

Thanks, Mike. Great. the color. Appreciate

Operator

questions please further no continue. are time, this at There

Mike Carrel

again, off joining with continue treating the to today. commitment you everyone, the around XXXX us strong for as Well for another we fourth and quarter our We look finishing Great. forward Afib in people globe. thank quarter

day. Thank you and wonderful have a

Operator

today’s and conference. Thank Ladies you a participation wonderful and concludes have gentlemen, this for your day.

disconnect. all may You

AtriCure (ATRC) 3 Nov 192019 Q3 Earnings call transcript