ATRC - Earnings call transcript Q4 2020

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Operator

Good afternoon and welcome to AtriCure's Fourth Quarter and Full Year 2020 Earnings Conference Call. My name is Kevin and I'll be your coordinator for the call today. 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. 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

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

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

expectations SEC and expectations many filings. financial time timing, beyond of AtriCure's are procedure. Forward-looking to AtriCure's subject regarding statements. statements approve which launch the to will potential from but it include to are results may market forward-looking the statements CONVERGE differ timing results time including CONVERGE, response These numerous projected. obligation FDA uncertainties risks are of the adoption no in and materially AtriCure opportunity undertakes whether to from risks the review, AtriCure's publicly CONVERGE regarding CONVERGE, the those and any uncertainties limited of described potential control for update not the guidance, FDA's and

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

Mike Carrel

afternoon, you Good Lynn. thank for healthy. are that Thanks, and and hope you safe us. joining everyone remaining We

quarter future third our of areas past we fourth team resilience of begin of catalysts many XXXX, key revenues and $XX of the X% back sequential recognizing over look the to at with our we and business. the the million, year, quarter. and the the all spite growth for revenue our on nature dynamic you AtriCure meaningful for As In a challenging the in made horizon. business. the Total were representing continue by durability on XXXX, of want building will In progress dedication I

Following continued hospital cases to by after we the at end the These strong and said, return holidays, put both part cardiac in solid of led This driven and diversion result. the procedure of positive increased volatility we hospitalizations in constraints volumes pressure COVID a medical as experienced our COVID to growth in the began Europe. experience worsen the trends reduced uptick early U.S. see to XXXX volumes resources in quarter into to starting to on and subside. some as and an areas and quarantines trends volumes January, With of patients. some that are and as

surgery experience While for the we full of to expect variability will remain believe year. that below that some volumes trend and continue, half we this we upward will cardiac first the capacity, slightly

some last difference long-standing Since were trial our the we patients with Symposium. XX% then persistent superiority presented results trial. the last in group clinical month discussed catheter analysis with Last Convergent therapy, turning we with absolute vastly to ablation hybrid through the CONVERGE submission large clinical This for call, Now year, demonstrated regulatory treatment population. patient the in the a market the allow label a at hybrid On arm to seeking persistent XXth providing will FDA longstanding to completing Afib Afib. which differentiated XX-month in of arm our the The Afib and period. us closer longstanding the compelling the at of for effectiveness to compared made patient of brings in patients CONVERGE. accomplishments persistent Annual treatment option results process, us the convergent underpenetrated endocardial a to year, final beginning the our clear

was data alone this where significant difference While is catheter long-standing convincing effectiveness. patients the a at absolute a over for in returned XX months XX% even ablation, persistent more improvement

the results patients for incredibly than alternatives clinically firmly available are effect any these other and procedure Afib and more by encouraged standalone believe convergent hybrid has a treatment persistent consistent long-standing today. We pronounced, durable

know exact timing panel the top mind that is give do investors approval of we all I today. While of and/or not for

of of excellent EP-focused the However, We on we has of are look both, the front an many culmination throughout proud and patients long-standing clinical physicians update of this the patient incredibly persistent We for the and extensive Afib. population. and sales dedicated over forward U.S. become to anticipated have many launch tireless the the years Currently, and XX company we XXX in a PMA therapy. infrastructure to and -- champion pursuit us, of CONVERGE have look point, making this training underserved and the in of professionals the the in with therapy opportunity this work brought including progress this team supporting soon. team, regulatory courses. the employees specialists preparation developed on to The our AtriCure for and so which with we a in team a forward our collaborative. and for partnership consists been hybrid approval our both providing more built of by am FDA CONVERGE millions front than I approval education where in programs marks and future hybrid process reps of to of standard-of-care milestone anticipated productive us a individuals clear sales dedicated therapy support field, and to training the sales training XX convergent of and we nationwide

system our steps study designed to significant randomized-controlled patient plus trial aMAZE, a exclusion aMAZE XXX ablation trial. catheter catheter show took superiority our LARIAT versus of LAA clinical the also is We other The alone. on landmark

to excellent XXX put X final PMA the on perspective, a during We XXXX strongly our have and clinical teams in into is X patient trial follow-ups. patients endpoint made we believe now visits completed investigators this to of therapy. who submitted aMAZE To testament the progress this have team modules the to complete only FDA this and patients and and primary of study XX follow-up;

data. will our analysis April, conduct of to patient which expect after We the complete follow-ups we in

We are trial data this trial aMAZE targeting half year next the release for PMA and submission of submission. second and following expect the to our

are surgical cardiac expect the treatment EnCompass faster the EP As the clearance EPs EnCompass but The device directly has further not to simpler been of CONVERGE addition our of show of we AtriCure much market will in for approval. Afib. system therapy, the only the new commercial our not to procedure, LARIAT [ph] in in to diversifies the isolate feel high existing a the believe surgeons. made first Clamp to volume is the we this the will catheter leverage open opportunity This complementary reminder, And which mechanically and to the this solution convergent a the solution, aMAZE channel hybrid appendage procedures strides built hands to in our also toolkit, competitive ablation adding the trial ablation. LARIAT Adding and we the an electrophysiologists. is towards the leader market we able complementary, offer CABG anticipation XXXX procedures, that approach up system provides of heart the a ablating clinical Clamp By of and anything XXX(k) the many both be without bloodstream. in in technology open leaving for portfolio, it's achievements where our electrically like to in platform

in As a expect result, surgery penetration clamp new deepen to market. we this our the cardiac

concentrated followed anticipate shortly Our by later and thereafter. review, XXX(k) commercial launch and FDA centers launch key we is the this clearance broad submission to year, currently at certain under commercial

of history dedicated FLEX-V, both device innovative to patients. and XXXX. thoracic growth in for strong our revenue were X over with cryoSPHERE, Starting interrupted due products; managing which post-operative and COVID, there while Finally, the was cryoSPHERE our AtriClip pain grew

We label The chest pain undergoing to pain invasive of our XXXX have Our method of a launch several can X% unique XX trend half provides wall positive the the used to with for an cryo older. cryoSPHERE consistent sales and management of nerves the patients Adolescent for or in at ended it's transmitting pain. options manage cryoSPHERE patients approximately total therapy recently resonate sequential treatment years of opportunity nerve include adolescent help accounting severe for limited from expanded cryoICE for surgery quarterly after market label growth. surgery. revenue. younger of block pain a patients differentiated probe the probe XXXX following block our continues expansion with experience We technology recovery in first XXX(k) these a of to signals to least This months. post freezing

nerve block no in continue further management patients, stories with who This We about to is years. novel build addition coming pain AtriClip The therapy and and hospital from accelerated physicians the a young and the have presence by launched steady in home revenue the pain to are the field with cryo going heard launch. drive franchise. impact the year-over-year AtriClip FLEX-V absolutely excited first to are old, XXXX Despite our to the growth adoption therapy. delivered was FLEX-V our early in in pandemic, of and the clip versus XXXX indicating was strong it growth inspiring XXXX, since

devices innovative both therapy we shiny expect increased of growth the with boost use engineering over invasive and minimally development our to expansion of FLEX-V the our also trend The the and are have the and conversion AtriCure probe product We efforts this founded. spirit on was procedures, AtriClip which of decade. the seen next team, cryoSPHERE the which AtriClip examples a revenue and of hybrid

proud in our results pivotal incredibly our positioned the AtriCure including our growth. poised I to which strongly for many aMAZE, discuss will Now, historical block, Chief in laser part that, by focused are catalysts I'm underway the will turn to looking guidance Financial on growth remain on future. activities the more nerve ahead and our rates EnCompass; revenue now such for of over mentioned believe cryo expansion and to detailed with Wirick, we this from market drive we a and Angie are team moment discussion. to With the XXXX many call and a of horizon, all XXXX. further we the CONVERGE, We Officer, our be accelerate encouraged at

Angie Wirick

Thanks, Mike.

basis from XXXX revenue fourth down fourth basis, a our using constant quarter XXXX. minimally fourth the X% $XX.X the million, declined revenue ablation XX% on compared $XX.X the to On fourth quarter the X% to Our worldwide a million, third revenue experienced International the tough decrease pressure our fourth stalling sequential was Europe U.S. down We of reflecting in as XXXX million GAAP and in on a from a invasive comp our compared international quarter. and X% in basis, basis, procedures $XX.X deferral fourth approximately XXXX. GAAP of of basis, constant revenue conditions XXXX. growth XX% of when to X% quarter and was of a we products. of revenue quarter currency with of a more a currency on on quarter to the experienced worldwide

briefly XXXX; in We loss to at and based had the onset variable training quarter we compensation, travel results gross quarter metrics aMAZE COVID, line increased trial a million in cases. $X.X by XX an on -- lower bottom December earlier, the spend year. million basis from clinical of few on XX.X%, procedure which was mentioned variability costs, XXXX, resurgence EBITDA related each Touching the from fourth driven improvement COVID-XX sequential fourth key up Mike were of fourth positive for of As decrease and reflect $X.X margin results adjusted volumes the experienced followed in the mix. of increase to quarter of geographic of compared the by the revenue quarter; for largely adjusted and reflects a all U.S. stabilizing in to activity by the EBITDA impacted the this Europe points

$X.XX was a and was to one-time Our quarter the while loss fourth period XXXX per Fourth charge adjusted $X.XX legal loss resulting million of for XXXX net includes and $X loss share settlement. per share related respectively. XXXX, both per the each quarter loss a and share approximately $X.XX

significant fiscal XXXX. reduced million. decreased million, while a To expense, of $XX.X it $XXX.X this was and $XXX.X impacted excluded procedures cardiac pandemic. result our a from adjusted as per recap sales currency of of well XX% surgery both, of in of worldwide production heart full U.S. international in and XXXX absorption adjusted elective decline the the to This which XXXX decrease to XX.X% metrics. nature a in sales a X% a decreased was million, on Gross compared in was XX.X% basis. activity, constant revenue year; both, and our extraordinary the EBITDA loss XX% is margin by year a reflects XXXX contraction worldwide share center GAAP of Given period to operations as as

incurred discretionary XXXX. Total million with operating areas of SentreHEART $X.X liability and XXXX, and along in offset in year do decline compared historical X% full the an results where my contingent impacted recurring activities acquisition levels be EBITDA $XXX.X increase. to travel million the and cost for savings adjustments compensation restored to XXXX increase to fourth reduced event $X.X the exclude to in or by our spend in non-cash spend operating stock-based the to compensation. I comparability from travel, experienced the pandemic to consideration will turning and expect expenses year believe legal $XX.X physician in million of comments. from XXXX. slightly we from million costs by recorded mainly and XXXX XXXX, for trade settlement expenses; in decreased quarter costs shows Now million effects variable adjusted The $XXX.X were was as training, training loss Full the most We as of improves top-line and

share loss share per was was XXXX $X.XX in per the XXXX, in loss respectively. $X.XX and and $X.XX adjusted $X.XX and Our

of the manage our We year. line through bottom to efforts past company the the the instability are proud across of

outlook While mobile XXXX ahead. financing in there manner, plans of operations pay team from never a facilities, strong were we with several virtually our we ended net also later million as for in repeatedly our ensuring opportunities employee XXXX, We adjusted We year expansion finally, the for the manufacturing focus; or the our investments. from cuts critical the field-based of enable possible. and $XXX XXXX; expect and or in supported safe, adjusted continue of with initiatives and we our preparation year and a the patient and in job balance employees furloughs. Outside production inventory maintained our roughly growth lab team position. needs distant for our in million strategic Last and revenue our And or our to training resumed proceeds inventory where first investments person other customer million $XXX with no investments May, strengthened year. we of our our achieve to operating $XXX many in such sheet year to socially in and cash to with strayed ended in projects turning

results this normally several our we of given performance that year in stronger pandemic range as we our a downward revenue environment upward outlook, the with provide expect based there With While expected continued the revenue second would COVID-XX, the of dynamic the from on macro unknowns are level subsides. half trends. drive could meaningfully current or

growth year, XX% procedural to and volumes revenue improve of generally operating quarterly the normal, remainder metric for the this expect of We experience in to through XX% to steadily the are range XXXX. in continuing of sequential resulting

given the to quickly an provide X/X the first While dynamics ongoing quarter for we and to the basis, of guidance not want timing behind also on offer changing call with quarterly nearly first to us, the due quarter. of do guidance expect pandemic; we this

first approximately we for loss the line the first to the year expect corresponding an quarterly revenue million per experience quarter. range forecasted $X.XX. of heavier EBITDA approximately $X.XX $XX loss slightly to half EBITDA. anticipate top million to but $X adjusted quarter improvement XXXX, quarter up meaningful million, in throughout a the in EBITDA loss is the $XX $X for in $XX year-over-year. to of With full an fourth $XX year adjusted revenue to We loss million we million quarter share million down EBITDA be $XX improvements to to XXXX. At Adjusted for translates and typically should of of We XXXX of adjusted loss range to XXXX first $X.XX. a expect from and of per approximately realize expected first the million, adjusted adjusted be share the to This be losses

catalyst I At investments future. As success, closing we rich manage strategic the we in back for continue point, for business long-term to this comments. of to call support in our our Mike initiatives thoughtfully turn will numerous make

Mike Carrel

Angie. you, Thank

our undoubtedly confident investments we pathway and are fueling this we While was it operator to optimistic ahead growth. the about and end, over future our accelerating year discussed for on a revenue the catalysts focus many that and turn today. our questions. today. for executing past for that, we'll our that for Thank we To you growth for the with everyone, are us road And to joining challenge

Operator

comes Robby [Operator Instructions] first from Marcus with question JPMorgan. Our

Unidentified Analyst

the Robbie. on question. is for taking this [ph] Lilly Thanks for Hi, actually

be a to I CONVERGE how panel timing share your start, think with needed even have details expect little been And could by timing whether just conversations Thanks. or So on the to of benefit or helpful. regarding could now; on CONVERGE? expecting something in first were half regards color would So, a we you one still this without with panel, realistic add be it to any so any FDA the a to a is bit year? more panel you assumed hear progressing? would of the approval from guidance really

Mike Carrel

Sure. the question it's timing I do fair understand interest in a we and everything. mean the

points; looking -- productive we're as said, look the and in as about near these we're collaborative positive catalyst, everybody about a having; very call what and on we'll to more discussions, We know excited a little of or that not updating many FDA. a call, position the panel. the we've are future. the there We're panel you And and forward I've really forward the this very gave details As any very view on conversations today. two bit it's with talked we we no give that before in decision do on those they've with been

coming strong beginning that believe guidance to at really or I impacted in by back, so most see big as we back more the that experiencing; our things elective the anticipate and COVID companies we are the are going very continue. is to one to having some February have to COVID. January our year, for after look we growth do is come guidance is because to really start weak that a As much procedures timeframe we're did come,

That we'll continue the has and forward anything of be time this impact XXXX. greater And we'll kind COVID much with subside see that so kind associated revenue hopefully, move of for a at to CONVERGE able of timing than standpoint. or to from

Unidentified Analyst

Great, quick and what this thank you you. talk of of terms the the outlook And just can both us line cadence in a on top the through assumes follow-up, throughout recovery, down -- both any of would material Any quarter? give the helpful. the you you P&L? sort color half first through the there be beyond of you. it could Thank first Are assuming impact Is guidance year?

Mike Carrel

the not Yes. bounce signs see the seeing continue we're second be be starting things going today, year, of much back into given it's be as will the year the Therefore we're going quarter open half incremental We anticipate first than even starting growth, up. half of, back a to to that degree; of we that a believe stronger, but light what we're half and all of overnight, the much already back year of be through kind but half of as the progresses. an with and of the year pandemic first stronger with the to year the see to some sudden the back the we're it's us the to will think quarter, to today,

Operator

you. Thank

& from with Our Mike question comes Needham next Company. Matson

Mike Matson

my convergent. taking questions. guess I'll with Yes, start I thanks for

-- reps think that products you hybrid procedure. that XX on so said those now you focused or that mentioned I So, have -- you

really recent could the how those in in So material more can how that of this the So, many convergent? then, be ramp? of were sales something hired XXXX-XXXX? quickly XXXX? those we how going Is should to hires? many or about year launch of think And is are How it it be

Mike Carrel

Yes.

less give that So last over so that continue was to hired that a to than -- XX maybe or months, little bit take; people -- -- or that. XX We're course to of the the add it about the team. going over were say,

with the there. of Some of they were world, that team and LARIAT relationships gave insight came already from very over as team into well, the great us kind a EP familiar where

So, kind standpoint. then that and we've from everybody cross-trained of

we'll to relative on So the not for and for CONVERGE, to continue a of about grow build for the issue CONVERGE. I going also it that market; going we reps anticipate biggest we do kind go be one, we're it's we're number of in bigger really we've the impact good sure. to everything build that that COVID's mean got position, the The year to begin COVID. take is we to to market. solid really to approval, to -- we time but need prepared get once ready, out really

awareness And XXXX. got up have running, the to to got we've so new will sites the train impact get we've there, that's the a and great create surgeons; on it

As historic do our comments, in our the my -- past. seen seeing historical we mentioned anticipate growth in that you've I growth accelerated revenue revenue be double-digit you'll over

Mike Matson

you're thanks. or guidance you little for And it's at the Convergent that causing to just given than least more or your making are be expected. then, something -- things investments happening that COVID? Are path you prior little LARIAT there a to that prepare kind a just this -- I more are to to is that or of EBITDA negative on are other year, have would Okay, launch negative on,

Mike Carrel

you to numbers, year; year investments new from to going we when of our at we about the we we've if about we $XXX COVID revenue. look anticipated million similar last -- begin as The year lose last year year market. into it's last the for to and of to balance to year a this kind to there we've and the it, we of that standpoint; are had. so of going full last investments said is a got now from to hit of strong we'd just that saying thought million of was last mean, much going I rollout to beginning accelerate Obviously able we're better this actually be that and that edges that very us, year very full at Obviously, we commissions handle on we same ready money Yes. savings our aMAZE; lot but be bonus the the number; that getting that of sheet the doing really have about from from around that had loss CONVERGE are make anticipate year $XX standpoint. we're last on got we're gave year

$XXX we obviously, ourselves handle in several as making in that there in of incredibly and and to trajectory while loss obviously over feel we to strong is so the team, get the cash, can around will that to And major kind years. ready we get again, the the balance this be investments pipeline million next investment. and back ready we catalyst so is of we've like we're growth our edges; on on of level got ourselves an sheet XXXX, But coming accelerate it's a those for some

Mike Matson

you. great. Okay, Thank

Operator

Our question O'Brien Matthew comes with next Sandler. Piper from

Matthew O'Brien

with forward there more discussions can Is convergent is revenue the that Good more they're just about? incrementally are give the this benefit that selling then, anything be asking long-standing know but that those that as questions. lines? afternoon, include color concerned for have laid of doesn't Mike, they just that incremental incremental approval already move no And you're you far from clear, the I lines; is bit taking any today year. questions there thanks it along to anything a guidance year. this FDA, along kind the out you those channel they persistent little to into really the more Thanks. the about; pulled as

Mike Carrel

And I guidance Matt, number we impact said with revenue year. we incremental at going sitting for all into happen, is around so was the associated I approval. baked it now. much -- didn't say that this, right include -- impact our see COVID's COVID's believe it's to in anticipate and the What what today with then happen $XXX the numbers getting to incremental. to you I stronger an get to be number include any our mean, the all what's overall million. -- CONVERGE didn't what that growth

you're kind we're what today. Overall, strong that's good solid again, in off last of the on of a in basis. got the discussions FDA, it's positive with panel and of the everybody and year-over-year We with out mean -- two very able I we really And growth that's to be obviously we two within mentioned, coming of as very the terms one no The So seeing of for a feel, update it's having XX% like are are very I [ph]. panel; great number going that paths the with year; we've conversations paths FDA, kind hopefully, will year, and position. collaborative soon.

Matthew O'Brien

you're you year, had And assuming; last then. I far as this I XX% back again, quarter then -- I about that think volumes talked coming push further the XX%. was to as any won't Okay. Mike, it know

just far as than go love kind bit in the adds far underlying a expecting to for as we'll clips on better as commentary you Looking of seeing business? are rest you're the that what any little that range, of this as hear And the year new the account volumes etcetera? and

Mike Carrel

Yes, XX% see surgery see year improvement goes we'll to as for on. the Things a end of that; that the we're in sure, resurgence to hit are will got so surgery -- a we there was anticipate about what we're cardiac obviously that's it of to to -- continue hospitals this think the hockey It starting opening XX% bit little of year of happening. the impact is kind when seeing treat volumes all patients. year, XXs. but our we're lower the we're make are a and the we'll impact I working came is up being that think cardiac get at I our it getting biggest to that but back, XXX% see through From by improvement incremental to you're these range; stick, now standpoint, do don't incremental back on I up that of aspects end business, the don't

Matthew O'Brien

and Okay. using sorry, be essentially, I'm averages clear and that just just on here. to I'm so

basically XXX You're you and what about [ph] saying XX% over of the at that of year. course the saw is typically

time to So that for in -- meaningfully fair? adjust be it normalized than would that; a so is higher that

Mike Carrel

closer are [ph], What the what a it think cardiac yourself not doing -- surgery to to it XX% the and -- were that come that XX%, and that, to and I'm between saying kind you're cardiac the is hospitals is, surge going -- or there. throughout beginning -- for and I'm at bit little into the you're came of and they is that a math quandary kind that. that volume cardiac are today XXX that's so around end back put surgery when volumes sure, you're incrementally I'm saying to moving -- I surgery of XX% probably improving, back probably I'm during they're equating they

do you getting beginning and you math kind got that and to sense what to busy. is more and back all a the remember, hospital gives of of if equate; it so for try move is businesses, -- on into kind in that And types we've of multiple

as our that normal, they you if And growth would to so, Obviously, I business that upside things context. be XXX%, get to get us revenue, -- would back for to some upside be gives for but -- hopefully back that sure. a

Matthew O'Brien

Okay, thank you.

Operator

comes from question with Stifel. next Our Rick Wise

Unidentified Analyst

the actually question. on [ph] Rick. this Don for Thanks for is Yes, taking

the so follow-up of seeing COVID far. you're quarter Just the trends one kind on in

the just that recovery? seeing; of then OUS XQ? on differences geographical you're for color five into And a between more kind just and OUS impact any give modeling what could any also business, you If you're seeing

Mike Carrel

business of of surgery volatility, see portion the chest CABG portion Yes, it rebound least we're kind -- the I cardiac for general, that least open -- you mean is kind growth as of the has [ph], the out that actual of but also we what part, our has in valve that things. upside kind of

they during be the will cryo so as back of giving back, players elected but to of kind back us of you that. strong And say portion be one case of ones the throughout bit, to be MIS but for coming come were surely they because initial that portion hardest and are well a that got as Elective business. block that I'd the the this time little that's hit they hardest continue of anticipate the got during and COVID, move context of period our the also slowly year. kind we Clips nerve it, we to procedures very the and

Unidentified Analyst

Got one it. then, clamp. you. just Thank EnCompass And on the

[ph] to you positive with accounts impact trying lot a in higher think relationships sense been approved, said place. quarters and Just you've in get see a sales the how volume growth business? teams we a I quickly open already that in may in have CABG of these prior have once

pretty kind So an be uptake. of the seems looking could for it like me case to use if it's they're tool quick that easier it faster this, like to

kind of So, just around any color that?

Mike Carrel

digits, digits anticipate to do it's continue mid these Yes. single that, to EnCompass -- in in to we double more that that rate obviously the of any because Once clamp a enable to were solid and been low market And got those open the achieved before; we're continue we're that cases high been and of kind are of quarters growth we core it describing allows general, have us really into clamp not critical I get way about that a to we've once surgeons the normalized volume doing more got to you mean penetrate our the but business. rates is, us the the get we've in kind before. the growth grow normalized we've you at get that that to EnCompass COVID. because that's volume

then clip, opening are force be aspect for going rate what [ph] growth The growth to also that faster of us, another not gets have, are -- to basically eventually, is business, our the nerve be I up faster now, us us foundational sure many and approved accelerant that growth will obviously the be and EnCompass business -- years therapies the aspects that's will will cryo that when invasive enable LARIAT that going but to accelerators but the continue as minimally from growth that think the block, the market, that's as we then well. do growth. a for that and mean, we're to it that the we is So to

Unidentified Analyst

Thank Got you. it, makes sense.

Operator

question comes Marie next Our with Thibault from BTIG.

Marie Thibault

cadence some get evening. had in some seem do would of year? in commissions this and it QX on as LARIAT thank some with for the you how to think wanted Angie to for on to that and I to and the the to SG&A; a throughout I'm further thoughts step one, get end the of things for the for as And had certainly taking and expand Hi, look of bonuses those the sales the questions built build bit possibly preparations whether up year the you at SG&A well? in guessing preparation some of about of But perhaps line the CONVERGE. just

Angie Wirick

Marie. Thanks, Sure.

timing I we SG&A you're of an XXXX, to looking think reset think into other at costs plans the to of new year. uptick the second and half the that's are tradeshows bit we marching in the way half when in typically There the of orders. see first are items the beginning about where such as year, of a kinds they little heavier and year, the

In terms throughout the catalyst year continue to launch, preparation longer to some expect term. the we of launch, of other EnCompass the the investments CONVERGE investments, in for and make

over when overall. declining of the of kind year spend levels course say the to thinking look I'd you're but So, historical about

Marie Thibault

want there. I just I'm impact XX, helpful, more some users from really did absolute them benefit current not of I try in benefit ask the symposium sure of but ask, seeing more as of to that's you're of what large Okay, CONVERGE; And appreciate of aware I'm it. to that FDA that terms some on Angie. certainly data? then one going on to to

this point, seeing many might importantly, mentioned sites idea with new then, at that how you're -- targeted; give procedures we up be sites you rollout that maybe do show an see of benefits. the new If would more CONVERGE? And that us you in can you of

Mike Carrel

-- new, community just session it's say -- happened so getting the scientific benefits was about is persistent wouldn't obviously the peer-reviewed with relatively of the at I for mean lot long-standing amongst a but chatter presented the lot one volumes it's patient. time the was Delurge [indiscernible] kind happen community. a for you're surgeons weeks [ph] conversations yet I and the the EP sure there with Dr. that didn't within first both that Yes., of compelling before, ago definitely our affecting data; and is where who electrophysiology significant and it a more that discussion the presented several with and was it's --

that's kind that some about it And you volumes. generated at this ask can question, say along I'd point not So, but really me, group the discussion time, it procedural of necessarily in remind Marie? second

Marie Thibault

hope the current kind you no of what beyond to less more users sites, New [ph]? target,

Mike Carrel

Yes.

that we'll targeted and one So to are expand; that and after the within them existing what can every that trained market also we'll add to have so way from targeted of be in of they new be sites running. the our so they get sites kind kind kind up did that We've as those able methodical able standpoint, a of we we of -- reps know once area. approval, we them that go on get very

and we of each can you can different that at we imagine get that that when some XXXX going sites and them of get to so kind is accelerated to at then many get their they and we right, great from we of that that's prioritize looked sites for of what to we've can they we The time. from with they're start up That's seeing other get move one after, for go first, and and they've territories, So additional there. learn will we will best-in-class, then keep them doing growth sure, the got can we right, them kind good kind enable begin sites and within believe years. then of patients, see running procedure that their accelerate at build thing this -- on right, can prioritized effective that to lots we started that talking results, about about that and safe continue make those, to sure we're --

Marie Thibault

so you All right, thank much.

Operator

comes question Suraj from Kalia with next Our Oppenheimer.

Suraj Kalia

Mike, you can Good right? me afternoon, all everyone. hear

Mike Carrel

Yes.

Suraj Kalia

Thanks. That's perfect. Mike. Hey,

just I on been of there did go you when CONVERGE. have So, questions I delta hear I lot asked; said to forgive absolute at between two wrong arms the months? know XX want a XX% Mike, a to you was me,

Mike Carrel

That convergent the And was months. in is approximately correct. arm, arm, it around it in basically XX% was was catheter-only XX%. the success It approximately XX at

Suraj Kalia

belaboring I for seen Mike reason that's XX% this, a the delta; the least I've So a convergent at deal, and arm, forgive is, ask never big clinically. and me

span to you went from, arm what from XX went help XX is of treatment from, months, right, ENDO-arm XX% to something? XX% understand say months. So around a the saying say, within to me And let's XX% the let's XX% six months are

Mike Carrel

[Indiscernible].

Suraj Kalia

Mike… And interesting. that's Wow,

Mike Carrel

we've why pieces that's the to of durability and seen; about the the that's And what talk compelling of we one procedure, that's it.

two we to together well and other's As procedures to they it's a devices that remember about and kind working -- get the strength are complementary, catheter conversion the better play together, really -- the catheter really it's -- result. of work the each is or when the two

Suraj Kalia

make AF, a of XX% be recent, this AF and more within assessments delta? the position persistent any absolute I'll Mike, about persistent to in Right. long-standing context

Mike Carrel

say... sure question you I I'm when the understand not

Suraj Kalia

So…

Mike Carrel

FDA Symposium; to guess the is Afib the obviously, was the that that's I discussed -- so and we long-standing that data for persistent. at presented that

Suraj Kalia

Got it.

maybe initial back Okay. the question hop And and in Mike, and in in the I'm different asking same queue. flavor just terms centers of a I'll

the you metric taking but just existing you're centers, Thank in want know ground, of feet you think I reps, your consider trying CONVERGE what client questions. For my I talked do would base? centers use; the low-hanging -- fruit but to many fruit? you existing you whatever low you how as about your cases, know for is the on to understand. Whatever hanging putting

Mike Carrel

have most then, our path. believed EP existing this one referring; small in this, cardiologists On huge. down only group a so in because it's and going maybe they of the they because or harvest that is And -- started to base you client long-term of

expand like to do which there low-hanging that -- expansion expand to I within Now group. sure that a approval the already network, do a compelling us for it the but surgeon. referral are got existing so of is already se, per -- prioritized opportunity that the EPs in significant and it champions to get I And very do expand it market there don't once we've we're sites we actually that good cannot and have that community; we to data, trained the kind know few expand already one think at feel least know to the -- we those we've today, and wrong fruit allows is that we is able EP word within what that base, has sites,

going definitely that we go we're after So for sure. after will that;

Operator

you. Thank

with question Leerink. Your Wang SVB Rebecca from comes next

Rebecca Wang

as this data look complementary two efficacy into gears invasive from because or Danielle business? And Antalffy. minimally I year. think an important for or with to competitive should adoption? what shift more approval with, will and that I safety to importantly, to cannibalized [indiscernible] this Thank relates that should actually the you. [ph]? we business, FDA we this Will is be aMAZE -- about Rebecca coming be To a little trial for Hi, mainly LARIAT it bit think for catalyst value-add how want just begin is is that up we especially later data

Mike Carrel

Yes.

thanks the Rebecca. questions, for So,

community, So their relates a give the their the physician way And assess them whatever let it clip in patients, it to for [ph], to it's we is; and approach the their best us market believe as interest for patients. options we to we complementary it is, the because allows EPs, it. talk

Now both, the you've at appendage. mechanical are isolation. the invasive -- them epicardial, to giving be They approach able exceptionally or of we're well which got electrical less both off worked a the clip; have advantage they we both the closing LARIAT, give and will is and percutaneous

do the LARIAT money how benefit so per sell different, both are so not and The to how they those pricing down of comes have benefits is procedure; that gets that's to it more to that, It we devices. going allows And it; want but to of from use us it. really would conversation. we're

and going on them to patients. based for what's their give best are an and as choice to it institution option sell be for going the We their

the know LARIAT; The also mind for relates trial. for numbers to top data trial fluctuates exact but particular we're I that it provided be was a that it to of be trial, to people. looking many data because benefit that superiority a giving As obviously for not we're question would -- designed that's on

it submission. we at of looking a will that our that's for, FDA kind what looking trial, we're believe clinically as superiority So go both and we're relevant for

talk be you're we do a so this CONVERGE, -- of going with much think a what And want that's it we achieve hoping achieved It's I a get kind about to well. the going to look we CONVERGE for to sense where did was like to superiority so XXX-patients trial, with with that's and X.X in as we're [ph]. what -- can randomized you critical,

Rebecca Wang

Thank you.

Operator

to I'm back And to at the not showing Carrel. like turn further I'd questions Mike time. call over this any

Mike Carrel

you everyone interest your tonight, Great. us and for Well, thank in AtriCure. joining again,

excited going next about with in the and we're future progress the mentioned got interest, we that FDA, decade. catalyst look of we've you clips many right we've but the just for We've the soon. and EnCompass to CONVERGE, year that we're the for you, again I us, really aMAZE, before, both front in this where nerve made exciting not for now and Thank and block, and forward an to in the the As cryo future, got market. talking your with

Operator

presentation. today's conclude does Ladies this and gentlemen,

day. You may now disconnect and have a wonderful

AtriCure (ATRC) 24 Feb 212020 Q4 Earnings call transcript