ATRC - Earnings call 3 2023

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

Operator

Good afternoon, and welcome to AtriCure's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded for replay purposes.I would now like to turn the call over to Marissa Bych, the Gilmartin Group, for a few introductory comments.

Marissa Bych

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

remarks received e-mailed please let to you the not to (XXX) me have that one statements. have you.Before company's you a call copy, XXX-XXXX remind If forward-looking include we begin,

measures, statements filings. are AtriCure's from initiatives, AtriCure's These future but which time statements expectations subject many website.With specifically reported constant to press EBITDA adjusted basis, to in financial uncertainties is guidance, in a time obligation approvals, not risks and Carrel, regarding revenue beyond measures available potential measures is numerous franchises adjusted and and and to over update CEO. currency with included clinical expectations no non-GAAP include, control, risks President our I per directly for of Forward-looking uncertainties, growth are GAAP statements.Additionally, these the Mike and of the release, publicly from to which comparable reconciliation and those including and results financial the call that, described financial to share. to, we A reimbursement our projected. company's limited loss forward-looking on would are AtriCure's AtriCure may product undertakes most materially market non-GAAP clearances, the any on outcomes. opportunity turn trial differ refer to like SEC

Michael H. Carrel

growth. activity demonstrating the total broad-based representing am announce drivers.In year-over-year another to we the achieved delighted our strong global thank I AtriCure, $XX and revenue us. afternoon, for once joining million, quarter, Good again for you business XX% third quarter of revenue in and

management postoperative of of our atrial pain and management. continues team fibrillation, for therapies adoption Our the promote awareness treatment and LAA to

approximately are sustainable gross in top million, and third our $X line, the these In remainder As of strong of and quarterly driven positive a achieved markets, million, XX%. impact the we forecast now reflecting the adjusted of the our full by on also the year-over-year EBITDA patient growth confidence light driving year, revenues we of $XXX quarter, we year margins profitability. increase to our in of in investing to to our XXXX we increase future.In results approach million $XXX XX% disciplined

In anticipate XXXX $XX adjusted $XX million. approximately to million to now EBITDA be addition, full year we

detailed Clamp the As business, there rates more to our ablation in preceding growth we decade expanding to the untapped strong. progress achieved accelerate this our on starting our while franchise. in we still continue in serve. significant to ability reflect populations remains review incredibly profitability.Now is remain year, the large confident over opportunity We EnCompass the the from turning with open of a Growth that

leverages is feedback EnCompass and efficiency System ease of the Our exceptional, open simpler faster Ablation provide in the of use of our device. underscoring heart Clamp ablations and with to Synergy procedures. many technology proven the Physician

EnCompass a the worldwide For XX% open $XX exceeded drove sales platforms, with million, ablation quarter in growth our second and legacy franchise. along row, our in

the and appendage with future technology we So remains of open franchise in about our much the Afib and data management. with to products.Shifting surgery, cardiac clinical on this our abundance with combination cardiac are to of opportunity -- treat optimistic proven

geographies. revenue year, Our reflecting open XX% XX% procedures in adoption representing of be overall both AtriCure, minimally grew to critical quarter. catalysts the growth prior the and products over invasive for continue for Worldwide revenue the heart robust for across franchise

our of millions therapy, time, combining hybrid expanding line we market.Turning this due surgery do we have than fibrillation.AtriCure of initiation million commercial technologies less preoperative addressable suffering was hear of expansion cardiac of X have franchise V remains the this for of these device, same of innovation pursuing our to growth actively for not long-standing, evidence cardiac persistent holds use progress, a patients opportunity patients in and for largely worldwide epicardial unlock by enormous to patients Afib with defining AtriCure's latest increased we're the ablation of a also patient a technology stroke represents AtriClip X/X even our expand endocardial management.To technology FDA surgery. AF room for the market AtriClip a trial diagnosis, basis, endpoint plan. in and benefits the continue approved treatment clinical to broader complement and LeAAPS the persistent and markets trial ensure our of seasonality. from expand only LeAAPS Afib At clinical care study elevate site long-standing, sequential to product easier hosted a to new more yet at following patients. year-over-year the surgery. atrial in several the development globe all saw and our the in meaningful to history benefits have we our that position the XX-year ischemic that sales developing risk stroke ahead FLEX enrolling We're an stroke of supports ablation. it are The expertise systemic X% The now represents a standing hybrid LAA only the courses devices worldwide. primarily and understood around invasive of these unique which is Our with will driven in that compounding, see from belief on Afib to and well we the physicians atrial primary slight and the trial to is market rapidly where are is in the prevention.Excitement Recently, demonstrated continuing forefront globally arterial embolism growth reduction well of in decline that

asked these field, innovation about to by We PFA, endocardial is we with the Afib pulsed the paramount as activity our and for we approach medical positives, work ablation, with sources partnering or this like to therapy much impact and frequently therapies. efforts potential tailwind AtriCure, our ablation everyone workflows hybrid goal early the in strengthen believe channels of it and progress support it opportunity, the Therefore, on efficient remains efficient brings and of shown while are the complementary, encouraged for field Hybrid a program the of has procedures. awareness are the more Afib We referral of building AF their robust a is conversations ultimate are broader importance are and used market.For development massive to market of of this we other for treatment to on encourages PFA. with scalable energy adopters The in topic, monitor all focus in endocardial customers. base device

for durable growth headway the In the remain and worldwide moving of third activities making therapy. cryoSPHERE franchise, our are the a AF to around driving in are number adopting world. the our Hybrid grew that revenue and is optimistic We robust foundation record of the pain future.Finally, growth probe quarter, XX%, management establishing our accounts at strong where

see penetration procedures. in We to continue drive thoracic to opportunities

limited rollout Cryo began in sternotomy. a also We of Block Nerve

in our and modest, of from there our cleared While are enhancements to procedures which probe, FDA. points by new believe we meaningful was that is platform, includes differentiation announce about this cryoSPHERE potential recently pleased very uptake sternotomy next more growth application remains in are to generation learning the here.We the also

to look record our even generation of patient an of in track that to XXXX.Now outcomes ease to showcase launching in technology United first and cryoSPHERE broader forward device exceptional I shift top like the is in in from many prominently which We this for my comments expect to of area stock more is and would the mind market, GLP-X. States the use outstanding new investors

of a and today. patient there potential are What market yet is atrial long-term excited class of is this the our epidemic we about learn benefits know market about impacts the and do fibrillation We that more therapies. to global of is core clinical

treat Afib and will patients risk rapidly. over is dramatically markets Anyone patients. AF million of longer likely health end that of and a interventions Afib In regardless population progressive becoming as in develop making XX their worldwide, will many of coming progresses. more are disease increases medicines. with today, researchers can It growing and risk progress, we Afib disease factors number more we this the are multiple risk the is it also our with likelihood Afib cases our people and typically focus other factors fact, many a agree.Another treat the and harder the disease, living comorbidities, predict Because durability patients and the to hardest reason is have there or rise feel Afib. in serious complex the age, confident of is a on years, These triggers. to advancements user in

our hundreds of specialization solutions underpenetrated, each both envision at as surgery there cardiac growth Penetration to managing cardiothoracic growth. steady virtually Cryo with we markets, thoracic Nerve our in procedures majority the arising years each a of long-standing, standalone year.In are markets With less we see patients postoperative of millions treatment in Block expansive solution pain, this as unique Afib, have to cancer of avenues have in substantially are which low. Afib. We a our from where including therapies of trauma well for in than increase future in procedure a AtriCure, many X potential concomitant Therefore, addition and market, We for ago. for of patients untreated, nonexistent for persistent remains remain underlying and was substantial cases. treated thousands continues procedures and many and

of and trial with diversified such unwavering conviction business, drivers, a of is building applications.In LeAAPS the investments and through user in therapy our and in about commitment profitable in thoughtful our growth. clinical as to thoracic emerging sustainability pain maintain are markets research portfolio which We we HEAL-IST our closing, complementary end outside management in strong our evident

ahead Additionally, CFO, set shareholders.I several to for growth our efforts meaningful, call over all as now foundation for the opportunities turn for more our Wirick, and profitable of research long-term AtriCure we for details our Angie performance. financial will our regarding see the development exciting

Angela Wirick

Mike. you, Thank

was the $XX.X in XX.X% across variation customer up On increase XXXX the of basis second quarter X.X% the million of worldwide U.S. a sequential currency third third from third continued on EnCompass strong constant underlying propelled on worldwide normal seasonal XX.X% contribution procedures of of across decline to products. XX.X% sales business basis when a of the ablation expanding million, were experienced reflecting and base. to we quarter during reported from and XXXX XXXX, broad in $XX.X Clamp our million, adoption Open of revenue globally revenue a by a performance steady basis, the attributed $XX.X and XX.X% quarter, months.In Our XXXX, XXXX. portfolio a compared over an our quarter third increased revenue product quarter of summer

that markets and will several sales management and X.X% adoption.Pain to the concomitant therapies of Procedures of quarter. the trend up the the higher sales adoption procedure at other with We International the Asia the volume-driven revenue. appendage continue in finally, market products international driver quarter $XX.X XX.X% adjusted with existing estimate increase continue our new as of benefits Clamp basis of administrative to sales or the the in EBITDA second favorable general minimally from increasing clinical our in realized basis quarter, $XX.X year, to up of quarter, of operating growth.The reflect growth turning addition trial contributed in $X.X LeAAPS operating up was XXXX. for quarter invasive XX% progress for $X.X expanding XXXX. this a increase faster partially major growth third XXXX. projects.Adjusted well positive third uplift growth Research increase in up as We third of year-over-year, expansion $X.X for saw constant in currency on well accounted accounts expanding were $XX the development in from the third than of of quarter expenses was million, sales ablation was was our for U.S. by well production unfavorable of were totaled from and as expenses markets activity case a quarter to in this million basis EBITDA an EnCompass the XXXX.International margin million, to roughly points X% third fueled XXXX. product rates.Our compared which in our outpacing $XXX,XXX the quarter million XX% research was over the revenue pleased $XX.X as over reported are personnel accounts. compared the development support $XX.X a efficiencies, favorable change of Pacific the increase from a million, XX.X% as mix.Now million be revenue European expenses XXXX. XXX on product million, from expenses currency of was quarter and offset gross expected XX.X% in open by quarter third with quarter the ASP, million XX.X%, And as U.S. across this penetration per exchange and our quarter teams and and costs. XXXX. while enrollment new Management XX.X% geographic Similar for a growth selling, was as to were million, a the development and the XX.X% negative within well of significant $X.X an in deepening We of

in ended quarter the share Our adjusted and compared third with basic balance loss of XXXX was XXXX.Our loss cash and strong, the quarter quarter $X.XX the as million well $X.XX as of per per in remains $XXX as diluted third net sheet in we to third investments. share and the

capital and This we expect an third inventory.Now revenue to our across the $XXX increase burn outlook XX% XX% quarter's ongoing reflects associated over as for annual million the Considering to approximately to our XXXX, our growth expansion momentum well reflecting cash approximately closing as year in for of in of our XXXX. full quarter with operations results investment business, achieve modest XXXX. million $XXX with manufacturing

with in to of growth sequential of and We global throughout future quarter product the AtriClip anticipate drive implies trial leading investments accelerated to and fourth remain that quarter growth focus in future. LeAAPS and fourth the while of XXXX AtriCure's for have enrollment finally, long over research We our spending of commitment as for mix achievement ready third we revenue varying for guidance to similar full our areas in the growth XX% anticipate be innovation investments margin Our well drivers portfolio over COVID. slightly expanding growth.And history be confident achieving from mid-teens we of for and above include geographic next impacts development activities potential expansion quarter, the continuation performance. gross now progressing costs on evidence delivering increasing our the to of products and to into new profitability as year that prior rates clinical support to leaning of shared breadth development we devices, both we XXXX, IST the development launch level we agenda investment drivers get in growth.Key and site new across maintaining the research therapy the elevated in expect and are To end, many an clinical and product platforms. generation our as and franchise

while year an $X.XX $X.XX.We XXXX mission meaningful gaining have proud business. we adjusted our be include plans share and development initiatives franchises. in the the to per full in $XX are market $XX million, leverage global EBITDA to growth our year to expect targeted loss XXXX Additionally, we of to full Therefore, across corresponding in for our extremely approximately approximately advancing of adjusted million thoughtful commercial our teams progress made

a exceptional As this dedication. we collaboration year, AtriCure entire for team and thank truly out we the close

powered beyond.Now, strong our our in outlook success continued belief and back XXXX will call turn business for a I Your in Mike. the have to a efforts and XXXX and

Michael H. Carrel

Angie. you, Thank

potential turn of profitable We more We to We are our the to growth one existing future addressable over expand markets and delivering excited being Afib, our part we'll in our treatment to ability lives prevention further future a globally. our markets we you confident profound about AtriCure.With it remain that, making Thank of questions. couldn't across vast of franchises. journey. be as of are standards management to of for transform of establish the impact patients a the every the and care and pain committed the in stroke on work of and

Operator

Thanks from Great. [Operator question Instructions] much. so comes Morgan. Marcus First Robbie at J.P.

Robert Marcus

and really high-level a for launch we is into me. year. in XX%. some Congrats any here? thoughts had Profitability to starts Clamp Two thoughts XXXX EnCompass on the Guidance, good the head on Just momentum Any the XX% as Maybe quarter. to you've early start, annualize coming to nicely. through good preliminary trends?

Michael H. Carrel

the far Robbie. momentum the the XXXX really built. feel so for And we pretty continue like Thanks momentum we into about strong and Yes. feel yes, we great can quarter And question, we've across EnCompass of let's volumes seen mentioned that. increase kind That of the one definitely because on We've a Clamp, been every you that our much hit launch. franchises.On great area. first in that has product

pretty as think to on It's I volume already much much a into big we more next us lapping go year. you're pretty on we're that those markets more side of into end things that just markets, for about price see game, and penetration the and and we after. they're talking enter

it's going business. solid without good it.We and year too into our in think we areas the the a believe other also same of So on strong really getting specifics be in to XXXX many

to building we're on be in good of On well.So Block look quarter-over-quarter. side, had that place. and it in sequentially, some the accounts year. those see strong we the really some But getting Nerve to the heading into that Cryo we're going like build feel hybrid obviously feel board, traction terms QX really like We as we year in starting a number to in -- we stickiness of last seasonality degree. a well. we're across thing When next I same affected see accounts, think on believe as on and we'll QX you And

or our we're to we to number prior grow XX%. for XX% at specific pace believe an commitment than at ready Angie than but basis. in what give in that faster XXXX. what going that that comments, when pace on faster did that XXXX a in believe COVID As overall a not we'll pace do in We to like going looks we we at kind faster a grow of to mentioned guidance, we're is her that to grow a going were that We're

Robert Marcus

helpful. Very Great.

want quarter. Second pretty beaten spend At positive first, it's for Clearly me, when. second then EBITDA, a nicely. on because It's I it on profitability generate can the positive you adjusted trend. was to minute a

we're moving I Now guess how much. to

one-time about moving margin, And So SG&A it spend, elevated move the right as quarter improving impact gross think to as we would in about way leverage, it still any the we forward? think forward? R&D that that is items

Angela Wirick

I hear got those correct. one each you've I the Robbie, to of think and we calculus like questions, think

margins to would of that gross XX% continue the expect We operating little this enhancing kind can -- expect with continue investments you're elevated we and to continue beyond year over coming and a strength of future. in level an that kind in then that for in we category think over next spend. specifically, seeing of the if the years I the SG&A at good And to that. in R&D expect believe year do business level, would and the prioritize not that leverage

the correct. got you've I So think calculus

Operator

next comes Canaccord Bill Genuity. The from question with Plovanic

Unknown Analyst

It's [ for Zackary ] Bill. on

are the year in that any be will smaller Any than usual? at grower products not QX, kind and that expecting full Looking specific that of be or might regard? you geographies a there seasonality larger or

Angela Wirick

said to growth I for of been the that contributors growth in leading quarter. the to have fourth as kind prepared business be the of of Zack, in the the No. same this comments, year the areas rate we kind expect the

that So in quarter unusual, or regard. the nothing call we I'd to out from that fourth would say, nothing expect

Unknown Analyst

physician improvement, I workflow my Got can that is, it. like provide contextualize the second how that? EPi-Sense And impact guess, question the might P&L, clarifying. for color more Thank you, or anything you

Michael H. Carrel

passing the with do how -- back the and getting across then really business across the make And of the they're of them they being of that and the work as that hospital, which the piece of consistent more facilities how to long-standing, is kind persistent, really a lab, patients. decrease workflow forward, gives we're this revenue seen the also understand close handoffs EPi-Sense, patients good what when workflow, so each with dramatic EP. enables sure these need surgeon in worked EPi-Sense move treat the Obviously, saw it.That that on seeing we're of to logistics is the on procedure, that that treat much every clinical reality, getting those to obviously being not us efficiencies the they difficult them they us. best with doing savings. little to from In that treat the EP said, it's really provides with done them over are to more at seeing trial, a hour than do workflow bit maneuver country more is that it. these we're but every time today should because It drive results kind to the really definitely one they to in of we consistent spend efficiencies, and to kind hospital have which an that we've The EP, and to really different site growth long-term patients, Yes. In strong, a more that's for we've to the patients. time these that

taking these companies reducing wall we're seeing you that that see companies by you're patients. lot time with of out a and business the lot getting for going of so that they're of and much catheter with lot how some it to back doing work. having to the these of an the And by a contribute more help increased workflow, they're And a

Angela Wirick

Yes, maybe just to add.

customer the for accounts to in expect in when to really we is think opening to And top to they're base. today, addressed investment centers about line. about the years Mike think P&L in improving I'd up Zack, of P&L start expand we've in the stay think accounts. existing focus field as the the the are pretty and the the that number new I modest in in that say, future got that investments workflows continuing and you would comparison,

Operator

Piper Matt comes from question with next Sandler. The O'Brien

Unknown Analyst

the and has few wondering on Samantha could first continue get can off, maybe new I for that on details to momentum guess cryoSPHERE seen. pain that management was we business product a expect is how This I Matt. the if more your you

Michael H. Carrel

Yes.

product more efficient the of the a new much use source. cryoSPHERE energy So is

better of tip actually to application more on to it ball of of able they reduce much see kind it We on should for it's cryo kind sheet that's the of nerve to spend. energy it actually go allow So to some have protecting be study after focused reduction freeze of can kind at the see that end, end early of that and time possibly got sort because very some so to that of really a have the the addition on get better actually quickly to a necessary much and of of is is have and for And incredibly we do that's of and more to the as basically per might an that it's freezing to be it flexible do they that to of what that innovation allow time We some going That the for we some important think them that, not expansion does if that protective think us, much become escape surgeon ease the standard allows it, it'll from roll better to we in which shaft. a a to lot side.In is their care use new sheath through approach. standpoint. that for doing just out. it's going the got that'll be the of

quickly over move months So XX year. towards going course again, to this the we to first they're X pretty that of of the think next

Unknown Analyst

trial any and come business the that? LeAAPS the outcomes could that on from do any And maybe Perfect. in? when could maybe impact to when is terms you then just in And we of think see and revenue second question our

Michael H. Carrel

we're in Yes. faster we I ever we lot mean, a the so briefly this results having time. expected than great enrollment. at mentioned, as We're point on enrolling

be it. in front. able still really enrollment expected. on than Even we So the still we really long a doing trial, job X follow-up feel years we that, faster get is enrollment on a of feel though. It's we and about great have confident definitely with the really, That, we that think complete once might that to good team

rock being the palpable. is back short-term revenue in So is the sites. market half it decade impact see any in standpoint. that to really that point. have of to of enrolling the end patient with at in frame like said, excitement year trial. the the next kind Europe on be trial of We're should basis really X-year our this enrolling on in this the from feel overall sites the this That are and at year. -- first roll versus really around enrolled by we're the time going of And XX is We we just over We going

Operator

from next The comes question at Stifel. Wise Rick

Frederick Wise

I again, about could I more a this but XXXX is for -- guidance, bid from not you was hoping talk hope aspects. XXXX two

role but opening referenced? You've get had in -- of towards price a XX% At you historic bit, it new driver help products what that is about not obviously, a that might high biggest us to you broad-based you could that launch. the you just it -- the products. that degree Is talking growth, through maybe might launching -- obviously you've accounts? above incremental growth, you're XXXX on new XXXX, that? pre-pandemic it XX% XXXX all get And new it a might little you're Is showing and think that terrific that level, the touched the play drivers. Is

Michael H. Carrel

I'll And Yes. and Thanks them, put a for maybe hit we year the question, as it. the point of of finer look think you a Rick. at maybe on couple across I franchises, next upon each

well of ablation -- of that such The incredible open they're it an base. easy leveraging at -- It the base penetration been that ablations the time we're really really front. that of And volume that reduces incredible our product it's ablations technology. how significantly off we on are continue the has that are you being people If are I mean, to EnCompass getting use. does done. the in kind look to see franchise,

on So our and growth our above of open we franchise. had seen making historically could we what feel that that, driver good a progress of the like great we're be on side

to but into standpoint. next we're the So the on today, kind hybrid strong hospitals having made those in stickiness next lot workflow really well. we to attachment see of that at year.As that, driving franchise, relative anticipate growth you to the year continuing We we think sites, hybrid and we've the say in on and side, rate from our to and then our that more improvements step that business of we our anticipate both strong the I'd open a more and continue up hybrid AtriClip side, look these and on also make at as attachment that leading seeing all going foremost, first be a growth is side. some us growth And to that's

-- that's So then to we're do something year and progress big continue that on going next years out to like a not put of some as progress down well. feel that we're for we step, ready of on But yet. kind make how

front.On Cryo benefit it's those I mean Nerve XX% going underpenetrated. some less We Cryo all So of Block. key Cryo they're in are Nerve Block the that pain having drivers really patients in their still than and while management believe for that penetration are Block, analgesia on overall can the Nerve from that we're their these there.

going as with to well.You as XXXX continue benefit it, do strong area refer build XXXX. to for but that from growth we products And that's much, isn't the to us in anticipate we'll excitement new and that new going and products. so help XXXX to

franchise, end of our out open many in more another basis. decade flexible we've you our the that going our at is think And smaller. one for when in that that new got there the kind of fast follow PRO, in is even it's we lot there's we a the on market to of leapfrog products, we've FLEX the -- one standpoint, that today. sure. that then of the to also going device. a going that from out of even which It's And a be be half We for think innovation product the to back minimally is coming on tool. think us the another that to we kind clip is from product. impact invasive excitement V be year at next And there's look on a reflects That which you can new got So see it's anticipate

out end simultaneous to of HEAL-IST, those is product then at trial, That clamp on out but coming actually will X come hopefully be year. that the of driving side, a to hybrid we have to next the that, new the kind got lines that's frame. in we've addition our that going time XXXX are So here.In are which XXXX, growth

but as about. all some that trials not see the product to our you future addition there, you much Rick. talked year, really is clinical well that Hopefully, next building So context growth in we've for gives pipeline

Frederick Wise

and context appreciate I great That's color. it. great Yes.

of just leverage. are if sort there. Mike is pendant like thinking or And mean, question, will, Angie or about sounds you opportunities the a both, it I the operating

to far about terms, some and the when But like EBITDA that you're about setup create talking roughest the investment growth, growing Maybe get. line range. as of seems that I But I continue about sustain invest I growing demonstrating leverage to need of so doubles roll XX%. think $XX talk top XXXX year, drive the growth, for XXXX, XX%-ish, the to it. inputs and excellent how SG&A think XXXX, all You're into and million know, to rough your or the out If like in what penetration about, you just to to it hope take X% your don't the the back those I operating these midpoint products. do new a

Angela Wirick

Yes.

This but throughout efficiency, particular this X teens that see end team some would think as we've meaningful that kind the training we'll development say to the to to I focused as revenue you'll teams underpenetrated for at investment of Specifically development. decade. the But kind the the and relative a areas is as we're stick the that to vastly in range. well in year both year. we've high continuing on kind calculus is in the of expect next and generation next in from think continued a been our towards investment continuing percentage on the to as SG&A mentioned, part in to into or That's that that's improvements the as continue product And development of operating made high those thinking the pretty perspective, work side, different those level penetrating expand growth studies of benefit that expenses, looking trials XX% work staying run.So what kind R&D part of SG&A the And think continue. starting that be Mike on of we've that so be about support we I operating then think of then would and out, of sustained and at I projects, on side of also clinical should the far product about markets, enhance different be of able research and started growth. I

a perspective. comments from standpoint, say got, So stick the then our fuel kind those next opportunity in generation market what out. I'm line the the and will continued thinking of that a of means on to from future, that technology, give priority trials that about and ready that we've I'd X areas supporting the R&D, But growth not bottom science are

Operator

Danielle comes The from Antalffy next from UBS. question

Danielle Antalffy

be to the Happy covering story here. back AtriCure

was have Mike, questions -- X I just here. So I

on all, that's growth driver EnCompass of here. very been a I've First Clamp, strong been gone the while

that's so perspective, mean, comments side the appreciate made CABG a of a I I you be in curious. way. seems from real market pricing a the up things. to volume But this product And opportunity opening the on just meaningful

have can and with if I'm regard best CABG you comment that one penetration follow-up. with on And So just then where curious tell quick as you EnCompass? are much just you can in runway how we

Michael H. Carrel

to of Yes, great Danielle. it's -- question. is correct all, it a as back you have first well, absolutely it's great And that you're

you utilizing the because on where have for the the are and have glad back ease technology appreciate initiation of population. area is calls.Yes, to report, use most just this and to these you on we're glad of CABG people So, that its

patients but X% of has treated getting underpenetrated. undergoing grown. to there's that CABG much Unfortunately, really but the from all much AVRs, some that where CABG actually appropriately, so was -- growth were is growing. you CABGs we're but coming the from it numbers, mostly can't patients. That's opportunity. were it's definitely launching still some from and and number X% we're in patients seeing give definitely think almost Prior pretty maybe I between growth coming so volume EnCompass, And specified our perspective. We That

perspective, along you're from give kind referring needless or but of should are raw I I coming again, get it that that is to some But to. can don't like something database, lines the So et those numbers population have say, from verified. cetera, the STS that

Danielle Antalffy

world jour And in Okay. AF du PFA. then That's is obviously helpful. the topic

EP things, how changes adoption CONVERGE for negative, actually wondering CONVERGE? drive the think think you you trajectory, actually could PFA getting do Just positive potentially EPi-Sense the in an potential throughput that procedure. on or side of And whether the uplift more

Michael H. Carrel

Yes.

relative to not going relative doing a do look distraction the definitely obviously step cryo end or though, comments, on some with we a that does the and undergoing growth really our or your got no trials about from it provide it the doing complementary about then have be long and that conversations. I they're what no us to it the at we of And that what on patients on courses. they at conversations allows courses, kind the doesn't in one to confident think are term, up think long-standing out is we in to ways, We are We RF, using I our was up. that what of or that. to they're out that there negative The mentioned. term of there so the term, spot we So Whether they're talked shape That this workflow. It's epi for you've a good person having being can front any PFA like time time the together. indication have reduce it in feel do at we're what's like discussed we your at a It that it many see there they're PFA end using out I us lot don't point endo see that side, is every creates way, they're brought what noise using we any impact It's short with on standpoint.In component And side of our that you matter there -- holding to on really in they're or believe that's a discussed. relation information PFA catheter. we think, for for because year. all PFA there. form. that using like efficiency in going it And does an of are do. is next us that improve to and really persistent that those there to we uplift are where in is said, that's that long the up speak feel as on

Operator

from line, having next Daniel Mike to stand next & The JMP question comes we from some question. with Daniel's be difficulties to move The so next comes Stauder Company. question Seem can by. Securities. the with Matson Please at Needham

Michael Matson

It's still below think has you over the that the earlier really but ask few penetration a quarters. strong just bit down last the pain is did I wanted growth, about obviously slowed it to business. the mention management So Q&A in you seeing quite XX%. And

of like here So there early something or I surgeons going that? into kind more guess, from some the from issue is adopters the mainstream

Michael H. Carrel

on anything, There's it our think Like no actually I on hit well. concern front. you

cross get case, you've getting the cancer You early a then this that tend of with after, as to, in those of patients. and bolus to say, adopters, where the they kind lot chasm next got you're

from bit a board on require some of evidence not cancer or front, the it. making benefits lot that So they getting of undergo yet. demonstrate but want from more big They clinical kind the are a trials lot on progress they're little that of standpoint of to a we're centers a that to

point they're more this dabblers in at time. So

we bit So and the penetrate into, like example. a feel as take of kind customers. not that we're some longer major just losing little get But of still that cancer an ourselves overall, to institutes

and that these both have of centers year. We expansion XX of ordered in customers next getting of months. ordering us. have from us tremendous this to both really We number see then XXX a the people into of big the well from some We're over that course XX over

Michael Matson

I cryo that something good Okay. Is I the like with launched. can Clamp done mentioned, new feedback that is and kind just you timing. price Is release full launch? of it And get you Got you the think go? a job that you you're products to go you've EnCompass like things to a ready to When it Or said then that to initial there's some before a limited a significant probe sounds then it And the this some get on have clip going for? got you thing be this it. some launched? with the you've enhancements there. fully it will mean, XXX(k). premium do subsequent to

Angela Wirick

Yes.

with the end, to cost I the the of consistent this that, And think the recently there's the to back and is the that's that the to XXXX on a kind in So is which to we at point say quickly pricing pretty strategy work market. I would on XXX(k) of do and keep of limited Relative early benefit expect move us the device after a received probe, full device. some release though, clearance launch. then into around a

to the I part costs. initial kind of out that in that -- pricing procedure But and engineering this work go-to-market done and is product covered because some not the as is that's in to the reimbursement for. has we with be It is maybe strategy. of of an think development separate the was part there's the able kind the area of some lean equivalent preliminary thought this the acknowledge by those of

Operator

Thibault question next Marie The from BTIG. at comes

Sam Eiber

still in Maybe customers? when as Any for in? months early now you've early been think really any a couple XXXX I thoracotomy Sam feedback about this that market. the might should It's the guess Marie. differences on been to of hearing sternotomy on market since we market? start kick is Eiber from rollout. can This start I And between

Michael H. Carrel

Yes.

time. great So going Feedback we do They're getting benefits and kind does from take we're we question. some product well. definitely -- this seeing knew of they're in, incredibly works it What seeing is it. the realize,

we efficient is the source, just talked hopeful about that the a that reduce how some with could question So it, time. of of energy product the can with biggest kind hitting we the I'm We're newer rollout possibly of that more time? maybe reduce that

they on tasks that, we've items some the work got do they're addition that it to procedure. procedural other during while so can doing In to

a many positive been feedback growth amount darn on tremendous there very knew out because and we've lot So next got their time the the initial a of impact that ways in It's cardiac do cases it to have easy But some on lot there. have going opportunity side. they're to of year, benefits has are surgery but of We not a figure think some That the uplift degree. we that of still But cases. reduce to doing use, overall. in, that that but out comfortable are so to we are should there. so some

Sam Eiber

here Okay. Well my CONVERGE. I on and EPi-Sense understood. follow-up And then can maybe use

the out strong It comp. better of sounds sites the is tough getting on terms we're a some what seeing in from here best commentary Another of quarter there. maybe like

we And So next category think as accounts? any workflow year, at that of is maybe average? could we closer indication corporate this how some in terms of those see about replicable that get to

Michael H. Carrel

a our replicable, sites. it we've anticipate where country we've that been. kind of consistency actually I efforts have every think of lot of out that done, and definitely team and a across you work getting the on actually fronts, of around we're our that's well. said the incredibly people very helping We are all lot those got more one a It's

in over definitely the give if when where really it. we year about next the we'll we'll that, mentioned, give we'll good quite do guidance. get we yet, we should over that feel this of corporate uplift early in anticipate uplift sure growth but year the I side rate as full today. to Not average specifics see we more see year. into And on an an And So are we

Operator

comes next & from Suraj Kalia Oppenheimer The Co. question at

Suraj Kalia

right? you hear Mike, all Angie, me can

Michael H. Carrel

you. Yes, Nice to hear we can.

Suraj Kalia

on Congrats Perfect. Likewise. the quarter.

me contribution from So this maybe let answered. quarter? Mike, what in a Angie, to the lot was of questions And the have Angie. been pose price

Angela Wirick

It's XX% in growth that the category of that volume-based ablation open that really was differential and Pretty the saw pricing Suraj. contributions, overall. we the the U.S. reported about modest growth kind between XX.X%

of from quarter the pretty contribution. growth Most came the volume. you're So seeing in that modest

Suraj Kalia

it. on what implicit in complementary Got RF, Mike, being from are assumptions like PFA? when being Mike, to here, would your paraphrasing complementary earlier. I'm just epicardial up similar And comments my second to made following the epicardial PFA, question to say be you

Michael H. Carrel

complete catheters cryoballoon veins primarily RF. is with epicardial we much being the full that's we that lesion be after catheters the the like complementary do endocardial because primarily to that The need what today to kind relative And to that are possibly with what are Sure. some go pulmonary and you or reason really the is of CONVERGE. to going see used

it's So that's very why complementary.

at users. look lot of cryo many a CONVERGE you If sites, are them of

success going roll rolls out, lot that of So it of that That's many the that's to To that. some point, learned. in we we a think after as with complementary the on wall benefits Europe, and have in well. do lot and learn the I work going more there's the might we standpoint, really endo be disassociation we've wide that look that because where I the of a like area Suraj, as in the incredibly But epi of as complementary. see as around kind there about think like are back to them may a it much epicardial where seen heart.So from between just pulmonary think it they why kind that out as little really portion there's veins some to impact maybe be the that roll U.S., what it's of and sort that out you're we're don't your

Operator

This to Mike CEO. back I Carrel, the and session. like now question-and-answer would to President concludes turn it

Michael H. Carrel

truly and Well, AtriCure you everyone, joining appreciate your interest in we really us today.

quarter ahead. hopefully year analysts both kind clarified coming the and what's into excited future. about more from information our just gave about and of We're that questions great Some even next exciting really and this fourth you

your to look again the coming Bye quarter. now. forward you we and you thank interest, to So for over talking

Operator

conference. today's your the for does Thank participation in you This program. conclude

You disconnect. may now

AtriCure (ATRC) 1 Nov 232023 Q3 Earnings call transcript