ATRC - Earnings call transcript Q1 2024

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

Operator

Good afternoon, and welcome to AtriCure's First Quarter 2024 Earnings Conference Call. This call is being recorded for replay purposes. [Operator Instructions]

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

Marissa Bych

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

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

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

are market risks expectations AtriCure's Forward-looking opportunity uncertainties, future which statements SEC obligation potential including and filings. many control, and time from those but AtriCure's and uncertainties franchises reimbursement guidance, clinical statements. initiatives, the statements expectations undertakes These AtriCure's AtriCure's to from to described for beyond and growth any not to forward-looking differ of product and no financial subject regarding update projected. risks are AtriCure limited numerous materially clearances, approvals, publicly to, results are trial time outcomes. include, may in

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

that, and with would And call turn CEO. Carrel, Mike like over to the I President to

Michael H. Carrel

joining Good report we Marissa. postoperative you, impact expand you I us XXXX for everyone, to and am global pleased Thank with a today. to atrial thank patients start on strong afternoon, as and pain. our fibrillation

steady XXXX, geographies. by revenue million, and XX% reflecting driven the and our total quarter $XXX we of the achieved of quarter, In first growth from activity first franchises demand across

of to first expanded In first adjusted a in nearly compared addition, with XX% the profitability quarter in and XXXX. EBITDA we of gross increase the quarter margins improved XXXX

our generate million, year to of million XXXX full expectations are $XXX XX% efforts reiterating we continue portfolio, we to growth. grow to revenue $XXX adoption XX% year-over-year reflecting across As to

and reaffirming to with our growth a full also innovation deliver our invest remain improvements plans to strategy million thereafter. generation. annual adjusted increasing cash profitability $XX EBITDA confident and $XX in in of to flow million while We driving We year are

strong growth think clinical As I about of result the investments the years innovation, development is many outlook market initiatives. and AtriCure, our of future of

AtriCure the of advanced and in our treatment all each multibillion-dollar atrial leader is in markets. of you #X are As know, we fibrillation, the

this not take competition As we position, uphold we do lightly.

anticipated success, would by within We have long the marked states into double-digit vastly markets. growth our new that consistent disease entrants invite underpenetrated

market of intentionally executed market have we to are expansion over strategy of for beginning we the immense which generate we believe physicians that fact, confident involves in expect still validates entering therapy competition today. our activities growth. stimulates greater see In by ahead be anticipation That that market try our because for to business. entrants and competition products. that some know we a a our opportunity decade said, And development new we competition, in We new to and creates strong markets. awareness prospects We course, long-term know are able long-term business

percutaneous example, appendage markets at the years. and TAVR XX past For look over management

grow multibillion-dollar markets franchises. helped drive have entrants New those and

which products, the is and clinical safety by outcomes. founded exceptional confidence innovative our further are Our quality in also supported of compelling

from launch cryoSPHERE+ of the our through Mini we launch, and in technologies. upcoming to Flex this see continue both field to will will We year investing expect AtriCure you which recent game-changing be differentiate AtriClip innovation, by which

technology, trial. our for LeAAPS our expanding cardiac surgery ever stroke market in investing keep concomitant will clinical such trial in only as we done the evidence And support of in

teams. commercial long-term and is education Lastly, deep strength one the and of of our greatest our differentiators knowledge

personnel have and XXX EPs. We with and and cardiac relationships over globally, thoracic strengthening building field surgeons

remain enable science and our market in field expertise invest will AtriCure to to continue business: We across a clinical to differentiators leader. these innovation,

To development have our leverages growth. proven stay launch in simpler expect Looking synergy -- procedures. drivers opportunities and our to open open opening date, our and the of of with have legacy efficiency Clamp of and The multiple ablations over peers exceptional investments innovation More our continues of heart faster our cadence a to of the and up market tremendous the ahead expansion. robust franchise, device EnCompass solutions increased system ablation EnCompass Clamp. of to technology in we business. in growth success had recently, in adoption provide our culminated procedure development drive in steps new This several this we for and forward, market ablation

We to AATS meeting the at papers in presentations. across pleased see recent are and EnCompass Toronto highlighted many

of both the for we pre-op reduction. this, impact and Clamp the anticipate cardiac this back further to opportunity and approval the patients Afib see of European concomitant MDR of product. committed XXXX, treatment, care making surgery and significant patients Building on of still launch EnCompass expanding EU undergoing are the eventually Afib the half in standard in We ahead outstanding postop

the to invasive mission stand-alone to founding minimally the Our of patients. for development atrial treatment is treatments fibrillation, of leading advance

Hybrid to extension only is therapy making Our patients our long-standing the Hybrid that Afib. with the endocardial is evidence to stand-alone for treatment The epicardial is clear is most effective our those treat all AF and the and combined important expertise AF therapy way catheter-based persistent of approach, in technologies. treatment an complementary approved effective

into fourth in base the of growing year, adoption of see to XXXX our quarter increasing results resulting the first a across of this pleased am carried accounts. I quarter strength

we U.S., to catheter with treatment XXXX of vastly Afib a PFA underserved availability year As market. multiple stand-alone this of attractive the expected, be in the up and is technologies highlighting shaping for pivotal

disease. the treating conversations on spectrum We are to encourages of Afib this interest the physician across finding technology of in progressive the PFA and patients varying needs robust approaches

a approach on and focus for more long endocardial is is complementary believe term. PFA, ablation tailwind the efficient in market to Our the everyone we hybrid

customers In rising second fact, PFA stage part procedures, we is our endocardial validating using further thoughts tide have the market. their of PFA in several of catheters this hybrid already that in a

AF efforts they on accounts Hybrid support to remain As focused we targeted move develop through XXXX, programs. we as therapy

our stages of in providing launch early device in catalyst Europe, are our In Steerable the markets. this of another for international in franchise EPi-Sense addition, we the

set Over and dozen devices method with appendage standard years offering our fibrillation a reliable more ago, emphasis for most Our transform widely atrial the by to used world with patients management care also appendage sold. innovation we out of Today, on extends in management to franchise. the the AtriClip the than exclude million are our appendage. safer products a devices more to X.X

our this investors. platform, and the are in understand long-standing the dynamics for Given competitive of strength AtriClip of market top mind contribution we

record healthy AtriClip in Flex-V our management quarter appendage the of U.S. pleased competitive of device driving However, growth we in device adoption over business are sales presence XX% our in even business, open the to first and by continue marked this trialing. in

appendage, already allowing to competitive of our the seeing are highlight treating technology. on a We AtriClip discussions advantages in-depth of yield us availability device the the

Over not we compete term, expect ready do term, short to therapy delivering the long and our focused to we solutions. could own. the In we in way remain this promote on that awareness are differentiated on

new results our of the preparing end, The significant that device, with market use, track this Flex we AtriClip builds ease this device. AtriClip foundation year. closure safety profile To in for commercial known AtriClip in of clearance outstanding and a later Mini with another unparalleled solid innovation Flex this substantially which are smaller on launch and our for on technology, Mini for FDA is

globally. all patients -- where for surgical products the in AtriClip our devices began we arterial trial view clinically represents massive If the dozen clinical ischemic diagnosis, per as multiples The standard and systemic Afib The dozens opportunity of products management atrial embolism. trial, use with as patients the ago years from all surgery, cardiac of for successful, investment is investigating dramatically year clinical of would trial care potential reduction separate We this million our market a LeAAPS the seeking years has the use further patients X.X other without also of appendage evidence to LeAAPS clinical of which in clinical appendage management along left ago. meaningful in preoperative existing demonstrate expand AtriClip a robust over devices. our undergone to the

rapidly, Canada. X,XXX anticipate in European LeAAPS to and today, patients of now complete first almost sites coming expect enrollment with full has patient U.S. XX in of driven sites We across patient enrollments by XXXX. enrollment weeks, clinical X,XXX Enrollment inclusion our in we the demand the strong in by middle and the continued for the trial the

patients Block remarkable cryoSPHERE been Cryo speaks over cryoSPHERE we in been line date. in provides The with XXXX, of in has to offerings reduction in thoracic Nerve expanding of management behind our experience franchise, postoperative have adoption the Afib, the launching commercial performed procedures and following adoption pain cryoSPHERE the successful our Beyond pain. from momentum XX,XXX Since meaningful probe probe surgery. our temporary pain creating to product where relief

patients are a we grow, value to to physicians. and comprehensive clinical for continues proposition investments therapy this data As both making support in

Recently, the limited full-scale this the on At been remain are adoption. feedback insulation end our actively improving our the and a time, we progressing well, freeze therapy new we limited is same reduce times announced which track technology advance has technology by features device, the launch cryoSPHERE+ The of XX%. to launch launch current quarter. excellent, we for of to by

debut, tip. the incorporates which technology its and new we made our a this larger benefits new completing studies show to ball are probe, cryoSPHERE cryoSPHERE+ features MAX As insulation of

the and procedure probe cryoSPHERE even in to cryoSPHERE to XXXX. ablation probe expect expect We show MAX further in reduction launch and MAX late time

are we improvements will the an adoption expanded making sternotomy use case the in market. cases, that strengthen confident are the set including We for of

therapy current on and expanding you innovate Nerve Block applications market to opportunity, additional and for progress. against researching are our look forward Cryo we market updating As our execute we

I earlier my In like closing, would to reiterate comments.

made leader, expect the remain multiple steps to that market of and development will vectors expansion. and We in ahead investments several peers AtriCure to have we across market stay enable growth a

in past the of markets. different has delivered consistently even growth decade, pressure outstanding context the company our in Over

penetrate each meaningfully remain markets and our to sustainably, organization. of Looking our forward, growth leverage we durable positioned throughout driving and

ever the forms with we into reach focused Afib, left advanced managing I with this the before even is position. than undergoing forward market AtriCure look we postoperative the for now surgery more on patients as validating new cardiac entrants future reducing of solutions our believe appendage expanding pain. atrial XXXX, Therefore, remain of in at compelling patients and

products expand clinical our our continuing business. research eager We markets new in launch and profitability our improve all initiatives, several to our efforts are across to while also

Financial the to call turn our over that, And Chief Angie Angie? I'll Wirick, Officer. with

Angela Wirick

you, Thank Mike.

of first compared a constant million the to when Our revenue worldwide saw currency increased We XXXX. of strong quarter XX.X% on and quarter first reported a on XX.X% $XXX.X basis XXXX of growth across grew of globally. in diversified business drivers each franchises and XXXX. geographies, fourth markets our the Sequentially, million growth demonstrating of or worldwide quarter over X.X% basis $X.X the sales our

$XX.X to million, the million, up and of revenue from of XXXX. product management first XX.X% V of $XX.X overall by a open Clamp XX.X%. over products were adoption XX% propelled our up quarter million U.S. was ablation growth increase existing across of and first both the products million, Open We XXXX XXXX AtriClip driving rate ongoing saw compared appendage sales were over sales robust an quarter XX.X% of new EnCompass XXXX. First first $XX.X quarter management accounts. appendage the FLEX growth $XX.X quarter in our to U.S. device, approximately our

quarter the our in As choosing Medtronic against appendage management backdrop trial accounts first device. strong to Mike noted in the products is his that comments, included open growth

fourth and management However, our our very products, have following system limited LARIAT management users, in of reduction revenue products. outstanding appendage a base of from our primarily from we AtriClip decline invasive a MIS an a pressure franchise growth where in appendage sales in quarter saw minimally

$XX.X Management and first with cryoSPHERE+ the sales million, XXXX new our up XX.X% from probe. quarter limited of were over contribution revenue Pain

advanced million, of our end sales the to with therapy invasive AF XXXX. adopting results quarter were $XX.X ablation an our Similar minimally this of patients. more treatment quarter demand this for up for the reflect accounts XX.X% first Finally, increasing XXXX, Hybrid over Afib

international up million, compared million, quarter markets up Pacific other sales, on reported XX.X% constant Asia for of accounted million and $XX.X XX.X% XX.X%. $X.X international currency basis $XX.X a up the a totaled to up as XXXX. basis on revenue sales accounted and and and first for International XX.X% European

was by XXXX. the and franchises geographic primarily international XXXX for increase across excited are and along and to with basis growth of up geographies efficiencies. of throughout driven XXXX. pathways was continued Gross XX quarter first accelerated points product for business quarter extend mix, margin from We The by both operational the strength our the XX.X%, see first

moving expenses Now to operating on quarter. the for

quarter development from costs, settlement XXXX. a investments the the the of operating quarter expenses XXXX my the of research progress our $XX.X of $X development of recorded trial on legal in XX.X% exclude million initiatives. in in first million the For from $XX.X an and million LeAAPS the comparability continued remarks and on enrollment quarter robust first as approximately was in to our offset increased reflecting first or will SG&A to in XXXX. gain million quarter XX% Operating product which and Overall, research XXXX, increased first clinical of activities, change result several $XX.X

SG&A profitability. the will products in within XXXX. leverage commitment we to remainder scale expand with approximately increased first with balanced from -- to of enhanced our navigate quarter saw economies as future to We development the investments pipeline increasing by of a we prioritize ensure And evidence, research of as XXXX, realize XX% and of of expenses and clinical an

for million $X.X XXXX XX%. million increase the Now the line. turning adjusted to an the of of first quarter $X.X bottom first for XXXX drove to of compared of adjusted quarter approximately EBITDA for EBITDA We

$X.XX the the of period $X.XX first quarter respectively. was first quarter and was the loss share compared $X.XX per each per loss per of XXXX XXXX, while loss in share $X.XX, a in Our share to adjusted

burn We by and ended pattern the first million -- first quarter heavy of quarter payments share heavy driven burn compensation normal our cash vesting, needs. in a investments, variable and operational with reflecting $XXX

business. positive of modest We with which to our in of balance flows year, generate consistent earlier year. remainder remain the burn the current future very needs sheet our this and XXXX, operating a in for the We for fund cash solid expect guidance a with to position the resulting is overall

And XXXX. now outlook for closing with our

markets upper the full $XXX to of million year we trends mentioned, procedure over year XX% growth reflecting and environment reiterating our revenue for stable remains are of $XXX key XX% million, our XXXX. expectations operating full Mike the Underlying to As other revenue in expect first worldwide. see line sequential on from to In to growth to expect with basis. mid-single-digit words, our a quarter the business. in in growth we Therefore, single-digit seasonality to we historical that second sequential see is

to be and with potential geographic product continue we the perspective, expect XXXX margin to XXXX margin gross cost from margin with impacts initiatives, varying a From gross in mix. line for savings

we as I stated set AtriCure. and our with revenue As previous incubate growth percentage roughly is earlier for XX% to capital XXXX. of on Therefore, my expect drivers XX% of the primary at calls, allocation to to R&D in a comments next in focus maintain

providing leverage to sustained Our revenue as spending year across profitability. in moderate improvement the SG&A to proportion will and progresses,

reiterating EBITDA year approximately $XX we adjusted to of million, loss With our $XX are this an full translating in adjusted million share mind, expectations $X.XX. to for XXXX per of $X.XX to

the full quarters occur expect remaining fourth over to improvement third XXXX, full and the R&D adjusted We of XXXX costs timing the will of in on based XXXX, expansion in EBITDA from comparable largely year and year quarters XXXX.

demonstrate the that our results strength depth the Overall, quarter portfolio. and product XXXX of first

increasing of our with the pleased and many extremely the are XXXX. across impactful advancements along We globe with performance initiatives in profitability

to back the I Mike. turn will call Now

Michael H. Carrel

Thank Angie. you,

bottom to will many both for key years product for day line an like strong thank We clinical and top we Continue which AtriCure a have your even the our our to drive delivering would on business come. to our while values growth mission. to milestones, live footing begun and future patient-first with together XXXX team work I business. for across on commitment solid growth every as build to our brighter entire on

we as the pain work both and of have our affected advance surgery. lives by those Afib expand to We further to markets unique opportunity and the heal after

questions. that, with And over to it operator the turn I'll for

Operator

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

Robert Marcus

on Maybe Congrats the I guidance. quarter could here. on Great. good start a

yet year. missed The $X You reiterated slightly million. by million top just Street on the EBITDA line kept guidance versus by for the $X like beat revenue Looks

us about guidance thought walk just you're the the first the thinking light process and maybe how there in So of through quarter.

Angela Wirick

product of it's seeing say comments international remainder increasing momentum we several ability robust of I I'd year deliver guide in big really Robbie. his the was the through well, introductions penetration as new to really of perform early through the gives confidence growth really pleased prudent our market results Thanks, the it with And throughout the us of still year. the walked year. keep to first in the and drivers we're while which XXXX, operate place. in we're the in pretty in felt Mike quarter, good as the like well remainder the as as business through as and the

So it we like year felt the in to just it and the was early keep where prudent at. were guide

Robert Marcus

Got it.

you the one I the didn't market. beat could first hoping into the a the out talked competitor about it's where the bit out results, a is and go lot of that concern a was you market. in look line quarter, When the AtriClip there little You I item in more. obviously at in

So item you're seeing year I competitively for expectations your was for and in the line the hoping out you market. could that the walk of what rest through

Michael H. Carrel

that Yes, to I we're going think on one, tag team Robbie.

that So know I for top of in investors. with seeing what start I it's lot appreciate of we're kind the out question. mind of field. just the I'll a

my of in not we standpoint, that in out comments, kind see see lot We're massive in trialing market field. the any there. definitely the seeing we any mentioned definitely of shift from in competition I a As but kind competition share of them the sites

Our of happening at the nice But one of they've different understanding relationships also a done got really accounts of team job the has variety every around accounts. country. what's a at

in new human is, the great out they're my product That the beings, by our because see being I kind it. a said, customers exists efficacy both is I think most and a It's as and the see safety physicians which that, far, what else standpoint. has market. product believe like but both from mean, that on best to comments, today, I in been and proven really want feel that new to the of understand mentioned confident we in believe trying market. definitely they try to we going things, they're try sites I product

with came comments, time both Europe Afib. say but managing to understand really recently we on think conversation. that Obviously, there's They're about understand out the STS and that great important about must appendage I era in it. and mentioned I going guidelines the the you that, over market my And obviously, to As drives AHA every just drives share a treat the the has It in an appendage great from AtriClip. discussion someone ACC it's drives to treat get way it that this appendage. some discussion

So drives then leads appendage it treatment conversation the good of a and around. really around conversation the into

this we've Well, sites trial, and and getting up got we're running.

As you standpoint. that heard, got on we've LeAAPS and running our from sites XX trial up

So there. product. really see I field in But position. people that competition we're We think their trialing see yes, a good in definitely we we're the seeing out them and overall,

You in part saw with our our of XX% our business. it growth numbers over open on

little bit the a I'll at more let maybe year how kind rest of about we're Angie talk projecting looking the and well. of as

Angela Wirick

Yes.

guidance our full the XX% for of for XX% the company rate So year. to is growth full a

our of the understand that there franchises where the we converge fluctuations is point I different a expectations deliver growth time. each at areas. intact around each feel business growth this over record, our that But that overall. a in think may start like been started we corporate high still that would from being some to in year, We component rate. of business, we've to as be business said, long that the And very able track

of our business areas, still have we that may outsized last very area like year around where and XXXX, expectations behind, that corporate rate. very be then some different the that others would converging growth I feel be growth overall of particular there we franchises each knew from that some in kind think

to see that this in So just U.S. the first in the number appendage the up. management you pressure frame quarter,

which The we've we're the said, management strong setting. About as It quarter. But transition LARIAT MIS XX% competitive reduction management revenue some first in down and appendage got a U.S. nice on the procedures. the overall where Like of Mike saw device. our and as well revenue our our hybrid attachment remaining from appendage outsized is brought a in revenue seeing our in XX% is rate in XX.X% really open invasive U.S. grew growth system pressure for chest we revenue, AtriClip quarter. the to setting, our minimally still

Robert Marcus

it. Appreciate

Operator

you. Thank

question next William with comes Genuity. Our Canaccord Plovanic from

William Plovanic

pricing was -- the just do Have LARIAT, the you business. a going strategy just little that you I in Or Is just how is growth product the U.S. think And have you quarter Mike, then of more the a on XX% competitively, then great. to that XX% in wondering terms discontinued that, And Yes, one going kind talking I or about this in deal? grower, that's any around a a today? that bit of seen U.S.? away? we're change device. the XX% at since think been about in long-term be grower Penditure market LAA Is bundling grower? I'm XX% And

Michael H. Carrel

start first the I'll one. on Yes.

So -- there. because I think there are three different questions in

first the about was So LARIAT.

it hit you As we the did Afib in superiority. closure, record closure actually to was have you if well readout did the a meet we of today trial. and than worked XXX-patient win a when It had better It safety the years the device X.X%, several great about device the order percutaneous recall, reduced for actually back needed to by had X% not Afib. trial, on reducing on trial. market also in and and the any know, while incredibly endpoint trial the it And ago,

the XXX(k) net we that it to it, was still So sites. on as People but on. weren't the any a been the new under market originally result, continue has product use adding

It is not next have have the thing to market. with the catheter consider what with product But that so other in some likely point with our is logical works we're we've not do time. very left like for bloodstream steps. does you steps it saying product what evaluate trial, is at you're a to, someone we and an that get are trying product. in a run now to next this and We our going know I'm to the And what seeing It percutaneous product well. would would to consider exceptional LARIAT are got be that to on stroke

it is new lot revenue. trials. used. products is are it's as coming this of seen that We're But market, in shutting That being market, pressure it down as you've seen in not in said, you've on being got a not the this you've because

there a and product So the just was called Laminar conformal also then out. came

it's many you're now because new in products there the not would our a are to getting that And and devices advanced sites my more trials lot seeing sites that are the that the coming little bit suspicion So tended are trials using that. a be tend part is involved we're like new our of on be -- that out. of sites that out that pressure to on some

we on pressure that We're the in it that's the of down happening promoting maybe it. shut market, of is We're product. not think kind either. where pushing we some it have LARIAT not So not but

about running from dynamics, appendage sense in good, pricing and look rates a market kind LeAAPS the as from makes a then standpoint. I'm to the relates consistent that finally, but give of not seeing we're of market we of the really there's reason long-term specific it standpoint. lot a to that at for trial. number, it the And going management, that good we're As feel kind think We

demonstrate million around trial stroke we that global patients that on happen very are but maybe trial out tripling cardiac should to LeAAPS globe prophylactically even close about in once longer managed, that people big the we management That can significant full their is trial appendage X when will believe product going will the the business or out. that LeAAPS if appendage in for reduce you size incidence of long patients of be the a the are that Afib, drive And they're of period will a strokes. you get surgery, in the overall for time. that think rate reads trend those their prophylactically of to market that quadrupling AtriClip an put undergoing their The growth term,

of giving basis. between see XX% than without XX% less specific market we those X% do and so is a you and when this the global calculate And less number, a really patients penetrated that kind all U.S. in on than

way giving rate, long without a to So Bill. specific go a growth

William Plovanic

Great. if on was then EPi-Sense number PFA distraction, could, EPi-Sense. a follow-up, And a Has been the great. I

makes new So on the investors as is, get there getting get first with they're you on it PFA it in harder of PFA distraction you going and is getting in And question those we've targeting own been on to EPs PFA, product to from focused asked other are because kind technologies. those accounts a for trained adopt and your what be portfolio? then PFA

Michael H. Carrel

Sure.

the As it relates to the catheter-based out and PFAs excitement that's there.

using having As the I sites, allowing engaging weren't We've mentioned, It's maybe us think actually conversations. that before. comments, conversation mentioned in EP in convergent got procedure. we it's now we my PFA have actually to with several I as are that

about a up in us PFA standpoint. that around, discussion from It there's discussion a that. and how sites and on would hybrid lot drives of of impact actually terms an of having any setting distraction so well, actually good new getting kind or not setting, it's major in type and conversation So really work

someone we at look you gain so PFA from the in Remember, and discussion terms go and awareness is that do an they data efficiency those of has all when you is than more that else And reduce an efficiency in. when an companies. time the gain to good. results ablation the CONVERGE believe is anything

of conversation been relative lot to there So of part and gains. big a second was the that. the you've recognize got a a importance the actually that, efficiency and know People that's conversation. I double part of

William Plovanic

product? what's portfolio, for your general the PFA was It first own

Michael H. Carrel

option very mean, think of I our can one fit technologies, into every we PFA Yes. utilize. well people as for to really well an

across products. our on before, and underway on much mentioned pretty that call and got entire good it progress we've of would really this are be definitely portfolio making we've programs As front,

Operator

you. Thank

comes from question with Rick next Stifel. Our Wise

John McAulay

Mike, is Rick on John for Angie, this today.

First in you product question, price the launches. ahead, in just curious several about and have the also quarter year

year? the looking factored Just and might have how for growth it here into you're it of curious rest at how the

Angela Wirick

think the we the technology when that said the pain a product you launch expect management pricing of market think that's that we about limited would at that on John, the outlined call, our the we're cryoSPHERE+, we've in business, the to today. I in launches on currently the of a newest couple similar to device launch process

savings think on same gross but to time this, benefit a that there's most keeping actually the that. a company. price margin profile, over savings benefit. the accounts do It's a better will the and We cost to There's migrate

big a So not to driver year. be growth going of throughout the

of that on the step which kind we're closer would when launch a be though, factored we're the into that, on about from just a the in the not perspective. and determined AtriClip be to how to I'd the for a is Mini, perspective pricing at date an impact terms guide launch uplift way say thinking volume next from Flex future of looking this, that

products European a would it With price we premiums devices. the be where higher we've the the gotten would same Europe, than U.S., our be in of at in our Clamp in markets strategy the existing a couple the when EnCompass launched

the outlook that in XXXX, that's been factored again, in overall quantities into has the So been factored XXXX but into minimal kind guide. of impactful more

growth quality when look believe each volume So of taking a most continue driven by markets. the for we XXXX, back this step sheer penetrate we at of of just you our is growth as to

John McAulay

helpful. a just And That's follow-up. Great.

pretty OUS faster, OUS get maybe business. in LeAAPS site help can I talked business how LeAAPS in the starting appendage growth about Europe. you again, the curious, up more just was curious I'm You sites interested. strong the first growing just saw potentially management

Just appendage outside sort any management thoughts on U.S. the of there

Michael H. Carrel

in and the because both fast it's so of enrolled think is of do doing global to globe. because It's the and is running of everywhere about the standard want around to Asia the make is Yes, we're up the U.S. meant trial Europe in the we're them trial we long the changes what large. reasons this including and the so I be. trial, impact fast get think trial LeAAPS, reason trying we That's to one when a term care

in about Asia to getting as now and getting up months, well. really hopefully we're next sites X excited so within Europe X and the some And running

truly that's the to trial And So around change adoption can that we international believe going they globe. be an rates front. on

like X% mentioned, I As globe. it's penetrated around the only

prove patient throughout change payer for obviously and for population, believe that in which is of the doing reasons so And those the that benefit significant this in can we that world. practices if we that's And stroke one countries society trial. reduction can a we're patients,

So overall. I for piece us going critical be LeAAPS do that, care think to that's is change the trial a to

country they those by months But [ In more on that. some ] the based the recognition just out XA seen, increase guidelines must work the XX short seeing last changes our point it's they is the they've guideline guideline have at all manage to telling then time. that U.S. that that. dramatic now reimbursement though that will we're came because guideline that over potential recently and there's It what this seen believe that we've Class where a out just lowly in got impact appendage, do guideline changes. penetrated things probably the the basically a business to need first, with OUS, everybody the takes made that in Era they're term, to and you've have the I I you effect changes because on so like time believe

Operator

our One question. next moment for

comes Our Marie next BTIG. with question from Thibault

Marie Thibault

open in then quarter. AtriClip numbers about right said. is U.S. about Do And the which to year-over-year where triangulate like XX.X% us. the offered you revisit were you I AtriClip some those numbers about which and of grew appendage to at flat million, LARIAT was and to $X of the AtriClip you? million want try to sound invasive It competition the LARIAT revenue minimally seeing discussion, management setting, $XX looks just we're this growth the

a the year, then other to right then the open breakdown secondly, mid-teens appendage kind trend flat for similar is think about parts of way two And that and the of for AtriClip the management. rest growth in those and in

sure of Just want to make understand puts that some those we takes. and

Angela Wirick

under largely management the is just and $XX the million the little did $XX revenue management driven That appendage quarter MIS Marie, the -- MIS The AtriClip million the over correct on you to are see business million our appendage down. by directionally components. actually LARIAT for go close the $X a at product. business, quarter. business for We open

just few year of last very QX we quarter, and Our customers. of an kind have was outsized

quarter of of MIS And So strong area activity within softness small fourth business following results the we in pretty in a a of bit the pretty base our customers there. for skew that saw AtriClip, can a quarter. first the

as longer think I'd business, comparable seeing and management the And the our typically in term, particular more open XXXX. when the results would to in fluctuations in term, given been either think hybrid I see more or pathway franchise. and the side to expect LARIAT the that our I there's in procedures strong attachment past but of MIS The within MIS we we're of driver would MIS think an say for driven bit in longer that positive the be a business, our see quarters growth trends still MIS adoption just AtriClip franchise, negative in our to the what on our has behind seeing from future. you'll you on business uplift of a continue appendage expect be the not strong we've about to probably ablation that ablation to see a seen carry. that really AtriClip by But based a meaning big we're

Marie Thibault

Angie. Okay. U.S. helpful, again, open then the here And I want ask segment That's strong about That was, to really really ablation. in

recall or of pace on Can it adoption was I It growth But more update in there price Clamp. runway and there side? that and give what as there's wondering like are volume some just of business curve of us -- half about the think, uplift latest the well. for system? drivers the more you where I an the new-ish U.S. seem the you as EnCompass was was are does adoption of of ahead,

Angela Wirick

right. All

great first pretty we another comes that you it's it little innings still early we're in So in under to Clamp still -- when XX% revenue with a of are EnCompass And quarter. think product the bit here the the adoption.

Our and each were of users in quarter EnCompass the XXXX. Clamp up up from for the quarter, fourth from quarter device, over accounts that XXX

When to bring within terms our to. doctors, be well. you using of existing of on this of of product even side, could number in I'd got of accounts we've open we plenty about say think surgeons as accounts that accounts, And the kind U.S. plenty users the the in still that

really So cardiac in that open The market, Clamp the our still vastly chest rollout. we're surgery targeting terms market of on our efforts underpenetrated. remains so EnCompass

there's and we've that's of plenty this to table. for really here targeting traction sit we and seen great still every grow on and room say with are users that today while new on sure device, the So you. happens patient adoption making Thank

Operator

you. Thank

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

Unknown Analyst

is This [indiscernible].

then could the we a for And about implies ask guidance more if bit 'XX? what and of throughout expect of maybe sequentially the can we what the First, year? that rest little the also rest

Angela Wirick

back [ the you Sam of caught the repeat we part? your first Can ], part question.

Unknown Analyst

Sure. Yes. I'm what just for guidance guess implies the of rest asking I the about year.

Angela Wirick

Okay.

that of sequential in user growth. we're repeating Sorry. historical the in that. in end my the business seeing is given be Like you expectation in past when patterns think U.S. internationally the present the you've seen our say Thanks both about in we I'd to and that for markets, comments, we expect just said some stability that the would prepared

kind XXXX. the to that the first from quarter of second of So growth upper means mid- to single-digit

to again, the and in full through full that through think the that those for interest I of business they'll by as how each understand the the business. of guidance And think drive. driven the components XX%, year And reaffirming the of and numbers, the think we XX%

throughout different we I able very the think been as you're the company the think of guidance and through deliver we've the -- as year. been growth the meet the the of year, overall, AtriCure have we promote remainder expectations of of have our out operations and drivers both exceed and to that aware robust same growth and we operate

Unknown Analyst

also. Great. just do do could [indiscernible] grow And on know one business appendage see how then you think think long will When this expect the And kick the management you you in I market. [indiscernible], in? you help that more this I guess trial

Michael H. Carrel

everybody we've And we mentioned. is going think aware are as on. market. of, mean, competitor I to People in it. try continue to got trialing as -- well market to going the I the they're is that in be going a the

be going in it of are Some of largest that keep future years -- And out that's iterations kicked kind some on have. to that. share we coming franchises, grew later LeAAPS relative using product U.S. and to And XX% we the and our going the one talked we to about, as haven't have even introduced in we new a product did But XX.X% we year. to that after they're obviously, subsequent market going in in

to we that did think a see to you're the we solid they benefit still robust little get bit saw some some quarter, So growth of already share starting because relative this that. and

for now. do see whether long market a on to that uptick LeAAPS the So the kind right going not will or that time. we're term going continued this plus drive think out out not there of innovation to I trial that, long we're put of period

Operator

Antalffy UBS. comes with next Our from question Danielle

Danielle Antalffy

barely But most adoption. I'd where legacy give on be is side broad-based bit product ablation if any open Or some one done? this color things, but going one talking it it the see more there. trialing? Penditure after presence AtriCure adoption love call. to users being after open another? ablation more an you than about the Like procedures specific on could area Is they Medtronic is know question of to has of in little you more this do one so going ask you're versus sick have it is where I'm here. And I Mike, mean, AtriClip to I a

Michael H. Carrel

the there. it. I out markets them But the of with relationships. would gather they've it of do it. you're relationships with definitely terms a so the front, and everywhere. mean talked happening course That's that most mean, AtriCure's be -- where definitely we've happening where country. good they're it. where done it's that But in targeted I into an They've see noticed. we everywhere. country. They've definitely using on over then around almost going to market so launch and mean, -- in to they've Medtronic I accounts. good maybe clear, has on It's has it's about product I to trialing probably first Medtronic and got it's gotten seeing ablation in on full it And they're in marketed procedures testing every of some all

country. we across And the them all see so

Danielle Antalffy

Got Okay. it.

being it pick dots sound So procedure use as there's procedures your in done. done any up Penditure seeing doesn't like some in being It ablation in AtriCure is you're sounds open also well. difference like where that

Michael H. Carrel

happen for sure, yes. does That

Danielle Antalffy

Yes.

quick on one good just And I quarter. really follow-up [indiscernible]. right. All Okay. mean, another

same-store a So of new of this versus add sense much get is just trying how sales. center to

at That just more center focused have I new Any as of sort guys not adoption, talked think on about would a great. color on focus existing driving talk centers new there? higher whether you Are more seeing come much continues? of centers. about adds you Can be board? you that

Angela Wirick

EPi-Sense think continue accounts. I a the for are Danielle, said, places, the individual to of board, like of say That accounts. much each quarter faster I'd very slower revenue across we to any a do T Yes, business business, each that's new new areas the the we centers add area to like other our than a franchises. adding little and When pace just at in pace. being add pain management at some accounts I'd say our about

from over quarter first become existing seeing So the some accounts time contribution. with incremental the is higher will revenue newer a of revenue much from in customers that pieces largely XXXX you're that

Operator

Daniel from Our comes with next question Stauder Citizens JMP.

Daniel Stauder

its So you and a year launch that on Clamp outside year. just EnCompass has strong I introduced think just one internationally said And growth first coming be later in EPi-Sense XXXX. U.S. will also my off you're sales. this international European the then

we the about a throughout sales international thinking modeling this ask we high level should year at how just year? as contributions to So wanted be

Angela Wirick

leading over an international accelerated past Danny, the just really we business, years, look growth and activities our to team the several pleased of developments Yes, the rate. when that at with

to throughout You first XXXX, XXXX. saw that in quarter that repeated and this start

but are expectations Our on EPi-Sense a of the launch. now the EPi-Sense both device device. EPi-Sense the right the those steerable is ST the original do market, in have products, We steerable device, of process

nice be to catalyst fewer have much just very procedures. converged for that expect a where done they We that business

the that area So we're hoping catalyst a of that, that's for nice business.

that, hope catalyst later that's through EnCompass to really ready once seen that solid you've and the in launch is is been on here ablation our approval we've XXXX But our for much a then business, the MDR Clamp, EU that's And open like that. our hope in much U.S.

a for bit all more pricing differentiated really I that think markets, in the but be is in of great sensitivity the a the lot aware we're that going a ease international device confidence us I use of give technology product that think market. to of this

rates. So at longer term, we've growth same said, international look, the generally U.S. and

got in growth. our lot some a edge reasons historical based of I think you've leading bigger and to the international performance of catalysts be on that, of might markets say that

Daniel Stauder

pain one And the follow-up just Great. management side. then on

more and with the aspect, reimbursement products? time a studies wanted these ask progress area, in the helping but your You've the handful to Plus the talked in this mind of know what for moves terms in in of reimbursement. but I there's just gaining gaining about about needle direct MAX

Michael H. Carrel

in quite is, out calls cost some the of savings X that frankly, some hospital key or of pain Cryo of the a Block. the somebody length fewer and weeks helped to Nerve of because X, return I cases happen data, that reimbursement use showing think pain that X, whether these is it's management in evidence clinical back ER to lot experiences our stay of by way, out, a combination the clinical or on visits really

to are of studies some of a cardiac papers the demonstrate in that And were surgery. reduction use I to the these you've It's done going but think are that being time, In of though. out like years. But that, studied about are benefits It time through seen We've there. time, take true written enough some treating surgery. studies a Afib there We opioid kind that were studies, long got We X cardiac in of time. saw the that over I that know addition us that really to afterwards. studies. lot that show to funded sounds at have took if

last for quite dramatically be starting management, a the a just those. believe And helping to the same see two happen and of fund studies pain to increase years CMS that. will more You're now need lot thing we're over lot done, eventually reimbursement we I for but

Operator

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

Michael Matson

timing So you use on give for clamps wanted launching a Mike, us few any an to when PFA mentioned open were be would you see just you Or ago, a that ablation. is it of clamp? what a conference new if kind working on or and guess, just update required? you it at new I that would Is I generator? could that, our were developing, weeks

Michael H. Carrel

Yes.

a did working on on timing. have our other distributed as I generator that and we our sources been all area. briefly, got we work combination and to across As It's technologies mean, available be quite mention of update frankly, we energy clamp in for have -- well of we product customers. the line. need to particular that No believe

many, of think exciting the we're an procedures new into have that technology make we going we PFA a for basically is that part so many years. we've And been to incorporated sure

that's give to et product going have some of what looks to cetera. like through any A specific updates work, and like. go to work early kind clinical Still that on regulatory

But done we've a standpoint, be that to product of a lot work from definitely progress. there's on So front. made

Michael Matson

LeAAPS just then And trial. the on Okay.

be a if fast. pretty clips enrolling you mean, well, you successful, are and one would think really would think the be the that there? Do or you Or use. competitor products know your effect that -- any it well? of prophylactic specific do create and you would I kind that do I really benefit to for class doing but do when you degree of obviously, stroke it out I think out So of any it's -- just as But to guess, indication, help kind AtriClip? would with

Michael H. Carrel

use. in it's to we I -- exclusively term. care believe be do our patient point, I this And thing start because mean, the trial right to to let's mean, one, Well, long number it's your I product going mean, we're investing for the for

X,XXX to going be The to That's the get to stroke the going label what we'll label. have product be is a trial. So patient the it's that's be stroke to used AtriClip. going

Our competitor not that. products have would

should question Absolutely. a about a differentiator. be that able There's it we're that differentiator? once that Is kind label, get it to of no

on patients they point, there'll be product somebody to used about want effect that believe else some a not market that going talking some on what's clip use At it, we're million has be in However, including to to around the like the and X.X benefits has that I'm that level product product somebody any some area. will if a in of cardiac sort that point. class other and feels globe using sure be surgery, of just that,

obviously, have competition. me, going to to So you're

I time. and some you're going earlier, markets, We you have when going of as has during competition got and mentioned of level is saw We then saw share market. And in to well. to it in competition those period been there the in both build product the TAVR. get it best big competition that created it the it they've in the market. And dollar occlusion markets best becomes got clinical who's the cases, multibillion evidence, multibillion-dollar who's

Operator

Suraj from Kalia question And our with next Oppenheimer. comes

Suraj Kalia

me Mike, Angie, right? all can you hear

Angela Wirick

you. hear can We

Suraj Kalia

Perfect.

PFA questions of clamp. way. of is So Mike, your a couple One in terms a

For were as So of PFA prepared open, any long-standing believe for of trials, you I the us yet. existing it thread clamp how just through with seeing us right? terms with complementarity remarks, AF, in have the I you catheters. don't kind can your to curious understand, -- could persistent is And you they started clinical clamp PFA PFA, have in but just I'm believe you data the I talked walk if we and the complementary In needle catheters. about your

Michael H. Carrel

to cryo When trial think trial, CONVERGE. complementary today, it's the procedure about lot PFA finishing lot used if it do on of RF. out what can it's PFA in our was doing a and to aspects, kind similar In been the the wall that. veins. you pulmonary going being used a with and with CONVERGE you our and and exactly catheter the do of has do of is be very that's Yes, the upcoming PVI the a ablation, veins, back just today, usage it used

approach epicardial to may that to bring what using they their the So their instead with cryo that of the they're EPs when RF complement surface table. we getting or the choose use it from

but shown clinical add to We trial, a get almost and absolutely the durable, you has more that. trial much as lesion after success a get when you epicardial result long-lasting you believe been clinical double of rate endocardial, and

Europe And starting to definitely that of people doing. in begin U.S. to what of that, catheter some would they They're other used see you using doing and complement the so are when just the they you're use in they're otherwise to both that -- kind endocardial were have portion. instead

Suraj Kalia

So and argument Mike, achieve transmurality being forgive belaboring just doesn't that is PFA clear, made me The be for to . this.

Michael H. Carrel

saying seen from the the veins. have is is. What data them results PFA of pulmonary most not No, been these no. I'm I'm incredibly and PFA for in suggesting the well, works -- it and we've

that there of things, safety the surface which get can't and between endo reasons, endocardial some of surface, that and getting a some is where very and epi better the typically areas And together which does good of catheters are there to differences results. and other reasons, so ablation the transmural to much are the pads And the fat is really a epicardial backlog get don't CONVERGE to variety they get for that or well.

pulmonary know, The endocardial products veins, as you well well Suraj. do the doing very

a don't I'm they've they for doing they been that we've think get seen I in that veins, And saying so seen sure, you've that the job And sure. the and veins, technology the that. on transmural not with good transmural, get very for PFA

Suraj Kalia

in Mike, quarter? And AtriClip forgive could quantify have is LARIAT Obviously, I it. the me, of Got the have to know MIS, MIS. I impact LARIAT ask, you you --

Penditure open You then AtriClip have open. and

open what quantifying impact you and of two say, from, kind let's LARIAT for from these Penditure saw MIS. Just buckets, for

Angela Wirick

very saw XXXX, again, exclude on not users soft a XX supported limited in for of decline XXX(k) of it number other for the particular with roughly the a a When first we of very overall by Suraj, QX LARIAT, Yes. growth basis an was impact company otherwise. throughout XXXX, it's points but clearance, question, product, quarter, clinical this just you the a kind quarter. LARIAT and data outsized again,

reiterate of on of growth I drove open for And the quarter good results. would the XX.X% our just that AtriClip business, about feel side we and really those

Operator

and to at Executive remarks. closing like I'm it Carrel, back time. Chief this further to turn I President showing would Mike no now for Officer, questions

Michael H. Carrel

us you Thank for Great. today. everyone, joining on again, call the

the Another enjoyed great Everybody, quarter session Bye now. for AtriCure have and question-and-answer here. great a evening.

Operator

you concludes Thank for participating. conference call. This today's

You now disconnect. may .

AtriCure (ATRC) 1 May 242024 Q1 Earnings call transcript