AtriCure Reports Third Quarter 2024 Financial Results
-
Worldwide revenue of
$115.9 million – an increase of 17.9% year over year -
U.S. revenue of$95.5 million – an increase of 16.8% year over year -
Achieved 20% growth on revenues from open appendage management devices in the
U.S. -
International revenue of
$20.5 million – an increase of 23.3% year over year -
Positive cash flow generation of
$16.3 million in third quarter 2024
“Our broad-based growth in the third quarter reflects strong, ongoing adoption trends throughout our business,” said
Third Quarter 2024 Financial Results
Revenue for the third quarter 2024 was
Gross profit for the third quarter 2024 was
Adjusted EBITDA for the third quarter 2024 is
Constant currency revenue, adjusted EBITDA and adjusted loss per share are non-GAAP financial measures. We discuss these non-GAAP financial measures and provide reconciliations to GAAP measures later in this release.
2024 Financial Guidance
Conference Call
About
Forward-Looking Statements
This press release contains “forward-looking statements”– that is, statements related to future events that by their nature address matters that are uncertain. This press release also includes forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially. For details on the uncertainties that may cause our actual results to be materially different than those expressed in our forward-looking statements, visit http://www.atricure.com/forward-looking-statements as well as our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q which contain risk factors. Except where otherwise noted, the information contained in this release is as of
Use of Non-GAAP Financial Measures
To supplement AtriCure’s condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in
Revenue reported on a constant currency basis is a non-GAAP measure, calculated by applying previous period foreign currency exchange rates to each of the comparable periods. Management analyzes revenue on a constant currency basis to better measure the comparability of results between periods. Because changes in foreign currency exchange rates have a non-operating impact on revenue, the Company believes that evaluating growth in revenue on a constant currency basis provides an additional and meaningful assessment of revenue to both management and investors.
Adjusted EBITDA is calculated as net income (loss) before other income/expense (including interest), income tax expense, depreciation and amortization expense, share-based compensation expense, acquisition costs, legal settlement costs, impairment of intangible assets and change in fair value of contingent consideration liabilities. Management believes in order to properly understand short-term and long-term financial trends, investors may wish to consider the impact of these excluded items in addition to GAAP measures. The excluded items vary in frequency and/or impact on our continuing results of operations and management believes that the excluded items are typically not reflective of our ongoing core business operations and financial condition. Further, management uses adjusted EBITDA for both strategic and annual operating planning. A reconciliation of adjusted EBITDA reported in this release to the most comparable GAAP measure for the respective periods appears in the table captioned “Reconciliation of Non-GAAP Adjusted Income (Adjusted EBITDA)” later in this release.
Adjusted loss per share is a non-GAAP measure which calculates the net loss per share before non-cash adjustments in fair value of contingent consideration liabilities, impairment of intangible assets, debt extinguishment and legal settlements. A reconciliation of adjusted loss per share reported in this release to the most comparable GAAP measure for the respective periods appears in the table captioned “Reconciliation of Non-GAAP Adjusted Loss Per Share” later in this release.
The non-GAAP financial measures used by
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Amounts) (Unaudited)
|
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
United States Revenue: |
|
|
|
|
|
|
|
||||||||
|
Open ablation |
$ |
30,601 |
|
|
$ |
25,844 |
|
|
$ |
90,661 |
|
|
$ |
77,988 |
|
|
Minimally invasive ablation |
|
11,117 |
|
|
|
10,893 |
|
|
|
35,263 |
|
|
|
31,900 |
|
|
Pain management |
|
16,314 |
|
|
|
12,591 |
|
|
|
44,059 |
|
|
|
36,249 |
|
|
Total ablation |
|
58,032 |
|
|
|
49,328 |
|
|
|
169,983 |
|
|
|
146,137 |
|
|
Appendage management |
|
37,420 |
|
|
|
32,364 |
|
|
|
111,257 |
|
|
|
98,647 |
|
|
Total |
|
95,452 |
|
|
|
81,692 |
|
|
|
281,240 |
|
|
|
244,784 |
|
|
International Revenue: |
|
|
|
|
|
|
|
||||||||
|
Open ablation |
|
8,607 |
|
|
|
8,007 |
|
|
|
25,679 |
|
|
|
23,015 |
|
|
Minimally invasive ablation |
|
1,681 |
|
|
|
1,578 |
|
|
|
5,559 |
|
|
|
4,820 |
|
|
Pain management |
|
1,590 |
|
|
|
547 |
|
|
|
3,768 |
|
|
|
1,214 |
|
|
Total ablation |
|
11,878 |
|
|
|
10,132 |
|
|
|
35,006 |
|
|
|
29,049 |
|
|
Appendage management |
|
8,580 |
|
|
|
6,466 |
|
|
|
24,784 |
|
|
|
18,869 |
|
|
|
|
20,458 |
|
|
|
16,598 |
|
|
|
59,790 |
|
|
|
47,918 |
|
|
Total revenue |
|
115,910 |
|
|
|
98,290 |
|
|
|
341,030 |
|
|
|
292,702 |
|
|
Cost of revenue |
|
29,117 |
|
|
|
24,421 |
|
|
|
86,125 |
|
|
|
72,147 |
|
|
Gross profit |
|
86,793 |
|
|
|
73,869 |
|
|
|
254,905 |
|
|
|
220,555 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
|
Research and development expenses |
|
20,960 |
|
|
|
20,354 |
|
|
|
61,221 |
|
|
|
53,119 |
|
|
Selling, general and administrative expenses |
|
73,238 |
|
|
|
61,604 |
|
|
|
219,174 |
|
|
|
185,451 |
|
|
Total operating expenses |
|
94,198 |
|
|
|
81,958 |
|
|
|
280,395 |
|
|
|
238,570 |
|
|
Loss from operations |
|
(7,405 |
) |
|
|
(8,089 |
) |
|
|
(25,490 |
) |
|
|
(18,015 |
) |
|
Other expense, net |
|
(126 |
) |
|
|
(919 |
) |
|
|
(2,882 |
) |
|
|
(2,416 |
) |
|
Loss before income tax expense |
|
(7,531 |
) |
|
|
(9,008 |
) |
|
|
(28,372 |
) |
|
|
(20,431 |
) |
|
Income tax expense |
|
322 |
|
|
|
47 |
|
|
|
758 |
|
|
|
218 |
|
|
Net loss |
$ |
(7,853 |
) |
|
$ |
(9,055 |
) |
|
$ |
(29,130 |
) |
|
$ |
(20,649 |
) |
|
Basic and diluted net loss per share |
$ |
(0.17 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.62 |
) |
|
$ |
(0.45 |
) |
|
Weighted average shares used in computing net loss per share: |
|
|
|
|
|
|
|
||||||||
|
Basic and diluted |
|
47,105 |
|
|
|
46,411 |
|
|
|
46,912 |
|
|
|
46,262 |
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands) (Unaudited)
|
|||||||
|
|
|
|
|||||
|
Assets |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash, cash equivalents, and short-term investments |
$ |
130,335 |
|
|
$ |
137,285 |
|
|
Accounts receivable, net |
|
54,909 |
|
|
|
52,501 |
|
|
Inventories |
|
76,546 |
|
|
|
67,897 |
|
|
Prepaid and other current assets |
|
7,496 |
|
|
|
8,563 |
|
|
Total current assets |
|
269,286 |
|
|
|
266,246 |
|
|
Property and equipment, net |
|
43,537 |
|
|
|
42,435 |
|
|
Operating lease right-of-use assets |
|
6,100 |
|
|
|
4,324 |
|
|
|
|
293,133 |
|
|
|
298,767 |
|
|
Other noncurrent assets |
|
3,012 |
|
|
|
2,160 |
|
|
Total Assets |
$ |
615,068 |
|
|
$ |
613,932 |
|
|
Liabilities and Stockholders' Equity |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable and accrued liabilities |
$ |
71,716 |
|
|
$ |
72,036 |
|
|
Current lease liabilities |
|
2,715 |
|
|
|
2,533 |
|
|
Total current liabilities |
|
74,431 |
|
|
|
74,569 |
|
|
Long-term debt |
|
61,865 |
|
|
|
60,593 |
|
|
Finance and operating lease liabilities |
|
12,548 |
|
|
|
11,368 |
|
|
Other noncurrent liabilities |
|
1,203 |
|
|
|
1,234 |
|
|
Total Liabilities |
|
150,047 |
|
|
|
147,764 |
|
|
Stockholders' Equity: |
|
|
|
||||
|
Common stock |
|
49 |
|
|
|
48 |
|
|
Additional paid-in capital |
|
851,306 |
|
|
|
824,170 |
|
|
Accumulated other comprehensive loss |
|
(147 |
) |
|
|
(993 |
) |
|
Accumulated deficit |
|
(386,187 |
) |
|
|
(357,057 |
) |
|
Total Stockholders' Equity |
|
465,021 |
|
|
|
466,168 |
|
|
Total Liabilities and Stockholders' Equity |
$ |
615,068 |
|
|
$ |
613,932 |
|
|
RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS (In Thousands) (Unaudited)
|
|||||||||||||||
|
Reconciliation of Non-GAAP Adjusted Income (Adjusted EBITDA) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
Net loss, as reported |
$ |
(7,853 |
) |
|
$ |
(9,055 |
) |
|
$ |
(29,130 |
) |
|
$ |
(20,649 |
) |
|
Income tax expense |
|
322 |
|
|
|
47 |
|
|
|
758 |
|
|
|
218 |
|
|
Other expense, net |
|
126 |
|
|
|
919 |
|
|
|
2,882 |
|
|
|
2,416 |
|
|
Depreciation and amortization expense |
|
4,928 |
|
|
|
4,111 |
|
|
|
13,907 |
|
|
|
10,634 |
|
|
Share-based compensation expense |
|
10,364 |
|
|
|
8,661 |
|
|
|
30,020 |
|
|
|
26,416 |
|
|
Gain from legal settlements |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,412 |
) |
|
Non-GAAP adjusted income (adjusted EBITDA) |
$ |
7,887 |
|
|
$ |
4,683 |
|
|
$ |
18,437 |
|
|
$ |
14,623 |
|
|
Reconciliation of Non-GAAP Adjusted Loss Per Share |
|||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net loss, as reported |
$ |
(7,853 |
) |
|
$ |
(9,055 |
) |
|
$ |
(29,130 |
) |
|
$ |
(20,649 |
) |
|
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
1,362 |
|
|
|
— |
|
|
Gain from legal settlements |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,412 |
) |
|
Non-GAAP adjusted net loss |
$ |
(7,853 |
) |
|
$ |
(9,055 |
) |
|
$ |
(27,768 |
) |
|
$ |
(25,061 |
) |
|
Basic and diluted adjusted net loss per share |
$ |
(0.17 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.59 |
) |
|
$ |
(0.54 |
) |
|
Weighted average shares used in computing adjusted net loss per share |
|
|
|
|
|
|
|
||||||||
|
Basic and diluted |
|
47,105 |
|
|
|
46,411 |
|
|
|
46,912 |
|
|
|
46,262 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241029706905/en/
Chief Financial Officer
(513) 755-5334
awirick@atricure.com
Investor Relations
(415) 937-5402
marissa@gilmartinir.com
Source:
