0001323885False00013238852024-10-292024-10-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) of the
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 29, 2024
AtriCure, Inc.
(Exact name of registrant as specified in charter)
Delaware
000-51470
34-1940305
(State or other jurisdiction of
incorporation)
(Commission File Number)
(IRS Employer Identification No.)
7555 Innovation Way, Mason OH 45040
(Address of Principal Executive Offices, and Zip Code)
(513) 755-4100
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act: 
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $.001 par valueATRCNASDAQ Global Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02.    Results of Operations and Financial Condition.
On October 29, 2024, AtriCure, Inc. issued a press release regarding its financial results for the third quarter ended September 30, 2024. The Company will hold a conference call on October 29, 2024 at 4:30 p.m. Eastern Time to discuss the financial results. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
The information in Item 2.02 of Form 8-K and in the press release attached as Exhibit 99.1 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in each of Item 2.02 of this Form 8-K and Exhibit 99.1 shall not be incorporated by reference in any filing or other document under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing or document.
Item 9.01.    Financial Statements and Exhibits.
(d)Exhibits
No.Description
99.1
104Cover Page Interactive Data File--the cover page XBRL tags are embedded within the Inline XBRL document.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ATRICURE, INC.
Dated:October 29, 2024By:/s/ Angela L. Wirick
Angela L. Wirick
Chief Financial Officer


image_0.jpg
Exhibit 99.1
For immediate release
October 29, 2024

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
MASON, Ohio, October 29, 2024 – AtriCure, Inc. (Nasdaq: ATRC), a leading innovator in surgical treatments and therapies for atrial fibrillation (Afib), left atrial appendage (LAA) management and post-operative pain management, today announced third quarter 2024 financial results.
“Our broad-based growth in the third quarter reflects strong, ongoing adoption trends throughout our business,” said Michael Carrel, President and Chief Executive Officer at AtriCure. “During the quarter, we launched several new products in the United States and Europe, leading to an acceleration in growth along with continued improvement in profitability and positive cash flow generation. Our results are a testament to our commitment to expand access to our innovative solutions for patients and providers worldwide.”
Third Quarter 2024 Financial Results
Revenue for the third quarter 2024 was $115.9 million, an increase of 17.9% over third quarter 2023 revenue (17.8% on a constant currency basis), reflecting continued adoption of our products by physicians globally for the treatment of patients with Afib, LAA management and post-operative pain management. On a sequential basis, worldwide revenue for the third quarter 2024 decreased approximately 0.3% from the second quarter 2024 due to normal seasonality of procedures in summer months.
U.S. revenue was $95.5 million, an increase of $13.8 million or 16.8%, compared to the third quarter 2023. U.S. revenue growth was driven by sales across key product lines, including the ENCOMPASS® clamp in open ablation, AtriClip® Flex·V® device in appendage management and cryoSPHERE® probes for post-operative pain management. International revenue increased $3.9 million or 23.3% (22.4% on a constant currency basis) to $20.5 million, realizing significant growth across all franchises in Europe and most of our other major geographic regions.
Gross profit for the third quarter 2024 was $86.8 million compared to $73.9 million for the third quarter 2023. Gross margin was 74.9% for the third quarter 2024, a decrease of 27 basis points from the third quarter 2023, reflecting less favorable geographic and product mix. Loss from operations for the third quarter 2024 was $7.4 million, compared to $8.1 million for the third quarter 2023. Basic and diluted net loss per share was $0.17 for the third quarter 2024, compared to $0.20 for the third quarter 2023.
Adjusted EBITDA for the third quarter 2024 is $7.9 million, an increase of $3.2 million from third quarter of 2023. Adjusted loss per share for the third quarter 2024 was $0.17, compared to $0.20 for the third quarter 2023.
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
AtriCure now expects full year 2024 revenue of approximately $459 million to $462 million, reflecting growth of approximately 15% to 16%. Management continues to expect full year 2024 Adjusted EBITDA of approximately $26 million to $29 million, with improvements annually thereafter. Projected full year 2024 adjusted EBITDA represents a 34% to 49% increase over full year 2023. Full year 2024 adjusted loss per share is expected to be in the range of $0.74 to $0.80.


Conference Call
AtriCure will host a conference call at 4:30 p.m. Eastern Time on Tuesday, October 29, 2024 to discuss third quarter 2024 financial results. To access the webcast, please visit the Investors page of AtriCure’s corporate website at https://ir.atricure.com/events-and-presentations/events. Participants are encouraged to register more than 15 minutes before the webcast start time. A replay of the presentation will be available for 90 days following the presentation.
About AtriCure
AtriCure, Inc. provides innovative technologies for the treatment of Afib and related conditions. Afib affects more than 37 million people worldwide. Electrophysiologists, cardiothoracic and thoracic surgeons around the globe use AtriCure technologies for the treatment of Afib, reduction of Afib related complications, and post-operative pain management. AtriCure’s Isolator® Synergy™ Ablation System is the first medical device to receive FDA approval for the treatment of persistent Afib. AtriCure’s AtriClip® Left Atrial Appendage Exclusion System products are the most widely sold LAA management devices worldwide. AtriCure’s Hybrid AF™ Therapy is a minimally invasive procedure that provides a lasting solution for long-standing persistent Afib patients. AtriCure’s cryoICE cryoSPHERE® probes are cleared for temporary ablation of peripheral nerves to block pain, providing pain relief in cardiac and thoracic procedures. For more information, visit AtriCure.com or follow us on X (formerly known as Twitter) @AtriCure.
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 October 29, 2024. We assume no obligation to update any forward-looking statements contained in this release as a result of new information or future events or developments, except as may be required by law.
Use of Non-GAAP Financial Measures
To supplement AtriCure’s condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, AtriCure provides certain non-GAAP financial measures in this release as supplemental financial metrics.
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 AtriCure may not be the same or calculated in the same manner as those used and calculated by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for AtriCure’s financial results prepared and reported in accordance with GAAP. We urge


investors to review the reconciliation of these non-GAAP financial measures to the comparable GAAP financials measures included in this press release, and not to rely on any single financial measure to evaluate our business.
CONTACTS:
Angie Wirick
AtriCure, Inc.
Chief Financial Officer
(513) 755-5334
awirick@atricure.com
Marissa Bych
Gilmartin Group
Investor Relations
(415) 937-5402
marissa@gilmartinir.com


ATRICURE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
United States Revenue:
Open ablation$30,601 $25,844 $90,661 $77,988 
Minimally invasive ablation11,117 10,893 35,263 31,900 
Pain management16,314 12,591 44,059 36,249 
Total ablation58,032 49,328 169,983 146,137 
Appendage management37,420 32,364 111,257 98,647 
Total United States95,452 81,692 281,240 244,784 
International Revenue:
Open ablation8,607 8,007 25,679 23,015 
Minimally invasive ablation1,681 1,578 5,559 4,820 
Pain management1,590 547 3,768 1,214 
Total ablation11,878 10,132 35,006 29,049 
Appendage management8,580 6,466 24,784 18,869 
Total International20,458 16,598 59,790 47,918 
Total revenue115,910 98,290 341,030 292,702 
Cost of revenue29,117 24,421 86,125 72,147 
Gross profit86,793 73,869 254,905 220,555 
Operating expenses:
Research and development expenses20,960 20,354 61,221 53,119 
Selling, general and administrative expenses73,238 61,604 219,174 185,451 
Total operating expenses94,198 81,958 280,395 238,570 
Loss from operations(7,405)(8,089)(25,490)(18,015)
Other expense, net(126)(919)(2,882)(2,416)
Loss before income tax expense(7,531)(9,008)(28,372)(20,431)
Income tax expense322 47 758 218 
Net loss$(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 diluted47,105 46,411 46,912 46,262 


ATRICURE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
September 30,
2024		December 31,
2023
Assets
Current assets:
Cash, cash equivalents, and short-term investments$130,335 $137,285 
Accounts receivable, net54,909 52,501 
Inventories76,546 67,897 
Prepaid and other current assets7,496 8,563 
Total current assets269,286 266,246 
Property and equipment, net43,537 42,435 
Operating lease right-of-use assets6,100 4,324 
Goodwill and intangible assets, net293,133 298,767 
Other noncurrent assets3,012 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 liabilities74,431 74,569 
Long-term debt61,865 60,593 
Finance and operating lease liabilities12,548 11,368 
Other noncurrent liabilities1,203 1,234 
Total Liabilities150,047 147,764 
Stockholders' Equity:
Common stock49 48 
Additional paid-in capital851,306 824,170 
Accumulated other comprehensive loss(147)(993)
Accumulated deficit(386,187)(357,057)
Total Stockholders' Equity465,021 466,168 
Total Liabilities and Stockholders' Equity$615,068 $613,932 


ATRICURE, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS
(In Thousands)
(Unaudited)
Reconciliation of Non-GAAP Adjusted Income (Adjusted EBITDA)
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Net loss, as reported$(7,853)$(9,055)$(29,130)$(20,649)
Income tax expense322 47 758 218 
Other expense, net126 919 2,882 2,416 
Depreciation and amortization expense4,928 4,111 13,907 10,634 
Share-based compensation expense10,364 8,661 30,020 26,416 
Gain from legal settlements
— — — (4,412)
Non-GAAP adjusted income (adjusted EBITDA)$7,887 $4,683 $18,437 $14,623 
Reconciliation of Non-GAAP Adjusted Loss Per Share
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Net loss, as reported$(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 diluted47,105 46,411 46,912 46,262 


v3.24.3
Cover
Oct. 29, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 29, 2024
Entity Registrant Name AtriCure, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 000-51470
Entity Tax Identification Number 34-1940305
Entity Address, Address Line One 7555 Innovation Way
Entity Address, City or Town Mason
Entity Address, State or Province OH
Entity Address, Postal Zip Code 45040
City Area Code 513
Local Phone Number 755-4100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $.001 par value
Trading Symbol ATRC
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Central Index Key 0001323885
Amendment Flag false
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