Atricure reports second quarter 2022 financial results
Mason, ohio--(business wire)--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 second quarter 2022 financial results. “we delivered a remarkable second quarter as we continue changing the standard of care for millions of patients globally,” said michael carrel, president and chief executive officer of atricure. “our results demonstrate the building strength of our portfolio of solutions, while continued product innovation, clinical science and physician education drive expansive, long-term growth opportunities.” second quarter 2022 financial results revenue for the second quarter 2022 was $84.5 million, an increase of 18.4% (an increase of 19.8% on a constant currency basis) over second quarter 2021 revenue. u.s. revenue was $71.3 million, an increase of $11.2 million or 18.6%, compared to second quarter 2021. u.s. revenue growth was driven by sales across key product lines, notably the cryosphere® probe for post-operative pain management, atriclip® flex·v® and pro·v® devices, the new encompass® clamp and our epi-sense® system. international revenue increased $2.0 million or 17.3% (an increase of 26.3% on a constant currency basis) to $13.3 million, driven mainly by appendage management products and reflecting a rebound in procedure volumes in europe and growth in australia. on a sequential basis, worldwide revenue for the second quarter 2022 increased approximately 13.3% over first quarter 2022. gross profit for the second quarter 2022 was $63.5 million compared to $54.1 million for the second quarter 2021. gross margin was 75.1% and 75.8% for the second quarters 2022 and 2021 respectively, largely reflecting changes in u.s. product mix and cost increases driven by inflationary and supply chain pressures. loss from operations for the second quarter 2022 was $13.7 million, compared to $15.1 million for the second quarter 2021. basic and diluted net loss per share was $0.32 for the second quarter 2022, compared to $0.36 for the second quarter 2021. adjusted ebitda was negative for the second quarter 2022 at $3.2 million, compared to negative $2.7 million for second quarter of 2021. adjusted loss per share for the second quarter 2022 was $0.32 compared to $0.30 for the second quarter 2021. constant currency revenue, adjusted ebitda and adjusted loss per share are non-gaap measures. we discuss these non-gaap measures and provide reconciliations to gaap measures later in this release. 2022 financial guidance full year 2022 revenue is projected to be approximately $323 million to $333 million, reflecting growth of approximately 18% to 21% over full year 2021. management continues to expect full year 2022 adjusted ebitda to be a loss of approximately $2 million to $4 million, and the full year 2022 adjusted loss per share of approximately $1.07 to $1.12. conference call atricure will host a conference call at 4:30 p.m. eastern time on tuesday, august 2, 2022 to discuss its second quarter 2022 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 33 million people worldwide. electrophysiologists and cardiothoracic surgeons around the globe use atricure technologies for the treatment of afib and reduction of afib related complications. 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® probe is 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 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 and the related attachment is as of august 2, 2022. we assume no obligation to update any forward-looking statements contained in this release and the related attachment 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, which are determined by the average daily euro to dollar exchange rate, 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 asset 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 loss (adjusted ebitda)” later in this release. adjusted income (loss) per share is a non-gaap measure which calculates the net income (loss) per share before non-cash adjustments in fair value of contingent consideration liabilities, impairment of intangible asset and legal settlement costs. a reconciliation of adjusted income (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. atricure, inc. and subsidiaries condensed consolidated statements of operations (in thousands, except per share amounts) (unaudited) three months ended june 30, six months ended june 30, 2022 2021 2022 2021 united states revenue: open ablation $ 22,070 $ 19,503 $ 41,044 $ 36,942 minimally invasive ablation 10,154 9,702 18,769 18,087 pain management 10,210 5,709 18,224 9,607 total ablation 42,434 34,914 78,037 64,636 appendage management 28,831 25,156 55,500 45,743 total united states 71,265 60,070 133,537 110,379 international revenue: open ablation 6,213 5,526 12,705 9,960 minimally invasive ablation 1,271 1,575 2,804 2,849 pain management 114 11 254 11 total ablation 7,598 7,112 15,763 12,820 appendage management 5,666 4,194 9,805 7,452 total international 13,264 11,306 25,568 20,272 total revenue 84,529 71,376 159,105 130,651 cost of revenue 21,010 17,298 39,991 32,033 gross profit 63,519 54,078 119,114 98,618 operating expenses: research and development expenses 14,791 12,197 28,420 23,414 selling, general and administrative expenses 62,388 56,958 118,504 106,166 total operating expenses 77,179 69,155 146,924 129,580 loss from operations (13,660 ) (15,077 ) (27,810 ) (30,962 ) other expense, net (1,136 ) (1,108 ) (2,113 ) (2,109 ) loss before income tax expense (14,796 ) (16,185 ) (29,923 ) (33,071 ) income tax expense 45 66 101 97 net loss $ (14,841 ) $ (16,251 ) $ (30,024 ) $ (33,168 ) basic and diluted net loss per share $ (0.32 ) $ (0.36 ) $ (0.66 ) $ (0.74 ) weighted average shares used in computing net loss per share: basic and diluted 45,692 45,035 45,610 44,834 atricure, inc. and subsidiaries condensed consolidated balance sheets (in thousands) (unaudited) june 30, 2022 december 31, 2021 assets current assets: cash, cash equivalents, and short-term investments $ 118,454 $ 119,090 accounts receivable, net 41,488 33,021 inventories 41,292 38,964 prepaid and other current assets 4,932 5,001 total current assets 206,166 196,076 long-term investments 64,295 104,338 property and equipment, net 36,053 31,409 operating lease right-of-use assets 4,241 4,761 goodwill and intangible assets, net 275,830 277,773 other noncurrent assets 804 955 total assets $ 587,389 $ 615,312 liabilities and stockholders' equity current liabilities: accounts payable and accrued liabilities $ 54,496 $ 54,689 other current liabilities and current maturities of leases 1,820 1,756 total current liabilities 56,316 56,445 long-term debt 59,954 59,741 finance lease liabilities 9,603 10,082 operating lease liabilities 3,591 4,068 other noncurrent liabilities 1,215 1,220 total liabilities 130,679 131,556 stockholders' equity: common stock 46 46 additional paid-in capital 771,185 764,811 accumulated other comprehensive loss (4,344 ) (948 ) accumulated deficit (310,177 ) (280,153 ) total stockholders' equity 456,710 483,756 total liabilities and stockholders' equity $ 587,389 $ 615,312 atricure, inc. and subsidiaries reconciliation of gaap results to non-gaap results (in thousands) (unaudited) reconciliation of non-gaap adjusted loss (adjusted ebitda) three months ended june 30, six months ended june 30, 2022 2021 2022 2021 net loss, as reported $ (14,841 ) $ (16,251 ) $ (30,024 ) $ (33,168 ) income tax expense 45 66 101 97 other expense, net 1,136 1,108 2,113 2,109 depreciation and amortization expense 2,937 2,658 5,804 4,780 share-based compensation expense 7,524 7,141 14,573 13,745 change in fair value of contingent consideration — 2,600 — 5,100 non-gaap adjusted loss (adjusted ebitda) $ (3,199 ) $ (2,678 ) $ (7,433 ) $ (7,337 ) reconciliation of non-gaap adjusted loss per share three months ended june 30, six months ended june 30, 2022 2021 2022 2021 net loss, as reported $ (14,841 ) $ (16,251 ) $ (30,024 ) $ (33,168 ) change in fair value of contingent consideration — 2,600 — 5,100 non-gaap adjusted net loss $ (14,841 ) $ (13,651 ) $ (30,024 ) $ (28,068 ) basic and diluted adjusted net loss per share $ (0.32 ) $ (0.30 ) $ (0.66 ) $ (0.63 ) weighted average shares used in computing adjusted net loss per share basic and diluted 45,692 45,035 45,610 44,834
