• Total Revenue: $124 million, 14% growth year-over-year.
• Adjusted EBITDA: $9 million, over 200% improvement from Q1 2024.
• Appendage Management Revenue Growth: 19% globally, with 23% growth in open AtriClip devices.
• Open Ablation Revenue: $33.3 million, 13.7% increase from Q1 2024.
• US Revenue: $101.1 million, 12.1% increase from Q1 2024.
• International Revenue: $22.5 million, 20.8% increase on a reported basis.
• Gross Margin: 74.9%, up 27 basis points from Q1 2024.
• Operating Expenses: $98.6 million, 6.9% increase from Q1 2024.
• Loss Per Share: $0.14, compared to $0.28 in Q1 2024.
• Cash and Investments: Approximately $100 million at the end of Q1 2025.
• Pain Management Revenue Growth: 39% in Q1 2025.
• Minimally Invasive Ablation Sales: $8.5 million, 31% decline from Q1 2024.

• Warning! GuruFocus has detected 1 Warning Sign with ASAPF.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• AtriCure Inc (NASDAQ:ATRC) reported a 14% growth in total revenue for the first quarter, reaching $124 million, driven by strong performance in pain management and appendage management franchises.
• The company achieved a significant improvement in profitability, with adjusted EBITDA increasing by more than 200% from the first quarter of 2024, reaching $9 million.
• AtriCure Inc (NASDAQ:ATRC) received 510(k) clearance for its minimally invasive AtriClip PRO-Mini device, which is 60% smaller than the next lowest-profile device, enhancing visualization and precise placement.
• The company's Cryo Nerve Block therapy for pain management saw a 39% growth in the first quarter, with the cryoSPHERE MAX and cryoSPHERE+ probes driving broader use and interest from new accounts.
• AtriCure Inc (NASDAQ:ATRC) is expanding its market with the recent FDA 510(k) clearance of the cryoXT probe, designed for extremity amputations, offering an opioid-free solution for phantom and residual limb pain.

Negative Points

• Minimally invasive ablation sales declined by approximately 31% over the first quarter of 2024, due to pressure from the adoption of PFA catheters.
• The company continues to face downward pressure in the US market for Hybrid AF therapy, despite strong growth in Europe.
• Operating expenses increased by 6.9% from the first quarter of 2024, driven by continued enrollment in the LeAAPS clinical trial and increased headcount for product development.
• Despite strong performance, AtriCure Inc (NASDAQ:ATRC) reported a loss per share of $0.14 in the first quarter of 2025, compared to a loss per share of $0.28 in the first quarter of 2024.
• The company anticipates continued pressure on its minimally invasive ablation sales due to the widespread adoption of PFA, impacting near-term growth.

Q & A Highlights

Q: Can you clarify the impact of tariffs on AtriCure's operations and whether you can mitigate any potential effects? A: Angela Wirick, CFO, explained that the impact on gross margin is expected to be modest, with most suppliers based in the US. The situation in China is being monitored, but it represents a small part of the business. The guidance already considers these potential impacts.

Q: What is driving the acceleration in appendage management, and how is the FLEX-Mini device contributing? A: Michael Carrel, CEO, noted that the launch of the FLEX-Mini device, which is 60% smaller than competitors, has been well-received, leading to faster-than-expected adoption and significant growth in new accounts and usage by surgeons.

Q: Why not raise the lower end of the revenue guidance given the strong performance in key areas? A: Angela Wirick, CFO, stated that it is still early in the year. The company is confident in its SG&A leverage and expects to continue executing well, which should allow them to meet or exceed their guidance.

Q: Can you provide more details on the growth in the pain management segment and the impact of the cryoSPHERE MAX probe? A: Michael Carrel, CEO, highlighted that the cryoSPHERE MAX probe has led to broader adoption across accounts, particularly in thoracotomies, due to reduced procedure time, encouraging more surgeons to adopt the therapy.

Q: What is the outlook for the minimally invasive (MIS) business, and when might it return to positive growth? A: Michael Carrel, CEO, acknowledged ongoing pressure from PFA but noted that some accounts are starting to see failures with PFA, leading to renewed interest in AtriCure's solutions. While pressure is expected to continue this year, there is optimism for future growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.