AtriCure, Inc. Q2 FY2025 earnings call

• Product launches: New products like AtriClip FLEX Mini, cryoSPHERE MAX, and cryoXT for Pain Management drove growth. - Clinical trials: Completed LeAAPS trial with over 6,500 patients, preparing for BoxX-NoAF trial activation, and progressing PFA-enabled EnCompass platform development. - Innovation: Launched PRO Mini AtriClip, with EnCompass Clamp showing durable growth over 3 years, and PFA co-development reaching preclinical testing milestones.

Appendage management: Worldwide revenue grew over 20%, with open left atrial appendage management up 29% in the US, and AtriClip FLEX Mini reaching over 20% of US appendage management revenue. Ablation (open): Grew 15%, led by EnCompass Clamp. Pain Management: Grew nearly 43% driven by cryoSPHERE MAX and cryoSPHERE+ probes. Minimally invasive hybrid therapy: Declined due to increased PFA catheter adoption in the US. International: Revenue up 23.3% on reported basis and 19.9% constant currency compared to Q2 2024.

• Revenue expected $527M-$533M for 2025, 13%-15% growth over 2024. - Adjusted EBITDA forecast $49M-$52M for 2025. - Quarterly cadence: Q3 expected low single-digit sequential revenue decline from Q2, Q4 to rebound. - Gross margin expected comparable to 2024 with cost savings and product mix offsetting geographic mix impacts.

• Market dynamics: Minimally invasive hybrid therapy facing pressure due to PFA catheter adoption. - Uncertainties: Clinical trial outcomes, reimbursement, and competition posing risks to business performance.

Q: On appendage management, what's the impact of LeAAPS completion on physician utilization?

A: No material impact on revenue; overall adoption increased with more people managing appendages.

Q: Guidance shows deceleration, any one-time factors?

A: Philosophy to guide achievable numbers, hybrid business facing pressure but rest of business strong.

Q: About Pain Management, conversion of accounts to cryoSPHERE MAX?

A: In US, cryoSPHERE MAX was in over half of accounts, cautiously optimistic for Europe but economics matter.

Q: On clinical initiatives, next milestones for BoxX-NoAF and PFA?

A: BoxX-NoAF expects first enrollment this year; PFA-enabled EnCompass platform aims for first in-human use by end of 2025.

Q: SG&A spend growth, future expectations?

A: Expect mid-to-upper single-digit growth going forward, below top line growth while investing in resources.