AtriCure, Inc. (ATRC) Bundle
A Brief History of AtriCure, Inc.
AtriCure, Inc., founded in 2000, specializes in medical devices for the surgical treatment of atrial fibrillation and left atrial appendage management. The company has been recognized for its innovative approaches in cardiac surgery, particularly with its advanced ablation technologies.
Financial Performance Overview
As of September 30, 2024, AtriCure reported a worldwide revenue of $341,030,000 for the nine-month period, reflecting an increase of $48,328,000 or 16.5% compared to $292,702,000 in the same period of 2023. The growth was attributed to increased adoption of key product lines and new product launches.
| Period | Revenue ($) | Cost of Revenue ($) | Gross Profit ($) | Net Loss ($) | Basic and Diluted Net Loss per Share ($) |
|---|---|---|---|---|---|
| September 30, 2024 | 341,030,000 | 86,125,000 | 254,905,000 | (29,130,000) | (0.62) |
| September 30, 2023 | 292,702,000 | 72,147,000 | 220,555,000 | (20,649,000) | (0.45) |
Key Developments in 2024
In 2024, AtriCure made significant strides in product innovation, receiving several CE Mark certifications, and FDA clearances for new devices. Among these were:
- ENCOMPASS clamp for open ablation procedures.
- EPi-Ease Hybrid access device.
- cryosphere+ cryoablation probe for pain management.
Research and Development Investments
AtriCure's investment in research and development reached $61,221,000 for the nine months ended September 30, 2024, representing an increase from $53,119,000 in the prior year. This increase was driven by expanded clinical activities and personnel costs related to product development.
Operational Challenges
Despite the growth, AtriCure faced challenges, including a net loss of $29,130,000 for the nine-month period ending September 30, 2024, up from a loss of $20,649,000 in the same period in 2023. The increase in losses was primarily due to higher operating expenses, which totaled $280,395,000.
Liquidity Position
As of September 30, 2024, AtriCure had cash, cash equivalents, and investments amounting to $130,335,000, alongside outstanding debt of $61,865,000. The company reported a net working capital of $194,855,000 and an accumulated deficit of $386,187,000.
Market Strategy and Future Outlook
AtriCure continues to focus on expanding its global market presence through strategic initiatives in product innovation and education. The company anticipates that growth will be driven by the increasing adoption of its technologies in cardiac surgery and pain management.
A Who Owns AtriCure, Inc. (ATRC)
Major Shareholders
As of 2024, AtriCure, Inc. (ATRC) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. Below is a summary of the largest shareholders:
| Shareholder | Shares Owned | Percentage of Ownership |
|---|---|---|
| BlackRock, Inc. | 4,200,000 | 8.65% |
| Vanguard Group, Inc. | 3,800,000 | 7.85% |
| State Street Corporation | 3,200,000 | 6.55% |
| Invesco Ltd. | 2,500,000 | 5.15% |
| Other Institutional Investors | 15,000,000 | 31.00% |
| Insider Ownership | 1,500,000 | 3.08% |
| Total Shares Outstanding | 48,748,000 | 100% |
Insider Ownership
In addition to institutional investors, AtriCure has significant insider ownership, which reflects confidence in the company's future. As of September 30, 2024, the company reported the following insider holdings:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| John B. Miller | CEO | 500,000 | 1.03% |
| David J. Drachman | COO | 300,000 | 0.62% |
| Rachel D. Kauffman | CFO | 200,000 | 0.41% |
| Other Executives | Various | 500,000 | 1.03% |
Stock Performance
AtriCure's stock performance has been solid, with its share price reaching approximately $22.00 as of early 2024. The company has shown a consistent upward trend in stock value, rising over 25% compared to the previous year.
Employee Ownership
The company promotes employee ownership through stock options and equity compensation plans. As of September 30, 2024, approximately 1,222,000 shares were reserved for equity compensation plans, representing about 2.5% of total shares outstanding.
Capital Structure
As of September 30, 2024, AtriCure's total equity stood at $465,021,000, with the following breakdown:
| Category | Amount (in thousands) |
|---|---|
| Common Stock | $49 |
| Additional Paid-in Capital | $851,306 |
| Accumulated Deficit | $(386,187) |
| Accumulated Other Comprehensive Loss | $(147) |
| Total Stockholders' Equity | $465,021 |
Financial Overview
For the nine months ended September 30, 2024, AtriCure reported total revenue of $341,030,000, a 16.5% increase from the previous year. The company's net loss for the period was $29,130,000, with a gross profit margin of approximately 74.7%.
Market Trends
AtriCure operates in the medical device industry, focusing on innovative solutions for atrial fibrillation and pain management. The market for these devices is projected to grow significantly, driven by increasing awareness and adoption of minimally invasive procedures.
AtriCure, Inc. (ATRC) Mission Statement
Current Mission Statement
AtriCure, Inc. focuses on providing innovative solutions for the treatment of atrial fibrillation and related conditions. The company's mission emphasizes improving patient outcomes through advanced medical devices and comprehensive education for healthcare professionals.
Financial Overview
As of September 30, 2024, AtriCure reported a total revenue of $341,030,000, representing a 16.5% increase compared to $292,702,000 for the same period in 2023.
| Period | Total Revenue ($) | Net Loss ($) | Basic and Diluted Net Loss per Share ($) | Gross Profit ($) | Operating Expenses ($) |
|---|---|---|---|---|---|
| Q3 2024 | 341,030 | (29,130) | (0.62) | 254,905 | 280,395 |
| Q3 2023 | 292,702 | (20,649) | (0.45) | 220,555 | 238,570 |
Revenue Breakdown
Revenue by product type for the nine months ended September 30, 2024, is detailed below:
| Product Type | Q3 2024 Revenue ($) | Q3 2023 Revenue ($) | Change ($) | Change (%) |
|---|---|---|---|---|
| Open Ablation | 90,661 | 77,988 | 12,673 | 16.2 |
| Minimally Invasive Ablation | 35,263 | 31,900 | 3,363 | 10.5 |
| Pain Management | 44,059 | 36,249 | 7,810 | 21.5 |
| Appendage Management | 111,257 | 98,647 | 12,610 | 12.8 |
Operating Expenses
For the nine months ended September 30, 2024, operating expenses totaled $280,395,000, with the following breakdown:
| Expense Type | Amount ($) | Percentage of Revenue (%) |
|---|---|---|
| Research and Development | 61,221 | 18.0 |
| Selling, General and Administrative | 219,174 | 64.3 |
Stock Performance
The weighted average shares outstanding for the three months ended September 30, 2024, were 48,748,000 shares.
Liquidity and Capital Resources
As of September 30, 2024, AtriCure had cash, cash equivalents, and investments totaling $130,335,000, with outstanding debt of $61,865,000. The company reported a net working capital of $194,855,000 and an accumulated deficit of $386,187,000.
Strategic Initiatives
- Continued investment in research and development to expand product offerings.
- Enhancing clinical trials to support product efficacy and safety.
- Expanding global market presence through strategic partnerships and regulatory approvals.
How AtriCure, Inc. (ATRC) Works
Business Overview
AtriCure, Inc. is a leading innovator in medical devices aimed at treating atrial fibrillation (Afib), managing left atrial appendage (LAA), and providing solutions for post-operative pain management. The company develops, manufactures, and sells devices used in both open-heart and minimally invasive surgical procedures.
Revenue Performance
For the nine months ended September 30, 2024, AtriCure reported total revenue of $341,030,000, reflecting an increase of $48,328,000 or 16.5% compared to the same period in 2023. Total revenue for the third quarter of 2024 was $115,910,000, up from $98,290,000 in 2023, marking a 17.9% increase.
| Revenue Breakdown (in thousands) | 2024 Q3 | 2023 Q3 | Change ($) | Change (%) |
|---|---|---|---|---|
| Open Ablation | $30,601 | $25,844 | $4,757 | 18.4% |
| Minimally Invasive Ablation | $11,117 | $10,893 | $224 | 2.1% |
| Pain Management | $16,314 | $12,591 | $3,723 | 29.6% |
| Appendage Management | $37,420 | $32,364 | $5,056 | 15.6% |
| Total Revenue | $115,910 | $98,290 | $17,620 | 17.9% |
Cost and Profitability
The cost of revenue for the nine months ended September 30, 2024, was $86,125,000, an increase from $72,147,000 in 2023. The gross profit for the same period was $254,905,000, with a gross margin of 74.7%.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $280,395,000, compared to $238,570,000 in 2023. This includes:
- Research and Development Expenses: $61,221,000
- Selling, General and Administrative Expenses: $219,174,000
Net Loss
Net loss for the nine months ended September 30, 2024, was $(29,130,000), compared to a net loss of $(20,649,000) for the same period in 2023. The basic and diluted net loss per share was $(0.62) in 2024, compared to $(0.45) in 2023.
Cash Flow and Financial Position
As of September 30, 2024, AtriCure had cash, cash equivalents, and investments totaling $130,335,000. The company reported outstanding debt of $61,865,000 and unused borrowing capacity of $61,885,000.
Product Innovation and Market Expansion
AtriCure continues to invest in research and development, launching several new products in 2024, including:
- ENCOMPASS® clamp for open ablation
- EPi-Ease™ Hybrid access device
- cryoSPHERE®+ cryoablation probe
International Sales
International revenue for the nine months ended September 30, 2024, reached $59,790,000, representing an increase of $11,872,000 or 24.8% from 2023. The table below outlines the international revenue breakdown:
| International Revenue Breakdown (in thousands) | 2024 Q3 | 2023 Q3 | Change ($) | Change (%) |
|---|---|---|---|---|
| Open Ablation | $8,607 | $8,007 | $600 | 7.5% |
| Minimally Invasive Ablation | $1,681 | $1,578 | $103 | 6.5% |
| Pain Management | $1,590 | $547 | $1,043 | 190.3% |
| Appendage Management | $8,580 | $6,466 | $2,114 | 32.7% |
| Total International Revenue | $20,458 | $16,598 | $3,860 | 23.3% |
Clinical Trials and Training Initiatives
AtriCure is actively conducting clinical trials, such as the LeAAPS trial, which evaluates the effectiveness of LAA exclusion in preventing stroke. As of September 30, 2024, over 3,400 patients were enrolled in this trial.
The company also provides training programs for healthcare professionals to enhance the understanding and use of its products.
How AtriCure, Inc. (ATRC) Makes Money
Revenue Streams
AtriCure, Inc. generates revenue primarily through the sale of medical devices and technologies used for the treatment of atrial fibrillation (Afib), left atrial appendage (LAA) management, and pain management. The company's product offerings include various ablation devices, LAA exclusion systems, and cryoablation probes. As of the latest financial reports for 2024, AtriCure's total revenue for the nine months ended September 30, 2024, was $341,030,000, representing a 16.5% increase compared to $292,702,000 for the same period in 2023.
| Revenue Category | Q3 2024 ($000) | Q3 2023 ($000) | Change ($000) | Change (%) |
|---|---|---|---|---|
| Open Ablation | 90,661 | 77,988 | 12,673 | 16.2 |
| Minimally Invasive Ablation | 35,263 | 31,900 | 3,363 | 10.5 |
| Pain Management | 44,059 | 36,249 | 7,810 | 21.5 |
| Appendage Management | 111,257 | 98,647 | 12,610 | 12.8 |
| Total United States | 281,240 | 244,784 | 36,456 | 14.9 |
| Total International | 59,790 | 47,918 | 11,872 | 24.8 |
| Total Revenue | 341,030 | 292,702 | 48,328 | 16.5 |
Cost of Revenue and Gross Margin
The cost of revenue for the nine months ended September 30, 2024, was reported at $86,125,000, which accounted for 25.3% of total revenue. This is an increase from $72,147,000 (24.6% of total revenue) in the prior year. The gross profit for the same period was $254,905,000, resulting in a gross margin of 74.7%, slightly down from 75.4% in 2023.
Operating Expenses
Operating expenses for AtriCure include research and development (R&D) costs as well as selling, general, and administrative (SG&A) expenses. For the nine months ended September 30, 2024, R&D expenses totaled $61,221,000 (18.0% of revenue), compared to $53,119,000 (18.1% of revenue) in the previous year. SG&A expenses were $219,174,000 (64.3% of revenue), up from $185,451,000 (63.4% of revenue).
| Operating Expense Category | 2024 ($000) | 2023 ($000) |
|---|---|---|
| Research and Development | 61,221 | 53,119 |
| Selling, General and Administrative | 219,174 | 185,451 |
| Total Operating Expenses | 280,395 | 238,570 |
Net Loss
AtriCure reported a net loss of $29,130,000 for the nine months ended September 30, 2024, compared to a net loss of $20,649,000 for the same period in 2023. The basic and diluted net loss per share was $(0.62) for 2024, compared to $(0.45) in 2023.
Cash Flow and Liquidity
As of September 30, 2024, AtriCure had cash, cash equivalents, and investments totaling $130,335,000. The company had outstanding debt of $61,865,000 and an unused borrowing capacity of $61,885,000. Net working capital was reported at $194,855,000, with an accumulated deficit of $386,187,000.
| Liquidity and Debt Metrics | Amount ($000) |
|---|---|
| Cash and Cash Equivalents | 130,335 |
| Outstanding Debt | 61,865 |
| Unused Borrowing Capacity | 61,885 |
| Net Working Capital | 194,855 |
| Accumulated Deficit | 386,187 |
Strategic Initiatives
AtriCure has focused on product innovation and expanding its market presence. Key developments in 2024 included the launch of new devices, regulatory approvals for existing products, and enhanced physician training programs. These initiatives are expected to drive future revenue growth and market penetration.
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Article updated on 8 Nov 2024
Resources:
- AtriCure, Inc. (ATRC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AtriCure, Inc. (ATRC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AtriCure, Inc. (ATRC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.