AtriCure (ATRC) 15 Feb 242023 Q4 Earnings call transcript

Good afternoon, and welcome to AtriCure's Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded for replay purposes.I would now like to turn the call over to Marissa Bych from the Gilmartin Group for introductory comments.

Great. Thank you and good afternoon. By now, you should have received a copy of the earnings press release.

company's received e-mailed please today, to remind that not to (XXX) let have statements. you one forward-looking have you.Before the you a call copy, XXX-XXXX me If include remarks we begin

refer franchises Forward-looking statements and of time and are are which and statements to, to constant outcomes. market AtriCure's financial specifically risks directly reported limited share. materially financial to is expectations numerous CEO. time AtriCure's opportunity non-GAAP the no our basis, publicly currency to measures A non-GAAP most including obligation clearances, SEC to described adjusted not AtriCure approvals, to turn uncertainties, financial include, on reconciliation filings. revenue Carrel, regarding control, we guidance, AtriCure's These is call the update our loss a projected. undertakes GAAP I differ many trial like measures in that, EBITDA initiatives, statements.Additionally, beyond potential the growth any and President uncertainties and on subject with adjusted these reimbursement are available Mike per to risks and from expectations in included comparable of may measures, from would AtriCure's with which but over clinical product those release, press forward-looking website.And future for and results

us XXXX of proud an momentum was growth today. joining our robust exceptional AtriCure, for fourth you a report business. to am throughout thank strong and showing at and I afternoon, finish Good XX%, entire quarter year with

adoption our left atrial treatment above year for products we XXXX, of broad our Our globally, portfolio atrial postoperative XX% of consecutive of represents of increasing growth.And revenue revenue over pain. and the full year saw XX% appendage fibrillation, of $XXX million the third

the AtriCure operational and highlights and in We towards now. to profitability leverage our than front XXXX, -- million quarter in standards standards drove of where line are a resulting performance of position positive patients' improve top addition, patient years X of each investment is our underserved we focused throughout in millionth expand strong future.AtriCure in would further our of unique to achievement of increasing a to opportunity and still now new market on millions comprehensive a offer in awareness. markets to opportunity across as leader opportunities new growth adoption in with as education to over to drive cultivating our opportunities identifying XXXX, treated requires top impact performance new X today underpenetrated. every sustained in progress billion $X our patient science translates frame significant sustained the sharing unlock allowed with global AtriCure business.Before clinical fourth market and these addition, last We significant of adjusted we technology.In EBITDA care extended Investing know with decades, This patients our that like worldwide. of Our before, us identify the patients remain potential solutions to line and well $XX create driving and Therefore, the in areas innovation, than market are markets for of opportunity for come. these of I the creating care many as has more to positioned lives. significantly making

million, year such, revenue to XXXX to As $XXX XX% our XX% growth are reiterating full reflecting over $XXX of we million XXXX. expectations for

Starting EnCompass full $XX surpassed the of quarter our thereafter and concomitant In to we Clamp with fourth reaffirming used open EBITDA to the improvements heart are quarter, highlights and our progress where the ablation for we our towards achieved ablation million quarter $XX solutions the yet as of for surgery. EnCompass annually the shifting patients are franchise, treatment for the with open adjusted with year, Afib best ablation which to treated since the positive the cash million broad expectations of We XXXX. also early achieve flow.Now half has to sales, uptake of for XX,XXX accounted Society been franchise. product Clamp Conference, surgeons recent device for nearly elevation in this growth from the Thoracic of the ablation XX% cardiac many a commercial heard continued open XXXX, launch U.S. in extraordinary procedures.Globally, XXXX. about I Surgeons having The quarter. on our expanding At of revenue our annual over throughout growth this surgery rates our in impact patients, is showing reach this achieved open historical franchise

left of are confident XXXX, other begin and States products the and of in appendage adoption year standard many business. to In markets in appendage the forward our closure Clamp around As in turning future.Next, cardiac and surgery. in increasing atrial later EnCompass becomes atrial AtriClip management European heart open management. a both for our left markets procedures world, the we the invasive to remain the care as foundation we in look the minimally AtriClip the United devices appendage launch leading of are in growth the

for to seen exclusion evolution XA to out guidelines appendage acceleration closed elevate and expect our XXXX, at AHA in their Class we strong, the excited STS, have LAA continued growth we quarterly XX% business within fourth XX% are for growth in year our management the the guidelines recently. quarter. an this surgical We all and grew propel to business.Overall, with And ACC in

the stands increase we PRO commitment on than X.X which and next-generation ahead. differentiating devices, a our XXXX and options has notification the We sales ahead in to driven V, technology milestone and other This with in expanding late XXXX to milestone PROX V thereafter.Additionally, device, our which is a our opportunity our are AtriClip AtriClip off reduction actively embolism in of in growth market. far of LeAAPS extend invasive We of Our open both XXXX in FDA of XXXX a seeks already application ended have the our patient AtriClip that sold systemic in devices clinical began trial the AtriClip that Mini, with atrial clinically patients the to quickly to minimally product with procedures and date. LeAAPS we AtriCure's the we XXX(k) late investigating decrease U.S. by potential AtriClip research, patients devices profile use the still celebrated size device, in to which the AFib ease for markets and are trial. today, long-standing more innovation through AtriClip submitted smallest cardiac and of anticipate the decades significantly of expectations, primarily throughout XXXX launch impact, and and XXXX, as in LeAAPS addressable internal over of to arterial ischemic -- To appendage the we demonstrate on is surgery following The and in globally.Enrollment million indicative beyond.In study. January diagnosis late or builds from proven FLEX meaningful preoperative our all management strong and continuing enrolled our we FLEX of end, attachment clearance year. reflecting accelerated immense was X,XXX and our clearance

in and are in enrollment We the XXXX centers first clinical in expect trial coming Europe expanding weeks. sites from

excitement than enrollment cryoSPHERE validates of add pain underway the years The management pain. to $XX pace base with the launch business. While cryoSPHERE from decision rapidly, for on relief this and to exhibited reflecting drivers complete, growth where of accounts our to efforts temporary probe growth of accounts we growth the XXX our to our in XX% in exceeding will for remarkable now trial full capitalize year saw year-over-year. several globally to market Since XXXX, worldwide, has potential, clinicians both have franchise, take expanded underscores more on trial XXXX.That as the just we embark provides several full patients.Moving purchasing million XXXX the we postoperative serve has the revenue and parallel said, and this device

First, reduction the efficiency enable this XX% fourth time. a faster Plus procedures improving cleared cryoSPHERE probe, ablation was The first in the Recently, cryoSPHERE with we device quarter. device our ablations, procedures. the of next-generation in will by the with technology, FDA completed Plus

We expect in quarter. full the launch to second move to

We Cryo value to illustrate are centers partnering also to better conducting expand of therapy. multiple the studies Block and with economic Nerve proposition clinical data

to AF therapy the you We forward look sternotomy for therapy, procedures, and continue focusing this out resources portfolio progress.Finally, updating with while fourth important on commercial of to to the carefully treatment practices.Lastly, worldwide with persistent growth in awareness Afib. are pain XX% Hybrid patients year-over-year is standalone millions note on high franchise a ended of rounding and Cryo adoption in XXXX long-standing for traditional promote our potential in will thoracic quarter. management on to market driving we Block alternative new opportunities invest we and We evaluating focus on applications Nerve

for XXXX and year comprehensively As therapy address ensure leading I've thoughtful expansion. growth accounts success past in for for Hybrid over to said partnering were strong and calls building about the their workflow on customers We year, foundation challenges with throughout accelerating to a lasting AF understand our future. several program the to needs was our a

is expect exciting quarter fourth be confirmed we throughout XXXX results XXXX market. in PFA focus for work more a will Our an should of The that PFA driven to into our the having year technology efforts standalone by an treatment endocardial Afib peers catheter in everyone market. introduced efficient XXXX.We as for provide ablation our U.S. continue on tailwind impact, Afib the and

is registries support and not study hybrid in persistent In therapy. remains advanced CEASE remains Afib Moreover, of a procedures. is ablation AF ACC solution effective showing PFA, growing for long studies as Hybrid more energy approach guidelines it therapy rapidly body AHA our even clinical demonstrate results, endocardial solution CONVERGE proven of trial recent XXXX, the for patients.In to a Our catheter updates independent remains provided with and data from therapy our Further, published approach. Afib. addition used for from complementary DEEP patients there clinical AF just alone is other importance complementary evidence only AF to clinical by to AF trial long-standing only treatment hybrid AF the Hybrid sources and to proven the -- for an

we continue cementing base such, build with customers. our As the to goal workflows of efforts development will of scalable a for program broader efficient,

was the fibrillation.In line truly bottom Hybrid for our AtriCure, and a therapy of milestones XXXX adoption year accelerating suffering by another impact persistent exceptional strong of and long-standing patient patients from atrial the summary, growth. top conviction have in millions defined accelerating AF major We and for

we carry come. Chief into excited Financial are advance this future growth forward Officer. many will prospects And We our as to AtriCure turn call and for over adoption with to propel Angie? to XXXX therapies that, our I will of momentum the in Wirick, that invest Angie years

on uptick franchise, a management fourth ablation and compared XX.X% fourth on as increased Thank currency XX% of with increase open $XX.X quarter reflecting growth you, XXXX. from a a Mike.Our $XX.X revenue of in adoption therapy, for basis constant from basis up the of XX.X% when constant up quarter basis revenue of representing activity million highlighted Hybrid XX.X% our compared fourth fourth of U.S. across revenue $XXX.X on key continued a XX.X% the strength XXXX each basis and the robust quarter XX.X% an and on quarter quarter, management, a to by XXXX. reported to along was appendage XXXX, the million, million, AF worldwide pain products.International totaled reported currency

$X.X management. fourth favorable the see and $X by Sequentially, our million, increase or margin of quarter basis XXXX pain increased XX.X%, quarter the quarter geographic for adjusted fourth fourth to XXXX the EBITDA for markets positive international of partially bottom management major with we of or million, XX%, or product mix.Fourth differentiated fourth quarter quarter worldwide growth driven quarter and points in appendage XXXX. expenses to fourth less increased The over was drove favorable the XX%, production the efficiencies, million EBITDA adjusted of compared positive and by $X million line, QX grew significant continue XXXX. XXXX SG&A demand $X.X research strong solutions for development from X.X% XXXX.Turning was offset over expenses XX sales primarily up XXXX.Gross $XX.X for and in million We to

commercial quarter continuing development drive increase rapid our XXXX development and we costs are of our in a experienced to in the significant the enrollment and we product gross While improvement research realizing fourth clinical underway. administrative multiple and LeAAPS margin to of due trial in expansion infrastructure, and to and operating initiatives leverage

FLEX sales U.S. to full benefit $XX.X of trial $XXX.X fourth per constant was year education million, investments from trends device. sales, with XXXX to team maintaining million and year U.S. share $XX.X XXXX a a growth open XXXX growth as constant fourth margin in our or U.S. share of a million loss continued the expenses U.S. quarter leverage sales of Our and project compared XX.X% digit long-term for in million. EPi-Sense the realized the in to for ablation continued XX.X% appendage as expenses $X.XX grew open million in throughout adjusted innovation. was year million, million, by and ablation development with increasing XXXX.Now adjusted while XXXX.In quarter basis. V review of reflects from the basis international drove adoption. expanded a over X.X%, focused in growth.XXXX EnCompass million. a or legal XXXX or extend an driving for existing of sales in expenses Similar management, to increased U.S. to accounts, product was appendage loss driven increase the new to account to to $X.X groundwork portion training million, XX.X% for clinical EBITDA our in efficiencies R&D AtriClip the $XX.X revenue much we programs, of evidence million XX.X% over XX.X% increased XX.X%, an addition sales sales, along positive a increase to or per ended product our fourth spend and our device on operating the by and XX.X% and The from reflecting pipeline and infrastructure pain points MIS by quarter margin adjusted was share $X.XX are Research from revenue increase less growth $XXX.X And XX% our loss activity $XXX.X compared bolstered like results. in per to in SG&A revenue, products.Gross XX.X% $XXX.X franchise million, our loss currency down commercial to management successfully partially $XXX.X improvement on $XX.X with production was operating share million. international Full expenses. increase on XXXX, favorable million pain XXXX, currency SG&A $XXX.X XX.X% and approximately And increased U.S. legacy a clinical XXXX, a single activity per and on one-time reached XXXX. basis We gross our million basis, management in year, $XX.X costs XX.X%, and negative reported growth Clamp settlements. in of largely an year efficiencies XXXX. expansion.Full XXXX, $XX.X in management in increased XX development geographic at mix.Moving by revenue offset results, expansion where XX.X%, propelled Worldwide both on by the future XXXX remain $XX.X we operating for laying

propel XXXX for $X.XX are revenue loss in working XXXX. with include growth with per XXXX the between dynamics is year will in share XX% guidance Also XX% early in Adjusted flexibility per respectively. product our and beyond. loss clinical million and of XX% $XXX to to growth Embedded that and cash of ended of to in competition. and over We investments, XXXX. to full that loss $XXX million share a supporting the guidance $X.XX for year, a January, XXXX increasing position outlook future and achieve Our us the per market in $X.XX was included assumption $XXX.X innovation we our share investments.Finally, our fund to opportunities to our Consistent in capital turning compared $X.XX, and and million expect guidance robust reflecting data was results.

our will products, United AtriClip and XXXX States in open system we in drivers procedures growth of XX% the our using clinical of the believe with of with pace wider to exceptional look Clamp we delivery opportunities use which addition annual broader growth.We at these our each adoption franchise thoracic is progress to continue our expect Complementing while pain see ablation MIS the rates align continue progress our therapy. the EPi-Sense with Hybrid EnCompass our of continuing we therapy deepening steady drive As growth XX% and with to beyond. We to United XXXX. expectations ablation performance business revenue.Additionally, of the in growth and AF data this to to our development growth market over base we of lead acceptance on to lift to large anticipate franchise, the growth see closely of in in management our through even States remain international in

geographic focus be we we continued material the scale typical increasing In be before, revenue quarter XXXX offset From by our as efficiencies costs margin terms of and grow.And expect with we as well year, headwinds within said to perspective, mix XXXX. quarter our and operations seasonality have as we results of line XXXX product as primary flat modest production leveraging roughly with next for from growth XX% revenue percentage cost We XX% allocation AtriCure. this to anticipate for to cadence is to of XXXX. be first we R&D to Therefore, to expect potential maintain for capital in of with set likely in as from drivers to our the a revenue incubate at to gross year. initiatives our margin fourth expect later inform XXXX a savings improvement with

Our to and spending improvement in providing to across sustained revenue, to leverage profitability. moderate SG&A will proportion continue

per million, $XX translating to With from mind, of XXXX to million EBITDA year an adjusted expect we priorities full $X.XX in loss adjusted approximately to $XX share these $X.XX. range to

XXXX comments, our and dedication enter position. and collaboration our patient our with will impact teammates. a call moderate the a is drive share and burn at as revenue the a XXXX stellar would in bottom drive financial powerful line reminder, operational progress. expanding against an typically higher quarter back We closing to turn like positive needs expense our overall highest. stem I first my modest burn serve results.As to AtriCure of payouts, the We and to year was and EBITDA, AtriCure. results from From strong cash for cash capital unrelenting Variable compensation also we continue profile reiterate And Mike? XXXX realizing patients to vesting other Mike anticipate balance cash the I growth to adjusted

Thank close you, our an Angie. are I guiding we incredible would like team on our congratulating and at to outcomes most AtriCure. of by XXXX. entire proud principle, that Patient are

this Your treated teamwork patients and led our over over to in X company's million history. year XXX,XXX

making patients stroke of after are higher pain surgery. We forms Afib, advanced with a and for difference risk of

we And patient outcomes for operator the As evolve our I continue drive to as the efforts in markets. on with in we future, to and questions. will over it turn will leadership these that, grow capitalize our

questions and additional Thank requeue one [Operator one then a to you. any Instructions] follow-up questions for time Please limit and roster. at

the Morgan. J.P. question with comes first Our line Marcus of Robbie from

I to expectations. on start fourth good the a good wanted on Congrats invasive. quarter. and beat clip Had quarters, business minimally

relative it little as of Just, and about pain you're more about those two specifically, into broadly, how progress a you XXXX. to we talked thinking kind maybe open but

for the thanks Robbie, comments. Yes.

coupled U.S., our I the rates the of the around the corporate expectation in average. think guidance that heard tightly franchise scripted we are you the as pretty growth year, the when for each look comments, in is at

kind as franchise to some each unlike more given closely what some around corporate aligned falling of growth kind on of franchises expect would year based be them expectations the within rate, progress opportunities, having of of were our and kind we the corporate think in the the rate. franchises saying growth of and outperforming below I development XXXX

ask, an have is launching, physicians. feedback sales I guess investor field the your what seeing and to given angst AtriClip competitor around the from competitor, so any reacting XXXX I And force you're just far have you all it far. in Great. the to How in Medtronic so

the a reminder, I'll Robbie. welcome say think different the Less that -- market. as than we market. their there, X% are I today. of worldwide competition. actually there There penetrated worldwide. good so cardiac million question thing managed surgery handle AtriClip We just a couple patients validates about, from appendage than X% that really is angles. still we is second what over undergo the it or and appreciate And less have in or first a mean I overall actually it's that talked X by an I'd we're

as we in big about product. generation this really is our on opportunities invest FLEX Xth product the later coming innovation. continue We're year, have us of which We the in talking Mini front to out AtriClip of

show In for surgery. to addition we're reduction with undergoing cardiac patients clinical the stroke trial to that, are a investing evidence in that LeAAPS

feel any like superior competitor So in others, the they've trialing with we out franchises. seeing very And out the on V market in to the Mini don't confident positioned product competition be are But manage We FLEX in we're making that that that particular our really it's and we and great into going the see of innovation feel coming the we're and with the clip out comes of market, it and well We think that those we kind made the first today market. FLEX necessary think have investment. they're with to product. actually we're our product. people a also do investments fronts.We Medtronic the we their using

putting One mentioned I in things innovation and of and dedicated, is are so products in we the for R&D upfront, that. on of that investments really new to areas the AtriCure care both as new continuing standards side, establishing

efforts the putting our in. products product understanding fact, competition we're Combining clinical patient our be welcome best on well. we in on our products next of validation we've welcome work that we're and think out field and help with and world all of markets that that team X how front. that new X coming at over also And evidence our that teams specifically got the out to And exceptional and lines the why incredibly around also the care sales years. the to in really In then to across products demonstrate well understanding the the positioned

question line next the comes Antalffy from UBS. Our with of Danielle

This Everyone, is on hear can me? Danielle. Simon you for

can We you, Simon. hear

We can Simon. hear you,

This is [ Egan ]. Simon

cryo it's but are scale. segment this just growth think over the mid-teens really Do forward about given think sustainable? segments naturally is puts Your years, what demonstrated and the takes past in And the here? to moderated great you several growth really moving

appreciate Yes, question. the

it You stated that thoracic. gotten those and the are well. scale, We sustainable, XX% very to think $XX that million not obviously It's do grew year. absolutely in size this business a mid-teen plus growth rates only

look just the thoracic if you penetrated market, XX% than we're So today. at less

we to over way clinical more my and So the mentioned the evidence coming to push clinical demonstrate investing we're And go. long have I a that economic numbers value both to those even as years. hopefully in up in around comments,

a that advancement much which the on We've pushback that like also this of just got this are time that's an because out is got that will our up year. ablation, hopefully that than top little coming out that top do more the been later in, a of to talked You they aggressively need reduce it has in actually sternotomy Plus product on market. the open us about market off product their I with the that to all year new investing came we've cryoSPHERE that lines, hopefully going

look hopefully and get enable into So alone, out that penetrated. the actually little We're for time bit a less you as coming aggressively in us sternotomy future products with market more XX% economies that will years. than new reduce

which particular, a benefit from And other we're comments also believe position in to is we in yet. the getting it of do that, there use. there.And next my process so cryoablation at room to really of sternotomy, like and lot And well, other we of thing it. evaluating for studying in about, over final you the we areas, not the But anything a growth we'll in relative heard feel the thoracic and when that ready couple add growth of as into announce announcing actually could years, just talked outside I'll that the be areas We're are we're looking already. have good extremities it that or I

feel -- that's a with way that's in we mid-teens growth, being the So for time. yes, a range good answering, comfortable a kind that of of long long

you. That's one really helpful. quick for One

helpful. mentioned potentially this incredibly year. product still that a You on watching any the would Is on ideas that in And segment IST target? be

a you in market. so Belgium go of the The invented a which incredibly to tends work XXs while with a and very called products X-month HEAL-IST of it that reduce for well. reminder at have our for have the million mapping And the tachycardia. and population, after X-year particular could that great these what patients in but we are this it mid-XXXs. of now you today's actually kind X patient detail are we right disease represents And do in to well there. our rates some the incredibly a of kind affect -- well, inappropriate access takes to need frame United making by using showed right XXX% now, both there. little because technology time enrollment to existing procedure. we progress the States product, while And on today most or a actually into are procedure so. product large the they We're represent that. women on people patients electrophysiologist typically What heart It's combination a new trial call. leverage get to It's we're out in a done improvement their basically they're developing and to above There under because patients almost people really were XXs over in investigation works didn't EP for and Consistently, XX. an that resting, Yes, with yes, that this surgeon elevated work running sinus a

for do we IST new late product anticipate for built on early year next And year, of so this And kind market. surgery. and product specifically that the this very the is specific custom to have

from Canaccord. Our next Plovanic with the line of question Bill comes

strong tonight. Congrats Maybe for on just EnCompass. on John on a It's too. QX, Bill starting

clamp to new you exist sensitivity? just selling the from what on clamp? now. eventually Is shift talk this is users timing get revenue U.S. the do just of XX% Can about And remaining the plan still device? stop to said about or price the You the of to versions hurdles you older contract

with Yes, last. actually of our any clamps. anticipate start stopping They're don't the exceptional. I'll We selling old

who really the really feedback studied get They're our that X. Cox-Maze geared good that. surgeons the ones to we They continue doing towards in well. They're full PMA. on incredibly work We specific are

to We're people it's with U.S. product, in the that. educate sites to quite sites. expanding just time XX% people comfortable about to the to take of going XX% in the into get We're frankly, For EnCompass, new how use

we've got to We're room trial, for well, planning a original lot which got for clinical what to us for our also approval as much specifically, we a PMA ABLATE do the did was very that. like So clamps. growth trial of the relative

We that will with time.This going that those rate. evidence, could isn't also have over grow growth that just think adoption overnight, additional an that our to accelerated anticipate doing it's that. it's clinical of on impact but We one ones

of that we changes this reimbursement and of many, have If that I could you many that years, adoption have happened really XX% digits, the think, asked, business years above for growing if low-double over of X%, couple have happened. were grow last ablations combined kind anybody with have the open would XX%, kind more our accelerated the

to It's about in kind standpoint. that we'll good So And from talk of out we than continue progress. ever the about I expected. I think field the better feel it much really

to the the some think that pain to kind needle management, that And is just Should of data you of circle or about mentioned? considering gathering economic How label? Great. we an going too, -- data the And beyond? still then to other you timing to back in the move XXXX of reduction are had should comments. outcome opioid on support

Yes, the supporting actually the I do more many what we out so what's but to that going looking over overall opioid We're That's I data. say don't to definitive aspect are and a of The that I of is year. and think trials evidence last actually across reduction is were number going of that one to part purpose not Europe. outcome. we kind trial. practice. think XX of country in it, That had that going papers totality all going are be every several change We of that be multicenter more XXXX coming for are to Block is take year. going Nerve to trials or into data continue of looking relative would as this the a they're supporting that It's the know at to event Cryo and as at those year. that it's cumulative to Many years that

once is something that people track of opioids I papers this do so and about I use important very believe use fact be more that's do to know. product the that have to more lower And going for tend that hospital. the And they people and think leave written that to a are to

Our next question with comes O'Brien line from of the Matthew Sandler. Piper

guide. in So into XXXX I competitive don't Mike Angie know think Angie, I or here but mentioned is in you're your pressure for if that factoring some this

on years X last the XX% the grown top line. You've

$XX it's the numbers, about only amount that around little I You're the the bit guiding pressure factoring to around it? law of if a of incorporating the maybe it would on you're Is share Or anticipating? north way you're to if do kind like that XXX in. clip then basis in Is math XX%, points. characterize the right so that large midpoint, whatever I I That's And potential seem it, XX% of loss. at business? that may don't of it characterize in know the of be. Is it competition you're way think, right million,

Matt. Yes,

years year. I we beat are that that we're to good But The range there's our in believe that and about still really make gives executing competition business as putting the think start well consider with we want feel in to out drivers growth that to positions think that as very, significant throughout in potential sure you us know pressure. our kind -- year, we we are I the us well guide that competitive a and that we potential very against of as working and markets growth that does the even market. here based underpenetrated we both the point, on go raise

that relative to of of XX way or kind points Medtronic long-winded saying a of loss So -- not share. it's

and our in new our what portfolio and seeing think informed year XXXX the we're of is through I strength that importantly, start exit the More a XXXX we just guide momentum sure continues to years against. our strongly can XXXX. and start But to that want philosophy make execute we guide been the as we numbers that for we That's to be year. as new

know this most it the lot to they dynamic you don't there's cases? sure that you And people it say, and trialing more But they do specifically, going Penditure are some over flip. are in I you Or for on. And will there? I a like of Angie, still one seeing using maybe what, where trial specifically flipping and lot know what more I'm seen seeing a Okay. have Have part. a there's people I follow-up. you just

seeing well love but our definitely feel we're franchise evidence a strength good there, have terms amount It behind data and we clinical we the the people set people AtriClip. and mean about across works. I out bar high trial how of tremendous that Matt, it feel of very the really it. really country, of it People understand a in like

On the profile safety exceptional showing particular, with and exceptional device. closure closure in that

are trying at And we're even though like the it position throughout feel different a so places in great various we country. people

Got it.

than on on have X-year accelerated bit it quarter-over-quarter little a thought then Okay. it open was I might a And business, like but on basis. QX basis, it looks in softer a the stack

still expectations And thoughts I curious bit it just any then you're there adoption, little mid-teens? help as another don't just guidelines a in So know terms can growth if well. seeing there? of a into year for Is filed in the that there's head bit XXXX? little you. that on that we somebody you're as this impact know what essentially that that's competition? compete to I business something or could something building Is with

much all that mentioned businesses guidance, think that being area. of intended, to Angie we XX%. pun As around I all our around converging particular on they're XX% the mean, pretty

to there's great growth businesses, so of upside one in our seeing obviously And every potential like feel we your point, Matt. there. We're

to about we look really to that beginning if comfortable good ensure this and And the really able got that make given. cardiac continue can to can of the year. we've are, it the come kind guidance as we at we I to kind grow take base rate specific think really to way of that feel of we're that across Pretty kind XX% our to in mean conservative we at feel Angie at being comment think mentioned, And I always there's looking try on throughout it. XX%. competition I we And competition. that that But obviously that we address anticipate meet franchises a at be the the that much we've that standpoint. point. we will with it. all on we of that But does surgery in year that from the it sure numbers at nothing of to beat that in,

next with line the BITG. Our from of question Marie comes Thibault

business finish XX% MIS Maybe You've just does got on sound Marie. growing for Sam sequentially, year-over-year. really I Congrats growing, things the Eiber for starting on can CONVERGE U.S. the on and like looking are start It to the color you nice business give the XX% a maybe year. confidence any in your harder any And know bit the but little on that you to a specifics? there. on bit click give year? little activation remarks, prepared site And new more this to push you does can I now addressed at

Sam. Yes,

quarter. activity really feel fourth the we good in think I about the

of trying would is really the on I accelerate think programs in a of a hone where able been the the this field, many see team reflective not expect. year-plus have that we program, to a good others and business, our CONVERGE really interest supported growth had in to in they starting by why kind in of

training of I account underpenetrated our this existing couple think in accounts more think or the are in terms kinds their think -- as in say point we're base CONVERGE the very the activities replicated the we're XXXX, accounts that they field operate new broadly a question -- XXXX. longer off still So starting activations are that are team and of we really And on. a looking I'd us I customers. and quickly. at broader existing was when of feel the efforts of accounts But have We difference really we're doing procedures in XXXX. focusing we're throughout still looking could I efficient in of you we're from focus of CONVERGE There's that interest new of what programs initiate be help growth part and making more a seeing have off to your think accounts. have the building think activations. I'd of to these There's work and we lot say good pay time impact think that will we're term account I'd is second new that accounts about the for programs long that to universe through say did and that to a accounts for term, I paying can them see in on still accounts help new be the throughout today continue rates. scale that is so XXXX.Relative the in

wondering just additional just to an be Angie. Maybe looking changes. I'm underlying competitive guideline the maybe beyond the flipping also if maybe the mentioned business. tailwind of dynamics, AtriClip helpful, but can and adoption you some and clip some Really And maybe market to for that

absolutely. you is the cardiac it's just community basically think XA undergoing Yes, and it's time appendage guidelines the -- cardiology this pretty are when And is that today. they're appendage saying cardiac for monumental is And doing referring it, entire has Class basically to every AHA the but saying fibrillation everybody should needs atrial ACC saying We surgery. treat space. to a the single basically recommendation the that not treat somebody surgeons

the and really market AtriClip by is appendage And the we sign so manage globe. around absolutely, obviously, people this overall, many that's good for think used to being a

market So to And have appendage. competition of the the patient, great it. and with that out validation That's we're so we're a the it's is that get for we're already excitement space see and a changes And like the patients then that why those our see not expanding trial. every goal a That's just investigating have the what enrolled It's LeAAPS, with pretty growth. can that. with you data the X,XXX the That's X,XXX in eventually guidelines person we that people great doing just obviously, with of that excitement kind there. managing Afib. belief remarkable of validation,

Our line next with Joseph from Conway question of the comes Needham.

It's Joseph touching on in for just Mike. maybe improvement guess margin the gross on I quarter.

line being And efficiencies. think comments, improvement. in I just wondering into in called if about just XXXX, talked I looking production you think out was modest guys for Angie some XXXX, the potential I you initiatives and how those cost be phased. you give this to roll this more of out you quarter some around in year, expect that that color to saving expect could some happened maybe what

Yes.

of enter our you saw So quarter quite XXXX, into fourth of business. had comp. of strong, from -- fourth to an the efficiencies really the I'd a the we in say, improvement headwinds say led That off few international we mix kind offsetting what quarter, And I'd as same. of the production XXXX, coming more

you'd are headwinds, the past mix couple anticipation expecting XXXX.We've kind of see same to improvements talked was expect some some we efficiencies but going about nice nice XXXX, thing mix in with of in we areas given You're where improvements to a see of in If improvement. see to we the only the revenue, production improvements of saw kind the to that some margin.

that is would on year. of the benefit we've second probe. other of is the comparison the then existing nice launch cryoSPHERE EnCompass Clamp. a And half the The the our see the in the in cryoSPHERE more quarter, to of the is with benefit Again, that extent that there adoption about or other probe thing takes our so first launch talked in anticipated our the calls of To second margin. would off be probe, Plus you gross replaces

given to in this we team come say, really also produce and later savings engineering we're but would some have work -- team we anticipate team better efficiently, in product some are cost line, Our that that more seeing that our throughout can demand product particular operations ways did XXXX. the and nice this with XXXX what

happening be our gross tailwind fundamental you that knowing that So think in XXXX some but I and driver overall a when about big think the some number. production efficiencies to mix, things margin operations within the nice there's help is primarily

guess Okay. That's AtriClip a one on then I helpful. product. quick And new just very the

the could that thinking some back if you pricing, maybe that. launch. there's But that? are hold what anything you're commentary for for into coming around price talk Especially if timing market, to Medtronic about with trying guys just You gave about you the any increases

Yes.

We FLEX our most our Mini. away comment So far on well easy testing of going going that all, be profile to FLEX the so is be product product. product the product, size by is the superior It's and incredibly file to we've going forward. this I'll market to on V did today. product the on market called It's is it we first of for and incredibly received. deploy. It's XXX(k). feel the the a about the And like of All seen X/X far that

But what have this at back of now. point, evaluating so probably is strategy hold our right terms strategy that pricing of discussing in in any determined pricing we're we'll We detail. not the best kind and

Okay. Great. quarter. Congrats great a on

Danny Stauder of line the with Citizens JMP. from as question next Our

Can me? you hear

hear can you. We

Great.

first to procedure wanted So broadly about ask off, just volumes.

procedures? you some CABG surgical your led AtriClip So it market, growth to volume we've or get relates open in -- just seen heard on wanted valve procedures notable open your to that of to elevated any the as peers in just open your have of from color that. comment some levels and change on in And the ablation particularly have

of that from we've their system. terms Yes, don't But across of volumes. I I've so. typically some growing you'll normalized in improvement start period every surgery don't or the the of improvement. I cardiac that growth talked reports I dramatic I've heard per that good, in different seen any on it about kind that been might the across that steady see see in cardiac know kind to their might know we've year to There's think you don't know of year. than I COVID. a seen we're procedure surgery And one change since over now X% some that of course single XXXX X% places. think where I and HCA improved last that different calls in heard anything

guess optimistic right that cautiously I'm I I'd say now, So one. on

follow-up. just one Great. And then

today? to so The changed with great in that you minimally AtriClip And then think sits Turning MIS seeing procedures? over how MIS or to appendage XXXX. you go that ablation your that say, AtriClip you management. us where see. year And mix was are that, to could could in where the remind has some of in past, But of and open growth uptick an invasive

programs, attachment. from time A kind CONVERGE year in about to and talking say, the were starting XX% we're really treating realizing of uptick a Yes, increase CONVERGE our are attachment a adopted rates, around CONVERGE surgically continue strong the open And for in point the byproduct strength MIS And We the in fourth procedure. growth that in growth our CONVERGE our that now about U.S. we interest accounts products feedback receive or good, fourth saw the equal products at, quarter. in to to ago, we so procedure. an the pretty management, AtriClip the appendage to of nice or was our leading appendage the quarter in Pro this AtriClip business of attachment at have programs a MIS XX% the to mid-XXs during steady continue see

of ablation potential think open for MIS the management to upside, business. and similar clip our And the was product. for about our the As in relatively you the our when revenue look I given revenue U.S. strength for our expect we mix that XX% franchises, from XX% open MIS year, MIS those both and was with exited would about of business, the business, of think, the at remain I of AtriClip appendage businesses

comes next Oppenheimer from Suraj Our & Company. question the with Kalia of line

you right? Angie, Mike, hear all can me

you. hear can We

the you'll us dynamics remarks, esoteric more your given through how or AtriClip about all 'XX? could also? in the Perfect. Mike, we was flow on out. FY in you'll of enter that about prepared help a 'XX, pricing And just it we for consignment, questions couple FY general, so you think wondering about if should think inventory specifically, as is think should

Yes.

On it's we're the we consignment, very -- a and of any don't not replace. really That's much then product. typically -- consignment on kind have use

here inventory them And the the inventory for not to patient is like a price, very, out We've week delivery have we product sure lot sites, But That's from a a keep that to whatsoever that pricing two. got basis. today. not in got procedures kind We we've really be good able do to the just little treated that shelf. actually upcoming plan at understand market. standpoint.Related a no demand. to we've strategy supply kind to inventory we enough got of to on real-time feel great on in of we very We've make of So obviously want or being XX.X% purposeful. got the

at The a lower are V, of the today products which level. of generations the in Our there our is are first priced initial of product, one, premium the out also original AtriClip X FLEX market. was today. Those kind our

the products that. above priced highest are invasive products Our minimally

change So I and position good really think anything specific we're near on in that future. front to the any have we in things don't a pricing to today, relative

you're in presumably form desire terms Mike, is of Mini, what looking a in it. at smaller this a complete the Got stratification? AtriClip of going product I'm is just factor. LAA, terms for of isolation And

of of for persistent today are AF AF? in introducing So cases terms AF, persistent Mini. us to And of persistent being done the percent walk AtriCure just kind remind rationale through the us, what Michael, by versus long-standing

Sure.

a spent we Mini, FLEX of the time. lot On

out date. in to our lot improvements the implants our have mentioned we to to had do As And comments, we XXX,XXX customers to with do they figure want we've of work a product. what

product, that actually relative really, thing the of X/X a frankly, the It of are about and hoop-like original have hoop-like to product the And a we using other get have of was to FLEX the products. many biggest The the know, that they product, you we smaller V-shaped Mini overall. as had biggest does what quite product, also product. is profile benefit that's meaning good on one the That's as that as a we've the wanted so going people market. the is just that not And deployment which product smaller profile of a does. is got V the may a that.Also,

product it that usable a and wanted had people easy many as tool so hoop-like very nice with a deployment was well. and And and smaller

the And is have have Mini a PRO Mini people, able the likely. even less it X-millimeter least Mini probably market.In do And product in that's as so we XXXX, to that somebody and our used to for got to will will be V late also through in invasive is to come that product important out to to the a that a actually PRO at a going from and minimally was addition perspective. effectively we that as minimally to invasive, from be and primary procedure is trocar invasive going possibly go X-millimeter, well feedback product has make as that what that we brings the -- the

can I through on question, being guess, by about distinction the and go terms believe in it product, so long-standing I benefit so persistent kind -- CONVERGE terms big of you're probably being the a your of those persistent. the profile the small, second smaller that.In talking of between So and trocars, area there's

ablations. long-standing terms then what label Our procedure. persistent or I'd patients the persistent to. what a seeing. within are patients marketplace. go talk the X a catheter that long-standing hybrid X Very catheter of that X, had That's the patients ablations type we Most have persistent. for of or we in of failed say before patients to convergent most are fit few see failed they we're is

what I referring be so might to, question. that and answered that I believe And you're hopefully,

Sure. Thank you.

call over the concludes to Carrel, Thank to session. you. like now back closing I'd CEO, This the Mike remarks. hand for question-and-answer

one. to we everybody, thank Again, now. a having Have for and together. great Bye joining a XXXX today, Great. look us you good forward

you today's call. Thank concludes participation. This your conference for

now disconnect. may You