AtriCure (ATRC) 30 Jul 242024 Q2 Earnings call transcript

Good afternoon, And welcome to AtriCure's Second Quarter 2024 Earnings Conference Call. This call is being recorded for replay purposes. [Operator Instructions]

I would now like to turn the call over to Marissa Bych, from the Gilmartin Group for a few introductory comments.

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

have copy, If XXX received not you a have e-mailed XXXX please one to you. to (XXX) call

that today, me statements. begin remarks we Before remind you include the let forward-looking company's

market to time are and risks filings. but statements in beyond AtriCure's trial and opportunity initiatives, materially expectations to, subject which results guidance, and uncertainties clearances, described the potential may projected. are uncertainties, AtriCure expectations risks include, control, growth SEC for including Forward-looking and financial future of not from competition, are regarding franchises numerous reimbursement outcomes. differ statements approvals, product many those and from AtriCure's time clinical limited to These AtriCure's

update publicly statements. AtriCure obligation any undertakes to forward-looking no

to with revenue reconciliation Additionally, comparable most currency website. loss non-GAAP a constant and specifically on available measures adjusted A GAAP per release. is share. in financial our financial on the measures, basis, non-GAAP our reported EBITDA press adjusted included which directly is measures these we of refer

with to call Carrel, to Mike Executive turn and AtriCure. I like Chief And over President Officer the of would that,

across Great. Good us. another am by over growth, We pain. joining of quarter portfolio million, you afternoon, revenue thank technologies. $XXX our highlight demand patients driven of to driven to reflecting our XX% fibrillation everyone, at AtriCure commitment treatment and postoperative for strong unwavering by pleased of I atrial and with achieved increasing total

management, several international across open and of Our appendage our underscored results business, including growth were U.S. U.S. pain accelerated areas by in franchises. management

in positive sustained profitability, quarter. towards nearly adjusted our million the continue $X also path We EBITDA for generating

to this we with milestone of flow generation we year. remainder flow over plan $X cash an quarter, million Additionally, positive the the for cash of reached positive and generate exciting

CryoSPHERE the international strength and We by in business markets, our remarkable drove the U.S., on grew sales in acceleration XX% successfully with with in launched franchise, quarter. updates Starting in probe. highlights quarter to CryoSPHERE turning of where we second pain management the which Now XXXX. bolstered the

Star therapy CryoSPHERE procedure of and XX% to and realizing technology time. Cryo bringing are with larger with through more Max look The greater later free patients We're of a are applications as a momentum enhanced probe this time, the builds with therapy. to the sharing reduction Max upon and we year. CryoSPHERE Block launching in updates excited Physicians addressable our exploring also Nerve benefits CryoSPHERE bolt-up the parallel, features procedures this expand progress. the markets which those is in ablation Nerve generating reduction forward more we Block additional In Cryo even in efficiency to of

our atrial franchises on fibrillation. the on centered Now treatment to of

in Our rates international rising franchise strength key open Encompass along clamp grew reflecting in ablation our States treatment United with XX% the markets. in worldwide,

Our ablation for we faster EnCompass technology with Clamp steady interest and system see synergy a Encompass fibrillation, treatment and treatment innovative base. we introduce surgical simpler as our our customer across this utilizes of atrial in

the in EU camp launch the States, half only back and United is in While the XXXX. approval Encompass we currently anticipate MDR of available European

Next, management device appendage activity. our the our with in devices to revenue outpacing growth saw worldwide acceleration devices. for franchise open XX% growth MIS revenue competitive despite XX%, devices States, quarter the appendage our achieved United open In of an management nearly chest

market opportunity in We continue of competition believe to front validates us. tremendous this

of received FDA and on I with AtriClip clearance the leading evidence. we end, innovation share generation AtriClip that to we newest clinical have field importantly, device, are Mini. that just excited focused our the to More am And FLEX

and this closure while implant new use, simply, the Put a this rapid great of we unparalleled much to adoption platforms. once for expect performance community innovation maintaining our in smaller on launched which and the year. safety profile its platform and fully FLEX is results AtriClip ease a later is widely latest differentiated recognized legacy Our outstanding device the introduces AtriClip of physician achieve Mini

trial groundbreaking addition, are as robust at today. a patients In LeAAPS reduction in X,XXX enrolled pace stroke we with over enrolling of our market-expanding

patients and and volumes procedure were to certain although quarter, adoption United cardiac We annually. to second as impacted middle market understand complete of in And a diminish. to PFA volumes a the benefits of we growth our ago In afib the X We trial the clinical the in introduction And experience appendage to Europe EP the continuing technologies. eventually patients several and saw new these surgery this benefit finally, to with diagnosis, the PFA appreciate devices This hospitals clear years us devices. catheter expect hybrid in enrollment catheters of in to atrial landmark the accounts, is in patients globally. manage we X,XXX diversion shifted time the therapy global tells expected of well XXXX. new show AF case million in States, who drive over will undergo preoperative of of our are using without their

we in last expanding leading years, to X and over hybrid growth increasing treatment Europe have interest technology. our seen our the To that point, with of rapidly AF EPi-Sense therapies

limitations hybrid the franchise, patients. experience long-standing treating We physician to these true expect U.S. shows in hold U.S. particularly for in the this of devices Afib therapy persistent our as

we the in serve $XXX year And the as by benefit approximately believe funnel worldwide. our management to AtriCure as ongoing sales demonstrates of MIS well the our in million, repeatedly The are guidance for a long this run, AF. benefits we're other numerous efficient ablation XXXX. hybrid can differentiated will and on year and growth softness using reflecting focus patients approach, bringing robust advanced trials more to $XXX endocardial to million the CCF hybrid tailwind the ablation meantime, guidelines CONVERGE In growing everyone appendage patients. as better relative outcomes our We of for the from over our of offset a Considering but in market. revising full XX% portfolio, the to MIS in data growth studies the full positive and of DEEP AF wealth awareness influenced from

to manage our with We deliver million first pleased discussion $XX our of the plans breadth our reaffirming and are to EBITDA closing, guidance and growth million. $XX an we performance. showing also with platforms. are adjusted half to our our continue In spending of the

market cash remain in invest expanding and our confident generation. also We growth, strategies and in growth to to profitability opportunities, durable leading flow expansion

over Angie And to I it will with that, Wirick. CFO, our turn

Thanks, Mike.

$XXX.X a sequential grew basis, reported X.X% second XXXX. from the revenue when quarter On on Our revenue worldwide a compared currency of quarter XXXX. first second worldwide the the a second constant to increased XXXX basis million, of on and XX.X% to XX.X% basis of quarter

ablation of management $XX.X the products, by propelled quarter XXXX revenue the Encompass second clamp in XXXX ended procedures V in $XX.X over the reflecting XXXX. which up despite positive appendage adoption. million, used These growth quarter from our invasive minimally Second activity, quarter of appendage was in products management of quarter $XX.X over management at up our partially XXXX. appendage Open quarter, open U.S. million, invasive Notably, were in chest results a ablation competitive were device. $XX.X accelerated up the sales product sales slight sales XXXX with strength our XX.X% slower growth by second and U.S. decline minimally XX.X% a offset XX% quarter X% the products over million XX.X% of FLEX increase the of million, second continued were AtriClip to the second

to results management, As in therapy is pressure our international reached total the for XX.X% pain $XX in exceptional revenue PFA a hospital second finally, in a to $XX.X of And international growth quarter sales our second XX.X% systems driving million, on where hybrid XXXX. Mike his the our led across XXXX basis million franchises, rounding We reported out business over constant remarks, XX.X% currency the quarter the second mentioned reflecting up interest of as delivered in basis certain catheters quarter and of within on of quarter. compared XXXX, U.S. performance

[Audio Gap]

accounted Asia our was international and all international XX.X% XX.X%. major first up across and growth Consistent million, the seen quarter, in $X $X.X other million, Pacific up with and markets. markets most for franchises

to XXXX. We continue expect for throughout the our international business momentum remainder of

Gross key in of an XXXX. comparison approximately second decrease basis XXXX. quarter second metric XX.X%, the to point was to which for XXX the represented Turning quarter of another margin

was decrease primarily less This driven by and product favorable mix. geographic

XXXX. expenses the our Now the to quarter the Total in million expenses $XX.X operating increased details second million quarter second or for of in of to quarter. XXXX million moving operating from $XX.X $XX of XX.X%

and activities, clinical grow product driven to and strong in XX% clinical as increase trials investments quarter continue enrollment LeAAPS on globally XXXX. development of initiatives of new the primarily resources in million XXXX, second saw $X from which focused quarter quarter from development research physician our We by compared for both and EBITDA trial expenses well programs. from $X.X expansion of team XX%, Adjusted training the the for million our as measured the second was to increased SG&A a

per in and second ended per quarter. while the during $XXX and second loss quarter $X.XX adjusted million was XXXX, share a having second Our quarter period the second investments, with the the each in million in share compared $X.XX cash quarter of in We of cash XXXX was share $X.XX loss per $X.X the $X.XX, to generated loss flow respectively.

our future solid cash the for We on continue are expect the current business fund remainder with operating positive of balance strong sheet. and of generation the needs and to year to footing

turning Now to outlook XXXX. for our

markets to We therapies advance are adoption of of our throughout globally. determined each our

management across higher result $XXX with year million our low anticipate XX% business with will revenue U.S. revenue fourth third a to million MIS quarter, therapy appendage by MIS we summer midpoint quarterly contribution XXXX. healthy the our in the between with temporary, followed from refining sequential from normal the products. ultimately at of growth to a ablation to in reflecting seasonality be be dynamics experiencing U.S. full $XXX guidance most growth quarter. the in in impact the these are and We Consistent of to decline second believe are our our our over cadence single-digit rebound lower to approximately XXXX We and mind, a business we

business, perspective, as approach managing power market believe we realize operations. investments in we leverage our From our into from We growth of staying the business opportunities this prioritize for future. solidifies margin efficiency well expansion and our the are a future carefully and

to impacts margin XXXX our gross maintaining offset for geographic mix. with cost We XXXX comparable be varying are from that and and by will product savings potential initiatives expectation

of cadence remain and on in improving and the of are $X.XX. and for approximately XXXX, XXXX, key like of coming quarter adjusted improvement Based in On thank closing, more our markets. EBITDA in corresponding the a profitability adjusted per quarter the XXXX performance to EBITDA positive adjusted over third outlook our fourth year you in to maintaining $XX demonstrate loss third solid do their the to to quarters, XXXX. in our results would matters. bottom our spending line, quarter team I quarter $X.XX EBITDA modest a revenue to we we of full robust to approximately for the $XX million mission, commitment committed our what day areas In share increase of the million expect throughout adjusted each second

we we And of well positioned the with millions of remain driving are into growth therapies, confident patients lives future. together, our well to worldwide the improve

point, to Mike this comments. back I'll turn At for call the closing

about while geared strong flow across cash advancing innovation Thank penetration we expansion excited XXXX, Angie. platforms, improving first you, with the continued and towards everyone, and generation. our of initiatives market half clinical are our key growth double-digit And

that team to of I'll and back our in all the all initiatives for affected the questions. in and I and strength Our half after With and look of of remain turn R&D results an exceptional products, it best-in-class to -- store pain us. team our is surgery. Afib the abilities confident patients AtriCure forward . it that, for our and by the for dedicated over delivering to XXXX and has operator of

Instructions]. [Operator

Our first question comes JPMorgan. with from Marcus Robbie

a on near-term Can long-term the is on having actually Lilly thoughts is the on the Clearly, of impact Robbie. This impact. of PSA at just give refreshed you launch business? for sort least us your

that what can to such gives those the the you PFA MIS So confidence is coming . eventually volumes having thinking is be traction side, on great your And when case back your in technologies? still PFA complementary

question. It's great and a Yes. fair

has As positive we that really we it look think do at impact. PSA, still a

patients the more into more be funnel, are to and more and more failure. going there As enter

faster think So areas do incredibly it's a that made for is lot PFA . this the if about you successful, to people it procedure.

faster. we there's still are on to seeing a being definitely more to I But is effective? questions lot it it of think is And it be about, front. be that going safer going

hybrid funnel lot that that same complement that to out that, for helps tried you're we failing once to the the filling and that to patients. you therapy there. when growth go catheter. fail. once them if they're Hybrid the over rate, means it see is shot much at patient is in with be to companies, catheter-based you're to a of that dramatically seeing tried that a So really need And going particular, that What Europe. last a that kind started believe have failed great of We the of out patients help you lot treating -- you're you've to and quite pretty in they treated more in after the

registries come different sites out going and that a to with tells little starting Europe, happen got by you PSA, distracted sites So our it. is at is the experience that's the own also from look see what we're us that this various to got the data of at they excited we when think about that is

They're they're actually start then X, a quite XX on on using our they're and X, still and seeing back track that. saying, therapy to PFA we've failures use got get later, hybrid really bit. to some months come

think to procedures. lot right and Europe, whatever this Because they making But We side. distracted away we starting U.S. this of in sites from we're lot that in see continuing doing to now. were device, that really definitive to when the I the that growth that of date turn. device starting in robust are by from using We're a a on going see time give changeover all so using to that same takes And that's Europe. anticipate a staff Florida in and can't right now, happening energy the the they're that still area we see

thing, of to still patients funnel think would board. top back bit. that actually number seeing And once term, it's I on sites a to long guess that they is to we're they're that come On we that which have failures, created coming more that, X going going And quite overall I the still of also new add large the hybrid. so is the be increase

are So implementing seeing they're we're lot of a saying they but sites PFA, that wait. also

the We courses. hybrid EPs of of coming to a happening mix from come to XX% across had course a people implement talk We come to the therapy also to almost teams country surgeons, June, our record these number hybrid coming want our into of on were people In that course. we had XXX as that about was and hybrid XX% future front. and what the

get a in happening a kind well when going survey they're and as data to the about through. of we them good from the talk we of lot changeovers that data field what's So of and lot

it. Got

now management as just Okay. with quarters been And then of business. the the competition open the follow-up few a market. a on appendage side on It's

has be sticky rest this business So that then? How should how quarter? called we And trialing a thinking those bit the growing talk about how year? about can that of you the evolve out dynamics you that

that you the think over competition great saw growing. that the in market us flattery of that that actually fact that's big robust thought enters, grow. us I market We the market that is numbers talked large we've we a Yes, overall it's the and got market, time, front about and would really a when into in to

on are the an that sound the people actually more And open is by front. of saw acceleration getting more really got interest, of using themselves this business. creating pricing having Medtronic there to well. is market, product on They've what that our really side sure. business as was But out some you're you quarter in demand, XX% obviously X their that for us growth

is menu out market also market. having a to this just the long, device exceptional top clearance in a can't the and the call So that, think FDA from to excited a our time That long think, got And profile have had new starting said, going standpoint, being with of over be out positive before for that about just more product I problem. overall increase literally on we impact entrant, already is product I people came the that's the we on only just here. thought way we changed Encompass, It our best Flex we've on When smallest roll an the in market about that is that time. I front. dynamics.

Flex the Mini device. same think I with the to is going happen thing

device this back excited the really that is much and Just profile build of smaller. us size half a We're launch platform on. really the because year. in of of to great sheer for so to It's the

Our with next question Bill Plovanic comes from Canaccord.

for congrats guys back raise quarter. the the Mini, here? Maybe AtriClip will to on And that John upon Do take you strategy describe It's benefits you can you maybe just Flex Bill pricing here On on reflecting you'll the the launch of tonight. circle X. device? think price

John. Yes,

you new ASP. to our Mini. I still with strategy So say And of goals innovation one to our think market, overall know the I'd that we improve is brought each Flex that's with

Okay. it call, clearance private a you hear China guys if on did you for the but talked Great. guys in [indiscernible]. And don't about know I [indiscernible] recently I it, didn't

thinking that can you of And you'll commercial you take So in size? what there? how market approach opportunity terms are about

China. And able that that. fact about to does clearance working we We've enormous that that yes, feel been be get Appreciate year. an XXX,XXX market time and access for quite a going over the did cardiac good for really AtriClip we're in on the device to surgery some

the a already we our there today. great ablation share side market of on business have So

have China been we've kind we're on that on the valuation. in building only of So side. ablation the But products had

'XX We as year, anticipate product we on much adds obviously bringing would and product at that product. been having to the forward, the Atriclip going revenue it's look we impact And that in is but this don't something a this obviously into market, that they for, they've 'XX, want anticipate so great that market. on great asking tremendously the And that this market.

years. have So that outgoing we it the anticipate this on some in impact will

And our next Stifel. question comes Rick from

Rick on today. for back John is I this to Angie, wanted just go guidance. to

the out down just better converted of few and now? business. today business. worse? you're seeing on stand those to the your they You do brought getting what these talking are view? the pressures million Have about side bottomed still of on where the understand I Just we pressures wanted by businesses. side in it a both in AtriClip Or

John, I'd in say, at late of point, we kind would late first the very in quarter. the this that say didn't we quarter the a which way quarter, expected. started, exit think second the I'd have first pressure we And just really, in

programs I think persist the access minimum. became pretty quarter the drumbeat technology accounts getting we this team, a they of and at that through of that, that FA were we're distraction rest increasingly field seeing was to were second the and hearing year our pronounced their from the in that number low relative to an something that PSA, the that would

our So that's in really driver the view.

recovery as philosophy comfortable for to numbers our perjective, we has very well. out be feel upside put and always see can we prudent that think think, to to been guidance, I pathway as investors from our about guidance for meat very want think I well a the as we we there, when

to make Atriclip in sure this impact we MIS then a which are management kind is revenue. and of XXXX used dual ablation our want component hybrid business, appendage so so is it our it's as of to both overall at beyond recovers, the MIS speak, just those fold. And when procedures, looking anticipate that the but I we're this,

Flex And and impact guidance. Flex much also increases of I'm was launch guidance the a That's positive clear. curious, incorporated Mini impact price think sort incorporated. impact sticking in Mini much, now? sort any, And was how to of then if just how prior I of

year. year. would timing still I'd baked no Going We this have for middle into FDA the going our say launched evolved be the which year, how And it's guidance second different from XXXX, we for was into looks we of of felt expect and the product our the pretty that product, from clearance. in half the confident this ultimately the into to clearance

a And if X built has overall guidance our got you the Flex that and It's growth appendage MIS at within. robust management Mini obviously, you're part of -- look not the that. and open

Marie Our from next with comes question Thibault BTIG.

Maybe shift of long-term I This I'm side how be, on still on you're digit just the the to mid- open guess ablation grower? I over thinking can run call is of penetration about to Sam tonight. for to Marie things. on much for wondering then claim? there mid-double maybe the the business. more in Can Encompass quarter, terms a room And the this is how it, outlook

for sure that into bullish to accounts we the only XX% focused point really sustain so well team ablation that clamp using making as that is to felt across deeper XX% broader market than using to and our set call being at Good in penetration help this that X good. solid to in a is our of believe to really this quarter It surgeon activity question, adopted we a broadening franchise, say growth continue is it, really Encompass who accounts. business. was U.S. will as Sam. I'd clamp we own going good at area are and this point relative We're . the be Encompass the and adoption of penetrated estimate seeing Encompass more technology, our it's continue the that have accounts time.

fact for underpenetrated this to a the be got procedure is and a to grow that continue that's this made do So continue surgeon to focus on focus superior adoption. We've will to easy market. technology the vastly incredibly

procedure. second. helpful, endovascular I are launches. it I the using back of CONVERGE for the distracted the as they the from still then Angie. of Really Are and guess PFA aren't maybe some a using if And the that PFA can accounts come side to maybe just

its work Just wondering starting if accounts the complementary even way nature, to through. at is some

see see where to so kind U.S. where of been that in we our already. you Yes, experience starting some definitely Europe it see the over in new accounts. has That's We are

it. seeing a of not ton You're

of that several that in what got seeing we're we've But into really I we'll that is beginning they come then and But to procedures. do their and use when sites PFA both is are if be fails, as what we stage going PSA that's anticipate procedure converge to lead do anticipate back PFA more and that in into to the CONVERGE going XXXX and second complementary and kind relative what's that And at to of the point us aspect it. time. beyond

you that's procedure, Just at What come you're out, the patients. seeing hybrid so as because if same after the the which the that? complementary that where you and still data do look that includes the they have it becomes failure at CONVERGE, [indiscernible] then do rates basically And And that are with were point. is after that's you those

question Antalffy UBS. . with from Our Daniel comes next

just competitive through and seen drop follow-up Mike, quick a Have seeing mean, one site little you're after can AtriClip period? follow-up trialing? and perspective you're bit then from you And there. on perspective. we a still you sites a seeing I just Are you the the competitive what that. product from what seeing about trialing a trial. talk Are

the just we're all and the product Yes, AtriClip great seeing product time. strength at works AtriClip

it. of a not any continue a as and result accounts majority not Like AtriClip cases. their we're use flip anybody on seeing lost haven't of over We to

relative have come better kind basically we're like full a for do to lack some feel AtriClip done you back trialing we overall, word, and So sites, have to as that. mentioned, have great that time of some success. We some of may having

But So biggest number. we've as rate, some very a still of just large definitely that. one our see really with growth sure. franchises. seen you I on mean, we're can growth of It's seeing overall our overall, for robust

really standpoint. good that So we in . from feel like a we're spot

it. PFAs you market distracting patient there end impact then clarify it things? just PFA CONVERGE And sort think are EP the going side is with Is to more Got do the to and the what of just here? you X on it's of PSA. point Or you more Okay. guys just think seeing

Yes.

-- you so going different you're to you're that -- there's X dynamics what on right. think I X and had

seeing That's the install So system got really mostly equipment, the having in-house. is now distraction. you've their the go it, -- thing their PFA to sites new is workflow first train which that we're are the whole their that workflow with what purchase teams, get today,

treat that And they're their of is see. to I'm primary time. making focus treat PFA I'd try try quickly. the that the they the of is earlier people throughout see that's say, last switch, really that to what, switch et which that just on a to also making they're that which that as you're at you we thing seeing lot say They country. that we sites, patients going "You that become patients are a be of know treating. And they cases to and one little sites anticipate going many going to the But What distracted I'm a and do bit how and day, expected, more going go doing -- in result to efficiency a incredibly tend this cetera. we can

to -- [indiscernible], term. see that you at many but then what if are I'm seeing lead I'm you going being they the longer PFA, just look But towards if hybrid to I treating going continue happen. also of going look failed go we Let is catheter me sold today. how some to sheer that catheters that's and at that's go to do basically anticipate the ratio. numbers,

equivalent. Afib year. the So or getting XXX,XXX that are now in for growth this U.S. I ablation what, treated the is think so That's so XX%, patients know rates call so and just more last XXX,XXX like, people or are value XX,XXX anticipated year, catheters this most the it's year. on this

might 'XX hybrid in turn source values that And And patients it beyond to going look be Europe, something And like. start look starting that's regardless and need those I over then at energy are that you we're going that's where So to have you more a do just many that catheter are that next? going see patients of what cases. see do what you're more and why I to of into to 'XX. anticipate, to in

comes Company. question Matson Mike next Our Needham & with from

is Maybe of for growth kind the on guys. this just question, just Joseph first I sustainability you a Obviously, Mike. Andrew, that's international wondering driver strong sales. the been the guess on of for

think continued year. I expect you throughout the momentum you said

there helpful. So additional be color maybe a little would

bit you China, there, is see heard on you'll But I could we've guess, China China. how But the a Obviously, maybe little AtriClip. environment specifically, revenue some launching like if weakness going? the some be more companies in comment

be could helpful. you if would that that, comment So on

To Yes. start the broadly. with international business very

about levels kind reasons optimistic underpenetrated. to significantly first that in of each that be off, I many market operate accelerated think sustained there's we growth

big seeing front in in is success we each market in We're on to across each particular big, good focused this Europe year. our So comments, in expect in plant, of as And our team Mike Encompass his franchises the of Europe accelerated that therapies. us. be later driving mentioned of adoption opportunity really on

So continuing technology one to of belong And markets, bring where continue example say in technology technology we kind markets, is to each say, look I'd along and is that. focus. one just area the that's European [indiscernible] at new Europe, to with our invest beyond market to of the of there, that's innovative and

We're . in distributors we ablation of of solid. group nice disruption in that complement business, I'd the will market. So very to AtriClip think technology work with that And to China the our relative seeing our level is say a business our and be China. a not same

curious That's going quick management how is just then franchise. great. pain the helpful. a in And maybe sternotomy very Yes, We're one. Okay. maybe

and CryoSPHERE talked was feedback we've on Max the time reducing us [indiscernible] Yes, for really time. I about call to sternotomy, plus XX% the before given is that we call biggest reducing I XX%. then pushback got this think And

So minutes freezes. those to of for time freeze that minute down that's X taking big one that. basically for yield from a you're X And a

And an to this baking going that do so anticipate impact launch not CryoSPHERE to some do guidance I be look half numbers on we assuming the We're once that our year. on the We're of have sternotomy. it on kind back as of full of it might uptake in we there's though. into Max, a that not much

to max see out, if start that incorporate rolled year some we next that. at to it we look might in we relative upside get we obviously As our and guidance

being a at devices different So to going we've that I are that And think us. built look make we difference market. X sternotomy huge a upside for as really in

Stauder JMP. from Daniel next with question our Citizens And comes

Great. Yes.

any pain Just new this good, would more it it sounds in management, Plus But new features, like dynamic with with feedback. had Is any really great. this Just . or is you give time higher CryoSPHERE strong the quarter, be on physician of growth? utilization and usage for color commentary some the us first question, my a benefits? early terms strong can

it's combination of a both. Danny,

that account the we year, seeing their existing saw So strong the also growth expand X across adoption the seen accounts patients. in of really to broader we're but quarters. within start set the they a quarter. to We've that past continue that

So it's a both. combination of

I think CryoSPHERE plus new the of introduction the probe, technology.

was The XXXX. existing launched in device

time, Max. with who been for maybe had certainly CryoSPHERE market the time . the it's field hesitation also we're this for back excited with a and this in CryoSPHERE think later reduction go and as year to with they I Plus, reinvigorating we've got our customers team

X on Great. just pondage follow-up Management. And then

You've been you being AtriClip is like piece. that by with from had we but time prior of quarter? mentioned the the taken up PFA? just down Or impact bit Is asked by MIS seen MIS a LARIAT sales . in about EPs it any had the U.S. the tempered it, in the

the of It's It given latter. drop of off first dynamic was really this MIS that ablation saw kind in the in quarter AtriClip quarter. MIS softness a we a is It's [indiscernible]. the kind slower the side that not the with

from And Co. our comes Suraj . & question with Oppenheimer Kalia next

let many next one and And them PFA of and on AtriClip one the both asked. ask I'll throw first your the Mike, me on been have So together. questions way

know terms what, So it look, that are factor didn't for we your years PSA, this right? Mike, expectations now the around. It's it's What you We've PFA new, different right into talking calculation? you're about you from What managing differently now. not of like, our is been been in onslaught? seeing

Yes.

of just So we numbers anticipated like our different the towards said, second Europe, aware on saw ablation. the of of over it. and going of we What's impact kind saw what built it's we thought the front, that were really all we process site's a happening. coming, into was We of was kind it. the Suraj. we That to great PFA distraction It's expected, in our and relative question, you

we think contracting through in do their they at say And and is they from patients. they're to more to mostly still flow it's on actual workflow to a their I'd over really with in was cryo going are patient this going little quarter. think, se, were mind are I'd pronounced a whether a away maybe kind data that that what getting standpoint. committees, that they Not to compelling share. the little All patients. bit were workflow I VAPs hybrid is do mindshare distraction. say treat with versus into We like, were that the patients maybe bit that was running, there. patterns out doing they systems from so moved do bit running that the and the the data They persistent how out over getting PFA. Europe these took they right The the be feel in -- expected the terms them temporary, say over the than now, that more of they're then much switch to out what thought from site actual their how those think going more going why from still affecting fast about terms getting more process, as on focused we able for they and look of it's because in It That's to going if took programs had sites so the referral up go patients it good. RF to up per long-standing and their was figuring little -- as versus of that time not took

modality -- us, comments time, tariff mistaken is that for to it AtriClip new I'm of [indiscernible] funnel. the and Mike, is only pricing. think here, Andy, modality, to going the irrespective prepared made color over RP. energy something one your the I'm And more energy specific long-term I some store share I growth maybe affect sales Again, you comments So paraphrasing or, And BFA the for you questions increases into to some in the in remind some give maybe come of patients are could remind that one of only because Mike, Mike, or remarks -- failures, was your or us on also, is i.e., quarter? reason, it here, or same-store if CONVERGE I thought in

the question I'm understand not modalities. sure that around I completely the

an the RF Episense device is So device.

So today technology front. that that utilizes RF is on

be In the mean can terms other on with what side, EPi-Sense be the or used anything. they can used catheter-based, cryo. of I used can be the with

the -- you're you they on you're that the but if whatever not side use have you device. decide doesn't to Suraj? exactly impact can of any on not asking, what technology, whether So sure I'm not -- what going to catheter-based or the EPi-Sense use or that's

the year for many try second we as back, going the and get into Maybe question, to I'll Yes. years... Suraj answer Suraj,

for indicated. that's asking. I I the energy Sorry, apologies. agnostic what it's think exactly If catheter you was and what converge, that's Mike,

So...

an answer a long I yes. simple, do pretty The us give agnostic. answer. have that Catheter to to is

Okay.

same-store, Angie, store. And Okay. new

Yes.

year much surgery kind number in U.S. So of cardiac the penetrated years Nature a and for number with now, centers our Open entering we're the XXX% the of clip pretty in we've been devices. of

that existing you're seeing within So really growth accounts. is the

concludes question-and-answer the This session.

it now would and Mike CEO, Carrel, President like to back . to for I closing turn remarks.

about and today. device Flex announced as great of thank you half just your the and Mini the looking for AtriCure. the first the year And we that of half year, everyone, forward joining said, interest I Again, in to second excited really

You'll coming soon. you more future. . that in the on Talk to see

This for concludes Thank participating. conference today's you call.

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