AtriCure, Inc.

Good afternoon, and welcome to HRQ3 2022 Earnings Conference Call. My name is Stacey, and I'll be your coordinator for the call today. At this time, all participants are in a listen-only mode. We will be facilitating a question and answer session towards the end of today's call. As a reminder, this call is being recorded for replay purposes. I would like to turn the call over to Marissa Biesch from the Gilmartin Group for a few introductory comments.

Thank you. By now, you should have received a copy of the earnings press release. If you have not received a copy, please call 513-644-4484 to have one emailed to you. Before we begin today, let me remind you that the company's remarks include forward-looking statements. Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond HRCURE's control, including risks and uncertainties described from time to time in HRCURE's SEC filings. These statements include, but are not limited to, financial expectations and guidance, expectations regarding the potential market opportunity for AtriCure's franchises and growth initiatives, including the adoption of hybrid AF therapies and future product approvals, clearances, reimbursement, and clinical trial outcomes. AtriCure's results may differ materially from those projected. AtriCure undertakes no obligation to publicly update any forward-looking statements. Additionally, we refer to non-GAAP financial measures specifically revenue reported on a constant currency basis, adjusted EBITDA, and adjusted loss per share. A reconciliation of these non-GAAP financial measures with the most directly comparable GAAP measures is included in our press release, which is available on our website. And with that, I would like to turn the call over to Mike Carroll, President and Chief Executive Officer. Mike?

Thank you, Marissa. Good afternoon, and thank you, everyone, for joining us. We hope that you're well. I am pleased to share another outstanding quarter for Atricure. as we drive adoption across our therapies to improve patient lives and capture the substantial opportunities in front of us. We ended the third quarter with $83.2 million in revenue, reflecting growth of approximately 18% over a strong third quarter of 2021. Highlights for the quarter included continued expansion of our pain management franchise and rising commercial traction from our recently launched Encompass clamp, as well as mounting adoption of Atroclip devices globally. Turned to third quarter Epicense product revenue in the U.S., which increased 12% year-over-year and 3% on a sequential basis. Hybrid AF therapy courses experienced record attendance in this quarter, as we trained many cardiac teams on the overall benefits to patients and best practices for setting up a program and working through protocols and logistics. We are seeing growth in both the average number of accounts and procedure volume per account, each quarter as we continue to focus on establishing hybrid AF therapy as a standard of care for longstanding persistent atrial fibrillation patients. Additionally, we are seeing increased adoption at top tier sites, with 14 of the top 25 cardiac programs in the U.S. building programs. To that end, in September, we highlighted the experiences of Dr. Eric Bush and Dr. Zayed Eldada implementing hybrid AF therapy in their respective practices. Both EPs emphasize the excellent clinical outcomes for their patients, as well as plans to substantially increase adoption. We believe the commentary from both physicians underscores the efficacy of hybrid AF therapy and immense opportunity for AtriCure to address this unmet need for millions of patients. Shifting to our pain management franchise, crown and nerve block continues to be our fastest growing therapy. In the third quarter, we saw sequential revenue increase and are gaining traction within a broad base of accounts, with well over 500 accounts year-to-date. We believe strong adoption of crown nerve block therapy is due to physicians seeing immediate results from providing temporary pain relief for patients after thoracic surgery. While we are working to impact more patients in this space, we are also exploring new opportunities, including the application of crown nerve block for sternotomy. We look forward to sharing our progress on future calls. Now onto our open ablation franchise. Earlier this year, we announced full-scale commercial launch of the Encompass Clamp in the United States. The Encompass Clamp leverages the proven technology of our Synergy Ablation System to provide a simpler and faster approach to ablation and open heart procedures. Strong momentum from our initial launch carried into the third quarter, driving nearly 21% growth in the US open ablation revenue year over year, reflecting a mix of new adoption, and additional revenue per procedure upon conversion to the Encompass clamp. We are pleased to share that Encompass contributed nearly 25% of our US open ablation revenue in the third quarter, and we are continuing to expand accounts and surgeons. Feedback from our customers has been exceptional, and we remain confident in our ability to further penetrate the cardiac surgery market for many years to come. Finally, Our AtriaClip product line continues to see consistent growth worldwide with 18% year-over-year growth this quarter. We are advancing our efforts to innovate the AtriaClip platform, focusing on less invasive and easier-to-use devices. We've seen many opportunities for growth in our appendage management franchise as we increase demand in both our open and minimally invasive businesses. In addition to our existing opportunities, we are actively investigating an expanded application for the AtriaClip platform through the LEAPS clinical trial. This landmark trial examines the prophylactic use of atrial clip devices for stroke reduction in cardiac surgery patients without a preoperative AFib diagnosis. Over two-thirds of the nearly one million cardiac surgery patients worldwide do not have preoperative AFib diagnosis, yet have an increased risk in their lifetime. We believe this trial will demonstrate the benefit of excluding the LAA with the atrial clip providing a substantial extension of our markets. Trial initiation is underway with patient enrollment expected in the coming months. While the trial will take a number of years to complete, we anticipate awareness for appendage management and all cardiac surgery procedures to increase in the interim. In addition to our efforts at market expansion through LEAPS clinical trial, we are cultivating new markets by building upon existing technology and leveraging the unique physician relationships we have developed. Earlier this year, we announced the first patient was treated in the HEAL-IST clinical trial. HEAL-IST will study the treatment of patients with inappropriate sinus tachycardia, or IST, using hybrid ablation procedures. IST is characterized by an elevated heart rate and distressing symptoms of heart palpitations contributing to the inability to sleep or exercise. It affects millions of people around the world, and currently there are no approved treatments for this debilitating condition. We continue to make progress with the trial and remain excited for the potential of this new therapy to unlock another significant market opportunity and provide a solution to the many patients with ISD. In addition, we are advancing product development efforts on a dedicated device for this therapy, and we'll share more as we continue our efforts to build the market. Across our business, we are seeing growing interest in our differentiated solutions and are proud to work with all 50 of the U.S. News and World Report's best hospitals for cardiology and heart surgery. The investments we have made in innovation, clinical science, and education position AtriCare for accelerated and durable growth for years to come. I'll now turn the call over to Angie Weirich, our Chief Financial Officer, to discuss more detail about the quarter.