AtriCure, Inc.

Good afternoon, and welcome to HECURA's fourth quarter and four-year 2024 earnings conference call. This call is being recorded for replay purposes, and at this time, all participants are in a listen-only mode. We will be facilitating a question and answer session following prepared remarks from HECURA's management. I would now like to turn the conference over to Marissa Weiss from the Gil Martin Group for a few introductory comments. You may begin.

Great, 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 HRCURES control. including risks and uncertainties described from time to time in HRECURE's SEC filings. These statements include, but are not limited to, financial expectations and guidance, expectations regarding the potential market opportunity for HRECURE's franchises and growth initiatives, future product approvals and clearances, competition, reimbursement, and clinical trial outcomes. HRECURE'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 constant currency revenue, 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 CEO, to

Great, thank you, Marissa. Good afternoon, and to everyone, thank you for joining us today. 2024 was another successful year at AtroCure, demonstrated by our continued growth, improved profitability, several new product launches, and progress on key clinical trial and evidence initiatives across our franchises. For the year, we achieved revenue, a $465 million, or 17% growth, with outstanding performance in our pain management, open appendage management, and open ablation franchises. We also made significant strides in profitability, expanding our full-year adjusted EBITDA from $19 million in 2023 to $31 million in 2024. We exited 2024 with strong momentum throughout our business worldwide and remain excited about Atricure's future. In January, we provide our financial outlook for the year, and I am pleased to reaffirm our 2025 revenue guidance of $517 to $527 million. Following a robust 2024 margin performance, we now expect to deliver full-year 2025 adjusted EBITDA of $42 to $44 million, an increase of nearly 40% over 2024. Additionally, we expect modest cash flow generation for the full year. Before I turn into more details on our fourth quarter in 2024, I would like to remind everyone that we are hosting an Analyst and Investor Day at our headquarters in Mason, Ohio on March 26th. We plan to review our leading product portfolio and innovative pipeline for market expansion while showcasing our facility and team throughout the event. We will be joined by several leading physicians, including Dr. Whitlock, who is the Chief of Cardiac Surgery at McMaster University, the author of the Seminole-Laos III trial, and the lead PI on our LEAPS trial, and Dr. Soltes, who is a leading surgeon from the Cleveland Clinic and a world-class expert in heart failure. Both are lead investigators on our landmark clinical trials and, as mentioned, key opinion leaders in the field of cardiac surgery. We will also have two electrophysiologists, Dr. Makati and Dr. Sood, to share perspectives on their experience with the conversion procedure and current market trends, including PFA. Finally, we intend to provide long-term financial goals as we focus on driving both continued growth and expanding profitability. Now turning to updates on our business and highlights from the quarter and full year, beginning with our pain management franchise, which grew 32% worldwide in 2024 and 43% in the fourth quarter. Pain management performance reflects strong execution by our global commercial team, bolstered by the launches of two new products in the United States, our Cryosphere Plus and Cryosphere Max probes. These probes reduce freeze times by 25% to 50%, respectively, compared to the original Cryosphere probe, resulting in a meaningful overall reduction in cryo nerve block therapy procedure time, which can be a critical factor in adoption. The advances in innovation with the Cryosphere Plus and Cryosphere Max have allowed us to engage with new and existing physicians as we drive deeper into accounts. In 2024, we added nearly 100 new accounts globally and saw more than 800 customers utilize cryo nerve block therapy. We also increased our efforts to engage with the clinical support staff at hospitals as they are often the closest to the patient during recovery. We received exceptional feedback on this therapy as support staff observed observe improved post-operative recovery in patients with a multimodal pain management strategy that includes cryo-neuroblock, and believe that our devices are a preferred solution for managing post-operative pain. Looking forward in 2025, we are focused on continuing the launch of our new cryosphere probes, as well as developing evidence that further supports the economic value demonstrated by our pain management devices. We are also exploring additional use cases for cryoneurblock therapy, such as lower extremity amputations, which will expand our addressable market well beyond thoracotomy and sternotomy procedures. We look forward to sharing more insights into this at our Analyst and Investor Day as well.