AtriCure, Inc. · NASDAQ:ATRC
AtriCure — Investor Presentation (May 2022)
33 slides from AtriCure's investor presentation, May 2022
Slide 1: AtriCure Investor Presentation
AtriCure Investor Presentation Creating a World Class Afib Platform © 2022 AtriCure, Inc. All rights reserved.
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation and oral statements made in connection with this presentation contain “forward-looking statements,” which are statements related to future events that by their nature address matters that are uncertain. Forward-looking statements address, among other thin
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement AtriCure’s condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, AtriCure provides certain non-GAAP financial measures as supplemental financial metrics in t
Slide 4: We are passionately focused on reducing the global Afib epidemic
We are Large Markets passionately Addressing an underserved and growing patient population focused on reducing the Strong Portfolio global Afib Existing products and solutions driving consistent growth epidemic and healing the lives Bright Future Novel therapies supported by growing body of clinical
Slide 5: Afib: a Serious Problem
Afib: a Serious Problem Atrial Fibrillation (Afib) is an irregular heartbeat (or arrhythmia) that affects more than 33 million people worldwide.1 Approximately 1.2 million Afib diagnoses annually in the US.2 1 in 4 adults over 40 will develop Afib in their lifetime.3 5x Risk of Stroke4 >5x Higher ri
Slide 6: Significant Global Market Opportunity
Significant Global Market Opportunity US market opportunity $3B+ annually International US Market Focus Market Focus • Continued build of • Penetration of large dedicated sales and markets first training expertise • Expand product • Clinical data availability supporting multiple label expansions • I
Slide 7: Two Distinct Patient Profiles
Two Distinct Patient Profiles Referring Physician: GP, Cardiologist STRUCTURAL HEART ISSUE NO STRUCTURAL ISSUE Surgery required – Afib corrected at Afib is primary concern same time (Valve, CABG) Medicine Intervention is better choice is effective GUIDELINES7 Surgical Ablation is RECOMMENDED Paroxys
Slide 8: US Market Opportunity $2B+ and growing
US Market Opportunity $350M $700-800M $2B+ and growing Pain Management Concomitant Open Standalone Hybrid Procedures Procedures Procedures (Ablation) (Ablation/LAAM) (Ablation/LAAM) Boosting Steady Growth in Expansive Growth from development Growth via penetration of of Standalone Afib Market Medici
Slide 9: AtriCure: A Decade of Progress
AtriCure: A Decade of Progress Differentiated portfolio of solutions built from continuous innovation and strong clinical evidence, supported by robust training and education. 2011 Impacting more than 300,000 patients worldwide. 2021 Isolator Synergy EPi-Sense® Ablation System • Maze IV Training Pro
Slide 10: 2022 Priorities: Driving Therapy Expansion
2022 Priorities: Driving Therapy Expansion Standalone Hybrid Procedures Pain Management Concomitant Train and Expand Open Procedures Hybrid AF Therapy: Grow Adoption by new and commercial team existing accounts Launch globally; continue Addition of LAAM to EnCompass awareness procedures Initiate Cla
Slide 11: CONVERGE: Long-standing Persistent Afib Patient Analysis
CONVERGE: Long-standing Persistent Afib Patient Analysis Freedom from AF/AFL/AT from 3-month blanking period through 12-months and 18-months 29% differential 35% differential ~78% improvement >100% improvement • Superior outcomes with hybrid Convergent procedure when compared to endocardial catheter
Slide 12: Benefits of the EPi-Sense System and Hybrid AF Therapy
Benefits of the EPi-Sense System and Hybrid AF Therapy Benefits based on 7-day continuous rhythm monitoring at 18-months post procedure Epicardial: Outside the heart 2 Endocardial: More than 2x Inside the heart AS EFFECTIVE AT TRIGGER AREAS TARGETED STOPPING AA where atrial fibrillation begins (vs e
Slide 13: Commercial Strategy for the EPi-Sense System
Commercial Strategy for the EPi-Sense System TARGET BUILD LEVERAGE EXPAND AMPLIFY Drive utilization Train and Add AtriClip to Grow commercial Spread awareness with existing and develop Hybrid AF + training teams, of Hybrid AF new sites programs, build Therapy broaden Therapy to referral channel inte
Slide 14: Innovative and Expanding Product Portfolio
Innovative and Expanding Product Portfolio ISOLATOR® cryoICE® cryoSPHERE® ISOLATOR SYNERGY EPI-SENSE® Ablation SYNERGY™ CLAMP CRYOABLATION PROBE DEVICE CRYOABLATION PROBE ENCOMPASS® CLAMP Continuous innovation toward less invasive, simpler to use, and more efficient products LAA ATRICLIP® ATRICLIP P
Slide 15: SPOTLIGHT: Cryo Nerve Block for Pain Management
SPOTLIGHT: Cryo Nerve Block A new way to freeze out post- for Pain Management operative pain: cryotherapy for temporary pain relief in thoracic Therapy Overview surgical procedures • Temporarily stops transmission of pain signals coming from the chest wall during surgery • Nerve “scaffolds” remain i
Slide 16: SPOTLIGHT: Isolator Synergy EnCompass Clamp
SPOTLIGHT: Isolator Synergy A simpler and faster approach EnCompass® Clamp to ablating the heart in open procedures HIGHLIGHTS • FDA 510(k) clearance in July 2021 • Limited initial release began 3Q 2021 Product Overview • Broad commercial launch in • FDA 510(k) clearance to ablate cardiac tissue dur
Slide 17: HEAL-IST Overview
HEAL-IST HEAL-IST Overview Clinical Trial IDE Trial to support safety and efficacy HIGHLIGHTS of hybrid sinus node sparing ablation procedure • Inappropriate Sinus Tachycardia for the treatment of IST (IST) is a chronic condition Using AtriCure ISOLATOR Synergy Ablation System characterized by eleva
Slide 18: LeAAPS Overview
Clinical Trial Left LeAAPS Overview Atrial IDE Trial to evaluate the effectiveness of prophylactic Appendage Exclusion for LAA exclusion for the prevention of ischemic stroke Prophylactic or systemic arterial embolism in cardiac surgery Stroke Reduction patients without pre-operative AF diagnosis Us
Slide 19: Key Investments Driving Growth
Key Investments Driving Growth AtriCure Pillars Aligning Expertise with Opportunity Foundation of our past and strengthening our future Dedicated commercial and education teams Innovation U.S. Cardiac 134 Sales and Clinical Specialists Increasing pipeline to drive LAAM penetration and build MIS mark
Slide 20: History of Strong Growth
History of Strong Growth 2022 Revenue Guidance Updated May 2022 Revenue ($ Millions) Accelerating Growth (16-20% YoY) $318-330M worldwide revenue 5-Year historical organic Revenue CAGR ~15% growth History of Consistent Revenue Growth pre-COVID19 5-Year historical organic revenue CAGRs: • U.S. AtriCl
Slide 21: First Quarter 2022 Financial Highlights
First Quarter 2022 Financial Highlights WORLDWIDE REVENUE* ($M) KEY METRICS* Q1 2021 Q1 2022 $74.6 $74.6 $73.2 2% GROSS MARGIN 75.1% 74.5% OPERATING EXPENSES ($60.4M) ($69.7M) 26% ADJUSTED EBITDA-S** ($4.7M) ($4.2M) $59.3 ADJ. LOSS PER SHARE** ($0.32) ($0.33) Q4 2021 Q1 2022 Q1 2021 Q1 2022 CASH & I
Slide 22: Change in Revenue Presentation
Change in Revenue Presentation Three Months Ended (in $000s) Summary of Changes March 31, June 30, September December 2021 2021 30, 2021 31, 2021 Presentation of revenue aligns with United States Revenue: current product line offerings. Open ablation $17,439 $19,503 $17,893 $17,561 Minimally invasiv
Slide 23: An Exciting Future Ahead
An Exciting Future Ahead COMPREHENSIVE PLATFORM OF THERAPIES for differentiated population of Afib patients Surgical Ablation || AtriClip ACCELERATING GROWTH IN EP LANDSCAPE LARIAT contribution Hybrid AF Therapy EXPANDING WITH PAIN MANAGEMENT Cryo Nerve Block 23 © 2022 AtriCure, Inc. All rights rese
Slide 24: Thank You!
Thank You! © 2022 AtriCure, Inc. All rights reserved. 24
Slide 25: Supplemental Information
Supplemental Information References for any comments, statistics, or figures in this presentation are available upon request. © 2022 AtriCure, Inc. All rights reserved. 25
Slide 26: Key Investment Rationale
Key Investment Rationale Large Markets • Approximately 33 million Atrial Fibrillation patients globally, with majority having Addressing an underserved advanced forms of the disease1 and growing patient population • Multibillion dollar annual market opportunity • Current standard of care for interve
Slide 27: COVID-19 Response
COVID-19 Response Positioning AtriCure for long-term growth Health & Safety Maintaining Operations Provide a safe work environment Deliver products and support for our employees to our customers • Enabling employees to work remotely; • Maintaining manufacturing, assembly, implemented hybrid workplan
Slide 28: US Concomitant Market Opportunity
US Concomitant Market Opportunity Estimated Afib Opportunity in Cardiac Surgery Annual Cardiac Surgeries13 300,000 • US annual cardiac surgery Pre-Operative Afib Rate11 ~28% volume steady over the past 5 years with shifts in Cardiac Opportunity – Pre-Op Afib 85,000 procedure types10 ASP Mix (Ablatio
Slide 29: US Standalone Market Opportunity
US Standalone Market Opportunity Estimated Standalone Afib Opportunity Market opportunity in analysis at Projected left considers: 2020 2025 • Addition of ablation and LAAM to Long-standing Persistent Afib Catheter Ablation17 25,000 45,000 existing catheter ablation ASP Mix (Ablation + Appendage Man
Slide 30: CONVERGE Overview
CONVERGE Overview HIGHLIGHTS SUPERIORITY TRIAL designed to support • Completed enrollment August 2018 FDA approval of the EPi-Sense device • Data released at virtual Heart Rhythm Achieved statistical superiority for primary endpoints Society (HRS) conference May 2020 STUDY DESIGN PRIMARY ENDPOINTS •
Slide 31: Hybrid AF Therapy: the Convergent Procedure
Hybrid AF Therapy: the Convergent Procedure 31 © 2022 AtriCure, Inc. All rights reserved.
Slide 32: The Cox-Maze IV Procedure
The Cox-Maze IV Procedure 32 © 2022 AtriCure, Inc. All rights reserved.
Slide 33: References and Abbreviations
References and Abbreviations Note Reference Key Abbreviations 1 Worldwide Epidemiology of Atrial Fibrillation: A Global Burden of Disease 2010 Study Afib or AF Atrial Fibrillation 2 The American Journal of Cardiology (2013), 112: 1142-1147 AA Atrial Arrythmia AAD Anti-Arrhythmic Drugs 3 Lifetime ris