AtriCure, Inc. · NASDAQ:ATRC
AtriCure — Investor Presentation (November 2022)
34 slides from AtriCure's investor presentation, November 2022
Slide 1: Creating a World Class Afib Platform
Creating a World Class Afib Platform INVESTOR PRESENTATION NOVEMBER 2022 © 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: Large Markets, Strong Portfolio, Bright Future
We are Large Markets Addressing an underserved and passionately growing patient population focused on reducing the Strong Portfolio Existing products and solutions global Afib driving consistent growth epidemic and healing the lives Bright Future Novel therapies supported by of those affected growin
Slide 5: Afib: A Serious Problem
Afib: A Serious Problem Atrial Fibrillation (Afib) is an irregular heartbeat (or arrhythmia) that affects more than 37 million people worldwide. 1 8 Million 2 8 Million 3.5 Million 1 in 4 Adults People estimated to have long-standing People estimated to have Afib in the US2 Over 40 will develop Afib
Slide 6: Afib: A Serious Problem
Afib: A Serious Problem Afib is tied to 5x Higher Risk of Stroke5 higher risk of 46% stroke, heart failure, dementia, and Greater Risk of Mortality6 other health problems >5x Higher Risk of Heart Failure7 © 2022 AtriCure, Inc. All rights reserved. 6
Slide 7: Two Distinct Patient Profiles
Two Distinct Patient Profiles Referring Physician: GP, Cardiologist Structural Heart Issue No Structural Issue Surgery required (Valve, CABG) – Afib is primary concern Afib corrected at same time Medicine is Intervention is effective better choice Guidelines8 Catheter often first line of treatment S
Slide 8: Significant Global Market Opportunity
Significant Global Market Opportunity US Market International Market $3B+ ANNUAL OPPORTUNITY $2B+ ANNUAL OPPORTUNITY • Continued build of dedicated • Penetration of large markets sales and training expertise first • Clinical data supporting • Expand product availability multiple label expansions • I
Slide 9: US Market Opportunity
US Market Opportunity $350M $700-800M $2B+ and Growing Pain Management Procedures Concomitant Open Procedures Standalone Hybrid Procedures (Ablation) (Ablation/LAAM) (Ablation/LAAM) Novel, High Growth Steady Growth in Expansive Growth from Market Penetration of Development of Cardiac Surgery Market
Slide 10: AtriCure: A Decade of Progress
AtriCure: A Decade of Progress 2011 Impacting more than 300,000 patients worldwide. 2021 Isolator Synergy • Maze IV Training Program initiated; EPi-Sense® System Ablation System Advanced Ablation Courses endorsed approved by FDA for treatment by the Society of Thoracic Surgeons (STS) of long-standin
Slide 11: 2022 Priorities: Driving Therapy Expansion
2022 Priorities: Driving Therapy Expansion Concomitant Pain Standalone Open Procedures Management Hybrid Procedures Initiate clinical trial Grow commercial Train and Expand for LAAM in cardiac team and awareness Hybrid AF Therapy: surgery (LeAAPS) globally Adoption by new and Launch EnCompass existi
Slide 12: 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 100% 90% 29% differential 35% differential • Superior outcomes with hybrid Convergent ~78% improvement >100% improvement procedure when compared to endocardial
Slide 13: 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 Endocardial: MORE THAN 2x Inside the heart 2 AS EFFECTIVE AT TRIGGER AREAS TARGETED STOPPING AA where atrial fibrillation begins (vs e
Slide 14: Commercial Strategy for the EPi-Sense System
Commercial Strategy for the EPi-Sense System Target Build Leverage Expand Amplify Drive utilization Train and develop Add AtriClip to Grow commercial + Spread awareness with existing and programs, build Hybrid AF Therapy training teams, of Hybrid AF new sites referral channel broaden Therapy to pati
Slide 15: Innovative and Expanding Product Portfolio
Innovative and Expanding Product Portfolio ISOLATOR® SYNERGY™ cryoICE® CRYOABLATION EPI-SENSE® cryoSPHERE® CRYOABLATION ISOLATOR SYNERGY Ablation CLAMP PROBE DEVICE PROBE ENCOMPASS® CLAMP Continuous innovation to less invasive, simpler to use, and more efficient products LAA ATRICLIP® FLEX DEVICE AT
Slide 16: Spotlight: Cryo Nerve Block for Pain Management
Spotlight: Cryo Nerve Block for Pain Management A new way to freeze out post-operative pain: cryotherapy for temporary pain relief in thoracic surgical procedures Highlights Therapy Overview • Dedicated commercial team • Temporarily stops transmission of pain signals coming from the established (201
Slide 17: Spotlight: Isolator Synergy EnCompass Clamp
Spotlight: Isolator Synergy EnCompass® Clamp A simpler and faster approach to ablating the heart in open procedures Highlights Product Overview • FDA 510(k) clearance in July 2021 • FDA 510(k) clearance to ablate cardiac tissue during surgery • Broad commercial launch in U.S. • Designed with same be
Slide 18: HEAL-IST Overview
HEAL-IST Overview IDE Trial to support safety and efficacy CLINICAL TRIAL of hybrid sinus node sparing ablation procedure Highlights for the treatment of IST • Inappropriate Sinus Tachycardia (IST) is a chronic condition characterized by Using AtriCure ISOLATOR Synergy Ablation System elevated resti
Slide 19: LeAAPS Overview
LeAAPS Overview Le ft Atrial IDE Trial to evaluate the effectiveness of prophylactic LAA Appendage Exclusion for exclusion for the prevention of ischemic stroke or systemic arterial P rophylactic embolism in cardiac surgery patients without pre-operative AF S troke Reduction diagnosis CLINICAL TRIAL
Slide 20: Key Investments Driving Growth
Key Investments Driving Growth AtriCure Pillars Foundation of our past + Strengthening our future INNOVATION CLINICAL SCIENCE EDUCATION IncreasingBpipeline to B Hybrid AF Therapy proven B Significant investment in drive LAAM penetration by CONVERGE trial; physician education, providing and build MIS
Slide 21: History of Strong Growth
History of Strong Growth 2022 Revenue Guidance Updated November 2022 Revenue ($ Millions) Accelerating Growth (20-21% YoY) $328M-333M worldwide revenue 5-Year organic Revenue CAGR ~15% History of Consistent Revenue Growth 5-Year historical organic revenue CAGRs (pre-COVID-19) 32% U.S. AtriClip 11% U
Slide 22: Third Quarter 2022 Financial Highlights
Third Quarter 2022 Financial Highlights Worldwide Revenue* ($M) $84.5 Key Metrics* $83.2 $83.2 -2% 18% Q3 2021 Q3 2022 $70.5 GROSS MARGIN 74.1% 74.1% ADJUSTED EBITDA-S+ $0.7M ($0.7M) ADJ. LOSS PER SHARE+ ($0.23) ($0.27) CASH & INVESTMENTS $225M $174M Q2 2022 Q3 2022 Q3 2021 Q3 2022 • Strong activity
Slide 23: Exciting Future Ahead
Exciting Future Ahead Comprehensive Platform of Therapies for differentiated population of Afib patients Surgical Ablation + AtriClip Accelerating Growth in EP Landscape Hybrid AF Therapy Expanding With Pain Management Cryo Nerve Block © 2022 AtriCure, Inc. All rights reserved. 23
Slide 24: Thank You!
Thank You! © 2022 AtriCure, Inc. All rights reserved.
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.
Slide 26: Change in Revenue Presentation
Change in Revenue Presentation Three Months Ended (in $000s) March 31, June 30, September 30, December 31, 2021 2021 2021 2021 United States Revenue: Summary of Changes Open ablation $17,439 $19,503 $17,893 $17,561 Implemented Q1 2022 Minimally invasive ablation 8,385 9,702 9,990 11,303 Presentation
Slide 27: Key Investment Rationale
Key Investment Rationale Large Markets Strong Portfolio Bright Future Addressing an underserved and Existing products and solutions Novel therapies supported by growing patient population driving consistent growth growing body of clinical evidence • Approximately 37 million Atrial • Strong history o
Slide 28: 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; implemented • Maintaining manufacturing, assembly, fulfillment – h
Slide 29: US Concomitant Market Opportunity
US Concomitant Market Opportunity Estimated Afib Opportunity in Cardiac Surgery Annual Cardiac Surgeries14 300,000 Pre-Operative Afib Rate12 ~28% • US annual cardiac surgery volume Cardiac Opportunity – Pre-Op Afib 85,000 steady over the past 5 years with shifts in procedure types11 ASP Mix (Ablatio
Slide 30: US Standalone Market Opportunity
US Standalone Market Opportunity Estimated Standalone Afib Opportunity 2020 Projected 2025 Market opportunity Long-standing Persistent Afib Catheter Ablation17 25,000 45,000 in analysis at right considers: • Addition of ablation and LAAM to ASP Mix (Ablation + Appendage Management)15 $15,000 $15,000
Slide 31: CONVERGE Overview
CONVERGE Overview Highlights SUPERIORITY TRIAL designed to support FDA approval of the EPi-Sense device • Completed enrollment August 2018 • Data released at virtual Heart Rhythm Achieved statistical superiority for primary endpoints Society (HRS) conference May 2020 • PMA submission seeking approva
Slide 32: Hybrid AF Therapy: The Convergent Procedure
Hybrid AF Therapy: The Convergent Procedure © 2022 AtriCure, Inc. All rights reserved. 32
Slide 33: The Cox-Maze IV Procedure
The Cox-Maze IV Procedure © 2022 AtriCure, Inc. All rights reserved. 33
Slide 34: References and Abbreviations
References and Abbreviations Note Reference Key Abbreviations 1 European Heart Journal – Quality of Care and Clinical Outcomes (2021) 7, 574-582 doi: 10.1093/ehjqcco/qcaa061 Afib or AF Atrial Fibrillation 2 The American Journal of Cardiology (2013), 112: 1142-1147 AA Atrial Arrythmia Medical managem