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• Medtronic for surgical atrial fibrillation devices.
• Boston Scientific for surgical AFib tools.
• Johnson & Johnson for surgical atrial fibrillation and cardiac arrhythmia solutions.

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• AtriClip™ Left Atrial Appendage (LAA) Exclusion System: A portfolio of devices designed to exclude the left atrial appendage, a common source of blood clots in patients with atrial fibrillation.
• Isolator® Synergy™ Ablation System: An FDA-approved surgical device for ablating cardiac tissue to treat persistent atrial fibrillation.
• Epi-Sense® System: A platform for the treatment of cardiac arrhythmias via catheter-based ablation on the epicardial surface of the heart.
• CryoForm® and CryoICE® Cryoablation Probes: Surgical tools that use extreme cold to create lesions in cardiac tissue for arrhythmia treatment.

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AtriCure (ATRC) Major Customers

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• Medtronic plc (MDT)

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Michael H. Carrel, President and Chief Executive Officer

Mr. Carrel has served as President and Chief Executive Officer of AtriCure since November 2012. Prior to joining AtriCure, he was President and Chief Executive Officer of Vital Images, a publicly-traded medical imaging software company, which he led through a sale to Toshiba Medical Systems Corporation. Before Vital Images, Mr. Carrel was President and CEO of Zamba Corp., a publicly-traded technology company, and Chief Financial Officer of NextNet Wireless, Inc., both of which also had successful acquisition exits. He also serves as the Chairman of the Board for Axonics, Inc., a publicly traded medical device company that recently announced an agreement to be acquired by Boston Scientific.

Angela L. Wirick, Chief Financial Officer

Ms. Wirick was appointed Chief Financial Officer of AtriCure in August 2020. She joined the company in July 2014 and previously held the position of Vice President of Finance, where she was responsible for the global accounting and finance functions. Before her tenure at AtriCure, Ms. Wirick spent 12 years in managerial roles at Deloitte & Touche LLP and began her career at Arthur Andersen LLP, working with clients across various industries. She is a Certified Public Accountant.

Douglas J. Seith, Chief Operating Officer

Justin Noznesky, Chief Marketing and Strategy Officer

Karl Dahlquist, Chief Legal Officer

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The key risks to AtriCure's business (ATRC) include intense competition and technological advancements, delays in achieving profitability, and ongoing regulatory and reimbursement challenges.

1. Competition and Technological Advancements: AtriCure faces significant risk from the rapid and disruptive adoption of Pulsed Field Ablation (PFA) catheter technologies, which are less invasive than AtriCure's traditional surgical tools. This competition is a major concern for sustaining U.S. revenue and margins. While AtriCure is actively developing its own innovative products to mitigate this, the threat from alternative ablation technologies could challenge its core franchise.
2. Profitability Delays: AtriCure has historically been unprofitable and continues to project adjusted losses per share for the full year 2025. The company incurs significant expenses due to heavy investment in research and development and sales expansion, which contributes to its ongoing net losses.
3. Regulatory Hurdles and Reimbursement: As a medical device company, AtriCure's business is highly dependent on obtaining and maintaining regulatory clearances and approvals for its products from bodies like the FDA. Furthermore, the timing and ability to secure third-party payor reimbursement for procedures utilizing AtriCure's products are critical for market acceptance and financial success.

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The primary emerging threats for AtriCure stem from the continuous advancements and increasing adoption of less invasive, transcatheter-based therapies for atrial fibrillation (AFib) and left atrial appendage (LAA) management.

• Advancements in Transcatheter Left Atrial Appendage (LAA) Closure Devices: While AtriCure's AtriClip is a leading device for surgical LAA exclusion, the market for LAA management is increasingly shifting towards less invasive transcatheter solutions such as Boston Scientific's Watchman FLX and Abbott's Amplatzer Amulet. The ongoing development, expanding indications, and growing physician adoption of these transcatheter devices could reduce the demand for surgical LAA exclusion procedures, potentially eroding AtriCure's market share in this segment.
• Emergence of Pulsed Field Ablation (PFA) and Other Advanced Catheter Ablation Technologies: AtriCure offers solutions for surgical and hybrid AFib ablation. However, newer, highly effective, and potentially safer transcatheter ablation technologies like Pulsed Field Ablation (PFA) are rapidly gaining regulatory approvals and market adoption. Major players such as Boston Scientific (Farapulse) and Medtronic (PulseSelect) have recently launched PFA systems. If PFA proves to be significantly superior in terms of safety, efficacy, and procedure time compared to existing RF and cryoablation methods, it could establish a new standard of care for AFib ablation, potentially reducing the need for surgical or hybrid approaches that AtriCure specializes in. This represents a potential paradigm shift in AFib treatment away from more invasive options.

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AtriCure (ATRC) operates in several addressable markets for its main products and services:

• Surgical Atrial Fibrillation (AFib) Procedures: The global addressable market for surgical AFib procedures is estimated to be $1.5 billion, with the U.S. market specifically at $700 million.
• Convergent Hybrid AF Therapy: AtriCure estimates a global addressable market of over $4 billion for its Convergent Hybrid AF Therapy, which targets persistent and long-standing persistent AF patients.
• Left Atrial Appendage (LAA) Management: The global addressable market for Left Atrial Appendage (LAA) management is estimated to be $3 billion.
• Pain Management (Cryo Nerve Ablation Platform): The global addressable market for AtriCure's cryo nerve ablation platform for pain management is $2.5 billion.
• Total Atrial Fibrillation (AFib) Opportunity (including PFA): AtriCure anticipates a total global addressable market opportunity for AF, encompassing advancements like its EPi-Sense PFA System, to be over $20 billion.

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AtriCure (ATRC) is positioned for future revenue growth over the next two to three years, driven by several key factors:

1. Continued Success of Recently Launched Products and Product Innovation: AtriCure expects to see sustained revenue growth from the strong adoption and performance of recently launched products, including cryoSPHERE MAX, AtriClip FLEX Mini, and the EnCompass clamp. These devices are contributing significantly to growth in pain management, appendage management, and open ablation segments. Future contributions are also anticipated from new innovations like the cryoXT device for pain management.
2. Market Expansion Through Clinical Trials and Broader Indications: The company is actively pursuing market expansion through ongoing clinical trials such as LEAPS and BOX-NOAF. These trials are anticipated to substantially increase the addressable market for AtriCure's technologies, particularly for stroke prevention in non-AFib patients and within cardiac surgery applications. Additionally, new indications for pain management in procedures like sternotomy and extremity amputations are expected to significantly broaden the market for its pain management portfolio.
3. Increased Global Market Penetration and Adoption in Underpenetrated Markets: AtriCure plans to capitalize on low existing penetration rates in its target markets. The company notes that less than 20% of the U.S. market and less than 10% of international markets for certain cardiac surgery applications have been penetrated, indicating substantial room for increased adoption of its products. Continued expansion in both new and existing accounts, alongside strong international revenue growth, particularly in Europe and Asia Pacific, is expected to fuel overall revenue.
4. Operational Efficiencies and Margin Expansion: While not a direct driver of top-line revenue, AtriCure's focus on improving operational efficiencies and expanding profit margins is crucial for future growth. Analysts anticipate a shift to positive profit margins within the next three years, supported by a disciplined approach to managing SG&A and R&D expenses relative to revenue growth. This improved profitability and financial health will enable the company to further invest in research and development, new product initiatives, and market expansion efforts, indirectly contributing to sustained revenue growth.

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Share Repurchases

No significant share repurchases or authorized future share repurchases were identified during the last 3-5 years.

Share Issuance

• Net proceeds from the issuance of common stock in connection with stock option exercises and the employee stock purchase plan were $10.9 million in 2023.
• Net proceeds from the issuance of common stock were $11.4 million in 2022.
• Net proceeds from the issuance of common stock totaled $14.3 million in 2021.

Outbound Investments

• In 2021, AtriCure completed the acquisition of SentreHEART, Inc. for approximately $297.9 million, net of cash acquired, primarily to expand its left atrial appendage management offerings.
• AtriCure acquired specific assets related to the cryoSPHERE® Surgical Ablation System for $16.0 million in 2020.

Capital Expenditures

• Capital expenditures were approximately $17.3 million in 2023.
• Capital expenditures totaled approximately $12.3 million in 2022.
• Capital expenditures were approximately $10.1 million in 2021.
• The primary focus of capital expenditures includes investments in manufacturing capabilities, research and development facilities, and information technology infrastructure.