AtriCure Inc (ATRC) Reports Strong Revenue Growth in Q4 and Full Year 2023
Q4 2023 Revenue: Increased by 21.0% year over year to $106.5 million.
Full Year 2023 Revenue: Grew by 20.8% to $399.2 million, with U.S. and International revenues up by 20.3% and 23.5%, respectively.
Net Loss Improvement: Full Year 2023 net loss improved by $16.0 million year over year.
Adjusted EBITDA: Positive $19.4 million for Full Year 2023, a $21.6 million improvement from the previous year.
2024 Financial Guidance: Projected revenue of approximately $459 million to $466 million, with adjusted EBITDA expected to be $26 million to $29 million.
On February 15, 2024, AtriCure Inc (NASDAQ:ATRC) released its 8-K filing, detailing its financial results for the fourth quarter and full year of 2023. The company, a leader in surgical treatments for atrial fibrillation and related conditions, reported a significant increase in worldwide revenue, marking a 21.0% rise in Q4 2023 compared to the same period in the previous year. Full-year revenue also saw a substantial increase, climbing to $399.2 million, a 20.8% year-over-year growth.
AtriCure's U.S. revenue for the full year reached $333.5 million, while international revenue grew to $65.7 million, reflecting robust growth across all franchises and major geographic regions. The company's net loss for the full year showed considerable improvement, decreasing by $16.0 million from the previous year. Additionally, AtriCure achieved a positive adjusted EBITDA of $19.4 million for the full year, a significant improvement from the prior year.
Financial Highlights and Operational Performance
The fourth quarter's gross profit stood at $79.8 million with a gross margin of 74.9%, showing an improvement of 94 basis points over the same quarter in the previous year. Despite an increase in loss from operations due to investments in clinical trials and product development, the company's adjusted EBITDA remained positive at $4.8 million for Q4 2023. The basic and diluted net loss per share was $0.21 for the same period.
AtriCure's President and CEO, Michael Carrel, commented on the results, emphasizing the company's progress towards sustained profitability and its focus on innovation and clinical science. He stated,
Our 2023 results showcase the broad-based expansion of our many growth drivers, balanced by disciplined investments as we make progress towards sustained profitability."
For the full year 2023, AtriCure's gross profit increased to $300.4 million, with a gross margin of 75.2%. The loss from operations saw a reduction, and the basic and diluted net loss per share decreased to $0.66. Looking ahead, the company has provided a positive financial outlook for 2024, with projected revenue growth and an expected increase in adjusted EBITDA.
2024 Outlook and Investor Relations
AtriCure has set its full-year 2024 revenue guidance to be in the range of approximately $459 million to $466 million, which would represent a growth of about 15% to 17% over the full year 2023. The company also anticipates a significant increase in adjusted EBITDA for 2024, projecting it to be between $26 million and $29 million.
Investors and interested parties were invited to join a conference call hosted by AtriCure on February 15, 2024, to discuss the financial results in detail. A replay of the presentation will be available for 90 days following the event.
AtriCure remains committed to advancing its mission of providing innovative technologies for the treatment of atrial fibrillation and related conditions, with over one million patients treated to date. The company's strategic focus on expanding its product offerings and market penetration is evident in its strong financial performance and optimistic outlook for the coming year.
Financial Tables and Non-GAAP Measures
The company's financial statements, including condensed consolidated statements of operations and balance sheets, provide a detailed breakdown of its financial position. AtriCure also provides non-GAAP financial measures, such as constant currency revenue, adjusted EBITDA, and adjusted loss per share, to offer additional insights into its performance. These measures are reconciled to the most comparable GAAP financial measures in the tables provided in the earnings release.
AtriCure's use of non-GAAP financial measures helps to understand the company's underlying financial performance and trends. However, these non-GAAP measures should not be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
For more information on AtriCure's financial results and reconciliations of non-GAAP measures, investors and analysts can access the full 8-K filing.
Explore the complete 8-K earnings release (here) from AtriCure Inc for further details.
This article first appeared on GuruFocus.
