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Atricure (ATRC)
NASDAQ:ATRC
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Atricure
(NASDAQ:ATRC)
65Neutral
Positive Factors
Market Expansion
Opportunity within its existing markets and significant expansion of its total addressable markets, growing to $10 billion from $5 billion.
Revenue Growth
The company's prospects for durable revenue growth accompanied by meaningful profitability improvement are strong.
Negative Factors
Revenue Forecast
The stock experienced a knee-jerk reaction to the revenue growth forecast being below expectations.
Revenue Target
The 2028E revenue target was below consensus.
Atricure (ATRC) vs. S&P 500 (SPY)
Market Cap
$1.67B
Dividend YieldN/A
Average Volume (3M)555.36K
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth16.55%
EPS Growth-44.89%
CountryUS
Employees1,300
SectorHealthcare
Sector Strength69
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.95
Shares Outstanding49,493,900
10 Day Avg. Volume441,168
30 Day Avg. Volume555,357
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.52
Price to Cash Flow (P/CF)70.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$52.22Price Target Upside56.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Atricure Business Overview & Revenue Model
Company DescriptionAtriCure, Inc. is a medical device company that develops, manufactures, and sells innovative technologies for the treatment of atrial fibrillation (Afib) and related conditions. The company operates primarily within the healthcare and medical devices sector, offering a range of products and services designed to improve the standard of care for patients with Afib. AtriCure is known for its surgical ablation systems and left atrial appendage management products, which are essential in the treatment of cardiac arrhythmias.
How the Company Makes MoneyAtriCure generates revenue through the sale of its medical devices and related products. The company's primary revenue streams are derived from its surgical ablation systems and left atrial appendage management products. These products are sold to hospitals, healthcare providers, and surgical centers across the globe. Additionally, AtriCure engages in partnerships with healthcare organizations and institutions to expand its market reach and enhance its product offerings. Revenue is heavily influenced by the adoption of its technologies in clinical settings, regulatory approvals, and the overall demand for advanced solutions in cardiac surgery.
Atricure Financial Statement Overview
Summary
Atricure shows strong revenue growth and a robust balance sheet with low leverage. Despite these strengths, the company faces ongoing profitability challenges, reflected in negative margins and returns. Improvements in operating and free cash flow highlight better cash management, though further efforts are needed to achieve sustainable profitability.Income Statement
Atricure has demonstrated consistent revenue growth, with a 16.5% increase in 2024 compared to 2023. However, the company is still facing profitability challenges, highlighted by negative EBIT and net income margins. Gross profit margin remains strong at approximately 74.7% in 2024, indicating effective cost management at the production level.65
Positive
Balance Sheet
The company maintains a solid equity position, with equity making up approximately 75.6% of total assets. The debt-to-equity ratio is low at 0.17, suggesting conservative leverage. Return on equity is negative due to net losses, indicating ongoing profitability challenges.70
Positive
Cash Flow
Atricure's cash flow from operations improved significantly, turning positive in 2024. Free cash flow also turned positive, reflecting better cash management. However, the free cash flow to net income ratio indicates ongoing challenges in translating accounting profits into cash.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 465.31M | 399.25M | 330.38M | 274.33M | 206.53M | Gross Profit |
| 347.52M | 300.37M | 245.94M | 205.86M | 149.31M | EBIT |
| -40.01M | -26.68M | -42.67M | -47.30M | -44.23M | EBITDA |
| -18.53M | -8.11M | -29.50M | -36.85M | -33.61M | Net Income Common Stockholders |
| -44.70M | -30.44M | -46.47M | 50.20M | -48.16M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 122.72M | 137.28M | 121.11M | 119.09M | 244.22M | Total Assets |
| 609.33M | 613.93M | 585.45M | 615.31M | 714.54M | Total Debt |
| 76.53M | 74.49M | 69.08M | 75.65M | 74.00M | Net Debt |
| -46.19M | -9.82M | 10.98M | 31.99M | 32.06M | Total Liabilities |
| 148.36M | 147.76M | 128.69M | 131.56M | 302.14M | Stockholders Equity |
| 460.97M | 466.17M | 456.75M | 483.76M | 412.39M |
| Cash Flow | Free Cash Flow | |||
| 12.20M | -37.51M | -39.02M | -23.53M | -25.13M | Operating Cash Flow |
| 12.20M | 4.48M | -22.14M | -13.78M | -19.87M | Investing Cash Flow |
| 30.23M | 21.82M | 44.01M | 23.50M | -156.20M | Financing Cash Flow |
| -3.60M | -32.00K | -7.06M | -7.64M | 189.39M |
Atricure Technical Analysis
Positive
33.40
Price Trends
34.96
Negative
35.30
Negative
31.50
Positive
Market Momentum
-0.58
Negative
53.12
Neutral
59.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATRC, the sentiment is Positive. The current price of 33.4 is above the 20-day moving average (MA) of 32.41, below the 50-day MA of 34.96, and above the 200-day MA of 31.50, indicating a neutral trend. The MACD of -0.58 indicates Negative momentum. The RSI at 53.12 is Neutral, neither overbought nor oversold. The STOCH value of 59.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATRC.
Atricure Risk Analysis
Atricure disclosed 39 risk factors in its most recent earnings report. Atricure reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Atricure Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.29B | ― | -1.14% | ― | 8.70% | 78.31% | |
65 Neutral | $1.67B | ― | -9.64% | ― | 16.55% | -44.89% | |
65 Neutral | $1.20B | ― | -12.08% | ― | 3.85% | -339.15% | |
61 Neutral | $1.46B | 118.99 | 1.03% | ― | -3.04% | ― | |
53 Neutral | $1.30B | ― | -0.44% | ― | 4.47% | -110.70% | |
51 Neutral | $5.32B | 3.32 | -40.25% | 2.90% | 17.93% | 2.14% | |
44 Neutral | $1.21B | ― | -16.71% | ― | -2.50% | -30760.27% |
* Healthcare Sector Average
Performance Comparison
ATRC
Atricure
33.40
10.23
44.15%
IART
Integra Lifesciences
16.81
-11.53
-40.68%
NEOG
Neogen
5.16
-6.98
-57.50%
OMCL
Omnicell
30.96
3.10
11.13%
PCRX
Pacira Pharmaceuticals
25.72
-0.61
-2.32%
CERT
Certara
14.17
-2.40
-14.48%
Atricure Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -21.15% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong year for AtriCure with significant revenue growth and improved profitability driven by new product launches and international expansion. However, challenges remain in the hybrid AF therapy segment in the U.S. and gross margin declines due to unfavorable mix. The outlook for 2025 is positive, with growth expected to continue, albeit with some pressures in specific segments.Highlights
Impressive Revenue Growth
AtriCure achieved revenue of $465 million in 2024, representing a 17% growth year-over-year, driven by strong performance in pain management, open appendage management, and open ablation franchises.
Increased Profitability
Full year adjusted EBITDA expanded from $19 million in 2023 to $31 million in 2024, showing a significant improvement in profitability.
Strong Performance in Pain Management
The pain management franchise grew 32% worldwide in 2024 and 43% in the fourth quarter, bolstered by new product launches like cryoSPHERE+ and cryoSPHERE MAX probe.
Successful Product Launches
Launches of EnCompass Clamp in Europe and AtriClip FLEX-Mini in the U.S. contributed to growth in respective segments, with positive feedback received.
International Revenue Growth
International revenue increased by 27.7% on a reported basis and 28.1% on a constant currency basis in Q4 2024, showcasing strong demand across major international markets.
Strong Financial Outlook for 2025
AtriCure reaffirmed its 2025 revenue guidance of $517 million to $527 million, with expected adjusted EBITDA to range from $42 million to $44 million, indicating continued growth and profitability.
Expansion into New Markets
Approval for AtriClip devices in China and expanded indications in CE-Mark countries position AtriCure for future growth in new geographic and clinical markets.
Lowlights
Pressure on Hybrid AF Therapy in the U.S.
Hybrid AF therapy faced pressure from PFA adoption in the U.S., with global hybrid franchise growing only 5% in 2024, tempered by 3% growth in the U.S.
Gross Margin Decline
Gross margin for 2024 was 74.7%, a decrease of 55 basis points from 2023, driven by less favorable product and geographic mix.
Increased R&D Expenses
Fourth quarter 2024 R&D expenses increased by 68.1%, driven by a $12 million payment for a PFA technology agreement and strong clinical trial enrollment.
Potential Downward Pressure in 2025
Guidance indicates potential declines in U.S. minimally invasive ablation and MIS appendage management revenue in 2025 due to ongoing market pressures.
Company Guidance
During AtriCure's Fourth Quarter and Full Year 2024 Earnings Conference Call, the company provided detailed guidance for 2025, projecting revenue between $517 million and $527 million, representing an 11% to 13% growth over 2024. The adjusted EBITDA is expected to increase significantly by nearly 40%, ranging from $42 million to $44 million. For 2024, AtriCure reported a revenue of $465 million, with a 17% growth, and expanded their adjusted EBITDA from $19 million in 2023 to $31 million in 2024. The call highlighted robust growth in various franchises, including a 32% increase in the pain management franchise and a 16% rise in the open franchise. The company also announced significant advancements, including new product launches and progress in clinical trials, with a focus on driving long-term growth and profitability.Atricure Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
AtriCure Highlights Growth and Innovation at Investor Day
Positive
Mar 26, 2025
On March 26, 2025, AtriCure, Inc. held its 2025 Investor Day at its headquarters in Mason, Ohio, which was also webcasted. The event highlighted the company’s strong market position and its commitment to innovation in treating Afib and post-surgical pain. AtriCure emphasized its significant market opportunity, with a focus on expanding its product portfolio and improving clinical guidelines and reimbursement access. The company has experienced consistent growth, serving over 500,000 patients, and continues to invest in research and development to drive future advancements.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.