AtriCure, Inc. Wells Fargo 21st Annual Healthcare Conference

Thank you for having us.

Yeah, I think it's easy to say both on top line and bottom line ahead of where we thought we would be relative to the LRP targets. I think first and foremost, we stepped back, we put the LRP targets out there. We wanted to get investors excited about numbers that we knew we could deliver, in line with our philosophy relative to guidance. I think what we've seen is more enhanced profitability, top-line trajectory that's pacing ahead of where we thought we would be. So feel really good about our progress relative to both of the LRP targets.

Yeah, I think two things really stick out to me relative to our LRP, and if you go back, we're talking early 2025. I think the progress on our clinical trials much better than we expected. You saw that in the LEAPS enrollment, completed enrollment in the middle of the year of 2025, and then shortly thereafter, we kicked off our BoxX procedure NO AF clinical trial, and that one is pacing. We thought about a 2-year timeline for enrollment. We're pacing a year ahead of plan. So two big clinical initiatives that we had pacing ahead of where we thought we would be on the LRP is fantastic. Profitability is the other one that really sticks out. Further ahead than we thought we would be, and what's cool is what I just said.

I'm super proud of the fact of where we're at on profitability, but we're also investing in big clinical drivers for the company, so making the same kind of investments that we thought we would to be long-term revenue drivers for our business. More challenging, I think hybrid, it's safe to say. That area of the business is in more pressure than we thought we would be under, so isn't performing where we thought we would be starting to see a recovery here. But in light of that, I also talked about top-line pacing ahead of our plan, so clearly other drivers within the business to offset that pressure.

Yeah, if you look at the 2028 to 2030, the growth rate that was implied in both of those two targets for revenue did assume that there was an uplift in revenue growth rate, so it did assume that you have positive trial results, and you would have at least a PMA on the initial BoxX procedure endpoint for postoperative Afib. I think what we're talking about now is those coming in a little bit, so likely to see a little bit more of that uplift sooner than we had anticipated. I think very logically, just given these are two big major trials for the company, logically would likely update our LRP at some point.

Yeah, the rationale for both LEAPS and BoxX-NoAF, we're a company that has been focused very much on cardiac surgery and treating Afib within those cardiac surgery patients, so a subset of cardiac surgery patients. Both of these trials say, look, whether the patient has Afib or not, there is something that you can do that is very meaningful for that patient, reduce their stroke risk, reduce postoperative Afib incurrence, even reduce clinical Afib. This is broadening a market that the company is really focused on and gives us a bigger opportunity to win within cardiac surgery.