AtriCure (ATRC) investor relations material

Recent performance and growth drivers

• Growth accelerated from 13.6% in Q1 to 17.1% in Q2, driven by new product launches like Cryosphere Max and AtriClip Flex Mini, which improved both pricing and volume.

• Continued adoption of the Encompass clamp has shifted growth in its segment from low double digits to mid-to-upper teens.

• New product launches in the US are expected to benefit gross margin long-term, despite international growth being a short-term headwind.

• Operational efficiency, especially in SG&A, is a focus, with conservative guidance for adjusted EBITDA.

Product innovation and market expansion

• Product innovation is expected to drive growth for five to seven years post-launch, with CryoMax, Flex Mini, and XT for pain management as key contributors.

• Market expansion is anticipated through clinical trials (BOX-NOAF and LEAPS), potentially tripling the addressable market in cardiac surgery.

• Pain management market could double or triple in size with new indications like sternotomy and extremity amputations.

• Less than 20% penetration in the US and less than 10% internationally for certain cardiac surgery applications, indicating significant growth potential.

Competitive landscape and differentiation

• Leadership in the clip market is maintained through continuous innovation, a robust safety record, and extensive clinical evidence.

• The LEAPS trial is expected to provide the only PMA-level product for stroke reduction in non-AFib patients, creating both offensive and defensive market advantages.

• A highly trained global team and a holistic approach to disease management differentiate from competitors.

• Competition is seen as validating and expanding the market, with both innovation and increased market awareness driving growth.