TCMD - Earnings call transcript Q3 2017 | Tactile Systems Technology, Inc.

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Operator

Good afternoon. Ladies and gentlemen, welcome to the Third Quarter 2017 Earnings Conference Call for Tactile Medical. At this time, all participants have been placed in a listen-only mode. At the end of the company's prepared remarks we will conduct a question-and-answer session. Please note that this conference call is being recorded and that the recording will be available on the company's website for replay shortly.

the would to remind contain and your that based I remarks that forward-looking uncertainties begin, management are responses of and questions on that we could like inherent everyone to our statements and cause Before involve expectations risks well current today those Exchange filed our our results Annual most as actual including Report differ Commission, with Risk filing. the on from materially in to XX-K the recent and Securities Factors as indicated, Form XX-Q recent those identified Section most may of may Such in are the updated available factors filings which be time from time SEC, our to on website. our with to result We obligation publicly undertake a or statements of revise no future our information, as otherwise. forward-looking new update or events certain to financial generally references include measures accordance are calculated also will accounting call accepted not with or in principles GAAP. that This generally to measures. We as financial these refer non-GAAP to non-GAAP Relations in presented GAAP accordance those with financial of release Reconciliations the most press measures and calculated website. comparable in of our earnings on available measures, are the the portion Investor I turn the to Mr. to now like call over would Medical's Executive Officer. Mattys, Tactile Jerry Chief sir. ahead, go Please

Gerald Mattys

Hello, XXXX. operator. today's joined welcome Thanks by call our Lynn call Officer, Chief Blake. I'm our Financial on quarter third everyone for the earnings and of to

X-K me Form release which for our is is is release let on to caused the The filed earnings inconvenience available being by First apologize the press wires. late as posted out our sec.gov. there

you nine I'll the our and in outline the primary this First some for progress our financial updated of of we revenue third me will and financial Plus release evening. for summarizing highlight let XXXX our by detail by of new growth in of our on these results Neck to each recent quarter and subjects achievements have press review begin update discuss strong cover Head third of with the you which respect guidance quick a quarter our our periods. our performance the evening. drivers first I'll then quarter Flexitouch earnings with intend than Flexitouch reviewing we Systems. on call provide during the we months performance Lynn products, to made financial the operational and this and our third and in XXXX

sharing Lastly will questions. on the remainder comments by before conclude call your for some opening our additional I of expectations the year, to the

Now let's during XXXX, year. to results. in I review report quarter achieve our we to started get nine year-over-year XX% continued with the the am the in of third pleased that strong growth revenue months first of performance culminating

year-over-year. reported representing quarter of third we XXXX million, the of XX% $XX.X revenue specifically, For growth

Our third The quarter year-over-year increased performance to from moment $XX.X business revenue growth during XX% million. our a which impressive to Flexitouch prior was shared drivers long-term growth you with driven the of quarter we saw in which to in our by benefit Flexitouch we strong take the quarters third that now by continued sales Systems, discuss. I'll

a Flexitouch to been in organization while therapy. over lymphedema on of access awareness improving For patient facilitating our marketplace, focused our decade, the advanced has

primary three strategic efforts recent in growth our business years fueled of Our focus Flexitouch of in resulted that drivers, pursuit in this in have has the XXXX.

invested several First, last years. direct the have teams reimbursement we over the of sales rapid expansion and in our

base us clinicians of our one and directly the market. to sales by competitive allowed direct Our relationships the approach of patients. primary It expand with products forging rapidly is advantages has homecare organization customer in our

on This target represent to organization continues target clinicians our a our identify we reimbursement engaging improve and claims and of of new United introduced clinicians by data in the subset enormous the direct Second, reps in remain XXXX sales highest them. number productivity the opportunity diagnose with lymphedema to that focused force sales of an to our patients using strategy States. for

been our has commercial group contracted relations as coverage in-network expanding in payers provider. Third, with our an successful payer

Our productivity beginning teams. patient the XXXX the lives as our include more of and coverage of driven tailwinds, lymphedema primary impact into XXX further million of to these Along three segment growth improving has enhancing was of and Veterans' sales access strong grown quarter third Flexitouch potential very to of than with the by reimbursement and Administration the in collective network also our market. products sales the our

segment. VA that the benefited has penetrating are several important resources in in of XXXX specialized performance this focused addition from on the Our market

quarter of sales of recall in beginning XXXX. the second our to quarter, force the our Actitouch of at instituted third Systems to Turning Entre changes the that we plan and sales compensation

see of demand these million. of the growth our force sales focus in sales System sales $X.X Entre which We Flexitouch year-over-year our see Systems, more increased and were offsetting sales Entre third focus We market drive increasing the than also to continue Actitouch. XX% Flexitouch. our which Together further driving decreased reps in by to sales, from on Flexitouch our quarter, and strong influence sales Actitouch pleased for our to dynamics help System

As we call, impact second expect performance Entre Actitouch continue balance dynamic to and year. our our over to we communicated sales the on quarter this of the

revenue Lastly, margins, the we our third total in our year-over-year saw to growth increased to in gross approximately quarter, in XX%. which improvement addition strong

XX% EBITDA million. We also $X.X grew to our year-over-year adjusted

had operational the number Turning third progress, notable to our during a of an quarter. update on accomplishments we

progressing and continue announced On feedback the as product is patient from our we our to commercial of customers and positive from Flexitouch Neck our of we mid-May. that and Head Flexitouch launch sales the in product as Neck as commercialization anticipated well recall receive team. Head front, new The field

allows we our of collective announced Plus force report our number important in product to which programs, Flexitouch our customized selling the the current distraction by of allows our potential of are two patient the into third sales redesigned of for display system, that next FDA our am enhance of times Flexitouch I and overall our remains Flexitouch patients. happy VA, points, we reminder for and to long-term quarter lymphedema distraction. and launch during the on limit a feedback pipeline, we system's this system in for clearance Plus customers. and use These we treat Neck improve inspired and Neck put Plus to ease garments that time. meaningful enhancements over a our interactive to take June. is to the product Flexitouch the of expect a controller include As our Likewise, the to features during established saw generation pattern that patients again features quarter XXX(k) growth become track preset on experience XXXX. of limbs expect on the are usual clinics modified at contributor will minimal and the call Flexitouch third call Head Head two Flexitouch therapy profile. our we still our and creation first were that color the focused easier of a enhancements an user Collectively, same and these off, that and reduce treatment to from

development to third progress addition products, achieved a have our the the In we to to important team new with commercial that during we product our additions quarter. respect and made number of also

of in Dr. Thomas Chief quarter discussed on appointed call, Jr. position July we As the O'Donnell, Medical to second I Officer. in our detail

has a Dr. Scientific Thomas As of years. Board, O'Donnell valuable the source Chair former Advisory been of for insight our

organization. leadership where to our contributor an even We team more the he will are integral become excited our to progress to senior welcome of future him

training Personalized company our Solutions. she Johnson segments Board Prior joins Director for We was appointment Pegus. to the of Lead these and NYU with strategic Dr. Medical Cheryl National also for highly expertise In Johnson Medicine in announced the Board Dr. as SymCare Pegus strengthened an background Aetna. our industry. a both individuals, will qualified of and of public Clinical cardiologist our of Chief health, Wallgreens, academic Pegus August Medical Health Dr. Population A whose called a many impressive Among two Clinical and Directors Health in Langone with medical career for Officer in a appointment served we of currently Center. and Masters commercial highlights, benefit Professor she Product at Medical her & background startup direction. the the by roles, with

many was retirement, listed the Ray Until to COO industry We homecare Ray's U.S. with. decade come. a Chief within Tactile Prior with company, years at already for for the which familiar experience a products the Inogen, for similar insight Huggenberger and ours, forward to in Their circumventing strategy almost look to a also Mr. in the setting. time leadership manufacturer Medical, his and on Board nearly Obviously, Medical will Inogen, device and incredibly his of manufactures to call use a and growing distributor. years designed equipment and appointed business sell applicable unique in to within recent served sells the President channel. channel. to to Mr. DME September, another is Executive medical the We commercial patient, Officer durable company who Sunrise Huggenberger device distributor today's of the be commercializing President to Huggenberger to Mr. experience valuable XX directly DME Medical strategy as his and may be leveraging Huggenberger's our medical DME in

offering. all welcome offering successful and This our the quarter who for secondary like the investors Securities We shareholders. review of detail. I'll by their the and thank would third first and consisted follow-on the book Jaffray With support the by results of Cannacord our William of of Blair, announced will entirely turn new to Piper in we in greater Genuity call Lynn? Medical pricing and who that, Tactile offering XX, September co-managed was on Lynn Blake, Lastly, Guggenheim over participated shares. run to financial

Lynn Blake

million Thanks the $X.X Jerry. third to for total year-over-year Medical's increased $XX.X XX% Tactile million. quarter revenue or

and or as by expansion which of as revenue Flexitouch primarily earlier, the increased the $XX.X and drivers sales was and coverage increased contractual national driven force, to XX% the by Flexitouch treatment physician growth increased payers. awareness $X.X year-over-year was Our driven patient our performance million condition the The with options lymphedema million. along Jerry regional sales sales described Systems, insurance of well of of

by million Systems, increased region, revenue impact the XXXX and to sales was and presence million third of third associated year-over-year third $X.X our of in to offset in our Medical $XX.X $X.X a Flexitouch growth quarter the accounted quarter. million. not XX% decreased with of to quarter Tactile Entre does the have profit third quarter growth revenue XX% or XXXX. year-over-year compared Actitouch While year-over-year in sales the our did Flexitouch XX% which the the significant Gulf materially hurricanes XX% $X.X Gross revenue the of disruption the or partially of in in million quarter Houston in The for XXXX. Coast of

revenue. margin of to gross increased XX.X% rate Our points XXX year-over-year basis

and sales increased the total administrative margin expense quarter largely of personnel the of and the costs discrete approximately accruals $XX,XXX expenses. third expense based sales prior increased an significant $XXX,XXX as expense XXXX. the a XXXX was of quarter. in to was primarily on of use recorded sales Reimbursement items this as the gross third Flexitouch expenses marketing to year-over-year in and $X.X million hired with increased tax compared [ph] compensation XX% increased reflects field income with as income from increased secondary exposure. equity or and period expenses expenses million an expense, driven in increased expenses. million $XXX,XXX million increased related expansion investment reimbursement due commissions to The the $X.X sales and in of year. quarter year or represented expenses quarter XX% September expenses Operating costs, result The tax and The benefit by of to year-over-year increased the associated benefit and quarter sales mix, in $X.X offering, prior for a associated year-over-year tax and activity Sales company increase of our XX% $XX.X compared third to primarily by in resulting of level Operating increased tax increased sales or of performance quarter to tax of as related current by third income We stock team, by administrative larger due marketing public to variable well a general year-over-year, XXXX marketing operating headcount third $X.X selling general the product or XXXX. including favorable million. of XX% share deductible the continued impact award

increased by to $X.X year-over-year EBITDA or adjusted quarter XX% Third million. $XXX,XXX

impacted or $X.XX adjusted XXX% share to diluted year the shareholders preferred preferred our As included convertible prior the allocation earnings last were these year the a net GAAP of $XXX,XXX accrual stockholders related income of million. of a structure for undistributed average EBITDA attributable Weighted Net per diluted third and share to and for $X.XX was attributable as we've stockholders diluted items XX.X of in net provided private shares million year. $XXX,XXX. reminder per neither $X.X XXXX of XXXX our income income period current or to used income compared respectively. reconciliation Net of XX press as the earnings to Net common per $X.X $XXX,XXX were income to in today's year-over-year million quarters common of of compute and increased third well dividend million to in Both net last income company $XXX,XXX earnings period. to to the quarter release. year share or the capital

earnings discussion release our turn afternoon. to guidance, a in now of we XXXX revenue Let this our which me updated

million now XX% a of expect $XXX revenue in XX% compares $XXX to prior revenue the compared $XXX year-over-year, to fiscal $XXX For of in we revenue XXXX. million This December which million, million. year to XXXX represents range guidance to million of our $XX.X the revised of to range XX, ending outlook growth

does revenue hurricanes. September and guidance update with the contemplate August fourth impact Our associated quarter

difficult to the range the fourth in impact quarter estimate revenue While of million. $X $XXX,XXX still be to to expect we

expect Lastly, stock and which million the in for we high Flexitouch rate margin of approximately growth expense low-XXs the full adjusted digits includes the margin year-over-year. also single $X year Gross for EBITDA XX% remain to of to in year. compensation XX% XXXX revenue

[ph] XXXX million that, With share closing back expect additional also to Gerry turn the XX shares. to year count We approximate remarks. average call weighted I'll for some the Gerry? for full our

Gerald Mattys

Thank you, Lynn.

to-date. revenue for we As our increasing achieved Lynn to the are year this stated, guidance again that account performance we've

how a remainder our anticipate guidance resulting additional from the is XXXX a take Lynn of some provide the the color minute like affected fourth the to does implications to I'd impact business to As hurricanes for our hurricanes. on mentioned, recent $X $XXX,XXX the quarter. by for and million

and experienced strong potential the by the Systems we impacted and caused the Flexitouch hurricanes. practitioners sales Gulf region disruption during Coast the of Houston quarter, in our While Clinics, all third were by patients

situation. products progress the today of months were to patients a remained of conclude country quarter. focused specifically, sales by driving any represent impacted and and online, their More nine regions potential I'm our that Flexitouch my fourth coming lives, on continue and of impact repairing result remains this consistent organization adoption generated the with potential to property payers. first resonating and awareness providers this the of the has less team's restoring order these made which organization performance clinically remarks rapid of distractions to reps new back the opportunities estimates outcomes, as the in focused performance. the System over replenish their that fourth for With this front daily our the with in nine possible As patients our and damaged range sales on ability marketplace. our pipeline of I'm on proud months to today we successful still we've fluid emphasizing to for first extent XXXX. a of of I'd disruption, in of growth reaching is The our and like our validated provided relatively the Hence quarter to demonstrated on full over clinics we the pleased patients', our assess that hurricanes the overcome

all commitment for to Medical. and our strong revenue our its time open to dedication we'll Tactile evening. capitalize will tailwinds As employees a long-term XXXX mission, our the performance and and this their a organization QX, bring of typically our for their that the the of in like on thank on for have questions. to call represents That year call contributed and everyone remarks quarter from now for we our prepared a tonight's concludes Operator, close. standpoint, to the year in interest to continue I'd as we to largest enter reminder, which multiple

Operator

[Operator Jaffray. from from Piper will you. Matthew Instructions] Thank First come question O'Brien

line open. Your is

Matthew O'Brien

afternoon. good you so thank much Great, and

drivers claims surgeons it that be was I on of in you saw performance bigger these talked Gerry, for the led existing this on about we for a can just some just data were that's kind new QX, maybe factors of a little bit Just that strong more centers Flexitouch will there, starters, that of patients focus more in? at to that -- during helpful, just driving think number you potential starters.

Gerald Mattys

Matt, the was to Thanks primarily would welcome third field by execution. the call. really Sure. say I and driven that quarter

last were ability and for we growth to in really identified a that So we has generated the leads diagnosing helped as on be pool, of to long-term some clinicians, high our from primary our greatly follow the expect data where well. driver the us our up quarter,

second I Administration in resources add the last VA XXXX, for right to were dramatically VA group, we're Remember, we specialized to And the important XX% success in nine call driver the is mean, Veterans of QX. some are focused in VA their point. this dedicated now. our fully saw beginning piece we able has throughout organization is team over to of big been to half think certainly continue continuation I and second of the on productivity up I certainly our were improving a think the in that period that in the that's year, deployed last sales trend sales added months. a It's very channel. that up Sales

So, to year, clinicians we now more day. field patients adding on calling reached and the have reps XXX and this over XX% our objective reps of every

Matthew O'Brien

do guidance, a the plus and one next be margin bigger of contribution impact is about you're next new XXXX? or on and we as next products of going way Head year, gross Neck and of that think out that strong. quite Flexitouch Will Lynn you've in you. the That's -- how in in much very the helpful, Flexitouch necessarily the year on XXXX, head Plus, those Plus we on the kind was quarter couple products rolling thank any then a then have but metric, And not

Gerald Mattys

start So planning annual midst commentary, of I'll our We're in Matt. process. currently XXXX with the

any giving quarter our really guidance today. growth not that We we're fourth So for of call. reserve form

I to grower. continue to think plus a of think you it's for us as right XX%

investing in in plan growth teams, the continue continue supports future. the We to company reimbursement and and invest our sales and of the to that

impact, going of we're expect going in as next our quarter for the and reserve to specific time. formal well Head at call. I think, the year, again, it but So And terms the we think we in Neck a could certainly contributor will be is this fourth as point commentary

Lynn Blake

don't to I just correct Neck you address given gross and the are we we those going have the a that on and won't XXXX. in product reimbursement margin, margin on is of was yet gross your headwind and garments for bit Head question

However, still gross for year, target business. organic on next a the of we're XX% margin looking plus at

Matthew O'Brien

quick, that's you year, And XXXX? to a real with even about in just to next Gerry, XX% grower have difficult clear, in just here as think Okay. you're comp that yourself be a very going

Gerald Mattys

It is.

Matthew O'Brien

Great, thank you.

Operator

Our Blair. Margaret Kaczor comes next from from William question

line Your open. is

Margaret Kaczor

afternoon question. good thanks for the guys, Hey, taking

reps comp little talked and first surrounds bit The question me seen sales the this you and have you year. a changes about for structure,

so focus clarity -- in any I -- don't what's us docs the that reps on 'XX XXXX on per any if give then became give it guidance and be to guys physicians or commentary rep on the these the how and five are us if could, XX, would You helpful? you of in many you it want 'XX? targeting. you more talked is to Can that some as high XXXX or And about color docs just that know diagnosing I 'XX, relates

Gerald Mattys

list, sales on about in revealed pool that second have year, that clinicians repeated up The throughout we we is started and really up initial million midpoint that the But list also that of of happened, deciles of that So XXXX of that last of we actually, it pool diagnosed the data in calling gave in of force those list saw so we year new dramatically data list clinicians the diagnosis that over did far. the terms now quarter that up -- remember, the a high lymphedema on cases, clinicians. clinicians. an least year patients period -- identified that were lymphedema diagnosing update it may did of high at awareness the deciles; pool as thus of XX% list We number one we into had number the moved things was a diagnosing you a that an picked XXXX. one, that top diagnosing on saw end the secondly and us and increasing not high diagnosed the of last in over our number data high and number of know great XXXX pretty news three of diagnosing at period. In two that

not So we we and know X,XXX that pool. did us new added clinicians July don't that of at the end data them know about

we to to yet and the that a to reaching get as prescribe see we tend but mentioned times work as of I of got they So two have a as past to calls well number typically have being in converted product one this out of we able prescriber our flipped three on diagnose, accounts. accounts are to them when do

very So point call for us. a lucrative

Margaret Kaczor

the out are it But focus, is sales little bit of so comp into were rolling rep a a you that -- 'XX, larger -- now as it you become more as that out piece going we are well? trailing has broadly 'XX look and and you

Gerald Mattys

those these diagnosing I they to numbers say VA they group. up but these from representatives been I has numbers We certainly so dramatically. XXXX after VA devices sales, that have major a going focus pretty on would migrate are have tend in our team sales think high management that accounts channel. that themselves. And clinicians focused toward once of field benefit the of higher coming the sees

in up year-over-year. the XX% third are quarter sales think the VA to I

call So our productivity specific in dramatic improvement just a those in points.

two the them we XXXX between So and of well XXXX. think in are continue success our driving they the of into ones most will

Margaret Kaczor

And helpful. and should rep guidance are be then incorporated productivity, neck assume talk about is we you impacting in in in QX? at quarter on that it, that this how the the side, all were Got that past you head may and sales seeing

Gerald Mattys

Yes really that's a good point.

me let We product of refresh kind launched So just this in commercially and step back mid-May. everyone.

So that commercial launch. was our full

well, progressing it's So early. it's

have the current organization been the and In focus We potential that able where and QX on forewarned our disruption distraction clinics two points lymphedema QX. we at kind patients these field limited not call the to that meaningful end was up, it has are in which And expected might or VA. all. happen of

there on So potential call continuing but frankly calling off not sales to organization path start is QX, see expect in are have that -- for we points. QX don't in wander so distraction other the we little busy, and they was and distraction to we'll our going time

that gave. optimistic it have very built guidance feel just we the So we we into

Margaret Kaczor

Great, thanks guys.

Operator

from line of comes question next Jason Your the Mill.

Your line is open.

Cecilia Furlong

see this on the expect on in some your to actually of And launch term? full on potential dynamics do in from launch Flexitouch some Furlong could prescribing out current Hi, wondering, just and Flexitouch ahead just provide the more the color sales the you hold Flexitouch you coming for first Jason. I around up Cecilia the was and impact market is near

Gerald Mattys

good Really hi. question, Cecilia,

is a sales a the we attributes thereafter. national to We're in because replacement track, our release, of it's launch a We platform our on were shortly have it current the Flexitouch first have on Plus in and launch big don't we limited market seeing launch which we and organization the too at to uptick frankly still the to meeting teach original going field of backed sales sales because our didn't before about plan to early away it. the in Flexitouch really the from anticipate actually ready the the want its product, for launch So bit many products quarter. is

to launch see anticipate of customer the of this don't are see out and are our track on much a quarter. we going in and So base, wait to first still we attitude we

Cecilia Furlong

And how this and Flexitouch second what physician just targeting neck and Okay, type question, great. about launch sales impact high limited as just has has had you just rep trended since you talk focused well Plus began level of could my as then in for initiative, a launch? at the your the head productivity

Gerald Mattys

perspective, would pretty I we to year. this dramatic see expectations is Flexitouch unit say which a to from So continue productivity compared into growth our coming

So months through in for a has VA same revenue month increase nine year the fastest particular Commercial big nine -- in the XX% Flexitouch. been period that last very the category. of The been Flexitouch grower have strong. compared to sales

seen because the drop Flexitouch in at have actually that We XXXX. that our out LCV Medicare population end came of the of

say So I would up overall gone Flexitouch productivity has pretty dramatically.

the other Actitouch. Entre We have that products, seen some with the to offset

a the Neck system on allow in far we're Head capitalize on of of hasn't certainly to field the marketplace the for without the be have are say the I strong for are impact had organization that so two and less a really would them points of a seeing already focus We the call and a uptick demand calling Flexitouch that to had in we negative because productivity impact just of loss we big of in productivity. primary product in, XXXX, terms our

fully we think up are sales nicely we for with now are and XXXX. I very a that and set in the over the overall reps field very QX fact deployed pleased XXX So

Cecilia Furlong

on congrats you quarter. another strong and Great, thank

Gerald Mattys

you. Thank

Operator

of the from question next [Operator Chris Guggenheim. Instructions] comes from Pasquale Our line

line Your open. is

Christopher Pasquale

Thanks, productivity a a does curve it territory? take quarter. congrats mentioned climb on guys the Gerry nice that undertaken, you to typically mature for a significant how a you a sales consider long rep would force have expansion you to level

Gerald Mattys

XXX position an field, organization field two a are levels, a those call product we two of between bifurcated the we associate. specialist, mix reps a call and that the more in categories. senior position, kind junior Of about Our more into now a is it's XX-XX

is who productivity, be we couple For And we they how working person sales a about product sales year up how sales maybe about to for million specialist come productivity associate. a X.X of to to in more junior the that take full expect about They organization. a the experienced twelve months. the tends combined from or years a report, associate, so revenue

productivity five sales associate. that specialist experience, of their Now six experience. longer comes typically to come the us with of an lot to to more little is product MedTech full twice years They take typically productivity full a to of a but

to per So a productivity about XX of product million expectation $X XX at to months specialist. reach full

Christopher Pasquale

of headcount next That's over the helpful. further more year from leverage? And versus additional how in investment do here driving the you pace think maybe operating about

Gerald Mattys

Remember, the productivity out So as growth patients. being rapid we the organization And XXX there without with we've got more this on we and who pace Lymphedema. and bring reach we talked shown Chris, organization not at of all about can there we've is much. are folks this see disrupting could diagnosing sales. going the field about a forward, sales a certainly these million of We've their size a still pretty company double XX% patients too we think XX% ourselves adding diagnosed our company literally, to

about years how few we'd it. that's So like the kind of and to we next keep that's pace think the over

Christopher Pasquale

Thanks.

Operator

from Kalia from Instructions] comes [Operator Suraj Securities. Our Northland question next

line is Your open.

Suraj Kalia

everyone. Thank you questions. my for afternoon Good taking

years, something just the you raps, toggling I targeting you this. a are or market The curious put Lynn love A, the why please guess all top sales you So witnessing to is are that to few I that mentioned you limit increase you and for in correlation. growth line. in constraints of that XX understand to next to I have about Gerry X is productivity. one some all understand color additional and forgive delta by XX%, trying I if not you? and all some I driven calls mentioned maybe primarily disrupt limit I'm XX% sales in-between plus rep it get on get there. is would the one would what what I'm would me

Gerald Mattys

bring to an up people in new we like see them what to organization bringing balance, the have the think to the on disrupting I Suraj is So from flocks the of terms in increase speed. that sales

to as year to sales potential associates been can all them product they territories adding grown they've give in patients the help organization reach. the that of way Our the has over the typical higher reaching their specialists for past

to may and many of the that found senior the too quickly person to will or So that quickly if go had of too we if try by supervisor if gives person that associates. little those of specialist we of in you before terms responsibility on the too product -- that of bringing not a productivity we being can disrupt we go

pace. them, company recruit we XX% reach pace So can go up have the for bring but speed, we think get can we've timeframes right we we trained on the can we that faster? that's year, and demonstrated that their those them to can expected Could bring we at can within we them about a forward. productivity them Possibly, going

Suraj Kalia

Lynn specific from Neck the you mention And and did and the Flexitouch in VA all contribution Head quarter the portion?

Lynn Blake

increased year-over-year. Not significantly VA, but tell Gerry specifically, Suraj, you I as mentioned the can

of of our revenue a year-to-date. new percentage is a XX% third on revenue of which quarter total XX% high year-to-date It's as basis. actually revenue a about VA our The was

been part there. the launch said and second quarter. haven't of growth we Head But just that about Jerry nice very full neck specific was as commercial towards later contribution. again So as

rollout productivity it's the again to we're volume ramping not disrupt So but as well metering the force. of the the sales

contributor top not line. yet it's overall a the to meaningful So

Suraj Kalia

of XX% your you had one Jerry, additional the And okay, Any just us growth, how high see, to guess provide XXX. a expected list things can you market target all of of color any targeted in out all will this of you some is the here have lymphedema finally if is I specialists. for us three the data, remaining, numbers. it. have we a legs stool We I'm increase many claims and give a for mentioned referring that all through the let's there force. remarks, parse had say you way Got said sales can are prepared target picking Today there X,XXX correctly, These terms I while clinicians here. ago your you you vis-à-vis in some of in remember you or color parse had realistic.

model see my for to how moving trying and different terms we Thank for questions. you balance these should aspects out of ahead. taking in Just

Gerald Mattys

Sure.

three time worth at So from perspective clinicians. going into a that Suraj, this quarters of XX% of had diagnosing came having population. that And list we historic had of about estimated after XXXX we activity reached high

at we the to data mentioned in number re-did look that another last were I patients diagnosing or As pool as rapid penetration reran year's patients and with update of the not data those a numbers of weren't diagnosed the that but of diagnosed annually. number only clinicians being growth that host are uncovered high list clinicians. on there new lymphedema, We'll also discovered

to expected new it expect of to would on color fourth at our about some additional call up our go list. don't quarter But I expect all. I So provide penetration that

terms it for particular penetration, of in which well our of may bodes In cadre future clinicians. even to sales that fact drop

Suraj Kalia

Thank you again.

Gerald Mattys

Welcome.

Operator

questions earnings further no for call. participation. in are your concludes There queue. Thank Tactile's you QX This

Tactile Systems Technology (TCMD) 7 Nov 172017 Q3 Earnings call transcript