TCMD - Earnings call transcript Q1 2021 | Tactile Systems Technology, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good evening, ladies and gentlemen, and welcome to the First Quarter of 2021 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 will be available on the Company's website for replay shortly.

Before we begin, I would like to remind everyone that our remarks and responses to your questions today may contain forward-looking statements that are based on the current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including those identified in the Risk Factors section of our annual report on Form 10-K as well as our most recent 10-Q filing filed today with the Securities and Exchange Commission. updated SEC, to our which be filings in website. may the with are factors from time time our Such available on forward-looking otherwise. We or of to obligation information, statements our new or undertake result as events publicly future a no revise update also to certain will not that financial accounting accepted references with accordance in generally include principles call measures are This calculated or GAAP. these as non-GAAP measures. to financial refer generally We in non-GAAP with of measures those of available earnings calculated GAAP financial accordance presented in our the on comparable Reconciliations release measures most and portion are the the press Relations to Investor website. to the like now would Mr. over I turn call to Reuvers, and Dan Chief President Medical's Executive Tactile Officer. go sir. Please ahead,

Daniel Reuvers

welcome Thank and everyone you, call. our XXXX first operator, quarter earnings of to

this on call me Moen, evening's our Brent Joining Officer. is Chief Financial

afternoon. With with to reaffirmed results our started. brief we our discussion by were our of XXXX close a of before modestly what that our recent pleased and financial sales for start first I'll a highlights. you open XXXX expectations deliver focus cover the review this for key on as evening. I'll outlook quarter get our XXXX. trends release earnings thoughts for Brent of intend which financial with first discussing quarter we some areas of in guidance, as operational business detail call performance outline the sales me performance well we that, our assumptions, Let by let's this in questions. additional and to We followed exceeded provide will our

and total sales which year-over-year. of of was X% our call decline rentals revenue the to first million Flexitouch by sales in our the partially single-digit we year-over-year, February. and we X% year-over-year in earnings quarter of systems, rentals offset systems, Entre grew The by saw year-over-year by compared decrease which X% decreased decreased at revenue anticipated time had X% our $XX.X Specifically, mid total to driven

the more first discussion a quarter. detailed to Turning of

was and largely continuation to results that of were of in a we our their of in early just our without performance COVID-related April quarter. XX% with quarter the follow-up with operating a represented October. this ratio series These found that consistent which survey a a safety survey which to under operating face to and conducted headwinds accounts, QX. headwinds January, continued A restrictions, had our the top without only of and dynamics consistent ways. of we in protocols impact were expectations impact continued the We of found improved early slightly survey throughout surveyed In These saw primary year this health restrictions. accounts two in our

time the more throughput many consultations. patient First, treatment dedicate of as with due remained fewer and to constrained longer operate between turnover, room clinics exam cleaning capacity the leading to rooms, to clinics we serve of to continued gaps lower that patient

limited the in reported engagement. restrict than surveys and to our access top conduct demos patient which clinics many of our their to two-thirds of still found April important clinic, XX% that our normal And ability the January continued rep patient at less they part second, to an in-person sales Specifically, levels. were patients, at operating of accounts

cases field quarter, from also clinicians, see teams. in and continued first spike patients, effect the winter we facilities, the half the and to on COVID holidays own During of impact the its around our

absenteeism in two and experience patient COVID-related the Specifically, year. employee in of months cancellations continued our an uptick accounts to first the

corporate compliance absenteeism with also to due our quarantining own We in in force saw policies. safety our sales

evidence March moderate, and that sales we from to in COVID highs begin cases As we recovery. declined achieved performance of December see of conditions showed and pleased the January, were ultimately to

higher demonstrate in our the across the owned our first based recovery to resiliency remained quarter, practices contributor throughout In faster the privately Vascular clinics continued customer performance. base, of trends outpatient and key a specifically to terms trends. settings

to we in continued those important may total patients our targeting positioned to has centers to an been also strong to the to like of more we sales ultimately under year especially systems the the XXX quarter device as covered restrictions require VA contributor and of clinics our lag an growth redirected Flexitouch during these remain patients, are the remained Entre therapeutic focus deductibles outpatient Entre VA that patients Plus. vascular advanced to well our resetting commercial within first for system Meanwhile, The these Our in challenged based insurance lymphedema to from to related the each serve VA clinics. tend practices by on first seasonality COVID-related important and contributor than by annual to hospital constrained practices particular we an quarter, expanding see community-based revenue experienced more in due plans. the be sales. sales typical to the of universe continued hospitals health restrictions. With XXX

With revenue a of these challenges declined the adding total quarter, just first year. last of year-over-year drag the to XX% million, backdrop, $X.X revenue as VA XX% yielding our to compared quarter a on in our particular XX%

the the most year-over-year in to this offset to revenue for speaks from expanded that decrease pandemic. base quarter impacts to in efforts of saw of we VA prescribers, challenges the dedicated only performance notable the and the of a team Given our which the related tailwinds and the our our some of COVID, continued fact the X% total helped

In conduct of reps terms due activities, demos appropriate patient-focused patient portion sales our a clinic virtually where of continue our to to restrictions.

trained to were during remains menu longer-term, where in-person we trainings it expanded are in-person in-person satisfaction with patients will quarter. recommend first our out-of-the-box likely well-structured patient be training to equally patient virtual Approximately patients our scores system new which to enhance of regardless options. they option high utilize. to a of poised our of continue while These training. mix earning the also XX% And options the provide seen of to are We alternatives shakeout

with and events to engage were in developed virtually, to a many education the and in In collaboration our efforts, variety during terms teams hosted KOLs XX inform We target medical audiences. of first which of our continue organize quarter, events lymphedema treatment attended the notably, the over and events at and presented these staff. approximately by were attended POWER and was X,XXX clinicians Symposium, Lymphatics we held therapists. related and virtually co-sponsored XXX Most by of which conditions,

We also Venous participated Congress. in virtually hosted Forum's American Annual the

to their lymphedema, valuable sales as addition relationships for raise In and reps serve the us awareness of resource and to treatment build on of the events a our new primary purpose diagnosis continued helping prescribers. to market these potential with educate

the continue XX largely that In summary, headwinds our prescriber our base. resourcefulness virtual efforts the our we while the remained efforts see foundation given of COVID-related with our their interest seen events lay months, were in in our expand to and team base for success our during result, we by the pleased we've the our a strong prescriber by to As to expectations, the future over last expanding consistent growth quarter.

As with I'd along experiencing total Brent will the some discuss our in our to we highlights, important improvements with modest further, a complimented able our I revenue. lastly, adjusted in gross pleased am margins were slight operating briefly performance year-over-year which maintain XX%-plus recap. despite EBITDA, financial we like to decline And operational and also income

product by of the sales our commercial invest promoting to existing team. portion associate our continued strategy, specialists. of we with Consistent our a stated productivity expand we to territories First, expanded

market leadership also sales our field continued support XXX we product help development we more members, to And our engaging support efforts by field second, top continued to our time to to the of of We help and specialists strengthen both to specialists scale team future. into talent personnel our as grew dedicate over commercial physicians. their including new adding lead

In fourth and wearable, team helped led its spent new In team. Mickey expanding quarter And also commercializing In Burns Blue Shield. of space. as important we years Jain, Payer at he earlier of conditions Market Thompson. of a she month, Affairs, career XX our from of XXX the bring Wright include apnea where Brown commercial the include years appointment Vice new call, appointed of commercial the Kristie we within backgrounds at XX President Vice on President President Access, to years five we a senior Health U.S. Medical, Spinal of led our Rishe. to experience the served the from Maggie Dodd and medical Vice of Vice XX years he their person at where our with and introduction of at their for She market years Senior and Philips, we appointed of sleep and March, Pauls Directors was highlights Kristie side, he and added us addition the career the Vice Eric's of Deepti product, discussed wearable the the Cochlear, for at of experience members Kristie at Medtronic, retirement chronic Economics, Reimbursement most Mickey Wennen. his Senior Bryan Eric treatment neuromodulation Reimbursement our the where as healthcare promotion tremor. we and and the home. our Cala Sleep Eric our Board Health and of obstructive segment. as spent Respiratory leadership device And treatment a whom President Relations Sales, of of at Director Blue including was following technologies this Sheri following three lead Biologics following recently and business within January, new appointed the Policy retirement significant President new in Health, Eric Mickey, develop Marketing previously each Darren essential the the industry. experience for nine where Clinical Kristie joins over ResMed, both where of she prior Cross past Payer as

there, acquisition to Eric treat the similar Mickey, to home. with own, respiratory garment am on skills a vision in a RespirTech, While growth. for a conditions Philips model have our discuss in team. greater and our managed that With possess to develop the XXXX. to help Brent? integration lymphedema Kristie leadership our our guidance it our us the detail and excited and review let to business, them And the long-term market, ultimately Eric operations business financial and and chronic to turn markets also wearable Brent over I deliver me results quarterly that, healthy scale of

Brent Moen

in the and year-over-year in the to XXXX. of first period. Total quarter consistent million compared with Thanks, the our of of first XX% of quarter to accounted the systems Sales XXXX for million X% revenue our year total rentals $XX.X Dan. quarter prior Flexitouch $XX.X decreased in revenue first

first XXXX First P&L. compared respectively, quarter XX% in XXXX. and VA, approximately revenue was approximately XX% the commercial, of XX% VA the Medicare XX% to XX% XX% Continuing Medicare and quarter by payer commercial, down

same the margin period last X% the $XXX,XXX first profit million. or sales of of consistent $XX.X First to in decreased quarter gross Gross with quarter year. was XXXX XX%

expenses benefit decreased T&E. Income lower $XX.X costs, First R&D or expenses year, XXXX. $XX.X to first quarter not was first million first lesser first in $XX.X or primarily recognized decreased of expenses, research Net in was in operating compute net to a income compared with to last $X.X million and than along Adjusted loss a XX.X the in X% increased or first used for $X.X quarter $X.X due tax by or loss $X.X loss and the of of The to the year-over-year of million legal of to per compared did compared depreciation, was quarter quarters to $X.X share per $X.XX and decrease million and reduction benefit $XXX,XXX in to in net EBITDA XX.X quarter and million reduced primarily sales loss million XXXX. by million. XXXX. decrease quarter $X.X development lower $X.X virtual XX% the marketing claim the in carryback the were diluted by compared administrative XXXX, million impact general sales or the of higher the first a for diluted increased quarter average million was to tax quarter expenses, occupancy which was in personnel-related for the and the respectively. quarter training and operating offset $X.XX the Operating first decreased to of which The reimbursement, expenses million in sales of marketing expenses. expense, decrease of million first the XXXX of $X.X benefit meetings quarter [indiscernible] extent share first expenses which $X.X $XXX,XXX and and first for The XXXX. marketing was and XXXX patient diluted driven driven the by to XXXX quarter loss million more The X% the costs in first fees loss quarter million year-over-year of tax $XXX,XXX net in million loss of or per operating which lower decreased to sales $X.X and of share Weighted XX% shares income driven XXXX. million. XXXX to

As of to reconciliation a press in our certain a reminder, we GAAP have non-GAAP provided measures measures release. earnings

Agreement As and We at $XX.X had with Wells million entered credit million cash Bank had for quarter facility borrowings Fargo a Credit us cash flexibility includes of into expand million which XX, the March providing had facility size we strategies. to the aggregate compared Credit to we expand April with principal of total of to increased XX, million credit revolving Restated company credit XXXX. revolving pursue XX, at to could XXXX, a allow growth no million $XX our three-year Restated $XX maturity on that to our Agreement accordion $XX a a and financial revolving $XX.X up December end. $XX The our the On provides outstanding equivalents million. feature, facility,

release XXXX of our to which have in earnings our we afternoon. outlook, this Turning review a reaffirmed

sales represents year-over-year in of XX% total assumes XXXX, XX.X% which in increased $XXX.X systems to total revenue revenue By range to growth revenue million $XXX.X range increased XX.X% sales XX% year-over-year approximately XXXX. to expect the year-over-year. approximately million to guidance Entre XXXX to systems of our Flexitouch $XXX.X For of of XX% we our our product, and compared of XX% million,

costs the For margin margin XX% be expense and depreciation million, also $XX expense the $X range range, defense that expenses EBITDA million. $X.X XXXX, our to in adjusted million of to low adjusted of XX% litigation to related range the to expect legal approximately full-year gross Please our be note assumes EBITDA we amortization this of compensation and approximately in stock-based of approximately XX%.

average approximately We expect in XXXX shares. count our be share to weighted fully diluted million XX

for to continue half approximately of closing mid in we XX%. growth first quarter turn the Dan? to growth XX% the expect avoidance With back doubt second that, the of to the some the total I'll which remarks. high-teens XXXX, revenue Lastly, over Dan year-over-year call to implies in of for

Daniel Reuvers

Thanks, Brent.

We expectations confident Given deliver to quarter the performance as strong to assumptions progress. and the recovery remain XXXX our this trends XXXX our in the seen in our for in we've and to date unchanged. continues first year, remain ability performance

expect as to in the traction. primary headwinds continue widespread the the of followed landscape We becomes and the persist more half inoculation through that year to second half the healthcare XXXX its COVID-related improvements on overall first vaccine by of gain progressive effects

in customers like I'd our serving demonstrated dedication for chronic first targeting they've the clinically U.S. field through support leverage anticipate the greater to growth for continue primarily we our size interest multiyear success to the as unique to position those as education second their market investment the like as develop our as while productivity, the our revenue than mission. to year proven $X for and thank improved I'd Longer focus Tactile growth half field and track the Operator, in our the increasing commitment the to now look in conditions. environment by high-teens, We on with quarter market their of are approaching we'll of the through our and challenging expanding patients. well the we in in investors of Medical continued XX%-plus market driving XX% reduce annual related lymphedema term, to for position team and despite call thanking well ensuring and outcomes in lymphedema products our commercial our strategic own open needs base on clinicians our of and specialist costs. of and the by forward in to our prescribing today's returning support that by that our billion of initiative, to their also a and as record to safety improve expanding continuing our close to questions. continuing team call

Operator

Our from O'Brien question. will question Please Instructions] proceed [Operator your you. Thank Piper with come with first Matt Sandler.

Andrew Stafford

there, afternoon. Hi, do for guidance. I with to and hear the I previous thank is This second Drew big a taking range maybe set want guys Obviously, you implied. with some guys. confidence, that to good on out questions. but the Matt, did obviously see ramp want the if half to of of that you start-off to the you Good for speak factors could are kind pretty on you given that comfortable have

in April? rate approaching So growth press March half. growth maybe to into and return in did see the had you in expect of release, mentioned your what comment, you second you you that type if then to could And XX% then

growers. You've XX%-plus at historically about yourselves talked

maybe from So half in understand of perspective what assuming kind could the us of you help you're a COVID year? the back

Brent Moen

XX% starting of then to the XXXX, in half growth high-teens in nicely are of XX% XX%. in And implies of which the – approaching rebound first XXXX remarks. course first better second today following actually Sure, were year-over-year to a $XXX thanks. we the I'll guidance the were about what certainly saw challenging first what closing a of They Brent. over which at Hey, little with for mid to $XXX high-teens we to half question. of the pleased relative during continue year-over-year it QX. it's But I'll And March a we color just than We give then for had just mid-teens a XX% to terms XX% million growth of couple million. very turn bit Dan over to reaffirmed the expected of guidance to and Drew, quarter, certainly modestly to to half for results. of in certainly you QX. equates Thanks expect we

Daniel Reuvers

Yes.

add, see were we momentum January February. develop the just able certainly and to We Drew, different to than view saw we in were to that I of same pleased we some April. continuing in think into March, start progress some to of a saw

certainly that's felt So good.

our education new is hosted that so the events us think clinicians think of many physician I recipe. onboard, can productivity. of seeing support we also that going to I sales again fact an more and roles part And some ongoing been that to are which prescribers we continues help be sponsoring, our our we've of that early some indications important help bring the

in offsetting So as it of pre-COVID the clinics of that the that far and tandem number would we're feel that not call are continue things as like of fact then to the I that seeing, number a spite COVID think patients around what will of still their of levels, at some year, – emergence to move that. in that they're with continue the over we doing see is both from the the we as we course the environment progress other

Andrew Stafford

then referenced overall very the for That's some Okay. People call comparing helpful. to on lymphedema your growth at second a you diagnosis. taking of And are Tactile previous XXXX the growth I of look obviously of and which believe question. the data then claims

some advanced So that's changes simple just seeing pumps you're wondering on there. if now? a out perspective or out from Whether have any you right you could of Thank that the and then you. more competitive competitors there that comment from

Brent Moen

in has grow certainly million but of Sure, of saw of to the out Certainly, in XXXX, give X.X the comparability we of in total challenged perspective the COVID a a year, everything Drew. you COVID patients terms over overall patients little market. I'll XXXX. size even up diagnosed number there, on course

educational in influence of of we've – hosted top pay to we've growing of indicative think both market the commercial I on of had development we've things to that's continued starting the that in awareness invest So events that that to organization, that our both terms those fact dividends. we've are the and able been certainly

convert be the of expect advantage that and growing expectation We back overall growth into as able XXXX, our of diagnosed of progress take terms that certainly we in we'll through revenue long-term XX% that population line. to

Daniel Reuvers

we've of Yes. seen don't on we're aware months. in I few just in Certainly know there that expressing the are maybe – interest anything a competition, dramatically new a last is of couple And our comment that then the space. Drew,

that a additional the think it surface, of the market validates I is suggesting sort that's interest. TAM this drawing some on

think that up opposed then like to built our the we in the direct all evidence got for going contracts as I body As being, on got sure I've for said but payer certainly we place. the several said intend don't heavily in good the and things portfolio that a we've that that a of well. our take to we be It's of and make DME, one devices, invest feel position to vibrant the pretty that distribution as put we past, to times granted. protected want that that we've so have we've We good look to reads and continue time to certainly forward do

Andrew Stafford

you. Thank

Operator

you. Thank

comes Our Margaret your with next Kaczor Please from proceed question question. with William Blair.

Malgorzata Andrew

question. Hey, love bit. to for the guidance on Thanks follow-up a I'd guys. taking little

and of should like QX, I kept But And to kind and sequentially, sum and good to what gave that XX% between that's so it. between be of number so guidance Flexi look and you up back as didn't Flexitouch QX a give that's of really unchanged. despite ton a maybe – probably you pretty XX%-plus you seemed to detail up us know part you Entre, XX% QX

get and at to you know I be us better sequentially, things to what are we're past. in high helpful. some as the something but in assuming And things we've to similar can then input sequentially, least range not you So low-end the are things of that if have still better what guidance the seen getting shutdown, would gets that give

Brent Moen

for Thanks the Brent. Hi, question. Yes. Sure. Margaret, it’s

Right through built full to certainly has second where Flexitouch return it's we just those It's in a of now, half, into share as just and guidance be normal. obviously Flexitouch of we're change relative able of large bit in provided seeing though in coming deliver move Vaccination range, lower on but Entre of to provide growth. fair should ever by being as question of things no certainly growth have forecast our your giving And we to see in force, a expected encouraged to our momentum the Entre, to. able to to both focused slightly On of us with terms of to expectations on got to traction kind kind certainly front you're get half base, that place higher that expanding and and we growth starting terms early vaccinations, in is first then we're a out of March. what's or quarter, back we we the resurgence taken in hit we've in little guidance to the to us for sales TAM our starting there recovery we be of think we're of as confidence being able will contributors XXXX. certainly forward really few I back business Certainly variants the progress in expectations continue that normal. is recovery. number, our that expect its terms of the terms within overall of terms head expectations a specifically in to

Malgorzata Andrew

Okay.

adding new you've sounds of quickly. new – maybe the walk kind very, reps, all specifically strategy, of getting you've new team, which it tailwinds is guys that accounts got you've very like let's got are So got a you got because more you've through

for we really really this about it's be is I developing maybe do the that? like seems question better mean how And a XXXX. together business. think nice So to

to they what So key three happen guess? those the or are Why four faster shouldn't things? inputs I

Daniel Reuvers

Yes.

thing COVID this is cautioned think I I have we think transient just there is kind of still all one – just that for year. the

that early we kind off where get the and of So to we a the our us after guidance them. into year XXXX been question Little give still year. is a certainly good good new depend growth from of this well. we're think back spend indicative more point, your of got it, a see amount are kind host as about year, to force we'll start those of we've sales enter to We've as alluded you to to move We've continued February educating to deliver the of we But XX% prescribers. for kind cold energy of and make we were half the and XX% to number of other quarter achieved to takes XXXX. and barriers we've of of QX below will at start program that internal going prior and developed on and have series a quarter it us study kind that but there tailwinds, achieve have which a number footing on of we them certification, then pass that of tests basically hours vascular coming a transition we're an to And they they and the sure for that see put that. is of it's to

really the the team. level So raise competency to continue trying to we're of

we recovery continue new with that to recover. These historically is as oncology able with as they there for customers, the think that so I how and certainly raise I account well. solid calling key area to think process see level clinical think we oncology the engage help are to continue they're certainly important vaccine as many bearing We've some key improvements the that's deployed stakeholders treating are the we is managers see fruit. to cancer, account I when navigate discussions and as patients throughput then will being because really focus. continues audience expect, been that to of a the And previous good traction clinicians, the that and market handful continue navigate helping to competency of different of these it's our managers. on on to force have sales And that's take to barrier understand small And to side, biggest on also us an root. of

And going So on. good of generation number then lots on the on things evidence things still a of side horizon. the

just So we've year I to remind is months. that nine mind. be able in good us going come to deliver growth to have reasons not But to the confidence of to that got number for to think months the XX going the we're again have a in

Malgorzata Andrew

And faster about little a Okay. two then practices you bit us comes makes than as a I little the color a you of are for in which but disconnect hospital terms that guidance of guys. does last think sense, to that? and take talk me, longer a the bit then just bit then do recovering be seems back a the these do you question will little privately practices, wanted it your you those there get of there, what little give based assume because end can to at? owned And to year, grew Thanks that of or toward hospital normal categories

Brent Moen

in Those on private-owned also call practices there breakout the Margaret, is the on we just that and systems, and indicative private-owned in the and are primarily of also the VA between a they terms which business. most vascular I are of although Medicare vascular be was, growth the certainly parallel the where think hospital between businesses would going in practices also conservative. the then our growth

the directly that with vascular dramatically, offering. So might into of that in the patients product to you're as come Entre in you see Medicare moves offering, lower extremity lot space product starting our kind grow of which our pretty end business up expect. A

system. to of they're bit through a little and it to little patients willing are more their and a those be So so progressive growth practices there, private-owned move how happens just

out their that systems to much need through patients systems there standard protocol have a kind that more they First is institutionalized getting follow higher the of hospital too.

the owned access access as expect those practices slower than dealing patients, little it with some gain to a to institutions, that what bit So a to goes administrative fall to of are. privately requirements gain larger you're clinicians,

Daniel Reuvers

Yes. as we on the in expect expectations normalizing health occur The VA I add just I little little second more we ongoing systems, the do I do but half cautious progress what a an just the think through agree. less we based our half. in to are would normalization Margaret systems, university more would a And that, institutional environment back we're even as is certain, of bigger side. about expect we there, think that

Malgorzata Andrew

guys. Thanks

Brent Moen

Margaret. Thanks,

Operator

you. Thank

BTIG. proceed with question. Please with Zimmerman question next your Our from comes Ryan

Ryan Zimmerman

some Medicare a Margaret on Good whether and All and up impression whether this the have the sight thanks the I hospitals, second backlog the back right. there? And of when is out if with to about dynamics on questions. your improve, afternoon, those of there's could bolus, taking question with dynamics kept of follow-up. a what get VA, couple of that? there's that Maybe part XX% then asking. patients just kind just is patients that a coming I being I And you a for into for want of expectation was follow-up quarter, VA was questions the with have your line are clinics, business The

Daniel Reuvers

Yes. see to I'll a shot if add anything. and Brent wants take

one the lot Medicare that patients the a on have side, the think we tend the of that see of things coming is Medicare mix. through I think path I to do and a vascular higher

of that our patients prescriber a as see base, even also get Entre of an arms patient entry result is more from and – think those level, pool advanced entry us And treatment to some lead it kind the while more available their Flexitouch, We as with which disease if of mix. allows gate around continue option a us. think And higher is covered may as patients. may ultimately to expand Entre some we of pump, advanced will that's progression the a to bigger have come that's I through kind effectively treated we we've our that be certainly the level

in basic number gets is there in inevitably, Entre the bigger patients patients of as in total increase continue universe have some as also that the progress where that will it's an those see we're opportunity expect So seeing of Flexitouch we of one, then and to will growth to continue an the – well. so, Medicare patients we

to to advance, On any pinpoint to bit access. where much VA we're their that for been mentioned for of as those occur we invite able they'll a us haven't moment hopeful the we're start efforts, in little see which well the if they've centers, back behind to a put XXXX. easier VA little VA just I been patients when But as they cautious more because that patients might we've regularly both side, cautious that ago. certainty But clinicians vaccination we continue more the are there can a as to without energies their

Ryan Zimmerman

not me. sales expect in make in changes impact when productivity of a first last terms of for productivity force? quarter. you to Okay. the you call field changes do Maybe what the you. a perspective, those of tweaking now Dan, number reps, for of from you Thank And standpoint to as did I a field quarter, metrics to the force have your mean, quota-carrying them the just the be roles seen seen follow-up your in the from from want more if the if that? you

Daniel Reuvers

Yes.

it's think question. a good I

neighborhood specialists somewhere kinds remind specialists that to we've XX% is shift to to that plus rep. folks, shift. look We to heads like vascular some be the add we we're continue the a things more in into So product see going calendar been XXXX continuing of things or just of What said in and people. territories roughly continue field product in XX the of associate mix more our them promoting certification mix doing full to are equip – to to full-fledged

seeing increase mature they as we're specialists an associates. the from So product in

Ryan I we've they to tasks starting introduced continue into a those see prescribing having FSSs, of of put the clinics continue number from oriented, some will But your actually some energy that have associate we to specialists need believe are added product administrative gains, continuing point, continue some with that to we we've effort. otherwise think relationships So so for What administrative far that, territories support new high as they expand that field support the backfill to is other and liberated seen the the give to fully were the FSSs productivity it's to we some been our and specialists the have territories. expand. that get we some to the deployed of intended certainly where to of are product specialists reps developed have

about So about so the we're we seeing the of at there, end XX we're progress first good heads feel the quarter. up that far

about look plus way fruit. a think track the at encouraging on seeing good and that year, we or we're this but quarter this we're return for a make now certainly, good signs in, feel on of so sure So it's well the We that I can pretty the about bear will right to ultimately continue productivity XX that. investment but

Ryan Zimmerman

you All for questions. taking right. Thank the

Operator

Instructions] next question. Please [Operator Chris Guggenheim. with from proceed your comes with Pasquale Our question

Christopher Pasquale

VA. to on then and one back had I on normal one this Thanks. the path

you recovery primarily are it see trigger as for the what do important the so needs clinics, the state On business? sense or your demand to is below what most these trying question, to need those a relates a restrictions it patient to really normalization Is issue vaccines lifted? key better here there? happen to get from get to and keeping for Just and be a capacity to

Daniel Reuvers

Chris. Yes. Good question,

one I emerge that think is as to the continue across will to start a primary is, behavior component numbers population. there broader vaccinations people's of gain the

along because out they're to calling headwinds of the of exposed and has those seeing the about XXX% clinics January As emerge hospitals April had just the of to given we over lot less A year, patient cetera. distancing Frankly, we us, March on their be even to amount the been that accounts has back should they half we've find things or because with base, different as we for that to we volumes. growth either prescriber of lower vaccines, and the that go back expansion but goals variable patients have week. the the existing in with up throughput cancellations we've of our that's that change QX, because the those but lift we've Clearly down, are or of at feel the that seen a et ourselves indication like as a rapidly throughput, clinics governor with this were at throughout that continues XX% future key as day declared growth that clinic – certainly handful point of calling we sub reduced may to looks they've I and coming. things XXX% and sick, what continue saying think they're start biggest given COVID of for to are the running having if people probably simply the or just February get associated been continue grow the change same they'd got I said, ways think really sick to governor not think the impacted faster, throughputs, comparison the us see ongoing kind seen is social year. bullish We not

got emerge with we hitting we've start continued this back growth to kind in of we that momentum, again. certainly the So this see closer QX we that the is half. expectations to And stride be will point expect more pivot

Christopher Pasquale

be happens to of they of of alternative for back to even things VA, these so these sounds healthcare. Thanks. setting shifting But come And to the then that the the on other push is an in that outpatient a way decide areas sites should like what waiting you're it actually to patients if hospitals. post-COVID. sort certainly patients care see We

in sites access that them? So to months, place XX address those months, have do go the to where you you have in six a are population still to if plan nine months,

Daniel Reuvers

Well, to to been that the been some and the we've of tried outpatient education among We've of physicians. or primary play. docs started upstream, lymphedema awareness some for kind extent, enroll running from we've have We've raising the care to virtual swimming about events to doctors. primary-care community-based enlist participate, education centers

versus a year XX% hasn't clearly our VA result, to we a were total this quarter at revenue gone XX% of As ago. our business zero,

I seen continue that more simply I much think when already we've and it not able if the and gets So Center, want than the admittedly with specialist not trying we in but where think a been, the to even direction. different we're all to of that environment. be point-of-care can primary care moving and to concentrated them VA better because we're at the become where incrementally see easier doesn't get we in patients vascular we're to change through sift when these patients a environment

Christopher Pasquale

Thanks.

Operator

you. Thank

question. your proceed Kalia come Suraj with Oppenheimer. will from Please question last with Our

Suraj Kalia

Dan, all Brent. hear me you Can Hi, right?

Daniel Reuvers

great. through Coming

Suraj Kalia

Perfect.

contract an I give on be update signed, XXXX Dan, shared on late especially United. side? And Any believe the update with commercial I'm in structural dynamics in that the interested So new us front? on to the

Brent Moen

give little can you I of bit that. context Brent. on it's hi, a Suraj,

their payer That We payer large us. if one the things perform contracts. prescriber haven't of named payer some recollect, we that to we continues as large for I ASP a to and base is it well very did you expansion large traded for think – to they them broader refer that

we as grow to expect it continues So would.

Suraj Kalia

Okay.

capacity So I Maybe providing accounts, can any has terms of differently. levels. average would little Dan, more – in I Dan, quarter. know ask pre-COVID you been a metrics? was utilization specific I'm And mind it of I XX% curious a per about lot asked of per prescriptions account number

sense for how more to the commercial, example, of the get moving so trying VA versus things a are specifics. terms so side Just in on

Daniel Reuvers

have prescribers alluded of know But here don't the I one Yes. down that simply some level, we've we've volumes prescribers, top the Suraj. whose to the that filled is broken down. it gap things that that among are to of existing new certainly

majority met same have them maintain the just our we were to not high of as what have continue been XX to them recent the we months as with accustomed prescribers. with that ago. volumes relationships So But

can been base been these and continue out, we a one by those, number So control thing of to They've develop expand and education to continue us the determined medical for we relationships effective we've process. on education focused is focus prescriber on destiny to that's continuing one but the more the so new of we've our that events. really reasons with ways clinicians the reach

us we've told less Less the is number their use, some that's than say at think had spread they are we've XX% we basically, XX% is but seen. And XX%, have that surprisingly of we still I large. what that capacity. So is the than

recovered would call continue the confidence of me you has that from comes continued it's little well. throughput throughput what and in faster in in the what their some even So not thing ask do there, improvements practices. other our still But a we to these expectations I that as surprising to expect is

Suraj Kalia

from your correct and if were Dan side, question say Got virtually, it. wrong. forgive these thought it me XX% of numbers trained patients got or… Last I I got my you me please I heard guys I if

Daniel Reuvers

were Yes. It in-person QX. XX% that just in under trained was

Suraj Kalia

In-person.

Daniel Reuvers

Correct.

Suraj Kalia

how my Dan? should contractor you about Thank for So the quarter, taking questions. used the for I think independent

Daniel Reuvers

Yes.

that some So it's the of doing portion contractors frankly The sure draw think the we not still of sure still first a we markets reps we and that in also make trainings continue were our got don't make that but via some of some will hiring also we've trainers, experience training and quarter. right either. employee to only independent the sales small patient kind people in had consistency, even of trained our and into any sales FSSs addition

So mix that just of in-person. done it was XX% were that under

sure it monitor good we're lands experience. going to to that it continue to that, want I wherever patient a make to we leads think

a there patient. or dictate a the of have satisfaction been we home, with those match I that those surveyed to is trained training up in for each it that been all have variables think far, is try so patients but to that the and virtually home virtual whether suitable and of among scores, as number continue trained same Fortunately getting we're equally, kinds those we

Suraj Kalia

Thank you.

Operator

concludes have you for evening. This our and Thank conference for your today. a participation wonderful

Brent Moen

everyone. you, Thank

Daniel Reuvers

with speaking quarter. Thank to look our once second we you. everyone again forward We of have conclusion the

Tactile Systems Technology (TCMD) 4 May 212021 Q1 Earnings call transcript