TCMD - Earnings call transcript Q2 2021 | Tactile Systems Technology, Inc.

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Operator

Good evening, ladies and gentlemen, and welcome to the Second Quarter of 2021 Earnings Conference Call for Tactile Medical. [Operator Instructions] 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. Such factors may be updated from time to time in our filings with the SEC, which are available on our website. We undertake no obligation to publicly update or revise our forward-looking statements as a result of new information, future events or otherwise. include in certain accounting accordance GAAP. also are measures principles will calculated not with call references financial to that or This generally accepted generally measures. non-GAAP We these financial to refer as the Reconciliations non-GAAP website. presented accordance Investor press GAAP, of with Relations earnings measures available the on financial to in in those are release calculated most measures portion and comparable the our of to would call the like Mr. turn now I to over Medical's President and Chief Officer. Tactile Executive Reuvers, Dan go Please sir. ahead,

Dan Reuvers

quarter Officer. of and on welcome everyone second I'm Brent to Thank earnings you, joined XXXX our the Moen, operator, call. our by line Chief Financial

financial In to second will we the quarter. begin quarter results I'll our and for what which trends, discussion terms release some detail for our along saw with during open outlook financial performance, our drivers, of this and highlights the line with we areas XXXX up cover this half discuss in operational before the Brent I'll sales of Then, we greater of updated earnings additional of conclude afternoon. intend guidance an review by overview the sharing for the afternoon. key and in on our second questions. our XXXX, focus thoughts we

the $XX.X year-over-year first that thus the exceeding expectations. we of XX% our shared related quarter to XX% headwinds, million, and review call. and a our let's started some pandemic quarter on the results of get our of achieve to exceeded Total for Now with that XXXX, excited sales sales second performance. year-over-year expected to of were revenue In the increased earnings XX% quarter we reflected increase easing second

sales which of XX% growth contributions sales year-over-year, increased Flexitouch of rentals which revenue our rentals was year-over-year. and Our and XX% largely systems, and from driven Entre increased our by total systems,

increased XXXX the pandemic XXXX. second particularly second XX% the the notably XXXX of in quarter QX our to that COVID-XX, the were sales see an pleased quarter reported operational XX% basis, we disruption pre total to in and by revenue compared of caused impacted on the on by a that was Given basis of

performance environment. Our strong combination second healthcare team execution in broader was by a sales driven and in progressive by the of the improvements our quarter

second a quarter; at business impacted our during business by remains serve. many of the that of Looking COVID primary and ways. adopted we to continue trends more half These bit quarter first safety by two closely, our the our related clinics health the the protocols protocols substantially in impact

rooms, to restricted their clinics First, capacity, exam turning continued additional dedicated clinics fewer these treatment they rooms, over time operate and as reducing with to throughput. patient

the surveys of less our surveys of two April Some normal at than earlier year. in accounts of operating thirds levels that consistent XX% our were the still with found in top

ability patient clinic Second, sales conduct of to in the patients, to reps continued person. restrict limiting demos to clinics access in- our

restrictions quarter, While in throughout population and pleased we of were relaxed. portion half to vaccinations we the see second improve continue access the government larger throughput face these to received clinic were clinic QX, patient COVID in ass the related and of both a headwinds

owned recovery the vascular trend our systems. we saw this with of based Looking a our focus on contributor recovery. fastest of the Entre the practices, sales in that targeting our outpatient as at to site backdrop, during important and trends exhibit again growth pace the With vascular growth care, engaging of team's to notably especially strong specialists was continued the an privately quarter, clinics by most

sales we resume VA demos. portion hospitals systems we in restrictions lymphedema and hospitals sales increased continuing reps some based persisted system, The enabling hand, settings VA communities patient a other more patients clinics. from serve, the to outpatient the the in their were XX% many of away to as see While in XXX in pleased of VA health challenging to based sales network our the redirect practices remain approximately with of year-over-year on evidence remained to that hospital incremental second through to slower, recovery facilities person with specialists' quarter, quarter.

the broader pace of in improved slower were related during still that said challenges, quarter the of and improved the what quarter the as revenue VA, persistent in XXXX. business VA given we in XXXX the However, recovery VA see second to pleased second operating the of was environment lower modestly than XX% the second quarter. That reported our we

our shift in sequentially increased progress speaks comparison XX% of half fact, to broader But also their the we've of quarter We in revenue forward of accounted which to for our VA outlook. VA. care. current recovery them In second a VA's XXXX our inside navigating first team's within XXXX, maintaining in posture to look the the

on second execution a the we raise expand next non moderating train quarter business nice our XXXX. an existing and From in compared an solutions basis, noting that growth While prescribers, the related we COVID adoption during VA XX% expect access quarter, faced. our patients, awareness it's using continued worth our XXXX quarter to the of both team among standpoint, the a second VA to virtual ultimately of did recovery issues second and that job operational into new year, increased of of revenue

as half the management whom in and our during X,XXX first variety or preferences person. patient needs which by of alternatives over lymphedema. XX total XX and we medical our using half our half our of our medical and customers, an a training period. the forward consequence, over focus And prescribers prescribers and this on just lay on events to over box reaffirm for via Support of FSS to care sales reps bringing business served new commercial of team a standpoint, recently education continued we to rest menu the education quarter lastly, and during engaging virtual engage from the field slightly of were of We specialists our potential field for the of with trained conducted nearly the help to the the a last diagnosis, our kept members the of Specialist appreciation size of support expand in which X,XXX sales the of meetings productivity out the look overall virtually to by total up programs base bringing future a forward. leveraged continued of were leveraging sales field the tailwind in potential quarter, of as and second quarter. options hosted roughly role, of year. These the our the programming And From month Feedback held our foundation meet were attended educate our hired team challenging we've last saw going course see clinicians, Specifically, to the important of approximately continued improvements in momentum our to a we overall by expanded new for year our reps physicians. expanded members the virtual new We team the end. XXX to team to we on

provide of Brent? enabled profitability. detailed to and turn a financial over Our us me return our results that, our quarterly deliver EBITDA With and along more gross for Brent solid review margins to it you let net to adjusted to income XXXX. with top line a updated with results guidance

Brent Moen

$XX.X second in Total Revenue million XX% year-over-year second the $XX.X of to in million XXXX. to quarter increased quarter compared Dan. the Thanks

Our a and the the throughput. and stages from revenue with patient in benefited second clinics, facilities from restrictions initial of of COVID-XX the increasing quarter recovery healthcare pandemic portion relaxing

the was Flexitouch XX% of to in quarter product, by second our the revenue XX% compared XX% base, commercial, clinician quarter the last compared to XX% driven our year. XXXX, period sales Medicare revenue the for XX% year-over-year quarter, of XXXX. of quarter education million sales By VA and XX% Flexitouch margin to expansion our approximately XX% effective the to down of $XX.X activities. in second due Entre of $X systems productivity and revenue period. part and well revenue increase was as of accounted and in By in XX% of XX% the sales VA as in Additionally, quarter rentals our and rentals prescriber the prior increased systems of our improvements P&L, in million. XX% virtual year-over-year year-over-year increased gross year to the our of second same total commercial, sales payer, compared XXXX unchanged second XX% quarter the respectively, and force, Medicare second Continuing was the in to

million. $X.X Second by million, expenses, development increase million, or in at an which driven operating higher $X.X increase of XX%. to million $XXX,XXX and lesser expense, marketing and and by higher to The expenses expenses increased $XX.X million to a sales which was in quarter $X.X increased operating extent, research came $XX.X

costs of expenses administrative included and general $XX.X the in approximately to period. $XXX,XXX reimbursement, by quarter defense approximately and $XXX,XXX Second decreased million litigation

in expenses of litigation quarter charge in second Excluding approximately and reimbursement the impairment the second XXXX, the quarter year-over-year. XXXX, expenses of XX% increased G&A our and

per a of $X.X $X.X diluted operating tax in to quarter million of quarter benefit loss the Income XXXX. of XXXX adjusted $XX.X compared diluted second EBITDA of the share operating loss XXXX, to for $XX,XXX, Second income in XX.X compared the the $X million income net and of shares or XXXX. tax $X.X of Weighted to an of million, $XXX,XXX second was for for second primarily quarter second was or tax XXXX second XXXX. per XXXX due EBITDA quarter the the of share net expense in was Adjusted respectively. of compared of Net quarters XXXX. quarter quarter change the used in were second for million to year-over-year and credit Development average quarter in the million, quarter loss income XXXX. and a for $X.XX second approximately diluted a million, million second recognized $X.XX was share The quarter to Study compared $X.X was per second compute of to shares the million of Research $XX loss

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

of at at watermark entered a We for had which Fargo quarter cash compared to As and capacity into period. of a we our XXXX, end. XX, high On April the XX, $XX million December borrowing we with to Bank, June outstanding the company, XX, XXXX Credit Wells $XX million, increases up cash million. Agreement borrowings no equivalents had Restated $XX.X

afternoon. press this outlook; we in Turning of our review earnings our updated release XXXX

range strong than as year second stronger quarter the for XXXX. sales and full our performance the ability our to guidance performance raising our are expected second conviction to half in of We the during account deliver

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

we For for our XX% adjusted other modeling $X this non-recurring expenses the million, margin and XX%. to the million low based in EBITDA expense range million. range depreciation $XX year, adjusted of be purposes, please our defense the $X.X expense expect and litigation to to EBITDA And of approximately approximately of margin approximately full stock range, to $X and amortization of XX% million related in gross be note assumes compensation costs

We expect approximately back average shares. some for I'll to to Dan With weighted million share that, remarks. call turn be closing the count Dan? our diluted fully XX

Dan Reuvers

are trends and performance our confidence date and outlook. consistent us in The gives with it full Brent. our we that incremental observed to expectations year Thanks largely

We earlier the XXXX. of primary remaining from COVID the during headwinds outlined expect months see continued to relief related

flag, to variant in healthcare we Delta to continue caution will environment. headwinds widespread is a drives bit normalcy anticipate as served the vaccine the progressive of return inoculation subside Although as a these a

team ability remain we chronic clinically as As our focusing enjoy their remain and continuing half that continuing like revenue clinicians thanking the and for long-term investors, environment, broad I'd our enabled our our billion proven in patients events targeting, we serving leadership the second call XXXX, for we thank call the along Expand Medical return By by delivering with field entire improve, our conditions by customers network interest space continuing and commercial Medical we on which the like questions. and mission. in our to for has path in for and US us resume on to of now coverage. team. to open to today's and efforts the the I'd $X these in and size expand our will to conditions lymphedema this our in and committed to approaching close Operator, navigate base growth support share productivity to continue the and outreach our leverage position deliver confident of our lymphedema objectives, products market to and Tactile challenging margin trajectory. Tactile safely performance continue strong growth. prescribing to their those of education also increase of in reimbursement and XX% related

Operator

Instructions] come our will And Guggenheim. Pasquale with [Operator first from question Chris

ChrisPasquale

to guys of where baseline the you start like an in business. updated on I Dan, Thanks, on terms just by COVID are impact the getting

occur? the really starting It facing there. for do not or the visibility the clinics any of bring from there to are outpatient that's VA, have if progress trigger the VA sounded any, would So outside you be limitations, still even if segment, is guidance today? those then assuming what on And to back like any you patients likely what

DanReuvers

questions, the for thanks Chris. Yes,

start front. seeing kind with we're of the me Let what COVID on

helped. as the clinics continue get throughput. to and of things XX% led normalization below really will that end we we'll were continued to to back that I quarter April, normal that quarter, in approach they serving into certainly early later hearing prescribers. back or the that still of to were us well of a XXX% we seen get for were customers was the XX% the rather the we got year. one top by don't Back XXX% value back we're that think expect when the We've seeing the throughput that trends that strong our We

they're limiting expect persist, of procedures about not to continue or however, the in doing either in waiting the sanitation new to at rooms, exam those some the office the of number to turnover of policies patients, we to same rooms, the continue Some levels. rooms

was I that we'll continue the I get improvements, by the old kind expect we've progressive truly don't think to get we will conditions, year. So But what know to the end continue will back had that we see of the normal certainly expectation to better. of

as it good On the the new and responsive most we've amount or so were the continued where vascular little opposed continued that's conditions, those probably afflicted slower find side, vascular we getting more vascular. patients. smaller is to place seen to are just to circumstances of Most the of access better. so And in say, the tend in of saw university settings, prescribers moving, be oncology QX, those I'd be or private not simply biggest a growth, been a the rebound better, they're we clinics that clinics, environment. at our of still And but under the in increase pace

VA back wholesale very the patients CBOC community to kind hard by allowed the but the examples have the some these of with specialists their a a center, pre continue it's few seen on outpatient VA be the continued them centers, year. the with that very, assumption say they based majority seen to side, posture were this, we've the where the On in since And basis, of stay or outpatient episodic the to us to environment, be be will hard will community reverse where modeled COVID to centers. prevailing when place predict it's for to patients might through we've seen

in people think the better good that flip teams in saw navigating the gotten side, certainly And as at finding done job we centers. recovery they've the right have I of result, our environment; VA. a really on a some the outpatient

ChrisPasquale

that chronic in the going maybe not Or many kind have not I'm treatment a normalized is XX they in condition to But otherwise the access where returns for a helpful. something expect that patients to now have fastest, settings you not months, your is leading of of these the good If That's lymphedema go vascular clinics Thanks. curious materialize sites? seen maybe have as of demand bolus things pent-up been are them treated, would is you have not are business? indicator those getting in of this. away. whether a

DanReuvers

I'd clinics patients clinics. or those what think demand would They're the a these patients for normal and place. this in throughput started simply around some patients good know in the are of that that with certainly of that the models these news bolus themselves. of I down access be was that think patients I say diet seen clinics wanting of But had a when of I'd amount recover. to was there early the that precautionary that environment. don't there's fill seen allowing say They're time wait in they put to govern can pent-up ready. the But been has on is seeing at I an being It's I because were I've you back of you'd a the shortage one were room clinics no been rooms. your control rather it capacity to they in new to QX, steady cars, exam of summoned the more; heard more

with Now, in a instead may now, there the the between or the are having a better and throughput has difference room prescribers. helped have in four. limit room, as our I on to bigger patients to those that get sub the some the is the they waiting patients of think and XX% on can for especially that of as sit things of throughput many XX starting But closer waiting queue are

Operator

next question Sandler. comes Matt Our Piper from O'Brien with

UnidentifiedAnalyst

guidance. how year. start Adam and the taking level of about the talk guide ask it's up part And of the you your as To confidence the The in nice positive out the quarterly wanted for the to is a well. half end the around just you've back a guidance that on take cadence. second questions of not congrats just And up guys, implies achieving question for Matt, range. in built Maybe on why upper then thanks the Hey, kind of updated the about laid and trend. ramp guide

QX about comfortable so you Are revenue I think progression with million. would much. great. be that $XX street on quarterly figure? you the shows Thank of any thoughts Just

DanReuvers

for question, thanks Adam. the Yes,

little on anything's don't kind high level we the saw guess results year certainly on improvements you the the of We the I We we continues approaching reaffirming north I'll built Hence, get to throughput me of the to for progressive as we kind and bit patients any that unfold. to months back give market, Let this really that expect our and few expect of the sales back modest continue But mentioned saw in and in the a new we've the Brent back expect we I they think XX% how a to modeled the in of will we'll the one. the we even half. really up have get guidance some clean increase XX%, then how mentioned the changed, I by at couple assumptions XXX%. hasn't are recovery of increase the so outlook that moment material exit ongoing headcount point change a COVID in our as a of And or guidance ago. contribute part, to time quarters. don't in think into in of don't that are this do do environment as our prescribers the in year, We postures last the VA some ago, let changed. improvements most

really bring few months back much But result first QX. half, There in we of us solid up the a good playing had the to same, it. having the to the us think gave account we kind had ago, I things still change. far I see about much in had we really lay that to lower assumptions amount of as that some like second of very think there's half uncertainty of wood how a Because we've outlook in we've as tried out of So as we've how And that we But balance the like still to the the are expected. fortune what a the that's kind it's same the confidence was in end, achieved very are still out of half. think those fair we with frankly, guidance we chop thought the to I year. provided the And the pretty for marketplace, those. good tried a think a

BrentMoen

Brent. to the said Dan low it's those just Adam, But our QX the would, range results. all everything that of progress I as year, the I better just the now, than we to too, of Yes, second expectations. of were end our would into built guidance echo the things reflect expected kind just raising half

that pretty quarterly sequencing be approaching the XX% exit of able to mark, I consistent. sequencing for and terms and feel QX, QX we we'll hit act confident looks that In XXXX as

UnidentifiedAnalyst

I prescriber about group Got any would on it, in be I update And Thanks their to so one just if it you sneak much. if guys. in this cohort, can performance there's in the as being QX, talked XX% just think curious more, relates QX. roughly top down

forward. So recovery trying if going Thanks look and there get trajectory some for to you what like that just again. a just curious sense could saw

BrentMoen

for I Adam, pre quarters, offset add saw always, clinicians quantify of But of for tell are Yes, we in progressive least Education met that just access at But the access And an the from perspective, think again. to a the and the just I what And of in certainly, is Brent talked terms that what prescribers. COVID. kind throughput. are. we've done. where limited we you two don't those Virtual bit seeing we're we've think seeing relative the out are patient the new events there past And second prescriber improvement to we're prescribers about, interested expectations that then new having it's a quarter, we've of a I'd a byproduct

to expected. we see as continuing progress So

Operator

comes question BTIG. Zimmerman from Ryan with next Our

UnidentifiedAnalyst

questions. thanks my Carolyn for Ryan this Hi, on for taking

still you a commercial share the you of you're You balance support in over specialists the last noted expectation terms where exiting Is the XX at or XXX XXX the XX the commercial that field mentioned then over over On team, And the modest goal? quarter. of adding team versus in can course year? of organization, year entire over the on here. a increase quarter for the to

So five through you. Thank So again, then follow is where have And up. additions XX fields that for for quarter? of year? just not in the one I you are specialists that the terms added

DanReuvers

Okay, thanks for the question, Carolyn.

good then targeted just XXX had from put I press field, about of things new the we third hear release in go thirds Vice on way the ultimately sales of the new Pauls, still in also we important fortune of patient it Eric this And positioned continue with we we meetings the working our specialists paired the the those think as but that of in just half. only in reps we of that we heads and our or point, we a them heads being President the one the had some the to Senior the got support quartile these is we're prescribers team resonated leader necessarily. over we that continue that field the two as And them field First, things part there's been he's liberate develop long way in right and patients. sales in of in with new is got, And specialists brought back to to done really prescribers, hosted QX, a would some demos, time them lot We've of to as got new -- some nice them We probably not the of of storey back about to but add experience the fact they active has it's those that's did education so we're recognize and from kind equip quarter spend I that He's at from of with the plan job new and also able July. the a had that Senior a quicker higher than our to support good feedback think the for there to Philips, of events, gotten I end more with an either your to while engaging around we allowing prescribers with process, to Product team. not a half. we've more it, this the information specialists, about arms attended we've of reiterated spend selling his that one continue more our product finished is want that XX expected. about far, who the the their time physicians important now participate where

sales say I'd being the and between progress good harmonizing made in our support continued these the and team, between the reps So in field overall progress good of expansion specialists. product

UnidentifiedAnalyst

And more Qui you. thank Great, then one just on the Tam trial.

until So, We the we delayed in is trial had case go December. thought the sometime case to fall. recently might previously the early saw

taking my the appreciating you Thank so provide for just can questions. so only So, new there's you much share? the reasoning for much Can you any color timeline? around

BrentMoen

Brent. share of color the Tam little be to Qui a lawsuit. on happy it's I'd Carolyn, Hi bit

overall things terms Just in of updates, progressing. are

deposition through We are the discovery and process. essentially

and So of and those working briefs later exchange now through the we're are virtually complete. But motions this between fall.

side lot beginning preparation back December. that the on our with The A date correct. trial the so of pushed relater it side. do has to has more on is absolutely been You're of until than

story the so without but And the to merit defend claims, continue we behind to out as navigate but to put generally to is case and trial as actually continuing their now. continue Caroline, that's request of this these vigorously trial and expect, to finalize on that you believe might ourselves the push line we'll quest the us, and our

Operator

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

MargaretKaczor

If the what close with the I three Hey, XX%, the be guidance seems a I'll bit it to versus be guidance more see as or for second specific guess, good in I like four seems mid-teens conservative, I afternoon kind likely It gets to in here, we and and the what thanks total guidance Flexitouch half? but for QX. taking the but more you typically Flexitouch know may number into back be we of sequentially questions. I'll can for get.

in probably commercial uncertainty should the that seasonality VA would is and is since that I here, guess, numbers, know but that isn't especially suggest QX versus applicable anything uplift. more traditional there So I see

BrentMoen

pretty Thanks Hi, I seen Brent. analysis Margaret, is that your the pacing would half and of with it's in typical first say question. we've the for XXXX. I the think recovery it's

just VA expectations slowest. recovering the with So, down of kind the lay the

You to exclusively that Flexitouch. the is VA have almost remember

on this So they and historically terms they business. component that's performance don't like that of recover of little a in of and pressure have one the bit QX to puts Flexitouch contributing that's QX if line

about that QX piece QX is vascular. The and in we've other talked

at We continues quite then just of Medicare, as are there. they're faster Entre to vascular pace that other closely And payer, third categories recover expect the business. well out as the the and a than predominantly some follow of that that the pace

So, through it's we're predicated as to expectation the we starting where on progress is opportunity the see the really -- year.

MargaretKaczor

are Okay, prepping of Thanks. that recovery is, the from question the look to of and growth ultimately guys there guess, that for start touch, catalyst, 'XX that growth what's mid-teens back when at imply kind don't fair that 'XX to strategic what what's just and bigger toward COVID a is broad question can you get if enough. And we I XX% does from is so that guess improving I perspective, that you driver you outside beyond? or

BrentMoen

overall Yes, tell our nothing marketplace. you, I would in changed this has for expectations

to revenue that top get we'll the environment, through we once we grower. plus return XX% do COVID a So, line expect

in 'XX to of in would front sight pause relative is the our certainly that or that's out nothing of us. but haven't expectations guidance, line give us our We worked there opportunity

more should So would traverse kind things that of once we through that look bit tell I you normal. a gate,

DanReuvers

about, line. would be lot if of really we're a kind rest ago. the of And as a things are I down have year. that am we'll some environment stretched look add, anxious out longer still a guess, it expected, us mind next us to Yes, is pre-COVID I we the I But back normal I asked than normalcy. more get has think you to little I a get year enthusiastic us There like of for mean, down the of little to Margaret. back further world just a the to might of

some prescribing recognition. at add new think of the full I that haven't the been yet prescribers continue of pace we to

As the based fact with to do in of for a predict. think of much kind they a one are we've written patients. We about a with think hard or how prescription -- own going to of or to patients have back I see to they of two body start recover. in when described broader small Chris' first may VA, with question spite I their They see kind to past, still It's about it on prescribers evidence, group. new the the typically their they they few think us want want

then get past in So continue XXXX, we you to making and invest we XXXX to the we're And return into will what enthusiastic haven't modeled posture some other organization, that happens think think normal. point the and VA's it as beyond, I XXXX. I we'll when but some the investments at into expect we about be about of expanded certainly

XXXX will as for to it. about guidance start come, specific things we enthusiastic contemplate I providing are be we're won't that number a but think we at -- it point, haven't certainly but of this there We

Operator

comes next Our Kalia from with question Suraj Oppenheimer.

SurajKalia

Hello, Dan. oh, phone behaving goofy. My sorry, was

Dan, and regions overall all the to specific in how So, couple performance factored you particularly delta questions, contribute geographic for how remainder from lower have And the of end the guidance, the variant? curious I'm about outlook 'XX? the and any of Missouri, the of impact potential on those Florida

DanReuvers

some posture get a good higher an access end assumptions, find little demos, pivot I throughput before other can That's what's talked the we way and faster the point end end the on Suraj. I from bit I certainly opportunity the patients for certainly question think XX% and what of our people's lower exactly, big to it paying the Well, but there's plus to prescribers, in hit the the to to about going range. There's of would recovery, of a you've think, -- range attention if Florida states like if we think a our closer the VA's it's get year. of the can things to even in and that perhaps unfettered the on attention, see

would see end bit resurgence on provided. would feel is, what toward where think think haven't other historically end, handicap. normal there. down to bigger than the we our of for guide we've a half tried lower cone of of for delta that kind than We But would have that's causes back those probably certain range kind the end. And expectations. modeled more we variant like the the the low if markets, pull the we've certainly we the balance in some be We're got spectrum to that account in perfection why the pause a of in trying I variables. us that's certainly But the things us would I

hopeful So we surprise get bigger don't we're certainly there. a that

SurajKalia

shouldn't contractor was I'll in When are Pareto clinic, terms look more this questions. rule still in normally Thank ask back patterns couple Dan, the -- color prescriptions be taking historical And, of quarter? Or right, my slightly appreciated. if what just in independent other And what but of enough. a is piggyback, were? question, I usage would believe Fair I to average asked it's apply throw you seeing? at per for could guys the one I all does the say of greatly what Any getting differently. the it normally, it we I'll you quickly,

DanReuvers

Sure.

touch me So, training the let patient first. on

to trainers, the continued the actually prescriptions. an markets Contractors quarter. our small expand were steady in those our that of virtually patients second between out Tactile. done let training in in On patients there pretty for evenly portion. for balanced two field front, represented balance quarter or home good by trained trained pretty the a full got the most in just of put in one group the done patient the between been representatives those a perspective majority part that our home, Of been second the the -- broader is, of who diet it timer's box. me has the It's employee of by We've in even we've or were where were

in less something suited are contractors, wouldn't contractors second certainly done think I won't a but than say training a the quarter was quarter, use by by steady there covered have or diet be ranges simply a geographic those we less is for where full-time and don't in think I markets of where to Suraj, employee. all that June, I big to contractor a us a we best in-home enough developed either of fulfill markets

little kind So look like. the gives on that's what a of bit training piece what you

volume pendulum and it between think in but as kind of a I even per that amount in the still portion I I second quarter seen us, in think to in reasons. pretty prescribers of couple and bit, swinging big in-home And those then clinic, we far increases for QX, will our saw was and virtual. prescribers time, what of certainly prescribers a it's not be from guess, solid more that virtual in-home a and active surprise is over prescriptions as the we've

As their has throughput that that increase of prescriptions to in seen has essence clinics. led continued recovery in an from to recover we've those

we've we close of because So variable tracked going existing throughput, the the in as have we're as from prescribers, to improve, prescribers to throughput our continue saw kind why as existing clinic has we from our but closely a certainly perimeter that customers that to complement new we're quite take seen it's to some well. activity see which convinced is

Operator

Thank you.

remaining We to I'll are Reuvers time. this closing remarks. no questions it seeing at back Mr. turn for currently

A -DanReuvers

call. segment focused Medical's for we of in has your the thanks our treating Thanks, forward Tactile look great operator, in and in again half. journey. We and on the Hope interest the summer remain sharing second everybody thanks meantime our progress to and everyone to a joining revealing and underserved for updates lymphedema

Operator

conference you participation. for Thank you. Thank our for conclude your That does today.

Dan Reuvers	President and Chief Executive Officer
Brent Moen	Chief Financial Officer
Chris Pasquale	Guggenheim
Margaret Kaczor	William Blair
Suraj Kalia	Oppenheimer

Tactile Systems Technology (TCMD) 3 Aug 212021 Q2 Earnings call transcript