TCMD - Earnings call transcript Q4 2021 | Tactile Systems Technology, Inc.

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Operator

Please standby. Good evening, ladies and gentlemen, and welcome to the Fourth Quarter and Fiscal Year 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.

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

Dan Reuvers

this we I key focus and share in our financial saw of Thanks, line on drivers, our introduced on into XXXX areas will year thoughts overview line earnings I'm questions. in we welcome the call. XXXX Brent the and discuss results the operational joined fourth quarter review remarks for in during our we afternoon. XXXX and Operator, of heading quarter. outlook with will Brent quarter I'll greater guidance, fiscal discussion detail, earnings fourth Then trends, financial everyone before along to of additional our Moen, begin the Officer. a release full-year Chief and an Financial by today's the open fourth with our highlights some performance, our sales for which and quarter our

revenue quarter reported growth $XX.X to the XXXX, million. let's of So of In Total year-over-year with get started. we fourth that, X%

line, revenue offset approximately the of percentage respectively. Our rentals. with to driven lymphedema product in points a which contributed by our revenue than acquired Flexitouch AffloVest This of our and in from decrease rentals Entre systems year-over-year, X% total sales of seven sales more revenue was And X% growth products fourth quarter. in our decreasing recently our X%

results, to growth expectations, the Our from performance for continue XX% the related revenue growth that fourth-quarter XXXX. to fourth sales emerged to during Entre exceeding extended was to year of our Broadly called latest headwinds we revenue higher-than-anticipated Flexitouch by call nine total outline two total don full by and in sales factors second which of during staffing earnings of to sales achieve COVID, slightly November. performance the our our sales driven The speaking, and the guidance revenue of system primary us relative that enabled moderated last Flexitouch half our range, better be XXXX, our recovery for force, the quarter. the year-over-year, XX% systems gaps of

cover impacted the impact reemergence ability our sales persistence to throughout access second fourth the variant clinicians force consistent and quarter patient with in respect largely more pandemic, of of that with a periods performance impacted patient With the Beginning ultimately detail. those our clinicians rep led new of half absenteeism, the each moment fourth take with Let customers. XXXX, Delta namely during the to we'd the the patients engage in many cases both challenging of expectations. was we which in limited labor and market, a that at increased me The was quarter to our to the by spike the facilities the retention. cautious in and in headwinds headwinds on both these staffing, during around some both team's on throughput, by of and vaccination serve. field similar to aspects driven our COVID, in their bit existing hires, These thus health new care and potential with representatives the patients restrictions engage in headwinds home, the patient of seen reluctance the Keep among and clinic stance. teams in our directly, regularly recruiting policy, with combination mind, constraints our

fourth unvaccinated as to with requirements addition, we vaccination our In patient reconcile safety. XX% retention of the quarter, to saw we nearly team testing balance sales entered our with

retention especially sales for to recruiting our we our quarter, that territories and rep During focused enhancing fourth internal have increasing on staff. resources, bolstering the been difficult efforts, incentives, our hiring more

the at policy aimed during addressing the federal vaccine implementation the minimizing We the and we we customers fourth vaccine a as obligations well a also that departures. navigated as both our as policy access patients, this pleased to ensuring of additional contractor, restoring to share I'm clinicians of quarter. that instituted our and while safety employees serve. both

commercial device headwinds XX AffloVest of As States, DME of business. sales effects To of on and of lymphedema the tactile clinician providers field field related specialists. help our support is covid XX approximately the through Field and team supported throughout XX of consists is by our mitigate December Managers, XX, our our Field sold awareness which United XXX The increasing on is focused representatives. a solutions team, Sales Representatives,

through hosted fourth participation than We to throughout with efforts In was has focused customers. quarters quarter, attendees education our in attendees. than leveraging these educate more and saw solutions participated Most from programs interact to total, a the which And in the clinician educational attendance. team the XXXX clinician notably, XX XXXX patients XXXX. of during medical we COVID been programming continued Our as well. recent clinician doubled during continued This events. total pre approximately virtual quarter on community our course education of more the

engagement growing we expansion pleased DME We're prescribers. patients clinician to we to qualified well From And are the with in were we've see progress product the evidenced their lymphedema that awareness this effective the continued by engagement of ventilation see the medical lastly, with make and of channel steady continued partners treatment Given of finding our sales enhanced base affirmation our to integration AffloVest a community, oxygen our solid among seeing among during non-invasive nebulizers customers. fourth our perspective, partners. and quarter. as

the proved expectations nearly fourth the was consistent of AffloVest These our to the performance more to focused XX% helped issues, portfolio By XXXX. navigate way is and a resulting successfully reminder, we'd care evolving back, partnership margin well-positioned needs respiratory these perspective, continuing subsequent distribution we anticipated From half from remain when of strong and a we As are quarter, the be the work second sales recovery while in a in offer a the during the solutions our began, quarter. believe their contribute reps gross our and for an that with track representatives, XXXX DME home this margin to challenging progress complementary on year during fourth we customers. we made respiratory than on benefit existing strategy. quarter. solid to for through that with setting, inflection Stepping operational of overall products as advantageous

discussion financial it turn detailed over of me for along quarterly who with more our results share let to will a guidance XXXX. Now our Brent Brent.

Brent Moen

channels non-GAAP respectively. An the both The periods, sales the was in year. XX.X% Total noted, Continuing and the revenue in of in Total was XX%, VA, year. AffloVest from sales XX.X% sales new million mix compared intangible quarter The related year-over-year basis in category, of to XXXX. XXXX, gross increase references systems basis. quarter million recent a quarter. year-over-year $X.X compared last rental and systems $X.X to commercial, compared and our price year Unless XX% which XXX resulted down non-cash on channel non-cash to X% of the channel period and commercial of revenue from decreased margin to prior Medicare, XX.X% $XX.X and our margin fourth points on XX% revenue medical X% Thanks, Gross of AffloVest to purchase of amortization sales the to rentals our acquired of P&L. which of the excludes Dan. and system, by year-over-year $XX.X for adjustments AffloVest, of results fourth in our contributed Medicare million. the of acquisition gross our are revenue product XX% year-over-year revenue the by durable By in million equipment increased Entre million decreased and distributors. to rentals channel compared $XX.X figures to quarter Total the revenue, Non-GAAP closed increase in And fourth XXXX. fourth-quarter acquisition September year-over-year. of XX.X% in recently current sales gross was XX% These Sales X% Flexitouch VA Xth payer. is all represented of a margin our comprised quarter. X% latter X% total in margin to

the including expenses, non-cash a acquisition, of in in in a by offset the a due $XXX,XXX related increase by of or expense. $XXX,XXX was expenses of our expense fair Income or expense, to a and last primarily of was $XX.X primarily in the full XXXX. the expenses earnings expenses of intangible team X.X acquisition we increase and in million last a benefit million by compared year. of a recording to tax regional million valuation loss the liability was $X.X the and development current with compared in intangible compensation against million intangible quarter sales As income GAAP general compared tax $X.X The million and income was expenses deferred Non-GAAP research GAAP which value driven was in operating in our million income The we and million, press million $X.X an was both The Net compared to our non-GAAP $X to of $XX.X operating AffloVest, $XXX,XXX Weighted measures driven to allowance tax fourth $X.XX per operating attributable earnout have assets. compute the for associated to operating administrative increase used provided non-cash expenses, in diluted increase certain non-cash in release. were diluted year. increase loss diluted net reminder, GAAP expenses XX.X by $X.X assets related a driven of Operating to non-GAAP Fourth-quarter non-GAAP to $XX to XX%. million was year. net shares increase was $X.XX average AffloVest $XX.X year $X.X operating increase last meetings, reconciliations sales $X.X and addition million represented to and our $X.X returned million tax and amortization compared the million expense to or the was in or $X amortization last year. reduction $XX.X estimated year. year. loss hosting were million largely Adjusted XXXX also increases person cash of to net of a last per travel-related million in last compared $XXX,XXX EBITDA earnout expense XXXX. income earn-out reimbursement share share in or increase XX% quarters sales fourth personnel income shares, per of as and AffloVest marketing in expenses, income increase share million million was decrease net

Turning of of to XXXX, in increase by X% by review $XX XX% increase Medicare, of was million, or the commercial, of to $X.X an sales for to million for and XX% compared to year sales $X.X million XXXX. $XX.X increase revenue XX% the of to in respectively was to compared or The compared X% year. million or for XXXX. $XX.X the for was diluted was revenue of XXXX $XX.X X% diluted results XXXX. a net increased share XX% sales, million or of full of per the in to year Flexitouch, DME, sales last million $XX.X X% revenue payer XX% $X.X and sales for EBITDA driven total for XX% XX%, a full or $X.X of full of brief X% net per $XXX VA, Adjusted $X.XX related Entre. loss Non-GAAP net in and XX%, XXXX million AffloVest or non-GAAP share $XXX.X total income million of an XXXX compared GAAP million was million. loss full-year for year XXXX loss or $X.XX thousand the our

quarter the cash of and of As cash $XX XX, to XXXX. of XXXX. million equivalents third of cash the as and million of compared $XX.X in XXXX, $XX.X million borrowings in December This million at and equivalents of December XXst, also outstanding borrowings and equivalents outstanding had end compares cash cash we to cash $XX.X and no

Turning year-over-year. to XXXX a review approximately million $XXX representing revenue we this expect of which full-year the XX% $XXX in to to million, in introduced total afternoon, press XXXX outlook, of range our we of earnings our XX% growth release

approximately assumes X% AffloVest XX XXXX. respiratory to the $XX.X XX% sales sales, XX, products the CV September a the to of revenue -- had assuming Xth, lymphedema expected range conditions, ending full-year patients from Our X, our following January million CVI, are in and serve in Entre of and Forma increase that December XXXX been XXXX. XXXX. Flexitouch total to increased $X.X bronchiectasis guidance acquired approximately specifically, This our for sales Pro on suffering to product specifically AffloVest our line X% the chronic million the On serve that $XX.X for patients year-over-year our of range AffloVest XXXX, on months compares the products of and acquisition of year-over-year. of XX% And our basis, of to systems sales from range million suffering asset

for purposes, in expect XX% the modeling full low to range. year For margin of GAAP the be gross XXXX, our we

operating roughly in development period of fiscal of driven expenses XX.X with AffloVest XXXX, fiscal increase year-over-year, primarily to X/X is increase consideration. GAAP expenses approximately to changes of introductions non-cash intangible operating fully weighted expected including in as shares. the approximately to research GAAP million from expenses interest million. for in introduce coming remaining amortization and $X by expect the increase compared average period contingent our we $X rate is and increase year-over-year non-cash expected million from in of to The XX-month And partial continued our XXXX, which A expense of acquisition product incremental tax by XX% in for the Our share new XX% XXXX. and count investment diluted to the XX%

to $XX generate EBITDA to of adjusted also We $XX million approximately expect XXXX. million in

approximately consideration of and items million. approximately $X.X expectations of assumes and Our $X.X million compensation $X including and expense expenses approximately of legal amortization contingent adjusted depreciation of intangible expense million, EBITDA stock in certain non-cash $XX approximately changes million

of headwinds, not by for sales of total continued to quarter of This year-over-year, our revenue by of be first closing our first quarter in driven single-digits results Dan. lymphedema a the XXXX. given XXXX, way COVID the the that, contributions in the we mid-single-digits are in in our low back we the quarter will from the increase Lastly, by In related for I'll year-over-year. offset With expect some products. of the seeing sales AffloVest, first which did sales call reminder, impact turn Dan to decline remarks.

Dan Reuvers

Thanks, Brent.

our color share assumptions of a XXXX me Let revenue more on primary some the underpinning bit guidance.

absenteeism throughput experienced the reduced patient headwinds throughout we COVID headwinds First, and rep COVID Omicron volumes quarter persist on our with access, and limitations at those that will primary first related provider levels. the to guidance committed in to with then and made and force patient, the second, call achieving at end quarter our of Representatives. third goal target remain progress the sales XXXX. the we to the Field By on respect force rates quarter expressed of to hiring, earnings fourth of assumes case to thereafter. first the high the These been similar serve, begin periods the own during sales of of subside variant, facilities higher recent Sales our have for quarter

our new half half trained, the recently after during Our and the guidance productivity ramp assumes in of onboarded, increasing the therefore contributions from XXXX they're of second and year. associates promoted first

more XXXX color the a reflects flat guidance we back including in half I'll the EBITDA giving to in on in fueled future moment. proactive the our our important support spend a way In areas double-digit to a return adjusted by to investments for our share lymphedema few just a in expect our relatively results summary, step-up normalized Third, business and half first more year. conditions R&D of in growth growth,

high in second position growth mid our Tactile to an half during XXXX organic basis objective objective teens. double-digit beyond. with to driving contributions sustained to With to we primary margins and expect Longer-term, operational and growth adjusted to revenue the the expanding this four half progress following mind, we're enhancing in in return delivering in revenue return of organic key from growth second on focused Our the to is strong, total EBITDA the to Medical XXXX areas. AffloVest on revenue

overall First, fill enhancing improve and retention, hiring, their our roles productivity. sales sales force to and training key

the our professional of prescribers of Next, their accounts through business expanding base and in by the new efficient providing teams, increasing clinician ongoing training for leveraging support penetration the these and referrals. education, clinical of lymphedema new

Third, introducing new garments experience. summer Flexitouch customers, new and patients improve with compatible the this our that for improved solutions beginning

mobile engage also to It patients effectively. treatment care, in and of opportunity eligibility intend console. We app requirements more and us to with designed meeting better to patients their train introduce leading also diagnosis a educate, more will update, an their journey, patients qualified seeking give to earlier the at

payer customers, evidence key We channel active as patients on to field supporting X% of more prescribers near-term Longer complex. team, as term, strong An a us. most will of already to medical to the AffloVest an the non-invasive during care meetings. increasing claims this continue position million productive course shipped less the diagnosed period. ahead network lymphedema ventilation. $X.X clearance these introduce significant depend service of them recognizing are XXXX, runway us our strong latest the subside. data. According of enhanced for, as recovery during our than well, systems complement expanded oxygen, XX including policy, solutions, partners, presence see support of U.S. and finally, seeking to focused education patients more the of And fresh integrating analysis Entre We we airway and nebulizers thus, at Plus offering menu and patients such for thousand and in represented evidence headwinds of a and and product to expect referring podium which Flexitouch approximately And society as

compelling annual to is as with addition statistic, into lymphedema. greater awareness excited the and undiagnosed continues this of $X While our billion And further at-home come to with to treatment of of opportunity, untreated, believe portion lastly, treatments this proven as market far our it's us the view to grow. expect remain focus a population a that runway opportunity we remains true And patient we enabling an core to AffloVest chronic about clinically portfolio. expands an organization, providing while conditions. incremental underserved to our AffloVest remain patients and our

on judge challenged by Before comment a release the call which February competitor and competitor questions, announced on for your XXth, federal XXXX, other On Texas. the we are we issued Qui business Taca wanted filed filed to dropped been the suit Tam a open dismissed industry by leaders. our practices, Texas. I was lawsuit in press named in had in Friday, The consistent with which by lawsuit the

this investors employees the our dismiss removes like against and practice, and of to to the focus the challenging merit prejudice on conclude despite the patients business. identity I'd case the decided waive matter conditions. today's entire selecting our counter years look effective education bring damages, the uncertainty and our was and or an with those the bronchiectasis to dedication, with fees, and and without for their proud three outcome for defend suit plaintiff, to right now held forward a to any by to steadfastly agreeing to believe Plaintiff support later, Tactile closes serving care. year, plaintiff. us will how the beginning, to to full the to people, plaintiff continue methods, other call circumstances those relief settlement conclusion not With to partners, on case. to with like dismissal patients with dismissal We open matter ground, the any chronic mission. for Now, we dignity I'd call partnering pay voluntarily The their any judge, long-standing by and We was our past this the lymphedema, I'm from questions. by and case agreement. bring a practices. the entirely enabled settlement professionals, to federal also remarks and we'll dismissed that the XX,XXX our care. of appeal most today's it's seeking pursuant healthcare Tactile medical to thanking continuing has attorney's our interest choosing with Operator, training over in which our and our thank Medical Tactile Providing to our regarding

Operator

you. Thank

a to like follow-up. Instructions]. that you'd limit you do X question [Operator ask question to ask X If We yourself and

from please queue we Maeder like first invite Instructions]. to you Adam And to the question yourself to with your you'd ask add proceed If questions, will additional [Operator with question. again our Piper come Sandler,

Unidentified Analyst

you're additional Hi, I for now, far can anything into out, that And everyone. then what on to the wanted in to procedure base can any environment landscape is very for COVID the there on (Ph) outside Thank guess seeing Emmerine XX% is Ann core for [Indiscernible] expect to I has and color been return it's guess of we right so meaningful XX% XXXX. XX% you it I guide? to And fluid questions. taking Adam. and growth to when obviously you but This business. the normalized round provide the lymphedema that that QX guidance, with growth contemplated start a in

Dan Reuvers

Yes.

-- good So questions.

and a may to have Brent then at on he a things those take in me well. Let some as couple wants of shot weigh

with me the seeing and bit Let start quarter first unfolding. a how things we're little

of February. COVID and XX subsiding patients we team. had a We own progress But into got were severe saw as salespeople the along into allowed over we variant, the to than Omicron saw tested little where saw over and month the against from certainly perform from frankly expected. healthcare more bit December in our was delighted Omicron of that First with latest our frankly our early clinics, and us better really positive December much our We in COVID We absenteeism much spike it particularly we'd was January, a we in to of early slightly practitioners, January all, the due variant. January that for strong higher in guidance.

full start. of that's But to to and underscored the that backdrop for way well, is while So still to rapidly set our of a more year, quickly, unfolded rather off the expecting expectations the starting what guidance ramp at down Omicron conditions starting continue normalized that slower some it little ramped we're it the back as variant, in.

We start going expect new to that as conditions grown COVID. we the Then QX get folks, as is not get we our relates the general back newest especially the members, some we've headcount backdrop more throughout it customer of make I market that both the that we our to sales healthier conditions it continued force, at that think improving get the as of the half, to the productive. function into targeted and the reinvigorate year, as improving be trained force, both back normalize, much to expectation sales to a sure productivity we some as half Also, will field our the as much QX. staffing is well products look only of to relates of have in can within base. introduction sales

for business this into macro far yeah really the growth, believe unchanged. this. is growth that the are profile those went And ongoing as that some as the So assumptions we the then of still

in think the like demonstrate the XXXX back going the somewhat that's of contemplate be market this year we but recovery is clearly certainly to back ourselves. a year looking have -- where opportunity size I half-weighted us, you an more As lot opportunity front of we to exit a and

Brent Moen

Brent. Amarin, Hi it's

of as context of year way The look Let me it's at little well. the tale the halves. really just it, I a bit provide about two

things in quarter, looking than and then you the to is the to year-over-year. have contributions my in little offset expect, be lay what And total going increase heard with a quarter softer we for what the If that but Dan single-digits our first seen digit’s AffloVest. revenue mid-single in business I'll by a the lymphedema bit of mentioned all low out be from we historically for it just terms first commentary, we're probably down of

You'll QX, QX. experienced, because doesn't the comparable to throughout see our what and have the be continual but and And getting then was quarter, year a to prior what it we've about, will QX the in and then talking increase focus, in drive AffloVest being QX double-digit progress a a Dan as productivity organic on improvement growth we back basis. revenue through year, QX, expecting an challenge

Unidentified Analyst

to an point productive reps on run it, productive? how there rep? it. Thank follow-up is out average quickly How think long back Got get per we does you. update. considered rate sales it put A can a fully And the for very these force was take full be finer on helpful. to And you revenue rep organization? you quick Perfect. to sales That get do to that should strength looking be

Brent Moen

you it's little give Brent I'll Salesforce. bit Amarin, Yeah, of a again, perspective on

what think of coming disclosed third forward. it's and look expect to of quarter the as the where in we important appreciate end were we and -- we QX headed the I transcript we've out So out at what then

exited the were So sales take. our heads, or selling And when had you we give categories. field reps, we end XXX if we QX, we broad X recall, we XX finished and field where into down broke of X it sales at is December, reps.

field field specialists. XX support managers XX have and We

we get the was as so in but to the fourth If progress you back what our we made our recall, quarter goal quarter didn't was fourth rep, we all way nice sales field XXX QX. goal exited

progressing of third quarter. -- objective on out by QX end closer the we field focus is up of growing QX about to XXX to with XXXX, coming of the reps As sales point our the year-end that forward from XXX at look to to and of get the then

Unidentified Analyst

[Indiscernible]

Brent Moen

always the perspective, were because history versus a productivity us mode. in buy a we build mode a From tell would

and So then X maturity XX-month from APS -- to ramp specialist, a somewhere a building reps the we specialist in up product all up our product taking sales product period. a that between months and to an expected to XX specialist associate way

team we've in course some the our X the organic focus healthy translate into put We months. quarter, the or growth sales Given that double-digit end the such at being that of that the second half the of the productivity of on our can that year. objective first ramp last will we faster of feel over X by

Unidentified Analyst

it. Thank you both. Got

Operator

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

Phil Ryan

Ryan. me okay? Hey, guys is for Can on this Phil you hear

Dan Reuvers

Come in through, Phil.

Phil Ryan

for question. Thanks great. Great, taking the

do were Texas lawsuit, where in you you of impacted? getting what expect region a perspective behind you, that the the In terms from revenue

Dan Reuvers

say, engaged into. pause beyond will with It's the overhang accounts certainly opportunity to a getting don't number looking the that we fresh for on forward us. little a put based just those finer early go know system, have certainly reputational us to more created within but this point revisit lean accounts, ready the back place and to we've it's a on demonstrated that that We're for VA a we that, it those and back back particularly certainly go but think to

Phil Ryan

Sure.

answering and thanks for that. Sounds great

your we you as how that do do recovery about two move that in in halves, the VA, out, year is relates In that I regulations what mentioned. just see it to a lymphedema the comments how see your you understand FY XX going? but Are being patients, that, of the as terms earlier force Or still here? terms there playing of you VA through of tale that sales encountering?

Dan Reuvers

Yes.

the in growing their to is about posture. they VA, be One of they -- entrenched increasingly things the seem

Recall pivot XXX. outpatient a surfaced, VA most out was based a of to it if little COVID used When COVID patients were whether a to that or community there when more which or they're those were think it something most find about temporary was precursor centers, centers. uncertain I the patients about surfaced, seemed permanent. we our redirected to of the of not at

As virtual it as to the it's like is here I and or think monitor -- CBOC this centers that outpatient patient continued stay. seemed to the encounters we've one, even

point able a chance that a have so think But that good is for pivot demonstrated we've us, we've seen. it. that model been call centers become I also So think new certainly The we've outpatient we're this that I to along with regular there's there. engaging the

likely suggested expect a market with think that overall more of look you at I on the double-digits VA, a market. mix of relative to I've function longer basis just I is the if us is low for the the percentage projected size term that

VA the patients be probably think that that for we've in at posture to think is be to future, least with the to enduring engage going able foreseeable we So and model. I adapted

Phil Ryan

Awesome, so thanks much.

Brent Moen

Phil. Thanks

Operator

with next and is your proceed from William Our Margaret please Kaczor with Blair, question. question

Margaret Kaczor

assuming new is this productivity just the today. wanted growth Hey, reps for are throughout in reps guide to the hiring rep, XXXX ask would your that what then guys, and on you Margaret from I plan Maggie year. the existing within you on

Brent Moen

that territory, the field demand nice field about territory APS. perspective territory, can associate on is our expectation course, product a see think this associate product product specialists, specialists basis. Recall revenue be roughly comparable year. granted the on specialists. I million territory, you in on that support if is can we of that out much and average, talked gains And maybe there's support that. the support a specialist little if specialists, million given product generates general about to a territory roughly size give might $X and $X.X about you product on Yes, generating both have depending the productivity we've of of how a they and can that of specialists, can we actually with in specialists for and Then in that And the about start the a

that territory XX% relative and product So between to a specialists, FSS EPS FSS. fully about roughly somewhere that territory. staffed XX% adding Think an with and

build So gives of perspective a an productivity from the by just works reps. how the you that idea

Dan Reuvers

alluded one the staffing is associate, thing that hire make and that we to think accelerate product germination that develop and we sure in we're of -- is Brent curve, the have it that and we're too process staff all attempt our add buy. in to about build to We've also fair we a to to to but path mind, a typically historically was doing takes time. amount had that in also productivity blend. of one have I field introducing territories person, and What earlier versus an now specialists

as within, do for And up specialists. to marketplace. incoming ready. we for But promoted continuing maybe specialists externally we're within opportunity some of competing I externally. there we're med-tech think that when And med-tech they're a as the experienced well product also as blend from associate an Some promote salespeople now condense adding of to both productivity that, us curve product the

Margaret Kaczor

Thank you. great. Okay,

about having talked a guys You year. presence podium this heavier

benefits Thank any, with accounts are of for? or whether type just what access. And guide, if or included then the you. that'd you utilization what, data are growing assistance new be market within aiming So

Dan Reuvers

year clinical and one had on will had We shared started proceed. randomized clinic, question. that random to Great continue neck And sponsoring cancer we that survivors. certainly last trial head

investing places policy. So certainly that evidence of in that will that's influence convinced study, evidence. we're level while have We're a multiyear and ongoing will that's of the the one that it payer actually that girth

presenters vascular podium updated is for be the example and opportunity identify of it American the some Foundation further to suitable for an the with have this we week June, We'll that's couple XXXX, up opportunities Orlando. the later the identifying in one, various how is in market Venous There So to relates bear fruit a good some of patients, a treatment. it exposing society in won't important represented doing. speakers Congress but as Coming candidates radiology, to of expect really we're down evidence interventional and on also on presenting information there.

got think constituent better for a and going suitable identify further really new lymphedema believe then, be to scope as the work we've that how -- We be opportunity got, demonstrate. of about And we've relates another produce. to the we'll nice some us starting, stage it of earlier to therapy can some the the able within to to to opportunity efficacy I that there's talk candidates. that with AffloVest

be and identify bring and diagnose important so these our really patients. prescribes about right of both ultimately journey under-recognized to revealing markers they and part more can relief these under continues helping to to clinicians evidence the of patients a served So the right therapies

Margaret Kaczor

you. Thank Great.

Operator

if you and star follow-up to on please keypad. question your one As ask one to you'd limit like a a one press [Operator instructions]. ask We telephone question, reminder, that

with Our is next please question with your question. Oppenheimer, Kalia proceed Suraj from

Suraj Kalia

your Hope In question. first reps part is XX% unvaccinated Brent. by Dan the safe what second two-part and reps? the that how this decommissioned everyone one, and organic on Hey, were XX of average, contracted revs Dan, And in long they how is of the COVID percent that were healthy. business? recoverable contributed QX, question is

Dan Reuvers

There sure to of mixed were couple first make the want answered in there. a I just I percentages one. Suraj,

related Your unvaccinated. nature make to question was just that of to the the want we're of XX% part I the sure that.

Suraj Kalia

Yeah.

these business Just the organic XX% unvaccinated reps? contributed trying is what understand by the of to of percent

Dan Reuvers

Yeah, into to detail I said on just the sales quarter. about we the that we you, had our don't of XX% have unvaccinated force know remind fourth And we that. remained going

of course into quarter, either policy of of got effect. first sales or the times week. gotten that entire requirement. force a couple end unvaccinated or vaccinated a vaccinated was they that going meeting year. is remained were The agreement the that waiver Over the testing the of a quarter to our the tested would've number be we had either by in And of -- -- Basically, going them the anyone

then into to as in safe interfacing homes, a unvaccinated. wanted could many patients, to make down, we we go sure certainly environment. were days? yes. as that them XX% clinics and how to of second continued it less five. people related all I say, be bringing That in followed So not probably with But far How as think question, them many assumption how oh a reasonable policy than It's many vaccination. ultimately, our the to -- And

suggest most them some out test been positive, a protocols week, more. for could've you that certainly you're If and would of

of pretty typical think I So it was -- thumb. rule a that's

Suraj Kalia

business recoverable, this Dan? is But

Dan Reuvers

wouldn't engage support in We clinic. sales had were to If to is with available more we were That's recoverable, we able them. with of for to When been you still new meet the support trainers it ability prescriptions. able patients rep prescribing say were that prescribers about them. patients, have to --the course, have

that So you an it's having imagine business open you've got absent. if as territory. but I continued, same the can think that

what or their either if salespeople that and to guidance, were the continuing of are So QX. to productive far of voicing us customer. as you the growing general led handful clinic, There's business kind an that direction some of a in pull we certainly as support out not impact that's

Suraj Kalia

you And the percent Dan, of it. use for Thank what questions. the quarter? was taking virtual final question, Got my training in

Dan Reuvers

modest. a introduced we the back mobile think relatively particularly fingertips, of as can the grow, place I half percentage the It's where Suraj, don't to have at my it but I we year. in app continue was this

patients the will in their certainly on training content modest help was in palm think digital at engaging move video that with increased footprint, us I relatively think to in with a But via it phone, hand this point, their direction. of QX. I continue

Suraj Kalia

Thank you.

Operator

questions We our are for for at time. you currently remaining seeing does That conclude your conference this participation. no today. Thank

Brent Moen

Thanks, Carl.

Dan Reuvers

Thanks, Carl.

Operator

welcome. You're

Tactile Systems Technology (TCMD) 23 Feb 222021 Q4 Earnings call transcript