Earnings call transcript Q1 2023

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Operator

Welcome, ladies and gentlemen, to the First Quarter of Fiscal Year 2023 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 which 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 to be filed with the Securities and Exchange Commission. updated are in available be the filings may which SEC, on factors from our time-to-time with Such our website. obligation a information, no forward-looking undertake to or update We revise statements as events result future new of or otherwise. publicly our

to refer with include not accordance non-GAAP measures. to Accepted these will Generally measures or Principles calculated non-GAAP in are financial the financial Reconciliations and references as call website. that our certain measures the This presented press GAAP. available GAAP measures with earnings Investor accordance those Accounting in also are of calculated We Relations the most generally financial in to on comparable of release portion

the would go Officer. Mr. over Please to Tactile sir. Chief I turn Dan Executive like ahead, now call Medical’s to Reuvers, President and

Daniel Reuvers

first everyone, Birkemeyer, and XXXX line quarter Thanks, on call. I’m Elaine today by our Officer. operator, of Financial welcome, to the joined our Chief earnings

agenda of our quarterly With the priorities of financial made with call quarter most me a financial highlighting by that, performance. the And results I’ll strategic by I’ll overview performance. progress, level XXXX quarter, drivers of walked guidance through conclude questions. updated first quick of provide and our as today’s a of our started our detail, for cover release. accomplishments I’ll the press let’s financial begin our before sales with for in for you we well some operational high by as greater review in XXXX, followed which discussion for notable rest discussing get opening financial the our Let outlook our Elaine team. in of today’s the key a call. our a performance first quarterly with

in our lymphedema within grew In performance XX% our by products, exceeding that of year-over-year year-over-year to lines. We strong quarter, especially the we performance our our $XX.X to another We posted such product were pleased $XX.X strong demonstrate both million. key million, total expectations. to XX% first revenue growing

products with increasing were operating deliver our year-over-year also from We results strong to We contributions notable saw year-over-year EBITDA to loss positive our XX% the is in and our airway This improvements operating in reductions time in $X.X we’ve both clearance basis, million. and quarter a sales GAAP of on non-GAAP adjusted pleased adjusted results. and since positive net EBITDA first first XXXX. the loss generated

to quarter a in product performance. some the revenue lymphedema our as that of primary that our quarter, Beginning backdrop, With factors the and I’ll line, share contributed engagement team. retention strong to see with another were pleased within first of we our sales

unchanged quarter XXXX headcount had in comparison representatives consistent of at quarter end the Our and at to sales reps of first quarter that remained throughout up approximately end since first the of XXX XXX the the XXXX. we X% with the beginning

also saw our under our resonate to XXXX contributions late ComfortEase notably launched our opportunity continues provide as reps an introduced sales of they patients, our team lower new with with by which extremity reengage ComfortEase, improving last prescribers productivity quarter accounts. have with most newer since another recently we our garments. belt. summer, We The key and from joined products, and aided their reps got was sales that to

lower bilateral who easier ComfortEase. made in our lymphedema saw disease, a strongest our the vascular patients require to use As extremities, often and result, we is truncal experience among suffering for from related growth therapy with

first CMS requirement they for the to also recent year, performance yet sales requirement of for made change discontinued when administrative necessity, the the continued of removing certificates of as Our policy from prescribers. a benefit medical by another

process effective. focused earnings shift clinicians became this This in about the before submission last sales policy prescribing we our call, under internal helps Medicare. on with by our that months therapies covered associated reduce our burden was along with with team patients as a welcomed on the for it them engaging introduced, and change simpler it administrative mentioned clinicians policy, I in As educating

continue throughput that see we of perspective, continue at to improvement evidence the And staffing velocity in clinics to patient stability. of lastly, from many serve patient macro and regain a we both as

them year the expanded to channel prescribers, demand. airway with empowered working team up supply branches Moving customer product supply the AffloVest specialists more reps on are to their our second confidently our supplier and reassurance of and us to This clearance our some supply partners challenges DME enter of within secure side expand and and availability we further support to after pleased has provide in chain production line, engage related through existing capacity new a to work XXXX, respiratory with to a this networks. running with to

clearance its we from demand the During for solid patients identify therapy to existing stand first among as they quarter, these to already DME distributors continued use. airway their saw serve from benefit who and qualify that reps AffloVest customers

As with we’ve on making underserved at-home solution proven chronic otherwise the the that believe clinically to the only in have pulmonary we’re infections bronchiectasis, untreated. conditions mission with helping and both market recurring like good with providing overall in pneumonia. by of our either or these treat this may to past, patients that’s excited shared the majority And mind, truly and patients reveal play to the reduce them expand portable in undiagnosed role we gone a

Turning to an performance. on update operational our

our we products, evidence and clinicians made the first and our multiple address I’ll of a bit patients, of and diagnosis on of leadership balance of enhancing their progress team Board quarter, Directors. detail. more and fronts, advancing strong each sheet, expanding support in educating the these treatment lymphedema, our to new the bolstering During portfolio

clinicians diagnosis lymphedema programming initiatives to the the during and our to community. of total team educate clinical advancing medical our its approximately clinician the XX X,XXX on and educational a to We important focused to by participants. lymphedema educational develop effective market, attended the within We to new Starting pleased body were awareness treatment. also patients the its in of with and implement medical which quarter, comorbidities including lymphedema, of overall and were importance research community’s of understanding raise programs hosted new the first continued additions of see

cellulitis Venous in analyzed incidence the whereby annual February, Alexandra common related data skin ideologies of present lymphedema costs can of associated lymphedema deep gynecological chronic incidents from American nearly of various cancer, as and claims cancer phlebolymphedema, costs the of and presented of a meeting among and painful venous these patients, consequences. related the the and study patients related At lymphedema, insufficiency a determine that breast serious Forum’s results episodes infection known related Dr. forms found in researchers Tedesco XX,XXX bacterial X to with to the lymphedema. They lymphedema, to

history more patients from were forms develop incidence lymphedema. to to $X,XXX X.X importance $X,XXX had of further in a cellulitis underscores work develop likely of healthcare episode. cellulitis. to X likely other of infections. highest The cellulitis effective the cellulitis per Phlebolymphedema researchers the that found to the subsequent episodes, times Phlebolymphedema reduce comparison patients, management patients lymphedema This also of ranging in utilization for to of to X patients times cellulitis more particular, with with were

XX%. Recognition the and System Our Under more neck Cancer results a in titled Medicare were article, The Study, featured a Survivors claims Neck study evaluated Treatment Database of and of survivors. XX,XXX commercial Head data from cancer and Lymphedema that Care nearly to we clinically incidence medical the the a patients in and journal, Cancer. pleased And new published clinical in Flexitouch Supportive shown in in reduce Plus than see of to March, has article been by cellulitis head

be to completed cancer survivors. had drainage While XX,XXX only evidence X.X% among they is diagnosed the head less XX% of average, been neck the in advanced treatment, survivors, evaluated and neck and treatment Among patients courses XX% found head the – head cancer pneumatic neck and that estimated This with X% head prevalent X.X researchers to device. on lymphedema woefully that received neck only patients and than cancer for evaluated and lymphedema. that these publication fact manual approximately head were the and a adds underdiagnosed patients those lymphedema an nearly condition highlighting undertreated of that lymphedema of and lymphatic received but remains of compression therapy, neck

the to compression commercially and this cleared System region, remain device available treat effectiveness. and Flexitouch further first pneumatic expanding committed the remains and its only Our clinical we to Plus demonstrating evidence

of the randomized of head XXX our trial. controlled trial ever related patient As enrollment largest through the for we clinical lymphedema. cancer The and progress treatment conducted neck

access improved our behalf will to We’re future. this resolve in lead convinced that the patient of segment on

our patients February, application, of bluetooth update of our application and the adoption summer. efforts, time. to following first provides last launch new utilization version our we Kylee features an of new strong connectivity related introduced to a which we’re Kylee seeing its Shifting mobile In our for product

track share with enabling Our new automatically now treatment their healthcare to log treatment and include and providing their Kylee a resource prescribers latest with users Bluetooth process. Flexitouch and activity Systems patients summaries better first Plus to and important with personalize compatibility, generate to inform step an towards practitioner their

we next end generation at proud market our also the that Entre to announce of I’m full the commenced system of release quarter. the

easier the a new actively pump interface, experience without Entre ports has deflate features off take during basic redesigned coverage. to user to system, as include requiring garments to bilateral therapy an enhance daily and the features LCD with simultaneously. them multiple new compromising limbs been Plus as patient’s enable to therapy well both Entre making patients therapeutic that treatment, Our Plus, Its following enhanced store. screen treat also

larger need Flexitouch enhance therapy, or whether choice to Tactile of Plus. for part at-home all devices Medical pump for the market compression generation Plus Entre provider of the important is experience is System significantly patients, demonstrate next lymphedema like the qualify of therapy a that options. than as The It’s basic pumps pneumatic commitment to they pump for basic the establishing advanced advanced for and like our of for introduction our remember our that Entre today

Flexitouch be with Flexitouch believe With for also reduced if Plus learning this family Plus easier advanced to has which the with Entre product system, curve graduate in been redesigned make it. our more we part may a that mind, condition it their goal of will patients warrants Plus consistent to

larger of introduction AffloVest, way serve. And we to maintain these another treat the the an enhancements Kylee product which our our establishing respect an and with portfolio, size to the introduced began markets we’re that pace and positions in adding additional we in with With to year, patient in ability last innovation our even we’re leadership population. ComfortEase enhancing we March, product continuing across of to

revenue, equity million And XXXX. us public stock, profitability strengthen goals. with as raised the additional free the offering with common offering we support. for net our capital $XX new through towards to in existing in of our cash since provided our support sheet, balance our first longer-term This flow proceeds and thank and initiatives we to on February company’s respect and XX, our and balance raise an stated to like progress participation achieving I’d underwritten IPO shareholders their sheet

lastly, XX of where device announced the Directors first industry, career over Board and as addition Medical And with and years experience, Financial we within Chief during of both January, of the has managerial of Carmen’s In majority key American medical we Spine for Wave joins the Volkart, financial she NxThera, been and enhanced our Directors personnel. Tornier, our the served with Officer of Systems. leadership Board the quarter, team of appointment who Carmen

joined following Sleep Birkemeyer, More appointment in retail at industries senior consumer team our Elaine Buy, of were more the and UnitedHealth announce Elaine leading Financial we March, Group, year in pleased Officer. leadership executive as companies than and to with Number including XX Best experience leadership career healthcare, a Target. our Chief recently,

prior Carmen as today’s Officer Optum’s Health, Care we’ve the Financial digital to Chief recent tenure this Group nearly UnitedHealth most team. her and proud both level to I’d I’m And opportunity our served of attract of of of been recently Elaine In and Elaine and welcome Portfolio. call like a talent on as of appointments, UnitedHealth company the Officer to our health, focused Tactile with take X-year Rally able Solutions to to portfolio course Medical, at joining Financial on Chief

release. our will more financial financial Elaine? quarter now guidance for review first in And which along afternoon’s XXXX, we with Elaine detail, this updated our results in

Elaine Birkemeyer

to on Thanks, outline such especially history, joined excited Tactile have to team performance company’s call. pleased during operating Dan. pivotal quarterly time earnings first the the Medical to in and my I’m have strong a

By our references the results, a of to are financial $XX.X Flexitouch clearance $XX.X Turning to XX%, review includes a our our of airway financial sales GAAP all product increased $X.X $X.X million, products, products, Entre or or year-over-year our million, sales otherwise, results and includes and million. lymphedema quarter increased which noted first Total XX%, basis. and $XX.X million, to quarter systems, and million. XX%, line, rentals unless AffloVest which system, or revenue first of to on to in increased $X.X million,

XX.X% and P&L, compared gross down to margin the in amortization XX.X%. gross intangible and Non-GAAP periods, of gross Continuing revenue, to non-cash both was margin, was GAAP excludes XX.X%. compared labor margins non-GAAP XX%, higher in which the well were relative first XXXX first launches as impacted material to related quarter as rates costs by of new higher of XXXX. quarter costs, to the product

a million and and increase million. First $XXX,XXX million, expenses. million operating in decrease $X.X reimbursement, asset sales intangible in were expenses general by in research decrease quarter was expenses. in X%, a marketing operating GAAP non-cash development driven decrease and decreased earn-out a administrative increase and partially These amortization The and items expenses expense, $XXX,XXX in expenses to $X.X offset $XX.X or a $X.X by and

development Operating loss a or operating XX%, decrease million. $X.X expenses, decreased expenses, increase decreased to and in XX% in non-GAAP was a $X.X and sales increase million, and loss The to marketing loss XX% $XX.X XX% or increase $X.X Non-GAAP general offset administrative XX% driven non-GAAP by gross in million. operating in a a million, partially reimbursement, in profit, and X% by increase research expense.

reminder, non-reoccurring earnings non-GAAP amortization of period. prior expenses GAAP intangible non-GAAP as our By press provided loss our We way well expenses, excludes to as in release. and in operating detailed non-cash year a reconciliation earn-out operating certain

and our operating improved pleased deliver on non-GAAP our investments focus operating prudent reflects approximately QX strategic leverage to basis the goals. our by XXX to first business in continued loss operating support the term in non-GAAP financial our We longer margin points quarter in Importantly, as year-over-year. were strong

$X.X Non-GAAP million, per or by or a an Income primarily compared of of compared Other expense or to due $X.X $X.X net tax to share. million. of million, loss million, net XXXX. loss expense. to $X.X loss Adjusted to $X.XX diluted Net first million, quarter was $X.X was XXX% of $XXX,XXX was in $X net to expense compared interest increased $X.X increase the an EBITDA share, was million, benefit million, $XX.X adjusted to $X.XX EBITDA diluted compared million. loss million $X.X per in

underwritten commissions $XX at in shares of balance per raised to offering our sheet we which after closed the public of of Turning price as deducting offering offering mentioned, and February expenses. recent share. offering consisted activities, public financing X,XXX,XXX of $XX.X an We stock underwriting net a Dan and this discounts, common million proceeds from

outstanding quarter As and in of This as $XX XX, XXXX. compares million $XX.X borrowings. in of million we of million outstanding December $XX.X end, cash to had borrowings $XX of million and cash

guidance representing approximately today’s approximately XX%. Shifting of we to million, year-over-year growth expect which in prior to XXXX our XX.X% $XXX of approximately release, now to our compared a outlook, review full we XXXX of updated year revenue total to of million press XX% to $XXX X%

of revenue lymphedema approximately total XX% X%, approximately prior clearance unchanged X% guidance sales prior compared range. to increased now assumes rentals our guidance to to products product of sales airway XXXX guidance versus of largely XX% and our XX%, range X% our increased and our to Our

year-over-year; For margins modeling XX% expenses of to XX.X to in interest compared share rate fully GAAP average to shares. the year million tax be approximately diluted prior $X the of our purposes, low-single-digits GAAP low and XX% of range; XX%, gross the a increase we in approximately a count for weighted expect our XXXX, million; operating guidance GAAP full of our expense

now in of an million XXXX, generate to prior range. expected adjusted $X.X EBITDA increase guidance approximately profitability our Based approximately million versus in million QX, on to than performance $XX.X of expect $XX.X we the stronger

X.X amortization unchanged EBITDA adjusted including fair assumes expectation approximately million, of to million, expense Intangible $XX of and consideration million items, certain Our non-cash guidance. changes and $X.X compared compensation approximately $XX in of both contingent value prior stock million expense of approximately versus depreciation previously.

the remarks. for that, Dan closing to With I’ll turn back call

Daniel Reuvers

our progress Thanks, proud performance expectations. financial in the first and In summary, we’re which the quarter, we exceeded Elaine. the of achieved operational

strong remain year achieving unfolds. profitability. improvements guidance committed the basis, year-over-year revenue organic double-digit an full our keeping on macroeconomic an based on to as along raising annual in on to backdrop growth year, the We’re emerging XXXX eye this we start while with our And

XXXX, of we products continue addressing to optimization; outlined year: as we beginning to sales continue improve their our and functionality deepen patients the lymphedema through expand priorities intend following productivity and operational next, clearance new of and our and progress and for needs team; first, As and the of recent our overall the providers our with to X progress DME develop enhancing reduce field execute our of the against on strategic our I airway innovations at pace efficiency serve. we relationships to and to digital line to product finally, lifestyle introduce cost to focused improving the reps therapy that

light and strategic our to years Medical XXXX we deliver as the we financial these in position priorities towards with our believe growth continued to goals. respect longer and execution strategic our will term progress, ahead, sustainable recent progress In of performance Tactile and achieving strong

and Tactile Thanks your to the team support. suppliers, on as for past those efforts customers, your everyone this shareholders, today’s on to call quarter well as our for Medical

now Operator call open we’ll the questions. for

Operator

Please time Our the first this Thank [Operator you. proceed with question your will with a question-and-answer Maeder session. Ladies Adam of Sandler. and from be comes we line question. gentlemen, at conducting Instructions] Piper

Simran Kaur

you This on Elaine. Adam. question. Simran for is Dan. for Hey, Thank Hey, taking the

Daniel Reuvers

Simarin. Hi,

Simran Kaur

here. the out to a for guidance want with moment I Hi. start

guide. QX raised million, You a midpoint fee despite million about $X of outlook $X the revenue about prior by your your at

inform the the from walk didn’t also and hear macro So quarter then maybe a help I environment QX, guidance. exiting decision. and And QX seeing also throughout us perspective you’re then to just that through in procedure what

your quarter? for are what So expectations this

Daniel Reuvers

Yeah, seeing far. what let QX one Simran. we try so can, start that with I’ll me in a and so bit I unpack if are little

I think surprising in stability the clinic terribly resuming nothing we’ve volumes. some seen ongoing

I into of times that of that I get we through think need either. well. QX that’s we don’t XXX% don’t back that several think largely getting I levels, level and but pre-COVID to we saw as continued We’ve said to back volumes to QX, velocity know that see

basis, expectations. I recovery on a consistent macro with think that we seen think that’s I have been good and our

getting are good so and And, issues Plus. We’re ultimately, reception we hearing our a we’ve in of had kind far I Entre guidance. the that clinics And the better in therapy serve. introduction staffing to progressively clinics are considered think, the all recent those of the

are We updating update annual not to opted rather but just guidance. this at point, quarterly guidance we

And there. to to got started that where question, I your relative think you we how

So, was QX quarter. first be strongest our we knew all, of to going

we grow high suggested beat by it raised overall our at end you finished we our original than a Our it guidance that full But on would We high two end. about million. $X.X up, by year. faster look if take where the

So good we’re this have that a $X.X frankly, it’s not at precision And point. little much delta. enough about I’m over million a to

months and staffed. the sales to X benefit more wood think the rolls I comparison those to the chop, things left Ultimately, to year, of we we got got through progressed where of some We trying of that are were get contribute that. in that we still QX, balanced with as biggest headcount a

initially the And to eye in that think end. any the take that’s February, an that about backdrop us something that posted seen keep of talked lower would on. I we’ll guidance we but We certainly not have macroeconomic we

to puts and in in really, latest to double-digit guidance, really meantime, of to just pleased which kind the guidance feel XX.X% were about we be confident And XX% range. us the able raise the

Simran Kaur

response. QX. and impact supply that AffloVest, I for what ask position full there in through from And subbing in now is, follow-up, quarter I’ll get in backlog chain any another see headwinds? about take you supply QX potential was my Thank are any headwinds advantage prior pull to from those Did here you a to I guess for nice guess trying Awesome. from market? those out you the I’m in

Daniel Reuvers

make that supply question we really the last that the the I or think the them were carry full market supply line we would I think, say to we’ve There points in for now supply into opportunity throughout shoulder admittedly their of channels backorder is of QX to at able anything quarters that about to fully capacity, would the reengaged. a reluctance the sure think sales the have not I matter. are our and that communicate end. it’s last answer we’d be But that I position Well, we an into able ample the to expectation for it us some, uncertainty didn’t a at been to handful or behind whether QX higher some put to in with are express

a a that lead the ongoing feel communicated to to So, we’re that things going that chain from like that increase those spot I think fact are forward. we’re will standpoint we’ve certainly good demand we supply hopeful continue we well. in And and will factored in as that that

Simran Kaur

Thank you. Perfect.

Operator

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

Margaret Kaczor

everyone. afternoon, follow-up. hand on to going taking Thanks my side the to guidance good questions. more I’m just one Hey, try the time for

to try So this get do I growth business, if know go a this little high-single-digit three I’m math the of is tremendous growth. full the XX% year had XX% get and X% all next the number, I as side that lymphedema to multiples, we lymphedema kind of guidance especially average on the comps on throughout you bit of or to for year. mid- the just the But guys the through going the to for just tougher quarters. kind I

the if me right that one, wrong guidance given that So, that’s for tell you’ve about I’m or below lymphedema. long-term

but maybe macro, room that bit a number, and little of seems to around there’s or not? why thoughts the and it conservatism the appreciate I So like why

Daniel Reuvers

lot Margaret. answer the sure not a I’m different, Yeah. is

for That really that productivity the solid by think to full we sales year force. fact express we I from us a our but saw to we declare think I some tried little confidence victory, early good guidance. felt our certainly our that about raising said, it’s

certainly ComfortEase well. I administrative think, good I been streamline that we’ve for has tried process to continued, in the first and the business has the quarter, think to resonate

the So the this we we summer. and clearer through the once and I’d get later feel guidance about lot to, growth double-digit I think we’ll have vision into we’ve QX that of of confident updated a part say

pretty that’s think I So consistent. still

Margaret Kaczor

try. appreciate it. had I I to Okay.

So just on follow-up meaningful certificate as change. like the to about things, beginning had at of potentially seems year other maybe some talked eliminating medical the of more changes CMS you that it’s the necessity of some

So how does that help accelerate getting all? increase the product at even to for if the the closed patient maybe And rate therein sales patients? rep productivity, it could then

Daniel Reuvers

think it Yeah, be to question. but a it’s I seen, remains really good

there’s of in Medicare with So that on patients. a couple the things space going

fair frankly of effort the was there a pretty all, administrative would that overlooked, have amount those been partly burdensome I because First patients of been think have to the clinic.

user information necessary, CMN So is elimination but to information, we we some going collect are what forms of and can as that be far introduced a maybe as how importantly, new then more some just the friendly. that as processes that

I to therapies be And we’re make not to going and those, patients that the harder make can from our the of need don’t sure all think work help overlooked, than it’s for continue to HCPs. get we recognized, that that benefit hopeful, will

As patients treat. more reveal can hope that of a to result, we we those

in a ending my waiver memory the actually side, On is the few if calendar flip it’s days, in right. is PHE mid-QX,

will olden think back some there we little the that, were So easier little offset an days. But that bit the to that there’s that a things offset. a were go of there bit

is do that these patients shouldn’t On the processes we’re date. to thing. the demonstrate be to haven’t to And the that hopeful we’ve the right therapy help good that introduced, gotten on it a that HCP side burden to continue

Margaret Kaczor

Okay. Great. guys. you, Thank

Operator

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

Ryan Zimmerman

seasonality but afternoon. three we pretty I linear you about COVID Congrats to all the the good seasonality here, help quarters. nice know Hey, the pace you’re But on historically of and to want for guiding recently, as about third evident that’s improvement quarters? come had us and kind the quarterly tried. expect as Dan, progress, how remind of we’ve this particularly I of think in out You’ve not the quarter. next kind ask us second

Daniel Reuvers

mean, I kind throughout see our ramps I can at and of year resets. and you that the think revenue Yeah, history typically look

more certainly expect the to come to gets the continuing So throughout patient. our the to we device of and would for continue co-pays as effectively growth with typically even say AffloVest, to our is higher But price sell some than would the expectation of sequential continue of year less Probably lymphedema true because be with that incremental down, I be certainly products. just an average would biggest sequentially see QX, is the therapy fair. expensive course, growth one

Okay.

Ryan Zimmerman

And on especially nice the to here on time Elaine, start quarter, call, Tactile. and have it’s your you with strong a

kind near-term of us remind Just have here? that as goals your you in the position you take hold

Elaine Birkemeyer

observations here. leads time and my little of bit how that me kind goals this a to maybe of take share I’ll what my Yeah, just into

organization been a around driven impressed I’ve from organization, mission alignment and by coming So, our the is. really strategy larger talent, the really the how

do. and sales everything think it And meeting I key mission we’re in making was was difference fact, we I last national what our was and In looking XXXX. for just people’s financials lives a into I a at I we that clear I chance that permeates that also our and really week organization. success our be put when the guidance look range had our took for long a joined to out to at and the a dive

$XXX my to focused top-line focus team in revenue, deliver $XX in going deliver million a flow. we would driving And $XX that I we free on this a while as and said adjusted EBITDA be that too who’s million and over is cumulative over expanding of we that, growth and can reminder here see just there, I And year. objectives I cash things million one feel on profitability. confident of

be another And would oh, area sorry, go focus – to ahead. leverage sorry, – I’m then lastly, me for

Ryan Zimmerman

I No, was go ahead, saying, please Elaine.

Sorry for interrupting.

Elaine Birkemeyer

Okay. in drive Yeah, to cycle leverage say my opportunity able experience no lastly, see healthcare management. is I really problem. to our improvements I another to just be And revenue

for opportunity significant improvements capital in receivable. and lower Tactile able a represents this result net as to our accounts we’re think working I in should

focus too that us a for and see I a those that XXXX area So way mentioned. goals I achieve as to

Ryan Zimmerman

the on and of to coming the Very council of last in percentage this relative actually pretty just helpful. do more of to the cash mix a significantly your mention Medicare you of payment the up about And one just you dynamic sneak get, shifting cases think sales me business? balance terms overall year. of which payer was in how is given quarter prompts And that dynamics the Medicare, terms question, those through as

Elaine Birkemeyer

Yeah.

one been I is our been I with in I’ve to lot increase the spending really that thing our pass first time have our the of So, pass we’re engagements team, as submissions, contractors seeing to on administrative encouraged see think, our a excited approval. adjudication. has here, Medicare them. moved first with in that I’m We’ve improvement and we greater alignment latest gotten by

So especially see that in Medicare really to mentioned, points strong as space. momentum, you good the really a that we growth

Daniel Reuvers

going good on. get pass few team Medicare a was better years I we the think and doing to first working Max making good good demonstrate at which the really this team that curse to as add support I forward, We’ve made a to progress I think the is just Elaine’s that, to progress we’re is job Ryan working her continue [ph]. Yeah. it’s think, pretty go as business we not would really ago comments to that at with some the it adjudication,

Ryan Zimmerman

the Thanks for questions. taking Okay.

Operator

with line [Operator Suraj your comes question. question Oppenheimer. with proceed of Kalia the next from Our Instructions] Please

Suraj Kalia

Good you Elaine, afternoon, all right? Dan, me hear can

Elaine Birkemeyer

can. We

Suraj Kalia

Perfect. Apologies, the bit. under weather a I’m little

Elaine Birkemeyer

Okay.

Suraj Kalia

Kylee, have more improve tool what Or specifically, And help Kylee of is a of do of it terms a be? more remind currently kind can for to us gathering data so in patient percent patients envision what you compliance? tool speak? all Dan, to Would So, Kylee? you as this payers,

Daniel Reuvers

Kylee patients app understand about Yeah, many was I information and, that more for missed got variety originally they available diagnoses the so that can complexions so has We the a application. advocate think make And talked it. so this good goal patients or first condition can frankly, we their frankly, of as equipping different of better question, lymphedema Suraj. the know Kylee Kylee learning misdiagnosed, tool a via with themselves. to are We to

And have then an impact can it next think is our training. we on one the that

and to that. need want met. in where want vignettes to Like be able of more we a so smartphones. adept If can us efficiently. patients that to we may they with smartphone, cost on depend component. training to provide have many the assistance our they serve home, trained We be they a can the they’re support that’s be meet them We If

physician their becomes There’s which to the another progress. piece ability communicate with their then

with opportunities sessions Kylee. using the patients how through it. their with they’re and responding December. over downloaded was in for These when that it captured to While to how bring physician, share they’re have are last Flexitouch patient continued to year, in adding had features. The summertime was We’ve back recent have been benefiting Kylee and incremental results new started already bluetooth to chips we’ve drops introduced we addition the most from and them XX,XXX or

ways that we those of able think currently. see their order. also the track Kylee I They’re are So to some that

offloads just do service, side year, even cost the have and of probably on fact And the it’s get hey, the can back We’ll other some and have like to as prompts, this continue therapy think, your them to about, going measurements. eyeWatch burden their to of my processing patients time that you then order as feedback. of does on number contacting a to can things, from human the serve some track that customer celebrate did, half advances into a more or Suraj, far and immediately engagement. I we we’re how as it So give record

and opportunity and summary, an providers. to our them cost say, engage with reduce an more share with It’s educate. an it’s for to to patients opportunity in serve their So also information I’d useful to opportunity

Suraj Kalia

by Got the Thank it. higher minutes question. think patient? I more would what the be ask a day next to product you you reduce taking spent for questions. And could the Dan, of level Dan, per my if do development, iteration specifically

Daniel Reuvers

continue Yeah, efficiency patients and want sessions. really utility There’s to question. we improve a the the a ways lot good to that of of therapy

that I time, the already for same we’ve the legs bilateral with of both disease a where easier lymphatic Flexitouch Entre think to well. the patients is do as got example, at to and Plus treat ability the great it’s with introduction

treatment already the outcome So I to it, think therapeutic session because I parts good. body way one that. think that component multiple to is can’t being we about, limit is a in necessary able to sure optimize shortchange There’s that’s treat of that certain there’s that a make

of rather certainly being multiple helps treat do But parts body having than body able those to simultaneously sequentially. parts to the the again, of

that’s Entre think more of the iteration one latest is that visible certainly system. I our in So

There solutions always expect And additional to we of patients know continue we product work appreciate continue we that’s some starting a features consumer better ultimately are development. to continue but then, efficacy, optimizing and to to Suraj, that we in the on, that to experience produce want. therapeutic invest those

Suraj Kalia

you. Thank

Operator

does no today’s questions It appears queue. This Thank participation. you there are conclude your further the in for teleconference.

your at day. and time wonderful have a disconnect lines You may this

Tactile Systems Technology (TCMD) 8 May 232023 Q1 Earnings call transcript