Earnings call transcript Q2 2023

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Operator

Welcome, ladies and gentlemen, to the Second Quarter of Fiscal Year 2023 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 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. 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

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

Daniel Reuvers

welcome, our and second earnings Officer. operator our Thanks, everyone, call quarter call. to today's on by I'm Chief joined Elaine Birkemeyer, Financial

our And Let we sales some me with quarter our from a agenda in a Then quarter. results performance along the increased key key the provide guidance notable focus the overview call high-level and accomplishments. latest today's as second I'll remainder with focus of for the financial on the provide concluding the most with the we've months second our a start recent the results, share made quick thoughts in financial of our some I'll detail questions. for an discussion I'll our financial Elaine areas release. in press as which before in XXXX we outlook our well progress finally, standpoint of review of year operational of of on will call. drivers for greater open

and $XX.X we operating In our a led to team's sheet. revenue expectations, of improved the with exceeded leverage begin our of performance performance. XX% total our quarter growth, growth flow balance second strong ability million. to double-digit cash to let's Now another year-over-year with of that revenue quarter, generation profitability, including really deliver achieved enhancements financial I'm review to pleased that

performance driven from total product. Our exceeded lymphedema by our expectations contributions our stronger-than-anticipated revenue

to $X.X the GAAP results product $X.X respectively in with million $XX.X EBITDA. from reductions improvements $XX record Airway sales board performance generate improvement our revenues non-GAAP million. operations, across to including year-over-year of flow our performance performance million, our GAAP quarter, $X line, a increased a We This revenues strong X-year our as and history public our and our during enabled $X.X net income, Clearance us million, operating at quarterly increased million second strong and cash company. adjusted while million our million in operating $X.X financial by loss complemented year-over-year a in our X% Looking the in a Lymphedema year-over-year XX% year-over-year of to improvement in

more quarter a reflection to ended second with was Turning detailed and beginning sales and saw product perspective, improving discussion across the our field performance line, From engagement, at a to quarter. retention of representatives of performance a in we our our lymphedema we second of the compared retention stronger-than-anticipated our team. XXX productivity that first XXX of quarter the In the XXXX. end sales the sales the largely

new products benefited release of factors, qualify offer pneumatic in of a Most efforts our next-generation basic patients operational device. Entre efficiency. our began team, a and system the including productivity of of force Entre which Plus, increasing sales market the full our for tenure improved compression who Our we we continued our improve the from to introduction March, combination notably, for

with the prerequisite lymphedema to segment and important for patients development whether As introduction begin condition a this qualifies a identifying, our like the considering basic advanced this with an supporting Entre in pump focus before as Flexitouch. Plus mind, on system a our patients. of and With their reminder, many reflects payers of require increased them system engaging

and work new system with market engaged them existing market Plus to and strong then of response months very use. both with the team of patients and prescribers and in post qualified could introduce our far favorable this so during has its been its portion full by prospective the initial prescribers identify release adoption benefit with to to the and launch. Plus, seen patients the we've who connection The Entre features In sales from growth Entre and

lymphedema As vascular system a both launched lower patients for bilateral with and our a lymphedema facilitate year that last the garments treatment extremities, Entre feature of Flexitouch reminder, focus area therapeutic common related disease. to Plus ComfortEase we the to enhancements the suffering of in

treatment growth With sales continue our portfolio, to see in to in options enhanced treated vascular we clinics. these strong patients X at

and limit demos. the In our recent to make market improve reps quarters, our the reduce patient productivity we've system, bandwidth, conducting progress to reps of reducing efficiency by the market processes in record on that both their to efforts to our and allocated exchanges to and response Entre benefit team addition the from Plus medical sales including to administrative by obtaining our prescribers. operational In our documentation strong in-home continued our begun burden to sales efforts time development our streamlining

a forms I with to internal our process Medicare We've improve which, prescribing helped in May, for call this process more earnings and the at discussed interactions of introduced our its on CMS' also continued with of for of documents. for burden the a of the year, for necessity exchanging covered we enhanced simplified submission administrative an with streamlined efficiency claims along for patients the data clinicians certificate medical And as clinicians. of discontinuation reduce beginning requirement under

placements. to public experiencing and XX. of emergency product growth slowed requirements our May to Airway quarter return due X COVID-XX slowed was sales more the eligibility health in with Clearance The the the placements the their expiration With second prepublic was respect to AffloVest DME of modest saw the on associated waiver AffloVest. processing health the result This we line, eligibility large emergency partner of criteria changes

remainder to the noting quarter. our we lower guidance and in it's volume the of accordingly. be partners adjusted said, result, this that we've continued a DME As expect that second partner's now to our DME With worth grow

our in patients serve. our team advance capacity we to In we've strategy continued portfolio product Among performance. enhance with update our leadership our multiple our key and patient-centric available months, recent accomplishments, to across borrowing markets on operational Turning future continue aspects of support the to flexibility. we talent multiple execute to innovations, educate our of to further growth initiatives the addition enrich an company's and clinicians, our enhance our with increase financial senior and positioning the

these as product a items initiatives. a walk few with With further our this update in new I'll on of an beginning detail, backdrop, through

our the ago. well update Plus As full overall while to team I enhancements touched on clinicians, the and of It's we reception redesigned Entre system has had our sales its from earlier, release same a very improving is the in pleased generational patients patient introduced variety of it's delivering therapeutic March. by X been market been the it since Plus been since received system the we've -- first years to experience benefits. over of prior the generation include our Entre goal Entre with

Entre their so store more Plus LCD-based information the about with an provides system they features deflation its complete also treatment. patient user easily session. active the patients that interface their garment remove can easier features It that and Among enhancements, treatment after access to

efficient to compression across designed For those may their patients designed for an system's pneumatic treatment. was Entre importantly, controller later simultaneously, advanced our product them require patients allow treatment, who therapy, of those that with both And to important limbs more treat a Plus of bilateral achieving consistency for the was family. device require part our their

patients' migration more becomes seamless. So to necessary, Flexitouch, if

believe as our during we've feedback with initial received the in launch primary these enhancements performance sales customers. lymphedema following quarter, and the on we are well second months features our strong Based as resonating the

believe Kylee's as this physician. second app quarter, these includes patients limb version The of capabilities to enhanced the and their a the record, enhancements patients disease and skin Kylee share resource changes treatment other the then and Kylee we expand mobile additional symptoms. in lymphedema-related features with progress to that to continue condition, and During application. of easily monitor information boost utility track also continued their their measurements to for compare progression latest We our enable

XX,XXX see second XXX of unique patient adoption over There with we're a user in continuing quarter grew number increase the sequential the to second Kylee reminders, the feedback and And number are compelling includes and obtained the to patient check-ins. we a approximately and of quarter, and from to reporting a to trends downloads the bring quarter, to recognized check-ins easier first improved benefits adherence quarter. the second utilization Kylee in enhancements Kylee the the quarter of for were perspective, customer the and appreciated new on serve. these it also of both routine making and we adherence and now facilitating they therapy. during treatment patient the on clinicians consistent in XX% self-treatment growth nearly establish patients Based in downloads by strong

pleased Overall, made for of in diagnosis, treatment following very the We of the launch product and the with instrumental resource enriching been standpoint. year it an first to Kylee's the and lymphedema. look we've education, Kylee utility utilization adoption progress from development, establishing and forward as the training effective our app,

goal In were our the and extremity for garments extremity Like of our our launched our quarter upper to of of garments second we the our the addition during the ComfortEase patients. the the with team's extremity experience we pleased experience for to athletic design full lower release which initiated drew this market on design progress, garments ComfortEase these upper last overreaching treatment complete in July. improving in summer, stages prelaunch apparel

designed of make off, lighter, cooler to prior garment them were they training maleable are from therapists and daily than with put that offerings and initial on the garments to process. materials comprised patients facilitating and and extensive input ComfortEase our treatment are more Our take patient and easier

region, of breast improved therapy cancer part an survivors. therapy among the garments also to chest new Our axillary important achieving optimal provide

our product enhancements on past improving digital pace products functionality remain our quarter we of needs with of and our a progress As of treatment the lifestyle new committed the innovation addressing this strong illustrates, optimizing process. the patients, of cadence to focused

and well to manifestations Shifting our of These programs our clinician and attendees. patients a lymphedema educate for as a X,XXX also as breast to of from of underserved subjects, in events programs to related ranging awareness cancer app, introductory during we the market enabled education we clinician-focused clinician diagnosis variety Many total earn lymphedema of the programs XX Kylee covered address, on our the hosted on credits and saw a programs lipedema. efforts approximately with broadly such conditions the focused important attendees to specific in progress participation. quarter participation to modalities the education our as made continuing causes, treatment on discussion from which of educating raise second addition their

the summarized article line, publication blinded, market, an article respect study focused including of in With preference high-frequency results the the an comparing respiratory randomized a our Magazine, we X clearance June wall of industry AffloVest. published to study patient on our oscillation edition sponsored The care. on airway market firm with the product instructions trialed naive chest was and therapy. guide RT The in all at conducted for an ensure use on XX minutes proper the symptomatic devices X adults, and each independent consisted a Each of by XX hand to study settings to participant to respiratory equivalent fit. them research vest manufacturer's for all therapist devices

with AffloVest trialed compliance During they treatment, favored likelihood the devices greater was over assessed stated were preference they XX% the of prescribed. a evaluated Most a device therapy standardized to patient if each the categories. key reported other were questionnaire it of the across that participants notably, several the and patients they

believed they stated participants daily be therapy. with AffloVest of XX% would the they compliant Specifically,

increase it's also while It the and we evidence with in that body the other adds the to The with the preferred in experience its that addition, the removing found trialed. XX% patients. overall to to potential are AffloVest can support of comparison prescribers patient and AffloVest's they including of the the likely controls features, fact and portable, partner the and preferred discussions results reps existing that that of wear devices participants comfortable AffloVest features. utilize in DME preferred of completely the study this XX% In XX% operation, to researchers compliance. fit quiet their conclusion

experienced growth believe Gasperis paper following equip the building Medical we since team. this health the Brook come Forum. Board to vigorously more to Gasperis American eligible of Professor Advisory Scientific expanding our of for Dr. has an of Venous is of the Director approaches senior DME Tony Chair And we the educator, our share as Chief of for our lastly, company's While of the compete a served to of lymphedema. and care competitive unique June, innovative and enthusiastic patients, appointed added Dr. most previously Gasperis as Dr. He's University leadership Care awareness well the retirement Center dedicated from as Vein of In as at XXXX. care leader as O'Donnell. Officer Thomas was our President past universe delivering the Dr. Surgery channels Stony can well. to and

we And North In Sales Johnson more care, Sherri and led Senior Vision, America. in Endo a sales-related than for Pauls. XX-year Bayer appointed in teams team at of of our Medical President personnel also joins career course Tactile Care, her Ferstler Sales, regional Sherri Eric Johnson Vice of led VP of July, she's national Pharmaceuticals & XXX the and where sales Diabetes Mylan Pharmaceuticals. as health as she succeeding from

that additional adding revenue team to track profitability. record sales assembled. We're has and have excited richly successful Sherri a the developing join growth delivering talented we've and Medical, in to Sherri of depth Tactile teams

financial Elaine we today's XXXX updated more detail, results will our quarter Elaine? our guidance second which earnings in in along now with for review release. financial

Elaine Birkemeyer

Dan. Thanks,

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

impacted changes in launches in as our of intangible mix of were XXXX Gross in product margin material Non-GAAP Plus quarter to margins to to Entre both gross revenue XX%. GAAP was of margin down rates well by new higher to amortization and XX.X%. as gross periods, noncash Continuing labor strong the in excludes costs our compared system. XX.X% costs which and higher sales related non-GAAP and XX.X% the P&L. was related second compared growth

expenses operating by quarter decrease earnout in The in Second decreased decrease primarily operating noncash $XXX,XXX $X.X $XX.X sales asset million. or in and expenses decrease GAAP $XXX,XXX and expense. marketing a million intangible expenses X.X% and amortization to driven was a

by million million compared an increase in was Non-GAAP X% of loss our to was operating $X.X XX% income aforementioned income $X.X Operating operating The as compared million profit million. driven was a operating our in income loss well in of improvement our operating million. expenses. $X.X decrease an operating million $X.X $X.X as $X.X the gross or or million $X.X to

operating the income as non-GAAP and year nonrecurring non-GAAP earnings noncash excludes amortization our release. reminder, GAAP expenses our detailed earnout a reconciliation a As prior We've intangible as certain well operating to in in provided expenses press period.

period. million $X.X net Non-GAAP increased increase million $X interest to due $X to million in $XX,XXX diluted year. $XXX,XXX of driven on net income year, expense by loss higher a to $XXX,XXX last per to compared declined to prior million was rate compared outstanding last a average $X.XX non-GAAP or borrowings loss benefit primarily expense share. $XXX,XXX in was $X.X of compared the second to the tax year-over-year of expense, an Net year Income Other compared interest net XXXX. quarter to $X.X million

$X.X $X.X X.X% increased to sales to of year. of EBITDA or or compared last Adjusted $X.X million X.X% million sales million

Turning to balance sheet. the

of As of had million $XX prior million quarter outstanding December in quarter by compared in year net compares million driven and The to and increase borrowings in to cash as was we capital reduction XXXX. of working cash outstanding efficiency of end, borrowings. periods. cash and million prior $XX.X loss $XX.X in and improvements This in the $XX.X XX,

which which for strong fiscal was $X.X confidence million in is million and million compared the cash in a a days flow target working million to cash to X for driven $X.X record deliver operations of This more cash flow the capital of ending quarter. by to sales the a of operations. than efficiency our resulted in company quarter has last the a impressive significant $XX QX also our The in improvement of of of source in year performance quarterly $XX.X but nearly better date is cash capital working free only use years prior in Specifically, XXXX flow underscores million ability $XX second from not XXXX. primarily been has cumulative outstanding generated from we

sheet, to an X, to flexibility into agreement made the XXXX entered we term -- strides And We balance available capacity September amendment million agreement including agreement our and also our covenants. rates additional borrowing further terms, maturity our $X.XX strengthen from financial adding to expands revolving to credit existing of includes $XX the It extends availability credit our and our to that of which August our lower million. less an more XXXX. is restrictive lastly, borrowing increase favorable X, loan

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

updated assumptions our XX%. lymphedema revenue half compared range updated to of total better-than-expected of sales clearance in expectations our higher XX% X% sales to now and airway versus of expectations second XX% products prior It growth of lymphedema XXXX. increase X% guidance X% the Our products second to in XX% our guidance of clearance range and guidance the growth assumes our products XX% and to prior sales of increase quarter approximately These in for products XXXX. also XXXX reflect to airway rentals approximately our assumes

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

second Based of stronger-than-expected performance on expect million range for in of expectations million $XX adjusted we approximately $XX our profitability in approximately to million QX EBITDA XXXX and the our guidance now to generate $XX.X prior of half million. versus updated the $XX.X XXXX, to

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

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

Daniel Reuvers

needs another With enhanced as further belt believe growth recently reminder, to remain are as execution improving a which value sheet, of focused expanding incrementally products quarter of pursue field financial strategic second overall on Elaine. forward. follows: team, focused staying our a as patients committed delivering as therapy our Thanks, sales our positioned clearance to our serve and balance we through airway our innovations our we're improving and operational our X of In the lymphedema under satisfaction. operational introducing to half patient and lifestyle DME the cost performance efficiency reduce addressing to providers, optimization; continue therapy while enhancing well to going productivity strong on creation finally, respect better year, the and of with we and new digital this functionality objectives and priorities our to

we strategic to stated longer-term, and lives continuing cash demonstrate in top forward so years. our been generation We're our coming an goals growth. achieving financial many to return able line momentum impact We in double-digit profitability, towards pleased look to improving in addition as and the our sheet flow recent to strong balance XXXX have enhanced to patient

our now questions. support. to growth customers, close members past impressive and for quarter, open for like as for our And with operator, thanking this thanks shareholders their and as that, their we'll I'd line organization team an contributions the to well continued our suppliers development to by

Operator

come Adam [Operator Instructions] Sandler. Maeder question And will first our with Piper from

Simran Kaur

is on on SBP I Adam. at with sales This start specifically off transition Simran the rule. for force the want to X and the

to transition? if any, force you Is ahead? any company's color disruption, signal can for on there Just And strategy provide what looking a the the could change or that regarding details force? sales this that sales

Daniel Reuvers

Good question. Yes.

the communication about store. just an running is ensure luxury smooth people kind this that I pleased going think level X change level really got play. dialogue of because But basically transition more for VP open a to all, any that interestingly, Eric bring led in And J&J. best in to This model good that it competitive than the a and And the she like in nice of young an brought company. I think fair of succession a First did she amount of and results are was us, Sherri he in experience. of had that indicator to really, is of bringing land was and job that decades focusing She's a associate was on change people ours, to search not a a good, be able is of rep retention salespeople to able leadership. talent And She's strategy. our demonstrate senior had transition. looked some to a development. some had really to at We I good course.

think I certainly of nicely. position her all those So

I just are point leadership one I have other we lucky think that would really strong to really is team. a out next-level the

the for have years over company. been X them with Our of lymphedema X the of with with a X for the number on directors of us years and side have X us all area each been

X I with among think XX us. of the have collectively them they years

the think one I person. salesperson, still still you're is the that same. up area is still And person, our So same same notch if regional is you're manager a strategy director a the your

step to rocks So to we're going these I quite feel smoothly. across like be able

Simran Kaur

walk criteria us guess, second follow-up, deceleration the appreciate implies just updated to then, and a the I for as we the well. the AffloVest, one on see Okay, through impact it my in were eligibility surprised pretty And supplier. it perfect. I only down guess, was isolated DME significant pretty that guidance it. why to half. was Maybe changing of I sequentially And

half of So maybe takes any second the and the year. additional for puts

Daniel Reuvers

Sure.

and of point had so have when field. public health little to and PHE, implemented is a one first when to a PHE the to force, direct own life than say criteria really DME DME the out gets adopted the you're did be just just your not the bit emergency. going We the I sales lumpier. balance through one, large that obvious I it And more clear, think

established, specific -- were about this. period relax bit or about And you is X ones of specific where a criteria didn't a said criteria. going DME, there of get X-year after the had to May, the that it they May, there there more. was of And need COVID was in advantage category, was a And I this CMS was most approved CT affected. that submit early years some scan of to -- one being in relaxed this when expired So for It place. for taken think, were

pivoting they're slowed we expect So them that as think little the result. I original see to a a back we'll placements And probably criteria. bit of with

DME And to from other the -- within XX I have their because think important reps we balance top customers. the of all think necessarily want the growth seen list the maintained original or didn't their HCPs. they've largely top I of all through. criteria retrain is way our I it's that

it. a of that's background bit little on So

offsetting was to we business through I I fortunate, certainly in we the which expect continue such of and that time said, to well. year the balance the see were lymphedema think more than as strength same at our as

Operator

Margaret William line of Kaczor the from Blair. Next with question comes

Margaret Kaczor

details, that well, sense of what all QX Entre on this of Plus that increase any your start that also guess? meaningful or share much end back has purchased Entre to market accounts is How and of percentage not Entre of guess, The obviously real of doing Flexitouch nice in and guidance. with of out this behind is going wanted increased? question, And forward? I Plus, implied I over guess, lymphedema, is the I it Plus on but launch quarter, tried only quite I

Elaine Birkemeyer

both basic this advanced more again, one I'll pump it's product saw and ask moving a both we growth We and Flexitouch. it. to to pump if for into here. us. so Elaine. with quarter, in patient's Dan is pumps, -- in the payers important for the growth. we Margaret, quarter advanced basic our faster walked Many pump The before trial And an products. Entre the But with did focus fill the basic -- really require new see start a I'll a Entre first condition this across warrants category and

an important area to be in. for So us it's

in So we do reception our what drive product for that as full strength too. with guidance taking year, and both of the kind that move is focus led to think as those very of help And lymphedema as the the into the of the Entre saw, helped the portfolio We I year back that of across I half our those physicians half think, kind year. our us having product balanced was there. products Plus well entire the of we back favorable of patients that's just strength what in to up expect see our for trends the

Daniel Reuvers

about would bit a too, strength that I we've have of kind Margaret, up would that in Plus, think I Entre question add And think of given our we expect picked certainly specifics I but share, Yes. just we your share the don't that here seen recently. we to

it think positions also I well us patient our base. with

we've So continue them. journey. the with to We've to that relationship. continued of those expansion through And patients with that therapy Flexitouch, hopefully, the become basic started eligible maintain established for to their relationship that those available provide Kylee,

Margaret Kaczor

an more little second despite fourth is for that. on AffloVest side, I'll in appreciate quarter I single push like having in AffloVest comp then easier that. of the Seems bit maybe a digits on maybe half growth Okay. specifically 'XX. And the low

recovery broadening out within good do could you so you your look drivers, one curious, way are a eventually do of you're look where at deeper to lot back expect at you that you the growth? you So of as how come not I'm Or with growth just HME accounts business? that breadth? penetrating this kind just go And DME

Daniel Reuvers

Yes.

I I to certainly expect, come this one think, back. we think that

we'll that sort a they've that overcoming. the think reestablished headwind be new of I That's baseline.

others that. to We take I in have little continue and But expect a the top bit all the continued to said, there. to XX of there's put and as a do grow, in of

question think are doing continue study, is I we in I the to one. invest about think, to growth, important to first an what your of the all,

many think partners understanding that have not said growth that DME vest eligible. of have would units I a been I've with have organic the introduced As our patients largely our been but -- most by of placed otherwise we're that been probably to times,

There's study can't so at the gives no compete time. same the opportunity we think reason that I us for an binary. to not share be

So we're speak. with that's as these that reps a new tool sales equipping we

as -- we've channel universe the with coverage. big. a that we probably There's army But of it's indicating also, about the the also even that because talked think, it community. the reps I like DME is It's across is so one could reasons more sales we big use

going be couple add we going doing but kind that got few those here to coverage So think things in XX of a market add We've deserves of half. people. we're the more to the providing back that sure We're we're are that XX the to a more a salespeople. that or few make we'll

Operator

the Oppenheimer. from comes Suraj line question Kalia Next with of

Suraj Kalia

right? all Dan, you me can hear

Daniel Reuvers

you Suraj. Hear fine,

Suraj Kalia

noise. Guys, background my apologies for the

I may ask So two quickly questions. my Dan,

accounts rep, also here structures, way rep, on? noise there any how background or just And add Dan, for if utilization per should number and commission how -- we So should looking to a Maybe site, rep the in one per I have just sales could terms been of about about in changes I'll incentivize the to talked of hop revenues ask the other. baseline per pardon Dan, metrics reps, specifically, you going again. think obviously, few. a could I be

Daniel Reuvers

Sure. Suraj. is no. answer the for Thanks the on commissions question, Short

of it's that been place flat for last what in got tools think standpoint, to we as we I our that right that use couple count see. to the what we've incentives continue head productivity making the quarters. awareness the overall, goal get with think the to look that double-digit growth at place the patients. I continue metric roughly to best she's we'll a But new But of and to continue is, we've delivering to communities going right think evaluate been are the want our expand if is in I want to and a you more help from sure metric within leader

So educate the It our from more got our and more and can do rep community. to of probably liberate we to best as resourcefully education demos. sales makes development We've of time some to devices trainers patient of them that in-home and productivity. gives their continued to expanding patients of where equipped introduce We've it I sense. to able the the the reflection, HCP some salespeople be well market that's deploy the think, are

like at but granular sales this. Certainly, detail to managers a field more into we site per probably on new more metrics that think and head basis. macro and best there our referrals pay target we're call I there's accounts a accounts flat some sales with sure. seeing And those lymphedema expense up sales the probably relatively count reflections think, XX%, down year-over-year, progress for are, attention and of get But than I

Operator

Next of Zimmerman comes BTIG. from Ryan question line with the

Unidentified Analyst

This Izzy [ph] Ryan. for is on actually

I how So your updates if from neck top see large and just When this trial. trial? could of an roughly to first ongoing on And some provide wondering could the we off, any opportunity does data represent? head you expect line was

Daniel Reuvers

for the question, Sure. Izzi. Thanks

is familiar, probably head is against the are to and where So for of This standard we're tracking committed that one, less XXX-plus neck RCT care. the the patients advancing. those

we have have to XXXX. to north part months. will is XXX the expect enrollment this end of a handful first completed We hope We of somewhere enrolled by have follow-up the the of by year. of patients And the

XXXX point far, where hope any will payers. be, and the the of This that that by have believe, it on kind this of at space survivors. impact the will and results in published in have get expected head to certainly, by cancer neck the community the probably measures done, we we and RCT to So largest we

cancer that be said XX% survivors We've it's would about of and head neck.

it that a can bit meaningful frames And be certainly later little of to we us a contributor kind So there. get think into probably XXXX. as we

we fall. our when revenue were established back about kind what last made One we going of of XXXX to had we that the considerations and targets thought those be

Unidentified Analyst

Great. just And follow-up. one

seeing sales sounds your the in of engagement level? Kylee But are app the is heard it guys that really what given and on the you comments benefit encouraging. I tangible the engagement So

Daniel Reuvers

Well, I think emerging. that it's still

that able that when identify to with and how continuing be and need to communicate they're we believe be if patients, of is doing do to to device. the these able One we'll to things going well they're to graduate another

record they make an be if photos, ability think, we to and for measurements, eligible their going it when to advanced compelling, more much even would pump. their So capture their is sessions,

going is to is still this one piece from process I we of able other the application. want areas order think the that to Kylee one our expand some we're the management to and is be coming, we of that benefit expect also

way patients Our the place help can you that favorite your that line reduce actually ability whatever And your same can would engagement so that order, serve, airline format the you to and to with where you the your time, we improve order, while with app prefer. engage can at can patients with to those check your that I they status. think more change allowing time have in cost us we

a of ultimately, operational good patients a we there's that continue then of the to to the that continue to But ability to think a get still in is is meantime, expand diagnosis So that educate patients ahead. can universe the way and component exchange treatment.

Operator

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

Daniel Reuvers

Thank you, everyone.

Tactile Systems Technology (TCMD) 7 Aug 232023 Q2 Earnings call transcript