TCMD - Earnings call transcript Q2 2024 | Tactile Systems Technology, Inc.

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Operator

Welcome, ladies and gentlemen, to the Second Quarter 2024 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.

I would now like to turn the call over to Sam Bentzinger, Investor Relations at Gilmartin Group, for a few introductory comments. Please go ahead.

Sam Bentzinger

Good afternoon, and thank you for joining the call today. management Birkemeyer, Sheri Chief Tactile's Officer; Chief from Elaine and Financial me team Dodd, are Executive With Officer. .

as available from Risk may to Before to statements we current the future Form in be time results and filing and on identified our as information, no questions expectations undertake responses inherent and on cause events on forward-looking actual updated uncertainties remind like with those of publicly statements as materially today Exchange your section XX-K in be otherwise. risks Securities everyone new are that of to time our to well website. are or begin, a our those XX-Q remarks the We filings I our most based the including revise contain to Factors may of our forward-looking or our would from and obligation to with indicated, recent Commission. the result annual involve could update that management factors and differ which Such which filed SEC, report

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

turn now over that, Sheri. the to call I'll With

Sheri Dodd

earnings call. everyone, and welcome Thanks, our to quarter afternoon, Sam. XXXX second Good

strong well both top Financial in Here operating as our cash and Officer. bottom with QX me to Chief Birkemeyer, as report our Elaine improvements flow. our lines I'm across performance is pleased

we and strong and EBITDA growth over achieved XX% total QX, and million, on line, June million equivalents cash By increased with We by leverage. year-over-year focus delivered for year-over-year balance our product $X.X tipping X% year-over-year. cash $XX.X revenues X% $XX.X in second From to our million profitably Tactile representing adjusted increase, scaling to XXXX. cash increased XX, the reflecting clearance $XX.X year-over-year revenue to our of as airway revenues million. business X% perspective, cash lymphedema Specifically, operating quarter, a million increased in $XX.X of

Finally, of each for of readiness to order XXXX on investments in and initiatives and of related clinical number our support evidence These number one, revenue. Lymphedema expansion. remain key and and operations and include: simplifying commercial focused Number generation launch platform, workflow patient track. our three, development time two, on to sales accelerating technology next-generation

I'll expand first business recovery on to But the the and before of patients meaningful each earnings and the during my over to and on been a post for retirement Reuvers Tactile's as congratulate the to and work shortly, chance admirable. with X high-level of period but him Directors This member Dan I remarks. I'd his company years. the measurable stewardship begin I'd his I've of a the contributions a few first CEO of last Board through has XXXX had since to Tactile as marks well-earned and Dan in, his these call thank like Medical. dive like with impact closely pandemic we've pandemic of served

at market management care and leadership continuum my I'm in XX-year diversity The Tactile Tactile. multiple these and Medtronic. drivers. and roles & Organization, understanding and care to my at strengths disease positions. World general positions Health complex as My career access roles access well Johnson and future market informed have role states and business excited The in of spanned have for a with be Johnson the about health aligned excited this the are opportunities and

Tactile and are these opportunities growth background. at us strongly my for Fortunately, they leverage

weeks experience we CEO, get few opportunities what's the a first and stakeholders my understanding deeper for and executive where transform teams populations large diseases management very with of I've Tactile with has life-altering woefully very that to underpenetrated working still meeting underserved markets have my patient well engaging is to external and endure X every progressive and spent and improvement. senior reinforced positioned confidence to consequences with day. that as early chronic This with

significant are unmet market solid. The foundations There's a need.

to journey. unnecessarily lymphedema. successful U.S. market streamline markets Our care complicated are is The X patients symptom treatment diagnosed growing. much roughly to patients the with experience to and comprises options protracted so management. diagnosis care pathway There from The an potential million

struggling who million are people Additionally, and a there estimated an treatment. diagnosis lymphedema receive with undiagnosed to are XX timely and

therapy Finally, underpenetrated. our is

for a PCD. PCDs, therapy receive areas to patients initiatives and diagnosed programs compression lymphedema focus or will than devices, less Product to of continue with be appropriate access pneumatic Specifically penetration. clinical of market drive innovation, X%

breast, activities progressive. of include speaking our symptoms their urgency, heaviness all disease and lymphedema A and fibrosis. Especially tightness head is and pain, encouraging of for daily undiagnosed drive insufficiency, and diagnosed with There There survivors chronic neck, is of and breathing. swelling, that cellulitis, for category or venous and unmet men within no face significant it's and cancer go growing range market trauma swallowing, and patients motion, restricted patient's treatments product difficulty are issues. penetration and of that needs of lymphedema under head They pelvic experienced women accruals care other ages fundamentals. cancer the also sense living surgery. the limitations survivors. our are But chronic is beyond They cosmetic neck on and and obesity,

with bronchiectasis the and an across XXX,XXX and only undiagnosed to patients. represents X.X with viable misdiagnosis million and therapies continuous underpenetrated it growth also overlap diagnosed markets inflammation disease estimated untreated, Bronchiectasis a This to it's path large pulmonary from to is to commonly these patients our us. is cycle reality. is of too impact damage. patients, will not worsening COPD a on and to substantial, due common to the chronic but infection, also quo potential leads meaningful lymphedema, with market clear unacceptable most our to the status left mucus being be and is the unacceptable The Similar our and a our inability

at at excited I'm a company continue by points. advancing supported X our mission critical juncture, I Tactile, and see to the

lymphedema a First, leader we patient-focused proven in portfolio of solutions are pneumatic the with clinically therapy demonstrated compression therapy.

sales we a growth we is next specifics are and a offering. and for I forward The Second, experienced right and third, sharing with look advancing a standard leadership to committed more to of bronchiectasis refine care And cohesive time strategy, and patients the differentiated quarter. team portable profitability and professional you our organization. talented with have

back performance, updates of our review to commercial our quarter our initiatives remainder key for like where second I'd context, lies to of that pivot focus a XXXX. the on With and

see we're pleased despite strong the lymphedema prior growth in lines, a Regarding year-over-year comp. year revenue our product to

materialize and As this see the impact a sales reminder, expect their QX in we revenue year, we meaningfully the added to beyond. of second of reps half in more late and year

XXXX. productive versus consultants Our redesign And in-home legacy activities versus These reps non-selling quarter, patient QX XX% due increasingly reduce and by XX% aims of demos these such XX% were consultants. performed trained demos. this in-home of to to workflow performed patient demos as that by the increasingly education end are at in our are

end demos of achieving patient our of We our remain by in-home XX% by to XXXX. education of committed goal the performed consultants

the the sales versus sales terms lymphedema our headcount, second at ended XXX of quarter. the of quarter with XXX representatives we In end overall first

this we sales X.XXs in high low expect we target exit headcount in year. our While XXXs remains range, the still as to the

commercial grew nearly payers. lymphedema business our mix the quarter, in to XX%, and sales channel recovery non-Medicare growth our respect With with VA in our the progress reflecting

performance to documentation continue improve in requirements increasingly in approval for up speaking is for detail be business patients, highlights. on the was our which related to directly this Medicare year-over-year down Medicare administrators. basis onerous more wrap I about we first-class While after Medicare claims our the a I'll QX, QX

medical ability and Clearance to growing AffloVest reach fits product patients a our Airway conditions market. our expands we in to doubled more AffloVest the the portfolio the Since and our of review acquiring share business Turning both taking years ago, chronic home. ultimately and the serve force well line. channel In sales the X.X a reimbursement, profitability. by size product just growth were second the the pieces with within in of year-over-year product's to of on the see continued basis for we expiration waiver broad following to differentiated and tenured targeted the a and quarter, right portable design, May. the pleased The DME growth Airway anniversary return education are strong reach, clearance PHE

our the and patterns growth. return ordering expiration COVID of been one has we DME to ordering for headwind second patterns. era to particular quarter a to a The for customers non-PH the larger stabilize this in modest Shipments and waiver continued this DME, anticipate affected of

direct is a business compared patterns. of to The patterns our more Speaking clearance business. as to stocking Airway ordering bit sensitive lymphedema

flows the and our within ebbs distributor overall in expectation of year remains second modest half intact. expect this the for model, we improved While performance

in in DME confidence is that this to of of are Our factors, view our namely partners couple majority a grow. a grounded continuing

the we quarter. collective year-over-year from by the was In fact, the the a we that PH, This in the first basis trend most growth demonstrates continues revenue X quarter. DMEs in in impacted DME other second the if change exclude the double-digit saw the on

have successful onboarding. several of examples also partner We DME

already distributor new a ordering example, are encouraging and we online seeing QX, during volumes. For came

on partners offering as and for large the making AffloVest our of are patients We their valuable oxygen. with DME base training investments successfully a demonstrating

see who AffloVest Airway role tenured their bronchiectasis our continue the synergistic We in a expect at organization other partners Atos care. competent and very product and excel this And customer educating business their finally, to portfolio. Clearance team sales grow reps and to as distributor training of consists our in of DME highly a in and their our

to QX, growth. reps to expect and QX help we had through We this added contribute and

Before during requirements. the Earlier LCD more Medicare's turning to with initiatives, in the administering to pilot Medicare Medicare changes ultimately onerous commercial LCD. aims in established on increasing speed first changes which like we an providers coverage impacts there to the XXXX. no share e-prescribing then, and been our we while approach with MAX streamline details seeing key way records process. administers LCD the initiated compression a additional patient in pump ordering on how their our are treatment was requirements how to I'd are business and patients. to since the exchange and collect XXXX adjudicating year, for documentation And access tool, approach increasingly and significant claims we have Medicare medical This pneumatic recent an to update This this

tool While documentation the forward-thinking change e-prescribing in investment tech not approach documentation. was to a our flexible clinical demonstrates to XXXX automating and approach Medicare anticipated, our

are with the year e-prescribing this to platform more pleased the advancing are business later broader deployment early of meaningfully anticipated with We beginning our pilot results in of XXXX. impacts the and our

be working partners, requirements professional to with CMS we'll advocate pilot, In and directly meet that therapy. e-prescribing to closely our unhindered addition MAX and patients our expanding access our for the societies, LCD the clinical Medicare for for clinical

change this While year us strategically the by to XXXX full our of are million. approach current and revise operationally half revenue addressing to back in of $XXX the in the revenue the the $XXX to MAX, we potential on our guidance year million impact assessment leads to documentation

There and the As growing. processing. no our speed implementation products, to is technology earlier, we of have number demand mentioned lymphedema streamline for underlying to the documentation order started and change patients the with lymphedema to diagnosed is of

we leader, help plans mitigate As action and headwind. this the market recent to have resources

that I our initiatives in there key want beginning As call, of the mentioned are I highlight. commercial to XXXXX

related workflow and technology sales order is first in operations. investments and The

investments, to the are patient and to order our tool, addition the enhance as reimbursement simplify other clinician tech process continue which we experience. In to well advance and designed e-prescribing as and

efficient order and method new Last sales, solutions tool quarter, edge and our investment we transitioned insurance, our partnerships leading time for which operations simplifying completion. workflow in more Last we patient with faster also a contributes to verifying plan new to electronic marketing, tech companies quarter, of to and AI to a introduce shared CRM supporting service.

track to end year. the of tool at We launch are the CRM the with these plan and initiatives on

and well as We infrastructure serves are as the design patient internal our clinical ensuring enhancing business experience. our its modernizing and operations

call for early we the of we centers innovation Product and important on innovation. The excited reached approval are for which commercial continue remains XXXX an to second this FDA been lymphedema today. early to core and fall we XXX(k) year a our quarter, few will And details with be platform, share business. around second therapy milestone in key next-generation to initiative has track our an introduction, of product platform, Nimbl the

digital and small consumer outside home. Nimbl patients. more connectivity our friendly of the to track product addition also next represents therapy of results and portfolio, on to pump team. experience to entry-level additional Kylie progress commercial sharing enabling to patients care It's with our an their app, I home even our a at designed exciting bring plus the forward patients and generation their are quarter. and look launch lightweight is details to providing an entree way Nimbl features share our Nimbl to next the when was specifically and portability the

Farnex plan very with and key reflective initiatives processes we of quarter, generation. the randomized analyze simplify controlled data the first-of-its-kind wrapping to published and Last Finally, patient assessing and excited are there which or Journal likely X-month business and U.S. of communicate meeting XXXX. clinical investments evidence. study strategy their clinical are They patients the trial patients employees XXXX XXXX about enrollment over investments our up leveraging ensure for in and ever done share also shared lymphedema. to lymphedema. patient these completed of April from Flexitouch lymphedema optimized pleased in too. momentum our our in the head follow-up. I'm new Flexitouch patients We cancer commercial experience. on a neck to likely Surgery. reflect perspective, been largest are on to are in conducted evidence Today, oral update existing randomized details we develop and and in the innovation early milestones to remain work XXX,XXX these trial I'm commitment head experience largest excited which in XX% my complete, study neck the cavity These our Once our VA, scale. and of in our will results and and an of our that's was clinical capitalize XXX is about product them, clinical among I the patients, proud are we are and strategies the of Vascular the lymphedema This our are on

over Now on update our an Elaine more it turn and our outlook. I'll review XXXX of a financial in quarter results for to second detail

Elaine Birkemeyer

increased entree Thanks, GAAP year-over-year to By or on a quarter million million. increased of clearance financial to SherI. our the million. XX.X% continuing includes rentals of of basis. million and Total and million, references revenue our and results X% which in second Unless increased line, margin P&L. noted all $X.X $X.X product XX.X% to the and quarter in to or or million X% $XX.X down lymphedema second products, the $X.X systems, includes which of Flexitouch to sales Gross $X.X are otherwise, second Airway products, X% sales $XX.X our XXXX. AffloVest system, quarter was revenue compared

periods, was costs, which gross our prior lower intangible non-GAAP XX.X% the in in reflected year. excludes compared XX.X% primarily was -- amortization Non-GAAP to in margin revenue. improving increase gross collections both margin, noncash attributable in warranty and The to manufacturing to and

These expenses increase in in reflected and Second increase and GAAP operating million research the increased $X.X or and accounted in technology general partly intangible to million increased Strategic expense. by income $X.X were noncash expenses. for administrative $X items investments asset a million of $X.X marketing quarter and in expenses, million The increase million. to expenses million $X.X reimbursement, million. X% a amortization approximately sales million in operating Operating change around $X.X $X.X or and XXX% a offset expenses development $XX.X a decrease $X million increase.

$X.X income million. Non-GAAP or $X.X operating XX% increased million to

diluted on primarily XX% income interest a our expense, Net $X.X million $XX.X net $X.X compared increased Non-GAAP by reconciliation and cash XXX% million driven borrowings compared equivalents expense With $X.X or to reminder, increase the had of or Adjusted net EBITDA increased increased interest our loss $X.XX and to at cash $X.X earnings our diluted press million, to the primarily million. or as $X.X at to to $X.X million in XXXX. $X.X revolving million XXX% nonrecurring December cash as $XX to XX, as release. line share. sales. sheet, million million. $X.X increased $X.X by XX% per $X.X of compares to to The a income of GAAP position taxable a or We've credit X% to cash and to of $XX.X noncash respect expenses. or Other or intangible of tax $X million a of As increased compared $XX.X $X.XX we income million outstanding XXXX. Income million lower share the retirement of of higher per year-over-year driven balance excludes detailed sales operating was to of increased and or due outstanding in non-GAAP borrowings $X.X million end income. income million certain net provided our in higher million million This and quarter. amortization million expense the of well at income operating non-GAAP end to

was working and income growth in cash driven our of operating capital. by a an combination increase net

Turning of to outlook. our a review XXXX

the now $XXX in million approximately total approximately to total to guidance XXXX to in representing to compares growth year-over-year. million, range of $XXX revenue This the X% growth $XXX million million, X% range $XXX year representing to expect revenue year-over-year. XXXX, the For full we of of XX% previous of X%

reflects guidance that are from Sheri increased the Medicare's discussed earlier. impact documentation Our updated requirements we seeing

lines that total our XXXX assumes in and clearance lymphedema similar in range revenue Our will a growth product range. both guidance be airway

share GAAP year year. advance low million For to investments we count XX% modeling we approximately purposes, fully digits of and a of of rate approximately gross XXXX, to million, for $X.X average margin as tax expenses our operating shares. income now XX%, the XX increase expect diluted tech-related Net interest be our the our approximately full GAAP weighted double throughout a

of million expect to $XX in adjusted $XX generate of guidance compares to EBITDA million to with now previous million. progress As XXXX. a million continued we our $XX $XX adjusted This improving of to profitability, approximately EBITDA result

$X.X items, Our approximately certain of $X $X.X million. stock and depreciation expectation including million, assumes intangible adjusted million compensation of approximately amortization EBITDA noncash approximately expense of expense

With turn for call to that, closing I'll the SherI? some back remarks. SherI

Sheri Dodd

excited what close, QX Elaine. pleased the textile. we but more with about are holds Thanks, even our To performance, future for

already We underway are initiatives to fortunate to achieve have and place in well-defined strategies them. actionable

several the refining our deeper goal and I'll and with our new of leadership field sustainable weeks growth. communities elements strategies the continue and identifying with salespeople, existing of our patient in having team, connecting and with to and time months, opportunities driving with be next profitable physician key spending Over the conversations our

Importantly, share allocation in to our I also coming plan to on capital detail greater quarters. approach the

we look to increasingly benefiting allocate value. to expect but strong on will generation As sheet, and be our reflects free ways to capital business continue. forward on the also Elaine mentioned, and of flow, I in we to the shareholder are prudent options only opportunity management, In leveraging This from to trend a an our coming not months, maturity of increase cash providing evaluating our focusing we various cash several our strategy. updates and balance

the operator, that, questions. we'll for call now open With

Operator

Margaret with [Operator Instructions] William Ms. Our first Blair. question, Kaczor

Margaret Kaczor

first. how impacting and QX you touch well likely Maybe I'm that side, was Medicare But headwinds were range the seasonality quarter this the that as guidance correct think first. high some all kind wrong, the and as that on should $X those like, to of more and million on of Flexitouch. offset about QX clearly able maybe The versus it wanted decreased if on to me sounds end, low of we

these an us it And to a we -- and question. sense can more this impact? of as getting how it a do it's elements to loaded when do expand. you Is some we these XXXX start have maybe expect trends But documentation normalized? -- seeing . worse? sorry, be Are give you then is of So

Sheri Dodd

question. definitely anticipated Margaret, Thanks, and this

X let components. break So down me it into

been So documentation dispatch. the PCD change a really requirements in There's for distinct coverage.

the this documentation to assemble this PC mentioned which change So completion. XXXX increasingly documentation, fact, This not time demonstrating given Medicare has And before, requirements. order LCD is which is to documentation, approach all from us. the is impacts to just surprising not manufacturers, really as just I onerous more elongates requisite its time Rx the requiring increased the

So this new is a approach.

approaches. of Speaking

facts. that's So

the has approach Our looked following.

First is operationally. this we're strategically both change interpretation and addressing

more technology professional e-prescribing So strategically, cetera, such and with societies, as go tool We policy with then operationally engagement CMS MAX, level, into can too. that detail about shared. this I investments that, with et

technology, to in plan back tool, and into e-prescribing to implementation we're go we this the later expand pilot With well year half our that of of the more that nationally.

that's second the share. want I to component So that

for On the more I an we a as that turbulence third, of and versus requested concrete headwind. emphasize But change really see documentation I'll unmitigable turn this it want over Elaine examples to CMS. with to

and can So the adapt and experience U.S. in reimbursement confident XX%, me It's our non-Medicare you over in had and and we hopefully to place, strategies years business med device XX farm reimbursement. of our readily business environment. action solid. have I've grew and that are fundamentals really to both appropriate all comforting dynamic I'm plans we and really of this

to asked You what policies difficult in anticipate while expect. we can LCD, interpretation dynamic. this prepared. changes going And long-standing normal. to like a it's be new sudden are Medicare policy this really we're for about always And is

technology therapy, patients and takes investments adjust that sorry, It our and with in and to in to therapy whatever work to strategic meet get for everything position the Our requirements are to be time out -- things PCD Medicare place. strategically CMS be operationally there, some to to will are criteria. MAX adaptive clinical approach designed modernizing

anticipate give asking of good benefit in seeing But let we'll first and And about her more news that. talk this earlier Elaine year. more start the to by But some the is and through. we can timing started examples. come pilot me more the

So the appreciated. looks of the change context what like are documentation

Elaine Birkemeyer

Yes.

to the we're as therapy. our learning need we to trial that both routine therapy weeks documentation adjudication have past, X why. also in has occurred conserve we now audits the measurements as extends documenting -- start do And longer conservative if in that been through And therapy than fact, sufficient. what was I well as dates, has think on or to dates. long-standing a is requirement to probably always need the need regular document claims end confavro those And and

as into can then delayed medical doesn't records, imagine, treatment of patients. our part, on always which lot the that you So physicians cause and can a to rework, both these specificity the make it really

capture e-prescribing And first a able are so that's a platform, And believe why the which be policy in time then speedy we important. these that then doing treatment. appropriate addition very this perspective, access are is that patients also onerous that payer really requirements getting to just we're the work facilitate will from that we to detriment to Medicare to

Sheri Dodd

thing you only, correct so . Margaret, is mentioned Flexitouch that basic One pumps, for and whether I this PCD want or you advanced. to just just all they're

Margaret Kaczor

And well. question appreciate touch your guidance then great. QX? to the QX, just that I Okay. $X for million think we high on then about end, on the And should margins low the obviously how were that. as

Your peak the plans? expansion in is on margin generation, think we referenced update think increase story that cash great. this we give of about as But about I you'd those LRP sneak later. and you us can future you in of XXXX, us know any cash as an kind the give

Elaine Birkemeyer

kind see and dynamic fact being typical QX the QX plan that by the And or kind QX So was of Sherry bigger this touch we quarter we and less think continue I change. here. co-pays cadence I of less would how would driven a really bigger in than would on does say, Margaret, about as think bit quarter, then kind that little growth and question progress no, to year our thinking I as back of half again, a their we're of I'll a people you asked the along become I'll question, a see this normal sequential and sort to address is the

So we that wouldn't in regard. expect anything different

Sheri Dodd

continue where LRP, informed I not stakeholder just got have As discussions any reiterate an information to time to new be need really where to guess, time plus regarding that's and and relates go. more both can the more give and the a guidance for going to CEO reduction, X talk reflection I the to XXXX. perspective or been analysis. it And we and going the field, LRP month we'll given I then days, little into provide -- in bit to X And this role. in just collect and specific, update understand we the internal to constituents more are having to require we so

profitability and targets our XXXX free but mirror that shared, encouraged increased really below profile the cash do were as flow to revenue that MAC out the set am documentation. pacing I in we've due is

ahead. also which more again a view more the the I'll us this of with So is you months let of next chair, expectations time Medicare approach and just XXXX with conservative be surprised the and in The about me or that is address comment because position really the current don't in of on Margaret, and specifically to bit the LCD but in kind aggressive. landscape, guidance our current just use we're asked better little the documentation this quarter I words, putting fit out think, really maybe requirements understanding a on guidance. based didn't

address to time ourselves or position, better operationally, feel get really Medicare but XXXX. need this we the in on appreciate any So a strategically chance it's penetration. growing got market, revenue, it's And a a issue, comfortable I cut in foundation but good business we've And that the X% is and updated to range an and we unmet that to LRP of on we're also strong with. high provide feel fundamentals, need, this I going under guidance really to both more

Operator

is Piper Our from Maeder next Sandler. with question Adam

Adam Maeder

on to Medicare Congrats And on QX follow I results. up Sheri, the role. the welcome, documentation the and requirements. on new wanted congrats

points Just a there. of couple of kind clarifying

bit missed when a then factor change? the be I of more elongation to this of and this when in funnel. funnel, then you of terms patient start or the many if that put more . little of Can terms script really order get be patient sorry what granular there? to And I of how kind mean, curious change to -- first, did helpful So you I a this into the remarks, a does see the specifics have go days, in did completion would kind in I'd And the follow-up. there? prepared around

Sheri Dodd

first I'll speak when all Sure. to go trend. this to kind have a started one-off of Elaine to from a

Elaine Birkemeyer

related our down this documentation think, great what closely results. cash to requirements have in improving to was what's monitoring as kind audit that's more require routine free we in QX, needed increased to criteria growing and all kind cash this year know, stricter of been to practices. I as earlier And our a we and our fact, accumulate. success working started been denials of to in this to of, evidence for evidence attributed flow. quarter we that see well And like So that you And adjudication some lot AR, been documentation processed reflect and has as mounting realized of what orders what we said, has change continued to growing we and be And there. of really, of I

we really was in that build when quarters QX it So it. with happening the a and would sort implemented X of, across I change say,

Sheri Dodd

and whether that well simplify again, thinking providers. little to say, as e-prescribing as terms will environments Is bit the in change. insightful realistic policy expectations the about to in relates we are there's our for team wanting a as quite of very I process, forward it But our Adam, a going both just getting also to for that automate What place, talked tool. And

pilot in going are. us requirements we and to whatever that's help the adapt this policy now tool so adjust have to And

of X can we are know from a What need. that is of the get right the that we've we couple do got the is things to specificity tool the documents pilot

a on we And tool that this that again, works. average. the And do laying of who when groundwork e-prescribing our the we product vendor partner appropriate know pilots, so for those the tool And shipping the use the that the apply documentation pilot pilot the saw PCD. orders went faster on through so patient how to versus overall we're first to we're actually actually of

times. can that we that when place So in we confident are shipping see will that faster get we tool

on as both the So the using on future overall experience. this tool been as shipping times is our feedback well has this positive, early and

Adam Maeder

And Congratulations to bit the follow-up, ask That's a just approval. about Would helpful wanted about the strategy. Nimbl. on commercial very hear more color. for the love little to I

more do have limited to going product to I capacity for think about nimble, the And guess, that customers you or in Do fall which how any this any impact specifics picture, launch us maybe with product? bigger market . new restrictions I target? the But just I constraints on the just can heard business give you you around are release. lymphedema bag? think early

Sheri Dodd

on you a of the another to joining great new I'm Adam. is because Thanks, Yes. XXX(k) of asked heels platform. CEO be as glad approval this time

on demo provider. And to be to the to space the and introduction limited you correct. The Kylie digital of technology sustainable to are entry-level meets got We smaller. part their going with very on is confident this a to our are their lifestyle patient growth plan, started with they connectivity focused always the doing directly Owning lymphedema fall strategic. on continuum. are are the and pump, patient data attributes, So altogether. that platform with this innovation patients patients. that where app, I nimble going really I'm in bring nimble it's new appreciate friendliness great their to a lymphedema and to platform We're basic launch going It's and share this and and allows care progress. that's the we're excited with Kylie portable. this product be the

other and We'll across our entree we'll then expand with will patients, starting have innovation patients, that's pump road continue So place. that a to our offerings. be that basic the map

We're Right now. our any don't now, exactly to to coming and on XXX this demo built, geographies in constraints I targeted P&L, P&L. accretive at go it. there. then adding side in also we're it We've or confident a providing patients our that to full launch. ready to think, really units I going looking go be specific launch it's over forward as portfolio to our and what to is all board need, we'll see and going to the be manufacturing to And operations be limited of

in the good sharing QX. details to launch we're looking place and a forward So in more on

Operator

is Our with next Ryan BTIG. from question Zimmerman

Iseult McMahon

on Izzy Ryan. is for This

new start this some you walk So a of appointment month you position? you, can us ago, given Sheri, about your have goals just for with through that near-term your to .

Sheri Dodd

Certainly.

Ryan. sound didn't You like

So customers meeting demos with product the month question. into I was engagement both been operations. in, I leadership team, externally. yes, plan but financial the just Last deep have no, with so week, for and executive with not just senior Board team, the Yes, and deliberate very Thanks thanks time for spend joining X and the a the to intentional call. internally management

intentional taking we in go So the that I've opportunities of very pain to both really points, our approach described and with in Medicare where been business. a learn we the issue biggest some is background. have a this this as and fortunate

are strategies continue and dive XX energizing me to put are what on days. see a new what been and to expand But of and it's the is to looking and in So we'll we strategy the foreign the refinement really goal can to language very first forward. opportunities with not those continue the our

Iseult McMahon

the generation been and cash why repurchase Great. have share you And just given the the sheet at guys able levels, strategy? strength a to today balance right these isn't of the deliver,

Sheri Dodd

Yes. we thing then prioritizing we sheet, cash are in while prudent to when another and generation the of for nice invest great can have. initiatives. scale excited tighten we And really tech business, demonstrates you we reflects sit, we where to cash is growth management, can that you on cash we profile Thank free again, efficiently in prioritize, can also can't it increasing nice the we shareholder join about Because financial and take road balance continue. the improved not cash it time CEO but this of it maps expect the and only can noticing. value. is flow maturity invest The and where we really is

lot options. of the I'll one position us going all in to a bit nice of be you. it really in be little is more of I'm to buyback time update on sheet does have levers, the and a a afford we to those, with So those need balance also which it's as but options But be share of chair And lot on really before the evaluating we laser-focused of choices a of coming definitely able in start in pulling the front us. months,

Operator

Kalia question Suraj is next from Oppenheimer Our Company. with &

Suraj Kalia

me right? hear all SherI, . can you

Sheri Dodd

I Suraj. Yes, can,

Suraj Kalia

questions. So Sher, of a couple

I tool. the and entering in wanted or it still e-prescribing make guys I I someone sure just information, to you surgeon just workflow these you back controlled First, tool. and of by do to determine to from the basically the -- . for is I wanted authenticity is who point understand controls e-prescribing then the how terms that or Tata. of the lymphologists or to understand sure make prescribing prescribing it the comes the tools been contact your initial vascular basically, this ROI

Sheri Dodd

Good I'll Elaine questions. clarity some here, a on this. have team I'm I'll to add chance glad and with tag

don't So we prescribe. first,

so sure look the place through is as us, prescription the all the documentation from can surgeon And that or make going actual inpatient generate. prescription to to the when it's move where that's So comes oncologist. it demo either come the look to that to an do over then order. then comes from we prescription going to the is vascular and in then And we that

is it's physician. the tool What interface actually an with the does e-prescribing

prescription the required, you So then if the and it's coverage. who's using the will, requirements reimbursement tool are documenting the and for for that physician specific

write that go not put merely that's that prescription all only to don't documentation that's through allows can the kind we and the over it that talk saw process. I'll it as so move as I'll order, So allows the the tool physician We prescribe is but the about have Elaine first-time approval. we how to a -- investment. business to to get a this it claims ROI turn to the an of Elaine

Elaine Birkemeyer

the were little just tool, think, I prescribing. could so be confusing because they e-prescribing a to clarify, Yes. And

So also it but it's prescription, record collects medical all the appropriate a information.

we remember, our memory everything and as a out, that higher to get that would and is And again, more physicians it day in rely has And quite get to the remember high. on higher condition forget today, not they more to is requirements and element becomes difficult. likelihood an commit that gets so day documented. So to this treat X

is can you can and it, really the put we how get review information, to see the got back we fields so we missing. could realize go something The and that it in forth. We've back there. we control having to tool. e-prescribing this And Again, and delay send

of what for. always So are it's and again, reflective we other payers Medicare can make sure looking commercial

party. a all But perspective, third that time. So we capture independent from the appropriate security of is information and the first

along as right the ensures throughout level the the confidentiality information as everything ensuring from So integrity has that process, it both entire a of right process. well

platform easier accelerate As terms at the we -- talked saw we as far about looked in to We we make investment we've as in a lot revenue. what as and know of ROI, it far it prescribers. really for traditionally that ability

treat are We to patients. more able

in expect from have back you this if because look as it with we able So comes line, to can time. both at that we mention, less office also a to perspective, the order will be we everything top touch first the

reimbursed have perspective, paid comes need of you getting and from you if your then likelihood And a that everything it third, collections higher.

different has investment. this ROI really the is of it couple a places So where generated from

Suraj Kalia

my Got question. And follow-up it.

handed a like It the And of externally. COVID, was So lot after of the handled in-house now even external training was salespeople out SherI, a seems being reversed, consultants, arguments virtually during and by or COVID dividends. training little was i.e., one by again. yielding

the bogey, . how presumably you the understand training of can half terms all that? reach the So us the XX% is help training rationale What outsourcing in of you'll versus

Sheri Dodd

Suraj. Thanks, Yes.

So I think this might be helpful.

it's So outsourced. not first,

work they both is it demos was selling type well prior patients. the old that as that done in-home our as will, -- training for of did in if the model, an you the sales did reps So

And were things. that other these on and about so with dealing engagement if physicians they think -- it's you a patient plus

education or patient are development developed, the but consultants, so workforce PEC new was And called these of a employees. our

And skill their going with education out and patients. in patient are consultants so set education is the

with the going And of alleviates patient which and if kind demos patient, in-home will, doing so from the they're non-selling doing, the out you cells reps activities. directly

they our employees. really Tactile So are clear. employees. They I want to are are be These trained,

and to that we're productivity doing consultants change these reps the have engaging sales sales our had activities rep take we a that goal were off their education mix so of those be the the the non-selling ones in patient And trained patient. activities with plate and

the -- this patient by XX% end patient done by year our education is to patient goal our our in-home have those so in-home of demos consultants. And of

And went we're year XX% XX%. that And so had last we happen. from then quarter, We QX. in seeing this to XX%

get patient is to goal education in activities. reps Again, our helpful. So the patient which I more consultants the demos, in-home productivity year to hope selling of the can our this at during been that's end the employees, XX%. help have

Operator

This questions for you. are time. Thank Thank at participation. no this your today. our for you conclude does further conference There

may disconnect lines. your You . now

Tactile Systems Technology (TCMD) 5 Aug 242024 Q2 Earnings call transcript