On August 5, 2024, Tactile Systems Technology Inc (TCMD, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. Tactile Systems Technology Inc is a medical technology company engaged in developing and providing medical devices for the treatment of chronic diseases. The firm's proprietary platform includes the Flexitouch system for lymphedema patients, the Entre system for chronic swelling, and the Actitouch system for chronic venous insufficiency patients.
Performance Overview
Tactile Systems Technology Inc (TCMD, Financial) reported a total revenue of $73.2 million for Q2 2024, marking a 7% increase from $68.3 million in Q2 2023. This growth was driven by an 8% increase in lymphedema product revenue and a 2% increase in airway clearance product revenue. The company also reported a significant improvement in profitability, with adjusted EBITDA increasing by 49% year-over-year to $9.1 million.
Financial Achievements
Gross profit for Q2 2024 increased by 12% to $54.1 million, compared to $48.3 million in Q2 2023. The gross margin improved to 73.9% from 70.7% in the previous year. Operating income rose to $5.8 million, up from $2.1 million in Q2 2023. Net income for the quarter was $4.3 million, or $0.18 per diluted share, compared to a net loss of $0.1 million, or ($0.00) per diluted share, in Q2 2023.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $73.2 million | $68.3 million |
| Gross Profit | $54.1 million | $48.3 million |
| Gross Margin | 73.9% | 70.7% |
| Operating Income | $5.8 million | $2.1 million |
| Net Income | $4.3 million | ($0.1) million |
| Adjusted EBITDA | $9.1 million | $6.1 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Tactile Systems Technology Inc (TCMD, Financial) had $73.6 million in cash and cash equivalents, up from $61.0 million as of December 31, 2023. The company generated $13 million in operating cash flow during the quarter. Outstanding borrowings under its credit agreement stood at $27.8 million, compared to $29.3 million at the end of 2023.
Company Outlook
The company has updated its 2024 financial outlook, now expecting full-year total revenue in the range of $293 million to $298 million, representing a growth of approximately 7% to 9% year-over-year. This is a slight revision from the previous guidance of $300 million to $305 million.
"We are pleased with our second quarter performance, delivering total revenue growth of 7% year-over-year and significant improvements in profitability, reflected in a 49% year-over-year increase in adjusted EBITDA," said Sheri Dodd, President and Chief Executive Officer of Tactile Medical.
For a detailed view of Tactile Systems Technology Inc (TCMD, Financial)'s financial performance, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Tactile Systems Technology Inc for further details.
