Q1 2024 Tactile Systems Technology Inc Earnings Call Transcript
Key Points
- Tactile Systems Technology Inc (TCMD) reported a 4% year-over-year increase in total revenue to $61.1 million, aligning with expectations and providing a solid foundation for the 2024 operating plan.
- Lymphedema product revenues grew by 5% year-over-year to $52.3 million, demonstrating consistent growth in this key product line.
- Adjusted EBITDA saw a significant increase, doubling compared to the previous year, indicating improved profitability and operational efficiency.
- The company successfully managed a rapid response to a cybersecurity breach, minimizing impact on operations and demonstrating strong crisis management and resilience.
- Tactile Systems Technology Inc (TCMD) is making strategic technology investments to enhance operational efficiency and customer service, including piloting an e-prescribing platform and planning to introduce a new customer relationship management tool.
- Airway Clearance product revenues declined by 4% year-over-year to $8.8 million, reflecting ongoing challenges in this segment.
- The company faces ongoing pressure from cybersecurity risks, as evidenced by the need to swiftly respond to a third-party technology provider's cyber event.
- Despite overall revenue growth, there was a noted increase in operating expenses by $1.1 million or 2.5% to $46.4 million, which could pressure profit margins if not managed effectively.
- The net loss increased by $0.3 million or 17% to $2.2 million, indicating challenges in achieving net profitability.
- While there are strategic investments in technology and staff, the full benefits of these investments, such as sales force productivity improvements, are expected to materialize more significantly in future periods rather than immediately.
Welcome, ladies and gentlemen, to the first-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 Bensinger from Gilmartin Group for a few introductory comments. Please go ahead.
Good afternoon, and thank you for joining the call today. With me from Tactile's management team are Dan Reuvers, President; and CEO, and Elaine Birkemeyer, CFO.
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
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