Q2 2024 Tactile Systems Technology Inc Earnings Call Transcript
Key Points
- Tactile Systems Technology Inc (TCMD) reported strong Q2 performance with total revenue of $73.2 million, representing 7% growth year-over-year.
- Lymphedema revenues increased by 8% year-over-year to $64.7 million, and airway clearance revenues increased by 2% year-over-year to $8.5 million.
- The company delivered a strong adjusted EBITDA with over 49% year-over-year increase, reflecting a focus on profitably scaling the business and operating leverage.
- Cash and cash equivalents increased by $12.9 million in Q2, bringing the total to $73.6 million as of June 30, 2024.
- Key commercial initiatives for 2024, including technology and workflow investments, development of the next-generation Lymphedema platform, and generation of clinical evidence, remain on track.
- Medicare's increasingly onerous documentation requirements have negatively impacted the speed and access to treatment for Medicare patients, leading to a revision of full-year 2024 revenue guidance to $293 million to $298 million.
- The company's Medicare business was down on a year-over-year basis in Q2 due to these documentation challenges.
- The expiration of the COVID-era PHE waiver affected ordering patterns for one of TCMD's larger DME customers, creating a modest headwind to growth.
- The company experienced a decrease in overall lymphedema sales headcount, ending the second quarter with 264 sales representatives versus 269 at the end of the first quarter.
- Despite the strong fundamentals, the company acknowledges that the Medicare documentation issue represents a significant challenge that requires strategic and operational adjustments.
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.
Good afternoon, and thank you for joining the call today. With me from Tactile's management team are Sheri Dodd, Chief Executive Officer, and Elaine Birkemeyer, Chief Financial Officer.
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
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