Q3 2024 Tactile Systems Technology Inc Earnings Call Transcript
Key Points
- Total revenue in the third quarter grew 5% year over year to $73.1 million, indicating steady growth.
- Gross margin increased by 410 basis points year-over-year, driven by lower material costs and warranty expenses.
- Adjusted EBITDA grew 39.3% year over year, marking the 10th consecutive quarter of improvement.
- Cash and cash equivalents increased by $8.5 million sequentially, reflecting strong cash generation.
- The company is optimistic about the upcoming change in Medicare coverage policy, which is expected to benefit both patients and business operations.
- Revenue results were below expectations due to increased documentation requirements impacting sales rep productivity.
- The lymphoedema business growth was slightly lower than expected due to Medicare documentation challenges.
- Airway clearance revenue was affected by uneven buying patterns from DME customers.
- Operating expenses increased by 16% year over year, driven by strategic technology investments.
- The company had to revise its full-year revenue guidance downward due to ongoing challenges.
Please stand by. Welcome, ladies and gentlemen, to the third-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'd 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 factor section of our annual report on form 10-K, as well as
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