Tactile Systems Technology, Inc. Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended: March 31, 2024

Press release · 05/07 00:26
Tactile Systems Technology, Inc. Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended: March 31, 2024

Tactile Systems Technology, Inc. Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended: March 31, 2024

Tactile Systems Technology, Inc. has filed a Form 10-Q for the quarterly period ended March 31, 2024, with the Securities and Exchange Commission. The company reported 23,762,164 shares of common stock outstanding as of May 2, 2024. The financial report includes sections on financial statements, management’s discussion and analysis of financial condition and results of operations, quantitative and qualitative disclosures about market risk, controls and procedures, legal proceedings, risk factors, unregistered sales of equity securities and use of proceeds, defaults upon senior securities, mine safety disclosures, and other information.

Overview Tactile Medical is a medical technology company that develops at-home solutions for chronic diseases like lymphedema, chronic venous insufficiency, and respiratory conditions. Their goal is to improve patient outcomes and quality of life while reducing healthcare costs.

Their main products treat lymphedema, including the Flexitouch Plus, Entre Plus, and predecessor Flexitouch systems. The Flexitouch Plus received FDA clearance in 2017. These systems represented 86% of Q1 2024 revenue.

They acquired the AffloVest product line in September 2021 which treats respiratory conditions like bronchiectasis. AffloVest sales made up 14% of Q1 2024 revenue.

Tactile Medical sells their lymphedema products directly to patients and providers in the U.S. AffloVest is sold through respiratory durable medical equipment (DME) providers.

As of March 31, 2024, they had 269 sales representatives for their lymphedema products and 17 specialists supporting their respiratory products.

In Q1 2024, Tactile Medical generated $61.1 million in revenue and had a net loss of $2.2 million, compared to $58.8 million in revenue and a $1.9 million net loss in Q1 2023.

Current Economic Conditions General economic issues like high inflation, market volatility, rising interest rates, increased unemployment, and potential recession may negatively impact demand for Tactile Medical’s products.

Results of Operations

Q1 2024 Q1 2023 Change
Revenue $61.1 million $58.8 million +4%
Net Loss $2.2 million $1.9 million +17%
  • Revenue increased 4% year-over-year to $61.1 million
    • Driven by 5% growth in lymphedema product revenue
    • Partially offset by 4% decrease in AffloVest revenue
  • Gross margin remained steady at 71%
  • Operating expenses increased 2% to $46.4 million
  • Net loss increased 17% to $2.2 million

Liquidity and Capital Resources

  • Ended Q1 2024 with $60.7 million in cash and cash equivalents
  • Cash from operations was $0.9 million in Q1 2024 compared to cash used of $0.5 million in Q1 2023
  • Have a credit agreement with ~$28.5 million outstanding as of March 31, 2024
  • Believe existing cash, cash from operations, and credit agreement provide adequate resources for at least the next 12 months

Future Outlook

Tactile Medical expects continued increasing demand for at-home chronic disease solutions. They plan to grow by increasing investment in their sales force, clinical research, and new product development.

General economic conditions like high inflation and potential recession could negatively impact their financial results. They also face risks from competitor responses, clinical trial outcomes, interest rate hikes, supply chain issues, and more.