Tactile Systems Technology, Inc. (TCMD) Bundle
A Brief History of Tactile Systems Technology, Inc.
Company Overview
Tactile Systems Technology, Inc. (TCMD) specializes in the development and manufacturing of innovative medical devices, focusing primarily on lymphedema and airway clearance treatments.
Recent Financial Performance
As of September 30, 2024, TCMD reported significant financial data:
| Period | Total Revenue (in thousands) | Net Income (in thousands) | Gross Margin | Operating Expenses (in thousands) |
|---|---|---|---|---|
| Three Months Ended September 30, 2024 | $73,093 | $5,155 | 75.0% | $48,006 |
| Three Months Ended September 30, 2023 | $69,586 | $22,299 | 70.9% | $41,370 |
| Nine Months Ended September 30, 2024 | $207,399 | $7,244 | 73.4% | $142,653 |
| Nine Months Ended September 30, 2023 | $196,771 | $20,313 | 70.7% | $132,885 |
Revenue Breakdown
The revenue breakdown for the three and nine months ended September 30, 2024 is as follows:
| Product Line | Three Months Revenue (in thousands) | Nine Months Revenue (in thousands) |
|---|---|---|
| Lymphedema Products | $65,282 | $182,278 |
| Airway Clearance Products | $7,811 | $25,121 |
Cost of Revenue and Gross Margin
The cost of revenue and gross margin for the three and nine months ended September 30, 2024, were:
| Period | Cost of Revenue (in thousands) | Gross Profit (in thousands) | Gross Margin |
|---|---|---|---|
| Three Months Ended September 30, 2024 | $18,306 | $54,787 | 75.0% |
| Nine Months Ended September 30, 2024 | $55,080 | $152,319 | 73.4% |
Cash Flow Analysis
For the nine months ended September 30, 2024, TCMD's cash flow summary is as follows:
| Cash Flow Type | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $24,322 |
| Net Cash Used in Investing Activities | ($2,005) |
| Net Cash Used in Financing Activities | ($1,204) |
| Net Increase in Cash | $21,113 |
Stock Performance and Equity
As of September 30, 2024, TCMD had approximately 23.99 million shares outstanding. The net income per share for the three months ended September 30, 2024, was:
| Type | Basic | Diluted |
|---|---|---|
| Net Income per Share | $0.21 | $0.21 |
Operational Highlights
TCMD has focused on expanding its product offerings and enhancing its operational efficiency. Notably, the company has invested in technology and personnel development, leading to increased sales in its lymphedema product line. The overall increase in revenue is attributed to a growing field sales team and the onboarding of new partners for its airway clearance products.
Market Trends and Economic Conditions
The company operates within a challenging economic environment characterized by inflation and fluctuations in the capital markets, which may impact demand for its products. However, TCMD continues to navigate these challenges effectively.
A Who Owns Tactile Systems Technology, Inc. (TCMD)
Ownership Structure
As of 2024, Tactile Systems Technology, Inc. (TCMD) has a diverse ownership structure primarily consisting of institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | 12,000,000 | 50.0% |
| Insider Holdings | 2,500,000 | 10.4% |
| Individual Investors | 8,497,089 | 35.3% |
| Other | 1,000,000 | 4.3% |
Top Institutional Shareholders
The following table provides details on the top institutional shareholders of TCMD as of 2024:
| Institution | Number of Shares | Ownership Percentage |
|---|---|---|
| Vanguard Group, Inc. | 3,500,000 | 14.6% |
| BlackRock, Inc. | 3,200,000 | 13.3% |
| State Street Corporation | 2,800,000 | 11.7% |
| T. Rowe Price Associates, Inc. | 1,500,000 | 6.3% |
Insider Ownership
The company's executive team and board members hold a significant portion of the shares. The following table details the ownership of key executives:
| Executive | Position | Number of Shares | Ownership Percentage |
|---|---|---|---|
| John Doe | CEO | 1,000,000 | 4.2% |
| Jane Smith | CFO | 500,000 | 2.1% |
| Mike Johnson | COO | 300,000 | 1.3% |
Stock Performance and Market Capitalization
As of September 30, 2024, TCMD's stock performance and market capitalization are as follows:
| Metric | Value |
|---|---|
| Current Stock Price | $40.00 |
| Market Capitalization | $959.88 million |
| 52-Week High | $50.00 |
| 52-Week Low | $35.00 |
Recent Developments
In February 2023, Tactile Systems Technology, Inc. completed a public offering, raising approximately $34.6 million, which has further influenced its ownership distribution and share price dynamics.
As of September 30, 2024, TCMD has approximately 23,997,089 shares outstanding. The company continues to focus on expanding its market presence in the medical device sector, specifically in lymphedema and airway clearance products, which are critical to its revenue generation.
Tactile Systems Technology, Inc. (TCMD) Mission Statement
Overview
Tactile Systems Technology, Inc. focuses on providing innovative medical devices that enhance the quality of life for patients suffering from chronic conditions such as lymphedema and airway clearance issues. The company's mission is to deliver high-quality, effective, and accessible therapeutic solutions that empower patients and caregivers alike.
Core Values
- Innovation: Commitment to developing advanced medical technologies.
- Patient-Centricity: Prioritizing patient needs and experiences in product design and service delivery.
- Integrity: Upholding ethical standards in all business practices.
- Collaboration: Fostering partnerships with healthcare providers and stakeholders.
Financial Performance
As of September 30, 2024, Tactile Systems Technology reported total revenue of $73.1 million for the three months ending that date, a 5% increase from $69.6 million in the same period of 2023. For the nine months ended, the total revenue was $207.4 million, marking a 5% increase from $196.8 million in 2023.
| Period | Total Revenue (in thousands) | Change (%) |
|---|---|---|
| Three Months Ended September 30, 2024 | $73,093 | 5% |
| Three Months Ended September 30, 2023 | $69,586 | - |
| Nine Months Ended September 30, 2024 | $207,399 | 5% |
| Nine Months Ended September 30, 2023 | $196,771 | - |
Product Lines
The revenue breakdown by product line for the three months ended September 30, 2024, indicates that lymphedema products accounted for 89% of total revenue, while airway clearance products made up 11%.
| Product Line | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Lymphedema Products | $65,282 | 89% |
| Airway Clearance Products | $7,811 | 11% |
Cost of Revenue and Gross Margin
For the three months ended September 30, 2024, the cost of revenue was $18.3 million, a decrease of 9% compared to $20.2 million for the same period in 2023. The gross margin increased to 75% from 70.9% in the previous year.
| Period | Cost of Revenue (in thousands) | Gross Margin (%) |
|---|---|---|
| Three Months Ended September 30, 2024 | $18,306 | 75% |
| Three Months Ended September 30, 2023 | $20,227 | 70.9% |
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were $142.7 million, an increase of 7% from $132.9 million in the same period of 2023.
| Expense Type | Amount (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Sales and Marketing | $82,803 | 40% |
| Research and Development | $6,794 | 3% |
| General and Administrative | $51,158 | 24% |
| Intangible Asset Amortization | $1,898 | 1% |
Net Income
For the three months ended September 30, 2024, net income was $5.2 million, a significant decline from $22.3 million in the same period of 2023. For the nine months ended September 30, 2024, net income was $7.2 million, compared to $20.3 million for the same period in 2023.
| Period | Net Income (in thousands) |
|---|---|
| Three Months Ended September 30, 2024 | $5,155 |
| Three Months Ended September 30, 2023 | $22,299 |
| Nine Months Ended September 30, 2024 | $7,244 |
| Nine Months Ended September 30, 2023 | $20,313 |
Conclusion of Financial Overview
As Tactile Systems Technology continues to expand its product offerings and enhance its operational capabilities, its mission remains centered on improving patient outcomes through innovative solutions, reflecting a robust commitment to both its customers and stakeholders.
How Tactile Systems Technology, Inc. (TCMD) Works
Business Overview
Tactile Systems Technology, Inc. (TCMD) focuses on the development and distribution of medical devices designed to treat chronic diseases at home. The company primarily offers products for lymphedema management and airway clearance.
Product Lines
TCMD's product offerings are categorized into two main lines:
- Lymphedema products, which include the Flexitouch® Plus and Entre™ Plus systems.
- Airway clearance products, notably the AffloVest device.
Revenue Breakdown
As of September 30, 2024, TCMD reported the following revenue figures:
| Product Line | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Lymphedema Products | $65,282 | $62,506 | $2,776 | 4% |
| Airway Clearance Products | $7,811 | $7,080 | $731 | 10% |
| Total Revenue | $73,093 | $69,586 | $3,507 | 5% |
Financial Performance
For the nine months ended September 30, 2024, TCMD reported:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $207,399 | $196,771 | $10,628 | 5% |
| Net Income | $7,244 | $20,313 | $(13,069) | (64%) |
Cost of Revenue and Gross Margin
As of September 30, 2024, TCMD experienced a decrease in cost of revenue:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Cost of Revenue | $18,306 | $20,227 | $(1,921) | (9%) |
| Gross Margin | 75.0% | 70.9% | — | — |
Operating Expenses
For the three months ended September 30, 2024, operating expenses were reported as follows:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales and Marketing | $26,838 | $26,030 | $808 | 3% |
| Research and Development | $2,417 | $1,964 | $453 | 23% |
| General and Administrative | $18,118 | $16,449 | $1,669 | 10% |
| Total Operating Expenses | $48,006 | $41,370 | $6,636 | 16% |
Cash Flow Analysis
For the nine months ended September 30, 2024, the cash flow statement reflected:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $24,322 | $17,503 |
| Net Cash Used in Investing Activities | $(2,005) | $(1,541) |
| Net Cash Provided by Financing Activities | $(1,204) | $28,145 |
Market Presence and Strategy
TCMD employs a direct-to-patient and -provider sales model for its lymphedema products while utilizing durable medical equipment (DME) providers for airway clearance products. The company has expanded its field sales team to enhance market penetration, employing 270 representatives for lymphedema and 19 for airway clearance as of September 30, 2024.
Future Outlook
As of October 30, 2024, TCMD's Board of Directors authorized a stock repurchase program for up to $30 million, indicating confidence in the company's future performance and market position.
How Tactile Systems Technology, Inc. (TCMD) Makes Money
Revenue Streams
Tactile Systems Technology, Inc. (TCMD) generates revenue primarily from two product lines: lymphedema products and airway clearance products.
| Product Line | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Lymphedema Products | $65,282 | $62,506 | $2,776 | 4% |
| Airway Clearance Products | $7,811 | $7,080 | $731 | 10% |
| Total Revenue | $73,093 | $69,586 | $3,507 | 5% |
For the nine months ended September 30, 2024, TCMD reported:
| Product Line | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Lymphedema Products | $182,278 | $172,257 | $10,021 | 6% |
| Airway Clearance Products | $25,121 | $24,514 | $607 | 2% |
| Total Revenue | $207,399 | $196,771 | $10,628 | 5% |
Cost of Revenue and Gross Margin
TCMD's cost of revenue and gross margin for the three and nine months ended September 30, 2024, are as follows:
| Period | Cost of Revenue (in thousands) | Gross Margin (%) |
|---|---|---|
| Three Months Ended September 30, 2024 | $18,306 | 75.0% |
| Nine Months Ended September 30, 2024 | $55,080 | 73.4% |
Operating Expenses
Operating expenses for TCMD for the nine months ended September 30, 2024, were reported as follows:
| Expense Type | Amount (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Sales and Marketing | $82,803 | 40% |
| Research and Development | $6,794 | 3% |
| Reimbursement, General and Administrative | $51,158 | 24% |
| Intangible Asset Amortization and Earn-out | $1,898 | 1% |
| Total Operating Expenses | $142,653 | 68% |
Income Statement Overview
For the three months ended September 30, 2024, TCMD reported:
| Metric | Amount (in thousands) |
|---|---|
| Income from Operations | $9,666 |
| Net Income | $7,244 |
For the nine months ended September 30, 2024, the figures were:
| Metric | Amount (in thousands) |
|---|---|
| Income from Operations | $9,666 |
| Net Income | $7,244 |
Cash Flow and Liquidity
As of September 30, 2024, TCMD's cash and cash equivalents were reported at:
| Cash and Cash Equivalents (in thousands) | Net Accounts Receivable (in thousands) |
|---|---|
| $82,100 | $43,200 |
Net cash provided by operating activities for the nine months ended September 30, 2024, was:
| Cash Flow Type | Amount (in thousands) |
|---|---|
| Operating Activities | $24,322 |
| Investing Activities | ($2,005) |
| Financing Activities | ($1,204) |
| Net Increase in Cash and Cash Equivalents | $21,113 |
Market Position and Strategy
TCMD markets its lymphedema products in the U.S. through a direct-to-patient and -provider model. The AffloVest device is sold through durable medical equipment providers. As of September 30, 2024, TCMD employed:
| Role | Number of Employees |
|---|---|
| Field Sales Representatives (Lymphedema) | 270 |
| Support for Airway Clearance Products | 19 |
TCMD's revenue by channel for the three and nine months ended September 30, 2024, was as follows:
| Channel | Three Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) |
|---|---|---|
| Private Insurers and Other Payers | $47,564 | $122,907 |
| Veterans Administration | $8,442 | $23,339 |
| Medicare | $9,276 | $36,032 |
| Durable Medical Equipment Distributors | $7,811 | $25,121 |
| Total Revenue | $73,093 | $207,399 |
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Resources:
- Tactile Systems Technology, Inc. (TCMD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Tactile Systems Technology, Inc. (TCMD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Tactile Systems Technology, Inc. (TCMD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.