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Mar 31, 2020
Tactile Systems Q1 2020 Earnings Report
Revenue increased but company faced operating and net losses due to increased expenses and COVID-19 impact.
Key Takeaways
Tactile Systems Technology reported a 16% increase in total revenue for Q1 2020, reaching $43.7 million. However, the company experienced an operating loss of $4.5 million and a net loss of $1.3 million, impacted by the COVID-19 pandemic and increased operating expenses.
Total revenue increased by 16% year-over-year to $43.7 million.
Flexitouch revenue increased by 13% year-over-year to $38.6 million.
The company faced an operating loss of $4.5 million.
Net loss was $1.3 million, or ($0.07) per diluted share.
Forward Guidance
The company withdrew its full year 2020 financial outlook due to the rapidly evolving environment and continued uncertainties associated with COVID-19.
Positive Outlook
- Shift to virtual selling and service strategies shows positive early market response.
- Company is well-capitalized to weather the crisis.
- Plan to leverage strong balance sheet to continue expanding commercial organization this year.
- Focus on being well-positioned to return to delivering strong, sustained and profitable growth as the COVID-19 crisis subsides.
- Confident in the long-term opportunity related to the growing $5+ billion U.S. lymphedema market.
Challenges Ahead
- COVID-19 pandemic is expected to continue to impact financial and operational results.
- Healthcare facilities and clinics restricted access, reduced patient consultations, or announced temporary closings.
- Unable to predict the extent to which the COVID-19 crisis will impact the business over the near term.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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