NASDAQ$TCMD

Tactile Systems Technology Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Revenue increased but earnings decreased due to various factors including the Delta variant and increased operating expenses.

Tactile Systems Technology reported a 7% increase in revenue for Q3 2021, reaching $52.5 million. However, the company experienced a net loss of $3.4 million, a decrease compared to the net income of $2.4 million in Q3 2020. The results were impacted by COVID-19, the Delta variant, and challenges in the labor market.

  • Total revenue increased 7% year-over-year to $52.5 million.
  • Operating loss of $1.4 million, compared to operating income of $1.8 million in third quarter 2020.
  • Net loss of $3.4 million, compared to net income of $2.4 million in third quarter 2020.
  • The company acquired the assets of the AffloVest respiratory therapy business.

Headline financials

Total Revenue

$52.5M

Previous: $49.1M+6.9%
EPS (adj)

-$0.08

Previous: $0.12-166.7%
Total revenue growth

7.0%

No prior period
Gross margin

70.0%

No prior period
Capital Expenditures

-$1.22M

Previous: -$1.62M+24.8%
Free Cash Flow

-$4.58M

Previous: $801K-671.3%
Net Income

-$3.36M

Previous: $2.42M-238.4%
Operating Income

-$1.37M

Previous: $1.79M-176.2%
Gross Profit

$37M

Previous: $35M+5.7%
Cash & Equivalents

$22.4M

Previous: $42.2M-46.9%
Total Assets

$249M

Previous: $158M+58.1%
Stock-Based Comp

$2.59M

Previous: $3.16M-18.2%

Revenue & EPS history

Tactile Systems · Revenue · Quarterly

$52.5M

Q3 2021+6.9%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Tactile Systems · $68.3M total across 2 segments · Q2 2023

  • Lymphedema products
    $60M+16.2%
  • Airway clearance products
    $8.34M+4.1%

Forward guidance

The Company now expects full year 2021 total revenue in the range of $203.5 million to $206.0 million, representing growth of approximately 9% to 10% year-over-year, compared to total revenue of $187.1 million in 2020. This includes the AffloVest expected revenue range of approximately $5.0 million to $5.5 million from the closing date of September 8, 2021 to December 31, 2021.

Tailwinds

  • Expected revenue contribution from AffloVest acquisition of $5.0 to $5.5 million.
  • Integration of AffloVest is progressing well.
  • Expanded addressable U.S. market opportunity to over $10 billion per year.
  • Commitment to advancing the at-home treatment of patients with underserved chronic conditions.
  • Expect to deliver strong growth and improving profitability as conditions improve.

Headwinds

  • Continued COVID-related headwinds.
  • Salesforce staffing challenges.
  • Prolonged recovery from COVID-19.
  • Resurgence due to the Delta variant during the period, which resulted in restricted access to clinics and hospitals and disrupted the recovery in patient visits versus the pre-COVID environment.
  • Challenging labor market impacted our ability to recruit and retain quality candidates for our direct sales force.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+3.1%

Avg return

Earnings day

+3.6%

Avg return

5 days after

+5.9%

Avg return

30 days after

64%

29 / 45 earnings

Positive

+40.6%

Q3 2025

Best reaction

-29.0%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+7.2%+14.5%+12.2%
Q4 2025+17.4%+2.2%-7.0%
Q3 2025+40.6%+57.6%+70.0%
Q1 2025-29.0%-31.6%-27.5%
Q4 2024-13.3%-16.6%-25.6%
Q3 2024-8.6%+2.2%+29.5%
Q2 2024+7.2%+8.6%+8.4%
Q1 2024+1.1%-2.6%-15.2%
Q4 2023-5.4%+8.0%+12.6%
Q3 2023-22.8%-16.9%+1.3%
Q2 2023-14.7%-10.2%-10.1%
Q1 2023+14.0%+15.7%+29.6%
Q4 2022+2.4%+7.6%+13.5%
Q3 2022+17.8%+27.5%+49.9%
Q2 2022+18.2%+15.0%+6.5%
Q1 2022+2.4%-22.9%-41.8%
Q4 2021+7.3%+29.9%+30.6%
Q3 2021-22.9%-22.1%-44.1%
Q2 2021-9.1%-10.8%-8.6%
Q1 2021-7.5%-2.4%-9.0%
Q4 2020-10.4%-15.0%-13.7%
Q3 2020+5.4%-2.7%+14.4%
Q2 2020-13.3%-8.4%-9.9%
Q1 2020-1.0%+3.2%+4.8%
Q4 2019-2.8%-6.3%-28.2%
Q3 2019+7.8%+12.4%+35.8%
Q2 2019-9.6%-7.6%-11.3%
Q1 2019+4.5%+4.0%-4.6%
Q4 2018+0.4%+2.9%-27.5%
Q3 2018-7.9%-5.6%-18.2%
Q2 2018+13.4%+12.4%+37.6%
Q1 2018+20.0%+26.8%+41.2%
Q4 2017+7.8%+1.6%-0.8%
Q3 2017-10.4%-7.6%-1.1%
Q2 2017+17.4%+7.7%+19.3%
Q1 2016+13.9%+22.1%+31.1%
Q1 2017+13.9%+22.1%+31.1%
Q1 2015+17.7%+10.2%+6.1%
Q4 2016+17.7%+10.2%+6.1%
Q4 2014+17.7%+10.2%+6.1%
Q3 2015+7.6%+2.1%-11.1%
Q3 2016+7.6%+2.1%-11.1%
Q4 2015+6.8%+3.9%+31.8%
Q2 2016+6.8%+3.9%+31.8%
Q2 2015+6.8%+3.9%+31.8%
Q3 2014
Q2 2014
Q1 2014

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