Tactile Systems Technology, Inc. (NASDAQ:TCMD) Q4 2019 Earnings Conference Call - Final Transcript

Feb 26, 2020 • 05:00 pm ET

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Tactile Systems Technology, Inc. (NASDAQ:TCMD) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen. And welcome to the Fourth Quarter of 2019 Earnings Conference Call for Tactile Medical. At this time, all participants have been placed in a listen-only mode. At the end of the Company's prepared remarks, we will conduct a question-and-answer session. Please note that this conference call is being recorded and will be available on the Company's website for replay shortly.

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 that could cause actual results to differ materially from those indicated, including those identified in the Risk Factors section of our Annual Report on Form 10-K filed today with the Securities and Exchange Commission. Such factors may be updated from time-and-time in our filings with the SEC, which are available on our website.

We undertake no obligation to publicly update or revise our forward-looking statements as a result of new information, future events or otherwise. This call will also include references to certain financial measures that are not calculated in accordance with the generally accepted accounting principles or GAAP. We generally refer to these as non-GAAP financial measures. Reconciliations of those non-GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP are available in the earnings press release on the Investor Relations portion of our website.

I would now like to turn the call over to Mr. Jerry Mattys, Tactile Medical's Chief Executive Officer. Please go ahead, sir.

Executive
Gerald R. Mattys

Thank you, operator. Good afternoon, and welcome everyone to our fourth quarter and full-year 2019 earnings call. I'm joined on the call today by our Chief Financial Officer, Brent Moen. Let me provide you with a brief outline of today's call. I'll start with a review of our financial performance highlights for the full-year 2019, during which I'll also discuss the primary drivers of our revenue performance. Following this discussion, I'll review our 2019 operating highlights and briefly summarize our sales performance during the fourth quarter. Brent will discuss our financial results in detail and review our financial guidance for 2020, which we updated in our earnings press release this afternoon, then share a few closing thoughts on our outlook in 2020 before we open the call for questions.

2019 was another year of excellent performance for Tactile Medical. For the full year, we achieved revenue of $189.5 million, representing 32% growth year-over-year coming in ahead of our guidance range for 2019, which we increased on our third quarter earnings call. 2019 revenue growth was primarily driven by sales of our Flexitouch Plus system, which increased 30% year-over-year to $171.3 million. Sales of our Entre Systems were also an important contributor to our total Company revenue growth in 2019, increasing 54% year-over-year to $18.2 million. As a reminder, our revenue results in 2019 were impacted favorably by the adoption of the new lease accounting standard ASC 842,