Tactile Systems (TCMD) The 44th Annual William Blair Growth Stock Conference summary

Company overview and market focus

• Focuses on underserved chronic conditions, specifically lymphedema and bronchiectasis, with strong market leadership and profitable growth.

• Vertically integrated model with in-house product development, manufacturing, and direct sales force for lymphedema; respiratory DME channel for bronchiectasis.

• Significant opportunity exists due to large undiagnosed patient populations in both target markets.

• Consistent double-digit revenue growth, strong gross margins, and expanding free cash flow.

• Guidance for 2024 revenue is $300–305 million, with Adjusted EBITDA nearly double that of four years ago.

Product innovation and clinical initiatives

• Refreshed lymphedema product portfolio, including new garments and entry-level pump; new therapy platform expected later this year.

• Flexitouch device for head and neck lymphedema has completed a 235-patient randomized controlled trial, with results expected by early 2025.

• Patent protection secured for head and neck compression therapy, providing a competitive moat.

• AffloVest acquisition has doubled bronchiectasis business and moved market share position from fourth to second.

• E-prescribing and CRM tools being piloted and rolled out to improve sales productivity and operational efficiency.

Strategic priorities and growth drivers

• Near-term focus on expanding sales force, increasing productivity, and launching new products.

• E-prescribing tool and CRM expected to reduce administrative burden and accelerate order processing.

• New lymphedema product and expanded sales initiatives anticipated to drive revenue acceleration in the second half of 2024 and into 2025.

• Advocacy and legislative changes, such as the Lymphedema Treatment Act, are improving reimbursement prospects for head and neck therapy.

• Leadership transition planned, with Sheri Dodd to become CEO in July, ensuring continuity and scalability.