Tactile Systems Technology, Inc. (NASDAQ:TCMD) Q3 2023 Earnings Call Transcript

Suraj Kalia: So, Dan, I guess what I’m trying to understand is, you have a certain list of docs, you have a certain amount of patients out there. From the point that you identify a patient, you’ve identified Siraj having lymphoedema, blah, blah, blah. It takes you, let’s say, three months to basically book a sale, right? Just trying to understand how is that shaping up based on all the changes that you all are implementing?

Daniel Reuvers: Yeah, I don’t know that the time to serve, I guess, is kind of what you’re asking from the time we get a referral at the top of the funnel until the time we ship the product. I don’t know that there’s been a dramatic change over the time I’ve been here. And it can ebb and flow a little bit also based on payer requirements. So some payers from time to time will add some requirements that are more rigorous, some will be more relaxed, and I think all those have variables. I think what we’re really focused on at this point is especially as we continue to scale. I mean, certainly we’re a bigger business than we were a few years ago. And as we continue to scale, making sure that we’ve got scalable infrastructure and tech that I think can more efficiently help us process orders.

We brought in a new CIO back in earlier part of the year, good rich experience, I think, in enriching the platforms that we’re going to need. And I think we still see some good runway there. Ultimately, I would be optimistic about the impact it’s going to have on how long it’s going to take us to process an order and how much of it can be electronic versus manual. And the more we can reduce those handoffs and automate some of those things, I think it’ll be good for patients because our goal is certainly to make sure that we can serve them as efficiently as possible.

Suraj Kalia: Got it. Elaine, was price — can you help us quantify if price was a factor in nominal growth within the three buckets, commercial, VA, Medicare? And also, Dan, if I could, following up on your — the tech part of the equation, forgive me, I jumped a little late on the call. Are we seeing any shift in patient compliance with the [indiscernible] app? Thank you for taking my questions.

Elaine Birkemeyer: Yeah, so I think we had talked about at the beginning of the year that there were some price increases that hasn’t changed throughout the year and so it’s been fairly consistent. Really, the majority of the growth that we have seen throughout the year in this quarter too has been largely driven by shipment increases.

Daniel Reuvers: Yeah, and I think as far as your other question, I think it was what impact do we think Kylee is having or have we seen on patient compliance? I think this is a really interesting one, because compliance has kind of been a bit of a black box for all of us. We’ve followed up with patients with phone calls and more what I call manual efforts over the years. But it’s certainly less pure as we continue to deploy Kylee. We are collecting a lot of information. And I don’t know that it’s so much about compliance improvements because we think that certainly the outcomes that we’ve been able to demonstrate imply that our patients have regularly used the therapies that that we’ve delivered, but Kylee I think is one of the really important opportunities for us among all the other benefits for the patient for us to continue to collect a lot of really rich data.