Tactile Systems Technology, Inc. (NASDAQ: TCMD) shares fall sharply Tuesday. The medical technology company providing therapies for people with chronic disorders, today reported financial results for the fourth quarter and full year ended December 31, 2023.
In Q4, total revenue increased 5% over prior year to $77.7 million. Net income increased 77% over prior-year to $8.2 million. Adjusted EBITDA increased 27% over prior year to $15.4 million. Tactile also retired $16.8 million revolving line of credit and completed final $5.6 million earnout payment
During 2023, the company treated over 77,000 patients. Total revenue increased 11% over prior year to $274.4 million. Net income increased 260% over prior year to $28.5 million. Adjusted EBITDA increased 62% over prior year to $29.7 million. Generated $35.9 million of cashflow from operations, a $30.6 million increase over prior year. Accounts receivable, current and non-current, declined $23.8 million.
On the product front, the company introduced Entre Plus and Flexitouch ComfortEase upper extremity garments.
Said CEO Dan Reuvers, “2023 proved to be a year of significant progress for Tactile. We restored our lymphedema therapies to double-digit growth, introduced new products and demonstrated leverage in sales and marketing. We also grew total revenue over 11%, delivered record profitability and significantly strengthened our balance sheet.”
TCMD shares dropped $1.23, or 8.4%, to $13.44.
