Tactile Systems Technology, Inc. (NASDAQ: TCMD) reported Q1 EPS of ($0.07), $0.05 worse than the analyst estimate of ($0.02). Revenue for the quarter came in at $43.7 million versus the consensus estimate of $43.58 million.

First Quarter 2020 Summary:

• Total revenue increased 16% year-over-year, to $43.7 million, compared to $37.6 million in first quarter 2019.-- Excluding the contribution to first quarter 2019 revenue related to the Company’s adoption of ASC 842, first quarter 2020 revenue reflects year-over-year growth of 26% on an operational basis.-- As noted in the Company’s press release issued on April 6, 2020, revenue for the first quarter of 2020 was negatively impacted by the COVID-19 pandemic beginning in March.
• Flexitouch revenue increased 13% year-over-year, to $38.6 million, compared to $34.1 million in first quarter 2019.
• Operating loss of $4.5 million, compared to operating loss of $1.8 million in first quarter 2019.
• Net loss of $1.3 million, compared to net income of $1.5 million in first quarter 2019.
• Adjusted EBITDA loss of $0.5 million, compared to Adjusted EBITDA of $2.1 million in first quarter 2019.

“We reported first quarter sales of $43.7 million, at the high end of our preliminary range which represented 26% growth on an operational basis,” said Gerald R. Mattys, Chief Executive Officer of Tactile Medical. “While we were pleased to see revenue performance that exceeded our expectations during the first two months of the quarter, our growth trends slowed materially in March as healthcare facilities and clinics restricted access to their clinicians, reduced patient consultations and treatments, or announced temporary closings as a result of the COVID-19 pandemic.”

Mr. Mattys continued: “In response to the COVID-19 pandemic, our most important priority has been to protect the health and safety of our employees and the clinicians and patients that we serve. We acted quickly to implement important changes to our processes and practices in an effort to help mitigate the impact of COVID-19 on our business, to seamlessly support our clinicians and safely make our at-home therapies available for patients. Notably, the early market response to our shift to virtual selling and service strategies has been positive and we are encouraged by the potential dampening of the impact of this crisis on our performance as a result of these efforts. As we look forward to the remainder of 2020, we expect the COVID-19 pandemic to continue to impact our financial and operational results. While we are not currently able to predict the extent to which the COVID-19 crisis will impact our business over the near term, we remain confident in our long-term opportunity related to the growing $5+ billion U.S. lymphedema market. We believe that we are well-capitalized to weather this crisis and plan to leverage our strong balance sheet to continue expanding our commercial organization this year as we focus on being well-positioned to return to delivering strong, sustained and profitable growth as the COVID-19 crisis subsides.”

2020 Financial Outlook

On April 6, 2020, the Company withdrew its full year 2020 financial outlook due to the rapidly evolving environment and continued uncertainties associated with COVID-19. Given these uncertainties, the Company cannot, at this time, reliably estimate the future impact on its operations and financial results.

For earnings history and earnings-related data on Tactile Systems Technology, Inc. (TCMD) click here.