MINNEAPOLIS - Tactile Systems Technology, Inc. (NASDAQ:TCMD), known as Tactile Medical, announced today that CEO Dan Reuvers is set to retire, with healthcare veteran Sheri Dodd slated to take over as Chief Executive Officer effective July 1, 2024. Dodd, who has been a member of Tactile Medical's board of directors, will succeed Reuvers following his retirement on June 30, 2024.
Reuvers, who has led the company for four years, will continue to serve as an advisor to Dodd until March 31, 2025, to ensure a smooth transition. He will also maintain his position on the board of directors. Under Reuvers' leadership, Tactile Medical has seen growth in revenue, profitability, and patient reach, alongside a stronger balance sheet to support future growth.
Dodd's appointment comes as Tactile Medical, a provider of at-home therapies for chronic conditions, reported preliminary unaudited revenue for the first quarter of 2024. The company expects revenue to be approximately $61 million, an increase from $58.8 million in the first quarter of 2023. Final financial statements for the quarter ended March 31, 2024, are yet to be released.
With nearly three decades of experience in the pharmaceutical, medical device, and digital health industries, Dodd's previous roles include President of Medtronic (NYSE:MDT) Canada and leadership positions in Medtronic's Care Management Services and non-intensive diabetes therapy businesses. Her background also includes stints at Johnson & Johnson and the World Health Organization, giving her a comprehensive understanding of the complex payer climate.
The company will hold a conference call on May 6, 2024, at 5:00 p.m. Eastern Time to discuss the first quarter financial results. Participants can join the call by dialing in and using the provided access code.
This announcement is based on a press release statement and contains forward-looking statements subject to factors and uncertainties outside of the company's control. Investors are cautioned not to place undue reliance on these statements.
InvestingPro Insights
As Tactile Systems Technology, Inc. (NASDAQ:TCMD) prepares for a leadership change with Sheri Dodd set to take the helm, the company's financial health remains a key focus for investors.
According to InvestingPro data, Tactile Medical is currently valued at a market capitalization of $346.18 million, with a Price/Earnings (P/E) ratio of 11.9 based on last year's earnings. The company's revenue has shown a solid growth of 11.2% in the last twelve months as of Q4 2023, signaling a positive trajectory in sales.
InvestingPro Tips suggest a favorable outlook for Tactile Medical, with two analysts revising their earnings upwards for the upcoming period, reflecting optimism in the company's performance. Moreover, the company's valuation implies a strong free cash flow yield, which could be appealing for investors looking for companies with healthy cash generation relative to their share price. With these insights, Tactile Medical appears to be on a stable financial footing as it transitions to new leadership.
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