TELA Bio, Inc. ("TELA Bio"), a commercial-stage medical technology
company focused on providing innovative soft-tissue reconstruction
solutions that optimize clinical outcomes by prioritizing the
preservation and restoration of the patient's own anatomy, today
reported financial results for the fourth quarter and full year
ended December 31, 2023.
Recent Highlights
- Reported revenue of $17.0 million in the fourth quarter and
$58.5 million for the full year 2023, representing growth of 46%
and 41%, respectively, over the corresponding periods of 2022;
- Delivered the 12th consecutive quarter and third consecutive
year of at least 35% year-over-year growth;
- Increased demand for OviTex® and OviTex PRS Reinforced Tissue
Matrix products during the full year 2023, resulting in a
year-over-year revenue increase for each product of approximately
36% and 51%, respectively;
- Commenced full U.S. commercial launch of LIQUIFIX FIX8™
Laparoscopic and LIQUIFIX Precision™ Open Hernia Mesh Fixation
Devices, the only FDA-Approved liquid adhesive for internal use in
hernia surgery, through partnership with Advanced Medical
Solution;
- Sold distribution rights of the NIVIS® Fibrillar Collagen Pack
to MiMedx Group in exchange for at least $8 million and up to $12
million in total cash consideration;
- Finalized preparations for a Q2 2024 U.S. commercial launch of
OviTex IHR Reinforced Tissue Matrix, a new OviTex configuration
designed to enhance utility in inguinal hernia repairs performed
robotically and laparoscopically; and
- Provided full year 2024 revenue guidance of $74.0 million to
$76.0 million, representing 27% to 30% year-over-year growth.
“Our team has executed on our initiatives to drive
market penetration, resulting in yet another year with over 40%
year-over-year growth,” said Antony Koblish, co-founder, President,
and Chief Executive Officer of TELA Bio. “The recalibration of our
sales force over 2023 has led to increased productivity and an
improved mix of sales across our product portfolio. At this week’s
National Sales Meeting, we were thrilled to announce the formal
launch of the LIQUIFIX devices, which we believe advances the
future of hernia repair fixation in robotic, laparoscopic, and open
cases with it novel, atraumatic approach. Beyond LIQUIFIX, the
upcoming launch of our OviTex IHR suite of products should drive
deeper penetration into the inguinal hernia space, generating
greater awareness and adoption of products across our entire hernia
franchise. Finally, the sale of distribution rights to our NIVIS
product to MiMedx for $8 million to $12 million is a non-dilutive
contribution to our cash position that should provide additional
confidence about our pathway to profitability. 2023 was a great
year that sets TELA Bio up for even more achievement in 2024!”
Fourth Quarter 2023 Financial
Results
Revenue was $17.0 million in the fourth quarter of
2023, an increase of 46% compared to the same period in 2022. The
increase was due to an increase in unit sales of our products and
the continued expansion of the commercial organization, which
resulted in increased penetration of existing customer accounts,
the addition of new customers, and growing international sales.
Gross profit was $11.6 million in the fourth
quarter of 2023, or 68% of revenue, compared to $8.2 million, or
70% of revenue, in the same period in 2022. The slight decrease in
gross margin was primarily due to an increase in our excess and
obsolete inventory adjustments.
Operating expenses were $23.9 million in the fourth
quarter of 2023, compared to $17.6 million in the same period in
2022. The increase was due to higher compensation costs and
employee-related expenses from additional headcount as we continue
to expand our organization, as well as increased travel, consulting
and professional fees.
Loss from operations was $12.3 million in the
fourth quarter of 2023, compared to a loss from operations of $9.4
million in the same period in 2022.
Net loss was $12.9 million in the fourth quarter of
2023, compared to a net loss of $10.0 million in the same period in
2022.
Full Year 2023 Financial
Results
Revenue was $58.5 million for the full year 2023,
an increase of 41% compared to the same period in 2022. The
increase was primarily due to an increase in unit sales of our
products and the continued expansion of the commercial
organization, which resulted in increased penetration of existing
customer accounts, the addition of new customers, and growing
international sales.
Gross profit was $40.1 million in the full year
2023, or 69% of revenue, compared to $27.0 million, or 65% of
revenue, in 2022. The increase in gross margin was primarily due to
improved inventory management processes and lower amortization of
intangible assets.
Operating expenses were $84.2 million in the full
year of 2023, compared to $66.1 million in 2022. The increase was
due to higher compensation costs and employee-related expenses from
additional headcount as we continue to expand our organization, as
well as increased travel, consulting and professional fees.
Loss from operations was $44.1 million in the full
year 2023, compared to a loss from operations of $39.0 million in
2022.
Net loss was $46.7 million in the full year 2023,
compared to a net loss of $44.3 million in 2022.
Cash and cash equivalents on December 31, 2023
totaled $46.7 million.
2024 Financial Guidance
Full year 2024 revenue is projected to range from
$74.0 million to $76.0 million, representing growth of 27% to 30%
over full year 2023.
Conference Call
TELA Bio will host a conference call at 4:30 p.m.
Eastern Time on Thursday, March 21, 2024 to discuss its fourth
quarter and full year 2023 financial results. Investors interested
in listening to the conference call should register online.
Participants are required to register a day in advance or at
minimum 15 minutes before the start of the call. A replay of the
webcast can be accessed via the Events & Presentations page of
the investor section of TELA Bio's website.
About TELA Bio, Inc.
TELA Bio, Inc. (NASDAQ: TELA) is a commercial-stage
medical technology company focused on providing innovative
technologies that optimize clinical outcomes by prioritizing the
preservation and restoration of the patient's own anatomy. The
Company is committed to providing surgeons with advanced,
economically effective soft-tissue reconstruction solutions that
leverage the patient's natural healing response while minimizing
long-term exposure to permanent synthetic materials. For more
information, visit www.telabio.com.
Caution Regarding Forward-Looking
Statements
This press release contains forward-looking
statements within the meaning of The Private Securities Litigation
Reform Act of 1995. Words such as "may," "might," "will," "should,"
"believe," "expect," "anticipate," "estimate," "continue,"
"predict," "forecast," "project," "plan," "intend" or similar
expressions, or statements regarding intent, belief, or current
expectations are forward-looking statements and reflect the current
beliefs of TELA Bio's management. Such forward-looking statements
include statements relating to our expected revenue and revenue
growth for the full year 2024. These statements are not guarantees
of future performance and are subject to certain risks,
uncertainties and other factors that could cause actual results and
events to differ materially and adversely from those indicated by
such forward-looking statements including, among others: the impact
to our business from macroeconomic conditions, including any
lingering effects of the COVID-19 pandemic and other public health
crises, recessionary concerns, banking instability, increasing
market interest rates, and inflationary pressures, potentially
impacting our ability to market our products, demand for our
products due to the deferral of elective procedures, the labor and
staffing environment in the healthcare industry, disruption in our
supply chain, or pricing pressures concerning our products or the
procedures using our products; our ability to achieve or sustain
profitability; our ability to gain market acceptance for our
products and to accurately forecast and meet customer demand; our
ability to compete successfully; that data from earlier studies
related to our products and interim data from ongoing studies may
not be replicated in later studies or indicative of future data;
that data obtained from clinical studies using our product may not
be indicative of outcomes in other surgical settings; our ability
to enhance our product offerings; development and manufacturing
problems; capacity constraints or delays in production of our
products; maintenance of coverage and adequate reimbursement for
procedures using our products; product defects or failures. These
risks and uncertainties are described more fully in the "Risk
Factors" section and elsewhere in our filings with the Securities
and Exchange Commission and available at www.sec.gov, including in
our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Any forward-looking statements that we make in this announcement
speak only as of the date of this press release, and TELA Bio
assumes no obligation to update forward-looking statements whether
as a result of new information, future events or otherwise after
the date of this press release, except as required under applicable
law.
Investor ContactLouisa
Smithir@telabio.com
|
|
|
|
|
|
TELA Bio, Inc.Consolidated Balance
Sheets(In thousands, except share and per share
amounts)(Unaudited) |
|
|
|
|
|
|
|
December 31, |
|
2023 |
|
|
2022 |
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
46,729 |
|
|
$ |
42,019 |
|
Accounts receivable, net of allowances of $416 and $143 |
|
9,737 |
|
|
|
6,621 |
|
Inventory |
|
13,162 |
|
|
|
11,792 |
|
Prepaid expenses and other assets |
|
2,098 |
|
|
|
2,015 |
|
Total current assets |
|
71,726 |
|
|
|
62,447 |
|
Property and equipment,
net |
|
1,984 |
|
|
|
1,682 |
|
Intangible assets, net |
|
2,119 |
|
|
|
2,499 |
|
Right-of-use assets |
|
1,954 |
|
|
|
1,227 |
|
Restricted cash |
|
265 |
|
|
|
— |
|
Total assets |
$ |
78,048 |
|
|
$ |
67,855 |
|
|
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
1,667 |
|
|
$ |
1,534 |
|
Accrued expenses and other current liabilities |
|
15,300 |
|
|
|
10,869 |
|
Total current liabilities |
|
16,967 |
|
|
|
12,403 |
|
Long‑term debt |
|
40,515 |
|
|
|
39,916 |
|
Other long‑term
liabilities |
|
1,685 |
|
|
|
1,231 |
|
Total liabilities |
|
59,167 |
|
|
|
53,550 |
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
Preferred stock; $0.001 par value: 10,000,000 shares authorized; no
shares issued and outstanding |
|
— |
|
|
|
— |
|
Common stock; $0.001 par value: 200,000,000 shares authorized;
24,494,675 and 19,165,027 shares issued and outstanding at December
31, 2023 and December 31, 2022, respectively |
|
24 |
|
|
|
19 |
|
Additional paid-in capital |
|
339,655 |
|
|
|
288,361 |
|
Accumulated other comprehensive income |
|
91 |
|
|
|
150 |
|
Accumulated deficit |
|
(320,889 |
) |
|
|
(274,225 |
) |
Total stockholders’ equity |
|
18,881 |
|
|
|
14,305 |
|
Total liabilities and stockholders’ equity |
$ |
78,048 |
|
|
$ |
67,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TELA Bio, Inc.Consolidated Statements
of Operations and Comprehensive Loss(In thousands,
except share and per share
amounts)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedDecember 31, |
|
Year EndedDecember 31, |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
$ |
16,998 |
|
|
$ |
11,622 |
|
|
$ |
58,453 |
|
|
$ |
41,418 |
|
Cost of revenue (excluding
amortization of intangible assets) |
|
5,279 |
|
|
|
3,351 |
|
|
|
17,961 |
|
|
|
13,570 |
|
Amortization of intangible
assets |
|
95 |
|
|
|
95 |
|
|
|
380 |
|
|
|
804 |
|
Gross profit |
|
11,624 |
|
|
|
8,176 |
|
|
|
40,112 |
|
|
|
27,044 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
17,164 |
|
|
|
11,647 |
|
|
|
59,681 |
|
|
|
43,252 |
|
General and administrative |
|
4,053 |
|
|
|
3,242 |
|
|
|
14,887 |
|
|
|
13,862 |
|
Research and development |
|
2,685 |
|
|
|
2,726 |
|
|
|
9,619 |
|
|
|
8,937 |
|
Total operating expenses |
|
23,902 |
|
|
|
17,615 |
|
|
|
84,187 |
|
|
|
66,051 |
|
Loss from operations |
|
(12,278 |
) |
|
|
(9,439 |
) |
|
|
(44,075 |
) |
|
|
(39,007 |
) |
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(1,345 |
) |
|
|
(1,174 |
) |
|
|
(5,223 |
) |
|
|
(4,051 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,228 |
) |
Other income (expense) |
|
733 |
|
|
|
634 |
|
|
|
2,634 |
|
|
|
(10 |
) |
Total other expense |
|
(612 |
) |
|
|
(540 |
) |
|
|
(2,589 |
) |
|
|
(5,289 |
) |
Net loss |
$ |
(12,890 |
) |
|
$ |
(9,979 |
) |
|
$ |
(46,664 |
) |
|
$ |
(44,296 |
) |
Net loss per common share,
basic and diluted |
$ |
(0.53 |
) |
|
$ |
(0.52 |
) |
|
$ |
(2.04 |
) |
|
$ |
(2.72 |
) |
Weighted average common shares
outstanding, basic and diluted |
|
24,490,066 |
|
|
|
19,159,649 |
|
|
|
22,868,663 |
|
|
|
16,267,678 |
|
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