TELA Bio Reports First Quarter 2024 Financial Results
May 09 2024 - 4:05PM
TELA Bio, Inc. ("TELA Bio"), a commercial-stage medical technology
company focused on providing innovative soft-tissue reconstruction
solutions today reported financial results for the first quarter
ended March 31, 2024.
Recent Highlights
- Reported revenue of $16.6 million in the first quarter,
representing growth of 39% over the prior year period of 2023;
- Delivered the 13th consecutive quarter of at least 35%
year-over-year growth;
- Increased demand for OviTex® and OviTex PRS Reinforced Tissue
Matrix products during the first quarter, resulting in a
year-over-year revenue increase for each product of approximately
31% and 54%, respectively;
- Appointed Howard N. Langstein, MD, FACS, as Vice President of
Medical Affairs and Surgeon Strategy;
- Commenced full U.S. commercial launch of Robotic-Compatible
OviTex IHR (Inguinal Hernia Repair) Reinforced Tissue Matrix,
specifically for use in laparoscopic and robotic-assisted inguinal
hernia repairs; and
- Increased full year 2024 revenue guidance to $74.5 million to
$76.5 million, representing 27% to 31% year-over-year growth.
“We’ve begun 2024 with strong momentum led by a maturing sales
force, strategic product portfolio launches, and sustained market
share growth across our OviTex portfolio,” said Antony Koblish,
co-founder, President, and Chief Executive Officer of TELA Bio.
“TELA Bio is focused on optimizing this growth phase, driving our
sales force towards a more balanced selling approach across the
Hernia and PRS franchises, generating increasing operating leverage
over time, and continuing to deliver value to surgeons and
patients. Q1 was a strong quarter and we believe the rest of 2024
will continue to showcase the progress TELA is delivering on key
strategic priorities.”
First Quarter 2024 Financial Results
Revenue was $16.6 million in the first quarter of 2024, an
increase of 39% compared to the same period in 2023. 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 $11.3 million in the first quarter of 2024, or
68% of revenue, compared to $7.9 million, or 66% of revenue, in the
same period in 2023. The increase in gross margin was primarily due
to a lower charge for excess and obsolete inventory as a percentage
of revenue due to improvements in inventory management.
Operating expenses were $23.7 million in the first quarter of
2024, compared to $19.2 million in the same period in 2023. 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 higher
costs for research and development activities.
Loss from operations was $4.8 million in the first quarter of
2024, compared to a loss from operations of $11.3 million in the
same period in 2023. The decrease was driven primarily by the
recognition of a one-time gain of $7.6 million from the sale of
certain assets related to the NIVIS Fibrillar Collagen Pack Device
(“NIVIS”) to MiMedx in March 2024, subject to adjustment in future
periods as we reassess our estimate of variable consideration from
the transaction.
Net loss was $5.7 million in the first quarter of 2024, compared
to a net loss of $12.0 million in the same period in 2023.
Conference Call
TELA Bio will host a conference call at 4:30 p.m. Eastern Time
on Thursday, May 9, 2024 to discuss its first quarter 2024
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 live webcast and replay can be accessed via
the Events & Presentations page of the investor section of
TELA'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; and
total estimated consideration related to the NIVIS transaction.
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) |
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
2024 |
|
2023 |
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
37,143 |
|
|
$ |
46,729 |
|
Accounts receivable, net of allowances of $303 and $416 |
|
9,955 |
|
|
|
9,737 |
|
Inventory |
|
13,602 |
|
|
|
13,162 |
|
Prepaid expenses and other assets |
|
1,918 |
|
|
|
2,098 |
|
Total current assets |
|
62,618 |
|
|
|
71,726 |
|
Property and equipment,
net |
|
2,325 |
|
|
|
1,984 |
|
Intangible assets, net |
|
2,024 |
|
|
|
2,119 |
|
Right-of-use assets |
|
1,904 |
|
|
|
1,954 |
|
Other long-term assets |
|
2,701 |
|
|
|
— |
|
Restricted cash |
|
265 |
|
|
|
265 |
|
Total assets |
$ |
71,837 |
|
|
$ |
78,048 |
|
|
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
3,357 |
|
|
$ |
1,667 |
|
Accrued expenses and other current liabilities |
|
11,822 |
|
|
|
15,300 |
|
Total current liabilities |
|
15,179 |
|
|
|
16,967 |
|
Long-term debt |
|
40,665 |
|
|
|
40,515 |
|
Other long-term
liabilities |
|
1,609 |
|
|
|
1,685 |
|
Total liabilities |
|
57,453 |
|
|
|
59,167 |
|
|
|
|
|
|
|
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;
24,653,939 and 24,494,675 shares issued and outstanding at March
31, 2024 and December 31, 2023, respectively |
|
25 |
|
|
|
24 |
|
Additional paid-in capital |
|
340,812 |
|
|
|
339,655 |
|
Accumulated other comprehensive income |
|
97 |
|
|
|
91 |
|
Accumulated deficit |
|
(326,550 |
) |
|
|
(320,889 |
) |
Total stockholders’ equity |
|
14,384 |
|
|
|
18,881 |
|
Total liabilities and stockholders’ equity |
$ |
71,837 |
|
|
$ |
78,048 |
|
|
|
|
|
|
|
|
|
TELA Bio, Inc.Consolidated Statements
of Operations and Comprehensive Loss(In thousands,
except share and per share
amounts)(Unaudited) |
|
|
|
|
|
|
|
Three months ended March 31, |
|
2024 |
|
2023 |
Revenue |
$ |
16,603 |
|
|
$ |
11,909 |
|
Cost of revenue (excluding
amortization of intangible assets) |
|
5,172 |
|
|
|
3,916 |
|
Amortization of intangible
assets |
|
95 |
|
|
|
95 |
|
Gross profit |
|
11,336 |
|
|
|
7,898 |
|
Operating expenses: |
|
|
|
|
|
Sales and marketing |
|
17,520 |
|
|
|
13,466 |
|
General and administrative |
|
3,829 |
|
|
|
3,634 |
|
Research and development |
|
2,393 |
|
|
|
2,052 |
|
Total operating expenses |
|
23,742 |
|
|
|
19,152 |
|
Other operating income: |
|
|
|
|
|
Gain on sale of product line |
|
(7,580 |
) |
|
|
— |
|
Loss from operations |
|
(4,826 |
) |
|
|
(11,254 |
) |
Other expense: |
|
|
|
|
|
Interest expense |
|
(1,332 |
) |
|
|
(1,246 |
) |
Other income |
|
497 |
|
|
|
473 |
|
Total other expense |
|
(835 |
) |
|
|
(773 |
) |
Net loss |
$ |
(5,661 |
) |
|
$ |
(12,027 |
) |
Net loss per common share,
basic and diluted |
$ |
(0.23 |
) |
|
$ |
(0.63 |
) |
Weighted average common shares
outstanding, basic and diluted |
|
24,579,386 |
|
|
|
19,185,621 |
|
Comprehensive loss: |
|
|
|
|
|
Net loss |
$ |
(5,661 |
) |
|
$ |
(12,027 |
) |
Foreign currency translation adjustment |
|
6 |
|
|
|
(30 |
) |
Comprehensive loss |
$ |
(5,655 |
) |
|
$ |
(12,057 |
) |
|
|
|
|
|
|
|
|
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