Revenue Performance - Revenue for Q4 2024 was $17.6 million, a 4% increase compared to Q4 2023, while full year revenue reached $69.3 million, representing a 19% growth year-over-year[5][10] - Full year 2025 revenue guidance is projected between $85.0 million and $88.0 million, indicating a year-over-year growth of 23% to 27%[19] Product Sales - Unit sales for OviTex and OviTex PRS products grew approximately 33% and 31% respectively during 2024, driven by increased demand[6] - The launch of OviTex IHR Reinforced Tissue Matrix resulted in over 1,200 units sold in 2024 since its introduction in mid-April[6] Profitability and Expenses - Gross profit for Q4 2024 was $11.2 million, or 64% of revenue, down from 68% in Q4 2023, primarily due to higher expenses for excess and obsolete inventory[7] - Operating expenses decreased to $19.6 million in Q4 2024 from $23.9 million in Q4 2023, reflecting efficiency efforts[8] - The net loss for Q4 2024 was $9.2 million, an improvement from a net loss of $12.9 million in Q4 2023[9] - The company aims to maintain 2025 operating expenses at the same level as in 2024[6] Market Outlook - The overall market opportunity for TELA Bio remains strong, with expectations for continued growth in the hernia repair market[4] Cash Position - Cash and cash equivalents as of December 31, 2024, totaled $52.7 million, up from $46.7 million in 2023[14]

Core Viewpoint - TELA Bio, Inc. reported a 19% revenue growth for 2024, despite fourth-quarter results falling short of expectations due to various disruptions. The company remains optimistic about future growth driven by its innovative products and market trends away from permanent synthetic materials in hernia repair and reconstructive surgery [3]. Financial Performance - Fourth quarter 2024 revenue was $17.6 million, a 4% increase from Q4 2023, attributed to higher unit sales and new customer additions, although offset by lower average selling prices due to a shift in product mix [4][9]. - Gross profit for Q4 2024 was $11.2 million, representing 64% of revenue, down from 68% in Q4 2023, primarily due to higher expenses related to obsolete inventory adjustments [5][10]. - Operating expenses decreased to $19.6 million in Q4 2024 from $23.9 million in Q4 2023, leading to a reduced loss from operations of $8.4 million compared to $12.3 million in the prior year [6][11]. - The net loss for Q4 2024 was $9.2 million, an improvement from a net loss of $12.9 million in Q4 2023 [7][12]. Annual Overview - For the full year 2024, revenue reached $69.3 million, a 19% increase from 2023, driven by a 33% increase in unit sales of OviTex products [8][10]. - Gross profit for the full year was $46.5 million, or 67% of revenue, slightly down from 69% in 2023 due to similar inventory expense issues [10]. - Operating expenses for 2024 totaled $88.2 million, up from $84.2 million in 2023, with a loss from operations of $34.1 million, improved from a loss of $44.1 million in the previous year [11]. - The net loss for the full year was $37.8 million, compared to a net loss of $46.7 million in 2023 [12]. Future Guidance - TELA Bio projects 2025 revenue between $85.0 million and $88.0 million, indicating a year-over-year growth of 23% to 27% [17]. - First quarter 2025 revenue is expected to range from $17.0 million to $18.0 million, reflecting a growth of 2% to 8% compared to Q1 2024 [17]. - Operating expenses for 2025 are anticipated to remain flat compared to 2024 [17].

Group 1 - TELA Bio, Inc. will report its fourth quarter and full year 2024 financial results on March 20, 2025, followed by a conference call and webcast at 4:30 p.m. ET [1] - Investors can register online to listen to the conference call, with a requirement to register at least 15 minutes before the start [2] - TELA Bio focuses on innovative soft-tissue reconstruction solutions that prioritize the preservation and restoration of the patient's own anatomy, aiming to optimize clinical outcomes [3] Group 2 - The company is committed to providing advanced and economically effective soft-tissue reconstruction solutions that leverage the patient's natural healing response while minimizing long-term exposure to synthetic materials [3]

Company Overview - TELA Bio, Inc. is a commercial-stage medical technology company focused on innovative soft-tissue reconstruction solutions that optimize clinical outcomes by preserving and restoring the patient's own anatomy [2] - The company aims to provide advanced and economically effective solutions for surgeons, leveraging the patient's natural healing response while minimizing long-term exposure to permanent synthetic materials [2] Upcoming Event - TELA Bio will participate in Piper Sandler's 36th Annual Healthcare Conference, with management scheduled to present on December 3rd, 2024, at 12:00 pm ET [1] - Interested parties can access the live and archived webcast of the presentation at ir.telabio.com [1]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $19 million, representing a 26% year-over-year increase [7][18] - Gross margin was 68% for Q3 2024, down from 69% in the prior year, primarily due to higher charges for excess and obsolete inventory [18] - Net loss for Q3 2024 was $10.4 million, compared to $11 million in the same period in 2023 [20] Business Line Data and Key Metrics Changes - Unit sales for OviTex grew by 39%, while OviTex PRS saw a 44% increase [8] - Revenue from OviTex grew by 23%, and OviTex PRS grew by 31% [18] - Sales in the plastic and reconstruction portfolio topped $6.3 million in Q3 2024 [12] Market Data and Key Metrics Changes - The European business grew by 67% compared to the prior year [8] - The company achieved its first $1 million month in Europe during Q3 [10] - There are now over 700 hospitals worldwide using the company's products [8] Company Strategy and Development Direction - The company is focusing on a growth strategy based on data-driven selling across its entire portfolio [15] - A shift from synthetic mesh to more natural repair products like OviTex is gaining recognition for its safety profile and clinical benefits [11] - The company is implementing changes to reduce operating expenses by $5 million to $10 million annually, with some savings expected in Q4 2024 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's prospects, emphasizing the potential for OviTex and OviTex PRS to become leading technologies in soft tissue preservation and restoration [25] - The company remains on track to achieve full-year revenue guidance of $74.5 million to $76.5 million, reflecting growth of 28% to 31% over 2023 [22] - Management is monitoring elective procedure volumes for potential disruptions due to IV fluid shortages from recent natural disasters [22] Other Important Information - The company closed a public offering that added $43 million to its balance sheet, providing ample funding for continued growth [9] - The company is committed to perpetual training for its sales force to maintain a competitive advantage in a dynamic market [44] Q&A Session Summary Question: Can you provide more color on the $5 million to $10 million in OpEx savings? - The savings primarily come from headcount reductions and a shift in the sales force structure, allowing for a more efficient organization [28][29] Question: Did you recover procedures from the cyberattack challenges in Q2? - Management indicated that there was no significant backlog from Q2, and procedures returned to normal levels without a discernible load-up [30][32] Question: Any initial thoughts on growth as we enter 2025? - While no guidance for 2025 was provided, management noted that growth rates may throttle back as the company matures [35] Question: What trends are being seen in the fourth quarter? - October was a record high for the first month of the quarter, suggesting the company is on track to meet its guidance [41] Question: Can you elaborate on the balanced selling and sales rep training? - The company is committed to continuous training for its sales force to adapt to market changes and maintain productivity [44]

Revenue Growth - Revenue increased by $3.9 million, or 26%, from $15.1 million for Q3 2023 to $19.0 million for Q3 2024[85] - Revenue for the nine months ended September 30, 2024, was $51.7 million, up $10.2 million, or 25%, from $41.5 million for the same period in 2023[85] - Revenue increased by $3.9 million, or 26%, to $19.0 million for the three months ended September 30, 2024, compared to $15.1 million for the same period in 2023, driven by increased unit sales and new customers[108] - Revenue for the nine months ended September 30, 2024, increased by $10.2 million, or 25%, to $51.7 million from $41.5 million for the same period in 2023, driven by increased unit sales and new customers[120] Market Opportunity - The annual U.S. total addressable market opportunity for OviTex products is estimated to be approximately $1.5 billion[73] - The annual U.S. current addressable market opportunity for OviTex PRS products is estimated to be approximately $700 million[79] Unit Sales - Unit sales of OviTex increased by 39% to 4,767 units for the three months ended September 30, 2024, compared to 3,426 units for the same period in 2023[110] - Unit sales of OviTex increased by 34% to 13,034 units for the nine months ended September 30, 2024, compared to 9,704 units for the same period in 2023[120] Financial Performance - The company has an accumulated deficit of $349.5 million as of September 30, 2024[85] - The company has not been profitable since inception and expects to incur losses for the foreseeable future[85] - Net loss for the nine months ended September 30, 2024, was $28.6 million, a decrease of $5.1 million, or 15%, from a net loss of $33.8 million for the same period in 2023[119] Operating Expenses - Total operating expenses for the nine months ended September 30, 2024, were $68.6 million, an increase of $8.3 million, or 14%, from $60.3 million for the same period in 2023[119] - Cost of revenue (excluding amortization of intangible assets) increased by $1.4 million, or 31%, to $6.0 million for the three months ended September 30, 2024, from $4.6 million for the same period in 2023[111] - Cost of revenue increased by $3.4 million, or 27%, to $16.1 million for the nine months ended September 30, 2024, compared to $12.7 million for the same period in 2023[121] - Sales and marketing expenses increased by $2.0 million, or 14%, to $16.5 million for the three months ended September 30, 2024, compared to $14.5 million for the same period in 2023[114] - Sales and marketing expenses rose by $8.2 million, or 19%, to $50.7 million for the nine months ended September 30, 2024, from $42.5 million in the prior year[124] - General and administrative expenses increased by $0.3 million, or 3%, to $11.1 million for the nine months ended September 30, 2024, compared to $10.8 million for the same period in 2023[125] - Research and development expenses decreased by $0.2 million, or 2%, to $6.8 million for the nine months ended September 30, 2024, from $6.9 million in the prior year[126] Cash Flow and Financing - Cash and cash equivalents decreased to $17.3 million as of September 30, 2024, down from $46.7 million as of December 31, 2023[130] - Cash used in operating activities was $34.1 million for the nine months ended September 30, 2024, compared to $29.8 million for the same period in 2023[136] - The company completed a public offering of 14,670,000 shares at a price of $2.25 per share, resulting in gross proceeds of $46.0 million[132] - The MidCap Credit Agreement has a term loan of $40.0 million, maturing in May 2027, with an interest rate of 6.25% plus the greater of one-month Term SOFR or 1.0%[145] - MidCap Credit Facility bears interest at a floating rate of 6.25% plus the greater of one-month Term SOFR or 1.0%[152] - A 1% increase in interest rates would result in a $0.3 million increase in interest expense for the nine months ended September 30, 2024[152] Strategic Initiatives - In September 2023, the company entered into a distribution agreement with Advanced Medical Solutions Limited for LiquiFix Hernia Mesh Fixation Devices[81] - The company launched OviTex IHR Reinforced Tissue Matrix in April 2024, specifically designed for inguinal hernia procedures[74] - The company implemented cost-cutting measures starting in Q3 2024, expected to reduce operating expenses in future periods[85] Inventory and Inflation - Gross margin decreased to 68% for the three months ended September 30, 2024, down from 69% for the same period in 2023, primarily due to higher charges for excess and obsolete inventory[113] - Gross margin decreased to 68% for the nine months ended September 30, 2024, down from 69% for the same period in 2023, primarily due to higher charges for excess and obsolete inventory[123] - Inflationary factors may adversely affect operating results, particularly if selling prices do not increase in line with costs[153] Currency Exposure - Company does not currently have material exposure to foreign currency fluctuations and does not engage in hedging activities[154] Clinical Study Results - The recurrence rate at the 24-month time point in the BRAVO study was 2.6%, with surgical site occurrences observed in 38% of the study population[77] Asset Sales - The company recognized a gain of $7.6 million from the sale of certain assets related to NIVIS during the nine months ended September 30, 2024[127] - Gain on sale of product line amounted to $7.6 million during the nine months ended September 30, 2024[104]

Company Performance - TELA Bio, Inc. reported a quarterly loss of $0.42 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.37, and an improvement from a loss of $0.45 per share a year ago, indicating a surprise of -13.51% [1] - The company posted revenues of $18.96 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.75%, but showing growth from $15.05 million in the same quarter last year [2] - Over the last four quarters, TELA Bio has surpassed consensus EPS estimates only once and has topped consensus revenue estimates two times [2] Stock Performance - TELA Bio shares have declined approximately 54.4% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.29 on revenues of $22.5 million, and for the current fiscal year, it is -$1.40 on revenues of $74.25 million [7] Industry Outlook - The Medical - Biomedical and Genetics industry, to which TELA Bio belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The performance of TELA Bio's stock may be influenced by the overall industry outlook, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than a factor of 2 to 1 [8]

Financial Performance - Revenue for Q3 2024 was $19.0 million, a 26% increase compared to Q3 2023[2] - Gross profit was $12.9 million, representing 68% of revenue, compared to 69% in the same period last year[5] - Net loss for Q3 2024 was $10.4 million, an improvement from a net loss of $11.0 million in Q3 2023[7] - The company reiterated full year 2024 revenue guidance of $74.5 million to $76.5 million, indicating a year-over-year growth of 27% to 31%[2] Sales Performance - Unit sales for OviTex® and OviTex PRS Reinforced Tissue Matrix products grew approximately 39% and 44% year-over-year, respectively[2] Expenses and Efficiency - Operating expenses for Q3 2024 were $22.2 million, up from $20.6 million in Q3 2023[6] - Expected operational efficiency improvements may reduce operating expenses in 2025 by $5.0 million to $10.0 million[2] Cash and Assets - Cash and cash equivalents totaled $17.3 million as of September 30, 2024[7] - Total assets decreased to $53.0 million as of September 30, 2024, down from $78.0 million at the end of 2023[12] Capital Raising - The company closed a public offering yielding gross proceeds of approximately $46.0 million[2]

Core Viewpoint - TELA Bio, Inc. has successfully closed a public offering of 14,670,000 shares of common stock, raising gross proceeds of $46 million, which will be utilized for various corporate purposes [1][2]. Group 1: Offering Details - The public offering price was set at $2.25 per share, with an additional option for investors to purchase pre-funded warrants at a price of $2.2499 each, allowing for the purchase of 5,800,000 shares [1]. - The offering included the full exercise of the underwriters' option to purchase additional shares [1]. - Canaccord Genuity and Lake Street Capital Markets served as joint bookrunners for the offering [2]. Group 2: Use of Proceeds - The net proceeds from the offering are intended for general corporate purposes, which encompass sales and marketing, research and development, general and administrative expenses, working capital, and capital expenditures [2]. Group 3: Company Overview - TELA Bio, Inc. is a commercial-stage medical technology company that focuses on innovative soft-tissue reconstruction solutions, aiming to optimize clinical outcomes by preserving and restoring the patient's anatomy [5]. - The company emphasizes the use of advanced technologies that leverage the patient's natural healing response while minimizing long-term exposure to synthetic materials [5].

MALVERN, Pa., Oct. 23, 2024 (GLOBE NEWSWIRE) -- TELA Bio, Inc. ("TELA"), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction, today announced the pricing of an underwritten public offering of 12,000,000 shares of its common stock at a price to the public of $2.25 per share and, in lieu of common stock to investors who so choose, pre-funded warrants to purchase 5,800,000 shares of common stock at a public offering price of $2.2499 per pre-funded warrant, w ...