TELA Bio(US:TELA)2021-03-25 01:51Financial Data and Key Metrics Changes - Total revenue for Q4 2020 was $5.7 million, representing a growth of approximately 17% compared to Q4 2019 [5][18] - Full-year 2020 revenue increased by 18% to $18.2 million compared to 2019 [18] - Gross margins improved to 65% in Q4 2020 from 61% in the prior-year period, and full-year gross margins increased to 62% from 60% [19] - Loss from operations was $6.7 million in Q4 2020 compared to $5.8 million in the prior-year period, and for the full-year 2020, the loss was $25.3 million compared to $19.2 million in 2019 [22] - Net loss for Q4 2020 was $7.8 million compared to $6.5 million in the same period in 2019, and for the full-year 2020, net loss was $28.8 million compared to $22.4 million in 2019 [22] Business Line Data and Key Metrics Changes - OviTex products saw a sequential increase in LPR unit sales by 32% in Q4 2020 [11] - Approximately 50% of OviTex usage in Q4 came from minimally invasive and robotic procedures [11] - The plastic and reconstructive market experienced record unit volume and dollar growth in Q4 2020 [13] Market Data and Key Metrics Changes - The company increased the number of hospital customers from 270 to 325 in Q4 2020 [15] - The number of HealthTrust accounts increased significantly, with about a third of accounts generating approximately a third of revenue in Q4 [76] Company Strategy and Development Direction - The company plans to continue being a leader in developing tissue reinforcement materials for soft tissue reconstruction [5] - TELA Bio is focusing on expanding its commercial team and increasing the number of sales representatives to enhance market penetration [15] - The company is optimistic about the transition from plastic mesh to more natural products like OviTex, driven by increasing concerns over synthetic mesh complications [12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the recovery of surgical procedures as COVID-19 cases decline [7][25] - The company expects total revenues in 2021 to be in the range of $27 million to $30 million, representing growth of 48% to 65% over 2020 [24] - Management highlighted the importance of increasing the number of sales representatives and ensuring access to hospitals for future growth [32] Other Important Information - The BRAVO study showed promising results for OviTex, with a hernia recurrence rate of 2.6% at 12 months and 0% at 24 months [9] - The company ended 2020 with $74.4 million in cash and cash equivalents, an increase from $54.6 million at the end of 2019 [23] Q&A Session Summary Question: Guidance and softness in hernia and plastic sides - Management acknowledged some softness in December and January but noted a rebound in February and March [31] Question: TELA LIVE program effectiveness - Approximately a third of surgeons participating in TELA LIVE have shown increased usage of the product, with a 115% increase in average usage post-program [40] Question: Cash burn expectations - The company expects to burn approximately $28 million to $30 million based on revenue guidance for 2021 [43] Question: Hernia mesh lawsuits update - Management indicated that litigation related to synthetic mesh is expected to commence soon, which may positively impact the conversation around natural repair products [56] Question: Competitive response and HealthTrust penetration - The company has seen a positive shift in conversations towards natural repair products, with a significant increase in HealthTrust accounts contributing to revenue [72][76]