TELA Bio(US:TELA)2025-03-20 20:30Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $17.6 million, representing a 3.8% increase compared to Q4 2023, marking the first instance of single-digit revenue growth since the COVID-19 pandemic [5][25] - Full-year revenue for 2024 reached $69.3 million, a 19% increase year-over-year [25] - Gross margin for Q4 was 64%, down from 68-69% in the prior year periods, primarily due to higher expenses related to excess and obsolete inventory [25][26] - Operating loss for Q4 was $8.4 million, compared to $12.3 million in the prior year, while the net loss was $9.2 million, down from $12.9 million [27] Business Line Data and Key Metrics Changes - Revenue from OVATEX grew 17% for the year, while OVATEX PRS revenue increased by 21% [25] - OVATEX unit sales grew 28% for Q4 and 33% for the full year, while PRS unit sales grew 11% for Q4 and 31% for the year [25] Market Data and Key Metrics Changes - The company faced external headwinds, including a hurricane that impacted surgical volumes in key regions, particularly in the Southeast [9][10] - The shortage of IV fluids due to the hurricane affected elective surgeries, contributing to lower sales volumes in November and December [9][10] Company Strategy and Development Direction - The company is implementing a revised commercial strategy, focusing on a team-based sales approach to enhance productivity and customer engagement [11][12] - Plans to expand the product portfolio include launching larger-sized versions of existing products and new long-term resorbable alternatives [17][18] - The company aims to capture a significant market share in hernia repair and plastic reconstructive surgery, with a focus on clinical validation and educational outreach [15][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, anticipating revenue growth of 23% to 27% compared to 2024, driven by improved sales force stability and product offerings [27][29] - The company is focused on maintaining flat operating expenses while improving operational efficiency [28][29] Other Important Information - The company ended 2024 with $52.7 million in cash and cash equivalents, positioning it well for future growth [27] - The company achieved a significant regulatory milestone by obtaining IDE approval for a PRS long-term resorbable breast reconstruction investigational study [21] Q&A Session Summary Question: Follow-up on Territory Manager departures - Management reported losing 11 Territory Managers in Q4 due to unplanned departures, which significantly impacted sales performance [33][34] Question: Outlook for 2025 regarding unit versus ASP expectations - Management indicated that the introduction of new products may lead to lower ASPs in some areas, but they expect volume growth to compensate [40][42] Question: Confidence in reaching breakeven with existing liquidity - Management expressed confidence in achieving profitability, citing flat operating expenses and anticipated revenue growth [45][46] Question: Revenue guidance and sales ramp for 2025 - Management expects a typical seasonal ramp in revenue throughout 2025, with a strong start in Q1 [51][52] Question: Measures to prevent future sales rep attrition - The company has implemented enhanced compensation plans and a team-based selling approach to retain top talent and mitigate attrition risks [55][56]