TELA Bio Announces Fourth Quarter and Full Year 2020 Financial Results
TELA Bio reported fourth quarter revenue of $5.7 million, an increase of 17% year-over-year, and full-year revenue of $18.2 million, up 18% from 2019. Gross profit for Q4 was $3.7 million (65% margin), and $11.2 million (62% margin) for the full year. Operating expenses rose to $10.4 million in Q4 and $36.5 million annually, leading to net losses of $7.8 million and $28.8 million, respectively. For 2021, TELA projects revenue between $27.0 million and $30.0 million, indicating growth of 48% to 65%.
- Fourth quarter revenue rose to $5.7 million, up 17% from Q4 2019.
- Full-year revenue reached $18.2 million, marking an 18% increase over 2019.
- Gross profit margins improved to 65% in Q4 2020 and 62% for the full year.
- 2021 revenue guidance of $27.0 million to $30.0 million indicates strong growth potential (48% to 65%).
- Operating losses increased to $6.7 million in Q4 2020 from $5.8 million in Q4 2019.
- Net loss for Q4 2020 was $7.8 million, up from $6.5 million the previous year.
- Annual operating expenses grew to $36.5 million from $28.4 million in 2019.
MALVERN, Pa., March 24, 2021 (GLOBE NEWSWIRE) -- TELA Bio, Inc. ("TELA"), a commercial-stage medical technology company focused on designing, developing, and marketing innovative tissue reinforcement materials to address unmet needs in soft tissue reconstruction, today reported financial results for the fourth quarter and full year ended December 31, 2020.
Recent Highlights
- Recognized revenue of
$5.7 million for the fourth quarter and$18.2 million for the full year 2020, representing increases of17% and18% , respectively, over the corresponding periods of 2019 - Conducted virtual VIP tours and educational webinars to approximately 200 surgeons as part of the TELA LIVE virtual programs
- Continued to expand the commercial team to drive growth initiatives
- Published additional positive data, including initial two-year data, from the BRAVO study evaluating OviTex® Reinforced Tissue Matrix for the treatment of ventral hernias showing favorable recurrence rates
"Despite the many challenges of COVID-19, we continue to see momentum in our business and were able to generate fourth quarter and 2020 revenue growth," said Antony Koblish, co-founder, President and Chief Executive Officer of TELA Bio. "I am very proud and humbled by the way our team came together over the past year during these uncertain times. Over the course of 2020, we focused on engaging our customers virtually, optimizing our product portfolio, and completing the 12-month analysis of our patients in our BRAVO study. As a result of these accomplishments and our strong financial position, we believe we are well positioned to gain market share and accelerate revenue growth over the long term."
The BRAVO study is a multi-center prospective study designed to evaluate the clinical performance of OviTex Reinforced Tissue Matrix for the treatment of ventral hernias. Seventy-six (76) patients have completed their 12-month follow-up with only two having experienced a hernia recurrence, both adjacent to the original repair with the OviTex repairs remaining intact. Fifty-one (51) patients reached the 24-month follow-up with none experiencing a recurrence.
"While we intend to build on this momentum in 2021, I am deeply saddened to report the recent loss of our Chief Medical Officer and co-founder, Maarten Persenaire, who died unexpectantly on March 7th. Maarten was instrumental in the founding of the company and the development of OviTex. His lasting contribution will live on in TELA Bio as well as with the surgeons and patients we serve. All of us will be forever grateful to Maarten, and we will continue to honor and build upon his legacy."
Fourth Quarter 2020 Financial Results
Revenue was
Gross profit was
Operating expenses were
Loss from operations was
Net loss was
Full Year 2020 Financial Results
Revenue was
Gross profit was
Operating expenses were
Loss from operations was
Net loss was
Cash and cash equivalents on December 31, 2020 were
Financial Outlook
For the full year 2021, TELA Bio expects total revenue to be in the range of
Conference Call and Webcast Details
The company will host a live conference call and webcast to discuss these results on Wednesday, March 24, 2021 at 4:30 PM ET.
To participate in the call, please dial (855) 548-1219 (domestic) or (409) 217-8881 (international) and provide conference ID 8550518. The live webcast will be available on the Events & Presentations page of the investors section of TELA's website.
About TELA Bio, Inc.
TELA Bio Inc. (NASDAQ: TELA) is a commercial-stage medical technology company focused on designing, developing, and marketing innovative tissue reinforcement materials to address unmet needs in soft tissue reconstruction. The company is committed to providing patients with advanced, economically effective biologic material repair solutions to patients to minimize long-term exposure to permanent synthetic materials and improve clinical outcomes. TELA Bio's OviTex® and OviTex PRS Reinforced Tissue Matrix products are purposefully designed to address the shortcomings of existing reinforcement materials in hernia repair, abdominal wall reconstruction and plastic and reconstructive surgery. For more information, visit www.telabio.com.
Caution Regarding Forward-Looking Statements
This press release may contain 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's management. Such forward-looking statements include statements relating to our expected revenue and revenue growth for the full year 2021. 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 of the ongoing COVID-19 pandemic, including but not limited to any impact on our ability to market our products, demand for our products due to deferral of procedures using our products or disruption in our supply chain, 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, 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 and other 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 assumes no obligation to update our 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 Contact
Greg Chodaczek
347-620-7010
ir@telabio.com
| TELA Bio, Inc. Consolidated Balance Sheets (Unaudited, in thousands, except share and per share amounts) | ||||||||
| December 31, | ||||||||
| 2020 | 2019 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 74,394 | $ | 45,302 | ||||
| Short-term investments | — | 9,285 | ||||||
| Accounts receivable, net | 2,683 | 2,836 | ||||||
| Inventory | 3,907 | 4,603 | ||||||
| Prepaid expenses and other assets | 2,241 | 2,308 | ||||||
| Total current assets | 83,225 | 64,334 | ||||||
| Property and equipment, net | 626 | 677 | ||||||
| Intangible assets, net | 2,607 | 2,911 | ||||||
| Total assets | $ | 86,458 | $ | 67,922 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 652 | $ | 3,171 | ||||
| Accrued expenses and other current liabilities | 5,953 | 3,542 | ||||||
| Total current liabilities | 6,605 | 6,713 | ||||||
| Long-term debt with related party | 30,827 | 30,243 | ||||||
| Other long-term liabilities | — | 4 | ||||||
| Total liabilities | 37,432 | 36,960 | ||||||
| Stockholders' equity: | ||||||||
| Preferred stock; | — | — | ||||||
| Common stock; | 14 | 11 | ||||||
| Additional paid-in capital | 245,736 | 198,829 | ||||||
| Accumulated other comprehensive loss | (71 | ) | (19 | ) | ||||
| Accumulated deficit | (196,653 | ) | (167,859 | ) | ||||
| Total stockholders' equity | 49,026 | 30,962 | ||||||
| Total liabilities and stockholders' equity | $ | 86,458 | $ | 67,922 | ||||
| TELA Bio, Inc. Consolidated Statements of Operations (Unaudited, in thousands, except share and per share amounts) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue | $ | 5,667 | $ | 4,864 | $ | 18,213 | $ | 15,446 | ||||||||
| Cost of revenue (excluding amortization of intangible assets) | 1,929 | 1,825 | 6,675 | 5,870 | ||||||||||||
| Amortization of intangible assets | 76 | 76 | 304 | 304 | ||||||||||||
| Gross profit | 3,662 | 2,963 | 11,234 | 9,272 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 6,377 | 5,382 | 22,111 | 18,060 | ||||||||||||
| General and administrative | 2,869 | 2,486 | 10,143 | 6,223 | ||||||||||||
| Research and development | 1,163 | 921 | 4,255 | 4,151 | ||||||||||||
| Total operating expenses | 10,409 | 8,789 | 36,509 | 28,434 | ||||||||||||
| Loss from operations | (6,747 | ) | (5,826 | ) | (25,275 | ) | (19,162 | ) | ||||||||
| Other (expense) income: | ||||||||||||||||
| Interest expense | (903 | ) | (884 | ) | (3,564 | ) | (3,609 | ) | ||||||||
| Change in fair value of preferred stock warrant liability | — | (1 | ) | — | (5 | ) | ||||||||||
| Other (expense) income | (140 | ) | 179 | 45 | 351 | |||||||||||
| Total other expense | (1,043 | ) | (706 | ) | (3,519 | ) | (3,263 | ) | ||||||||
| Net loss | (7,790 | ) | (6,532 | ) | (28,794 | ) | (22,425 | ) | ||||||||
| Accretion of redeemable convertible preferred stock to redemption value | — | (940 | ) | — | (7,783 | ) | ||||||||||
| Net loss attributable to common stockholders | $ | (7,790 | ) | $ | (7,472 | ) | $ | (28,794 | ) | $ | (30,208 | ) | ||||
| Net loss per common share, basic and diluted | $ | (0.54 | ) | $ | (1.22 | ) | $ | (2.23 | ) | $ | (17.10 | ) | ||||
| Weighted average common shares outstanding, basic and diluted | 14,432,974 | 6,127,486 | 12,934,421 | 1,766,412 | ||||||||||||
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