TELA Bio Reports Second Quarter 2022 Financial Results
TELA Bio reported a 38% revenue increase in Q2 2022, reaching $10.4 million, driven by strong demand for OviTex® products. The company secured a GPO contract with Premier Inc., enhancing market access, and highlighted positive clinical data from ongoing studies. However, gross profit margins declined to 63%, impacted by a one-time amortization charge. Operating expenses rose to $16.8 million, leading to a net loss of $12.7 million. Despite these challenges, the company expects 2022 revenue between $42 million and $45 million, indicating a potential growth of 43% to 53% year-on-year.
- Revenue of $10.4 million in Q2 2022, up 38% year-over-year.
- Strong demand for OviTex® and OviTex PRS products, with revenue growth of approximately 22% and 87%, respectively.
- GPO contract with Premier Inc. expected to enhance market penetration.
- Positive clinical results from OviTex in the BRAVO and ReBAR studies.
- Gross profit margin decreased to 63% from 67% in the prior year.
- Operating expenses increased by $4.4 million to $16.8 million year-over-year.
- Net loss widened to $12.7 million from $8.3 million in the previous year.
- Potential impact from the COVID-19 pandemic could affect revenue guidance.
MALVERN, Pa., Aug. 10, 2022 (GLOBE NEWSWIRE) -- TELA Bio, Inc. ("TELA Bio"), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's own anatomy, today reported financial results for the second quarter ended June 30, 2022.
Recent Highlights
- Reported revenue of
$10.4 million for the second quarter, representing growth of38% over the corresponding period of 2021; - Increased demand for OviTex® and OviTex PRS Reinforced Tissue Matrix products in the second quarter of 2022, resulting in a year-over-year revenue increase for each product of approximately
22% and87% , respectively; - Entered GPO contract with Premier Inc., an alliance of approximately 4,400 U.S. hospitals and 225,000 other providers, that will provide access to additional hospitals within the Premier network and allow for deeper penetration into our current markets;
- Highlighted additional positive data from the BRAVO and ReBAR studies evaluating the use of OviTex® Reinforced Tissue Matrix in hernia repairs, which will be presented at the 2022 American Hernia Society Meeting; and
- Secured up to
$50 million in debt financing from MidCap Financial, including a$10 million tranche that can be accessed at TELA Bio’s option upon meeting certain conditions, and upon closing used a portion of the proceeds to repay our existing$30 million facility.
"We are very pleased to see the growing acceptance of OviTex. We were able to hit our revenue growth targets despite a meaningful rise in COVID-19 infection rates towards the end of the second quarter. Our soft tissue preservation and restoration products are gaining market share as our sales team is effectively educating payors and surgeons on OviTex’s quality, functionality, and value proposition,” said Antony Koblish, co-founder, President and Chief Executive Officer of TELA Bio. "We also continue to see positive clinical results and favorable recurrence rates from the use of OviTex in both our BRAVO patient population and patients studied in other retrospective studies, including those using the ReBAR techniques. These clinical results, along with the recent announcement of our GPO contract with Premier that will take effect in October, and the continued expansion of our sales team should help us drive continued adoption of OviTex and allow us to take further market share from traditional synthetic and biologic mesh products."
Second Quarter 2022 Financial Results
Revenue was
Gross profit was
Operating expenses were
Loss from operations was
Net loss was
Cash and cash equivalents on June 30, 2022, totaled
2022 Financial Guidance
We expect full year 2022 revenue to range from
Conference Call
TELA Bio will host a conference call at 4:30 p.m. Eastern Time on Wednesday, August 10, 2022 to discuss its second quarter 2022 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 replay of the webcast can be accessed via the Events & Presentations page of the investor section of TELA Bio'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's management. Such forward-looking statements include statements relating to our expected revenue and revenue growth for the full year 2022. 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 and the development of new variants of COVID-19, 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, the labor and staffing environment in the healthcare industry, 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, 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. 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 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 Contact
Greg Chodaczek
332-895-3230
ir@telabio.com
TELA Bio, Inc.
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
(Unaudited)
| June 30, | December 31, | |||||||
| 2022 | 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 27,725 | $ | 43,931 | ||||
| Accounts receivable, net | 5,306 | 4,234 | ||||||
| Inventory | 10,291 | 7,658 | ||||||
| Prepaid expenses and other assets | 2,312 | 3,232 | ||||||
| Total current assets | 45,634 | 59,055 | ||||||
| Property and equipment, net | 1,706 | 1,186 | ||||||
| Intangible assets, net | 2,689 | 2,303 | ||||||
| Right-of-use assets | 1,304 | — | ||||||
| Total assets | $ | 51,333 | $ | 62,544 | ||||
| Liabilities and stockholders’ (deficit) equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,246 | $ | 2,414 | ||||
| Accrued expenses and other current liabilities | 9,680 | 8,161 | ||||||
| Total current liabilities | 11,926 | 10,575 | ||||||
| Long‑term debt | 39,617 | — | ||||||
| Long‑term debt with related party | — | 31,491 | ||||||
| Other long‑term liabilities | 1,332 | 380 | ||||||
| Total liabilities | 52,875 | 42,446 | ||||||
| Stockholders’ equity (deficit): | ||||||||
| Preferred stock; | — | — | ||||||
| Common stock; | 15 | 15 | ||||||
| Additional paid-in capital | 251,846 | 250,064 | ||||||
| Accumulated other comprehensive income (loss) | 129 | (52 | ) | |||||
| Accumulated deficit | (253,532 | ) | (229,929 | ) | ||||
| Total stockholders’ (deficit) equity | (1,542 | ) | 20,098 | |||||
| Total liabilities and stockholders’ (deficit) equity | $ | 51,333 | $ | 62,544 | ||||
TELA Bio, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share amounts)
(Unaudited)
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue | $ | 10,406 | $ | 7,558 | $ | 18,637 | $ | 13,435 | ||||||||
| Cost of revenue (excluding amortization of intangible assets) | 3,318 | 2,395 | 6,474 | 4,731 | ||||||||||||
| Amortization of intangible assets | 538 | 76 | 614 | 152 | ||||||||||||
| Gross profit | 6,550 | 5,087 | 11,549 | 8,552 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 11,055 | 7,502 | 20,433 | 13,801 | ||||||||||||
| General and administrative | 3,630 | 2,966 | 7,088 | 5,722 | ||||||||||||
| Research and development | 2,102 | 1,930 | 4,109 | 3,609 | ||||||||||||
| Total operating expenses | 16,787 | 12,398 | 31,630 | 23,132 | ||||||||||||
| Loss from operations | (10,237 | ) | (7,311 | ) | (20,081 | ) | (14,580 | ) | ||||||||
| Other expense: | ||||||||||||||||
| Interest expense | (934 | ) | (864 | ) | (1,845 | ) | (1,753 | ) | ||||||||
| Loss on extinguishment of debt | (1,228 | ) | — | (1,228 | ) | — | ||||||||||
| Other expense | (342 | ) | (80 | ) | (449 | ) | (58 | ) | ||||||||
| Total other expense | (2,504 | ) | (944 | ) | (3,522 | ) | (1,811 | ) | ||||||||
| Net loss | $ | (12,741 | ) | $ | (8,255 | ) | $ | (23,603 | ) | $ | (16,391 | ) | ||||
| Net loss per common share, basic and diluted | $ | (0.88 | ) | $ | (0.57 | ) | $ | (1.62 | ) | $ | (1.13 | ) | ||||
| Weighted average common shares outstanding, basic and diluted | 14,557,453 | 14,458,911 | 14,548,210 | 14,448,715 | ||||||||||||
| Comprehensive loss: | ||||||||||||||||
| Net loss | $ | (12,741 | ) | $ | (8,255 | ) | $ | (23,603 | ) | $ | (16,391 | ) | ||||
| Foreign currency translation adjustment | 134 | 1 | 181 | (10 | ) | |||||||||||
| Comprehensive loss | $ | (12,607 | ) | $ | (8,254 | ) | $ | (23,422 | ) | $ | (16,401 | ) | ||||
FAQ
What were TELA Bio's Q2 2022 financial results?
What are the future revenue projections for TELA Bio in 2022?
What led to the revenue growth in TELA Bio's second quarter?
How did TELA Bio's gross profit margin change in Q2 2022?
