STOCK TITAN

TELA Bio Reports Third Quarter 2024 Financial Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

TELA Bio reported Q3 2024 revenue of $19.0 million, marking a 26% growth year-over-year. The company saw increased demand for OviTex® and OviTex PRS products, with unit sales volume growing 39% and 44% respectively. TELA completed a public offering raising $46.0 million gross proceeds and implemented efficiency measures expected to reduce 2025 operating expenses by $5.0-$10.0 million. The company reiterated its 2024 revenue guidance of $74.5-$76.5 million, representing 27-31% growth, though noting potential impact from IV fluid shortages. Q3 gross profit was $12.9 million (68% margin), with operating expenses at $22.2 million and a net loss of $10.4 million.

TELA Bio ha riportato un fatturato per il terzo trimestre del 2024 di $19,0 milioni, segnando una crescita del 26% rispetto all'anno precedente. L'azienda ha registrato un aumento della domanda per i prodotti OviTex® e OviTex PRS, con un volume di vendite unitario in crescita del 39% e del 44% rispettivamente. TELA ha completato un'offerta pubblica raccogliendo $46,0 milioni di proventi lordi e ha implementato misure di efficienza che si prevede ridurranno le spese operative del 2025 di $5,0-$10,0 milioni. L'azienda ha ribadito la sua guida sui ricavi per il 2024 di $74,5-$76,5 milioni, che rappresenta una crescita del 27-31%, sebbene noti un potenziale impatto dalle carenze di fluidi IV. Il profitto lordo del terzo trimestre è stato di $12,9 milioni (margine del 68%), con spese operative di $22,2 milioni e una perdita netta di $10,4 milioni.

TELA Bio reportó ingresos del tercer trimestre de 2024 de $19.0 millones, marcando un crecimiento del 26% interanual. La compañía vio un aumento en la demanda de los productos OviTex® y OviTex PRS, con un volumen de ventas unitarias que creció un 39% y un 44%, respectivamente. TELA completó una oferta pública recaudando $46.0 millones en ingresos brutos e implementó medidas de eficiencia que se espera reduzcan los gastos operativos de 2025 entre $5.0-$10.0 millones. La compañía reafirmó su guía de ingresos para 2024 de $74.5-$76.5 millones, que representa un crecimiento del 27-31%, aunque mencionó el posible impacto de la escasez de líquidos IV. El beneficio bruto del tercer trimestre fue de $12.9 millones (margen del 68%), con gastos operativos de $22.2 millones y una pérdida neta de $10.4 millones.

TELA Bio는 2024년 3분기 수익이 $19.0 백만 달러에 달해 전년 대비 26% 성장했다고 보고했습니다. 회사는 OviTex® 및 OviTex PRS 제품에 대한 수요가 증가했으며, 각각 39% 및 44%의 단위 판매량이 증가했습니다. TELA는 $46.0 백만 달러의 총 수익을 올리는 공개 Offering을 완료했으며, 2025년 운영 비용을 $5.0-$10.0 백만 달러 줄일 것으로 예상되는 효율성 조치를 시행했습니다. 회사는 2024년 매출 가이드를 $74.5-$76.5 백만 달러로 재확인하며, 이는 27-31% 성장에 해당하지만 IV 수액 부족의 잠재적 영향에 대해 언급했습니다. 3분기 총 이익은 $12.9 백만 달러 (68% 마진)였으며, 운영 비용은 $22.2 백만 달러였고, 순손실은 $10.4 백만 달러로 집계되었습니다.

TELA Bio a annoncé un chiffre d'affaires pour le troisième trimestre 2024 de $19,0 millions, marquant une croissance de 26% par rapport à l'année précédente. L'entreprise a constaté une demande accrue pour les produits OviTex® et OviTex PRS, avec un volume de ventes unitaire en hausse de 39% et 44% respectivement. TELA a réalisé une offre publique levant $46,0 millions de produits bruts et a mis en œuvre des mesures d'efficacité qui devraient réduire les dépenses d'exploitation de 2025 de $5,0-$10,0 millions. L'entreprise a réaffirmé sa prévision de chiffre d'affaires pour 2024 de $74,5-$76,5 millions, représentant une croissance de 27-31%, bien que notant un impact potentiel des pénuries de fluides IV. Le bénéfice brut du troisième trimestre était de $12,9 millions (marge de 68%), avec des dépenses d'exploitation de $22,2 millions et une perte nette de $10,4 millions.

TELA Bio meldete für das dritte Quartal 2024 Einnahmen von $19,0 Millionen, was einem Wachstum von 26% im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete eine erhöhte Nachfrage nach OviTex®- und OviTex PRS-Produkten, wobei das Verkaufsvolumen um 39% bzw. 44% wuchs. TELA schloss eine öffentliche Angebot ab, das $46,0 Millionen Bruttoeinnahmen generierte, und setzte Effizienzmaßnahmen um, die voraussichtlich die Betriebskosten für 2025 um $5,0-$10,0 Millionen senken werden. Das Unternehmen bestätigte seine Umsatzprognose für 2024 von $74,5-$76,5 Millionen, was einem Wachstum von 27-31% entspricht, wies jedoch auf mögliche Auswirkungen durch Mangel an IV-Lösungen hin. Der Bruttogewinn für das dritte Quartal betrug $12,9 Millionen (68%-Marge), die Betriebskosten lagen bei $22,2 Millionen und der Nettoverlust betrug $10,4 Millionen.

Positive
  • Record quarterly revenue of $19.0 million, up 26% YoY
  • Strong unit sales growth: OviTex +39%, OviTex PRS +44%
  • Successful public offering raising $46.0 million gross proceeds
  • Expected operating expense reduction of $5.0-$10.0 million in 2025
  • Maintained strong revenue guidance of $74.5-$76.5 million for 2024
Negative
  • Net loss of $10.4 million in Q3 2024
  • Operating expenses increased to $22.2 million from $20.6 million YoY
  • Gross margin declined to 68% from 69% YoY
  • Decrease in average selling prices due to product mix
  • Potential revenue impact from IV fluid shortages

Insights

TELA Bio shows strong revenue momentum with $19.0M in Q3 2024, marking 26% YoY growth and setting a company record. Key growth drivers include impressive unit sales volume increases in OviTex (39%) and OviTex PRS (44%). The successful $46.0M public offering strengthens their balance sheet, while planned operational efficiencies targeting $5.0M to $10.0M in cost reductions for 2025 demonstrate commitment to profitability.

However, concerns include declining average selling prices due to product mix shifts and a slight gross margin compression to 68% from 69%. Operating loss improved to $9.4M from $10.2M, but cash position of $17.3M requires careful monitoring. The reaffirmed revenue guidance of $74.5M to $76.5M faces potential headwinds from IV fluid shortages.

Reiterates 2024 Revenue Guidance and Expects Recently Implemented Operational Efficiency Improvements to Reduce Operating Expenses in 2025

MALVERN, Pa., Nov. 07, 2024 (GLOBE NEWSWIRE) --  TELA Bio, Inc. ("TELA Bio"), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions, today reported financial results for the third quarter ended September 30, 2024.

Recent Highlights

  • Reported revenue of $19.0 million in the third quarter, representing growth of 26% over the prior year period;
  • Increased demand for OviTex® and OviTex PRS Reinforced Tissue Matrix products during the third quarter, resulting in a year-over-year growth in unit sales volume for each product of approximately 39% and 44%, respectively;
  • Closed on an underwritten public offering yielding gross proceeds of approximately $46.0 million before deducting underwriting discounts and commissions and other estimated offering expenses;
  • Implemented certain operating efficiency improvements that are expected to reduce operating expenses in 2025 by between $5.0 million to $10.0 million from annualized first half of 2024 operating expenses; and
  • Reiterated full year 2024 revenue guidance of $74.5 million to $76.5 million, representing 27% to 31% year-over-year growth. Impact from IV fluid shortages resulting from recent natural disasters may affect this projection but is currently unpredictable.

“Third quarter revenue of $19 million was the highest in TELA Bio’s history and indicates a healthy demand for our products and a return to normalized growth across the OviTex portfolio following the second quarter’s external market disruptions,” said Antony Koblish, President and CEO of TELA Bio. “Our commercial leadership is prioritizing growth, and we are confident in our ability to demonstrate increased operating leverage going forward. With an additional $43 million in net proceeds following the recent underwritten public offering, and actions already taken to reduce operating expenses for 2025, we believe that we are amply funded to attain profitability with current resources.”

Third Quarter 2024 Financial Results

Revenue was $19.0 million in the third quarter of 2024, an increase of 26% compared to the same period in 2023. The increase was primarily driven by an increase in unit sales of our products due to the addition of new customers and growing international sales. This growth was partially offset by a decrease in average selling prices caused by product mix as the share of smaller-sized units increased with the introduction of robotically compatible OviTex IHR and our increased focus in growing market share in high-volume minimally invasive and robotic procedures.

Gross profit was $12.9 million in the third quarter of 2024, or 68% of revenue, compared to $10.4 million, or 69% of revenue, in the same period in 2023. The decrease in gross margin was primarily due to a higher charge for excess and obsolete inventory as a percentage of revenue.

Operating expenses were $22.2 million in the third quarter of 2024, compared to $20.6 million in the same period in 2023. The increase was due to higher compensation costs, including increased severance costs and additional employee-related expenses, as well as increased travel and consulting.

Loss from operations was $9.4 million in the third quarter of 2024, compared to a loss from operations of $10.2 million in the same period in 2023.

Net loss was $10.4 million in the third quarter of 2024, compared to a net loss of $11.0 million in the same period in 2023.

Cash and cash equivalents on September 30, 2024 totaled $17.3 million.

Conference Call

TELA Bio will host a conference call at 4:30 p.m. Eastern Time on Thursday, November 7, 2024, to discuss its third quarter 2024 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 live webcast and replay can be accessed via the Events & Presentations page of the investor section of TELA'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.

TELA Bio intends to use the Investor Relations section of its website as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor TELA Bio’s website in addition to following its press releases, SEC filings, public conference calls, presentations, and webcasts.

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 Bio's management. Such forward-looking statements include statements relating to our expected revenue and revenue growth for the full year 2024 and reduction in operating expenses through the full year 2025. 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 from macroeconomic conditions, including any lingering effects of the COVID-19 pandemic and other public health crises, recessionary concerns, banking instability, increasing market interest rates, and inflationary pressures, potentially impacting our ability to market our products, demand for our products due to the deferral of elective procedures, the labor and staffing environment in the healthcare industry, disruption in our supply chain, or pricing pressures concerning our products or the procedures using our products; the impact of cybersecurity events, external supply chain disruptions, and natural disasters or extreme weather events affecting or disrupting hospital operations and procedural volumes; 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; product 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; and total estimated consideration related to the NIVIS transaction. 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 Bio 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
Louisa Smith
ir@telabio.com


TELA Bio, Inc.
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
(Unaudited)
       
  September 30,  December 31, 
     2024     2023 
Assets        
Current assets:        
Cash and cash equivalents $17,301  $46,729 
Accounts receivable, net of allowances of $230 and $416  11,222   9,737 
Inventory  13,600   13,162 
Prepaid expenses and other current assets  2,009   2,098 
Total current assets  44,132   71,726 
Property and equipment, net  2,423   1,984 
Intangible assets, net  1,834   2,119 
Right-of-use assets  1,796   1,954 
Other long-term assets  2,566    
Restricted cash  265   265 
Total assets $53,016  $78,048 
       
Liabilities and stockholders’ (deficit) equity         
Current liabilities:        
Accounts payable $2,479  $1,667 
Accrued expenses and other current liabilities  14,379   15,300 
Total current liabilities  16,858   16,967 
Long-term debt  40,970   40,515 
Other long-term liabilities  1,460   1,685 
Total liabilities  59,288   59,167 
       
Stockholders’ (deficit) equity:        
Preferred stock; $0.001 par value: 10,000,000 shares authorized; no shares issued and outstanding      
Common stock; $0.001 par value: 200,000,000 shares authorized; 24,717,193 and 24,494,675 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively  25   24 
Additional paid-in capital  343,076   339,655 
Accumulated other comprehensive income  149   91 
Accumulated deficit  (349,522)  (320,889)
Total stockholders’ (deficit) equity  (6,272)  18,881 
Total liabilities and stockholders’ (deficit) equity $53,016  $78,048 


TELA Bio, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share amounts)
(Unaudited)
             
  Three months ended September 30,  Nine months ended September 30, 
  2024     2023     2024     2023 
Revenue $18,957  $15,052  $51,651  $41,455 
Cost of revenue (excluding amortization of intangible assets)  6,004   4,568   16,099   12,682 
Amortization of intangible assets  95   95   285   285 
Gross profit  12,858   10,389   35,267   28,488 
Operating expenses:                
Sales and marketing  16,472   14,474   50,691   42,517 
General and administrative  3,683   3,728   11,133   10,834 
Research and development  2,068   2,368   6,784   6,934 
Total operating expenses  22,223   20,570   68,608   60,285 
Other operating income:            
Gain on sale of product line        7,580    
Loss from operations  (9,365)  (10,181)  (25,761)  (31,797)
Other expense:               
Interest expense  (1,344)  (1,334)  (4,007)  (3,878)
Other income  337   558   1,135   1,901 
Total other expense, net  (1,007)  (776)  (2,872)  (1,977)
Net loss $(10,372) $(10,957) $(28,633) $(33,774)
Net loss per common share, basic and diluted $(0.42) $(0.45) $(1.16) $(1.51)
Weighted average common shares outstanding, basic and diluted  24,703,578   24,483,664   24,648,933   22,322,256 
Comprehensive loss:                
Net loss $(10,372) $(10,957) $(28,633) $(33,774)
Foreign currency translation adjustment  51   51   58   (15)
Comprehensive loss $(10,321) $(10,906) $(28,575) $(33,789)

        


FAQ

What was TELA Bio's revenue growth in Q3 2024?

TELA Bio (TELA) reported revenue of $19.0 million in Q3 2024, representing a 26% growth compared to the same period in 2023.

How much did TELA Bio raise in their recent public offering?

TELA Bio raised approximately $46.0 million in gross proceeds through an underwritten public offering before deducting underwriting discounts and other expenses.

What is TELA Bio's revenue guidance for 2024?

TELA Bio reiterated its full year 2024 revenue guidance of $74.5 million to $76.5 million, representing 27% to 31% year-over-year growth.

How much does TELA Bio expect to reduce operating expenses in 2025?

TELA Bio expects to reduce operating expenses in 2025 by $5.0 million to $10.0 million from annualized first half of 2024 operating expenses.

TELA Bio, Inc.

NASDAQ:TELA

TELA Rankings

TELA Latest News

TELA Stock Data

117.76M
36.71M
4.82%
57.7%
6.21%
Medical Devices
Surgical & Medical Instruments & Apparatus
Link
United States of America
MALVERN