TELA Bio Reports Third Quarter 2023 Financial Results
09 November 2023 - 10:05PM
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 third quarter ended September
30, 2023.
Recent Highlights
- Revenue of $15.1 million in the third quarter, representing
growth of 35% over the third quarter of 2022 – the 11th consecutive
quarter of 35% or greater year-over-year growth;
- Demand for OviTex® and OviTex PRS Reinforced Tissue Matrix
increased in the third quarter of 2023, resulting in year-over-year
revenue growth of approximately 30% and 46%, respectively;
- U.S. commercial launch of the OviTex® PRS Long-Term Resorbable
for plastic and reconstructive surgery;
- OviTex is now the lead biologic hernia repair mesh in the U.S.
on a unit basis; and
- Updated full year 2023 revenue guidance, with a range of $57.0
million to $60.0 million.
“TELA’s OviTex and OviTex PRS products continued to perform well
in the third quarter, as we report the 11th successive quarter of
35% or greater year-over-year growth since 2020,” said Antony
Koblish, co-founder, President and Chief Executive Officer of TELA
Bio. “Our commercial team has identified opportunities for further
improved surgeon access and rep productivity across the
organization which we expect will drive increased growth in the
fourth quarter and a strong start to 2024. TELA is positioned well
to leverage our revenue growth factors, and we remain committed to
executing on solid, steady growth quarter-after-quarter. As
evidence of our continued progress, surgeons use more pieces of
OviTex for hernia repair in the U.S. than any other biologic
mesh.”
Third Quarter 2023 Financial Results
Revenue was $15.1 million in the third quarter of 2023, an
increase of 35% compared to the same period in 2022. The increase
was due to the ongoing expansion of our commercial organization,
which resulted in the addition of new customers, increased
penetration within existing customer accounts, and growing
international sales.
Gross profit was $10.4 million in the third quarter of 2023, or
69% of revenue, compared to $7.3 million, or 66% of revenue, in the
same period in 2022. The increase in gross margin was primarily due
to better inventory management practices resulting in a decrease in
the reserve for excess and obsolete inventory as a percentage of
revenue as compared to the prior year period.
Operating expenses were $20.6 million in the third quarter of
2023, compared to $16.8 million in the same period in 2022. The
increase was due to higher compensation and employee-related
expenses primarily from additional headcount as we continue to
expand our organization, along with increased travel expenses,
increased consulting fees and higher study costs.
Loss from operations was $10.2 million in the third quarter of
2023, compared to a loss from operations of $9.5 million in the
same period in 2022.
Net loss was $11.0 million in the third quarter of 2023,
compared to a net loss of $10.7 million in the same period in
2022.
Cash and cash equivalents on September 30, 2023 totaled $58.2
million.
2023 Financial Guidance
We expect full year 2023 revenue to range from $57.0 million to
$60.0 million, reflecting growth of 38% to 45% over full year
2022.Conference Call
TELA Bio will host a conference call at 4:30 p.m. Eastern Time
on Thursday, November 9, 2023 to discuss its third quarter 2023
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
Bio's management. Such forward-looking statements include
statements relating to our expected revenue and revenue growth for
the full year 2023. 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 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; 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 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 ContactGreg
Chodaczek332-895-3230ir@telabio.com
TELA Bio, Inc.Consolidated Balance
Sheets(In thousands, except share and per share
amounts)(Unaudited) |
|
|
September 30, |
|
December 31, |
|
|
2023 |
|
|
2022 |
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
58,202 |
|
|
$ |
42,019 |
|
Accounts receivable, net |
|
|
8,072 |
|
|
|
6,621 |
|
Inventory |
|
|
14,323 |
|
|
|
11,792 |
|
Prepaid expenses and other assets |
|
|
1,655 |
|
|
|
2,015 |
|
Total current assets |
|
|
82,252 |
|
|
|
62,447 |
|
Property and equipment,
net |
|
|
1,749 |
|
|
|
1,682 |
|
Intangible assets, net |
|
|
2,214 |
|
|
|
2,499 |
|
Right-of-use assets |
|
|
1,102 |
|
|
|
1,227 |
|
Total assets |
|
$ |
87,317 |
|
|
$ |
67,855 |
|
|
|
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
3,091 |
|
|
$ |
1,534 |
|
Accrued expenses and other current liabilities |
|
|
12,243 |
|
|
|
10,869 |
|
Total current liabilities |
|
|
15,334 |
|
|
|
12,403 |
|
Long‑term debt |
|
|
40,363 |
|
|
|
39,916 |
|
Other long‑term
liabilities |
|
|
1,068 |
|
|
|
1,231 |
|
Total liabilities |
|
|
56,765 |
|
|
|
53,550 |
|
|
|
|
|
|
|
|
Stockholders’ 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;
24,487,578 and 19,165,027 shares issued and outstanding at
September 30, 2023 and December 31, 2022, respectively |
|
|
24 |
|
|
|
19 |
|
Additional paid-in capital |
|
|
338,392 |
|
|
|
288,361 |
|
Accumulated other comprehensive income |
|
|
135 |
|
|
|
150 |
|
Accumulated deficit |
|
|
(307,999 |
) |
|
|
(274,225 |
) |
Total stockholders’ equity |
|
|
30,552 |
|
|
|
14,305 |
|
Total liabilities and stockholders’ equity |
|
$ |
87,317 |
|
|
$ |
67,855 |
|
See accompanying notes to unaudited interim
consolidated financial statements.
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, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
|
$ |
15,052 |
|
|
$ |
11,159 |
|
|
$ |
41,455 |
|
|
$ |
29,796 |
|
Cost of revenue (excluding
amortization of intangible assets) |
|
|
4,568 |
|
|
|
3,745 |
|
|
|
12,682 |
|
|
|
10,219 |
|
Amortization of intangible
assets |
|
|
95 |
|
|
|
95 |
|
|
|
285 |
|
|
|
709 |
|
Gross profit |
|
|
10,389 |
|
|
|
7,319 |
|
|
|
28,488 |
|
|
|
18,868 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
14,474 |
|
|
|
11,172 |
|
|
|
42,517 |
|
|
|
31,605 |
|
General and administrative |
|
|
3,728 |
|
|
|
3,532 |
|
|
|
10,834 |
|
|
|
10,620 |
|
Research and development |
|
|
2,368 |
|
|
|
2,102 |
|
|
|
6,934 |
|
|
|
6,211 |
|
Total operating expenses |
|
|
20,570 |
|
|
|
16,806 |
|
|
|
60,285 |
|
|
|
48,436 |
|
Loss from operations |
|
|
(10,181 |
) |
|
|
(9,487 |
) |
|
|
(31,797 |
) |
|
|
(29,568 |
) |
Other expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(1,334 |
) |
|
|
(1,032 |
) |
|
|
(3,878 |
) |
|
|
(2,877 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,228 |
) |
Other income (expense) |
|
|
558 |
|
|
|
(195 |
) |
|
|
1,901 |
|
|
|
(644 |
) |
Total other expense |
|
|
(776 |
) |
|
|
(1,227 |
) |
|
|
(1,977 |
) |
|
|
(4,749 |
) |
Net loss |
|
$ |
(10,957 |
) |
|
$ |
(10,714 |
) |
|
$ |
(33,774 |
) |
|
$ |
(34,317 |
) |
Net loss per common share,
basic and diluted |
|
$ |
(0.45 |
) |
|
$ |
(0.64 |
) |
|
$ |
(1.51 |
) |
|
$ |
(2.24 |
) |
Weighted average common shares
outstanding, basic and diluted |
|
|
24,483,664 |
|
|
|
16,758,573 |
|
|
|
22,322,256 |
|
|
|
15,293,094 |
|
Comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(10,957 |
) |
|
$ |
(10,714 |
) |
|
$ |
(33,774 |
) |
|
$ |
(34,317 |
) |
Foreign currency translation adjustment |
|
|
51 |
|
|
|
133 |
|
|
|
(15 |
) |
|
|
314 |
|
Comprehensive loss |
|
$ |
(10,906 |
) |
|
$ |
(10,581 |
) |
|
$ |
(33,789 |
) |
|
$ |
(34,003 |
) |
See accompanying notes to unaudited interim
consolidated financial statements.
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