Company Overview - TELA Bio, Inc. is a commercial-stage medical technology company focused on innovative soft-tissue reconstruction solutions that optimize clinical outcomes by preserving and restoring the patient's own anatomy [2] - The company aims to provide advanced and economically effective solutions for surgeons, leveraging the patient's natural healing response while minimizing long-term exposure to permanent synthetic materials [2] Upcoming Event - TELA Bio will participate in Piper Sandler's 36th Annual Healthcare Conference, with management scheduled to present on December 3rd, 2024, at 12:00 pm ET [1] - Interested parties can access the live and archived webcast of the presentation at ir.telabio.com [1]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $19 million, representing a 26% year-over-year increase [7][18] - Gross margin was 68% for Q3 2024, down from 69% in the prior year, primarily due to higher charges for excess and obsolete inventory [18] - Net loss for Q3 2024 was $10.4 million, compared to $11 million in the same period in 2023 [20] Business Line Data and Key Metrics Changes - Unit sales for OviTex grew by 39%, while OviTex PRS saw a 44% increase [8] - Revenue from OviTex grew by 23%, and OviTex PRS grew by 31% [18] - Sales in the plastic and reconstruction portfolio topped $6.3 million in Q3 2024 [12] Market Data and Key Metrics Changes - The European business grew by 67% compared to the prior year [8] - The company achieved its first $1 million month in Europe during Q3 [10] - There are now over 700 hospitals worldwide using the company's products [8] Company Strategy and Development Direction - The company is focusing on a growth strategy based on data-driven selling across its entire portfolio [15] - A shift from synthetic mesh to more natural repair products like OviTex is gaining recognition for its safety profile and clinical benefits [11] - The company is implementing changes to reduce operating expenses by $5 million to $10 million annually, with some savings expected in Q4 2024 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's prospects, emphasizing the potential for OviTex and OviTex PRS to become leading technologies in soft tissue preservation and restoration [25] - The company remains on track to achieve full-year revenue guidance of $74.5 million to $76.5 million, reflecting growth of 28% to 31% over 2023 [22] - Management is monitoring elective procedure volumes for potential disruptions due to IV fluid shortages from recent natural disasters [22] Other Important Information - The company closed a public offering that added $43 million to its balance sheet, providing ample funding for continued growth [9] - The company is committed to perpetual training for its sales force to maintain a competitive advantage in a dynamic market [44] Q&A Session Summary Question: Can you provide more color on the $5 million to $10 million in OpEx savings? - The savings primarily come from headcount reductions and a shift in the sales force structure, allowing for a more efficient organization [28][29] Question: Did you recover procedures from the cyberattack challenges in Q2? - Management indicated that there was no significant backlog from Q2, and procedures returned to normal levels without a discernible load-up [30][32] Question: Any initial thoughts on growth as we enter 2025? - While no guidance for 2025 was provided, management noted that growth rates may throttle back as the company matures [35] Question: What trends are being seen in the fourth quarter? - October was a record high for the first month of the quarter, suggesting the company is on track to meet its guidance [41] Question: Can you elaborate on the balanced selling and sales rep training? - The company is committed to continuous training for its sales force to adapt to market changes and maintain productivity [44]

Revenue Growth - Revenue increased by $3.9 million, or 26%, from $15.1 million for Q3 2023 to $19.0 million for Q3 2024[85] - Revenue for the nine months ended September 30, 2024, was $51.7 million, up $10.2 million, or 25%, from $41.5 million for the same period in 2023[85] - Revenue increased by $3.9 million, or 26%, to $19.0 million for the three months ended September 30, 2024, compared to $15.1 million for the same period in 2023, driven by increased unit sales and new customers[108] - Revenue for the nine months ended September 30, 2024, increased by $10.2 million, or 25%, to $51.7 million from $41.5 million for the same period in 2023, driven by increased unit sales and new customers[120] Market Opportunity - The annual U.S. total addressable market opportunity for OviTex products is estimated to be approximately $1.5 billion[73] - The annual U.S. current addressable market opportunity for OviTex PRS products is estimated to be approximately $700 million[79] Unit Sales - Unit sales of OviTex increased by 39% to 4,767 units for the three months ended September 30, 2024, compared to 3,426 units for the same period in 2023[110] - Unit sales of OviTex increased by 34% to 13,034 units for the nine months ended September 30, 2024, compared to 9,704 units for the same period in 2023[120] Financial Performance - The company has an accumulated deficit of $349.5 million as of September 30, 2024[85] - The company has not been profitable since inception and expects to incur losses for the foreseeable future[85] - Net loss for the nine months ended September 30, 2024, was $28.6 million, a decrease of $5.1 million, or 15%, from a net loss of $33.8 million for the same period in 2023[119] Operating Expenses - Total operating expenses for the nine months ended September 30, 2024, were $68.6 million, an increase of $8.3 million, or 14%, from $60.3 million for the same period in 2023[119] - Cost of revenue (excluding amortization of intangible assets) increased by $1.4 million, or 31%, to $6.0 million for the three months ended September 30, 2024, from $4.6 million for the same period in 2023[111] - Cost of revenue increased by $3.4 million, or 27%, to $16.1 million for the nine months ended September 30, 2024, compared to $12.7 million for the same period in 2023[121] - Sales and marketing expenses increased by $2.0 million, or 14%, to $16.5 million for the three months ended September 30, 2024, compared to $14.5 million for the same period in 2023[114] - Sales and marketing expenses rose by $8.2 million, or 19%, to $50.7 million for the nine months ended September 30, 2024, from $42.5 million in the prior year[124] - General and administrative expenses increased by $0.3 million, or 3%, to $11.1 million for the nine months ended September 30, 2024, compared to $10.8 million for the same period in 2023[125] - Research and development expenses decreased by $0.2 million, or 2%, to $6.8 million for the nine months ended September 30, 2024, from $6.9 million in the prior year[126] Cash Flow and Financing - Cash and cash equivalents decreased to $17.3 million as of September 30, 2024, down from $46.7 million as of December 31, 2023[130] - Cash used in operating activities was $34.1 million for the nine months ended September 30, 2024, compared to $29.8 million for the same period in 2023[136] - The company completed a public offering of 14,670,000 shares at a price of $2.25 per share, resulting in gross proceeds of $46.0 million[132] - The MidCap Credit Agreement has a term loan of $40.0 million, maturing in May 2027, with an interest rate of 6.25% plus the greater of one-month Term SOFR or 1.0%[145] - MidCap Credit Facility bears interest at a floating rate of 6.25% plus the greater of one-month Term SOFR or 1.0%[152] - A 1% increase in interest rates would result in a $0.3 million increase in interest expense for the nine months ended September 30, 2024[152] Strategic Initiatives - In September 2023, the company entered into a distribution agreement with Advanced Medical Solutions Limited for LiquiFix Hernia Mesh Fixation Devices[81] - The company launched OviTex IHR Reinforced Tissue Matrix in April 2024, specifically designed for inguinal hernia procedures[74] - The company implemented cost-cutting measures starting in Q3 2024, expected to reduce operating expenses in future periods[85] Inventory and Inflation - Gross margin decreased to 68% for the three months ended September 30, 2024, down from 69% for the same period in 2023, primarily due to higher charges for excess and obsolete inventory[113] - Gross margin decreased to 68% for the nine months ended September 30, 2024, down from 69% for the same period in 2023, primarily due to higher charges for excess and obsolete inventory[123] - Inflationary factors may adversely affect operating results, particularly if selling prices do not increase in line with costs[153] Currency Exposure - Company does not currently have material exposure to foreign currency fluctuations and does not engage in hedging activities[154] Clinical Study Results - The recurrence rate at the 24-month time point in the BRAVO study was 2.6%, with surgical site occurrences observed in 38% of the study population[77] Asset Sales - The company recognized a gain of $7.6 million from the sale of certain assets related to NIVIS during the nine months ended September 30, 2024[127] - Gain on sale of product line amounted to $7.6 million during the nine months ended September 30, 2024[104]

Company Performance - TELA Bio, Inc. reported a quarterly loss of $0.42 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.37, and an improvement from a loss of $0.45 per share a year ago, indicating a surprise of -13.51% [1] - The company posted revenues of $18.96 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.75%, but showing growth from $15.05 million in the same quarter last year [2] - Over the last four quarters, TELA Bio has surpassed consensus EPS estimates only once and has topped consensus revenue estimates two times [2] Stock Performance - TELA Bio shares have declined approximately 54.4% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.29 on revenues of $22.5 million, and for the current fiscal year, it is -$1.40 on revenues of $74.25 million [7] Industry Outlook - The Medical - Biomedical and Genetics industry, to which TELA Bio belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The performance of TELA Bio's stock may be influenced by the overall industry outlook, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than a factor of 2 to 1 [8]

Financial Performance - Revenue for Q3 2024 was $19.0 million, a 26% increase compared to Q3 2023[2] - Gross profit was $12.9 million, representing 68% of revenue, compared to 69% in the same period last year[5] - Net loss for Q3 2024 was $10.4 million, an improvement from a net loss of $11.0 million in Q3 2023[7] - The company reiterated full year 2024 revenue guidance of $74.5 million to $76.5 million, indicating a year-over-year growth of 27% to 31%[2] Sales Performance - Unit sales for OviTex® and OviTex PRS Reinforced Tissue Matrix products grew approximately 39% and 44% year-over-year, respectively[2] Expenses and Efficiency - Operating expenses for Q3 2024 were $22.2 million, up from $20.6 million in Q3 2023[6] - Expected operational efficiency improvements may reduce operating expenses in 2025 by $5.0 million to $10.0 million[2] Cash and Assets - Cash and cash equivalents totaled $17.3 million as of September 30, 2024[7] - Total assets decreased to $53.0 million as of September 30, 2024, down from $78.0 million at the end of 2023[12] Capital Raising - The company closed a public offering yielding gross proceeds of approximately $46.0 million[2]

Core Viewpoint - TELA Bio, Inc. has successfully closed a public offering of 14,670,000 shares of common stock, raising gross proceeds of $46 million, which will be utilized for various corporate purposes [1][2]. Group 1: Offering Details - The public offering price was set at $2.25 per share, with an additional option for investors to purchase pre-funded warrants at a price of $2.2499 each, allowing for the purchase of 5,800,000 shares [1]. - The offering included the full exercise of the underwriters' option to purchase additional shares [1]. - Canaccord Genuity and Lake Street Capital Markets served as joint bookrunners for the offering [2]. Group 2: Use of Proceeds - The net proceeds from the offering are intended for general corporate purposes, which encompass sales and marketing, research and development, general and administrative expenses, working capital, and capital expenditures [2]. Group 3: Company Overview - TELA Bio, Inc. is a commercial-stage medical technology company that focuses on innovative soft-tissue reconstruction solutions, aiming to optimize clinical outcomes by preserving and restoring the patient's anatomy [5]. - The company emphasizes the use of advanced technologies that leverage the patient's natural healing response while minimizing long-term exposure to synthetic materials [5].

MALVERN, Pa., Oct. 23, 2024 (GLOBE NEWSWIRE) -- TELA Bio, Inc. ("TELA"), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction, today announced the pricing of an underwritten public offering of 12,000,000 shares of its common stock at a price to the public of $2.25 per share and, in lieu of common stock to investors who so choose, pre-funded warrants to purchase 5,800,000 shares of common stock at a public offering price of $2.2499 per pre-funded warrant, w ...

MALVERN, Pa., Oct. 17, 2024 (GLOBE NEWSWIRE) -- TELA Bio, Inc. ("TELA Bio") (NASDAQ: TELA), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions, today announced that the Company will report third quarter 2024 financial results on Thursday, November 7, 2024. TELA Bio's management will host a conference call and webcast at 4:30 p.m. ET that day to discuss the financial results and provide a corporate update. Third Quarter Earnings Conference Call ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |-------------------------------------------------------------------------------------|----------------------------------------------------------------- ...

TELA Bio, Inc. (NASDAQ:TELA) Q2 2024 Results Conference Call August 12, 2024 4:30 PM ET Company Participants Louisa Smith - Vice President of Gilmartin Group Antony Koblish - Co-founder, President & CEO Roberto Cuca - COO & CFO Conference Call Participants Frank Takkinen - Lake Street Capital Markets Caitlin Cronin - Canaccord Genuity Matthew O'Brien - Piper Sandler Michael Sarcone - Jefferies David Turkaly - Citizens JMP Operator Good afternoon, ladies and gentlemen, and welcome to the TELA Bio Second Quar ...