In This Article:
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Revenue: $19 million for Q3 2024, a 26% year-over-year increase.
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OviTex Revenue Growth: 23% increase in Q3 2024.
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OviTex PRS Revenue Growth: 31% increase in Q3 2024.
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Gross Margin: 68% for Q3 2024, down from 69% in the prior year period.
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Sales and Marketing Expense: $16.5 million in Q3 2024, up from $14.5 million in Q3 2023.
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General and Administrative Expense: $3.7 million, flat compared to Q3 2023.
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R&D Expense: $2.1 million in Q3 2024, down from $2.4 million in Q3 2023.
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Loss from Operations: $9.4 million in Q3 2024, compared to $10.2 million in Q3 2023.
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Net Loss: $10.4 million in Q3 2024, compared to $11 million in Q3 2023.
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Cash and Cash Equivalents: $17.3 million at the end of Q3 2024.
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Public Equity Offering: Net proceeds of approximately $43 million after Q3 2024.
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Full Year Revenue Guidance: $74.5 million to $76.5 million for 2024, reflecting growth of 28% to 31% over 2023.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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TELA Bio Inc (NASDAQ:TELA) reported a strong third quarter with a 26% year-over-year revenue increase, reaching $19 million.
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The company experienced significant growth in its European business, with a 67% increase from the prior year period.
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TELA Bio Inc (NASDAQ:TELA) successfully closed a public offering, adding $43 million in cash to its balance sheet, enhancing its financial position.
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The company achieved its first million-dollar month in Europe, indicating strong international market penetration.
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TELA Bio Inc (NASDAQ:TELA) implemented strategic initiatives that resulted in a more productive sales organization, contributing to sustainable growth.
Negative Points
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Gross margin decreased slightly to 68% from 69% in the prior year period due to higher charges for excess and obsolete inventory.
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Sales and marketing expenses increased to $16.5 million, primarily due to higher compensation, severance costs, and additional consulting and travel expenses.
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The company reported a net loss of $10.4 million for the third quarter, although this was an improvement from the $11 million loss in the same period in 2023.
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There is potential for ASP (Average Selling Price) pressure due to the mix shift towards IHR products, which could impact overall revenue.
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The company is still monitoring potential impacts from IV fluid shortages due to recent natural disasters, which could affect elective procedure volumes.
Q & A Highlights
Q: Can you provide more details on the $5 to $10 million in OpEx savings? Are these savings sustainable beyond Q4 and 2025? A: The primary source of savings is headcount reductions implemented in the third quarter. We focused on training our sales force to sell across both Hernia and PRS products, reducing reliance on clinical development specialists. These changes are expected to be sustainable into 2026, with potential for further efficiencies. - Roberto Cuca, CFO & COO