TELA Bio Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-13
TELA Bio Reports Second Quarter 2024 Financial Results
MALVERN, Pa., Aug. 12, 2024 — TELA Bio, Inc. ("TELA Bio"), a commercial-stage medical technology company, has reported its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics (Amounts in Millions)
| Metric | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Revenue | $16.1 | $14.5 | +11% |
| Gross Profit | $11.1 | $10.2 | +8.8% |
| Gross Margin | 69% | 70% | -1% |
| Operating Expenses | $22.6 | $20.6 | +9.7% |
| Loss from Operations | $11.6 | $10.4 | -11.5% |
| Net Loss | $12.6 | $10.8 | -16.7% |
Financial Performance Interpretation: TELA Bio demonstrated revenue growth of 11% year-over-year, driven primarily by new customer acquisitions and increased market penetration. However, net losses widened due to increased operating expenses linked to organizational expansion and cybersecurity disruptions that impacted revenue forecasts.
Revenue Performance by Segment
| Segment | Q2 2024 Revenue | Previous Guidance Comparison |
|---|---|---|
| Core Products | Not Provided | Not Provided |
| Robotically Compatible OviTex IHR | Launched Q2 2024 | Not Provided |
| NIVIS Revenue Share | Expected Q3 2024 | $3M - $7M over eight quarters |
Segment Performance Interpretation: The revenue growth was bolstered by the launch of the robotically compatible OviTex IHR, targeting the high-volume inguinal hernia market. The expected revenue share from the NIVIS Fibrillar Collagen Pack is projected to add $3 million to $7 million over the next eight quarters, contributing to future growth.
Executive Comments
"TELA delivered double-digit growth in the second quarter notwithstanding some market disruptions from customer-targeted cyberattacks. We are focused on improving the productivity and efficiency of our commercial organization and believe that with these efforts, our cash and cash equivalents will be sufficient to fund us to profitability," stated Antony Koblish, President and CEO of TELA Bio.
Forward Guidance
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.
Stock Price Movement
Following the earnings release, TELA Bio's stock saw a post-event change of -1.01%.
Summary
TELA Bio experienced solid revenue growth in Q2 2024 despite some operational setbacks. New product launches and organizational improvements spearheaded by recently appointed Chief Commercial Officer, Greg Firestone, are expected to drive further growth. The company reiterated its positive full-year revenue guidance, illustrating confidence in its commercial strategy and market position.
The report has been organized into a more readable format, and unnecessary columns have been removed.
