MALVERN, PA — TELA Bio, Inc. (NASDAQ: TELA) has reported its financial results for the fourth quarter and full year 2024. The company showcased a year of steady growth and operational improvements while outlining an optimistic projection for 2025.
For Q4 2024, TELA posted revenue of $17.6 million, a 4% increase compared to the same period in 2023. Full-year revenue reached $69.3 million, reflecting a 19% year-over-year growth driven by strong demand for its OviTex® and OviTex PRS Reinforced Tissue Matrix products. Unit sales for these flagship products grew by 33% and 31%, respectively.
Gross profit for 2024 was $46.5 million, accounting for 67% of revenue, compared to $40.1 million (69%) in 2023. Operating expenses for the year increased to $88.2 million, a rise attributed to higher compensation costs and investments in selling-related activities. Despite this, the company saw its net loss narrow, with a full-year net loss of $37.8 million compared to $46.7 million in 2023.
TELA Bio achieved a notable milestone in 2024 with the launch of OviTex IHR Reinforced Tissue Matrix, designed for laparoscopic and robotic-assisted inguinal hernia repair. The product, launched mid-year, recorded over 1,200 units sold by year’s end. Operational efficiency efforts in late 2024 also contributed to lower expenses in Q4, aligning with the company’s goal to optimize costs going forward.
Looking ahead, TELA has issued 2025 revenue guidance of $85.0 million to $88.0 million, representing an expected year-over-year growth of 23% to 27%. For Q1 2025, revenue is projected to range between $17.0 million and $18.0 million. Operating expenses for the year are anticipated to remain consistent with 2024 levels.
“Our team delivered 19% revenue growth in 2024, and we saw multiple record-high sales months throughout the year,” said Antony Koblish, co-founder, President, and Chief Executive Officer of TELA Bio. “Despite these challenges, the overall opportunity for substantial value creation from current levels remains intact. We believe our OviTex and OviTex PRS products remain well-positioned to benefit from several long-term tailwinds, most significantly an ongoing shift in the hernia repair market away from permanent synthetic mesh and increasing interest among surgeons in device alternatives to cadaveric tissue in plastic and reconstructive surgery.”
With cash and cash equivalents totaling $52.7 million as of December 31, 2024, TELA Bio is poised to expand its market presence, capitalize on growing product demand, and continue its progress toward profitability.
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