TELA Bio Reports Strong Revenue Growth in Q3 2024

TELA Bio

MALVERN, PATELA Bio, Inc. (NASDAQ: TELA) has announced impressive financial results for the third quarter of 2024, achieving a record revenue of $19.0 million. This marks a robust 26% increase over the same period last year, underscoring the rising demand for the company’s OviTex® and OviTex PRS Reinforced Tissue Matrix products. Unit sales for these products saw year-over-year growth of 39% and 44%, respectively.

The surge in revenue is attributed to the addition of new customers and a boost in international sales. However, the increase in smaller-sized product sales, including those compatible with robotic procedures, led to a decline in average selling prices, slightly impacting the revenue mix.

In a strategic move to bolster financial health, TELA Bio recently closed an underwritten public offering, yielding gross proceeds of approximately $46.0 million. This infusion of funds is expected to support the company’s path to profitability, as they aim to reduce operating expenses in 2025 by $5.0 million to $10.0 million.

Despite challenges such as IV fluid shortages due to natural disasters, TELA Bio reiterated its full-year revenue guidance for 2024, anticipating between $74.5 million and $76.5 million, reflecting a 27% to 31% increase from 2023.

In terms of profitability, TELA Bio reported a net loss of $10.4 million for the third quarter of 2024, an improvement from the $11.0 million loss in the same quarter last year. The company’s cash and cash equivalents stood at $17.3 million as of September 30, 2024.

Antony Koblish, President and CEO of TELA Bio, expressed confidence in the company’s growth strategy, emphasizing the focus on expanding market share in high-volume minimally invasive and robotic procedures. With the recent financial boost and strategic cost reductions, TELA Bio is well-positioned to drive future growth and achieve its financial goals.

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