TELA Bio Reports Fourth Quarter and Full Year 2024 Financial ResultsMarch 20, 2025
MALVERN, Pa., March 20, 2025 (GLOBE NEWSWIRE) -- TELA Bio, Inc. ("TELA Bio"), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions, today reported financial results for the fourth quarter and full year ended December 31, 2024.
Recent Highlights
Delivered revenue of $17.6 million in the fourth quarter and $69.3 million for the full year 2024, representing growth of 4% and 19%, respectively, over e corresponding periods of 2023;
Increased demand for OviTex® and OviTex PRS Reinforced Tissue Matrix products during the full year 2024, resulting in growth in unit sales volume for each product of approximately 33% and 31%, respectively;
Drove expanded adoption of Company products in hernia procedures with the launch of OviTex IHR Reinforced Tissue Matrix, specifically engineered for laparoscopic and robotic-assisted inguinal hernia repair, selling over 1,200 units in 2024 from its launch in mid-April 2024;
Implemented cost reduction efforts with a meaningful sequential step down in OpEx from the third to the fourth quarter, with the goal to offset additional investments into our commercial organization and keep 2025 OpEx remaining at the same level as in 2024; and
Provided full year 2025 revenue guidance of $85.0 million to $88.0 million, representing 23% to 27% year-over-year growth.
“Our team delivered 19% revenue growth in 2024, and we saw multiple record-high sales months throughout the year. Our fourth quarter results fell short of our expectations due to a confluence of disruptions, some of which we believe are transient and others that have already been redressed. Despite these challenges, the overall opportunity for substantial value creation from current levels remains intact,” said Antony Koblish, co-founder, President, and Chief Executive Officer of TELA Bio. “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. We are optimistic about TELA’s outlook moving forward and believe we have taken necessary steps to drive additional market share capture in our primary indications, restore topline growth more consistent with our historical precedent, and continue our steady path towards profitability.”
Fourth Quarter 2024 Financial Results
Revenue was $17.6 million in the fourth quarter of 2024, an increase of 4% compared to the same period in 2023. The increase was due to an increase in unit sales of our products resulting from the addition of new customers and growing international sales. This growth was partially offset by a decrease in average selling prices caused by product mix as the share of smaller-sized units increased following the introduction of robotically compatible OviTex IHR and our increased focus in growing market share in high-volume minimally invasive and robotic procedures.
Gross profit was $11.2 million in the fourth quarter of 2024, or 64% of revenue, compared to $11.6 million, or 68% of revenue, in the same period in 2023. The decrease in gross margin was primarily due to higher expense recognized for excess and obsolete inventory adjustments due to the introduction of newer generation products.
Operating expenses were $19.6 million in the fourth quarter of 2024, compared to $23.9 million in the same period in 2023. The decrease was due to lower compensation costs resulting from efficiency efforts initiated in the third quarter of 2024, as well as decreased travel, consulting and professional fees.
Loss from operations was $8.4 million in the fourth quarter of 2024, compared to a loss from operations of $12.3 million in the same period in 2023.
Net loss was $9.2 million in the fourth quarter of 2024, compared to a net loss of $12.9 million in the same period in 2023.
Full Year 2024 Financial Results
Revenue was $69.3 million for the full year 2024, an increase of 19% compared to the same period in 2023. The increase was primarily due to an increase in unit sales of our products resulting from the addition of new customers and growing international sales. This growth was partially offset by a decrease in average selling prices caused by product mix as the share of smaller-sized units increased following the introduction of robotically compatible OviTex IHR and our increased focus in growing market share in high-volume minimally invasive and robotic procedures.
Gross profit was $46.5 million in the full year 2024, or 67% of revenue, compared to $40.1 million, or 69% of revenue, in 2023. The decrease in gross margin was primarily due to higher expense recognized for excess and obsolete inventory adjustments due to the introduction of newer generation products.
Operating expenses were $88.2 million in the full year 2024, compared to $84.2 million in 2023. The increase was due to higher compensation costs and employee-related expenses primarily from commissions on an increased revenue base and severance costs, as well as increased travel, consulting and additional selling related expenses related to product sampling and meeting expenses.
Loss from operations was $34.1 million in the full year 2024, compared to a loss from operations of $44.1 million in 2023.
Net loss was $37.8 million in the full year 2024, compared to a net loss of $46.7 million in 2023.
Cash and cash equivalents on December 31, 2024 totaled $52.7 million.
2025 Financial Guidance
Full year 2025 revenue is projected to range from $85.0 million to $88.0 million, representing growth of 23% to 27% over full year 2024.
First quarter 2025 revenue is projected to range from $17.0 million to $18.0 million, representing growth of 2% to 8% over the first quarter of 2024.
2025 operating expenses are expected to be flat to 2024.
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