Full Press Release Details
Bio Reports First Quarter 2023 Financial Results
PA, May 11, 2023 -- TELA Bio, Inc. ("TELA Bio"), a commercial-stage medical technology company focused on providing
innovative soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the
patient's own anatomy, today reported financial results for the first quarter ended March 31, 2023.
are pleased with TELA's solid performance in the first quarter of 2023, having increased revenue by 45% year-over-year," said
Antony Koblish, co-founder, President and Chief Executive Officer of TELA Bio. "We anticipate the recent closing of our follow-on
offering will help us accelerate the expansion of our commercial organization and further leverage our growing product portfolio and
deepening GPO access to drive market penetration. Despite looming macroeconomic challenges, we continue to expect revenue growth and
surgeon adoption to accelerate throughout the remainder of 2023."
Quarter 2023 Financial Results
was $11.9 million in the first quarter of 2023, an increase of 45% compared to the same period in 2022. The increase was due to the expansion
of our commercial organization, the addition of new customers, increased penetration within existing customer accounts, and stronger
international sales.
profit was $7.9 million in the first quarter of 2023, or 66% of revenue, compared to $5.0 million, or 61% of revenue, in the same period
in 2022. The increase in gross margin was primarily due to better inventory management practices resulting in a decrease in the reserve
for excess and obsolete inventory as a percentage of revenue as compared to the prior year period.
expenses were $19.2 million in the first quarter of 2023, compared to $14.8 million in the same period in 2022. The increase was due
to higher compensation and employee-related expenses from additional headcount as we continue to expand our organization, along with
increased travel expenses and increased consulting fees.
from operations was $11.3 million in the first quarter of 2023, compared to a loss from operations of $9.8 million in the same period
loss was $12.0 million in the first quarter of 2023, compared to a net loss of $10.9 million in the same period in 2022.
and cash equivalents on March 31, 2023 totaled $30.1 million.
continue to expect full year 2023 revenue to range from $60 million to $65 million, reflecting growth of 45% to 57% over full year 2022.
Bio will host a conference call at 4:30 p.m. Eastern Time on Thursday, May 11, 2023 to discuss its first quarter 2023 financial
results. Investors interested in listening to the conference call should register online. Participants are required to register a day
in advance or at minimum 15 minutes before the start of the call. A replay of the webcast can be accessed via the Events &
Presentations page of the investor section of TELA Bio's website.
Bio, Inc. (NASDAQ: TELA) is a commercial-stage medical technology company focused on providing innovative technologies that optimize
clinical outcomes by prioritizing the preservation and restoration of the patient's own anatomy. The Company is committed to providing
surgeons with advanced, economically effective soft-tissue reconstruction solutions that leverage the patient's natural healing response
while minimizing long-term exposure to permanent synthetic materials. For more information, visit www.telabio.com.
Regarding Forward-Looking Statements
press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Words
such as "may," "might," "will," "should," "believe," "expect,"
"anticipate," "estimate," "continue," "predict," "forecast," "project,"
"plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations are
forward-looking statements and reflect the current beliefs of TELA Bio's management. Such forward-looking statements include
statements relating to our expected revenue and revenue growth for the full year 2023. These
statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors that could
cause actual results and events to differ materially and adversely from those indicated by such forward-looking statements
including, among others: the impact to our business from macroeconomic conditions, including the COVID-19
pandemic, recessionary concerns, banking instability, and inflationary pressures, potentially impacting our ability to market our
products, demand for our products due to the deferral of elective procedures, the labor and staffing environment in the healthcare
industry, disruption in our supply chain, or pricing pressures concerning our products or the procedures using our products; our
ability to achieve or sustain profitability; our ability to gain market acceptance for our products and to accurately forecast and
meet customer demand; our ability to compete successfully; that data from earlier studies related to our products and interim data
from ongoing studies may not be replicated in later studies or indicative of future data; that data obtained from clinical studies
using our product may not be indicative of outcomes in other surgical settings; our ability to enhance our product offerings;
development and manufacturing problems; capacity constraints or delays in production of our products; maintenance of coverage and
adequate reimbursement for procedures using our products; product defects or failures. These risks and uncertainties are described
more fully in the "Risk Factors" section and elsewhere in our filings with the Securities and Exchange Commission and
available at www.sec.gov, including in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Any
forward-looking statements that we make in this announcement speak only as of the date of this press release, and TELA Bio assumes
no obligation to update forward-looking statements whether as a result of new information, future events or otherwise after the date
of this press release, except as required under applicable law.
thousands, except share and per share amounts)
| March 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 30,124 | $ | 42,019 | ||||
| Accounts receivable, net | 6,654 | 6,621 | ||||||
| Inventory | 15,105 | 11,792 | ||||||
| Prepaid expenses and other assets | 1,619 | 2,015 | ||||||
| Total current assets | 53,502 | 62,447 | ||||||
| Property and equipment, net | 1,695 | 1,682 | ||||||
| Intangible assets, net | 2,404 | 2,499 | ||||||
| Right-of-use assets | 1,187 | 1,227 | ||||||
| Total assets | $ | 58,788 | $ | 67,855 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,216 | $ | 1,534 | ||||
| Accrued expenses and other current liabilities | 9,190 | 10,869 | ||||||
| Total current liabilities | 14,406 | 12,403 | ||||||
| Long-term debt | 40,063 | 39,916 | ||||||
| Other long-term liabilities | 1,178 | 1,231 | ||||||
| Total liabilities | 55,647 | 53,550 | ||||||
| Stockholders' equity: | ||||||||
| Preferred stock; $0.001 par value: 10,000,000 shares authorized; no shares issued and outstanding | - | - | ||||||
| Common stock; $0.001 par value: 200,000,000 shares authorized; 19,227,777 and 19,165,027 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 19 | 19 | ||||||
| Additional paid-in capital | 289,254 | 288,361 | ||||||
| Accumulated other comprehensive income | 120 | 150 | ||||||
| Accumulated deficit | (286,252 | ) | (274,225 | ) | ||||
| Total stockholders' equity | 3,141 | 14,305 | ||||||
| Total liabilities and stockholders' equity | $ | 58,788 | $ | 67,855 |
Statements of Operations and Comprehensive Loss
thousands, except share and per share amounts)
| Three months ended March 31, | ||||||||
| 2023 | 2022 | |||||||
| Revenue | $ | 11,909 | $ | 8,231 | ||||
| Cost of revenue (excluding amortization of intangible assets) | 3,916 | 3,156 | ||||||
| Amortization of intangible assets | 95 | 76 | ||||||
| Gross profit | 7,898 | 4,999 | ||||||
| Operating expenses: | ||||||||
| Sales and marketing | 13,466 | 9,378 | ||||||
| General and administrative | 3,634 | 3,458 | ||||||
| Research and development | 2,052 | 2,007 | ||||||
| Total operating expenses | 19,152 | 14,843 | ||||||
| Loss from operations | (11,254 | ) | (9,844 | ) | ||||
| Other expense: | ||||||||
| Interest expense | (1,246 | ) | (911 | ) | ||||
| Other income (expense) | 473 | (107 | ) | |||||
| Total other expense | (773 | ) | (1,018 | ) | ||||
| Net loss | $ | (12,027 | ) | $ | (10,862 | ) | ||
| Net loss per common share, basic and diluted | $ | (0.63 | ) | $ | (0.75 | ) | ||
| Weighted average common shares outstanding, basic and diluted | 19,185,621 | 14,538,864 | ||||||
| Comprehensive loss: | ||||||||
| Net loss | $ | (12,027 | ) | $ | (10,862 | ) | ||
| Foreign currency translation adjustment | (30 | ) | 47 | |||||
| Comprehensive loss | $ | (12,057 | ) | $ | (10,815 | ) |