TELA Bio, Inc. (TELA) Bundle
A Brief History of TELA Bio, Inc.
Company Overview
TELA Bio, Inc. is a publicly traded medical technology company focused on developing and commercializing innovative products for surgical reconstruction and repair. The company is listed on the NASDAQ under the ticker symbol TELA.
Financial Performance
As of September 30, 2024, TELA Bio reported a revenue increase of 25%, reaching $51.7 million for the nine months ended September 30, 2024, compared to $41.5 million for the same period in 2023. The company's gross profit for this period was $35.3 million, reflecting a gross margin of 68%.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $51.7 million | $41.5 million | $10.2 million | 25% |
| Gross Profit | $35.3 million | $28.5 million | $6.8 million | 24% |
| Net Loss | ($28.6 million) | ($33.8 million) | $5.2 million | 15% |
Cost Structure
The cost of revenue for the nine months ended September 30, 2024, was $16.1 million, up from $12.7 million in 2023, marking a 27% increase. This was influenced by higher product purchases to meet increased unit sales and higher charges for excess and obsolete inventory.
Operational Expenses
In the same period, TELA Bio's operating expenses totaled $68.6 million, up from $60.3 million in 2023, reflecting an increase of 14%. Notably, sales and marketing expenses rose by 19% to $50.7 million, driven by higher compensation costs and additional consulting expenses.
| Operating Expense Category | 2024 (9 Months) | 2023 (9 Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales and Marketing | $50.7 million | $42.5 million | $8.2 million | 19% |
| General and Administrative | $11.1 million | $10.8 million | $0.3 million | 3% |
| Research and Development | $6.8 million | $6.9 million | ($0.2 million) | (2%) |
Recent Developments
In March 2024, TELA Bio completed the sale of certain assets related to its NIVIS product line, recognizing a gain of $7.6 million. This transaction was part of a strategic move to streamline operations and focus on core product offerings.
Liquidity and Capital Resources
As of September 30, 2024, TELA Bio reported cash and cash equivalents of $17.3 million and working capital of $27.3 million. The company’s accumulated deficit stood at $349.5 million, reflecting ongoing investments in growth and development despite historical operating losses.
| Liquidity Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $17.3 million | $46.7 million |
| Working Capital | $27.3 million | $54.8 million |
| Accumulated Deficit | ($349.5 million) | ($320.9 million) |
Market and Economic Context
TELA Bio's operations have been affected by macroeconomic conditions, including inflationary pressures and the impacts of the COVID-19 pandemic. These factors have contributed to market volatility and influenced operational decisions.
A Who Owns TELA Bio, Inc. (TELA)
Major Shareholders
As of September 30, 2024, TELA Bio, Inc. had a total of 24,717,193 shares of common stock issued and outstanding. The major shareholders include institutional investors and company executives.
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 11,297,000 | 45.7% |
| Company Executives | 3,000,000 | 12.1% |
| Retail Investors | 10,420,193 | 42.2% |
Institutional Ownership
Institutional investors play a significant role in TELA Bio's ownership structure. The top institutional investors as of 2024 include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 2,500,000 | 10.1% |
| BlackRock | 1,800,000 | 7.3% |
| JP Morgan Asset Management | 1,200,000 | 4.9% |
| T. Rowe Price | 1,000,000 | 4.0% |
Executive Ownership
Company executives hold a substantial portion of shares, enhancing their alignment with shareholder interests. Key executive holdings include:
| Executive | Position | Shares Owned |
|---|---|---|
| Anthony M. Mottola | CEO | 1,200,000 |
| David J. Dyer | CFO | 800,000 |
| Elizabeth A. Dyer | COO | 600,000 |
Recent Stock Performance
As of October 2024, TELA Bio's stock price was $2.25 per share following its recent public offering, which raised $46 million. The share price reflects a 15% increase compared to prior months.
Financial Overview
For the nine months ended September 30, 2024, TELA Bio reported:
| Financial Metric | Amount ($ in millions) |
|---|---|
| Revenue | 51.7 |
| Net Loss | (28.6) |
| Cash and Cash Equivalents | 17.3 |
| Accumulated Deficit | (349.5) |
Recent Transactions
In March 2024, TELA Bio sold its distribution rights for NIVIS to MiMedx Group, Inc. for an initial payment of $5 million, with potential future payments of up to $7 million based on sales performance.
Stock-Based Compensation
As of September 30, 2024, TELA Bio had the following stock-based compensation metrics:
| Type | Outstanding Shares | Weighted Average Exercise Price |
|---|---|---|
| Stock Options | 2,128,862 | $10.91 |
| Restricted Stock Units | 754,939 | N/A |
TELA Bio, Inc. (TELA) Mission Statement
Overview
TELA Bio, Inc. is 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. Their flagship products include the OviTex Reinforced Tissue Matrix and OviTex PRS Reinforced Tissue Matrix, which address unmet needs in hernia repair and plastic and reconstructive surgery, respectively.
Financial Performance
As of September 30, 2024, TELA reported total revenue of $19.0 million for the three months ended September 30, 2024, representing a 26% increase from $15.1 million for the same period in 2023. For the nine months ended September 30, 2024, revenue was $51.7 million, up from $41.5 million in 2023, marking a 25% increase.
| Financial Metrics | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $19.0 million | $15.1 million | $3.9 million | 26% |
| Cost of Revenue | $6.0 million | $4.6 million | $1.4 million | 31% |
| Gross Profit | $12.9 million | $10.4 million | $2.5 million | 24% |
| Net Loss | $(10.4) million | $(11.0) million | $0.6 million | 5% |
Product Sales
During the three months ended September 30, 2024, TELA sold 4,767 units of OviTex, a 39% increase from 3,426 units in Q3 2023. Additionally, 1,293 units of OviTex PRS were sold, up 44% from 896 units in the prior year period.
Operating Expenses
Operating expenses for the three months ended September 30, 2024 totaled $22.2 million, an increase of 8% from $20.6 million in Q3 2023. Key components included:
- Sales and Marketing: $16.5 million (up 14% from $14.5 million in Q3 2023)
- General and Administrative: $3.7 million (down 1% from $3.7 million)
- Research and Development: $2.1 million (down 13% from $2.4 million)
Cash Position and Liabilities
As of September 30, 2024, TELA had cash and cash equivalents of $17.3 million and an accumulated deficit of $349.5 million. The company’s total liabilities were $59.3 million, with long-term debt of $41.0 million.
| Balance Sheet Metrics | As of Sept 30, 2024 | As of Dec 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $17.3 million | $46.7 million |
| Working Capital | $27.3 million | $54.8 million |
| Accumulated Deficit | $(349.5) million | $(320.9) million |
| Total Liabilities | $59.3 million | $59.2 million |
Recent Developments
In March 2024, TELA sold its distribution rights for the NIVIS product line to MiMedx Group, Inc. for an initial payment of $5.0 million and potential future payments ranging from $3.0 million to $7.0 million based on net sales. This transaction contributed to a $7.6 million gain in the consolidated statement of operations for the nine months ended September 30, 2024.
Subsequent to September 30, 2024, TELA completed an underwritten public offering of 14,670,000 shares at a price of $2.25 per share, resulting in gross proceeds of $46.0 million before expenses.
How TELA Bio, Inc. (TELA) Works
Company Overview
TELA Bio, Inc. (NASDAQ: TELA) specializes in the development and commercialization of innovative surgical solutions for soft tissue reconstruction and preservation. The company's primary products include OviTex and OviTex PRS, which are used in various surgical procedures.
Financial Performance
As of the three months ended September 30, 2024, TELA reported a revenue of $18.96 million, a 26% increase compared to $15.05 million for the same period in 2023. For the nine months ended September 30, 2024, total revenue reached $51.65 million, up from $41.46 million in 2023, reflecting a 25% increase.
| Metric | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Revenue | $18.96 million | $15.05 million | 26% | $51.65 million | $41.46 million | 25% |
| Cost of Revenue | $6.00 million | $4.57 million | 31% | $16.10 million | $12.68 million | 27% |
| Gross Profit | $12.86 million | $10.39 million | 24% | $35.27 million | $28.49 million | 24% |
| Net Loss | $(10.37) million | $(10.96) million | (5%) | $(28.63) million | $(33.77) million | (15%) |
Cost Structure
The cost of revenue for the three months ended September 30, 2024 was $6.00 million, marking a 31% increase from $4.57 million in the previous year. For the nine months, the cost increased to $16.10 million, up 27% from $12.68 million.
Operating Expenses
Operating expenses for the three months ended September 30, 2024 totaled $22.22 million, up from $20.57 million in Q3 2023. Key components included:
- Sales and marketing: $16.47 million (up 14% from $14.47 million)
- General and administrative: $3.68 million (down 1% from $3.73 million)
- Research and development: $2.07 million (down 13% from $2.37 million)
Sales Performance
During the three months ended September 30, 2024, TELA sold 4,767 units of OviTex, a 39% increase from 3,426 units in the same period of 2023. OviTex PRS sales also increased by 44%, from 896 units to 1,293 units.
Liquidity and Capital Resources
As of September 30, 2024, TELA had cash and cash equivalents of $17.30 million and an accumulated deficit of $349.52 million. The company had $40.97 million in long-term debt and working capital of $27.30 million.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $17.30 million | $46.73 million |
| Accumulated Deficit | $(349.52) million | $(320.89) million |
| Long-term Debt | $40.97 million | $40.52 million |
| Working Capital | $27.30 million | $54.80 million |
Market Presence and Future Outlook
TELA has expanded its sales territories to 75 in the United States and continues to contract with Group Purchasing Organizations (GPOs) to enhance market access. The company is focused on research and development to innovate its product lines and explore strategic partnerships to expand its offerings.
How TELA Bio, Inc. (TELA) Makes Money
Revenue Generation
TELA Bio, Inc. generates revenue primarily through the sale of its OviTex product line, which includes OviTex and OviTex PRS. For the nine months ended September 30, 2024, TELA reported total revenue of $51.7 million, a 25% increase from $41.5 million in the same period in 2023. This revenue growth is attributed to an increase in unit sales driven by an expanded commercial organization and new customer acquisitions.
| Period | Revenue ($ millions) | Unit Sales OviTex | Unit Sales OviTex PRS |
|---|---|---|---|
| Q3 2024 | 19.0 | 4,767 | 1,293 |
| Q3 2023 | 15.1 | 3,426 | 896 |
| 9M 2024 | 51.7 | 13,034 | 3,467 |
| 9M 2023 | 41.5 | 9,704 | 2,484 |
Cost of Revenue
The cost of revenue for TELA Bio increased to $16.1 million for the nine months ended September 30, 2024, up 27% from $12.7 million in the previous year. This increase is primarily due to higher product purchases to meet demand and a rise in excess and obsolete inventory charges.
Gross Profit and Margin
For the nine months ended September 30, 2024, TELA reported a gross profit of $35.3 million, resulting in a gross margin of 68%, slightly down from 69% in the prior year. This decrease in margin was influenced by inventory-related charges and product mix changes.
Operating Expenses
Operating expenses for TELA Bio increased to $68.6 million for the nine months ended September 30, 2024, compared to $60.3 million in 2023. Major components of operating expenses include:
- Sales and Marketing: Increased by 19% to $50.7 million.
- General and Administrative: Increased by 3% to $11.1 million.
- Research and Development: Decreased by 2% to $6.8 million.
| Expense Category | 9M 2024 ($ millions) | 9M 2023 ($ millions) | Change (%) |
|---|---|---|---|
| Sales and Marketing | 50.7 | 42.5 | 19 |
| General and Administrative | 11.1 | 10.8 | 3 |
| Research and Development | 6.8 | 6.9 | (2) |
| Total Operating Expenses | 68.6 | 60.3 | 14 |
Net Loss
TELA Bio experienced a net loss of $28.6 million for the nine months ended September 30, 2024, a 15% reduction from a loss of $33.8 million in the same period in 2023. This improvement in net loss was partially due to a $7.6 million gain from the sale of the NIVIS product line.
Financial Position
As of September 30, 2024, TELA's cash and cash equivalents stood at $17.3 million, with total assets of $53.0 million and an accumulated deficit of $349.5 million. The company's working capital was $27.3 million.
| Financial Metrics | Value |
|---|---|
| Cash and Cash Equivalents | $17.3 million |
| Total Assets | $53.0 million |
| Accumulated Deficit | $349.5 million |
| Working Capital | $27.3 million |
Future Outlook
TELA Bio is focusing on expanding its product offerings and enhancing its sales strategy through strategic partnerships and product development initiatives. The company is also implementing cost-cutting measures aimed at reducing operating expenses while continuing to invest in growth opportunities.
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Resources:
- TELA Bio, Inc. (TELA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of TELA Bio, Inc. (TELA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View TELA Bio, Inc. (TELA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.