MALVERN, PA — TELA Bio, Inc. (NASDAQ: TELA) this week reported financial results for the fourth quarter and full year that ended December 31, 2022.
Recent Highlights
- Reported revenue of $11.6 million for the fourth quarter and $41.4 million for the full year 2022, representing growth of 39% and 41%, respectively, over the corresponding periods of 2021;
- Increased demand for OviTex® and OviTex PRS Reinforced Tissue Matrix products during the full year 2022, resulting in a year-over-year revenue increase for each product of approximately 26% and 92%, respectively;
- Announced U.S. commercial launch of NIVISTM Fibrillar Collagen Pack to expand product portfolio into healing of surgical wounds;
- Announced U.S. Commercial Launch of Two New OviTex LPR device configurations to support repair of large abdominal hernias using robotic and laparoscopic techniques; and
- Awarded a three-year dual-source agreement in the biosynthetic category with a national group purchasing organization (GPO).
“TELA has completed yet another year of impressive growth, achieving a 41% year-over-year increase in annual revenues, in spite of significant macroeconomic headwinds throughout the year that at times resulted in lower than expected procedure volumes,” said Antony Koblish, co-founder, President and Chief Executive Officer of TELA Bio. “Our growing product portfolio, including the introduction of complimentary soft tissue preservation and restoration initiatives along with OviTex products specifically designed to expand our reach in robotic and larposcopic procedures, should continue to drive market share for our OviTex products. We expect that these additions, coupled with our compelling clinical data and widening GPO access will lead to increased adoption of our products. We remain confident in an exceptionally solid foundation for expansion, and we anticipate our broadening sales team will continue to sustain meaningful revenue growth throughout 2023.”
Fourth Quarter 2022 Financial Results
Revenue was $11.6 million in the fourth quarter of 2022, an increase of 39% compared to the same period in 2021. The increase was due to the expansion of the Company’s commercial organization, increased penetration within existing customer accounts, and stronger international sales.
Gross profit was $8.2 million in the fourth quarter of 2022, or 70% of revenue, compared to $5.7 million, or 68% of revenue, in the same period in 2021. The increase in gross margin was primarily due to a decrease in the reserve for excess and obsolete inventory as a percentage of revenue as compared to the prior year.
Operating expenses were $17.6 million in the fourth quarter of 2022, compared to $13.3 million in the same period in 2021. The increase was due to higher salaries and employee-related expenses from additional headcount as the Company continues to expand its organization, increased travel expenses and increased consulting fees.
Loss from operations was $9.4 million in the fourth quarter of 2022, compared to a loss from operations of $7.7 million in the same period in 2021.
Net loss was $10.0 million in the fourth quarter of 2022, compared to a net loss of $8.6 million in the same period in 2021.
Full Year 2022 Financial Results
Revenue was $41.4 million for the full year 2022, an increase of 41% compared to the full year 2021. The increase in revenue was primarily driven by an increase in unit sales of the Company’s products due to the expansion of its commercial organization, increased penetration within existing customer accounts, and stronger international sales.
Gross profit was $27.0 million for the full year 2022, or 65% of revenue, compared to $18.8 million, or 64% of revenue, for the full year 2021. The gross margin increase was due primarily to a decrease in the reserve for excess and obsolete inventory as a percentage of revenue as compared to the prior year which offset the increase in amortization of intangible assets.
Operating expenses were $66.1 million for the full year 2022, compared to $48.3 million for the full year 2021. The increase was due to higher salaries and employee-related expenses from additional headcount as the Company continues to expand its organization, increased travel expenses, increased consulting fees and an increased research and development investment.
Loss from operations was $39.0 million for the full year 2022, compared to a loss from operations of $29.5 million for the full year 2021.
Net loss was $44.3 million for the full year 2022, compared to a net loss of $33.3 million for the full year 2021.
Cash and cash equivalents on December 31, 2022, totaled $42.0 million.
2023 Financial Guidance
Full year 2023 revenue is projected to range from $60 million to $65 million, reflecting growth of 45% to 57% over full year 2022.
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