Tela Bio, Inc. ((TELA)) has held its Q4 earnings call. Read on for the main highlights of the call.
In the recent earnings call, TELA Bio, Inc. expressed a cautiously optimistic sentiment despite facing significant challenges in the fourth quarter of 2024. The company acknowledged disruptions in their sales force and external factors that impacted performance but maintained a positive outlook for 2025. The overall sentiment was one of resilience, with a focus on future growth and product expansion.
Revenue Growth in 2024
The company reported a full-year revenue increase of 19% in 2024, reaching $69.3 million. This growth was driven by a 17% increase in OviTex revenue and a 21% rise in OviTex PRS revenue. These figures highlight the company’s ability to grow its revenue base despite the challenges faced in the latter part of the year.
Product Portfolio Expansion
In 2024, TELA Bio launched the LiquiFix and OviTex IHR product families, both of which quickly gained traction in the market. The company expects these products to continue their growth trajectory into 2025, contributing significantly to the company’s revenue and market presence.
Positive Outlook for 2025
Looking ahead, TELA Bio is projecting a revenue growth of 23% to 27% in 2025, with ambitions to reach $100 million in revenue and achieve profitability in the near future. This positive outlook is supported by strategic initiatives and an expanding product portfolio.
Q4 2024 Revenue Shortfall
The fourth quarter of 2024 saw a modest revenue increase of 3.8% to $17.6 million compared to the same period in 2023. This shortfall was attributed to lower than planned sales force headcount and unexpected departures, which affected the company’s sales performance.
Sales Force Challenges
The company faced significant challenges with its sales force, losing 11 territory managers unexpectedly in November and December 2024. This loss led to volatility in topline performance and impacted the company’s ability to meet its revenue targets for the quarter.
External Headwinds
External factors such as Hurricane Helene and IV fluid shortages also contributed to the company’s underperformance in key regions during the fourth quarter. These events further compounded the challenges faced by TELA Bio in achieving its revenue goals.
Forward-Looking Guidance
During the earnings call, TELA Bio provided guidance for 2025, anticipating revenues between $85 million and $88 million, reflecting a growth of 23% to 27% over 2024. The company expects operating loss and net loss to decrease, with operating expenses remaining flat. The first quarter of 2025 is projected to bring in revenues between $17 million and $18 million. TELA Bio aims to reach $100 million in revenue soon, supported by a strategic realignment of their sales force and new product launches.
In conclusion, TELA Bio’s earnings call highlighted both the challenges and opportunities facing the company. While the fourth quarter of 2024 presented significant hurdles, the company remains optimistic about its growth prospects in 2025. With a strong product portfolio and strategic initiatives in place, TELA Bio is poised to overcome its current challenges and achieve its ambitious financial goals.