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TELA Bio (TELA)
NASDAQ:TELA
US Market

TELA Bio (TELA) AI Stock Analysis

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TELA Bio

(NASDAQ:TELA)

54Neutral
TELA Bio's overall stock score reflects strong revenue growth and a solid financial structure, albeit with ongoing profitability and cash flow challenges. The technical analysis indicates bearish momentum with significant oversold conditions, while valuation remains challenging due to negative earnings. The positive guidance from the earnings call provides a hopeful outlook for future growth, offsetting some of the immediate concerns.
Positive Factors
Market Opportunity
TELA Bio is expected to take market share in the $1.5B hernia mesh market, translating to growth and profitability.
Product Differentiation
OviTex's biocompatibility and safety features, strength and handling benefits, and its lower-cost profile versus biologic competitors, has potential to be a disruptive device in both the hernia repair and plastic reconstructive industries.
Product Launch
New products in both PRS and Hernia are anticipated to contribute to growth reacceleration.
Negative Factors
Financial Performance
Despite controlling some costs, the operating loss was higher than anticipated, suggesting financial challenges.
Sales Force Turnover
Sales force turnover has created risks for achieving future sales targets, as new representatives take time to become productive.
Stock Valuation
The company may need another round of financing to fund operations, which could negatively impact the stock.

TELA Bio (TELA) vs. S&P 500 (SPY)

TELA Bio Business Overview & Revenue Model

Company DescriptionTELA Bio is a medical technology company focused on the design, development, and commercialization of innovative soft tissue reconstruction solutions. Operating primarily within the healthcare and biomedical sectors, TELA Bio offers a portfolio of products that utilize its proprietary tissue reinforcement technology, OviTex, designed for a range of applications including hernia repair and abdominal wall reconstruction.
How the Company Makes MoneyTELA Bio generates revenue primarily through the sale of its OviTex products to hospitals, surgical centers, and healthcare providers. The company operates within the medical device industry, where it benefits from the growing demand for advanced tissue reinforcement and reconstruction solutions. Key revenue streams include direct sales to healthcare facilities and strategic partnerships with medical distributors that expand the reach of their products. TELA Bio's earnings are also influenced by factors such as the adoption rate of innovative surgical technologies, ongoing research and development efforts, and the company's ability to navigate regulatory requirements in various markets.

TELA Bio Financial Statement Overview

Summary
TELA Bio shows strong revenue growth with an 18.55% increase from 2023 to 2024. However, profitability is a concern due to negative EBIT and net profit margins. The balance sheet is solid with no debt and a stable equity ratio, though cash flow from operations is challenging. Overall, the company has a robust financial structure but needs to improve profitability and cash flow generation.
Income Statement
65
Positive
TELA Bio has shown consistent revenue growth over the years, with a notable increase of 18.55% from 2023 to 2024. However, profitability remains a concern, as evidenced by negative EBIT and net profit margins, indicating ongoing operational challenges. The gross profit margin is relatively healthy, suggesting some efficiency in production or service delivery. Overall, the company is growing but still struggling to turn a profit.
Balance Sheet
70
Positive
The company's balance sheet is solid, with no debt as of 2024, indicating a strong equity position. The equity ratio of 32.86% reflects a stable financial base. Return on equity is negative due to net losses, but the absence of debt reduces financial risk. Overall, TELA Bio maintains a stable financial position but needs to improve profitability to enhance shareholder returns.
Cash Flow
50
Neutral
Cash flow from operations remains challenging, with zero operating cash flow in 2024, indicating difficulties in generating cash from core activities. However, financing activities have significantly bolstered cash reserves. The lack of free cash flow growth highlights the need for the company to improve operational efficiency to sustain long-term growth. Cash flow management remains a critical area for improvement.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
69.30M58.45M41.42M29.46M18.21M
Gross Profit
46.49M40.11M27.04M18.81M11.23M
EBIT
-34.12M-44.08M-39.01M-29.45M-25.27M
EBITDA
-31.68M-40.63M-39.06M-29.14M-24.70M
Net Income Common Stockholders
-37.84M-46.66M-44.34M-36.11M-31.88M
Balance SheetCash, Cash Equivalents and Short-Term Investments
52.67M46.73M42.02M43.93M74.39M
Total Assets
86.57M78.05M67.86M62.54M86.46M
Total Debt
41.67M41.08M39.92M31.49M30.83M
Net Debt
-11.00M-5.65M-2.10M-12.44M-43.57M
Total Liabilities
58.11M59.17M53.55M42.45M37.43M
Stockholders Equity
28.46M18.88M14.30M20.10M49.03M
Cash FlowFree Cash Flow
-42.58M-41.47M-42.62M-31.06M-24.62M
Operating Cash Flow
-41.59M-40.86M-40.75M-30.43M-24.46M
Investing Cash Flow
4.45M-599.00K-1.87M-627.00K9.12M
Financing Cash Flow
43.06M46.27M40.85M585.00K44.41M

TELA Bio Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.22
Price Trends
50DMA
2.39
Negative
100DMA
2.65
Negative
200DMA
3.09
Negative
Market Momentum
MACD
-0.35
Positive
RSI
20.52
Positive
STOCH
9.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TELA, the sentiment is Negative. The current price of 1.22 is below the 20-day moving average (MA) of 1.99, below the 50-day MA of 2.39, and below the 200-day MA of 3.09, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 20.52 is Positive, neither overbought nor oversold. The STOCH value of 9.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TELA.

TELA Bio Risk Analysis

TELA Bio disclosed 72 risk factors in its most recent earnings report. TELA Bio reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

TELA Bio Peers Comparison

Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
$48.85M-159.87%18.56%32.65%
51
Neutral
$626.70M-22.87%7.08%20.45%
49
Neutral
$213.07M-20.21%-8.92%31.98%
49
Neutral
$16.62M-153.37%-6.17%8.27%
48
Neutral
$6.84B1.02-53.11%2.50%16.84%0.92%
46
Neutral
$1.28B-291.71%26.81%26.47%
43
Neutral
$439.60M-12.32%-9.23%-359.07%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TELA
TELA Bio
1.27
-4.03
-76.04%
ATEC
Alphatec Holdings
10.08
-3.41
-25.28%
ANIK
Anika Therapeutics
15.03
-10.80
-41.81%
IRIX
Iridex
0.99
-2.03
-67.22%
OFIX
Orthofix
16.01
2.51
18.59%
SRDX
SurModics
30.53
3.56
13.20%

TELA Bio Earnings Call Summary

Earnings Call Date: Mar 20, 2025 | % Change Since: -47.86% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
While TELA Bio experienced significant challenges in Q4 2024 due to sales force disruptions and external factors, the company maintains a positive outlook for 2025 with strong product portfolio expansion and growth expectations. The highlights of full-year revenue growth and new product launches are tempered by the Q4 setbacks and sales force challenges.
Highlights
Revenue Growth in 2024
Full-year 2024 revenue increased by 19% to $69.3 million, with OviTex revenue growing 17% and OviTex PRS revenue growing 21%.
Product Portfolio Expansion
Launched the LiquiFix and OviTex IHR product families in 2024, both gaining traction quickly and expected to continue growing in 2025.
Positive Outlook for 2025
Expected revenue growth of 23% to 27% in 2025, with plans to reach $100 million in revenue and achieve profitability in the near future.
Lowlights
Q4 2024 Revenue Shortfall
Q4 revenue was $17.6 million, marking only a 3.8% increase compared to Q4 2023, impacted by lower than planned sales force headcount and unexpected departures.
Sales Force Challenges
Lost 11 territory managers unexpectedly in November and December 2024, impacting sales performance and leading to volatility in topline performance.
External Headwinds
Hurricane Helene and IV fluid shortages impacted sales in key regions, contributing to Q4 underperformance.
Company Guidance
During the TELA Bio Fourth Quarter 2024 Earnings Conference Call, the company provided guidance on several key metrics. For 2025, TELA Bio anticipates revenues to be in the range of $85 million to $88 million, indicating a growth of 23% to 27% over the full-year 2024. The company expects operating loss and net loss to decrease, with operating expenses remaining flat compared to 2024. In the first quarter of 2025, TELA Bio projects revenues between $17 million and $18 million. The company aims to reach $100 million in revenue soon and eventually achieve profitability. This outlook is underpinned by a strategic realignment of their sales force, new product launches, and an expanding market presence.

TELA Bio Corporate Events

Business Operations and StrategyFinancial Disclosures
TELA Bio Projects Strong Revenue Growth for 2025
Positive
Mar 20, 2025

On March 20, 2025, TELA Bio reported its financial results for the fourth quarter and full year of 2024, showing a 19% revenue growth for the year, driven by increased demand for its OviTex and OviTex PRS products. Despite some disruptions affecting the fourth quarter, the company remains optimistic about capturing additional market share and restoring growth. TELA Bio also provided a revenue guidance for 2025, projecting growth of 23% to 27% over 2024, while maintaining operating expenses at the same level as the previous year.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.