TELA Bio, Inc. (NASDAQ:TELA) Q1 2022 Results Earnings Conference Call May 10, 2022 4:30 PM ET

Company Participants

Louisa Smith - Investor Relations

Antony Koblish - President and Chief Executive Officer

Roberto Cuca - Chief Operating Officer and Chief Financial Officer

Conference Call Participants

Zachary Weiner - Jefferies

David Turkaly - JMP Securities

Operator

Good afternoon, ladies and gentlemen, and welcome to the TELA Bio First Quarter 2022 Earnings Conference Call. [Operator Instructions]

As a reminder, this conference is being recorded. I would now like to turn the conference over to Louisa Smith from the Gilmartin Group. Ms. Smith, the floor is yours.

Louisa Smith

Thank you, Chris, and good afternoon. Earlier today, TELA Bio released financial results for the first quarter of 2022. A copy of the press release is available on the company's website. Joining me on today's call are Tony Koblish, President and Chief Executive Officer; and Roberto Cuca, Chief Operating Officer and Chief Financial Officer. Before we begin, I'd like to remind you that during this conference call, the company will make projections and forward-looking statements regarding future events.

We encourage you to review the company's past and future filings with the SEC, including, without limitation, the company's 2021 Form 10-K and Form 10-Qs, which identify the specific factors that may cause actual results or events to differ materially from those described in these forward-looking statements. These factors may include, without limitation, statements regarding product development, product potential, the impact of COVID-19, the regulatory environment, sales and marketing strategies, capital resources or operating performance. With that, I'll now turn the call over to Tony.

Antony Koblish

Thank you, Louisa. Good afternoon, everyone, and thanks for joining us today. I'm pleased to report that TELA Bio had a strong finish to the quarter with March marking the highest monthly revenue in the company's history. Revenue from the quarter was $8.2 million, up 40% year-over-year. Although the Omicron variant caused a sluggish start to the year, our momentum built as the quarter progressed. Elective surgery volumes were down in January and February across most of the med-tech sector, where we saw simple hernia surgery hit disproportionately as hospital systems tended to prioritize more urgent non-elective surgeries.

In contrast, OviTex PRS showed resilience to the effects of COVID-19, with demand growing over the period, resulting in revenues up 111% year-over-year. Our analysis of market data corroborates anecdotal reports of a backlog in the label procedures, and we expect some of that backlog to be discharged in the coming quarters. Further evidence in this regard is shown by a strong start to our second quarter.