TELA Bio, Inc. (NASDAQ:TELA) Q3 2023 Earnings Call Transcript November 9, 2023 4:30 PM ET

Company Participants

Greg Chodaczek - Gilmartin Group

Tony Koblish - President and Chief Executive Officer

Roberto Cuca - Chief Operating Officer and Chief Financial Officer

Conference Call Participants

Frank Takkinen - Lake Street Capital Markets

Caitlin Cronin - Canaccord Genuity

Matthew O’Brien - Piper Sandler

Michael Sarcone - Jefferies

Dave Turkaly - JMP Securities

Operator

Good day and thank you for standing by, and welcome to the TELA Bio Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Please be advised that today’s conference call is being recorded.

I would now like to introduce your host for today’s call, Greg Chodaczek. You may begin.

Greg Chodaczek

Thank you, Justin, and good afternoon, everyone. Earlier today, TELA Bio released financial results for the third quarter 2023. 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 Annual Report on Form 10-K and quarterly reports on 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 and pipeline opportunities, product potential, the impact of various macroeconomic conditions, including the COVID-19 pandemic, recessionary concerns, banking instability and inflationary pressures, the regulatory environment, the introduction of new products or product enhancements by us or others including those which may be perceived to negatively impact the demand of our products now or in the future, sales and marketing strategies, capital resources or operating performance.

With that, I’ll now turn the call over to Tony.

Tony Koblish

Thank you, Greg. Good afternoon, everyone, and thanks for joining us today for our third quarter 2023 earnings call. We are pleased to report another quarter of strong financial results and operational execution. Revenue in the third quarter with 15.1 million growing 35% year-over-year. Notably, this was the 11th successive quarter of 35% growth or greater, driven by continued market share gains and increased surge in adoption of the OviTex product portfolio. PRS growth was especially strong up 46% year-over-year, notably driven by the launch of the long-term resorbable version of OviTex PRS, which includes specific design features aimed at enhancing the clinical utility of OviTex PRS for surgeons and patients in plastic and reconstructive surgery. In addition, our hernia portfolio continues to perform with OviTex recently becoming the most implanted biologic hernia repair mesh in the United States, reflecting the growth recognition of the clinical utility of the product for this application.