TELA Bio, Inc. (NASDAQ:TELA) Q2 2024 Results Conference Call August 12, 2024 4:30 PM ET

Company Participants

Louisa Smith - Vice President of Gilmartin Group
Antony Koblish - Co-founder, President & CEO
Roberto Cuca - COO & CFO

Conference Call Participants

Frank Takkinen - Lake Street Capital Markets
Caitlin Cronin - Canaccord Genuity
Matthew O'Brien - Piper Sandler
Michael Sarcone - Jefferies
David Turkaly - Citizens JMP

Operator

Good afternoon, ladies and gentlemen, and welcome to the TELA Bio Second Quarter 2024 Earnings Conference Call. [Operator Instructions]. A question-and-answer session will follow the prepared remarks. As a reminder, this conference call is being recorded. I would now like to turn the conference call over to Louisa Smith from Gilmartin Group.

Louisa Smith

Thank you, Marvin, and good afternoon, everyone. Earlier today, TELA Bio released financial results for the second quarter of 2024. 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 may make projections and forward-looking statements regard 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-Q, 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 identified in our filings, changes in surgical procedure volumes, the regulatory environment, sales and marketing strategy is capital resources or operating performance.

With that, I'd now like to turn the call over to Tony.

Antony Koblish

Thanks, Louisa, and good afternoon, everyone. Thank you for joining TELA Bio second quarter 2024 earnings call. During the call, I'll provide updates on our business and strategic initiatives, after which Roberto will elaborate further on Q2 results before we open the call up for questions.

During the quarter, TELA faced some transient challenges that we were able to manage through and still grow revenue 11% to $16.1 million. Demand for our products remained strong in the second quarter, and we do not expect these adverse issues to persist into the second half of 2024. The biggest challenge in the quarter was a ransomware attack at our most recently added and consequently fastest-growing GPO customer that consists of approximately 150 separate hospitals. The customer detected the attack in the second week of May and resolved it two weeks later, but it appears that the return to normal operations may have taken a couple of additional weeks.