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MALVERN, Pa. - TELA Bio, Inc. (NASDAQ:TELA) saw its shares tumble 19.2% after the medical technology company reported fourth-quarter revenue that fell short of analyst expectations and provided weak guidance for the first quarter of 2025.
The company, which focuses on soft-tissue reconstruction solutions, posted revenue of $17.6 million for the fourth quarter, a 4% increase YoY but significantly below the consensus estimate of $23.17 million. Adjusted earnings per share came in at -$0.23, slightly worse than the -$0.22 analysts had projected.
TELA Bio’s fourth-quarter performance was hampered by what CEO Antony Koblish described as "a confluence of disruptions, some of which we believe are transient and others that have already been redressed." The company saw its gross margin decline to 64% from 68% in the same period last year, primarily due to higher expenses related to excess inventory adjustments.
For the full year 2024, TELA Bio reported revenue of $69.3 million, representing a 19% increase over 2023. The company highlighted increased demand for its OviTex and OviTex PRS Reinforced Tissue Matrix products, with unit sales volume growth of approximately 33% and 31%, respectively.
Looking ahead, TELA Bio provided first-quarter 2025 revenue guidance of $17.0 million to $18.0 million, representing growth of just 2% to 8% YoY. For the full year 2025, the company projects revenue between $85.0 million and $88.0 million, implying 23% to 27% growth.
"We are optimistic about TELA’s outlook moving forward and believe we have taken necessary steps to drive additional market share capture in our primary indications, restore topline growth more consistent with our historical precedent, and continue our steady path towards profitability," Koblish stated.
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