TELA Bio, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable revenue growth and a reduction in net losses compared to the same period in 2023. Revenue for the third quarter reached $18.96 million, a 26% increase from $15.05 million in the prior year. For the nine-month period, revenue totaled $51.65 million, up 25% from $41.46 million in 2023. This growth was driven primarily by increased sales of the OviTex product line, which generated $12.46 million in the third quarter, compared to $10.16 million in the same period last year.

The company reported a net loss of $10.37 million for the third quarter, a slight improvement from a loss of $10.96 million in 2023. For the nine months ended September 30, 2024, the net loss was $28.63 million, down from $33.77 million in the previous year. The reduction in losses was attributed to a $7.6 million gain from the sale of the NIVIS product line, which was sold to MiMedx Group, Inc. for an initial payment of $5 million, with potential future payments based on sales performance.

Despite the revenue growth, TELA Bio faced challenges, including increased costs of revenue, which rose to $6 million in the third quarter, up 31% from $4.6 million in 2023. The gross margin slightly decreased to 68% from 69% year-over-year, primarily due to higher charges for excess and obsolete inventory. Sales and marketing expenses also increased by 14% to $16.5 million, driven by higher compensation and severance costs from a reorganization.

As of September 30, 2024, TELA Bio reported an accumulated deficit of $349.5 million and total stockholders' equity of $(6.27 million). The company had cash and cash equivalents of $17.57 million, down from $58.20 million at the end of the same period in 2023. The decrease in cash was attributed to a net cash outflow of $29.43 million during the nine months, compared to an inflow of $16.18 million in the prior year.

In terms of strategic developments, TELA Bio implemented cost-cutting measures in the third quarter, which are expected to reduce operating expenses in future periods. The company also entered into a 2023 Equity Distribution Agreement to sell up to $50 million in common stock, although no sales were made under this agreement during the reporting period. The company continues to focus on expanding its product offerings and market presence, particularly in the soft-tissue reconstruction sector.