TELA Bio Inc (TELA) 2024 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen. And welcome to the TELA Bio first-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, call is being recorded. I would now like to turn the conference over to Louisa Smith from the Gilmartin Group.

女士們、先生們，午安。歡迎參加 TELA Bio 2024 年第一季財報電話會議。（操作員說明）謹此提醒，通話正在錄音。我現在想將會議轉交給吉爾馬丁集團的路易莎史密斯。

Great. Thank you, Michelle, and good afternoon, everyone. Earlier today, TELA Bio released financial results for the first quarter 2024. A copy of the press release is available on the company's website.

偉大的。謝謝米歇爾，大家下午好。今天早些時候，TELA Bio 發布了 2024 年第一季財務業績。該新聞稿的副本可在該公司網站上取得。

Joining me on today's call are Tony Koblish, President and Chief Executive Officer; and Roberto Cuca, Chief Operating Officer and Chief Financial Officer.

與我一起參加今天電話會議的還有總裁兼執行長 Tony Koblish；營運長兼財務長羅伯托‧庫卡 (Roberto Cuca)。

Before we begin, I'd like to remind you that during this conference call, the company may 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-Q, which identify the specific factors that may cause actual results or events to differ materially from those described in these forward-looking statement. These factors may include without limitation, statements regarding product development and pipeline opportunities, products potential, the impact of various macroeconomic conditions identified in our filings, the regulatory environment, sales and marketing strategies, capital resources, or operating performance.

在我們開始之前，我想提醒您，在本次電話會議期間，公司可能會對未來事件做出預測和前瞻性陳述。我們鼓勵您查看公司過去和未來向SEC 提交的文件，包括但不限於公司10-K 表中的年度報告和10-Q 表中的季度報告，其中確定了可能導致實際結果或事件發生變化的具體因素。這些因素可能包括但不限於有關產品開發和管道機會、產品潛力、我們的文件中確定的各種宏觀經濟條件的影響、監管環境、銷售和行銷策略、資本資源或經營績效的陳述。

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

這樣，我現在將把電話轉給托尼。

Thank you, Lisa, and good afternoon, everyone. Thank you for joining us for TELA Bio's first-quarter 2024 earnings call. And this call, I'd like to highlight some critical milestones we hit in the quarter as well as update you on our continued strategic progress and ongoing growth opportunities.

謝謝麗莎，大家下午好。感謝您參加 TELA Bio 2024 年第一季財報電話會議。在這次電話會議中，我想強調我們在本季達到的一些關鍵里程碑，並向您介紹我們持續的策略進展和持續的成長機會。

We started the year off strong. First-quarter revenue was $16.6 million, representing 39% growth over the same period in 2023 and our 13th consecutive quarter with growth of 35% or greater. We are capitalizing on the considerable momentum we generated in the fourth quarter and our business is firing on all cylinders. As you will hear today, we are benefiting from the recent enhancements to our commercial team in addition to some key product launches that will enable us to drive significant growth through the remainder of the year.

我們今年開局強勁。第一季營收為 1,660 萬美元，較 2023 年同期成長 39%，也是我們連續第 13 季成長 35% 或更高。我們正在利用第四季產生的巨大動力，我們的業務正在全速運轉。正如您今天將聽到的那樣，除了一些關鍵產品的發布之外，我們還受益於我們商業團隊最近的增強，這將使我們能夠在今年剩餘時間內推動顯著成長。

In April, we launched OviTex IHR, a trocar-compatible, next-generation soft tissue repair platform designed for inguinal hernias, specifically for the use in laparoscopic and robotic-assisted procedures.Just like our other OviTex devices, OviTex IHR utilizes layers of ovine or sheep rumin, embroidered with just enough polymer suture to provide additional strength and performance. All OviTex devices are designed to leverage a patient's natural healing response, facilitate tissue remodeling, optimize strength, and minimize the foreign body footprint of synthetic polymer.

今年4 月，我們推出了OviTex IHR，這是一個兼容套管針的下一代軟組織修復平台，專為腹股溝疝氣設計，專門用於腹腔鏡和機器人輔助手術。 OviTex IHR 利用羊層或綿羊反芻動物，用足夠的聚合物縫線刺繡以提供額外的強度和性能。所有 OviTex 設備均旨在利用患者的自然癒合反應、促進組織重塑、優化強度並最大限度地減少合成聚合物的異物足跡。

IHR is available in three configurations and will complement our existing product portfolio and allow further penetration into the inguinal market, which has traditionally been dominated by permanent synthetic meshes. The initial response has been phenomenal with debuts of the product at two recent industry events, the Intuitive Surgical Connect Meeting and at the Society of American Gastrointestinal and Endoscopic Surgeons, more commonly known as SAGES.

IHR 提供三種配置，將補充我們現有的產品組合，並進一步滲透到傳統上由永久性合成網片主導的腹股溝市場。該產品在最近的兩個行業活動（直觀外科連接會議）和美國胃腸和內視鏡外科醫生協會（通常稱為 SAGES）上首次亮相，引起了熱烈的反響。

There are now 35 published or presented works demonstrating OviTex's clinical efficacy in hernia repair. This includes this study led by Dr. Paul Szotek, exhibiting a low recurrence rate of 1.2% across 259 patients who underwent robotic inguinal hernia tap repair using the rebar technique with an average follow-up of 1.5 years. Our medical training efforts are as robust as ever.

目前已有 35 篇已發表或發表的作品證明了 OviTex 在疝氣修補方面的臨床功效。其中包括由 Paul Szotek 博士領導的研究，該研究對 259 名使用 rebar 技術接受機器人腹股溝疝氣修補術的患者顯示出 1.2% 的低復發率，平均隨訪時間為 1.5 年。我們的醫療培訓工作一如既往地強勁。

In Q1, we educated more than 250 surgeons globally through TELA Bio labs and other peer-to-peer training with an emphasis on the use of OviTex in minimally invasive robotic cases. This includes comprehensive surgeon VIP visits to our Melbourne headquarters, experiences at several of our 14 case observation sites, cadaver labs in the US and Europe, and various other educational sessions.

第一季度，我們透過 TELA Bio 實驗室和其他同儕培訓對全球 250 多名外科醫生進行了培訓，重點是 OviTex 在微創機器人病例中的使用。這包括對我們墨爾本總部進行全面的外科醫生 VIP 訪問、在我們 14 個病例觀察點、美國和歐洲的屍體實驗室中的幾個地點進行體驗，以及各種其他教育課程。

We also have a very busy schedule at industry and society meetings. Through March of this year, in the US, we engage with surgeons at 25 industry or society meetings, focusing on hernia, plastic and reconstructive surgery, abdominal trauma, and GPO purchasing organizations. In April, we had tremendous success at the Annual Intuitive Connect Meeting, where they launched their da Vinci 5 platform and we were only one of three invited companies who provide mesh for hernia surgery. Our invitation to this meeting was a pivotal milestone in further demonstrating our credibility and growing leadership in the robotic space.

我們的行業和社會會議日程也非常繁忙。截至今年 3 月，我們在美國與外科醫生一起參加了 25 場行業或社會會議，重點是疝氣、整形和重建手術、腹部創傷和 GPO 採購組織。4 月份，我們在年度 Intuitive Connect 會議上取得了巨大成功，他們在會上推出了 da Vinci 5 平台，我們是受邀為疝氣手術提供網片的三家公司之一。我們邀請參加這次會議是一個關鍵的里程碑，進一步展示了我們在機器人領域的可信度和日益增長的領導地位。

At the meeting, we had exposure to nearly 1800 surgeons and saw tremendous interest in both LIQUIFIX and OviTex IHR. Feedback from surgeon follow-up indicate surgeons who attended were impressed by TELA's prominent presence at the meeting. I am also very pleased to announce that in the first half of May, we reached a major implantation milestones. Over 50,000 units of OviTex have been used in hernia and complex ab wall procedures with 10,000 OviTex PRS used in plastic and reconstructive surgery procedures. PRS now accounts for more than a third of TELA sales and its revenue grew 54% over the prior year. Of note, the long-term resorbable configuration of PRS, which launched in mid-2023, has grown significantly and now makes up 55% of the PRS portfolio.

在會議上，我們接觸了近 1800 名外科醫生，並看到了對 LIQUIFIX 和 OviTex IHR 的極大興趣。外科醫生追蹤的回饋表明，參加會議的外科醫生對 TELA 在會議上的突出表現印象深刻。我還非常高興地宣布，五月上半月，我們達到了一個重要的植入里程碑。超過 50,000 台 OviTex 已用於疝氣和複雜的腹壁手術，其中 10,000 台 OviTex PRS 已用於整形和重建手術。PRS 目前佔 TELA 銷售額的三分之一以上，其營收比上一年增長 54%。值得注意的是，2023 年中期推出的 PRS 長期可吸收配置已顯著成長，目前佔 PRS 產品組合的 55%。

Further highlighting TELA's commitment to PRS and the opportunity it represents, on April 1, we welcomed Dr. Howard . Langstein, the former Chief of Plastic Reconstructive Surgery at the University of Rochester Medical Center as TELA's Vice President of Medical Affairs and Surgeon Strategy. He joined TELA as a member of a strategic team driving awareness of the clinical benefits of TELA's products with surgeons and hospital administrators in the plastic and reconstructive space.

4 月 1 日，我們迎來了霍華德博士，進一步凸顯了影視處對 PRS 的承諾及其所代表的機會。Langstein 曾任羅徹斯特大學醫學中心整形重建外科主任，並擔任 TELA 醫療事務和外科醫生策略副總裁。他作為策略團隊成員加入 TELA，旨在提高整形和重建領域外科醫生和醫院管理人員對 TELA 產品臨床效益的認識。

On last quarter's call, we were coming to you from our national sales meeting, where we launched a LIQUIFIX suite of products in the US, including both the LIQUIFIX FIX8 laparoscopic and LIQUIFIX precision open hernia mesh fixation devices. These products allow for precise mesh fixation while eliminating the risk of mechanical tissue damage from alternative fixation methods such as cap, sutures, or staples. They are the only FDA-approved PMA liquid adhesive devices for use in fixing polypropylene and polyester mesh in inguinal and femoral hernia procedures and for approximating the peritoneum.

在上個季度的電話會議上，我們參加了全國銷售會議，會上我們在美國推出了 LIQUIFIX 產品套件，包括 LIQUIFIX FIX8 腹腔鏡和 LIQUIFIX 精密開放疝氣固定裝置。這些產品可實現精確的網狀固定，同時消除替代固定方法（例如帽子、縫線或釘書釘）造成機械組織損傷的風險。它們是唯一經 FDA 批准的 PMA 液體黏合裝置，用於在腹股溝和股疝氣手術中固定聚丙烯和聚酯網以及接近腹膜。

The salesforce received hands-on certification for the products at the national sales meeting, and we have seen tremendous interest at industry meetings since then. To date, over 87 surgeons have been trained on LIQUIFIX and the product represents yet another addition to our complementary suite of products that elevate TELA to top of mind within the surgeon's choice of offerings. We are driving awareness and expanding market share with the reach of our portfolio and are committed to offering premium products in the surgeon preference driven markets of hernia repair and plastic reconstructive surgery.

銷售人員在全國銷售會議上獲得了產品的實踐認證，從那時起我們就在行業會議上看到了極大的興趣。迄今為止，已有超過 87 名外科醫生接受了 LIQUIFIX 培訓，該產品是我們補充產品套件的另一個補充，將 TELA 提升為外科醫生選擇產品時的首要考慮因素。我們正在透過我們的產品組合提高知名度並擴大市場份額，並致力於在外科醫生偏好驅動的疝氣修復和整形重建手術市場提供優質產品。

I'll now turn the call over to Roberto for an overview of our financials.

我現在將把電話轉給羅伯托，以了解我們的財務狀況。

Thanks, Tony. As Tony mentioned earlier, revenue for the first quarter of 2024 grew 39% year over year to $16.6 million, with OviTex growing 31% and OviTex PRS growing 54% in the period. These increases were primarily due to an increase in unit sales of our products and the continued expansion of our commercial organization, which resulted in increased penetration of our existing customer accounts as well as the addition of new customers.

謝謝，托尼。正如托尼之前提到的，2024 年第一季的營收年增 39% 至 1,660 萬美元，其中 OviTex 成長 31%，OviTex PRS 成長 54%。這些成長主要是由於我們產品單位銷售的增加以及我們商業組織的持續擴張，從而導致我們現有客戶帳戶的滲透率提高以及新客戶的增加。

Gross margin was 68% for the first quarter compared to 66% in the prior year period. The increase was primarily due to lower charges for excess and obsolete inventory as a percentage of revenue as a result of improvements in our inventory management during the quarter.

第一季毛利率為 68%，去年同期毛利率為 66%。這一成長主要是由於本季我們的庫存管理得到改善，導致過剩和過時庫存費用佔收入的百分比降低。

Sales and marketing expense was $17.5 million in the first quarter of 2024 compared to $13.5 million in the same period in 2023. This increase was mainly due to higher compensation costs as a result of the expansion of our commercial organization, higher travel and consulting expenses, and additional employee related costs due to increased headcount.

2024 年第一季的銷售和行銷費用為 1,750 萬美元，而 2023 年同期為 1,350 萬美元。這一增長主要是由於我們的商業組織擴張導致薪酬成本增加、差旅和諮詢費用增加以及員工人數增加導致的額外員工相關成本。

General and administrative expense was $3.8 million compared to $3.6 million in the same period in 2023. This was driven by higher employee related costs as a result of headcount increases offset by decreases in bad debt expense and insurance expense.

一般及管理費用為 380 萬美元，而 2023 年同期為 360 萬美元。這是由於員工人數的增加抵消了壞帳費用和保險費用的減少，導致員工相關成本增加。

R&D expense was $2.4 million in the first quarter compared to $2.1 million in the prior year, primarily due to higher compensation due to an increase in employees as well as higher costs related to pre IDE activities for OviTex PRS and outside development of new devices.

第一季的研發費用為 240 萬美元，而去年同期為 210 萬美元，這主要是由於員工增加導致的薪酬增加以及與 OviTex PRS 的預 IDE 活動和新設備的外部開發相關的成本增加。

Loss from operations was $4.8 million in the first quarter of 2024 compared to $11.3 million in the prior year period. The decrease was driven by the recognition of a one-time gain of $7.6 million from the sale of certain assets related to the NIVIS Fibrillar Collagen Pack Device to MiMedx in March 2024. This recognition is subject to adjustment in future periods as we assess our estimate of variable consideration from the transaction.

2024 年第一季營運虧損為 480 萬美元，而去年同期為 1,130 萬美元。這一下降是由於確認 2024 年 3 月向 MiMedx 出售與 NIVIS Fibrillar Collagen Pack 設備相關的某些資產獲得了 760 萬美元的一次性收益。當我們評估交易的可變對價的估計時，這種確認可能會在未來期間進行調整。

Net loss was $5.7 million in the first quarter of 2024 compared to $12 million in the same period in 2023. We ended the first quarter with $37.1 million in cash and cash equivalents.

2024 年第一季的淨虧損為 570 萬美元，而 2023 年同期淨虧損為 1,200 萬美元。第一季結束時，我們擁有 3,710 萬美元的現金和現金等價物。

Turning to the outlook for 2024, we now project revenue for the full year to be in the range of $74.5 million to $76.5 million, representing growth of 27% to 31% from the prior year. Following the strong first quarter and continued positive dynamics in the market, we feel comfortable in increasing our guidance range as our products continue to win market share. As we have said in the past, we expect operating loss and net loss to be less in 2024 than in 2023 even excluding the contribution from the divestiture of NIVIS. Moreover, we expect operating expenses to be reasonably steady over the course of the year, notwithstanding some typical seasonality and expense. And since we expect revenue to grow sequentially, both operating loss and net loss should decline over the course of the year, again, excluding the contribution from the divestiture of NIVIS. We continue to expect that our cash and cash equivalents will be sufficient to fund us to profitability.

展望 2024 年，我們目前預計全年營收在 7,450 萬美元至 7,650 萬美元之間，較上年增長 27% 至 31%。繼第一季的強勁表現和市場持續的積極動態之後，隨著我們的產品繼續贏得市場份額，我們對擴大指導範圍感到滿意。正如我們過去所說，即使不包括剝離 NIVIS 的貢獻，我們預計 2024 年的營運虧損和淨虧損將低於 2023 年。此外，儘管存在一些典型的季節性和費用，我們預計全年營運支出將相當穩定。由於我們預期收入將持續成長，因此經營虧損和淨虧損在一年中都應再次下降，不包括剝離 NIVIS 的貢獻。我們仍然預計我們的現金和現金等價物將足以為我們盈利提供資金。

With that, I'll hand the call back to Tony for closing remarks.

接下來，我會將電話轉回給東尼，讓他作結語。

Thanks. Thanks, Roberto, and thank you everyone for tuning in this afternoon. I am excited by the progress the team has made in the first quarter, and we are just getting started. We have reached the point where we are able to compete with even the largest competitors in our space. We have a well-trained, experienced direct sales force, and highly competitive products backed with exceptional data. Our data on the performance of our products is outstanding and we continue to collect more.

謝謝。謝謝羅伯托，也謝謝大家今天下午的收聽。我對團隊在第一季的進展感到興奮，而我們才剛開始。我們已經達到了甚至能夠與該領域最大的競爭對手競爭的程度。我們擁有一支訓練有素、經驗豐富的直銷隊伍，以及以卓越數據為後盾的極具競爭力的產品。我們的產品性能數據非常出色，我們將繼續收集更多數據。

TELA is in a strong financial position, and we fully expect to take take share for years to come. I am excited by the greenfield opportunity with IHR and the potential for LIQUIFIX to open doors that were previously closed to us.

TELA 的財務狀況強勁，我們完全期望在未來幾年能夠佔據市場份額。我對 IHR 的綠地機會以及 LIQUIFIX 開啟之前對我們關閉的大門的潛力感到興奮。

So in closing, I'd like to thank our team for their continued commitment to our mission and their relentless focus on driving growth. We are on the precipice of great things here at TELA, and I'm eager to deliver on a year of strong top-line growth and solid operational execution.

最後，我要感謝我們的團隊對我們使命的持續承諾以及對推動成長的不懈關注。TELA 正處於偉大事業的邊緣，我渴望在這一年實現強勁的營收成長和穩健的營運執行。

With that, I'll now ask Michelle to open the line for your questions.

現在，我將請米歇爾開通您的提問專線。

(Operator Instructions) Frank Takkinen, Lake Street Capital.

（操作員說明）Frank Takkinen，Lake Street Capital。

Thanks for taking the questions. Congrats on the solid start to the year. I was hoping to start with asking about sequential expectations. I know in previous calls in years, you've talked about Q2 being a seasonally strong quarter. I think there's some particular excitement around that going into it with a fully staffed organization, IHR, couple of other factors. How should we be thinking about all these things and what it can translate into a sequential growth standpoint?

感謝您提出問題。祝賀今年取得了良好的開端。我希望先詢問順序期望。我知道在幾年前的電話會議中，您曾談到第二季是季節性強勁的季度。我認為，與一個配備齊全的組織、《國際衛生條例》以及其他幾個因素一起參與其中，會帶來一些特別令人興奮的事情。我們應該如何思考所有這些事情以及它可以轉化為連續成長的觀點？

So historically, we have had sequential growth from quarter to quarter. And as Tony has pointed out, that tends to be a fairly healthy step up from the first to the second quarters. If you were to look at the historical data and adjust for the hiccup we had in the third quarter of last year, so maybe look at 2022, a progression like that in revenue is something that we would expect. And as I mentioned in the prepared remarks, we do expect OpEx to be fairly steady over the course of the year such that that step up in revenue will drop down to the bottom line in the form of improved operating income.

從歷史上看，我們每個季度都有連續成長。正如托尼所指出的，從第一季到第二季度，這往往是一個相當健康的進步。如果你查看歷史數據並針對去年第三季的問題進行調整，那麼也許看看 2022 年，收入的成長是我們所期望的。正如我在準備好的發言中提到的那樣，我們確實預計營運支出在這一年中將相當穩定，這樣收入的成長將以營運收入提高的形式回落至底線。

Okay, perfect. And then maybe for my second one, I know there's been some development related to the synthetic mesh lawsuit out there. It seems like there's May 24, decision date. I'm not going to ask you to speculate on the outcome of that, but maybe help us think through how some of those potential outcomes could impact your business?

好的，完美。然後也許對於我的第二個，我知道已經有一些與合成網訴訟相關的進展。看來5月24日是決定日期。我不會要求您推測結果，但也許可以幫助我們思考其中一些潛在結果將如何影響您的業務？

Well, that's the greatest hidden secret, I think, out there. But yes, there was a notice put out by one of the law firms that there has been a date set for some mediation or arbitration, something like that. So we're obviously keeping a very close eye on it. We have a communication plan at the ready, in case this breaks one way or the other. I think for us to really understand what it means, we'll have to understand what it looks like in the end, right. And then we'll be able to sort of game plan for some of the eventual knock-on effects that come after that. But our position is clear and consistent from the beginning, right? We are a natural repair product. We founded this company with the mission of getting permanent plastic out of people's bellies for hernia repair as much as possible -- as much as it makes sense to. We focused on products that are natural in their remodeling process are soft and do minimal damage even if they have to come out at some point. Those are the basic tenants that we built the company around.

嗯，我認為這是最大的隱藏秘密。但是，是的，其中一家律師事務所發布了一份通知，稱已經確定了進行某些調解或仲裁之類的日期。所以我們顯然正在密切關注它。我們已準備好一份溝通計劃，以防萬一發生這種情況。我認為為了讓我們真正理解它的含義，我們必須理解它最終是什麼樣子，對吧。然後我們就能夠為之後出現的一些最終連鎖反應制定遊戲計劃。但我們的立場從一開始就很明確、一貫，對嗎？我們是天然修復產品。我們創立這家公司的使命是盡可能從人們的腹部取出永久性塑膠用於疝氣修復——盡可能有意義。我們專注於在重塑過程中自然的產品，這些產品柔軟且即使在某個時候必須出來，傷害也最小。這些是我們建立公司的基本租戶。

And by and large, we've delivered on that. We have superb clinical data, our recurrence rate in the simple inguinal ventricles, et cetera. Where there has been a problem that the litigation is pointing out, our recurrence rate is in the very, very low-single digits. And so I think we are delivering on that promise. I think putting polypropylene plastic into people's bellies is not going to last forever. It's going to come to an end at some point, and there's very few players and products that are as well positioned as we are to be an excellent alternative.

總的來說，我們已經實現了這個目標。我們擁有極佳的臨床數據、單純腹股溝腦室的復發率等等。在訴訟指出有問題的地方，我們的復發率非常非常低。所以我認為我們正在兌現這項承諾。我認為將聚丙烯塑膠放入人們的肚子裡不會永遠持續下去。它會在某個時候結束，而且很少有玩家和產品能夠像我們一樣成為一個優秀的替代品。

The addition of the IHR product and LIQUIFIX gives us a broad product portfolio now that can do any of the procedures done with any polypropylene product in any setting with any technique, robots, laparoscopic open, you name it. So we look forward to being able to help surgeons help patients continue in the future and keep going on our mission, which has been the original mission of the company.

IHR 產品和 LIQUIFIX 的加入為我們提供了廣泛的產品組合，現在可以使用任何聚丙烯產品在任何環境下使用任何技術、機器人、腹腔鏡開放式等進行任何手術。因此，我們期待未來能夠繼續幫助外科醫生幫助患者，並繼續實現我們的使命，這也是公司最初的使命。

And I'll just add a little bit of detail, which is that this is a notice in the Federal MDL multidistrict litigation focused in Ohio. It wasn't the Rhode Island cases, which are state cases. It was a notice that said that the next case in that MDL litigation was postponed and the parties were sent in mediation with a deadline later in May. The deadline presumably can be extended. And one would think that Bard Becton Dickinson, the defendant, would want to try to settle both the MDL cases and the Rhode Island State cases at the same time. That can be tricky to sync up. So it is pretty unpredictable, but the notice just did get us to finalize our plans in response to any potential settlement, which was driven in large part by what Bard Becton Dickinson does post the settlement.

我只想補充一點細節，這是針對俄亥俄州聯邦 MDL 多區訴訟的通知。這不是羅德島州的案件，這是州案。這是一份通知，稱MDL訴訟的下一個案件被推遲，雙方被送去調解，截止日期為5月晚些時候。截止日期大概可以延長。人們可能會認為，被告巴德貝克頓迪金森 (Bard Becton Dickinson) 會嘗試同時解決 MDL 案件和羅德島州案件。同步可能很棘手。因此，這是相當不可預測的，但該通知確實讓我們最終確定了我們的計劃，以應對任何潛在的和解，這在很大程度上是由巴德貝克頓迪金森發布和解協議所推動的。

Caitlin Cronin, Canaccord Genuity. .

凱特琳·克羅寧，Canaccord Genuity。。

Thanks for taking my questions. Just to start off, as my first question is on productivity. How is that trending including your initiatives for balance selling and how you feel about the bolus of reps that you brought on at the end of 2023?

感謝您回答我的問題。首先，我的第一個問題是關於生產力。這種趨勢如何，包括您的平衡銷售舉措以及您對 2023 年底增加的銷售代表有何感受？

Yes. I mean, we feel very good about the bolus of new reps, and we've enhanced our training programs significantly, and we're going to continue to enhance that training program almost to the point of perpetual training so that we have the best trained team in the marketplace. We feel pretty good about the balanced selling. There's already been an uptick in PRS as it relates to a percentage of sales. I think we were running about 30% of top line with PRS. And I believe now in Q1, we were about 35%, 36%. So I think that's the beginning of what we're starting to see in terms of a balanced selling approach. So we're still finding our legs with it. But overall, I think we're off to a good start.

是的。我的意思是，我們對新代表的補充感覺非常好，並且我們顯著增強了我們的培訓計劃，並且我們將繼續增強該培訓計劃，幾乎達到永久培訓的程度，以便我們擁有最好的訓練有素的人市場中的團隊。我們對平衡銷售感覺很好。PRS 已經有所上升，因為它與銷售額的百分比相關。我認為我們大約 30% 的收入來自 PRS。我相信現在在第一季度，我們的比例約為 35%、36%。所以我認為這是我們開始看到的平衡銷售方法的開始。所以我們仍在尋找我們的腿。但總的來說，我認為我們有了一個好的開始。

And we started the year with a front-loaded sales force, right, so last year and the year before, we were hiring, which made forecasting the exact number of reps at any point in time, along with productivity a little more difficult. Here, we're front-loaded. We've got the full team in place for the full year. So it should allow us to focus on things like training and execution, which will result in more confidence and success in the productivity.

今年伊始，我們就配備了一支前期銷售隊伍，對吧，所以去年和前年，我們都在招聘，這使得預測任何時間點的銷售代表的確切數量以及生產力變得更加困難。在這裡，我們是前置的。我們已經組建了全年的完整團隊。因此，它應該讓我們能夠專注於培訓和執行等事情，這將帶來更多的信心和生產力的成功。

And one of the metrics we talk about is the time it takes for new reps to get to breakeven. And we have seen with the latest cohorts of new reps for which we have these data that it is still running at a bit under six months for new reps on average to get to paying for their own variable costs.

我們討論的指標之一是新代表達到收支平衡所需的時間。我們從最新一批新銷售代表的數據中看到，新銷售代表平均需要不到六個月的時間才能支付自己的變動成本。

Awesome. And then how do you feel about cash burn this quarter and how you expect that to trend throughout the year?

驚人的。那麼您對本季的現金消耗有何看法以及您預計全年的趨勢如何？

Sure. So as I described from a P&L perspective, we do expect OpEx to be reasonably steady over the course of the year and revenue to grow on top of that, such that, again, P&L metrics of profitability will get -- will improve steadily over the course of the yea ignoring the contribution from NIVIS, which makes better for the full year. There is some seasonality to our cash flows since we tend to buy additional inventory in the first quarter and we pay out bonuses towards the fourth quarter. So if you overlay that sort of natural seasonality on top of that P&L progression, we feel comfortable with cash burn and the way that cash is going to progress over the course of the year.

當然。因此，正如我從損益角度描述的那樣，我們確實預計營運支出在這一年中將相當穩定，收入將在此基礎上增長，這樣，盈利能力的損益指標將在今年穩步提高。 ，這對全年來說是更好的。我們的現金流存在一定的季節性，因為我們傾向於在第一季購買額外的庫存，並在第四季度支付獎金。因此，如果您將這種自然季節性疊加在損益進展之上，我們對現金消耗以及現金在一年中的進展方式感到滿意。

Michael Sarcone, Jefferies.

邁克爾·薩爾科內，杰弗里斯。

Hey, good afternoon. Thanks for taking the questions. Just to start, if you could talk about how you're thinking about IHR contribution for this year and maybe what you've got baked into your '24 guidance?

嘿，下午好。感謝您提出問題。首先，您能否談談您對今年《國際衛生條例》貢獻的看法，以及您在「24」指南中融入了什麼內容？

So there are two dimensions to the IHR contribution for the year. So the first is -- just as a reminder, we're already a participant in inguinal hernia repairs. We do have products that are currently used, even in robotic going down trocars. Roughly, about 16% of our revenue is -- previously was in inguinal hernia repairs. So we expect that IHR will have fairly quick pickup uptake amongst the surgeons who are already doing in inguinal hernia repairs using our products.

因此，今年《國際衛生條例》的貢獻有兩個面向。首先是－提醒一下，我們已經是腹股溝疝氣修補術的參與者。我們確實有目前正在使用的產品，甚至是機器人下行套管針。粗略地說，我們大約 16% 的收入以前用於腹股溝疝氣修復。因此，我們預計 IHR 將在已經使用我們的產品進行腹股溝疝氣修復的外科醫生中得到相當快速的接受。

In addition, there's a lot of greenfield opportunity, as Tony mentioned, to introduce the product to physicians who are maybe using synthetic meshes and are familiar with our products, but wanted something a little bit more targeted for inguinal repairs. And so we expect to see some pickup from that as well. So we haven't quantified that exactly and what the breakout of that in the $74.5 million to $76.5 million for the year is, but we do expect it to be a noticeable contribution to that amount.

此外，正如托尼所提到的，還有很多新的機會向可能使用合成網片並熟悉我們的產品但想要更有針對性的腹股溝修復的醫生介紹該產品。因此，我們預計也會看到一些回升。因此，我們還沒有準確量化這一點，以及今年 7,450 萬美元至 7,650 萬美元的突破是什麼，但我們確實預計它將對該金額做出顯著貢獻。

I'll add to that, Michael. We're off to a good start in just a couple of weeks. We've got well over 50 implantations, which is great. And we're thinking about this, as Roberto said, but really forward and backwards integration, right? So this will allow us to get to new customers, which will elevate the rest of our product portfolio in ventral and complex ventral.

我要補充一點，麥可。幾週後我們就有了一個好的開始。我們已經進行了超過 50 次植入，這非常棒。正如羅伯託所說，我們正在考慮這個問題，但實際上是向前和向後整合，對吧？因此，這將使我們能夠獲得新客戶，從而提升我們腹側和複雜腹側產品組合的其餘部分。

But we started off in complex ventral and then sit more simple ventral,and a lot of those surgeons don't use us for inguinal. So I think of reversing that, our customers that are solid on the ventral side and the complex side, I think, are going to take a good hard look at us and adopt our products on the inguinal side. So it gives us that complete product portfolio. I like the fact that it gives us mindshare, routine usage capability, shelf space. And with the addition of LIQUIFIX, it gives us complete parity with our largest competitors, right? We have a very novel atraumatic fixation system that we think offers significant advantages compared to [tankers]. And now we've got a full range to go after the whole suite of procedures.

但我們從複雜的腹側開始，然後坐在更簡單的腹側，很多外科醫生不使用我們的腹股溝。因此，我考慮扭轉這一局面，我認為，我們的腹側和複雜側的客戶將認真審視我們，並在腹股溝側採用我們的產品。因此它為我們提供了完整的產品組合。我喜歡這樣一個事實：它為我們提供了思想共享、日常使用能力、貨架空間。隨著 LIQUIFIX 的加入，我們可以與最大的競爭對手完全平起平坐，對嗎？我們有一個非常新穎的非侵入性固定係統，我們認為與傳統的固定係統相比，它具有顯著的優勢[油輪]。現在我們已經完成了整套程序。

Got it. That's really helpful. Thank you. And just a second one. Could you maybe just give us an update on your GPO contracts and how you're ramping there?

知道了。這真的很有幫助。謝謝。還有第二個。您能否向我們介紹一下您的 GPO 合約的最新情況以及您在這方面的進展？

Yeah. So it remains of the big three contracts that we have in place, you know, our revenue contribution from all the various GPOs, even the smaller ones. And the big three is, you know, approximately 60%. We think it's going to grow up to 70% in the near future. We're certainly on track for that. We're continually getting access via IDN supply chain and by smaller GPOs. And we are active in terms of looking at getting the next large GPOs. We're very confident that we're going to get them all.

是的。因此，我們所簽訂的三大合約仍然是我們來自所有不同 GPO（甚至是較小的 GPO）的收入貢獻。你知道，三巨頭大約佔 60%。我們認為在不久的將來它會成長到70%。我們肯定正在朝著這個目標邁進。我們不斷透過 IDN 供應鏈和較小的 GPO 獲得存取權限。我們正在積極尋求下一個大型 GPO。我們非常有信心我們會得到所有這些。

The large GPOs, I think, their bid requests that aren't due until much later this year. So it might be more of a next year event. But rest assured, we're very confident in our ability to continue to sell within the IDN framework, which represents over 40% of our sales today and has been very consistent.

我認為，大型 GPO 的投標請求要到今年稍後才會到期。所以這可能更像是明年的活動。但請放心，我們對繼續在 IDN 框架內進行銷售的能力非常有信心，該框架占我們今天銷售額的 40% 以上，並且一直非常穩定。

So we've also had great success in getting IHR on our existing contracts as a line extension and we're actually starting to see some success with LIQUIFIX as a new technology. It's going to take a little more time to get contracts for LIQUIFIX. But the new technology designation, which we seem to be getting in certain places, is going to help us speed that up as well. So everything on the GPO front is looking very positive.

因此，我們在將 IHR 作為產品線延伸納入現有合約方面也取得了巨大成功，而且我們實際上開始看到 LIQUIFIX 作為一項新技術取得了一些成功。獲得 LIQUIFIX 的合約還需要一點時間。但我們似乎在某些地方獲得的新技術稱號也將幫助我們加快這一速度。因此，GPO 方面的一切看起來都非常積極。

Matthew O'Brien, Piper Sandler.

馬修·奧布萊恩，派珀·桑德勒。

Thanks for taking the questions. Maybe for starters, as you know, the Q1 result was quite good. Guidance for the year, as you know, is well below and just delivered in Q1. And I know there's a tough dynamic to think about. But so with all these different growth metrics or growth drivers that we're seeing out there, I guess, why not raise the guidance range a little bit even higher versus what you did and then kind of what you've been doing over the last couple of years?

感謝您提出問題。也許對於初學者來說，如你所知，第一季的結果相當不錯。如您所知，今年的指引遠低於第一季剛發布的指引。我知道有一個艱難的動態需要考慮。但是，鑑於我們看到的所有這些不同的成長指標或成長驅動因素，我想，為什麼不將指導範圍提高一點，比您所做的以及您過去所做的事情更高一些許多年？

Sure. Thanks for the question, Matt. We approached our guidance this year is a commitment to our investors. So we are going to hit these numbers and we put the guidance range where we felt very confident that that was doable, given what we know. Understanding that, as we learned more over the course of the year quarter by quarter and if we felt more comfortable, we would increase that to reflect that. So we did -- do well compared to consensus this quarter, we raised the range by a bit more than that. Part of the dynamic is what fractions we can use with certain numbers, but we feel comfortable about the slightly raised range. And as we get more data under our belts, we will reconsider the range going forward.

當然。謝謝你的提問，馬特。我們今年的指導方針是對投資者的承諾。因此，我們將達到這些數字，並且根據我們所知道的情況，我們將指導範圍設定為我們非常有信心這是可行的。了解這一點，隨著我們在一年中每個季度學到更多，如果我們感覺更舒服，我們會增加這一點以反映這一點。因此，與本季度的共識相比，我們做得很好，我們將範圍提高了一點。動態的一部分是我們可以對某些數字使用哪些分數，但我們對稍微提高的範圍感到滿意。隨著我們獲得更多數據，我們將重新考慮未來的範圍。

Okay, understood. And then, Tony, you've been talking about really strong training for quite a while. And I'm just wondering when we're going to start to see a little bit more of this inflection point in terms of utilization? I mean, I know you're growing really well, but is the massive market that you're going after, what do you think is needed? Got all the data. You've got great products indication? What's needed to really see this inflect from here?

好的，明白了。然後，東尼，你已經談論真正高強度的訓練有一段時間了。我只是想知道我們什麼時候才能開始看到更多的使用率轉折點？我的意思是，我知道你們發展得非常好，但是你們正在追求的龐大市場，你們認為需要什麼？得到了所有的數據。您有很棒的產品說明嗎？從這裡真正看到這種改變需要什麼？

Well, I call it Class I parity, right? So if you look at our history, right, we had no capital until the end of 2019, as you know. So commercialization really started in earnest in 2020, and we did well for two or three years, but we were hampered in building out our infrastructure due to the COVID start. But we grew crazy good even through that. But to be successful in this market, parity in terms of sales force size roughly, parity in GPO access roughly, parity in terms of product portfolio capability across all types of procedures roughly, right?

嗯，我稱之為 I 級奇偶校驗，對吧？所以，如果你看看我們的歷史，你知道，直到 2019 年底我們都沒有資本。所以商業化是在2020年真正開始的，我們有兩三年做得很好，但由於新冠疫情的開始，我們的基礎建設受到了阻礙。但即便如此，我們還是變得瘋狂了。但要在這個市場取得成功，銷售人員規模、GPO 存取權、所有類型流程的產品組合能力都需要大致對等，對吧？

I mean, we haven't had all of that in place until now, right. What we had was excellent proof of concept, great data, a very good mission that I think is well understood and appreciated by patients and some surgeons. And I think more and more surgeons are getting interested in our mission.

我的意思是，直到現在我們還沒有把所有這些都準備好，對吧。我們擁有的是出色的概念證明、大量數據和非常好的使命，我認為病人和一些外科醫生很好地理解和讚賞這些使命。我認為越來越多的外科醫生對我們的使命感興趣。

So I think it's -- I think what you're seeing is your surgeons tend to be slower conservative adopters, which I think you want them to be. A lot of proofing without before they jump in. But we are a company that started with zero on the ground, right, nothing. And so it's taken us time to methodically build this Class I parity with the big players. And I think we can go toe-to-toe now starting now at the start of this year. So I think this is the next phase of our evolution in growth map.

所以我認為，我認為你所看到的是，你的外科醫生往往是較慢的保守採用者，我認為你希望他們成為這樣的人。在他們投入之前沒有進行大量的校對。但我們是一家從零開始的公司，對，什麼都沒有。因此，我們花了一些時間來有條不紊地與大型企業建立這種 I 級平價關係。我認為我們可以從今年年初開始進行面對面的交流。所以我認為這是我們成長地圖演進的下一階段。

David Turkaly, Citizens JMP.

David Turkaly，公民 JMP。

Yes, good evening, guys. Sorry, I might have missed it. Did you did you say -- and I know salesforce expansion not a big part of this year, but you still have 86 reps and 6 assistants reps?

是的，晚上好，夥計們。抱歉，我可能錯過了。你是不是說過——我知道銷售人員擴張並不是今年的重要組成部分，但你仍然有 86 名代表和 6 名助理代表？

We are at 87 reps and 7 associate reps.

我們有 87 名代表和 7 名副代表。

Yeah, that were very consistent from last time, Dave.

是的，戴夫，這與上次非常一致。

Got it. And then you mentioned the Intuitive meeting and your commentary about some further penetration in existing accounts and adding some new. I'm just curious if there's anything tangible you could leave us with, maybe even in terms of new accounts. Does that seems like it would be a great opportunity for you guys to scope out some new surgeons. And I don't know if there's any quantifiable number you could give us, but I'd love to hear your thoughts on that meeting.

知道了。然後您提到了直觀會議以及您對現有帳戶的進一步滲透並添加一些新帳戶的評論。我只是好奇您是否可以給我們留下任何有形的東西，甚至可能是新帳戶。這對你們來說是不是一個尋找新外科醫生的好機會？我不知道您是否可以向我們提供任何可量化的數字，但我很想聽聽您對這次會議的想法。

Yes. I mean, meeting was great for us. I mean, for a short meeting, we had over well over 70 really solid validated leads, There's a very nice percentage of those have already turned into cases or case commitments. It felt like we were part of the ecosystem, right, I would day. Intuitive Surgical is the Apple of medtech in our time and they only pick the best partners to go into their application store. And I felt like being in that app store was was a big deal for us. We never take it for granted. We appreciate it mentally. I think it's going to do good things for us, right?

是的。我的意思是，會議對我們來說很棒。我的意思是，在一次簡短的會議中，我們獲得了超過 70 個經過驗證的可靠線索，其中很大一部分已經轉化為案例或案例承諾。感覺就像我們是生態系統的一部分，對吧，我會的。Intuitive Surgical 是我們這個時代醫療技術領域的蘋果，他們只選擇最好的合作夥伴進入他們的應用程式商店。我覺得進入該應用程式商店對我們來說是一件大事。我們從不認為這是理所當然的。我們在精神上對此表示讚賞。我認為這對我們有好處，對嗎？

It's going to open up the world to seeing us who we are. A lot of the surgeons were seeing us for the first time. So that thing takes time, but the Connect meeting was an excellent, excellent start. And we want to do more though. I think, the case observation sites is something that's also very, very good. We've got many, many robotic surgeons that are now opening up their ORs for surgeons to come in and take a look. And you know, that's great for the robot and it's great for OviTex, too.

它將打開世界，讓我們看到我們是誰。很多外科醫生都是第一次見到我們。所以這件事需要時間，但 Connect 會議是一個非常非常好的開始。但我們還想做更多。我覺得，病例觀察點也是非常非常好的。我們有很多很多機器人外科醫生現在正在開放他們的手術室供外科醫生進來查看。您知道，這對機器人來說很棒，對於 OviTex 來說也很棒。

So I would think that Intuitive contributed maybe the Giga GPO that sits on top of all the other GPOs, right? We want to make sure that everything we do is in good standing with them and that we focus on our compatibility with the surgeons who use the products, so the robot. So I think we're slowly attaining that, Dave. It's nothing but good.

所以我認為 Intuitive 可能貢獻了位於所有其他 GPO 之上的 Giga GPO，對吧？我們希望確保我們所做的一切都在他們那裡享有良好的信譽，並且我們專注於與使用產品（即機器人）的外科醫生的兼容性。所以我認為我們正在慢慢實現這一目標，戴夫。這沒什麼，但很好。

Thank you. And I'm showing no further questions at this time, and I'd like to hand the conference back over to Tony Koblish for any further remarks.

謝謝。我現在不會提出任何進一步的問題，我想將會議交還給托尼·科布里什（Tony Koblish）以供進一步評論。

Thank you, Michelle, and thank you, everyone, for joining us. We appreciate your continued interest in TELA Bio. Have a great rest of your evening. Thank you.

謝謝你，米歇爾，也謝謝大家加入我們。我們感謝您對 TELA Bio 的持續關注。祝您晚上好好休息。謝謝。

That concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。