TELA Bio, Inc. (NASDAQ:TELA) Q4 2022 Earnings Call Transcript

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Roberto Cuca: So, we always refer to them as five factors because we do believe that they are multiplicative. So, we get the limit case example that you wouldn’t want to build a 100% sales force when you didn’t have any GPOs in place. So, we’ve been trying to evolve them both in parallel. So, I think it’s the size of the sales force and the number of GPOs that are available at the same time that’s going to have the biggest impact. And to Tony’s point, that we now have two additional GPOs that will be either in mostly full effect for the year or full effects of the year is going to have a great impact because the new sales reps coming in both the ones that are annualized from last year and the new ones that we hired this year, we’ll have a lot of new ground to tell as far as getting new sales. So we believe that those two are the ones that will work the strongest together and the ones that we pushed hardest on advancing.

Operator: Our next question is coming from David Turkaly of JMP. Your line is open.

David Turkaly: Maybe one for Roberto, given the comments you made on the hiring side and some of the new product launches you may have. Could you give us any color on sort of the net loss or the operating loss, even if it’s just directionally versus what you did in ’22? I imagine it’s going to be slightly larger, but is there any color you can provide there?

Roberto Cuca: So, we haven’t provided bottom line guidance. I guess what I do is, I walk through each of the components of OpEx. So G&A should be the same in 2023 and 2022, very slightly higher possibly. R&D will grow a little bit as we advance some clinical studies and as we dig in further into our own internal R&D development programs. And then, sales and marketing is the one that’s going to step up the most. So, there will be two effects. One is the annualization of the hiring that we did last year and the second will be the growth that we experienced this year, depending on when exactly that times out. So, I think we’re not providing guidance on operating loss, but I think directionally, your thinking about it is correct.

David Turkaly: Great. And then, Tony, I think we said last quarter, three new products, and you mentioned the two larger OviTex LPR, but that’s not the second-gen hernia or PRS devices. Are they still untapped for ’23 launches?

Tony Koblish: Yes. We have a third product that is getting extremely close. So, we’ll keep you posted on that. So, we will deliver three new substantial products this year for sure.

David Turkaly: Great. And then maybe I’ll sneak one last one in. Who makes the NIVIS or the bovine collagen?

Tony Koblish: We’re partnered with CMI in New Jersey on that product.

Operator: Thank you. This concludes today’s Q&A session. I would like to turn the call over to Tony Koblish for closing remarks.

Tony Koblish: Yes. Thank you, everybody, for tuning in. We look forward to reporting on Q1 next, and we really appreciate your interest and support. See you next time. Thank you. Have a great night.

Operator: This concludes today’s conference call. Thank you all for joining. Everyone, have a pleasant evening and you may all disconnect.

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