TELA Bio, Inc.

Good afternoon, ladies and gentlemen, and welcome to the Telabayo Third Quarter 2024 Ending Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the preferred remarks. As a reminder, this conference call has been recorded. I would now like to turn the conference over to Louisa Smith from the Gilmartin Group. Please go ahead.

Thank you, Leonardo, and good afternoon, everyone. Earlier today, Telebio released financial results for the third 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 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 Forms 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, changes in surgical procedure volumes due to various factors and conditions identified in our filings, changes in the regulatory environment and in our sales and marketing strategies, our capital resources, and our operating performance. I'd now like to turn the call over to Tony.

Thanks, Louisa. And good afternoon, everyone. Thank you for joining Telebio's third quarter 2024 earnings call. Roberto and I will provide our respective updates on the quarter and review our financial results before we open the call up for your questions. I am pleased to report that we delivered a very strong third quarter that marked a return to growth rates across the portfolio more consistent with what we've delivered historically. Recall, last quarter we had to work through the impact of cybersecurity events that affected some of our hospital customers. That effect appears confined to that period as evidenced by revenue for Q3 of $19 million, a 26% year-over-year increase. Demand for our portfolio of products was high, with unit sales for Ovatex and Ovatex PRS growing 39% and 44% respectively, while our European business grew 67% from the prior year period. Global average daily sales exceeded $300,000 per day, and there are now more than 700 hospitals worldwide using our products across a steadily growing GPO contract base. Additionally, we recently announced the closing of a public offering that added $43 million of cash to the balance sheet. As a result, we believe that we are amply funded to continue driving strong revenue growth and reach profitability. With that overview, let me provide some additional details, starting with the dynamic international growth we generated this quarter. Europe's performance has been particularly strong with significant market share gains in UK, Germany, the Netherlands, Austria, and Switzerland, along with promising early results in Spain and Portugal. In Q3, we achieved our first million-dollar month in Europe with Ovatex firmly established as a market leader in the UK and the Netherlands, supported by encouraging clinical data presented in journals and at congresses. We are effectively adjusting to Europe's widely practiced and UK-mandated model of patient consent or shared decision-making to guide us in developing tools that better support surgeons worldwide in this essential practice. These tools empower informed choices, aligning with our commitment to patient-centered care globally. The shift from polypropylene and synthetic mesh towards a more natural repair product like Ovitex is steadily gaining recognition for its safety profile and clinical benefits. We have implemented multiple strategic initiatives to leverage recent shifts in the market to position Ovitex as the preferred choice for surgeons and their patients when deliberately opting out of plastic. In hernia and abdominal wall reconstruction, we sold nearly 5,000 Ovitex units this quarter with 60% usage in minimally invasive procedures. reflecting strong adoption of Ovatec's LPR and IHR products. Our plastic and reconstruction portfolio also saw significant growth fueled by Ovatec's PRS LTR, topping 6.3 million in Q3. I am also very pleased to report we are doing a very effective job gaining mindshare among surgeons. Q3 was a standout period for Telebio at key society meetings, exposing us to thousands of potential surgeon customers. At the American Hernia Society meeting in Chicago, we generated significant awareness around Tela's brand and its products, including by hosting a highly attended lunch symposium featuring global thought leader Professor Maya Vormeister from Amsterdam, speaking about her experience with Ovitex in complex hernia repairs. We were also able to host a unique evening reception with AHS and a couple hundred surgeons where Professor Boardmeister captivated everyone again with her talent, this time as DJMV. We also continued to drive exposure in the PRS arena and sponsored the welcome reception at Plastic Surgery, the meeting, where we were able to reinforce our commitment to innovation and partnership in plastic and reconstructive surgery to the nearly 2,000 surgeons in attendance at the conference. Our meeting presence also included expanded partnership with Intuitive Surgical at their 360 meeting for hospital and health system leadership and a symposium at the American Foregut Society meeting where renowned former society president Reg Bell shared his insights on Ovatex. Commercially, we are set to benefit from a growth strategy that is based on data-driven selling across the whole portfolio. We appointed Greg Firestone, Chief Commercial Officer in May and he wasted no time making important changes to our commercial strategy that have already resulted in a more productive sales organization. Most notably, the deep PRS training and skill assessment that began in the late fall of 2023 and extended through this year has involved our sales force's balanced selling across both PRS and Hernia product lines. These improvements across our training and development program have also enabled us to streamline our commercial organization with a focus on more productive, quarter-carrying sales representatives, and less on other auxiliary functions that have historically supported our sales organization in PRS and other highly specialized applications. We are already seeing those benefits and believe the strength of performance in the third quarter is indicative of early success and sustainable growth moving forward as we continue to evaluate and evolve our teams to support a more efficient commercial organization. From a financial perspective, we have also made notable progress. We implemented changes in the third quarter that will annualize to approximately $5 to $10 million in OpEx reduction, with some of the savings expected in the fourth quarter and the full impact manifesting in 2025. These changes, in conjunction with the recent public offering that added $43 million in cash to our balance sheet, should allow us to reach break-even while maintaining a solid growth trajectory. I look forward to speaking less about our balance sheet and more about operational performance. in the coming quarters. I'll now turn the call over to Roberto to review our financial results in more detail.