ARX-Aroa Biosurgery

[KW]

Tela (ARX US partner):

• Delivered revenue of $17.6 million in the fourth quarter and $69.3 million for the full year 2024, representing growth of 4% and 19%, respectively, over the corresponding periods of 2023;
• Increased demand for OviTex^® and OviTex PRS Reinforced Tissue Matrix products during the full year 2024, resulting in growth in unit sales volume for each product of approximately 33% and 31%, respectively;
• Drove expanded adoption of Company products in hernia procedures with the launch of OviTex IHR Reinforced Tissue Matrix, specifically engineered for laparoscopic and robotic-assisted inguinal hernia repair, selling over 1,200 units in 2024 from its launch in mid-April 2024;
• Provided full year 2025 revenue guidance of $85.0 million to $88.0 million, representing 23% to 27% year-over-year growth.

"Our team delivered 19% revenue growth in 2024, and we saw multiple record-high sales months throughout the year. Our fourth quarter results fell short of our expectations due to a confluence of disruptions, some of which we believe are transient and others that have already been redressed. Despite these challenges, the overall opportunity for substantial value creation from current levels remains intact," said Antony Koblish, co-founder, President, and Chief Executive Officer of TELA Bio. "We believe our OviTex and OviTex PRS products remain well-positioned to benefit from several long-term tailwinds, most significantly an ongoing shift in the hernia repair market away from permanent synthetic mesh and increasing interest among surgeons in device alternatives to cadaveric tissue in plastic and reconstructive surgery. 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."

Fourth Quarter 2024 Financial Results

Revenue was $17.6 million in the fourth quarter of 2024, an increase of 4% compared to the same period in 2023. The increase was due to an increase in unit sales of our products resulting from the addition of new customers and growing international sales. This growth was partially offset by a decrease in average selling prices caused by product mix as the share of smaller-sized units increased following the introduction of robotically compatible OviTex IHR and our increased focus in growing market share in high-volume minimally invasive and robotic procedures.

Revenue was $69.3 million for the full year 2024, an increase of 19% compared to the same period in 2023. The increase was primarily due to an increase in unit sales of our products resulting from the addition of new customers and growing international sales. This growth was partially offset by a decrease in average selling prices caused by product mix as the share of smaller-sized units increased following the introduction of robotically compatible OviTex IHR and our increased focus in growing market share in high-volume minimally invasive and robotic procedures.

2025 Financial Guidance

• Full year 2025 revenue is projected to range from $85.0 million to $88.0 million, representing growth of 23% to 27% over full year 2024.
• First quarter 2025 revenue is projected to range from $17.0 million to $18.0 million, representing growth of 2% to 8% over the first quarter of 2024.

TELA share price down 24%

[pegasus2000]

ASX ANNOUNCEMENT/MEDIA RELEASE
29 April 2025 AROA BIOSURGERY MARCH 2025 4C – COMMENTARY

FINANCIAL HIGHLIGHTS 
• Second consecutive quarter of positive cash flows from operations, with NZ$1.1 million cash flow from operations for the quarter. 
• Total cash on hand increased by NZ$0.1 million, ending the quarter with a strong cash balance of NZ$22.0 million.
• Strong cash receipts from customers of NZ$20.1 million for the quarter, in line with expectations. 
• Net cash outflow from investing activities of NZ$0.6 million for the quarter, primarily reflecting routine capital expenditure.
• Full-year FY25 guidance is maintained at NZ$76-79 million total revenue (on a constant currency basis)1 and a normalised2 EBITDA profit of NZ$0-2 million. 
• Full-year FY25 guidance is maintained at NZ$81-84 million total revenue (on a reported currency basis)3 (a 17-22% increase on FY24) and a normalised EBITDA profit of NZ$2-4 million.

[lorraina]

https://stockhead.cmail19.com/t/d-l-sdkuljl-yupddjlly-h/

[Shareguy]

Insert from Wilsons latest

We maintain our OVERWEIGHT rating and $0.75/share PT on Aroa Biosurgery (ARX). Aroa has capped FY25 with a solid quarter for sales and cash flow. The wound care and reconstructive surgery category has endured some turbulence this year and remains cutthroat competitive. Aroa remains the pick of the group because it has two genuine category winners in OviTex and MYRIAD, looks likely to graduate into sustainable EBITDA creation and is in a growing net cash position. It is also too cheap. Although we set PTs with reference to sector multiples, our DCF-driven view on what the stock is ultimately worth drives recommendation, first and foremost. We understand why Aroa trades at the discount it does now; but should trade at a premium. With earnings growth, that transition point becomes more predictable. | Key

[KW]

Tela Bio reported last night, stock looking to pop 14% when it opens.  Not a huge improvement on the last quarter, but the cyclone effects should be behind them now.  Focus more on their sales issues.  One interesting comment regarding excess inventory and writeoffs of obsolete stock - who wears the cost ot that?

Recent Highlights

• Delivered revenue of $18.5 million in the first quarter 2025, representing growth of 12% over the prior year period and sequential growth of 5% over the fourth quarter of 2024;
• Increased demand for OviTex^® and OviTex PRS Reinforced Tissue Matrix products during the first quarter, resulting in year-over-year revenue increase for each product of approximately 15% and 2%, respectively;
• Commenced full U.S. commercial launch of larger sized OviTex PRS for use in plastic and reconstructive surgery, which may reduce the need for multiple small pieces and have the potential to simplify more complex plastic and reconstructive procedures;
• Reiterated full year 2025 revenue guidance of $85.0 million to $88.0 million, representing 23% to 27% year-over-year growth.

"We are pleased with the strong performance in the first quarter of 2025 following the realignment and optimization of our sales organization," said Antony Koblish, President and CEO of TELA Bio. "The complementary dynamic between our Territory Managers and Account Specialists enabled new account wins and greater market penetration across our product portfolio. We are focused on carrying this momentum throughout 2025 as we aim to drive higher revenue growth and increased operating leverage and continue to drive towards profitability."

First Quarter 2025 Financial Results
Revenue was $18.5 million in the first quarter of 2025, an increase of 12% compared to the same period in 2024. The increase was due to an increase in unit sales of our hernia products resulting from the addition of new customers and growing international sales. This growth was partially offset by a decrease in average selling prices caused by product mix as the share of smaller-sized units increased following the introduction of robotically compatible OviTex IHR and our increased focus on growing market share in high-volume minimally invasive and robotic procedures.

2025 Financial Guidance Reiterated

• Full year 2025 revenue is projected to range from $85.0 million to $88.0 million, representing growth of 23% to 27% over full year 2024.
• 2025 operating expenses are expected to be flat to 2024.