TELA - Earnings call transcript Q2 2020

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Operator

Good afternoon, ladies and gentlemen, and welcome to the TELA Bio's Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the prepared comments.

As a reminder, this conference call is being recorded. I would now like to turn the conference over to Mr. of and President TELA Relations Vice Bio. Henderson, Corporate Investor Development for Stuart is the yours. Sir, floor

Stuart Henderson

Joanna good ended you, is financial A Thank and of available results Bio today, copy website. for released on TELA the the press quarter the June company's XXXX. afternoon, XX, release everyone. Earlier

Tony today's CEO; President and Nora Joining me Koblish, on Brennan, call are and CFO.

regarding actual encourage in make performance remind March filled resources, those on conference results XX-Q, regulatory call, Before potential, to this May projections over forward limitation, call With company's that, we future materially from environment, during forward-looking I and identify begin, these cause past statements product We limitation and to filled may capital and you impact to may differ regarding filings SEC, I'd that marketing events that company's now future looking operating review include XXXX, the the with on described or turn the or will XX, statements like Tony. COVID-XX. Forms XX-K, XXXX; sales you including These company will events. potential factors statements. factors the of to and XX, the without without development, specific the product the strategies, which

Tony Koblish

from We Thank quarter second was healthy. everyone. Stuart, same joining you, and safe last revenue good increase period for the $X.X X% hope and us. of are you the afternoon, year. Thank an Total you for million,

postponing our fell early April, quarters Our the In nothing the hospitals being second was were second like tech space a tale quarter many with precipitously. many of daily two med like in procedures, the first. sales non-emergent when half

average to daily month below of more sales the April, the prior the daily were COVID-XX XX% sales pandemic. of full For our than beginning our

our our experienced sales levels. our late in June, June, improvement. volumes May throughout steady And pre-COVID-XX and exceeded However, daily

is zones. trend late the in recently fluid several the and look the The elective team's our While wave that into cultivate on regions. and growth second patients, implemented two sales to end as over the about clear in we possibility third sales territories read commitment a of second United in or strength surgeons of to quarter team our our experienced we Though TELA and position portfolio June, May to hot to customers remains have uncertainty by encouraged very several to situation even similar in throughout impact we our clinical the with been experienced long-term. States performing sales educate on located in our worked support our stopped our pipeline. quarter quarter and push XXXX are June, tirelessly limited remains virtual surgeon hearing other adjusted these up solutions data. with COVID-XX and the in our in our our make We to we this early current procedures. territories continuing the meaningful strong progress cases the COVID-XX have product accelerating and sales commercial unpredictable quickly and hospitals remains for what the drive Bio and resurgence forward recent our Despite this to scale of that To of initiatives current designed we

products use in virtual effort different are in previously about of solutions surgeons our brought and The we discuss to scenarios Malvern first with senior our experience. utilizing and clinical VIP whereas, learn version our achieve now is the same an a to to virtual tours, team, here to management our we facility

well the discuss our strategies with in OviTex TELA OviTex event success the branding as a will been broadly history have we and XXX% LIVE have attending surgeons customer continue Through to engagement. surgeons revenue to we Due surgeons KOLs sales the attended our data increase surgeons settings end and happy PRS. report excited XXX virtual importantly using QX, is July, participated This and virtual virtual our in leadership-initiated average of the I'm approach or have KOL Our of seen to received KOLs KOL close to It's of solutions, second forward to these are our who platform virtual in the over called as case our webinars. and VIP seminars. Among engage to and monthly these these solution use clinical for moving with introduce of offers well engagement. growing products. a tours their staff. solution to by

We expect to provide exploring virtual continue support well, additional as proctoring. our customers actively call coverage are case virtual and programs to with we to of add to and our which virtual suite platforms

sales an providing to environment access continues have customers. hospital. hospital excellent Our reps this support and continuous their and pandemic surgeon job, from varies done hospital The to to hospital throughout evolve

and and adapt to various disruptions meet continues policies territories. innovative to team their mitigate to develop build solutions needs and customer with these sales comply Our

are within remain we to flexible regions. reps as our their seeing ready While adjust access, localized now hospital are hotspots and improved generally may arise

time front, recently analyzed. initial an improving been adjacent XX-month patients in remained outcomes have follow-up patient that the At reoperations upcoming reached patients a XX a recurrence abdominal none XX The points of the interim a experienced patient follow-up location At these including days and weakness data XX OviTex clearly XX-month to the that data publication patients OviTex additional hernia announced or On among ventral of conferences. results submitted of recurrence. to This study. we for have effectiveness assessed, stemmed BRAVO the in been These there journal interim analysis medical a included XX demonstrate repair. outcomes of recurrence the in post-market submitted patient original to our medical no at period. experiencing been the this clinical complication. analyses recurrences long-term continues had analysis the analysis using of post-op, several Notably the to repair XX an only months in or intact. were the Of of implant removals all-important one repair area and

is TELA study to a with hernias. study because reherniations post-market timely we sure nonessential evaluate its Bio complex many BRAVO Due the very reminder a complications study visits the are moderate postoperative subjects limiting and to much can make as of in by to closely designed follow-up OviTex working visits to following and a ventral investigators of all COVID-XX, hospitals use possible. with as occur our in locations manner As

Turning our next to operations.

other quarter first strategies conservation a hiring the we including in cash we call, During April, several among things freeze. discussed initiated

being hospital and we are procedures, heels several performing cautiously of the our measures. On elective up capital of are moratoriums our non-emergent procedures successful of on where have June, regions. being in the performed raise capital our late levels conservation hospital close within to revisiting where began These our we force new pre-COVID-XX through added our access sales scaling contracts. sales we and GPO June in territories existing lifting and territories In existing are IDN six

local of region are territories. in-person the to At employing approximately each given managing and as we will the eight So, level, regional strategies a related appropriate consist nimbly, COVID-XX. both situation business virtual

managing the with our our monitor actively move situation, judiciously growth we sure while initiatives operational to make cash. continue We

to hospital months to contracted and Regarding our at favorable chain on engage economics with recent other chain we repair supply hospitals accounts. and strategy in and our within have GPO resources in functions suppliers when Supply contracts, reinitiating about natural clinical of efficacy online systems come are the are compared discussions technologies. communications focused implementation to we OviTex drive with within

to contracts. and progress to organization securing continue make GPO pandemic. IDN the also on But priorities additional variable relative each as its We lines are time manages

We forward on support tough leveraging months progress to partners front updating you and to in our our in are virtual of the look the decision-makers where time, stay solutions possible ahead. we continuing through and business this

we PRS and in to progress Lastly, OviTex with market the products. surgery continue make reconstructive plastic

of we commercial our solicited Following we expanded from feedback June. in surgeons, group a limited a core where launch commercial launch period,

Our quarters. done continue surgeon program we surgeons plastic excellent broaden expect coming development and over engaging team to our the clinical to LIVE has base an our TELA through job

hernia identify further expansion. opportunities and to with We also and advance refine to OviTex our surgeons playing similar continue PRS OviTex our portfolio work plastic portfolio to a approach to

to So call now Nora. over I'll turn the

Nora Brennan

of lower-than-expected to Revenue a impacted today a improved second revenue million. due due Gross period, for procedural of second hello, for press for excess Though to of summary and percentage percentage increased our quarter results it the obsolete recognized charge the deferring as prior revenue. decrease volumes, in elective patients due as our everyone. year to hospitals and refer compared revenue inventory, for the in the the profit earlier was to our a prior to to primarily XXXX. a the of $X.X procedures and quarter X% second COVID-XX. period, Tony Thanks, release quarter issued financial year-over-year over by Please increased year

XX% sales in the XXXX. increase and increased a period. and to in as million commission from activities. prior of period the second of was same XXXX the marketing margin costs, expansion gross salaries, compared million quarter in to quarter in due Second to year benefits The $X.X higher expenses $X.X XX% were Sales result our

in However, the due million second our development by and will a allow XXXX position June, expenses public capital were public quarter shares, actions we capital approximately period. million $XX be growth strategically, in cash QX. slight and cash in reduced the us quarter consulting expenses with we in on cost was of meet XXXX long will Based our second same successfully to a invest quarter XXXX cash. expenses, $X.X for compared company. to was increasing in year million sufficient million. additional from associated our plans, our salary the $X.X our due taken term. offset in continue The XXXX support costs clinical Loss underwritten the team million containment spend. resulting these operations the to in lower laboratory the support and offering compared was in increased the of our decrease second initiatives. increase existing were as of quarter to the by in period closed resources that of fund to million level requirements second expenses from operating million and to X G&A the $XX.X R&D million $X.X was $X.X same prior increase partially lower This million R&D of We to operations XXXX. In ended the in our believe $X compared reductions, the with in and of late $X.X build travel primarily XXXX. This period to outside

Now the of over call the the XXXX to XXXX COVID-XX we continue guidance. on impact guidance. full turning the I'll our continued Tony. suspension from our turn will uncertainties year of business, Due that to to With

Tony Koblish

in one, interest and patients times. In success strength the fundamental Bio. to in growth for our your for TELA your and long challenging very closing, our Thanks, this Nora. thank optimistic continue as and energy, thank dedication I I'm want support the that and again I'm everyone continued throughout afternoon team help we working our to your in creativity sustainable customers our want I will also achieve of and time to for confident term. business these to

So turn meeting the I'll up back operator to over and now the queue questions.

Operator

of from Denhoy [Operator Jefferies. line the Instructions] Your first question comes from Raj

line is open. Your

Raj Denhoy

Good afternoon.

Nora Brennan

Hey, Raj.

Raj Denhoy

in So the in maybe little part June here ask of how now it's August. ended through I way and I July if wonder how the about could bit a looked business and

$X.X think guidance two that at I million. of kind kind say mid-June to update to you were tracking that ended – about gave that for I – $X.X million one up $X.X of should million You

very ramp? you in and July to at I'm recovery Or half curious the now, ground that's quarter. the it of you've now? are But really as sharp back obviously continued August, sustained seeing the So on has what looked a how

Tony Koblish

Yes.

So med keep business in as are. mind quarterly, is really that tech businesses our most

revenue a So perfect for times COVID, in month. last quarter of without to can that we XX% in XX% see in come

saw QX, so the in ratios, end at a little very of April in distortion that, in came heavy I There's So a bit right? say June, of May. was bit those we low So, a back would we on I levels. the but better we're little moderation quarter I'd July, I based just than fact, Raj. maybe pre-COVID say, that, bit believe, out, of say continuation of that would starting a the And in a

really July. if there, use right you can we'll that seeing bit think were we until we through that, maybe I measures, don't we're the pre-COVID level, full a that But I acceleration, if through get quarter. little better you at tell So, pre-COVID know,

So we month July But started were relative very any those happy caveats with just almost had. I other we've out where throw to there.

kind saw went through I we and where month As of the in was that we Texas month the July, thing. first these believe of flare-ups that

that So, there number, was a July. for bit look some components some was territories. undulations in looked or top fine of X% that, the in by Texas, Florida. line off It if great. see But you our so Overall, into little don't underlying it a I we Arizona and at did add you know of undulation little bit was bit the if a business, little at in just

we're we're almost contend this, philosophically have treating that brownouts, to right, just blackouts. Not So, to I with. as guess, rolling going

I think are sure. those for days us behind

in So to you're go zero. a procedures brownout going to elective not see

You may may all fight as see kinds going. procedures see factors a mitigating to hospitals you keep to see and the fight other slowdown, they you shift a of may facilities, will

has given reality, aggressively where here So we and operate into territory whatever agilely our goal is our each us. nimbly create almost to own

virtual go hit new customers with couple it's we drive focused of team programs those next go Where for months. on TELA go and the there's hard, example, we think, we I we for hard So a that. LIVE bank bam, brownout, So those right? we I rolling open if the

Let's we forward go control let's off assume, and going adjusting. control just we it's and sometimes maybe brownouts to what week-to-week rolling be as on, can

grow Our to that. that going optimize through is be through and to goal

got feel that I a can that in So in we've pretty place and all do place a that. team good system

that's long a Raj. answer, a but of thrown that's color too So bunch in

Raj Denhoy

there's as what this That's as level question in a that's you sort demand there thinks follow-up wins, Are has one whether out of also And now maybe hernia difficult demand, super competitive that up can maybe versus be drives now? as opening answer this the deferral your what underlying But period reconstruction well helpful. a you? some catch-up when of then underlying right accounts, just important for way one parse those breast sort more growth, any and about driving well. to been there or and of of new any is maybe recovery may

Tony Koblish

it's last our Raj, we on has so I'm for the weapon it's have whether come said I a products now PRS sales And have many with for say whether new are the data, this going together program like Well, that factors been earnings expanding LPR, it's really right, TELA call great force. to – us. and new us, LIVE

handful if So even look territories. new at had a we of QX, we right, only

had QX. in well XX and real XXXX our XX% new the I the revenue They've reps doing we no field that contributed in in virtually. time think it XX been over world. in versus But QX. in hired They look they've all roughly XX% of

types going overwhelmed little kick here. So think second I gets demand right? surgeons. touches across complex touches the we pent-up in the May. which type and have June a things different probably and a Probably, little think or surgeons of of as other procedures the could factors simple, there spread array well, – few bit we I you procedure got then Was diversity plastic a that we that a of different that have from reconstructive, have an a hernia But by quarter? of all of there of April that on to have We've bit also and

right? what's matter there's I a thing this reality. to opportunity about as terms creating All we've make make of we So said, like spoke maximize procedures. no our And and I we're that like need assets of handed well built going thing this own But the last procedures as go diversity we all quarter docs happen. and us. We're I in can is to somewhere feel

Raj Denhoy

That’s great. you. Appreciate. Thank

Operator

from Piper comes is line line Matthew from the of question next Sandler. Your open. O'Brien Matthew your

Matthew O'Brien

the that's okay. have if question. taking a few, for Actually thanks I Afternoon,

quarter? million of weeks saying of June. you July, think of of similar million first first weeks did two in of $X.X type you Just you the around $X of did for Are starters I that second of the half two last first you had in each a -- Tony, type performance the the the half July

Tony Koblish

No. off thrown that levels, there right? pent-up PO too, pre-COVID month to July So very we of saying What So QX lot some quarter XX% is demand Matt. to XX% when the I'm of was I There's started compared the just right? into saying end in the that good a is, strong of maybe described mind very June of last was revenue what I'm of cleanup, keep place. at that a is,

brownouts not So two But Rep to if miss. rolling we there still saw these very, last the June ramping weeks we'd case. the is now There's be We're hit still of happy. infinity, not access that's patchiness. very yet. or

can of But LIVE I is through think quarter looking this the particularly July two right? all relative But I we in of I we're think we was effective. with weeks outkick think, and that out So to weeks when started I and the know two think even which think. we'll compare terms program, that last we QX in really to this that how to in relative QX forward last the our the TELA I'm grow of quarter where very we I smoothing of September. June in to excellent. Excellent, look trend

So yes it. we're with pleased

Matthew O'Brien

revenue Okay. that the you sales peek the as And think said a giving a in of you bit about behind then reps XXXX curve added are you force. of started And far little doing the QX? in as I performance us XX% the of

Tony Koblish

A little higher.

Matthew O'Brien

I first the X think quarter. you mean only I added in reps

on for a So piece that'd rate QX. about they're $XXX,XXX a be run like just in

they're it's especially the And why rest with they XXX% at everybody growth looked quickly. because base ramping that smaller I the TELA tech, just might in of like HealthTrust? underneath else this Can focused some very good seem seeing LIVE in increase versus know some about be? terms and it's quite that talk the things of would performance then docs Are that you versus So -- you're on that the metrics contracting. a -- the other quarter, these off med of in of

can head of could accounts our in new your here from around as performance far as business? go then And better-than-expected metrics other So cetera? for just that get where et that kind we the

Tony Koblish

Yes.

really I'll really level IPO, But just year versus whack And with into the XXXX counts if right? XXs set. And of ask rep So let's say. in correct to Stuart we territories. we last on going the the ended me, I'm let's out XX about had

Stuart Henderson

XX bodies.

Tony Koblish

XX About about XX reps. --

when we of And reps so, I'm there. including all got in those

is there So reps. yes, a of grouping new

I right? one metric LIVE driven about by script think revenue seen my participated mentioned in successful that increase program, program. So really among XXX% they've the who average surgeons a LIVE I a very TELA monthly been monologue we've in in

that now. So think of out has and And do helped areas certain just reps the are made us the and pre-IPO really -- programs we have the by territories country we in which sure large have and didn't produce to And contracting. started through tremendously. us There we've LIVE those and in sorry, mechanism to overlapped that arenas. live TELA contracted also the we've only available virtual is the it I overlapped

on is the that thing the as expanding going of there's it's -- programs their on. going for And usage. another to focus personal existing also with with Now customers I'm LIVE here LIVE doing these which well, that we're programs goal

usage they expand more they're into and spread We surgeons say a off program customer also want with so doing we a ventrals. want use -- hernias hospital. start to LIVE simple the their new we perhaps within into or PRS, Let's around complex to

see I done of up. And existing expect forward program LIVE going revenue in increase in XX% that conversion we're participate XX% a have of better products users to I customers goes new our that about time now, as over averaging a that ratio and seeing virtual think we're metric get that go right to who program. So And this a LIVE from a April. since we're

the seeing I have -- could mitigating back they on impact. seeing these getting down or have procedures. what access metric could HealthTrust in be been is because possible every that may and think on virtually slowing may that's elective not process you. hospitals It been the a And there's we're are going other positive circumstances and just programs IDNs. why starting. we're It at have the reason TELA But LIVE why of the having

doing think per it. So We're mastered LIVE again. over creating and now over and We us for it. what's over surgeon wired just execute our I got that's XX reality. And really it. really these averaging working and we We've it over own concept month. that's well engagements to of we've of the And been

Matthew O'Brien

few of Okay. was was That's in it as QX? is expecting. that And going the and one about far XX-XX really know was XX% kind to had to reps it you're And know QX adding helpful. lower I than then about quarter? -- Should back on OpEx we as we down actually expect a for hernia here. between in levels Or QX you slightly than go to QX? thinking I higher are Nora. come going levels came Last is I this signaled was are plastic Nora it QX, the split but it same OpEx?

Nora Brennan

So I'll first answer Matt. your one

PRS. With So roughly going XX-XX money. OviTex start mentioned split to about commercial the it bit again. It's OpEx, back, come I mean more program as a we're in we're Tony as investing little to and going to surgeries our -- spend is between respect that still

the see within well R&D. as so And in we'll as commercial it

than certainly in increases some see should we our higher spending forward going QX. So

Matthew O'Brien

it. Got Very you. helpful. Thank

Operator

Thank you, speakers.

line comes the Your Canaccord. from Kyle from of next question Rose

open. is Your line

Kyle Rose

for Great. Thank you right? Can you all me, questions. taking hear very the much

Tony Koblish

Yes, Kyle.

Nora Brennan

Yes.

Kyle Rose

Good afternoon.

other had that couple So dovetail questions a of of previously. I some topics the on

mentioned the of priming your a you existing mean the demand you TELA utilization user underlying like with were pent-up really But So start LIVE base. programs. had maybe just obviously core I some to with times. you already couple pump

can June to out accounts of just board? growth you So just catch-up in on versus how tease of you coming think new that was try some much saw and these the maybe when you about that May

Tony Koblish

clawing, where was So for was catch-up Yes. programs, May. I there but can were LIVE diligently a June. have I was like of could in executing the levels. pre-COVID PO say cleanup scratching to back these and May pent-up there right? I end think it's hard me mean demand only any point XX% That's to We if feel I at it. been perhaps the place

kind think pent-up of I demand of weeks. sustained was couple any So than more much don't a there

I that stuff April, in the at doing. we again. drove was doing most mind, And started beginning think we've very over So LIVE March, of and May over through right in keep and been what we this it over

so we're get we didn't see really June. given of have hospitals until And and the just the starting really lines surgeons through access time to And it to a fruits customers to to running lot go just people end the of process. that takes or May, the new beyond get that to supply the the much of chain, OR the director-type moving early up

we're a now, think right in So July. starting June the or virtual. by But, supply to side see just brownout then started I and more seem phase, levels picking we chain, to normal now of the And into albeit case surgeon OR to things engagement up started rolling there. we volume bit started little through see really is to at again, director and get and patchiness it's not July levels did June here this until good right?

be drove my head for overall, far is Live. to a not due We so big to most impossible driver. in That's So, many It's own so surgeons. I just think, what of we it talked to efforts our at. is where here

Kyle Rose

the there, give invasive around a appreciate more minimally insight us very OviTex could OviTex of little And Okay. side the and you the That's laparoscopic on utilization. the then, I'm versus breakout specifically, wondering just helpful. I PRS. if

Tony Koblish

question, Yes. the it really of And That's wasn't of last was But pre-COVID. smoothed -- the then out, quarter to types much certain case. were PRS. the an a in a complex arena at thinking us the of the right, interesting interesting quarter if procedures was right? and we different terms hernia how I that going that ratios we look stuff in different that's to sort lead ventral extent the mean, good out, of

in the was did say, XX%. Pre-COVID, We XX%. So hiatals And QX for XX% in down hiatals then that, parastomal. hernia we reason the our it actually about about inguinal was XX%. XXXX QX, ventral, QX bit. that Pre-COVID, XX%. grew I'd then QX had on roughly it cases side, a And when of XX% to about umbilical, came was and some were

QX, consistent So, it in versus XX% in a our been a mix right? Our then was robotic were has XX% robotic Roughly, actually And was of open. the growing, and it XX% very on about laparoscopic. was XX%. mix QX versus it ratio robotic. also good robotic, open pre-COVID procedures, And was

Now it's And robotic. starts laparoscopic robot was And a as down XX%. come over. expect take XX% then to has XX% to bit the you'd that

getting techniques back an hernia fixed. if and think, types array of decent of pretty pretty patients So, the a think come I ratios of at volume, procedures procedure with of to has total not problems been recovery the least to speaks in which consistent I as QX, in on side, the getting want that

that's sign all around. I positive a So think

Kyle Rose

the then just can if I one appreciate HealthTrust. one insights just sneak there. one really I is then, last on, And in,

back. those waiting of but been XX the hospital kind think north furloughed somewhere accounts, QX talked I call come being and to a of of on about you were administrators lot has

how and So those into from them getting standpoint? contracted hospitals has that a just trended

Tony Koblish

Yes.

of you percent look And we look was June pre-COVID, were folks accounts in at of from HPG a QX off of And supply or in then the in you to didn't XX and March number we fell XXs at revenue new in starting to and about if solid if May, really to XXs. I accounts quarter, XX%. Our chain bit, those pretty was accounts. at high just so come until that's QX of a accounts, HealthTrust mid on Like QX, part first high recover. the in right, the up you more and think didn't really driving said, little July. that have access from

What's gratifying is good that expect right? second really fine GPO that, contracting if drive step that's one we're to this set underneath us we be But is think well. implement our And back. is look the we'll that back, strategy, doing at but will going is the underlying Kyle, news is has So go up. That's happening. HPG you HealthTrust, IDNs. So there. COVID large strategy I

just at we We're in and example, For contract and on that motion. agreements of got, sole almost Mayo agreement to Florida RFPs at what in Allegheny a consignment Health Network. amounts are a just great pipeline there's

far So be emerging. shelf to It's BXB are focused there's cases, programs is know inventory that job HealthTrust going that's IDNs this we process. this one. do two the virtual that if We do GPOs whenever never-ending go feel and process proctoring HealthTrust to is here and consignment front can the And going to for than on going and wave on on a consignment. like Job our really But implementation, particularly more then be them. IDN as with I implementation. those we're the we've work part, between come we'll and other the up strategy IDN that RFPs we're with most the to enough GPO the as just surf got

So of focused making go we're the parts really business those on now.

Kyle Rose

Great. the Thank taking you for questions.

Tony Koblish

All right.

Operator

your open. Your of Turkaly is JMP next from Dave, Securities. of line question comes Dave the line

Dave Turkaly

users what of up at possible? If you're us I and was the then the And have idea growth difficult that seeing and maybe on congrats guess brownouts then yes, and share posting percent like get in quarter. that maybe trying be around wondering to an were business percent Tony, the these a percent where would what number to just of a is? had at quarter? running the you if the end super may of active Thanks was you with Hey. I willing

Tony Koblish

So about on take -- mean, I'll while Yes. that to the scrambling we the give let three XX commentary numbers, we'll about Well, Stuart's I less about I'll brownout, think to in XX% rolling right? QX. -- And little some just try those call ran Arizona. July than ran XX%. that And of me about states XX% so ran for block that Florida, what Texas,

of So those a I down mixed amongst an one even there's down And and has place. counties, trying HealthTrust think in all is of Texas bunch Arizona it's and states rolling the that's of procedures. will brownout a right? if probably stopped some for going now. of the up they're accounts homogeneous, move over not bag. kind to that you have then on certain Florida And example cluster Florida shut actually of cluster but

not And accounts month-to-month off and and it's they rich were some we've also in with an just So LIVE those then theoretically us but growing bit. the of, in I And in growth taper example on HealthTrust contract clusters, X%. programs particularly, programs. brownout it, a that think areas down sort Florida rich have for little great so Florida you week-to-week. with should and out these of IDN rolling LIVE because It's we the seen saw gives kept

number the in XXX so QX. down little or less than about wrote a customers Stuart that versus in customers of QX So XXX

So as yes, people stopping. we grew with and starting the customer And I guess well. base that's

a it's sign. good So

Dave Turkaly

I all that for detail. the of, maybe sort quick guess just, pipeline. just Thanks Okay. a follow-up

coming. And have you a the for LPR anything highlight year? new think else the lot. I you'd remainder of Thanks us in a

Tony Koblish

Yes.

of So that a new about next pipeline year. we'll products bunch in the we've got talk probably

ones. good really Some

we've then to in well. QX of of not so PRS portfolio product a set is have out still that's robot-specific And for plan year this to range the footing. bulk year. We're for I that of our then a going its going to in We to not to the in that add products new suite the development. got remarks rest really finding LPR my As this we're some interesting hernia-based add really said product are as products got PRS and our really

products So we've launched a new this bunch year. of

launch every goal products is year. Our to new

of The have We'll year on about say yet. or cetera. at into tracking end animal those those we're maybe year we're more products. studies new to of this next all getting and next is contract, So research, et of doing not that labs the folks well for But our to flux ready some the in year. talk timing

Dave Turkaly

Thanks a lot.

Tony Koblish

right. All

Operator

you, Thank have a from follow-up speakers. We Sandler. Matthew from do O'Brien Piper question

open. Your is line

Matthew O'Brien

Thanks follow-up. Okay. for the

on Just guys now I on the the know side are going right quickly with hernia what's circling PRS. you wagons on given COVID.

years? a market COVID? progression about think of So heading of slower do about gotten next off how couple start you think a to of But opportunity was that we think Thanks. specifically we do things the know over meaningful huge. into now I that's that the IPO. that because little How PRS I'm sure is have the the still bit growth driver focus. the product

Tony Koblish

looked. way react products we've and be I we and keep same. talk stepping. with tuned a how data. to an we stuff these our QX very things I be quarters is looks And And honing XX opportunity And see of on popping to such the present array going what based just like the specific it's front And an it's we've lot if to went and the really It's you PRS this much it we've engineered present think types all it's lost of think for way on never out we forward anything darn spread then two also work honing all had to I'm a more more I products. don't bullish that. the right? QX and how the surgeon into opportunity anything science right? QX ideas. I surgeons month. honing think products mean, a there we present I and it like LIVE QX. out surgeons lost mean, huge if going It's changing. I the If the to on that I'll XX Matt of have new them. philosophies happy have that should are

in think next anything portfolio. long-term, out the So if with all PRS can flavors that given to roll I'm the I years bullish on of five we more three that

continue year from we to hernia -- as flavors think been I new we roll where and started out we'll products in So do so. XXXX, hernia of launching every we've

going I over looking side. have to on portfolio similar time a the think we're PRS

This LIVE smart right work. burden and going, to been for new allowing mine be talk are messaging, is commercialization really on a honing But aggressive our product the also foundational ideas. it's in us gold those our way driving then just that allowing So to keeping stuff a us this us is now being grow, to all good a without track, engine honing lines. front

going So Zoom. this with until we're going we melt to keep

Matthew O'Brien

Okay. appreciated. Much

Tony Koblish

Thanks, Matt.

Operator

would further Koblish, Mr. I Thank back to questions you. like CEO. and conference President no the time. showing am this to Speakers turn at Tony I

Tony Koblish

your see Stay you Bye. and safe there. interest next we'll for everybody time. Thanks out

Operator

gentlemen, Thank today's and all Thank for conference call. you joining. this concludes Thank Ladies speakers. you. you

disconnect. now may You

TELA Bio (TELA) 12 Aug 202020 Q2 Earnings call transcript