TELA Bio, Inc. (TELA) Earnings Call Transcript & Summary

Hello, everyone, and welcome to the Thursday morning session of the 41st Annual JPMorgan Healthcare Conference. My name is Alex Kramer and I'm an associate in the healthcare investment banking group here at JPMorgan. It is my pleasure to introduce our next presenting company, TELA Bio. I'll now turn it over to our presenter, CEO, Tony Koblish.

Thank you, Alex. Thank you to JPMorgan as well for the invitation and the opportunity, and thank you for everybody listening both present and out there. First, I'll acknowledge a forward-looking statement. And next, we'll get into the company. So TELA Bio is a soft tissue company that's focused on the preservation and restoration of tissues in the operating room in the surgical suite. We work with general surgeons, plastic reconstructive surgeons, colorectal surgeons and trauma surgeons. We have an advanced portfolio of tissue reinforced matrices. We're the only company on the market that has intellectual property and the technological capability to interweave synthetic polymer fiber with biological materials or indeed any substrate that's biological in nature. We have the ability to reinforce these materials with both permanent reinforcement for long durability and then resorbable reinforcement for short-term durability. The 2 areas that we apply this technology to are: number one, hernia repair with our OviTex Reinforced Tissue Matrix and then plastic and reconstructive surgery with our OviTex PRS product. We're in the process of launching a third category that's more aligned with the plastic and reconstructive platform called NIVIS. We just put a press release out on Monday announcing the rollout of that product. And that product is focused on operating room-based surgical wound care as applied to plastic and reconstructive procedures. So there's a very strong product portfolio here. It's very broad. It allows us to work across many, many different procedure types, many different types of surgeon preferences for technique. We have a big market opportunity, well over $2 billion, and we are a commercial company that I'd say is in the sweet spot for investment. We are a proven technology in terms of clinical performance, data, reimbursement payer, very solid. We have a commercial organization that is very productive. A very large percentage of our reps are well over $1 million. And in fact, we are building $2 million reps on a regular basis. So we have rep productivity heading in the right direction, and we're scaling our sales force aggressively. Our target at the end of last year was to be around 60 reps up from about 45 reps the previous year. And we think we can continue to scale the sales force by feeding it products that are high quality with clinical data and continuing to build out our GPO presence, which is a key platform for this business. So up until recently, until October of last year, we really had one main GPO and that was Health Trust. That represents about 36% of our business. It shows you the importance of what GPO access is in plastic and reconstructive and hernia repair. As of October, we just got Premier on contract, and we're about to announce another GPO contract in the next month or so. With these 3 contracts, we should have more than enough access to continue to grow this business in a durable and high-growth fashion for the next 24 to 36 months and beyond. We've got an excellent intellectual property portfolio. It's 13 patents and counting. All of our IP is centered around the ability to insert these polymer fibers through matrices to adjust properties, represents a moat around the company's technology and these are freshly issued patents, so there's a long runway on them. We've licensed 2 base patents from our manufacturing partner for the tissue type, and this allows us to have both the matrix and the technology platform for assembly and design under intellectual property coverage. And the last but not least, we've got a leadership team here that's done this before in several different capacities. We've got a very deep bench from a company called LifeCell, which went from $0 to about $500 million in these types of markets. I ran a company previous called Orthovita, which went from $0 to about $100 million in biologics as applied to orthopedics. That company was sold to Stryker. LifeCell has been sold to Allergan and many other times since. We also have a core group emerging through our new Chief Commercial Officer from Pacira Pharmaceuticals. He was the VP of Sales there, and that company has gone from $0 to about $500 million in sales with a very sophisticated complicated sale. So we have a deep bench. We have a team here that's gone from zero to well over multiple hundreds of millions of dollars in the past. We understand how to do it. We understand what it takes with these types of biological mechanism of action style products. It's what we do. I think it's a specific skill that's beyond most basic medical device. So we're a very specialized company working in a high-value area. So first, we're going to talk about hernia. It's a very heterogeneous complicated set of procedures, a very, very common procedure. It's driven by demographics. I think once we stood up vertically in our evolutionary process, we've got bad backs and bad bellies, right? That's just what happens. So very high-volume procedures, but very complicated array of procedures, simple things from hiatal hernias to inguinal and simple ventrals to very complicated ventrals and Ab Wall reconstructions. A very interesting aspect of this $1.5 billion market is a big chunk of it is heading towards the robot. And I'm happy to say that we've aligned our entire natural repair OviTex platform with the robot. It can go down tubes, it sticks well when you're selling it, and it's very easy to sell with robotic arms, no deflection. So this technology platform is highly robot-compatible. In fact, about 60% of our hernia units for the last 3 quarters have gone down either a robotic tube set or a laparoscopic tube set. Last quarter, 40% of that 60% was done robotically. We're quite proud of that. We have excellent clinical data in combination with the robot. And I think the future of hernia is going to be non-plastic materials, nonpermanent plastic materials, I'll say, in combination with robotic surgery, and we are super well positioned in this space. To do that, we've got a very wide array of products. The LPR product, laparoscopic robotic, that's what that stands for. We're going to announce fairly soon additions to this product portfolio that's going to give us a very, very broad robotic system. Our base OviTex product is a workhorse product that can be used in a variety of procedures from open to minimally invasive to ventral to inguinal. And then the 1S and 2S products are sort of our high-tech complex products for complicated ventral and Ab Wall. These can be put up against the bowel. They can be used in virtually any tissue plane and they compete with both all Gen-1 biologics, such as LifeCells' products, Entegris products, et cetera. And they also compete with the resorbable synthetics that are emerging and maybe one of the fastest-growing segments such as Bard's Phasix products. So if you look at the competitive set, we've aligned ourselves below with resorbable technologies and with biologic Gen-1 technologies. We are starting to work our way into the displacement of permanent polypropylene plastic. It's been a big problem. It's a subject of many, many lawsuits that are aggregated in a class action. And the publicity around polypropylene meshes is quite negative. And we're starting to see a big drive towards having a complete portfolio that can do those procedures as well. And the reason is simple, well over 60%. I think at this point, of surgeons agree that permanent synthetic mesh can cause long-term complications. Virtually every patient that shows up for a hernia comes with a long Google search that shows litigation and problems with plastic mesh. It takes probably 30 to 40 minutes for every patient for the surgeon to walk them through. So we can provide a toolset, a product set to help surgeons get patients comfortable with the fact that they'll get a natural repair solution from TELA Bio and the surgeon without having to worry about the downstream complications of plastic. And there's well over 33,000 lawsuits aggregated between Rhode Island in Ohio. The bellwether cases have gone off. There's been a big win for the plaintiffs, loss for the defendants recently, almost a $5 million settlement. So if you spread that type of risk across 30,000-plus procedures, you can see that, that's a big liability number. And we see one of the biggest players and sellers of plastic mesh Bard, shifting their customers over to a product called Phasix, which is a resorbable polymer. The reason they're doing this is to start to set the stage for living in a minimal or post-permanent polypropylene world when it comes to implants. So the clinical data is critical here to be able to do this, right? Our first step out of the gate was to displace generation 1 biologics, and we are well on our way to doing that. If you look at our dataset to the right, the red numbers are our recurrence rates at various follow-up points from 12 months to 59 months and beyond. And then the black numbers there are competitive Gen-1 biologics, right? And if you look at the left, that's very interesting series done independently by a surgeon group out of Indianapolis, where they compared 50 OviTex patients in a more complex patient set versus polypropylene, and we had half the recurrence rate. So the signal so far with our dataset and our product set is extremely low recurrence rate, which means low-low revisions. If you look at our BRAVO data, which is our flagship clinical study, 24-month follow-up, it's a very similar design to the studies that are in blue to the right. And a 2% -- 2.6% recurrence rate at 24 months is exceptional. And I really want to point to the ATLAS study to the right, that's Phasix, that's Bard's product. That's almost a 32% recurrence rate. Most of those procedures were done robotically. And I want to point you to the ROTH study, most of those procedures were done open about an 18% recurrence rate. So right now, our signal is very strong even versus STRATTICE, which is a LifeCell product, exceptional recurrence and Ventralight probably is the top probably propylene mesh on the market right now. So superiority versus that product set as well. But this is a heterogeneous type of procedure volume. So this slide really represents the dataset of, I don't know, it could be close to 2,000 patients at this point in various series across all of these procedures from hiatal, very complicated bridged cases, a variety pack of inguinal cases, both open and robotic. We have a very large series probably approaching around 1,000 robotic inguinal patients, which is exceptional. And then all the ventral and Ab Wall reconstructions on the right, those recurrence numbers in the red box, they confirmed the signal, very, very low, right? One single-digit exceptionally positive results. You see that higher number there in bridged cases, that would correspond to the 40% on the previous slide here, there, right? That's a complex bridge set of patients. So 40% versus 16% in the worst of the worst. And I just want to say, most of these terrible complex procedures are done because plastic synthetic polypropylene mesh has been removed once, twice, 3, maybe 4x, right? So the more times you have to remove these materials that tend to create a foreign body reaction, contraction and erosion, the bigger the problem gets. So fixing that problem becomes tougher and tougher and tougher. So the fact that our product can do exceptionally well in those procedures, along with the simple procedures, shows that it is a broad platform for all procedures. Now you look at how this market has been evolving, right? It was really a 2 material market in 2013 when we started this company. The dark blue is polypropylene mesh. 85% of the procedures were using polypropylene mesh, it accounted for half of the revenue. And then the light blue was biologic materials. Only 15% of the procedures, but half of the revenue, which shows you very high-priced materials that were ripe for disruption, no patent left, life left on them, ripe for disruption, particularly with our reinforced tissue matrices. As you see the years unfold, you see the emergence of the red and the orange from the center of these bar charts. First, these resorbable synthetic materials, orange and our product red, just work their way towards the right, which is displacing Generation 1 biologics. Once we prove ourselves there, we're starting to work our way to the left to displace the polypropylene materials. The key factor here is strong clinical data. Yes, we have it. Robot compatibility. The robot will eat hernia over time. The entire market, except for the most complicated opens, we believe, will be dominated by robotic procedures. So robot compatibility, we have designed our products to be robot-compatible, 60% are used robotically today and our clinical dataset supports excellent recurrence rates equal to open procedures using the robot and cost-effectiveness finally. Our product set offers between a 30% and 40% cost savings versus Gen-1 biologics and perhaps a 20% to 25% cost savings versus those resorbable synthetic leading products from Bard. So it's rare that you have a technology and a company that has the ability to provide better outcomes, better results in conjunction with a very strong economic value proposition. Everything I just said about hernia can be applied to our plastic and reconstructive business as well. We can use our technology to sow these products into very specific formats. We're approaching a $700 million market. There's a variety of plastic and reconstructive procedures, but the main procedure here is breast reconstruction after cancer. So post mastectomy, implant-based reconstruction is predominantly where surgeons choose to use these materials. The leading product set here is human acellular dermal matrices derived from cadaver materials. And again, LifeCell is a leader here, but there are many, many clone products that are essentially the same, the process of cadaver skin. So our goal here is to displace the use of cadaver materials. We have a more a product that is more steady in terms of its characteristics. It's the same every time you open the package, and we can design some very interesting features in through this layering constructs and selling similar to we do in hernia. Right now, we have 2 flavors of PRS. We have a permanent reinforce PRS for difficult and complex procedures, sounds familiar. And then we have a resorbable reinforce PRS for the more basic procedures. We are on the cusp of launching, hopefully this year, a second half of the year or so, a third version of our PRS product, which will be a medium-term resorbable product. So surgeons will have 3 choices, and we are currently working on a resorbable polymer technology that should be out within the next 18 to 24 months. So we have a wide array of choices. In the end, we're going to have the biggest, strongest product portfolio around plastic and reconstructive in the business with 4 different products, and we'll have 3 certainly by the end of this year. So we have been a commercial organization and built this business essentially in the pandemic. So there's many things we have not been able to control. What we have been able to control are what we call the 5 factors, right? We can control our sales force size. We've scaled it. We can control our rep productivity. We've done intensive training, lots of surgeon labs. We can control our product portfolio. We're launching 3 new products this year, robot compatibility, a new category of product called NIVIS and a new PRS product. These are 3 high-value product technologies, and we've gone from minimal GPO access to tremendous GPO access, especially when we announced the third one later in the year. And our clinical data has matured exceptionally. It's starting to be presented. There's going to be more presentations at SAGES, et cetera. And our data in comparison to competitive products is exceptional. So we can control these 5 factors. We try to make it a mechanical, controllable system, almost an equation and the product at each one of these things drives revenue growth. So there may be ups and downs with nursing shortages, procedure volume, dips and ebbs and flows, but we will grow with the discipline of running these 5 factors and optimizing each one of these. There's many, many things we can do in the future to continue to optimize these 5 factors and continue to grow sales, which is why we have a lot of confidence in the next 24 to 36 months of durable, strong, sustainable growth in these high-value markets. And to date, that's exactly what we've done. Our last quarter was 46% growth year-over-year. We're growing sequentially. We've got great cash position at this point. And I think by any measure, we're a company that's very interesting, very low valuation for whatever reason, going public right before the pandemic. But we have the table set for this business to thrive and grow, and we feel very confident in our ability to manage those 5 factors and build this business. Each piece is maturing nicely, and we have an excellent team that knows how to do this. And with that, I thank you.

Great. Thank you so much, Tony. Really appreciate it. So now we're going to kick off the Q&A portion of the presentation, a reminder for those of you either in the room or on the webcast, there's 2 ways to ask questions either through the webcast link or just ask by raising your hands and there'll be mics going around the room. Tony, I think it would be great to kick it off with just a question about the 5 factors that you discussed. So you repeatedly discussed these. Could you just describe those in a little bit more detail and more specifically, how leveraging one or each of those guides performance for the company?

Yes, I'm going to introduce Roberto Cuca, our Chief Operating Officer and CFO, and he'll start that discussion, and I'll add.

Thanks, Tony. So one of the keys with the 5 factors is that we intend to optimize them all, and we're increasing them all, but you don't want to max out one before you develop the others. So for example, it wouldn't make sense to have a full field force with no GPO access. So we think about how to grow them all in concert to maximize the year-over-year revenue growth. So for example, we ended 2021 with about 45 sales reps. The target was to grow the sales force to about 60 at the end of last year. We were at 57 midyear, so that was well in hand. We've been adding GPO contracts and expect to be pretty close to the optimal set of GPO contracts in a year or 2. Our sales force is something that we expect at maximum to grow to something like 90 to 100 sales reps. So as we increase all those growing our product portfolio and developing clinical data to help our sales reps sell to physicians, we should continue to see significant year-over-year growth. And that increase in sales force size in particular, means that there will be continued step ups in the total amount that we can sell.

Awesome. Thank you very much. And then just another question. You mentioned a little bit in that answer there. Can you just talk a little bit more about the status of GPO access. And as GPOs come online, how is that impacting penetration?

Yes. So GPOs are not all the same, and contracts are not all the same, right? So there's a hierarchy where certain GPOs are highly compliant, which means if you're on contract, you have a big advantage versus anyone not on contract. And we have felt the brunt of 60% of our business today, having to go through the high friction of developing that business off contract. So we understand that difficulty. So there are other GPOs that are less compliant in driving those contracts, and those are more like traditional licenses to hunt. The 3 GPOs that we will have landed by the end of the next month or so are of the variety that are high compliance contracts, right? And you could see that even though our HealthTrust contract started, right when the pandemic started, it's a 3-year contract, we realistically only were able to implement into that space for half of the time, maybe 15, 16, maybe generously 18 months, given what was going on at hospitals. Even with that limited implementation period, it's still about 36% of our business. So that contract is up for renewal. I think we're going to get -- we have great signals that we'll get that renewal and it may even be a better form of the contract. The Premier contract, which started in October is similar, except it's a bigger organization that is probably going to take a little bit more time in terms of driving it and implementing it. I think it's going to take at least 6 months for us to start to see the benefits of access to those 4,400 hospitals. But we're already starting to see good traction. The reception has been great. We still have to get in there and organize with the clinical staffs and develop the interest with the surgeons, but it's a heck of a lot easier on contract than without -- particularly with our value proposition. This last contract is going to be very similar, maybe even tighter. And both the Premier and this new contract really favor us in that they are limited the number of vendors, right? In fact, the last contract may be a dual-source contract just 2 players in our big category of natural repair, not biologic, not synthetic, but natural repair, which is the fastest-growing segment. And what's interesting is that we have an opportunity to win 80% of that business in any hospital, right? Between the 2 players, there's going to be an 80-20 split. And with our clinical data and value proposition, I really like where we stand. So we went from a very simple contract with a great compliant GPO, put us in the biologic category, which can be limited. We had limited time to implement. We've done well. These next contracts are going to be much more open to us in terms of structure. And we're actually in there with the big boys in terms of tiered compliance for discount, volume for discount, which means we've graduated to the next step. So we're going to emerge as a very strong GPO platform player, which I think, as Roberto said, allows us to then build off of as the base so that we can maintain productivity for our sales force.

Great. And then expanding a little bit on that, just in terms of the progression of the sales force, could you just touch a little bit on your productivity targets for this upcoming year?

Yes. So I joined the company about 1.5 year ago. And one of the questions I asked when we first started digging in was, is it possible for us to increase our revenues without negatively affecting the bottom line within a year, i.e., can our sales reps pay back for their incremental costs within the year so that we can hit our IC targets and continue our growth significantly. So we did the analysis and what we discovered is that about 2 years ago, the time to breakeven was something on the order of 18 months. But that with the implementation of what we've called playbook 90, which is a training session based on the top performers over the last couple of years, we've gotten that down to 3 to 6 months, in part by managing out less productive sales reps and in part by training all the sales reps on all of the tools available to them to sell within the company. So with that sort of productivity, we've been able to justify accelerating our hiring, which is what got us from the 45 to 60 over the course of last year. And we have a robust discussion with our board about what sort of growth for the sales force we're going to do this year.

Great. Very helpful. And then switching gears a little bit just to talk a little bit more about the product portfolio. Obviously, as you mentioned, announced the commercial launch of NIVIS. Can you just talk about how it's differentiated from others in the market -- and then expanding on that, how it complements the rest of the portfolio?

Yes. So like all of our other products, when we developed NIVIS with our partner, we focused on innovation, a value proposition that was both clinical in nature and economic in nature. So excellent price point in comparison to what's on the market today was a part of the equation, very similar to what we've done in hernia and plastic and reconstructive. So in our last company, we had very, very interesting experience with the hemostasis product that was derived from a very pure cut of collagen called fibrillar collagen. It has very interesting handling properties as well. So we decided to make this wound care product, again, for the operating room, for the current surgeon population that we service out of fibrillar collagen. So it has a very interesting absorbent hemostatic characteristic when it's used. It handles better than anything on the market, dry or wet. And it actually has a multiphasic capability, i.e., surgeons can change its form to suit their preference. So it can be used in a dry putty-like form, which is why we call it pack. And then it can be progressively used in a wetter and wetter putty-like form until it actually creates a gel and it can be spread over larger surface areas. So there's no other product on the market that can do that. Most of the other products are dusty, difficult to handle. Our early clinical usage has shown that these handling properties are a distinct advantage. So we're very early days. We just trained our sales force at the start of the New Year. I already see cases starting to happen. Most of them are in the trial mode, but the feedback has been very good. So I expect NIVIS to evolve over time into a third leg of our product portfolio that we can then build off of just like we've built off of the PRS and hernia portfolios.

Great. And then talking a little bit about the broader pipeline, I guess, building off of that again. Obviously, you got a lot of new products coming in. But when we think about the transition into more of a platform or portfolio company, how should investors think about the move into broader soft tissue reconstruction.

Yes. In the next 24 months and maybe even longer 36 months, the product portfolio of this company is going to expand greatly. We have a very interesting intellectual property portfolio that is centered around reinforcement with a variety of different polymer fibers. Right now, we're embroidering biological materials. We can very easily embroider resorbable synthetic polymer materials that come in a variety of configurations and flavors for reinforcement. So there's going to be a wide range of products that will be coincident with what we have today, all with this reinforcement capability centered around our intellectual property. So when we're done, I expect us to have the widest natural repair product portfolio for both hernia and breast reconstruction in the world. We will look a lot like Bard looks today, except rather than being centered on polypropylene and synthetic polymer, we're going to be centered on reinforced tissue matrices and then reinforced synthetic resorbables, so it's going to be a natural repair version of a very broad portfolio. That's sort of the core. On the peripheral of the core, we're working on a wide array of ancillary products that we consider to be preservation of tissue and restoration of tissue, right? So things like fluid management, hemostasis, absorption of seroma, the management through drains, et cetera, we are working and developing products in all of those areas. Every one of those products is designed to work in synergy in concert with our reinforcement technologies, right? So the goal here is to be able to have a synthetic bundle that's all designed to work together to get a better outcome for our OviTex, our PRS and our coming resorbable reinforcement products. So I think that's the 2 legs of what we're going to build here and it's going to be an exciting run. And I think we'll have it in place roughly over the course of the next 24 months.

Great. And then in your presentation, you touched a little bit upon the BRAVO study results. If there's anything that you could expand on further there, I think that would be helpful. And then sort of a related question there, how do you convince general surgeons and hospitals to actually use the product?

Yes. So I'll start with the latter. I think the BRAVO study is not much more I can say than 2.6%. And I think the broader array of the thousands of patients that we have across all the different procedures are still low-single digit. So the signal is consistent across the range, right? So I think there's confirmation that flows both ways between the BRAVO study and the rest of our series. Clinical data is very important. But in this day and age, being able to tell that story and present that clinical data to surgeons, with the blessing of supply chain and hospital administration is super, super important. So I expect we'll become much better known. We're going to increase our social media presence, and we've built a marketing team for the first time. So we're going to be very well known to both patients and surgeons and supply chain, I think, in the next 24 months. The centerpiece is going to be the clinical data, but the breadth of the product portfolio and our ability to bundle the bundle with the GPOs in these specialized areas is also going to play a big factor along with a very talented sales force that we're creating.

Very helpful. And then also in the presentation, you touched upon the size of the hernia market being about $1.5 billion market opportunity. What do you do in terms of starting to get into the more mild to moderate cases in that area?

I'll start -- I got this. So robots, right? Robot, robot, robot. You can see clearly that plastic mesh, particularly polypropylene mesh works well with the robot. So the real irony here is that a $2 million robot that is designed to get a better outcome for the patient in terms of minimally invasive access, being able to do a primary closure of the repair, being able to sow in the prosthesis, the implant exceptionally well. All that stuff is 100% true. It makes no sense to sow in a piece of polypropylene from 1965 when I was born, that has 33,000 class action lawsuits aggregated around that basic technology. It makes no sense. So the ability to use a natural repair product that's modern and innovative in concert with the robot has to be the winning hand. It has to be the winning hand for patients. It has to be the winning hand if it's justice in the universe, right? It just has to be. So we've positioned ourselves very well. Our robot compatibility, even though we're small in terms of overall market share, our market share is growing every single quarter we track it. And the fact that we've gone from 30%, 35% to now 40% of our procedures being done robotically and 20% of our procedures being done laparoscopically, that tells you that we're doing the simpler procedures. You generally do not do the large complicated procedures with the robot.

Yes. So I'd add only 2 things. So the first is historically, the company began in those larger procedures with very large sheets where physician surgeons saw how well it's performed compared to plastics and then begin migrating down into smaller pieces. And then the second point I'd make is one of the things we need to do is just get traction with physicians to get in front of them. We aren't anywhere near the full size of our sales force. There are a lot of surgeons who aren't familiar with the product yet. And so just getting the product in front of them, explaining the 2.6% recurrence rate and getting them to start using the product as a test is one of the things that will drive a lot of the growth going forward.

Got it. That makes a lot of sense. And then just more of a broad brush row question. What are you guys most excited about in 2023? And what are your top priorities for the company?

Yes. Our top priority for 2023 is to work those 5 factors and optimize each one of them, right? And we have taken really great steps in 2022 through the end of 2022 to make sure that we have as much of those 5 factors in place for the start of '23 as possible so that we have a good, long, strong run, right? So I think full GPO traction, frustratingly, it doesn't happen instantly. But certainly, in 6 months, we should start to see that start to take off. And then I'm really excited about the new product range and product portfolio that we're developing. And I think our commercial organization is going to be best-in-class for this soft tissue preservation and restoration. I look forward to continuing to optimize and build that. So I feel like our clinical data is going to take care of itself. We're through that early phase where you're worried how well does it work? Every piece of data that we -- that comes in across -- done by surgeons or done in concert with us and surgeons, it's very consistent. I'm also very bullish about being the only company in the soft tissue space with 4 plastic and reconstructive products. And we're also taking steps to develop the label within that space with retrospective data collection that we've done under the auspices of FDA. So there's a lot going on here. I think there's a lot of value that this company has in place right now. A lot of value that is going to be unlocked in the next 24 to 36 months, and for whatever reason, underappreciated right now. So we look forward to getting more appreciation as we go forward.

Great. Those are all the questions that I had. I think unless there's any questions from the audience. I think just any closing remarks you have would be helpful. You sort of already touched on it.

I think that was it -- what can I say other than being repetitive.

Lots to be excited about.

Yes. It's early days for us.

Yes. I think, look, we're a $40-plus million business with 40-plus percent growth, and we think that can continue.

Great. Thank you very much, Tony and Roberto.

Thank you.

Thank you.