Evolus, Inc. Q3 FY2024 earnings call

• Evolus has evolved from a single product company to a multi-product portfolio with Estyme approved in Europe, positioning it as one of five global companies with injectable aesthetic products. • Year-to-date, revenue grew 33% vs 2023; third quarter net revenue $61 million, 22% y-o-y growth. • Unique cash pay model strengthens partnerships, added over 600 purchasing accounts in Q3, reorder rate over 70%. • Evolus Rewards Program has over one million consumers enrolled; Club Evolus launched, a subscription-based consumer membership program with pilot showing doubled treatment frequency. • Estyme in Europe has four injectable HA gels across five indications, with an experience program partnering with practitioners. • Evolysse, next-gen cold technology HA, in FDA review, expected U.S. launch by September 2025.

For the third quarter, Evolus achieved $61 million in net revenue, representing 22% growth over the prior year. Year-to-date, revenue increased by 33% compared to 2023. U.S. product revenues were approximately 95% of sales with a customer reorder rate of approximately 70%. International revenue contribution is expected to continue increasing as international toxin growth outpaces the U.S. The third quarter reported gross margin was 68.9%, and adjusted gross margin was 70.2% in line with full year guidance.

• Narrowed total net revenue guidance to between $260 million and $266 million, y-o-y growth 29%-32%, ~95% from U.S. sales. • Adjusted gross profit margin range 68%-71%. • Non-GAAP operating expenses between $185 million and $190 million. • Targeting profitability in Q4 2024 and full year 2025; within 2025, profitability may not be sustained every quarter due to Evolysse launch. • Target $700 million net revenue by 2028 with 20% non-GAAP operating margin by 2028.

Q: Annabel Samimy asked about leveraging digital platform for Evolysse and filler dynamics.

A: David Moatazedi said fillers in U.S. have pricing latitude vs toxins; digital platform includes Evolus app, rewards program, and will be used for Evolysse launch.

Q: Annabel Samimy asked about narrowing guidance.

A: Sandra Beaver said narrowing guidance is typical as entering fourth quarter with less time to deliver on guidance, not a sign of concern.

Q: Madhu asked about market trends and marketing resonance.

A: David Moatazedi said third quarter is typically lower season, market is resilient, promotional activities continue as in front half of year.

Q: Navann Ty asked about Jeuveau price, trends, market share, and 2025 market outlook.

A: Rui Avelar said Jeuveau has increased price, market share (13% exit Q3), and toxin market remains strong with mid-single to high-single-digit growth.

Q: Doug Tsao asked about guidance narrowing.

A: Rui Avelar said it's about better granularity and visibility with one quarter left.

Q: Mikayla asked about Juvederm's decline influencing filler launch.

A: David Moatazedi said watching filler category, it's a large market with opportunity, and Evolysse is differentiated with cold HA manufacturing.

Q: John asked about Estyme's early access program.

A: Rui Avelar said early experience trials in Europe are modest in investment and don't impact operating spend outlook for 2024.