EOLS - Earnings call 4 2023

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Operator

Good afternoon, everyone, and thank you for standing by. Welcome to Evolus' Fourth Quarter and Full Year 2023 Earnings Conference Call.

As a reminder, today's conference is being recorded and webcast live. [Operator Instructions] I would now like to turn the conference over to Nareg Sagherian, Vice President and Head of Global Investor Relations and Corporate Communications. Please go ahead.

Nareg Sagherian

welcome Avis' joining year Fourth results. and call on XXXX operator, review to quarter you, to us everyone today's financial Thank and full

fourth Medical David Chief Moatazedi, release and Chief Sandra XXXX website Our Beaver, Rui Financial evolus.com. With Head President full Avelar, of Officer; on and Chief at are now and our press today me Executive and quarter Officer Officer. is year R&D;

will forward-looking call, include discussion, our like note our I'd meaning prepared our United questions. and remarks response statements Before securities we begin your of forward-looking that to the statements within laws during to States management's in additional

Forward-looking statements forward-looking detailed and by company its number undertakes any be and and to of is estimates that, except Form are the to which uncertain and reports place may assumptions which assumptions the affect as expectations are as the of these call, the forward-looking speak report uncertainties. annual on company based undue the Form contained company's believed only to Q reliance estimate, or statements cautioned current projection are of and A subject reports risks not Form on on are to on obligation although or of inherently and current forward-looking Listeners and uncertainties a future that quarterly discussion risks reasonable, strategy, in statements, required date X-K. faces law. These events performance. trends, review XX-K, on statements, based this update and operations no or of management's financial on

for at the in results. as financial website which with was be and from non-GAAP include not should our evolus.com. Investor release, our of X-K or found with earnings discussion substitute SEC to our A GAAP results reconciliation in Form and to GAAP Relations non-GAAP may isolation in considered Additionally, furnished today's today our a filed addition which be on will measures,

CEO, replay a that, call, of Moatazedi. David call website conclusion will Following our the our at evolus.com. With the be turn to I'll on today's available over

David Moatazedi

Nareg. you, Thank

very year focusing report leading delivering strategy another are beauty quarter pleased while consistently long-term on XXXX of our record full market. We on on the to and performance results

consistent Our focus purposeful. and is

targeting fastest-growing the building and adjacent the a generation. primarily segment known brand represent of to are are neurotoxin beauty millennials who market We influence

Our becoming fastest-growing for differentiated in market year. United aesthetic the has approach third resulted consecutive in the Jeuveau toxin States the

with our line. the achieved During year, major into our the execution filler milestones, we expansion our Europe global novel the U.S. dermal in of including addition the several strong neurotoxin of the neurotoxin, and

result, a have addressable We and approximately our market addressable comprised billion where little penetration. segments increased be no X to we XX%. currently total X As segments, we by now market distinct our of including $X view to

is high value, market years. is The which first neurotoxin billion single $X.X for the segment double-digit to low of grow at upcoming growth X rates to U.S. projected the

We fifth year competitive May, on and of proud the market new have our are to despite trends. double-digit achieved are being market share celebrating Jeuveau in

a XX% presence dermal which of international is enter the plan by line, market, with with in estimate a addition last rate toxins The market represents a addressable growing XXXX. similar the to in billion, second overlap filler having to U.S. XXXX expect the clear $X.X have representing of the which billion our market, we $X.X we filler countries the to is we is doubled the and than base. And total customer in market current segment segment at a product more

milestones our exited Loyalty grew year. And XX% providing year. of base new added on front XXXX expansion, we receiving treatments XX% consumers XXXX, we These accounts. importantly, more the market represented which total with proved the than brand, XX% repeat Evolus the built consumers our of consumer quality weeks year our II consumer purchasing focused U.S., the XX with global our the the which high Program, accounts aesthetics. In up executed competitive moat to prior cash first formulation. option and addition to the we over Strength Jeuveau In duration XX,XXX Extra in Phase R&D total the study, products the prior from the demand for longer-duration of a nearly And as the by in Rewards of X,XXX with redemptions reinforce end based XXX,XXX growing on our in we company our

revenue and in XXXX focus million line rate $XXX in growth we announcement toward coupled profitability, is on provide the to compound XXXX position this by fourth our which a announced on expenses, top progress of of million at performance, guidance revised at for assumes million, us quarter to outlook achieved indicative with we is year in XX least profitability revenue our guidance annual are making Continued throughout operating a January. reaching why of milestones now $XXX in our The XXXX. Further, year of gains full these from XXXX, disciplined $XXX the we growth and the today representing XX%. XX% long-range are the strong

the million our continued to into growth preliminary results for end from quarter unchanged and and reported the I'll over of revenue respectively. full XXXX, gains. The the demand year, the In the $XXX which Now get growing of surpassed global million XX% market results our achieved a year XX% high-level share representing for record financials, prior view million on $XXX consumer $XX January a the we of full are guidance XX. of top and year, due fourth

both share XX% And prior market half growth industry our growth back in quarter. International quarter gains half, driving year rate. continued fourth and sequentially XX% the accelerated in estimated share, first meaningfully business. the above over Our market and XX% importantly, Jeuveau revenue increase the resulted the were achieving fourth multiples above with of our quarter

for under the our the [indiscernible] total Nuceiva fillers market and to is agreement dermal brand imitate continue Europe. footprint Evolus, to to announced with global doubling exclusively agreement our our international with of addressable billion. name This We distribute expand $X.X success a significant December in licensing

like accompanying our call slides the discuss line to turn to and Investor over the review I'd Now Relations to website. posted the to filler Rui dermal

Rui Avelar

David, Thank afternoon, good and everyone. you,

As simple, speed to with update solar Evolysse David the we share Europe, and I'll Stems it the name make I'd like refer to product line. you Evolysse an mentioned, in line call. on to use on the the as

groups. The place Smooth nasolabial With end similar initial is Restylane-L over Restylane-L are outcome assessed can option the HA a nasolabial of own by HA assessment a Slide The for responder the for and the fine solar each a the of scale scale this high also the X HA optimized block to was Europe, was FDA responders a Restylane-L the of lines multicenter, have X. statistical on the nasolabial seems noninferiority fold was folds, improvement upper the at the rate endpoint with In product improvement reach XX.X% active in X be Going illustrates to intervals like on lines study for the difficult assesses X.XX study XX.X%. Slide as Then randomized, after X injected data Of aesthetic graph used. in at small specific at equivalence was you the the severity of right which X.XX, the a product dose both since grade Lyft months. confidence aesthetic of an Note smooth creating second with This of baseline Lyft the Evolysse the the the the comparing of smooth using X used rates CAS similar the helps aesthetic The with X. The high and the to month, the and aesthetic the also expected gels. time. mouth building confidence of in in fine left passing the superficially scale meeting as Evolysse more investigator. at severity of target the Lyft right trial took Lyft baseline design right of a to and molecule products presented primary months, open-label, Evolysse placed XX.X% patients, grade The and providing endpoint. patient's world Evolysse at Paris, severity only manufacturing gel compared the an a The and between and effect summer. control or all the the least patient area. was uses as PMA around study, the in NFS for despite actual XX% investigator minus the improvement process filing preserve HA out the X-point coal difference be at was Nine change volume primary scores were volumes study. the undergoes between can lead unique weeks studied time the split-based treat are the and lift superiority months. X European of treatment a injected scores with outcome and in XX-patient process, products products. average respective Lyft. graph blind, treatment, was the to NFS one some are NLF enrolled shown improvement note, X, volumes products. The from The the using severity Evolus X. used the also we'd to lines. be demonstrating and on but reminder, the and in natural numerically time assisted Lyft an from and bound measured manufacturing double the in perioral the and technology, importantly, points, was full at The largest for favor in lift. The there. Slide the that global pronounced interval lines structure, X XX% data indication. Last more successfully scores product share to the percent clinical and the X over cross Fine validated to XX needs their treatment. throughout the in was U.S.,

using to assessed at X all special increasing to X the ml. allowed. the were Lyft used scale XD was touches was Restylane enrolled treat way milliter time Europe, end XX system, of is of were using popular year average In the each amount study. Slide no study, studies millennials. XX study the results the sheet here of scope study X.X Smooth We of but correction We've product initial course the XX% year. ml to In the half a a lead and was volumetric in the Here, product X. the received Evolus the patient U.S. The was XD over product X in their a fullness correction the validated followed XX-patient X a particular from volume the different. injected. Slide patients months Evolysse see into note known patients score, initial this our included an years. U.S. It's initial a of each EverVALLIP measured. stable the by correction single-arm of interesting a at see of ml X.X a for is product can volume than was a In for as results only of trials used the then in the we touch-up as also through the and to treatment indication here at interest in X little the that its halfway Lyft a out lip treatment, of study, for injected is study Kiss ml allowed from over a A One the X. no clinical with by used control Restylane Europe, X was

throughout the the investigator patients mark, Evolysse of scheme effect. Slide the for long. Slide In the line XX% trial the summary, were correction At despite product, over less the patients. rights an results of both still of X-year twice rate duration more throughout a X. time, The aesthetic the to high lasts and improvement Europe filler the Evolysse at we lips the as to X. Looking global requiring are provide U.K. seems having and scores have themselves and now the

Lyft approval the and we We approved the Sculpt for the MDD is year Lyft, half already process. of MDR on under receive remain Smooth, track. under in the past note, European In Europe second this expect to U.S., in Of new approval lips process.

'XX and this followed completed first The just week. products, top [indiscernible] patient FDA XXXX. SELP study in plan the approval the this last PMA the the for Smooth in We present is to with results trial, this trial expect X the an and submit in through pivotal to lift, we anticipated pivotal halfway and approval its line U.S. summer XXXX.

and portfolio and Strength Evolysse, that, published Phase continues results Jeuveau-Duration recently David. demonstrating X to you, back weeks II its year. With in our duration it journal the turn profile, completed from with of lead extended peer-reviewed a study, Extra Moving this our be precision we to to expect I'll

David Moatazedi

I could proud period short of our head-to-head the rescale, superiority Rui. compared in points. you, Lyft particularly not Thank more statistical the accomplished at what study with R&D our be of has team time demonstrated filler which multiple time, to

stated, completed summer. now we last visit the smoother to with both file Lyft Rui in the FDA have the plans patient for with U.S., As this and

We track a by its positioned and the the for products scientists we're the remain highest-volume the end one as HA As expecting the Lift Mark fillers vaseline were the products become versatile This the all These be that U.S. the about reminder, in filler X product to develop filler of the year. be line. In of the on of launch next-generation most the will be fillers excited Evolysse our puts XXXX. potential of product line market-leading going CE to approved in and by differentiation global leading to us in filler products. Europe,

force transaction highly for and Our technology loyalty Jeuveau noting we synergies there our Nuceiva sales to was also new tremendous scale, are filler Evolus. and platform alongside worth this a can in achieve launch our in was leveraging customer focused cash innovative It's U.S. pay growing by the program our Europe. designed flagship for capital-efficient this rapidly and seasoned

cover the it turn to financials. will over Sandra, who I'll Now

Sandra Beaver

like by outstanding would finish for strong congratulating to quarter XXXX. the I team Evolus to and David. Thanks, begin the fourth

So fourth to significant would like I for review quarter. to achievements results, the highlight X the

achieved guidance the non-GAAP our in towards significant operating First, operations. profitability, are positive excluding profitability share issuance as we of defined the updated second, positive delivered cash milestones we income. And European agreement, These I XXXX. filler full sincerely quarter achievements to of for team, of from their fourth entire them thank and year be not for would possible the the dedication. Evolus These the and of XXXX without and would efforts work hard achieving like

quarter sales results. turning $XX the higher quarter Now the XX% fourth in announcement, to more the million, to in up revenue total XX% primarily than fourth our of was revenue and Consistent our January of was revenue volumes. XXXX, compared U.S. reported comprising for with driven what by with

$XXX the full XXXX $XXX.X in XX% million, year, increase our reported global top of full we of million. revenue end the For of revenue a over year and above guidance

while compared We rate in selling continue experience XX%. to the in pricing same the with approximately U.S. last remains strong our average price customer reorder XXXX, year, with at remaining period our stable

Our quarter margin, reported was gross excludes our the intangibles, the of fourth was gross XX.X%. adjusted and margin amortization XX.X%, for which

gross year, adjusted to full the the is intangibles, gross margin XX.X% gross margin excludes of reported XX.X%. of company was XX% and aligned amortization For was margin, guidance with which Adjusted XX%.

for Non-GAAP XXXX operating were to quarter operating third GAAP third of compared XXXX. fourth the expenses were quarter $XX.X million the in the for to quarter. $XX million in fourth million the $XX.X $XX.X compared Our expenses million quarter

GAAP quarter million. $XXX expense, Non-GAAP company depreciation million royalty fourth million revaluation to third quarter. the product million general operating license R&D to for issuance administrative expenses $XXX the in in guidance cost to compared compared XXXX selling, and the expenses in $XX $X.X range to $XXX.X in quarter $XXX.X fourth contingent in IP and European expenses million XXXX. million million were operating expenses sales, $XX.X XXXX with obligation were stock-based for share of expense for included were agreement. Operating non-GAAP amortization. Reported and $XXX.X compensation exclude and the Non-GAAP compared $XXX.X operating alignment the XXXX related of expenses of filler recorded Our to million million and the of

expenses This quarter, XXXX to in third of included year compensation million stock-based were compared XXXX. to million expenses in $XXX SG&A $X noncash million SG&A $X.X as full million in $XXX.X the quarter. compared the

third reported quarter. lowest loss the the million from non-GAAP delivered in fourth non-GAAP in Our $X $X.X quarter improvement quarter, the Evolus was $X.X in million to compared since loss operations inception. operating million With sequential our this fourth

expense, quarter issuance Non-GAAP the contingent the of from and a sustain and depreciation operating year royalty recorded fourth license positive for representing revaluation to European income share continued loss non-GAAP profitability. IPR&D full for million, $X.X as excludes compensation the stock-based progress the filler amortization. Excluding expense, was obligation operations

drawn cash ended million, year to had balance the under We line decrease tranche further $XX compared $XX.X progress activities million credit its excluding demonstrating operating fourth quarterly cash XXXX flow with sheet. continued continued throughout the record breakeven. XXXX. Turning to cash million. Net the XX, used in Pharmacon use the towards quarter $X.X September In at million quarterly $XX.X $X.X and of our sequential fourth generated the of low the we of a cash million from XXXX, of cash quarter,

filler nature our agreements, Given our liquidity we fully expect the of to the profitability continue capital-efficient to beyond. us fund and

I the to turn the in XX%. the for this operating non-GAAP for the XX% $XXX non-GAAP million. quarter the year year expenses for operating to positive $XXX to of Total guidance. million full Full to to and between fourth summarize million, XXXX Profitability, of Q&A, full revenue XXXX. range full million margins XX% equates and gross our we $XXX like XX% Before XXXX year Adjusted would defined in as of XXXX $XXX to year. growth

expense a year outstanding due not may quarter. within every of weighted of include million filler shares average full $X.X point XXXX XX achieved As [indiscernible] for onetime interest Other note, launch million. be and approximately to profitability expenses XXXX, quarterly of

in business on the of along we least growing the total million by our gains with XXXX, in markets growth driven target revenue international U.S. to Looking continued billion continue $X $XXX approximately neurotoxin compounded XXXX. beyond in XXXX, in to of fillers at share of and total addressable line market in a XXXX. operate of begins today, This equates in annual our to XX% from billion growing approximately $XX a contribution that

to to Now the let me Q&A. begin back turn the call operator

Operator

first Annabel comes Samimy from Stifel. Our Instructions] question with [Operator

Annabel Samimy

Congratulations on some interesting data.

close product So getting it launch we're looks to and of pretty line. steam the like Evolysse

you increase do And when launch secondarily, gain I thoughts before that planned the I type if on to implementing just was back you there. And to focus Evolysse And more. always independent want I into penetration that bundling broadening have of drove -- strategy of I queue. expect in accelerated accounts target guess any in are to initially any have color you want So traction? just was your looking these any keep in I on accounts. guess and wondering a guess we like this programs terms be And versus the some the I your can get you around I questions, or it understand few of more accounts So those sustainable? you on do deeply more you my reach penetrating I out? until

David Moatazedi

questions, the for thank Well, you Annabel.

start business, with I'll second. me our question then Let the current and address Evolysse

accounts in the half you of over front half. As the in far as increase the saw the accelerated back year, that it the

new of force each additional partnering we're the that with we're getting in our Evolus. further seeing And function number the accelerating well. of before in warm look into any think We I started that even of incentives as to you accounts trend saw don't expand a the standpoint, to market. interest you increasing If that back, the an it's just quarter, just XXXX, an demand have from that our indication sales

to pleased see really increase. we're that So

with in Now finished over XX,XXX customers. market purchasing a XXXX despite XX,XXX accounts all with that, we

as go footprint effort as continue be you coming still know, which years we an to build a significant to these our So the the anticipate with our around will we opportunity and expand practices we over continue have trust to country. wider

existing engaging our those existing also stratify earn as as what these at the a we have co-branded our on our were And certainly base. practices far in which media the deeper, force. initiative customers base customers more. is get an going program. customers from Evolux We sales growing They with was us our of healthy more customer well clip. do benefits our more activities within and did Now tier that that of observe call And tiers, as we based top attention

growing market then of significantly matter a broadly. As fact, clip faster at a the more

even for gives a that customers our has established us still share of opportunity confidence that So the very a growth. fact gains, in good lot in

kind which Evolysse, of addition that, I your that dovetails In bundling. to asked around is into question think you around

it that Jeuveau. more the purchase just benefits in that's is we've our what think that's to customers purchase that every us, up. co-brand as And portfolio. brand with more, do get reinvest company partner through back like brand I what the the helps that's grow we time pricing have these drive unique is helps But other over from of with our it We that own media. believe to and for done across we different you them we've to offering practice that, pricing, done awareness. into we space as our you do you practices, want forge helps type reinvestment the our for And also partnership

category. ahead market experience look as launching that a we of is have recognize one It's the needs the market. that Evolysse as in that And management a team. different different in lot So in we to are a clearly, is we filler

element brand with is to the to However, and build common their us. in in these grow partnership interest practices the

will an as what that our with of probably be going franchise we forward. we level across so I think pricing, media co-branded it's into might get anticipate early now. that to carries umbrella as the too far do And But detail

Annabel Samimy

a you share just share, sense Evolux have given Okay, has you the practices got a those more great. do -- if growth And practices in you've in do significant the that that for you broader increase within much market? the could market

David Moatazedi

going as commented share my remarks deeper achieved the achieved unit an account in that, quantify partially Yes. to practices. quarter, we penetration customer. We the due do to since believe by driven That's our existing share. we've that with that opening launch. achieved unit XX,XXX It's we XX% also the customers highest fourth and in we overall, hard shares a our to We across know what exactly

last around to to the XX,XXX The we sit existing market purchasing XX% exactly within were was where we hard it's are customers that gave Jeuveau. say overall we we XX% thought update So share.

have be I We an expect number time. don't this updated above you just give to to at that.

Operator

next comes Marc Leerink from question Partners. Our with Goodman

Unknown Analyst

is on Marc. This line for [indiscernible] the

XXXX contribution versus talk on what you and color growth values remind guidance, percentage assumption, the regarding the from discount sales can relative So botox. pricing in provide driver maybe about your us like to

Sandra Beaver

of Yes, the for so you thank course, question. much

As a it in relates accelerated XX%, we that significant guidance, great growth we see to our right? gave XXXX to sales XXXX million We to million. delivered continue at guidance opportunity as growth the half XXXX, at into leverage to $XXX with that $XXX back

the As from revenue we noted, majority performance of our came volumes.

to However, XXXX growth the we potentially in opportunity stability to driven see Jeuveau price The volume. and and of to continues price continue the our to Botox. between continue and be raise majority gap in by close

price U.S. an significantly underpenetrated But the also we're across sell accounts it's we the appropriate. to to to the it's available mentioned, us see by in market, David in new adding As within opportunity press whether accounts where currently or we continue

Operator

next Our question comes with Cantor Louise Chen Fitzgerald. from

Louise Chen

Congrats on the targets. all

So out profitable quarter? when are I tell then at ASP lastly, can be way seasonality you And in expect least about you, there? ask what into or Jeuveau? any you how then should just about XXXX, thinking we And think bridge? factoring in you your qualitatively for model wanted we there XXXX the guidance are And fourth quantify is us to how you to how

David Moatazedi

you XXXX. take pricing Okay. me let for Great. the part about the around first think how Louise,

think narrow our we're market we'll our just has as the to to the continue the seen volume. we've and on reassess only pricing how has competition, very the to value Sandra order to to ASP same. we I shift the more continue I customers, for leader. And launch, pricing versus in commented, do strong. continue focus up continue as our we And we our drive gone been and bringing to price product. this think more And can Since to we gap build favorably continue

and driven not it's this think As price. volume predominantly you year, about by

time. that's category, think you case entire and the are the us should for prices I but expect for frankly, up over that steady

Sandra Beaver

Louise, in outperformed And XXXX, think can other the the of end above here the it our filler license, fourth as I QX issuance achieved we of to share question frankly on imagine, well we quarter own European profitability excuse guidance. your related profitability, you here delivering as top to XXXX, me. our expectations relates have in excluding our

a you gave as we'll great XXXX, for revision QX where the us us guidance again XXXX. needed and to confident our build can of that profitability confidence are imagine, So achieve foundation for creates the to deliver that off we in we to

profitability, it think operating throughout continue assess year, we I we'll management. relates and have into to much how momentum to that going to disciplined As continue XXXX, the we expense but great have

that revised So enabled to give that us guidance. us

David Moatazedi

mirror year. quarter by be third that expecting the then followed we quarter expect the the And see where the think we I will you has been -- this that to of in period quarter COVID were of in. year, We're trends similar back And is second. seasonality strongest the weakest fairly predictable should the calendar the you market to season if fourth year. this out the generally, one it

Operator

And from BNP Ty comes with question Navann our Paribas. next

Navann Ty Dietschi

if U.S. guidance the from from curious and was Gel some includes I -- just competition in your Galderma. upcoming

David Moatazedi

Yes.

when month, As our you be in provided we know, we date. received their this earlier would Qgel they the were January, assumed We in FDA their PDUFA that this approval guidance that had neurotoxin XXXX. entering in of market aware for And placebo.

as that So guidance. far changes as nothing

see know, coming you new new And where half likely in performance our entrant the in market. of of had XXXX. course, late year of the And we'll entrant now, course, last you As despite back a year, we in accelerated growth a saw this and competitors. new there's well know the year look, around the This the for those [indiscernible] entrance to high-growth same market. the La is with launching product, of are plenty as placebo. And room continued we've Europe as Timo may markets. we in a time you Hugel, very in

I in meaningful think build we proposition believe market, that, will what's in we'll that continue our to unique and the growth and the drive value on is future.

Operator

Belanger Serge from with next & question Needham our comes Company. And

Serge Belanger

think additions average First number pretty environment one, first of volumes of forward? think what And color larger quarter, quarter, the than big or give the weeks secondly, part I we're I X fourth was then any terms can and account regarding sustainable a the going things like guess, is in that? so new of that the you number us that into the the Is first market XXXX. I like in for on

David Moatazedi

question to the year be We XXX we'd went Good XXX Sure. adds. assuming year, about into roughly the adding quarter. new a account last accounts

by accounts of frankly, numbers So require in the we new set don't per quarter. as of have brought field terms customers. We impressed that a that the new we equally, were number in

I number can't to of account So commit the adds.

it's dependent and deeper on coming interest or the level time the the spending their think of going them in with opportunity from that's just customers accounts. new front I territory of in

acquire the product, As profile you new we them we accounts, the but understand they may so can just training send we when unique recall, not in our as educate brand. well on precision of

takes media to a XX and benefits months generally new review also We through become co-branded meaningfully about and for Evolux, account our it productive.

is has each that Evolus cadence to we because the so And us experience. customer important that ensure want to

run a by them, to the steps add accounts to to limited lead continue that just new proper so as them ability customers. And we through but we'll believe, receive we're productive our

come that course, equally of at look us, to So the is volume of is in. to it accounts important that as

that through reported it, but trends year. a trends of you We very the acceleration, our call the We're from you last quarter observed revenue market. in into new the trends demand. we the had seeing carried what broader think in similar just healthy entered saw year, observed consumer not reported the, been back now we've it's half first I year, As they that of strong expected.

Sandra Beaver

So unusual. start Nothing a off good we it's to expected. a as good year,

Serge Belanger

one. last one Maybe

sales Regarding expected your about you've targets for and think I in U.S. previously $XXX million in XXXX, the between by Evolysse talked breakdown Jeuveau

$XXX maybe what contribution revenue to we about target. for should So just ex-U.S. talk expect million that

Sandra Beaver

to happy be will take I that. Serge,

Thomson franchise the to in So then come franchise remainder XX% U.S. million. at and range the we call where the we XX% million, $XXX have OEM, we of of to as from coming the the in look the expect from revenue both filler it, $XXX that

on in market. get And of got it's market market you to noted the OUS David by I that $XX $X.X that the is we've coverage about out as As call, mentioned, time XXXX. billion the a billion

So that opportunity us lots leaves still that number. of overperform to

that's long-range across clear that, that our size of low And our product lines. products our across comes confidence in these and well markets from the end guidance. the the -- of geographies opportunity in think and think it's we've I I very the the performance of opportunity the as as

Operator

Ear Mizuho our And Securities. question comes next from Uy with

Uy Ear

hitting Congrats profitability. non-GAAP on

you sort have sort see guess a either these of bit of guess sort could -- things of was I So the that see do the -- kind bruising been on is benefits you question you market in similarities changing is might for with see the kind I the -- wondering particular they're because that's millennials with similar elaborate products I in Just historically, types of of from how been maybe study, have swelling the guess, differences sort Restylane-L respect Lyft? safety they the notable. And using about of, kind if a talk can and/or curious Jeuveau the not also of to or sort second older -- of guys to I and any on of patients. it that similar of on

Rui Avelar

the first if them, you're the Restylane recall Evolysse The similar. rest looking when your AE product. look take profile, correctly, you of versus I at favorable at Uy. in the I'll terms they're if anything, -- actually AE the If pretty the question, -- trends, of

In seem Evolysse. terms pretty was favor as to AE, again, it an of the swelling, again, similar,

In to product the procedure, just of why have correct they one to pieces of like is. your this one What we've Or from feedback optimal other over into to correct get? is going correction time? consideration comment consistently to very don't what and to different, of the have is have seem The take words, consistently inject getting and swallowing the is done. terms the correct under reasons gotten you is to or we're you correct. swell that [indiscernible] which of product investigators is slightly you post you're to then product to that In

have swelling You any to don't consideration. additional into take

David Moatazedi

I the you're demographics we, right. then with injected as that getting far And think as are fillers,

neurotoxins. older skew on fillers bit First a overall average, than

coming for said, that as in in a are layer that go the filler being Now consumers younger deeper, you treatments lips.

And works And for that's to into an the so it younger generation up move way it's to the as older areas the then generally gateway its in lips generation. you other be where further seems treated cheeks, getting cheek their phone.

well answer full so do you which of portfolio as we And different that you're patient why just see treating varies, types. leaders market the have so as it a is products the is

a of forehead like that it considered Restylane meaning little used areas which of injected and Lyft areas it gross In often is nasolabial and feet the filler at also our that lips all product, the end, the first, look with in lift we a versatile. And versatile opportunity. we to the approved us think the get wear. in like -- at I the to a applies indicated is be is, way of product, unique A look like area the most other Glabellar which product, indication this like gives product these which lines, just also business is comments. The is we different, into filler not the the by outside Jeuveau and outside versatile, the is Glabellar areas. some expect are may patient same the fillers sellers and folds including the

in brands what our how there's So segmentation. of we'll the we consumer the one-to-one position actually the need toxin the nearly lot between users. overlap to a and customers each I end, about these means think injecting fillers with But more our for that is learn

customers best to with that. existing an gives it our so to And us how learn opportunity do

Uy Ear

sort of deeper perhaps spas, into Do guess, wider, the I maybe of the you guess? outside foresee going or I

David Moatazedi

Yes.

business largest neurotoxins customers, So customer does believe followed group single the and spots our these. the our said for your to that medical of we've largest channel And the overall that category plastics. today, the XX,XXX point, spot that medical in are we by derms is set

on than plastics. medical use, derms Tend to do and spa also know treatment. per We average, filler a little bit more

will our So I expansion this customers. that believe accelerate new into do

time. from be heard another us with be And driver for that We are growth going a the have it the of about enables over starts catalyst at thinking is that's Jeuveau But with them. to to that establishing believe we do a working filler that in utilization new filler customers that, may more addition translate benefits on to and that as We of Jeuveau filler believe here line will value To products of the over product. clinical the of see the the the we're benefits they a data that other that, relative well. extent use. that lot to those practices successful seeing

Operator

question H.C. from And our Wainright. next comes with Douglas Tsao

Douglas Tsao

for add you just the the on David, adding -- maybe there's you think Evolysse this that maybe just think Congrats following progress. accounts to Jeuveau, are go when still opportunity fillers, or last to about some that talk up deeper do to you into on their to question, new the opportunity on access discounts about might but to fillers. using perhaps accounts competitor sort get of the products of use be more continuing

David Moatazedi

I that they is a across hands users using But reality of it from to we into Evolysse product. or the the recognize reps Look, firsthand existing get would simple range have answer of I very the the customers loyal that other. their the love cover to that one say are sales where hear deployed Yes. U.S. start and our is

expect we the access, want our have to existing will So and they'll that product. trial customers want to

customers I'm the data technology stage field, and are Evolysse I'm considering now itself with the hand, to partnering doing start to as are other compelling out the that of on reasons in and and the us some in On Jeuveau talking that.

us their it's unique It's we've with XX% value practice customers us believe the in product command be continue not look, a And of do do of to a that because on determine with new I the partnered as have is But reflects going a a their as believe quality contributor. been growth. market a a to and in launches that in we mix. system, company the this extent which philosophically for care. And invest demonstrate going with those that believe I aligned that end, that to end do share we're with introduce hard advantages. be they in big So product practices X years. way significant would we're can they to unit year, We to differentiated we their we as the gives high-quality that aligned filler we these be

I other strategy. a have and do you lot tell a we think through I company commercialization we There's products. dedicated has existing to this. working team our product of can XXX% inside lot be fillers, that, believe with between so we practices It have this different. won't And be will about are potential. It exciting. do the It's a excited And like our now to commercialization. this

looking And the phase so year. launch this next this to being don't of expect we're the we forward to company. That fillers said,

deliver reflects Jeuveau And we we market in this product-focused can that company we've single so that our on year. our focus is a practices entirely as believe demonstrated stand-alone guidance and with here what in the the growth

Douglas Tsao

costs with filler the talked And think you just force? this launch, other then spend. when incremental of and sales a Sandra expect launch, expenses it. I point the Do about be about but I some promotion for year, is follow-up, associated that as to going you Great. think isn't to Okay. just you which your size talk the increase Or when around mostly the higher hear about

David Moatazedi

Yes.

to investment a I pocket we this, provide we closer is meaning think of to more we'll don't of be little a The as get anticipate sales X reality force significant granularity in position a a expand. commercialization. it in large

the footprint. and us to a field digital size standpoint this of I developed our operational efficient us think an from we reach diverse makes very allows have that very maximize our we've organization, despite footprint

to lean months. And been X going for opportunistically some We've expect on there continue that you to marginal increase heavily now force. do multiple continued every we would our capabilities. that, as I so would doing be sales to we've we're add our to consistently years. but in X to digital force, sales the know,

that half As the hit X a year. of just quarter. field in did of fourth in that in saw the January. OpEx back in matter of we reflected that fact, cost last expanding the our -- team the you was

comes growth, co-branded the we been important expand to but now, our And now growth how we to way expect is education Balaji market what's share in to these of not that's continue different footprint Prasad X and closer to that only for Balaji. we're you. us get Have now? being next media And impacts very on done. helping it's been I investment It are have we from do question make. quarters in is to shares the Our we'll launch This get on So change with market bring a Shaon parts mix as DAXI. filler SPX price coming. And expect are way those Java? for has to you how of even changed that similar traditionally the pricing its anticipation the Jeuveau from can of we'll And continue you things that and any that of creative products uptake think Willacy evaluating in you that seen strategy that Barclays. with course, BOTOX

Douglas Tsao

Sure. Thanks for the question.

David Moatazedi

along strategy you launch. shift on fourth the is significant The your was early entrant, our first focus. the latest proposition new made And deliver think pricing, I quarter saw market out, full Look, said establish the every you entrant in their pointed the a with competitor in we to quarter, that what doesn't a the that value to all try -- as in you that you of market. pricing change new and the competitor that with I saw the think, new growth entrance I we think

coming I with values. And that think that to a from but that competitors against to applies focus And to text-based not don't generation of brand the their practices, consumers to believe is for that generation. built quarter. And it's Everything we to with younger are continue and a not a for that success beauty the from looking played we co-branded by opportunity, our driven up younger maintain partner brand brand media that the we in competitors category by for the that we've aligns our this is our as millennials. and communicate the with built see the that new way which prove And that's this program our and them, real been ground just seriously to mean driven try it prepared also prior our doesn't we're competitors not to means it to that in. have take the to on applies and this out that we And advertise vision. is loyalty ability in we've market. dynamics able fourth execute competitive we

execution the see we'll side. be we we change really to done, the We or anticipate We're promotional any expect and pricing on team do continue continue case going the anything don't that to has our of forward. to strategy strategy, our really strong execution what to them. proud from

Operator

all and Chief I like over to Thank At time, the David back your would to you for Moatazedi, Executive turn comments. this call President questions. for Officer, closing David?

David Moatazedi

Thank you.

of well the strong innovative our execution to strive of our revenue drive portfolio Evolysse's we've tenacity proud and and expand the of flagship in and deliver will loyalty months, our of at put expansion year we of the U.S. out strength internationally. the our toxin share built The this XX with over ourselves brand the us goal the built and growth infrastructure The the at to increase combination on footprint as we million. I'm way differentiate continued marketplace. $XXX least XXXX achieving Esteem culture our to As growth. We to and next Evolus our in Evolus growing of our meaningful look on we've look team.

We results the XXXX competitive products, of strategy the our millennials, as a and the segment brand, year the moat talks expect unique business only company. targeting in users competitors demonstrate fastest-growing of the the market. The and of digital to and increasing proven outpace the of built aesthetics infrastructure we've fourth momentum our from strong beauty focused our effectiveness business full model quarter and cash-pay with

for in Leerink joining Miami. seeing today. week, the both participate next will Conferences Thank Finally, you us we forward in and there. Barclays you all to look We

Operator

the you. We this concludes. call. Thank end the of reached And

your disconnect conference. you. lines. concludes now today's may You Thank This

Evolus (EOLS) 7 Mar 242023 Q4 Earnings call transcript