EOLS - Earnings call transcript Q2 2024

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Operator

Good afternoon, everyone, and thank you for standing by. Welcome to Evolus' Second Quarter 2021 Earnings Conference Call.

As a reminder, today's conference is being recorded and webcast live. All participants are in a listen-only mode. After the speakers' remarks, there will be a question-and-answer session.

to Vice conference Global President and Communications. like host, to Investor now Corporate Sagherian, Nareg and would turn over the your Relations I Head of Please ahead. go

Nareg Sagherian

and quarter XXXX results. on operator, Thank joining financial to review second to us you, Evolus' today's welcome call everyone

evolus.com. Our quarter at release on our is second now press website XXXX

also the With me Beaver, President and Financial portion Rui Officer. Moatazedi, of Chief call. Medical Head Executive Officer for Chief today and are with R&D, the of is Avelar, Q&A David Sandra Officer; us Chief and

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

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

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

today's of available conclusion website be the a at call, will replay our Following on evolus.com.

that, David Moatazedi. With our turn to over call I'll CEO, the

David Moatazedi

you, you XXXX for our Thank conference quarter on second earnings Thank call. afternoon, Good joining Nareg. everyone. us

very of a the flagship prepare product and continued we've market have time as our gains we now portfolio. this on is completed for expand first This yearâ€™s Evolus to XXXX exciting share our with Jeuveau, half focus while demonstrated

We are earlier quarter business, incredibly our with clearly second which announced pleased reflected our results in continued in the momentum is today.

with share important milestone, to In the XX%. increased achieved our of market We investing Jeuveau's profitability, the accomplished product we second while line. an and filler quarter, in this a launch single

operating de- results, exceptional is our a value high and unique at focus delivering proposition structure Our and are level.

and full and to year. continued over updated is $XXX at have built the the estimated prior reported growth several give guidance Our year XX% our This rates year the second XXXX The to between of million guidance $XX.X strength the of end revenue growth execution quarter XX% during our revenue of our the first us net combination and the the of of the raise $XXX million the represents top to in momentum confidence above degrees we half category. magnitude equates growth for million.

of the brand model. the a market, the is this year the strength grow its signaling Importantly, and XX% our on Jeuveau that fifth business brand unique to at of over continues in quality

with build customers. to loyalty continue We and our trust

approach a We company a unique dedicated to practices We a helping aesthetic cash-pay generation and on brand. differentiated beauty only and remain have focused performance the building the as grow. position toxin younger

market. is in the brings of to since accounts of approaching by growth customers XXX in continued XX,XXX, our total the purchasing increasing which approximately purchasing the in evident is differentiation This launch XX% number quarter. penetration Our new

also Our year-end. to X loyalty and million program the Evolus track by program thriving consumers consumer is in surpass on

our strength with underlying Internally, the we our the part novel dermal commercialization just line. transformative of are are story. starts of preparing filler XXXX. of and strategic year focus our preparation in business This The for a

submitted to approval Evolysse premarket U.S. regulatory application in track Lift and XXXX. In Europe, products June, approvals the for our the remain we for FDA for later -- this dermal filler launch international year, and for we the Estyme In Smooth. anticipated on Evolysse and are

Investor our are September. Our we commercialization more details will well plans share underway, Day and at in

to progress with significant continue Nuceiva. make we Internationally,

footprint while We with continue on and commercially business deeper in Germany our launching expand global by in a focus Spain to broadening Italy our penetration Australia. U.K., and international the

all we these launches, to With guidance. needed markets our recent the are in now deliver major XXXX operating

our novel well-positioned keep market entering dermal collectively our efforts will remains capturing are and are at pace clinical Evolysse. towards prepare line, actively we $XXX to to positioning consumers strong, XXXX. Evolysse we toxin and allow target recognition, from category. shift growing high Jeuveau's the and us by us filler the brand integrate profile million demand benefit well-positioned new continue to Jeuveau long-term to revenue the These of performance while brand. on least for This satisfaction The

strategy sharing Our differentiated forward us look to continues apart, go-to-market to more updates I we as set progress. and

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

Sandra Beaver

of results Evolus earlier our to delivering in above-market full achieve QX us management expenses congratulate meaningful I cash and towards would on above-market X the for achieving anticipated. growth operating another represent guidance year of than like sales a enabled that XXXX and XXXX, generation. step These prudent Thank David. our quarter profitability you, profitability team to quarters positive

this the $XX.X net in XXXX. Sales quarter the more of second for to revenues global toxin approximately customer contribution our were continue revenue price was will primarily increase our rate revenue U.S., remains International strong, were the comprised and in results, the driven the volumes. than XX% where quarter. U.S. our U.S. compared of outpace international as to reorder quarter second to million, XX% Turning growth higher revenues up XX%, sales will by net In

our guidance. second which and the XX.X%, the of and of margin, excludes year gross full above end quarter adjusted was top was margin intangibles, the our amortization gross XX.X% Our reported for

$XX.X for operating second the million in million to for quarter the $XX.X quarter. were million in expenses operating quarter. compared the $XX.X $XX.X prior expenses were GAAP to Our quarter the million Non-GAAP second first compared

expenses general in for second and to quarter. $XX.X selling, recorded Reported quarter were first administrative the million the million compared $XX.X

quarter, $X.X This noncash of compensation to stock-based first SG&A quarter. million in expenses included the million $X.X compared

to a modest continue trend quarter, expenses we the we Operating saw filler as launch. expect XXXX this for prepare increase a

quarters the For the X in ahead first of quarter. time expectations, second achieved profitability and we our

represents income from operations income path second improvement the compared sequential profitability non-GAAP $X.X a operating Our the was and operations progress to represents quarter our cash towards of in year million full in and million. non-GAAP meaningful $X positive generation. on QX as million continued for XXXX non-GAAP from our $X.X This loss

expected is to As a Considering decrease, as not revenue this we seasonally seasonal reminder, revenue the it compared QX. be QX will profitable in likely has lower third quarter.

income contingent expense, obligation Both of expenses royalty and amortization. depreciation exclude the stock-based compensation and non-GAAP and operating operating revaluation non-GAAP

March ended with efficient the million with cash. quarter XX, stock we a million to The had with million performance, net use of million. offering XXXX. second at includes in Turning We XXXX. $X.X our cash balance be cash cash the underwritten balance $X.X single-digit cash to March remaining sheet, low We our second of $XX.X with quarter our burn operating proceeds the compared continue of use common million consistent $XX of to $XX in from

Net $X.X activities QX which cash $X.X was to improved operating as used XXXX. for million, compared million

of to repayment cash $XXX our We fund facility fully generation debt and expect the and us that our positive existing in XXXX liquidity will million XXXX.

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

guidance. in and balance total from to net $XXX million context from year-to-date raised XX% summarize to $XXX revenues markets. the international I'd U.S. performance, mind, sales between have our million, that on come will our which With like in we strong of the our the over Based and

assumes industry seasonality. typical Our quarterly revenue

be to of at it our that XX%. addition, half the gross margin adjusted first XX% range. to Non-GAAP increase operating rates, growth expect to the end profit $XXX $XXX primarily range, half million and worth expense second growth between guidance we the million. period, top is driven of exceed expense expect revenue we and range rates guidance In is XXXX operating compare noting in the our guidance by by Driven in

is It XXXX, the not We year XXXX worth on expect the a every income to within and the that, fourth filler sustained consolidated the to for profitability achieve of quarter full launch. XXXX. non-GAAP positive basis due noting may be quarter year operating

its can revenue Finally, reach total million least the net projects at XXXX. by company $XXX

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

Operator

Thank you.

conducting We will while now questions. Instructions] moment, One poll [Operator session. question-and-answer we a please, for be

Padovano from with Our Stifel. Jack comes first question

Jack Padovano

Jack for is on This Annabel.

did play as So companies filler AbbVie field? the how for little wasn't see quite the you this I but that as know aesthetics seeing beside specifically are it much a recovery has of in recently. in state thorn Because anticipated. some there, been

seeing have market what you launch? state approach of do yet? as affairs that And a be So pulse on will you you

David Moatazedi

growth you as always hard look as What we're know, procedural we -- at different seeing reporting. out to parse companies it's

are companies that are companies mature. their and more into have You newer launch that

category, market a that year that relative some share lower the within Clearly, seeing market growing historical there but to the shifts is the seen. Overall, at a filler that we've happening also a we're are full growing. on trends is rate

low And the filler. market rate looking do coming market their achieving growth and in and benefiting filler wrapping add a see on optimal this weight U.S. depressed a patients So in the the for from this anticipate of to the do boom around growth GLPs we to year. on mid-single-digit rate filler of on we that sort

we multiple have quarters. points to trends, market in that benefit We start coming should that GLP the the that and should see data the from confirm

entering. So the we market feel about very we're good

is Keep in mind, a category. billion $X.X the filler market

And the way the expect that families Evolysse this our of fillers single high XX% We in clearly the to that we've U.S. market in given data grow they're there's in to of guidance in to it's very the the profile with differentiated in the number come is digits product be X-year And to excited meetings the product X we're in to and of of fillers. board market-leading We course, a over and XXXX, and we tremendous value. we've roughly think of that there'll advisers shared that a market, relative manufactured, amount sense the mid shared our through our putting where really one it will it clinical with line into a the of bringing. it's platform, be research. a advisory XX% command horizon going favorable outlook. cash-pay of that it And see Evolysse

to that forward sharing on Investor look upcoming we'll our at Day. color So more

Jack Padovano

just more, then if Great. I And one may.

toxin have you expect any to shift as programs additional the you're in Or more are it seeing or other crowded? your the for a programs, be promotional On that the adapt do whether there, side, you competitor programs strategies need words, get bit any that field little there out starts in loyalty to to to? sense marketing

David Moatazedi

practices a a continue the or of into it's more and for a believe you're about are areas growth focus. in to that think we've that growing program as to build co-branded that you its the our continuing and And fifth loyalty is disciplined, I which clip, a remain continuing had way co-branded a leaned media practices. heavily rewards, which these advantage in see create marketing effectively do the the had team year with market. lot credit of us scale why experience maintain stayed they the and and media to of that's the of We sense we discipline both very in business on continued for XX%, that, and rate our at year. company. strategy, to really to growing consumer a healthy cash-pay presence now that's It's operating strategic enabled them, full engage whether the because our we our the really, we Yes, our we've at at level, year different is last

point own relates promotions out, their theyâ€™ve lot look, the Jeuveau we market. category, but it market, quarter. changes you there's manufacturer promotions and how the the bring each in a has markets, introduced As the these we've it Every that that to into that of approached way set to nothing as

Jack Padovano

the Congrats on quarter.

Operator

Marc Partners. Our next question from with comes Leerink Goodman

Madhumita Yennawar

line Marc. the on Madhu is This for

bit Thanks. about little lines products other what's Just filler the comparing of you talk the piggybacking market thinking a sort there? from launching out could how and about once and you're talking about more that, they're differentiation of your off to those fillers and already them on

David Moatazedi

it. briefly on Sure. Madhu, I'll touch

heated I Day. acid the But preserves the technology of is that hyaluronic acids expect and on natural the manufacturers you a a strand. available think in clearly, there's is scientific in Every leading And freezing-cold lot the a word manufactured Rui at can highlights section from of currently and in upcoming And manufacturing Investor market. HA color world of the aesthetics process, our more investor is that natural one this the hyaluronic clearly, one deck the first significant the this other have product under our differentiation. developed temperatures. term the

And of technology in credibility from that trials our we the of and data. now course, So supports shared the then, saw the we've that there's science behind the it. lot in science a data clinical the

I So under face It's where the to clear we're innings. in we development and and in line we'll of be for sharing story seeing clinical areas know, as the data have product designed What get commercialization. each more the area, this different you still we think a early of closer multiple was is, products specifically clinical the terms as data.

Operator

from comes with question next Navann Our BNP. Ty

Navann Ty Dietschi

], of you if updates discuss and to [ what the Cooperâ€™s timing have appointment CEO you any ] QMXXXX, Flexibo Evolus? Board Galderma And can to the please? on it First, bring will current and also [ Gugel

David Moatazedi

which I'll course, addition of obviously One with his a search, did track clearly in I role a Al building selective he's background the White the as for number very about start we a who of of therapeutic as role, Cooper CEO White. way of in success The played having he's reasons. is question. the of now, -- areas, into long significant tremendous tell a but with now, he moved about and been have a stood Cooper onto that was lot out which you faced we portfolio, Al important out our Navann, Companies, look expansion, that built of company. for has number were the same the as at has as brought we Al And that geographic moved I'd a his profitability, for grown. elements Look, we building to cover Thanks, And and Board. record us

of us table around as And entering this the growth. so having his experience our is a company invaluable stage next for

And And so to story. enjoyed had contribute spent then help growth actually to the a for I've do been this the I our he's I've to the first and call earlier really time we've with market see knows time. Board we He Al. know also excited week the story. well. very future on And what excited aesthetic him he's able about

been it's to So great have Al.

the Europe, prepared front, competitive when sometime ] year. we're announced At in half product received the [ back aware most it this this the the [ point, commercialize that and you saw, they ] recently we're they the On plan Latibo as They year. Flexibo U.S. a enters well you with in approval U.S. the know, as partner and to earlier of as dimensions in and competing of the enter We'll market. brand be the as of

very remind since you healthy entrants to just a grow the entered at had launched, market that I'll have that continues we we've And as clip.

a Our bit. by the entrant. we If growth latest anything, wasn't impacted accelerated

increases the I proposition in clearly entrants. think space. And value only this with defined our focus is on toxins new

market the believe not they the they or them Galderma, next but refile CRL plan the towards so a on next of ] which or the that's which sometime [ did clear. the for year to end could do following. whether And put Itâ€™s year, Latibo entrants, receive I liquid,

continued which it think growth, focus is ultimately I significant. this leads to on category and

backdrop quarter, there's just the And very to done of just in themselves as for all end, consumer of new have market out of that younger competitive the an was reported the they growth significant lot in we've carve think player opportunity it as In speaks and consumers. nice can growth this in And this ahead this despite positive we comes successfully that see, to a us. players increasing environment. the generation space an low penetration in, the I

Navann Ty Dietschi

helpful. age can you breakdown is Actually, and Do very by one? a injectables range? of Is add I And share recent users, that's use of Millennials have Z facial it increasing? the Gen

David Moatazedi

consumers, patient the can't so at majority a base over and that answer or loyalty when percentage million we look the Millennials -- the and what terms Yes, I of question our base, have you as know, consumer our younger. for Millennial is sizable category time. this XX% X of we But in and it's patients at around approaching program, represents. are younger or

we So market, for worked. we and it's pleased to to that space, we're over-index this the been They really generation to on and that get incredibly likely a view It's driver product beauty to capitalize be is as think demographic. younger continues younger shift movement. the we're We treatment, our this do focus, relative and believe more younger treated. growth well-positioned with the towards overall the that it

Operator

poll while [Operator moment please One questions. Instructions] we for

with comes Uy question Mizuho next Our Securities. Ear from

Unknown Analyst

Uy. just about the for is one of fillers. Charles This had kind question on I

believe So to those they workhorse, better to ex-U.S. those the guess said or of be like would the would of filler I of ] Lift kind in U.S., over that a â€“ kind take the I you sense the filler the be -- I'm curious Lift trying kind fillers ex-U.S.? of get So dynamics. was would be would workhorse. I just [ lips were And also how just

David Moatazedi

of U.S. product when dynamics in the do introduce clearly, areas choices into than Europe United lips. areas in like the actually in of like here mind, of like the are The we'll believe the in the the ] even regardless abroad the we use, similar. But But cheeks [ maybe Lift that the than which lower. There's States use getting are are that the filler areas keep here in there volumes high U.S. Charles. quite highest an end, cheeks and But more the going nazolaviafolls patients are the are workhorse in as question, the areas are you're it great will they be they're like percentage market when a and the cheeks of in you're lower lips, area though the in. obviously That's the are line in in treating

we'll think the of give around I Investor the Day. real [ during We So product the from growth of the category lot different in lot well you impact market we've of a color them around of a and going the forward, more as as learned utility world. questions GLPs what received our a ] the

September. You a can get around more in to expect that color lot

Unknown Analyst

quarter. on Congrats the

Operator

Our Serge Needham next & comes question from with Company. Belanger

Serge Belanger

I in of especially aesthetic noticed just procedure across last U.S. toxins, guess David. Both curious market regarding both have the you the both those fillers Iâ€™m of reported what the softness -- growth and quarter of volumes? and the terms if those volumes. of first one reported kind large second bellwethers over some in the for week -- you've

the Both them some PMA or just radio have you launch? process of you second And XXXX now until can expect when way along approval remind we should there'll before silence secondly, approval be a expect then, the here, process? updates Is half XX-month And this of the been filed. and the for us fillers?

David Moatazedi

the one. take Rui Great. second and moment, a I'll to in question just your I'll first take ask

very board seeing category. it's across is messaging a What's that interesting the is on the We're resilient growth. healthy toxins

even seeing facilities lot these space, having continues almost same Theyâ€™re toxins. that The and movement from of persist. growth healthy a have for hear expansion continue heard in softness players And And clearly the to you market, seen We've all $XXX multiple as planning with is backdrop Theyâ€™re very to now there's procedures, for of we spent this we're reality all time the years. this groups were think catalyst this to of though heard and that a the in thing. bigger The the it that of is, we've sort younger this plan. continuing meaningful market. the are expand there I affordable. are as in of X market around practices with far growing. to generation that $XXX their is it

business. much we're volume consistency procedural level next It the fillers historicals of the have and expect market benefit terms and we but growing, hearing in relative potentially to of we that to continues fairly think I as what year. as corner rates on as it not remain to the depressed had have consistently, healthy same turn growth as and the around believe, start is been from to into toxins, wrap use we GLP year-to-date, a

about. So a the for the launching the that's when And weight-loss from benefit be they going to market backdrop healthy we're consumers going achieve opens and our timing door launch that in for into one to filler. for environment a think We treatment. that we'll excited optimal weight, continue of more

I'll over Rui bit the FDA little about turn to time to the and a line. talk it

Rui Avelar

Thank Sure. you.

about industry dealing drugs PDUFA back give and and what specific a a happens and FDA time they we devices line. a to all time a hear year When the is PDUFA about fee drug, pays gets you is user with line. about you you're de- question hear that and one. PDUFA then Your great versus a date And you

process, very quote-unquote, the respond. "XXX-day work, is back they called is and different. Medical and happens drug. from then clock". that the have a, they what's different And Fee clock, the way MDUFA. what There it's they And and date process given, questions Modernization basically the stop And is PMA they ask is follow And User no a Act. works you PDUFA Device forth you that's that's that during

usually we said while a technology, that, it we'd or It's a of be the uncommon into take new year because is it and a half and new done. expect we've such, that conservatively this it to for can facilities to are back as in visits. get approval, these XXXX, not consideration for they're And So why audits longer. take that's

we your question approval. a announce absolutely you're right. And rule will of then part We your of thumb, when we will filed we've we is -- and then the other get when -- as announce

Operator

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

David Moatazedi

these you. It's moment and Evolus, exciting time take dedication Thank our milestones. execution has Evolus an quarter. has ahead difference been hard we unique a continued in an above-market achieving exceptional acknowledge team performance in revenue incredibly I to and the at want market work instrumental second showcasing the achieving the and in ex- quarter, the to bring expectations, the marked innovator to this by profitability record of Their as by industry.

to continues build Jeuveau, product, strategic successfully show expanded our quarter initiatives demand, and maintain momentum. strong from flagship results and ability our this customer have The base. consistently our to Our drive

As evolve this single to expand product from multiproduct a we leadership to position category. in company, our a we expect

actively new well are the These into for process, near-term continue filings approval enable outpace to preparing products. we U.S. EU Evolus market. and launch the a the filler the With will XXXX to of milestones

quarter achieve gain track on share. are strategy in market to the remain we ahead, fourth Looking in confident continue to XXXX and profitability our to of

in expense least of to performance, our will Our profitability operating at goal by discipline commitment million $XXX sustained and drive to XXXX. while investments capital-efficient financial achieving us revenue long-term

our and leading customers dedicated are confidence and shareholders. are building and to performance-driven a the grateful company continued of We sustainable, for support

XX for City. our forward September joining New looking and you Investor at We're for on today to to you seeing Evolus. your York commitment us Day ongoing Thank in

Operator

Thank you. today's This call. concludes

now your may You disconnect lines.

Evolus (EOLS) 31 Jul 242024 Q2 Earnings call transcript