Group 1 - The article discusses the importance of staying updated on stocks in the biotech, pharma, and healthcare sectors, highlighting the potential for investment opportunities driven by key trends and catalysts [1] - Evolus (NASDAQ: EOLS) has been previously covered with a "Buy" recommendation issued in March 2024, which has been reiterated in a more recent note [1] - The investing group Haggerston BioHealth provides insights for both novice and experienced biotech investors, including product sales forecasts, integrated financial statements, and market analysis [1] Group 2 - The author, Edmund Ingham, has over 5 years of experience in covering biotech, healthcare, and pharma, having prepared detailed reports on more than 1,000 companies [1]

Financial Performance and Goals - Evolus aims to achieve over 20% non-GAAP operating income with at least $700 million in revenue by 2028[10] - The company is targeting $700 million in global sales by 2028, representing a 28% CAGR from 2023[20] - Evolus expects to launch Evolysse and gain approval within the next 12 months[10] - The company's revenue guidance for 2024 is between $260 million and $270 million[21] Market and Product Expansion - The total addressable market for injectables is projected to reach $10 billion by 2028[20] - Evolus plans to expand internationally to achieve $100 million in international revenue by 2028[23] - The company has filed for filler approval with a launch planned in the second half of 2025[23] Clinical Study Results - In a Phase III study, Jeuveau demonstrated non-inferiority to Botox, with responder rates of 87.2% for Jeuveau and 82.8% for Botox at day 30[38] - A post-hoc analysis of a Phase III clinical study showed comparable results between Jeuveau and Botox in improving glabellar line scale and subject satisfaction[44, 48] Evolysse Dermal Fillers - US NLF pivotal study results for Evolysse Form vs Restylane-L showed non-inferiority at 6 months[120] - US NLF pivotal study results for Evolysse Smooth vs Restylane-L also met the primary endpoint of non-inferiority at 6 months[128]

Market and Growth - The total addressable market expands by 78% with the addition of injectable HA gel portfolio[16] - The neurotoxin market is growing to $6 billion in 2028, with a 13% CAGR from 2023[21] - The fillers market is growing to approximately $4 billion in 2028, with a 10% CAGR from 2023[21] - Evolus International is expected to achieve $100 million in 2028[23] Financial Performance and Projections - Evolus expects total net revenues for 2025 to be between $345 million and $355 million[28,112] - Q4 2024 net revenue reached $79 million, a 30% year-over-year increase[106] - The company projects at least $700 million total net revenue by 2028[113,115] - The company projects a non-GAAP operating income margin of at least 20% by 2028[113,115] Product and Strategy - Jeuveau's share of the toxin market has grown from 4% in 2019 to 13% in 2024[19] - 70% of toxin consumers also use a dermal filler[71] - Evolus Rewards program has approximately 1.1 million total enrollments[59,107]

Core Insights - Evolus, Inc. reported a quarterly loss of $0.18 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.10, marking an earnings surprise of -80% [1] - The company's revenues for the quarter ended March 2025 were $68.52 million, missing the Zacks Consensus Estimate by 4.83%, but showing an increase from $59.33 million year-over-year [2] - Evolus has not surpassed consensus EPS estimates over the last four quarters and has only topped revenue estimates once in that same period [2] Company Performance - Evolus shares have increased by approximately 5.2% since the beginning of the year, contrasting with a -4.7% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $82.86 million, and for the current fiscal year, it is -$0.01 on revenues of $351.43 million [7] Earnings Outlook - The estimate revisions trend for Evolus is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] - The outlook for the Medical - Products industry, to which Evolus belongs, is in the bottom 28% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Data and Key Metrics Changes - Evolus reported global net revenue of $68.5 million for Q1 2025, representing a 15.5% increase compared to Q1 2024, supported by a strong commercial engine [6][15][12] - The company achieved a gross margin of 68.1% and an adjusted gross margin of 69.2% for the first quarter [18] - Non-GAAP operating loss for Q1 was $500,000, an improvement from a loss of $900,000 in Q1 2024, with expectations of achieving profitability in Q4 2025 [21][28] Business Line Data and Key Metrics Changes - Product revenue accounted for approximately 94% of total sales, with a customer reorder rate of about 70% [15] - The company added 675 new purchasing accounts, bringing the total to over 16,000, indicating strong market penetration [7] - The loyalty program saw over 220,000 redemptions, with 65% from existing consumers, highlighting high consumer satisfaction [8] Market Data and Key Metrics Changes - Evolus gained a 14% market share by the end of 2024, exceeding initial guidance, and continued to gain share in Q1 2025 [17] - International revenue contribution increased and is expected to outpace U.S. growth, validating the strong growth trajectory of the toxin business outside the U.S. [16] - The company reduced its toxin market growth expectation to low single digits for 2025, reflecting a more conservative outlook [6][17] Company Strategy and Development Direction - Evolus is transitioning into a multiproduct company with the launch of Evolisse, aiming to redefine the category and capture market share [8][11] - The company is focused on building long-term customer relationships and deepening its presence within existing accounts [11] - Evolus aims to achieve total net revenue of at least $700 million by 2028, with a compounded annual growth rate of 27% from 2024 [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging market environment while maintaining growth [14][12] - The early success of Evolisse is seen as a momentum builder, reinforcing growth across the portfolio [12] - Management reiterated full-year revenue guidance of $345 million to $355 million, projecting continued growth above 30% [27][28] Other Important Information - The company has taken proactive steps to strengthen its balance sheet through debt refinancing, reducing interest expenses and increasing cash generation [22][23] - Evolus is closely monitoring tariff impacts on its products, with limited exposure expected for 2025 [18][19] Q&A Session Summary Question: Market trends and demand changes - Management indicated that both macroeconomic factors and negative sentiment around the term "filler" are impacting demand, but they see an opportunity to revive the market segment [30][32] Question: Impact of AbbVie's loyalty program changes - Management acknowledged the impact of AbbVie's loyalty program changes on market dynamics but believes they continue to gain share despite this [44][46] Question: Confidence in 2025 revenue guidance - Management reiterated confidence in 2025 guidance due to accelerated share uptake despite slower market growth [54][56] Question: Early adopters of Evolisse - The initial adoption of Evolisse is primarily among existing customers, with high interest in trialing the product [65][66] Question: Seasonality and market softness - Management noted a consistent seasonal pattern but acknowledged slight slowing in new patient starts, impacting overall market dynamics [70][78]

Financial Data and Key Metrics Changes - Evolus reported global net revenue of $68.5 million for Q1 2025, representing a 15.5% increase compared to Q1 2024 [15][26] - The gross margin for Q1 was reported at 68.1%, with an adjusted gross margin of 69.2% [18] - Non-GAAP operating loss for Q1 was $500,000, an improvement from a loss of $900,000 in Q1 2024 [21] Business Line Data and Key Metrics Changes - Product revenue accounted for approximately 94% of total sales, with a customer reorder rate of about 70% [15][16] - The company added 675 new purchasing accounts, bringing the total to over 16,000 [7] - The repeat treatment rate for Jeuveau indicates strong consumer loyalty, with over 220,000 redemptions in the loyalty program, 65% from existing consumers [7] Market Data and Key Metrics Changes - Evolus gained a 14% market share by the end of 2024, which is 1% above the initial guidance for 2025 [17] - International revenue contribution is increasing and is expected to outpace U.S. growth [16] - The company has reduced its toxin market growth expectation to low single digits for 2025 [6][17] Company Strategy and Development Direction - Evolus is transitioning into a multiproduct company with the launch of Evolisse, aiming to redefine the market narrative around fillers [8][11] - The company is focused on building long-term customer relationships and deepening its presence within existing accounts [11] - Evolus is reaffirming its full-year revenue guidance of $345 million to $355 million, targeting over 30% growth for the sixth consecutive year [12][26] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious market environment but expressed confidence in the company's ability to capture market share and drive growth [6][12] - The early success of Evolisse is seen as a momentum builder for the company, reinforcing growth across its product portfolio [12] - Management remains optimistic about achieving at least $700 million in net revenue by 2028, with a target of 20% non-GAAP operating income margin [26][83] Other Important Information - The company has taken proactive steps to strengthen its balance sheet through debt refinancing, reducing interest expenses and increasing cash generation [14][22] - The impact of tariffs on the injectable hyaluronic acid gel is estimated to be less than $2 million for 2025, and the company has incorporated this into its planning [18][19] Q&A Session Summary Question: Market trends and demand changes - Management indicated that both macroeconomic factors and negative sentiment around the term "filler" are impacting demand, but they see an opportunity to revive the market segment with their new product [30][32] Question: Impact of AbbVie's loyalty program changes - Management acknowledged the impact of AbbVie's loyalty program changes on market dynamics but emphasized that they continue to gain market share despite these challenges [42][45] Question: Confidence in 2025 revenue guidance - Management reiterated confidence in the 2025 revenue guidance due to accelerated share uptake and strong performance in a challenging market [49][51] Question: Early adopters of Evolisse - The early adopters of Evolisse include existing customers, with a high interest in trialing the product, indicating strong initial feedback [58][59] Question: Seasonal market trends - Management noted a consistent seasonal pattern in the market, with Q4 typically being the strongest quarter, and they expect a bounce back in Q2 [62][65] Question: Broader market softness - Management reported slight slowing in new patient starts but noted that existing patients continue to engage with the product [71][73]

PART I - FINANCIAL INFORMATION [Condensed Consolidated Financial Statements](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited financial statements for Q1 2025, detailing Evolus's financial position, operational results, and cash flows [Financial Statements Overview](index=6&type=section&id=Financial%20Statements%20Overview) This overview presents the company's balance sheet, statement of operations, and cash flows for the quarter ended March 31, 2025 Condensed Consolidated Balance Sheet (as of March 31, 2025) | Metric | March 31, 2025 (Unaudited) ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $67.9 million | $87.0 million | | Total current assets | $131.7 million | $151.3 million | | Total assets | $213.4 million | $232.6 million | | **Liabilities & Equity** | | | | Total current liabilities | $56.2 million | $63.0 million | | Total liabilities | $220.0 million | $227.0 million | | Total stockholders' equity (deficit) | ($6.6 million) | $5.5 million | | Accumulated deficit | ($628.3 million) | ($609.4 million) | Condensed Consolidated Statement of Operations (Three Months Ended March 31) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Total net revenues | $68.5 million | $59.3 million | | Gross profit | $46.7 million | $40.5 million | | Loss from operations | ($15.2 million) | ($8.9 million) | | Net loss | ($18.9 million) | ($13.1 million) | | Net loss per share, basic and diluted | ($0.30) | ($0.22) | Condensed Consolidated Statement of Cash Flows (Three Months Ended March 31) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | ($15.6 million) | ($10.6 million) | | Net cash used in investing activities | ($1.9 million) | ($0.8 million) | | Net cash provided by (used in) financing activities | ($1.6 million) | $45.7 million | | Change in cash and cash equivalents | ($19.1 million) | $34.1 million | [Note 1. Business Overview and Liquidity](index=11&type=section&id=Note%201.%20Description%20of%20Business%20and%20Liquidity) Evolus, a beauty company, focuses on Jeuveau® and new HA fillers, maintaining sufficient liquidity despite recurring net losses - The company's main product is Jeuveau® (prabotulinumtoxinA-xvfs) It is expanding with the Evolysse™ line of HA fillers, launching two products in the U.S. in April 2025 and planning a European launch in the second half of 2025[31](index=31&type=chunk) - The company has a history of recurring net operating losses, recording a net loss of **$18.9 million** for the three months ended March 31, 2025, and had an accumulated deficit of **$628.3 million**[33](index=33&type=chunk) - In March 2024, a follow-on offering raised net proceeds of **$46.8 million** Management believes current capital is sufficient for the next 12 months, further supported by a new **$250 million** loan agreement with Pharmakon executed in May 2025[34](index=34&type=chunk)[36](index=36&type=chunk) [Note 7. Term Loans](index=24&type=section&id=Note%207.%20Term%20Loans) A new $250 million term loan agreement with Pharmakon, maturing in May 2030, enhances financial flexibility and reduces interest rates - On May 5, 2025, the company entered into an Amended and Restated Loan Agreement with Pharmakon, increasing its borrowing capacity to **$250 million**[126](index=126&type=chunk) - The new loan facility matures on May 5, 2030, and accrues interest at 3-month SOFR (with a 3.5% floor) plus 5.0% per annum, a reduction from the previous rate[126](index=126&type=chunk) - The initial **$150 million** tranche was drawn on May 5, 2025, which included refinancing the previous **$125 million** loan and providing **$23.4 million** in net proceeds from **$25 million** of incremental borrowings[126](index=126&type=chunk) [Note 9. Commitments and Contingencies](index=26&type=section&id=Note%209.%20Commitments%20and%20Contingencies) This section details significant future purchase and milestone payment obligations, alongside ongoing shareholder derivative litigation - The company must meet minimum annual purchase requirements under its agreements with Daewoong and Symatese to maintain exclusive distribution rights[133](index=133&type=chunk)[135](index=135&type=chunk) - Future milestone payments to Symatese are required, including up to **€12.1 million** for U.S. approvals (2025-2028) and **€3.1 million** for European approvals (triggered in October 2024)[136](index=136&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) - A shareholder derivative lawsuit filed in 2020 remains stayed The court dismissed a related securities class action in favor of the defendants in October 2024[141](index=141&type=chunk) [Note 10. Stockholders' Equity](index=28&type=section&id=Note%2010.%20Stockholders'%20Equity) This note outlines common stock outstanding, ATM offering program, equity incentive plans, and unrecognized stock-based compensation - In March 2024, the company completed a follow-on offering, issuing **3.554 million shares** and raising **$46.8 million** in net proceeds[34](index=34&type=chunk)[147](index=147&type=chunk) - An "at-the-market" (ATM) sales agreement is in place to sell up to **$50 million** of common stock, but no shares have been sold under this program to date[149](index=149&type=chunk) - As of March 31, 2025, total unrecognized stock-based compensation cost was **$56.7 million**, which is expected to be recognized over a weighted-average period of 2.6 years[165](index=165&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, operational performance, liquidity, and capital resources, noting revenue growth despite losses [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Q1 2025 saw net revenue growth driven by Jeuveau® sales, but increased SG&A led to a larger operating loss Results of Operations Comparison (in millions) | Metric | Q1 2025 ($) | Q1 2024 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Total Net Revenues | $68.5 | $59.3 | 15.5% | | Gross Profit | $46.7 | $40.5 | 15.3% | | Selling, general and administrative | $56.6 | $45.1 | 25.5% | | Loss from operations | ($15.2) | ($8.9) | 70.8% | | Net Loss | ($18.9) | ($13.1) | 44.3% | - The **$9.2 million** (**15.5%**) increase in net revenue was primarily attributed to higher sales volumes of Jeuveau®[175](index=175&type=chunk) - Selling, general and administrative (SG&A) expenses increased by **$11.5 million** (**25.5%**), mainly due to higher personnel costs related to commercial activities[177](index=177&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by recent financing and a new loan facility, despite historical losses and ongoing cash requirements - As of March 31, 2025, the company had **$67.9 million** in cash and cash equivalents and an accumulated deficit of **$628.3 million**[183](index=183&type=chunk)[184](index=184&type=chunk) - A follow-on offering in March 2024 provided net proceeds of **$46.8 million**, and an additional **$4.2 million** was raised in April 2024 from the exercise of underwriter options[185](index=185&type=chunk) - A new Amended and Restated Loan Agreement with Pharmakon was executed on May 5, 2025, providing access to up to **$250 million** in financing, extending maturity to 2030, and reducing the interest rate[187](index=187&type=chunk) - Material cash requirements include debt service, royalty payments on Jeuveau® net sales to the Evolus Founders (until Q2 2029) and Medytox (until Q3 2032), and milestone payments for the Evolysse™ products[188](index=188&type=chunk)[190](index=190&type=chunk)[205](index=205&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details market risks from interest rate and foreign currency fluctuations, with no material changes reported - The company's main market risks are from fluctuations in interest rates and foreign currency exchange rates[209](index=209&type=chunk) - No material changes in financial market risks were reported since the Annual Report for the year ended December 31, 2024[210](index=210&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were effective as of March 31, 2025, with no material changes to internal controls - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2025[211](index=211&type=chunk) - No material changes to the company's internal control over financial reporting were identified during the first quarter of 2025[213](index=213&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) This section details ongoing legal proceedings, including a stayed shareholder derivative lawsuit and a books and records demand - A shareholder derivative lawsuit filed in 2020 remains stayed A related federal securities class action was dismissed in the company's favor in October 2024, and the dismissal was not appealed[141](index=141&type=chunk) - The company received a demand to inspect its books and records in 2021 from a putative stockholder, with allegations similar to the derivative suit The outcome remains uncertain[142](index=142&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) This section outlines principal risks, including financial losses, intense competition, reliance on third parties, and intellectual property challenges [Business and Strategic Risks](index=45&type=section&id=Business%20and%20Strategic%20Risks) Key strategic risks include historical losses, intense competition, market adoption uncertainty, and cybersecurity threats - The company has a history of significant losses, with an accumulated deficit of **$628.3 million** as of March 31, 2025, and its ability to achieve profitability is not certain[219](index=219&type=chunk) - The company faces significant competition from large, experienced companies with greater financial resources, brand recognition, and broader product portfolios that can be bundled and discounted[220](index=220&type=chunk) - The business is reliant on its digital technology, and any system failures or cybersecurity incidents could disrupt operations and harm customer relationships[244](index=244&type=chunk)[246](index=246&type=chunk) - Future growth depends on successfully in-licensing or acquiring additional products, a complex and competitive process[257](index=257&type=chunk) [Reliance on Third Parties and Supply Chain Risks](index=58&type=section&id=Reliance%20on%20Third%20Parties%20and%20Supply%20Chain%20Risks) The company's critical reliance on sole-source licensors for manufacturing and regulatory compliance poses significant supply chain risks - The company is completely dependent on its license agreements with Daewoong and Symatese; termination or loss of rights under these agreements would materially harm the business[276](index=276&type=chunk) - Evolus relies solely on Daewoong to manufacture Jeuveau® and Symatese for Evolysse™, making it vulnerable to any production, quality, or regulatory issues at its partners' facilities[277](index=277&type=chunk) - The company is dependent on Symatese to achieve and maintain regulatory approval for the Evolysse™ product line in the U.S. and Europe Any delays or failures by Symatese in this process would negatively affect Evolus's ability to sell these products[228](index=228&type=chunk)[229](index=229&type=chunk) [Intellectual Property and Legal Risks](index=59&type=section&id=Intellectual%20Property%20and%20Legal%20Risks) This section covers intellectual property infringement risks, reliance on licensors for IP protection, and Medytox royalty obligations - The company faces the risk of third-party intellectual property infringement claims, which could prevent or delay commercialization efforts and lead to substantial litigation costs[283](index=283&type=chunk) - Evolus relies on its licensors, Daewoong and Symatese, to maintain, protect, and defend the intellectual property related to its products, as it does not own the core patents[287](index=287&type=chunk)[290](index=290&type=chunk) - The Medytox Settlement Agreements require ongoing royalty payments that reduce profitability Failure to comply with the agreements could result in litigation or the loss of the ability to market and sell Jeuveau®[235](index=235&type=chunk)[236](index=236&type=chunk)[237](index=237&type=chunk) [Regulatory and Compliance Risks](index=63&type=section&id=Regulatory%20and%20Compliance%20Risks) Extensive government regulation, off-label promotion risks, and the need for ongoing regulatory approvals pose significant compliance challenges - The business is subject to extensive, complex, and costly government regulation by the FDA and other global authorities, and failure to comply can lead to severe penalties[306](index=306&type=chunk) - Marketing and promotion are strictly limited to approved indications If the company is found to have improperly promoted off-label uses, it could face significant fines, penalties, and damage to its reputation[251](index=251&type=chunk)[253](index=253&type=chunk) - Obtaining and maintaining regulatory approvals in foreign jurisdictions is necessary for international marketing and is a complex, time-consuming, and uncertain process[316](index=316&type=chunk)

Financial Performance - Total net revenues for Q1 2025 were $68.5 million, a 15.5% increase compared to Q1 2024, driven by higher volumes and market share gains[5]. - Total net revenues for Q1 2025 were $68,522,000, an increase of 15.5% compared to $59,333,000 in Q1 2024[22]. - Product revenue increased to $68,074,000 in Q1 2025, up from $58,964,000 in Q1 2024, representing a growth of 15.5%[22]. - Gross profit for Q1 2025 was $46,655,000, compared to $40,503,000 in Q1 2024, reflecting a gross profit margin of 68.1%[28]. - The net loss for Q1 2025 was $18,892,000, compared to a net loss of $13,109,000 in Q1 2024, indicating a 43.9% increase in losses[22]. - GAAP operating loss for Q1 2025 was $15.2 million, compared to $8.9 million in Q1 2024[12]. - Non-GAAP operating loss for Q1 2025 was $5.5 million, compared to $0.9 million in Q1 2024[12]. - Non-GAAP loss from operations for Q1 2025 was $5,530,000, compared to a loss of $856,000 in Q1 2024[32]. - The company reported a basic and diluted net loss per share of $0.30 for Q1 2025, compared to $0.22 in Q1 2024[22]. Membership and Market Growth - The number of accounts purchasing Jeuveau increased by 675 in Q1 2025, totaling over 16,000 accounts and achieving over 50% account penetration in the U.S.[7]. - Evolus Rewards™ membership grew by over 80,000 to over 1.1 million, representing a 39% increase compared to Q1 2024[7]. Product Launch and Future Guidance - Evolysse™ launched in April 2025 and is off to a strong start, with early metrics indicating strong interest and adoption[6]. - Evolysse™ and Estyme injectable HA gels are anticipated to contribute 8% to 10% of total revenue for the full year 2025[6]. - Full-year 2025 revenue guidance is reaffirmed at $345 million to $355 million, representing 30% to 33% growth over 2024 results[12]. - The company aims for total net revenue of at least $700 million by 2028, reflecting a compound annual growth rate of 27% from 2024[12]. Cash and Assets - Cash and cash equivalents as of March 31, 2025, were $67.9 million, down from $87.0 million on December 31, 2024[12]. - Cash and cash equivalents decreased to $67,894,000 as of March 31, 2025, down from $86,952,000 at the end of 2024[24]. - Total assets decreased to $213,361,000 as of March 31, 2025, compared to $232,569,000 at the end of 2024[24]. - Total stockholders' equity (deficit) was $(6,604,000) as of March 31, 2025, down from $5,522,000 at the end of 2024[24]. Operating Expenses - Operating expenses rose to $61,827,000 in Q1 2025, up from $49,425,000 in Q1 2024, marking a 25.1% increase[30].

Business Overview - Evolus aims to make the beauty experience delightful and achievable[9] - The company is building a brand focused on the younger demographic[11] - Evolus operates a unique cash-pay business model powered by strong digital capabilities[11, 34] Market Position and Growth - Jeuveau's share of the toxin market has grown to 13% in 2024[13] - The total addressable market expands by 78% with the addition of injectable HA gel portfolio[11] - The neurotoxin and filler markets are projected to grow to approximately $10 billion by 2028[15, 16] - Evolus International is expected to achieve $100 million in 2028[18] Financial Performance - The company anticipates total net revenues for 2025 to be between $345 million and $355 million[23, 114] - Evolysse and Estyme injectable HA gels are expected to contribute 8-10% of the total net revenue in 2025[103, 114] - Evolus projects at least $700 million in total net revenue and a non-GAAP operating income margin of at least 20% by 2028[115, 117]

Financial Data and Key Metrics Changes - In Q4 2024, global net revenue was $79 million, a 30% increase over Q4 2023 [31] - Full-year global net revenues reached $266.3 million, representing a 32% increase over 2023, exceeding the guidance range [31] - The company achieved profitability for the full year, one year ahead of expectations, with non-GAAP operating income of $6.7 million in Q4 2024 [36][29] Business Line Data and Key Metrics Changes - The US product revenues accounted for approximately 95% of total sales, with a customer reorder rate of about 70% [31] - The company added over 2,900 new accounts in 2024, bringing the total to more than 15,000 purchasing accounts [10] - Evolys Rewards surpassed 1.1 million users, growing 40% over the prior year [10] Market Data and Key Metrics Changes - The US market share approached 14% by the end of 2024, reflecting a consistent gain in market share [80] - The total addressable market for the company is approximately $6.2 billion today, expected to grow to around $10 billion by 2028 [40] - International revenue contribution is anticipated to increase, with the company targeting $100 million in international revenue by 2028 [11] Company Strategy and Development Direction - The launch of Evolys is a top priority, with plans to commercialize in early Q2 2025 [13] - The company aims to achieve at least $700 million in revenue by 2028, with a non-GAAP operating income margin of at least 20% [20] - The company is focusing on integrating Evolys into its existing portfolio, leveraging its cash pay model and consumer rewards [17] Management's Comments on Operating Environment and Future Outlook - Management noted a healthy market for toxins, with continued consumer interest and growth expected in the mid to high single digits [51] - The company is optimistic about the impact of the GLP-1 label on consumer interest and market dynamics [52] - Management expressed confidence in achieving profitability and positive non-GAAP operating income for the full year 2025 [42] Other Important Information - The company achieved a reported gross margin of 66.7% in Q4 2024, consistent with Q4 2023 [32] - Operating expenses grew at a rate less than half that of revenue, demonstrating continued operating leverage [34] - The company ended Q4 2024 with $87 million in cash, reflecting strong sales growth and efficient cash collection [37] Q&A Session Summary Question: How does the company view the market conditions for US facial injectables? - Management acknowledged challenging market conditions but noted strong growth in the toxin market and consumer interest, particularly among younger generations [47][48] Question: What are the early metrics for the Club Evolys subscription program? - Management reported good results from the initial rollout of the subscription program, with plans to evaluate its performance after a full year [56][58] Question: What are the growth expectations for the US toxin market in 2025? - Management projected a healthy growth rate for the toxin market, with expectations of mid to high single-digit growth [68] Question: How does the company differentiate its new fillers? - The company highlighted the unique Coldex technology used in Evolys, which offers better stability and performance compared to competitors [72][75] Question: What are the expectations for international revenue growth? - Management indicated that international revenue is expected to grow significantly faster than US revenue, contributing a larger share over time [93]