UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________________ FORM 10-Q _________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________________ FORM 10-Q _________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ ...

Financial Data and Key Metrics Changes - In 2022, the company achieved total revenue growth of 49%, reaching $149 million, with quarterly revenue growing 26% year-over-year and 29% quarter-over-quarter [5][14][15] - The company expects total net revenue for 2023 to be between $180 million and $190 million, maintaining a trajectory towards $500 million by 2028, representing a 22% compound annual growth rate [13][18][20] - The reported gross margin for Q4 was 67.7%, with an adjusted gross margin of 69.4%, reflecting a decrease in royalty obligations [29][30] Business Line Data and Key Metrics Changes - Jeuveau was noted as the fastest-growing toxin in the aesthetic market for the second consecutive year, achieving a double-digit market share [5] - The company added 700 new accounts in Q4 2022, totaling over 2,500 new customers for the year, with a reorder rate above 70% [15][16] - The Evolus Rewards Consumer Loyalty Program grew by over 75% in 2022, reaching more than half a million members [16] Market Data and Key Metrics Changes - The U.S. aesthetic neurotoxin market was estimated at approximately $2.2 billion at the end of 2022, projected to grow to around $4 billion by 2028 [19] - The company anticipates that international sales will represent 15% to 20% of total revenue by 2028, with ongoing expansion into European markets [20][21] Company Strategy and Development Direction - The company plans to expand its international presence with the launch of Nuceiva in Germany and Austria, and is preparing for a launch in Australia [6][21][108] - The strategy includes achieving positive non-GAAP operating income by the end of 2023 without needing additional capital [13][27] - The company aims to complement its product offerings through potential acquisitions to enhance market reach [39][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability in 2023, citing a steady decrease in operating cash usage throughout 2022 [27][33] - The management noted that the underlying U.S. aesthetic market conditions remain strong, with growing consumer purchasing power fueling market expansion [107] - The company is optimistic about its growth trajectory, expecting to outpace the aesthetic neurotoxin market growth by a factor of two in 2023 [38] Other Important Information - The company reported a significant reduction in cash used for operating activities, down to $8.8 million in Q4, nearly 50% lower than the previous quarter [111] - The company resolved all litigation with Medytox, ensuring no impact on operations from ongoing legal matters [25] Q&A Session Summary Question: Insights on long-acting toxin data and market reception - Management noted significant interest from clinicians regarding the extra-strength formulation, with many expressing a desire for longer duration products [43][50] Question: Market share and growth assumptions - The company indicated that its guidance assumes existing market share and does not factor in potential benefits from new products or market growth [49][66] Question: Trends in consumer behavior in loyalty programs - Management observed no significant differences in retention rates among different demographic groups within the loyalty program [58] Question: Competitive landscape and market conditions - Management acknowledged the entry of new competitors but emphasized the healthy market conditions and ongoing demand for neurotoxins [66][103] Question: International rollout and revenue consistency - The company plans a phased international expansion, with expectations for more consistent revenue from Canada moving forward [82][85]

Product Commercialization - The company relies entirely on the successful commercialization of its only product, Jeuveau, and failure to market it effectively may hinder revenue generation [16] - Jeuveau's commercial success depends on achieving broad physician adoption and consumer demand, which may not be guaranteed [21] - The reliance on the Daewoong Agreement for exclusive distribution rights is crucial; any loss of these rights would significantly impact Jeuveau's commercialization [21] - Evolus relies on the Daewoong Agreement for exclusive rights to distribute Jeuveau in certain territories, and any loss of these rights could materially affect its commercialization efforts [21] Financial Viability - The company has incurred significant losses since inception and anticipates continued losses for the foreseeable future, complicating future viability assessments [16] - Additional financing may be required to fund future operations, and failure to secure capital could lead to operational delays or reductions [16] Regulatory Challenges - Regulatory approvals are necessary for expanding indications for Jeuveau, which could be costly and not guaranteed [21] - The company’s ability to market Jeuveau is currently limited to treating glabellar lines, necessitating further regulatory approvals for broader applications [21] - Evolus is subject to extensive government regulation, which may result in delays or additional expenses in obtaining regulatory approvals for product candidates [21] Competition - The company faces significant competition in the market, which may impede achieving substantial market penetration and expansion [21] - Jeuveau faces significant competition, and failure to effectively compete may hinder market penetration and expansion [21] Operational Risks - Compliance with settlement agreements with Medytox, Inc. is critical; non-compliance may result in litigation or loss of marketing rights for Jeuveau [16] - The terms of the Settlement Agreement with Medytox will reduce profitability and may limit discount offerings to customers [16] - The company’s operations may be adversely affected by the COVID-19 outbreak or similar events [21] - The COVID-19 outbreak has adversely affected the company’s business, financial condition, and operations, with potential future impacts [21] - The company’s operations are heavily reliant on digital technology, and any system failures or breaches could adversely impact business [21] Growth and Development - Failure to successfully in-license, acquire, develop, and market additional product candidates could impair business growth [21] - Evolus may need to increase its organization size, including sales and marketing capabilities, to further market Jeuveau, which could present management challenges [21] - There is a risk of third-party claims of intellectual property infringement that could delay commercialization efforts [21]

This presentation contains forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this presentation, including statements regarding our future results of operations and financial position; business strategy; the market growth for our product; our ability to meet our goals related to the market position of our product; the potential market acceptance, demand market size, adoption rate, revenue exp ...

Financial Data and Key Metrics Changes - The company reported a revenue growth of 27% year-over-year, reaching $33.9 million in Q3 2022, compared to $26.7 million in the same quarter last year [7][17] - The adjusted gross margin for Q3 was 60.2%, with a reported gross margin of 58% [21] - Non-GAAP loss from operations decreased to $13.3 million from $14.1 million in the previous quarter [24] - Cash position at the end of Q3 was $65.6 million, down from $84.5 million at the end of Q2 [25] Business Line Data and Key Metrics Changes - The "Switch Your Tox" promotional campaign led to the addition of nearly 650 new accounts, bringing the total to over 8,800 purchasing customers [10] - The Evolus Rewards program grew by almost 50,000 members in the quarter, reaching nearly 450,000 total members [10] - The average selling price of Jeuveau remained consistent with Q2 and above 2021 levels [17] Market Data and Key Metrics Changes - The company is gaining market share, now approaching 10% of the U.S. aesthetic toxin market [6][13] - Despite a seasonal dip in procedural volumes during the summer, demand for neurotoxins remains strong [12] - The aesthetic toxin market is expected to continue growing, driven by the millennial demographic [13] Company Strategy and Development Direction - The company is focused on expanding its product portfolio and geographic presence, with a recent launch in Great Britain and plans to enter other European markets [6][14] - The strategy includes targeting the millennial demographic and leveraging co-branded marketing to strengthen customer partnerships [11][30] - The company aims to achieve profitability through disciplined operating expense management and a strong cash position [6][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the aesthetic neurotoxin market, expecting continued growth despite economic uncertainties [8][36] - The company anticipates that the majority of deferred revenue from the "Switch Your Tox" program will be recognized in Q4 2022 [19] - Management remains optimistic about 2023, forecasting growth at more than double the market average [31][36] Other Important Information - The company plans to present interim data from its Phase II extra-strength study in early 2023 [15] - The pricing environment for neurotoxin products in the U.S. remains strong, with a significant decrease in royalty obligations expected to improve margins [21] Q&A Session Summary Question: Broader market performance and expectations for 2023 - Management noted that seasonality affected procedural growth rates, but they have not observed a significant slowdown in their business [34] Question: Market opportunity for extra-strength product and European launch - There is strong interest in the extra-strength product, but regular strength is expected to remain dominant in usage [40] - The company expects to see increased contributions from international markets, particularly as they expand into Germany [41] Question: Consumer incentives during economic pressures - Management discussed the importance of co-branded media and the Evolus Rewards program to maintain consumer engagement [52] Question: Interest from accounts reconsidering their current toxin options - The company is experiencing an all-time high in new accounts purchasing, indicating a favorable market position [56]

Financial Performance - Jeuveau sales net revenues increased by $7.2 million, or 27.0%, to $33.9 million for the three months ended September 30, 2022, compared to $26.7 million for the same period in 2021, primarily due to higher sales volumes [206]. - Total net revenues for the three months ended September 30, 2022, were $33.9 million, up from $26.7 million in the same period of 2021 [204]. - Gross profit for the three months ended September 30, 2022, was $19.7 million, with a gross profit margin of 58.0%, compared to a gross profit of $14.5 million and a margin of 54.2% in the same period of 2021 [203]. - Product revenue increased by $40.0 million, or 61.5%, to $105.0 million for the nine months ended September 30, 2022, compared to $65.0 million for the same period in 2021 [218]. - Gross profit margin decreased to 57.4% for the nine months ended September 30, 2022, compared to 93.2% for the same period in 2021 [221]. - Net loss was $61.2 million for the nine months ended September 30, 2022, compared to a net loss of $28.6 million for the same period in 2021 [232]. Operating Expenses - Operating expenses for the three months ended September 30, 2022, totaled $51.8 million, compared to $45.8 million in the same period of 2021 [204]. - Selling, general and administrative expenses increased by $26.3 million, or 33.4%, to $105.1 million for the nine months ended September 30, 2022, from $78.8 million for the same period in 2021 [222]. - Research and development expenses increased by $1.8 million, or 112.5%, to $3.4 million for the nine months ended September 30, 2022, from $1.6 million for the same period in 2021 [223]. - Non-operating expense, net, increased by $5.2 million, or 400.0%, to $6.5 million for the nine months ended September 30, 2022, from $1.3 million for the same period in 2021 [228]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2022, were $65.6 million, with positive working capital of $64.7 million [231]. - Cash used in investing activities was $1.5 million for the nine months ended September 30, 2022, compared to cash provided by investing activities of $4.4 million for the same period in 2021 [252]. - Cash used in financing activities was $2.6 million for the nine months ended September 30, 2022, compared to $25.2 million provided by financing activities in the same period in 2021 [253]. - For the nine months ended September 30, 2022, operating activities used $76.1 million of cash, primarily due to a net loss of $61.2 million and changes in net operating assets and liabilities totaling $32.7 million [250]. - Cash and cash equivalents at the end of the period were $65.6 million, down from $146.3 million at the beginning of the period [249]. Future Outlook - The company expects to receive full TGA regulatory approval for Jeuveau in Australia and launch the product in 2023 [193]. - The company is finalizing plans for entering additional countries in Europe as part of a phased rollout of Jeuveau [193]. - The company anticipates elevated levels of cost inflation to continue, potentially impacting consumer discretionary spending for aesthetic medical procedures [200]. - Research and development expenses are expected to continue increasing as the company seeks to develop further product candidates and pursue regulatory approvals in other jurisdictions [210]. - The company’s future funding requirements will depend on various factors, including revenue growth for Jeuveau and the success of planned international launches [246]. Obligations and Liabilities - The company has a contingent royalty obligation to the Evolus Founders, requiring quarterly payments of a low single-digit percentage of net sales of Jeuveau until the end of Q2 2029 [199]. - The company recorded an aggregate balance of $45.5 million for future royalty payment obligations to Evolus Founders as of September 30, 2022 [238]. - The company agreed to pay Allergan and Medytox a total of $35.0 million in multiple payments over two years, with $15.0 million paid in Q3 2021 and another $15.0 million in Q1 2022, leaving a remaining $5.0 million due in the next twelve months [239]. - The company has future obligations including a $5.0 million settlement payment related to the Medytox/Allergan Settlement Agreements and ongoing royalty payments to Allergan and Medytox [254]. Economic Conditions - The company’s cash requirements may be impacted by potential disruptions to the supply chain, inflation, and other economic conditions [243]. - The company’s projections of capital requirements are based on assumptions that may prove to be incorrect, potentially necessitating additional capital raising efforts [245]. - The company’s operating lease for its headquarters in Newport Beach, California, is a five-year non-cancelable lease expiring on January 31, 2025 [241].

Financial Data and Key Metrics Changes - Net revenues for Q2 2022 were $37.2 million, a 42% increase from $26.1 million in Q2 2021, driven by higher volumes and a slightly higher average selling price [34][10] - U.S. sales growth rate was 46%, significantly above the estimated market growth rate [34][11] - Reported gross margin for Q2 was 55.4%, with an adjusted gross margin of 57.4%, expected to improve to 68% to 71% in Q4 2022 due to the end of royalty obligations [35][36] Business Line Data and Key Metrics Changes - The company added nearly 590 new customers in Q2, bringing the total account base to over 8,100, with a reorder rate above 70% [12][9] - Jeuveau achieved a number one or number two toxin share position in practices that adopted the product, indicating strong market penetration [13][15] Market Data and Key Metrics Changes - The aesthetic neurotoxin market continues to show strong demand, with the company expecting to achieve the upper end of its full-year sales guidance of $143 million to $150 million, reflecting a year-over-year growth rate approaching 50% [10][42] - The company is preparing to launch Nuceiva in Europe, targeting Great Britain and Germany, which represent nearly 40% of the European market [22][59] Company Strategy and Development Direction - Evolus aims to become a multi-product aesthetic company, investing in a licensing agreement for 3D printing technology to develop new aesthetic applications [30][29] - The "Switch Your Tox" promotional campaign is designed to increase Jeuveau usage among injectors and patients, providing significant discounts to encourage adoption [21][73] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the resilience of the aesthetic neurotoxin market, citing strong consumer engagement and purchasing patterns despite macroeconomic headwinds [18][19] - The company believes it can grow faster than the overall toxin market, leveraging its unique business model focused on cash pay aesthetics and targeting millennial consumers [20][10] Other Important Information - The company ended Q2 2022 with $84.5 million in cash, down from $106.7 million at the end of Q1, but remains on track for sustainable positive cash flow [40][41] - The company is actively exploring business development opportunities to expand its product portfolio, with a focus on commercial stage assets in aesthetics [60][62] Q&A Session Summary Question: Market opportunity for extra-strength Jeuveau and launch preparation for Nuceiva in Europe - Management indicated high interest in extra-strength Jeuveau, with 86% of customers expressing interest, and discussed modest expectations for Nuceiva's initial sales in Europe [49][51][57] Question: Growth strategies and consumer loyalty program impact - Management confirmed plans to deepen market penetration and expand the customer base, emphasizing the effectiveness of the Evolus program and the new consumer loyalty initiative [64][70][73] Question: Third quarter expectations and business development considerations - Management acknowledged traditional seasonality may return in Q3 due to increased consumer travel, while also clarifying that they are open to considering devices in their business development strategy [76][78] Question: Customer base targets and leveraging recent publications - Management noted a long-term goal of reaching a broader customer base while utilizing recent research on millennials to drive Jeuveau adoption [84][86][88]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________________ FORM 10-Q _________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ ...

gg evolus™ M A Y 202 2 Investor Presentation | --- | --- | --- | |-------|-------------------|-------| | | | | | | | | | | | | | | 8 | | | | | | | | our Purpose | | | | To make the her | | | | beauty experience | | | | delightful and | | | | achievable | | Disclosures Special Note Regarding Forward-Looking Statements This presentation contains forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained i ...