Evolus(US:EOLS)2022-05-11 00:44Financial Data and Key Metrics Changes - First quarter sales grew to nearly $34 million, reflecting a year-over-year growth of 177% compared to the first quarter of 2021 [9][12] - The company expects to achieve the upper end of its full year sales guidance range of $143 million to $150 million, equating to a year-over-year growth rate approaching 50% [11][33] - Reported gross margin for the first quarter was 59%, with an adjusted gross margin of 61% [26] - Non-GAAP loss from operations improved to $10.3 million in Q1 2022 from $12.2 million in Q4 2021 [29] Business Line Data and Key Metrics Changes - The company added more than 575 new accounts in the first quarter, the highest quarterly increase in the past two years, bringing the total to over 7,500 purchasing customers [15] - The Evolus Rewards program grew to over 335,000 members, with nearly 90,000 consumers rewarded during the quarter [19][60] Market Data and Key Metrics Changes - The aesthetics market is expected to grow in the teens to up to 20%, while the company anticipates a growth rate of approximately 50% [41][55] - The pricing environment for neurotoxin products in the U.S. remains healthy, with an increase in average selling price [25][56] Company Strategy and Development Direction - The company is focused on expanding its European footprint with the launch of Nuceiva planned for the third quarter, starting in the U.K. and Germany [20][21] - Evolus aims to build a powerful brand appealing to millennials, which is expected to drive long-term growth [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong growth in 2022, supported by robust market dynamics and the successful relaunch of Jeuveau [10][41] - The company is closely monitoring macroeconomic factors like inflation and supply chain issues but believes its fixed transfer pricing will mitigate significant impacts [56] Other Important Information - The company ended the first quarter with $107 million in cash, down from $146 million at the end of 2021, but expects this balance to fund operations through cash flow breakeven [30][31] - The final installment of a $5 million settlement payment is due in Q1 2023, which will fully satisfy total milestone settlement obligations [32] Q&A Session Summary Question: Market dynamics and share gains - Management noted that the aesthetics market is experiencing significant growth, with the company benefiting from both market growth and share gains [41][44] Question: Market share evolution and macro headwinds - The company expects to continue expanding its market share, with a favorable backdrop for growth despite potential macroeconomic challenges [55][56] Question: Loyalty program progress - The loyalty program has enrolled nearly 400,000 consumers, with repeat treatments hitting an all-time high, indicating strong consumer satisfaction [60][62] Question: Business development environment - The evolving market presents opportunities for corporate development, with the company focused on durable assets to build its portfolio [67][70]