Evolus(US:EOLS)2019-11-04 16:34Financial Data and Key Metrics Changes - In Q3 2019, Evolus reported net revenue of $13.2 million, a significant increase from $2.3 million in Q2 2019, representing more than a five-fold increase [21][24] - Gross margin improved to 72% in Q3 compared to 71% in Q2 [23] - Net loss for Q3 was $27 million, an improvement of $10.6 million from a net loss of $37.6 million in Q2 [24] Business Line Data and Key Metrics Changes - The Jeuveau experience treatment program (J.E.T.) enrolled over 5,000 accounts, with an average of more than 10 vials shipped per account, resulting in over 50,000 vials placed in the market by August [9][10] - J.E.T. accounts contributed over 90% of the revenue, positioning Jeuveau as the number 3 U.S. unit share in the neurotoxin market for Q3 [11] Market Data and Key Metrics Changes - The consumer penetration rate for neurotoxins is increasing, particularly among millennials, indicating a favorable market environment for aesthetic products [8] - Jeuveau has been featured in major beauty publications, generating over 330 million media impressions and averaging over 70,000 monthly website visits [19] Company Strategy and Development Direction - Evolus aims to differentiate itself through a focus on customer experience and engagement, leveraging technology to enhance operational efficiency [13][17] - The company plans to modernize customer engagement with the Evolus Practice app, which processes over 70% of orders with a 98% satisfaction rating [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory towards achieving the number two unit share position within 24 months from launch, emphasizing the importance of execution and operational rigor [28][36] - The company is optimistic about the growth potential in the U.S. market and is preparing for international launches, including Canada and Europe in 2020 [29][67] Other Important Information - Evolus has approximately $74 million in cash and short-term investments, expected to fund operations for at least the next 12 months [24][25] - The company has $25 million available from its Oxford credit facility upon achieving certain milestones [26] Q&A Session Summary Question: What excites you the most about your third quarter results? - Management highlighted the robust launch of Jeuveau and the rapid enrollment in the J.E.T. program, exceeding initial goals [32] Question: Is Q3 2019 a good base to grow off of for Q4 and 2020? - Management believes the diverse and broad customer base established in Q3 provides a solid foundation for future growth [33] Question: What is Jeuveau's estimated volume share now? - Jeuveau is currently in the number three position in the neurotoxin category, estimated to have a share between 5% and 10% [37] Question: How are physicians pricing Jeuveau relative to Botox? - Jeuveau was launched at a slight premium to Botox, but pricing has generally been set at parity with other products [38] Question: What is the expected contribution of Canada and Europe to revenue? - Canada has just launched, and Europe is expected to launch in 2020, but significant contributions from these markets are not anticipated in the near term [67]