Evolus(EOLS) - 2024 Q4 - Earnings Call Transcript

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]