Revance(US:RVNC)2024-05-10 02:42Financial Data and Key Metrics Changes - Total revenue for Q1 2024 was $51.9 million, a 13% increase from $45.8 million in the same period last year, primarily driven by DAXXIFY [120] - DAXXIFY net revenue was $22.1 million after a $2 million reduction related to a consumer coupon program [23] - Non-GAAP operating expenses from continuing operations for Q1 2024 were $73.6 million, up from $64.5 million in Q1 2023 [121] Business Line Data and Key Metrics Changes - DAXXIFY aesthetic units sold increased by 105% year-over-year and 7% quarter-over-quarter, with market share growing from 3% to 3.7% [5] - RHA revenue declined by 2% year-over-year, but market share increased from 9.1% to 9.8% [7] - The RHA Collection generated $29.6 million in revenue for Q1 2024 [136] Market Data and Key Metrics Changes - The US therapeutic neurotoxin market is projected to grow at 8% annually over the next five years, with Revance entering this market with DAXXIFY for cervical dystonia [26] - The filler market showed softness in Q1, but is expected to return to historic high-single-digit growth through the remainder of 2024 [15] Company Strategy and Development Direction - The company is focusing on expanding its market share in both the aesthetics and therapeutic segments, with a balanced portfolio approach [14][15] - A new DAXXIFY messaging campaign was launched to enhance market presence and promote its benefits [24] - The company aims to achieve positive adjusted EBITDA by 2025, with a guidance of at least $280 million in net product revenue for 2024 [118][139] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing traction and momentum in the DAXXIFY strategy change, indicating a positive trajectory for Q2 [28] - The management noted that while aesthetics will carry a significant portion of revenue, therapeutics are expected to be incremental in 2024 [36] - Feedback from clinicians has been positive, with a focus on improving patient outcomes and symptom control [46][95] Other Important Information - The company has over $275 million in cash and equivalents, providing a strong financial position to support growth initiatives [118] - The PrevU program for cervical dystonia has shown promising results, with 94% of participating physicians perceiving DAXXIFY to last longer than conventional treatments [115] Q&A Session Summary Question: How does the company view the therapeutic contribution in 2024? - Management expects aesthetics to dominate revenue, with therapeutics being incremental, but is encouraged by early engagement in the therapeutics business [34][36] Question: What are the expectations for sales acceleration in Q2? - Management anticipates benefiting from broader account engagement and expects a return to normal growth patterns in the aesthetic market [39][41] Question: How does the company plan to address market share and pricing dynamics? - The company is focused on maintaining competitive pricing while emphasizing the quality and performance of its products to differentiate from competitors [80][82]