Evolus, Inc. Q4 FY2024 earnings call

Key Achievements in 2024

• Achieved profitability in Q4 and full year 2024, one year ahead of goal. Revenue grew over 30% for the fifth consecutive year. US market share approached 14%, with revenue above original guidance top end.
• Obtained CE Mark Approval for Evolys injectable gels in Q4 2024, followed by FDA approval in Feb 2025 for Evolys Form and Evolys Smooth, expanding total addressable market by 78%.
• Added over 2,900 new accounts in 2024, total purchasing accounts over 15,000. Evolys Rewards had over 1.1 million users, growing 40% y-o-y. International business expanded with presence in UK, Australia, Spain.

Evolys Launch Details

• CE Mark in Q4 2024, FDA approval in Feb 2025. Launch planned for early Q2 2025. Strengthened expertise, made strategic hires, conducted advisory meetings with KOLs. Insights from meetings shaped launch plans.

R&D Insights

• Evolys gels use proprietary Coldex technology. Evolys Smooth is soft with low inflammation, suitable for superficial applications like perioral fine lines. Evolys Form is versatile. FDA label for Evolys includes facial wrinkles related to weight loss, unique in the market.

In the fourth quarter of 2024, global net revenue was $79 million, a 30% increase from Q4 2023. For the full year 2024, global net revenues reached $266.3 million, a 32% increase from 2023 and at the top of the guidance range. US product revenues accounted for approximately 95% of total sales, with a customer reorder rate of about 70%. International revenue contribution is expected to continue increasing. For 2025, Evolys injectable HA gels are anticipated to contribute 8% to 10% of total revenue.

Revenue Guidance

• 2025 total net revenues expected to be between $345 million and $355 million, representing 30%-33% growth from 2024. Evolys injectable HA gels to contribute 8%-10% of 2025 revenue.

Long-Term Outlook

• Aim to achieve at least $700 million in revenue by 2028 with a non-GAAP operating income margin of at least 20%. Total addressable market for aesthetics expected to grow to ~$10 billion by 2028.

2025 Expenses

• Non-GAAP operating expenses expected to be between $230 million and $240 million, driven by investments in expanding Jeuveau and launching Evolys.

• Market conditions: Challenging market for facial injectables, though toxin market remains strong. Need to navigate potential slowdowns in the filler market.
• Launch execution: Ensuring smooth rollout of Evolys, including training accounts and managing market reception. Dependence on successful launch of Evolys for future growth.
• Dependence on key products: Over-reliance on Jeuveau and Evolys; need for continued innovation to maintain competitive edge.

Q: How do you view the challenging market conditions for US facial injectables and the impact of GLP-1 on patient behavior?

A: The toxin market has been growing in high single-digit range post-COVID, with healthy consumer interest in entering the market. No changes in patient behavior regarding stretching treatment intervals despite market backdrop. The filler market is normalizing syringe usage, but expected to grow mid to high single digits going forward.

Q: What's the performance of the subscription model, Club Evolys?

A: Launched Club Evolys in back half of 2024 to limited customers, extended to ~100 US accounts. Early results positive, but full year data needed for comparison. High interest in enrolling and using the subscription, but different from loyalty program as it's a new platform for practices.

Q: US toxin market growth expectations and gel properties of Evolys?

A: Toxin market expected to grow in high single to low double digits long term. Evolys gels use Coldex technology, withstand compression/shear better than competitors. Clinically, Evolys Form showed more correction at all time points vs control, Evolys Smooth hit statistical significance at six to nine months despite using less volume initially.

Q: Unique patient label for Evolys related to weight loss and market share?

A: FDA label for Evolys includes facial wrinkles from weight loss, unique in the market. Gained ~14% US market share in 2024, approaching share guided for 2028. International business expanding, with UK, Australia, Spain launches showing strong uptake.