- Q1 2024 Net Revenue of $59.3 Million, Up 42% from Q1 2023
- Non-GAAP Loss from Operations of $0.9 Million, on Track to
Non-GAAP Profitability1 in Q4 2024 and Full Year 2025
- U.S. Clinical Trials Completed for Evolysse® Lift and Smooth
fillers, FDA Submission Expected within Next 90 Days
- Reaffirms Full-Year 2024 Net Revenue Guidance of $255 Million
to $265 Million, Representing a 31% Growth Rate at the Top End
- Remains on Track to Achieve Projected Total Net Revenue Goal of
At Least $700 Million by 2028
Evolus, Inc. (NASDAQ: EOLS), a performance beauty company with a
focus on building an aesthetic portfolio of consumer brands, today
reported financial results for the first quarter ended March 31,
2024, and provided a business update.
“Coming off a record year in 2023, we’re proud to carry the
momentum into 2024 with our first quarter performance multiples
above the market,” said David Moatazedi, President and Chief
Executive Officer. “We are building a performance beauty company
dedicated to cash-pay and focused on millennials. This creates a
unique advantage in the market and is driving high customer and
consumer satisfaction. These results underscore the continued
growth of our brand awareness and the loyalty of our customers, who
continue to choose Evolus.”
Moatazedi continued, “As we look ahead, we are committed to
delivering innovative solutions that empower consumers within
performance beauty. With our focus on excellence, we remain poised
to seize the opportunities ahead, driving sustained growth with our
expanded global portfolio, delivering on profitability milestones
toward our total net revenue goal of at least $700 million by 2028,
and solidifying Evolus’ position as a leader in its industry.”
First Quarter 2024 Highlights and Recent Developments
- The company’s key performance indicators demonstrated continued
strong momentum during the first quarter.
- Evolus added over 700 new customer accounts in the quarter,
bringing the total number of customers purchasing since launch to
over 13,000. The reorder rate among customers remains approximately
70%.2
- Members in the Evolus Rewards consumer loyalty program grew by
over 75,000 to approximately 825,000.3
- Total Evolus Rewards redemptions for the quarter hit an
all-time high of nearly 180,000 driven by continued demand from
existing patients receiving repeat treatments at the rate of
approximately 60%, which demonstrates sustained brand loyalty.
First Quarter 2024 Financial Results
- Total net revenues for the first quarter of 2024 increased 42%
to $59.3 million from $41.7 million in the first quarter of 2023
driven primarily by higher volumes of Jeuveau®.
- Gross profit margin and adjusted gross profit margin were 68.3%
and 69.5%, respectively. Adjusted gross profit margin, which
excludes amortization of intangible assets, was in line with
company guidance for the full year, as noted below.
- Operating expenses for the first quarter of 2024 were $68.3
million, compared to $69.6 million in the fourth quarter of
2023.
- Non-GAAP operating expenses for the first quarter of 2024 were
$42.1 million, compared to $45.5 million in the fourth quarter of
2023. Non-GAAP operating expenses exclude product cost of sales,
stock-based compensation expense, revaluation of the contingent
royalty obligation, and depreciation and amortization.
- Loss from operations for the first quarter of 2024 was $8.9
million, compared to $8.6 million in the fourth quarter of 2023.
Non-GAAP loss from operations in the first quarter of 2024 was $0.9
million compared to $3.7 million in the fourth quarter of 2023
representing continued progress toward achieving profitability.1
Non-GAAP loss from operations excludes stock-based compensation
expense, revaluation of the contingent royalty obligation, and
depreciation and amortization.
- Cash and cash equivalents at March 31, 2024 were $97.0 million
compared to $62.8 million at December 31, 2023. The cash balance
includes $47.0 million of net proceeds from the underwritten
offering of common stock in March 2024. For the first quarter of
2024, net cash used for operating activities was $10.6 million,
which was $10.0 million lower than the first quarter of 2023,
representing continued progress toward cash flow breakeven.
- Evolus continues to expect its existing liquidity will fully
fund it to non-GAAP profitability1 for the fourth quarter of 2024
and the full year 2025.
Outlook
- Evolus continues to expect total net revenues for the full year
2024 to be between $255 million and $265 million, representing
year-over-year growth of 31% at the top end.
- The company continues to expect its adjusted gross profit
margin for the full year 2024 to be between 68% and 71%.
- Evolus continues to expect its full-year non-GAAP operating
expenses to be between $185 million and $190 million.
- The company continues to expect to achieve positive non-GAAP
operating income on a consolidated basis for the fourth quarter of
2024 and for the full year 2025.
- During 2024, Evolus expects to broaden its global footprint by
expanding into additional countries with Nuceiva®, most notably
Australia and Spain.
- Evolus expects to submit Premarket Approval (PMA) applications
for the first two Evolysse™ dermal filler products with the FDA
within next 90 days and anticipates regulatory approvals for the
remaining Estyme® dermal filler products in Europe in late
2024.
- The company projects its total net revenue can reach at least
$700 million by 2028, a compound annual growth rate of 28% from
2023, based on the combination of its existing aesthetic neurotoxin
business and anticipated launch of the Evolysse™ HA dermal filler
product line beginning in 2025.
Conference Call Information
Management will host a conference call and live webcast to
discuss Evolus’ financial results today at 4:30 p.m. ET. To
participate in the conference call, dial (877) 407-6184 (U.S.) or
(201) 389-0877 (international) or connect to the live webcast via
the link on the Investor Relations page of our website at
www.evolus.com.
Following the completion of the call, an audio replay can be
accessed for 48 hours by dialing (877) 660-6853 (U.S.) or (201)
612-7415 (international) and using conference number 13746068. An
archived webcast, which will remain available for 30 days, can also
be accessed on the Investor Relations page of our website at
www.evolus.com.
About Evolus, Inc.
Evolus (NASDAQ: EOLS) is a global performance beauty company
evolving the aesthetic neurotoxin market for the next generation of
beauty consumers through its unique, customer-centric business
model and innovative digital platform. Our mission is to become a
global, multi-product aesthetics company based on our flagship
product, Jeuveau® (prabotulinumtoxinA-xvfs), the first and only
neurotoxin dedicated exclusively to aesthetics and manufactured in
a state-of-the-art facility using Hi-Pure™ technology. Evolus is
expanding its product portfolio having entered into a definitive
agreement to be the exclusive U.S. distributor of Evolysse™, and
the exclusive distributor in Europe of Estyme®, a line of unique
dermal fillers currently in late-stage development. Visit us at
www.evolus.com, and follow us on LinkedIn, Twitter, Instagram or
Facebook.
1 Within this press release, “profitability” is defined as
achieving positive non-GAAP operating income.
2 Represents cumulative statistics from the launch of Jeuveau®
in May 2019 through March 31, 2024.
3 Represents cumulative statistics from the launch of Evolus
Rewards in May 2020 through March 31, 2024.
Use of Non-GAAP Financial Measures
Evolus’ financial results are prepared in accordance with
accounting principles generally accepted in the United States of
America (“GAAP”). This press release and the reconciliation tables
included in the financial schedules below include adjusted gross
profit, adjusted gross profit margin, non-GAAP operating expenses
and non-GAAP (loss) from operations. Adjusted gross profit is
calculated as gross profit excluding amortization of an intangible
asset. Adjusted gross profit margin is defined as adjusted gross
profit as a percentage of total net revenues. Non-GAAP operating
expenses and non-GAAP (loss) from operations exclude (i) product
cost of sales, in the case of non-GAAP operating expenses only,
(ii) the revaluation of contingent royalty obligations, (iii)
stock-based compensation expense, and (iv) depreciation and
amortization. Management believes that adjusted gross profit and
adjusted gross profit margin are important measures for investors
because management uses adjusted gross profit margin as a key
performance indicator to evaluate the profitability of sales
without giving effect to costs that are not core to our cost of
sales, such as the amortization of an intangible asset. Management
believes that non-GAAP operating expenses and non-GAAP (loss) from
operations are useful in helping to identify the company’s core
operating performance and enables management to consistently
analyze the period-to-period financial performance of the core
business operations. Management also believes that non-GAAP
operating expenses and non-GAAP (loss) from operations will enable
investors to assess the company in the same way that management has
historically assessed the company’s operating expenses against
comparable companies with conventional accounting methodologies.
The company’s definitions of adjusted gross profit, adjusted gross
profit margin, non-GAAP operating expenses and non-GAAP (loss) from
operations have limitations as analytical tools and may differ from
other companies reporting similarly named measures. Non-GAAP
measures should not be considered measures of financial performance
under GAAP, and the items excluded from such non-GAAP measures
should not be considered in isolation or as alternatives to
financial statement data presented in the financial statements as
an indicator of financial performance or liquidity. Non-GAAP
measures should be considered in addition to results prepared in
accordance with GAAP but should not be considered a substitute for
or superior to GAAP results.
For a reconciliation of our historical adjusted gross profit,
adjusted gross profit margin, non-GAAP operating expenses and
non-GAAP (loss) from operations presented herein to gross profit,
gross profit margin, GAAP operating expenses and GAAP loss from
operations, the most directly comparable GAAP financial measures,
please see “Reconciliation of Gross Profit Margin to Adjusted Gross
Profit Margin,” “Reconciliation of GAAP Operating Expenses to
Non-GAAP Operating Expenses” and “Reconciliation of GAAP (Loss)
from Operations to Non-GAAP (Loss) from Operations” in the
financial schedules below. In addition, this press release includes
information regarding the company’s expected adjusted gross profit
margin and non-GAAP operating expenses for full year 2024 and the
company’s expected non-GAAP operating income (loss) for the fourth
quarter of 2024 and full year 2025. Evolus has not provided a
reconciliation of such forward-looking non-GAAP adjusted gross
profit margin, non-GAAP operating expenses or non-GAAP operating
(loss) because a reconciliation of such measures to forward-looking
GAAP gross profit margin, GAAP operating expenses and GAAP loss
from operations, respectively, the most directly comparable GAAP
financial measures, is not available without unreasonable efforts.
This is due to the inherent difficulty of forecasting the timing or
amount of various reconciling items that would impact the
forward-looking outlook for these non-GAAP financial measures that
have not yet occurred and/or cannot be reasonably predicted. Such
unavailable information could have a significant impact on Evolus’
GAAP financial results.
Forward-Looking Statements
This press release contains forward-looking statements as
defined under the Private Securities Litigation Reform Act of 1995
that involve risks and uncertainties, including statements about
future events, our business, financial condition, results of
operations and prospects, our industry and the regulatory
environment in which we operate. Any statements contained herein
that are not statements of historical or current facts are
forward-looking statements. In some cases, you can identify
forward-looking statements by terms such as “anticipate,”
“believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,”
“potential,” “predict,” “project,” “should,” “will,” “would” or the
negative of those terms, or other comparable terms intended to
identify statements about the future. The company’s forward-looking
statements include, but are not limited to, statements related to
anticipated product launches; market conditions and consumer
demand; timing of regulatory submissions and approvals; expansions
into new markets; the company’s long-term revenue outlook and its
financial outlook for 2024 and, in the case of non-GAAP operating
income, 2025; and the company’s cash position and expectations for
reaching profitability1 and funding the company’s operations.
The forward-looking statements included herein are based on our
current expectations, assumptions, estimates and projections, which
we believe to be reasonable, and are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by the forward-looking statements.
These risks and uncertainties, all of which are difficult or
impossible to predict accurately and many of which are beyond our
control, include, but are not limited to, uncertainties associated
with our ability to comply with the terms and conditions in the
Medytox Settlement Agreements, our ability to fund our future
operations or obtain financing to fund our operations, unfavorable
global economic conditions and the impact on consumer discretionary
spending, uncertainties related to customer and consumer adoption
of Jeuveau® and EvolysseTM, the efficiency and operability of our
digital platform, competition and market dynamics, our ability to
successfully launch and commercialize our products in new markets,
including the EvolysseTM dermal filler product line in the U.S.,
our ability to maintain regulatory approvals of Jeuveau® or obtain
regulatory approvals for new product candidates or indications, our
reliance on Symatese to achieve regulatory approval for the
EvolysseTM dermal filler product line in the U.S., and other risks
described in our filings with the Securities and Exchange
Commission, including in the section entitled “Risk Factors” in our
Annual Report on Form 10-K Form and our Quarterly Report on Form
10-Q for the quarter ended March 31, 2024 expected to be filed with
the Securities and Exchange Commission on or about May 7, 2024.
These filings can be accessed online at www.sec.gov. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. Except as
required by law, we undertake no obligation to update or revise any
forward-looking statements to reflect new information, changed
circumstances or unanticipated events. If we do update or revise
one or more of these statements, investors and others should not
conclude that we will make additional updates or corrections.
Jeuveau® and Nuceiva®, are registered trademarks and Evolysse™
is a trademark of Evolus, Inc. Hi-Pure™ is a trademark of Daewoong
Pharmaceutical Co, Ltd. Estyme® is a trademark of Symatese
Aesthetics S.A.S.
Evolus, Inc.
Consolidated Statements of
Operations and Comprehensive Loss
(Unaudited, in thousands,
except loss per share data)
Three Months Ended
March 31,
2024
2023
Revenue:
Product revenue, net
$
58,964
$
41,047
Service revenue
369
674
Total net revenues
59,333
41,721
Operating expenses:
Product cost of sales (excludes
amortization of intangible assets)
18,067
12,146
Selling, general and administrative
45,123
37,384
Research and development
2,078
1,381
Revaluation of contingent royalty
obligation payable to Evolus Founders
1,578
1,648
Depreciation and amortization
1,409
1,202
Total operating expenses
68,255
53,761
Loss from operations
(8,922
)
(12,040
)
Other income (expense):
Interest income
517
99
Interest expense
(4,702
)
(2,789
)
Other income (expense), net
45
(38
)
Loss before income taxes:
(13,062
)
(14,768
)
Income tax expense
47
23
Net loss
$
(13,109
)
$
(14,791
)
Other comprehensive loss:
Unrealized loss, net of tax
(130
)
(79
)
Comprehensive loss
$
(13,239
)
$
(14,870
)
Net loss per share, basic and diluted
$
(0.22
)
$
(0.26
)
Weighted-average shares outstanding used
to compute basic and diluted net loss per share
58,797
56,476
Evolus, Inc.
Summary of Consolidated
Balance Sheet Data
(Unaudited, in
thousands)
March 31, 2024
December 31, 2023
Cash and cash equivalents
$
96,958
$
62,838
Accounts receivable, net
34,240
30,529
Inventories
11,547
10,998
Prepaid expenses and other current
assets
7,520
5,580
Total current assets
150,265
112,421
Noncurrent assets
75,911
76,577
Total assets
$
226,176
$
188,998
Accounts payable and accrued expenses
$
36,270
$
38,084
Other current liabilities
10,531
10,207
Total current liabilities
46,801
48,291
Term loan, net of discount and issuance
costs
120,636
120,359
Other noncurrent liabilities
40,296
41,037
Total liabilities
$
207,733
$
209,687
Total stockholders’ equity
(deficit)
$
18,443
$
(20,689
)
Evolus, Inc.
Summary of Consolidated Cash
Flows
(Unaudited, in
thousands)
Three Months Ended March
31,
2024
2023
Net cash (used in) provided by:
Operating activities
$
(10,615
)
$
(20,587
)
*
Investing activities
(797
)
(511
)
Financing activities
45,662
(1,282
)
Effect of exchange rates on cash
(130
)
(79
)
Change in cash and cash equivalents
34,120
(22,459
)
Cash and cash equivalents, beginning of
period
62,838
53,922
Cash and cash equivalents, end of
period
$
96,958
$
31,463
*Includes a settlement payment of $5.0
million to Allergan/Medytox in the three months ended March 31,
2023.
Evolus, Inc.
Reconciliation of Gross Profit
Margin to Adjusted Gross Profit Margin
(Unaudited, in
thousands)
Three Months Ended March
31,
2024
2023
Total net revenues
$
59,333
$
41,721
Cost of sales:
Product cost of sales (excludes
amortization of intangible assets)
18,067
12,146
Amortization of distribution right
intangible asset
763
739
Total cost of sales
18,830
12,885
Gross profit
40,503
28,836
Gross profit margin
68.3
%
69.1
%
Add: Amortization of distribution right
intangible asset
763
739
Adjusted gross profit
$
41,266
$
29,575
Adjusted gross profit margin
69.5
%
70.9
%
Evolus, Inc.
Reconciliation of GAAP
Operating Expenses to
Non-GAAP Operating
Expenses
(Unaudited, in
thousands)
Three Months Ended March
31,
Three Months Ended December
31,
2024
2023
2023
GAAP operating expense
$
68,255
$
53,761
$
69,634
Adjustments:
Product cost of sales (excludes
amortization of intangible assets)
18,067
12,146
19,270
Revaluation of contingent royalty
obligation
1,578
1,648
(875
)
Stock-based compensation:
Included in selling, general and
administrative
4,863
3,167
4,119
Included in research and development
216
127
278
Depreciation and amortization
1,409
1,202
1,373
Non-GAAP operating expense
$
42,122
$
35,471
$
45,469
Evolus, Inc.
Reconciliation of GAAP (Loss)
from Operations to
Non-GAAP (Loss) from
Operations
(Unaudited, in
thousands)
Three Months Ended March
31,
Three Months Ended December
31,
2024
2023
2023
GAAP (loss) from operations
$
(8,922
)
$
(12,040
)
$
(8,635
)
Adjustments:
Revaluation of contingent royalty
obligation
1,578
1,648
(875
)
Stock-based compensation:
Included in selling, general and
administrative
4,863
3,167
4,119
Included in research and development
216
127
278
Depreciation and amortization
1,409
1,202
1,373
Non-GAAP (loss) from operations
$
(856
)
$
(5,896
)
$
(3,740
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240507947366/en/
Investor Contact: Nareg Sagherian
Vice President, Head of Global Investor Relations and Corporate
Communications Tel: 248-202-9267 Email: ir@evolus.com
Media Contact: Email:
media@evolus.com
Evolus (NASDAQ:EOLS)
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