Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Evolus Inc (EOLS, Financial) achieved a 22% increase in net revenue for the third quarter, reaching $61 million, which is significantly above market growth.
- The company successfully expanded its product portfolio with the approval of Estyme in Europe, positioning itself as one of only five companies globally offering a portfolio of injectable aesthetic products.
- Evolus Inc (EOLS) added over 600 purchasing accounts in the third quarter and maintained a strong reorder rate of over 70%.
- The Evolus Rewards program surpassed 1 million consumers enrolled, demonstrating strong consumer engagement and loyalty.
- The company is on track to launch Evolysse in the U.S. by September 2025, with expectations of further market expansion and operating margin growth.
Negative Points
- Evolus Inc (EOLS) reported a non-GAAP operating loss of $6.7 million in the third quarter, compared to a non-GAAP operating income of $1.1 million in the second quarter.
- The company's cash position decreased from $93.7 million at the end of June 2024 to $85 million at the end of the third quarter.
- There is a noted softness in the filler market, which could impact the launch and performance of Evolysse.
- The company anticipates that profitability may not be sustained every quarter in 2025 due to the launch of Evolysse.
- Evolus Inc (EOLS) narrowed its total net revenue guidance range, indicating potential caution or uncertainty in achieving the upper end of its previous forecast.
Q & A Highlights
Q: Can you explain how Evolysse will be launched using your digital platform and how it compares to your toxin product strategy?
A: David Moatazedi, CEO, explained that Evolysse will leverage the existing digital platform, including the Evolus app and Evolus Rewards program. The platform will support pricing strategies and consumer loyalty, although specific pricing details were not disclosed. The cash-pay model allows for unique co-branded media opportunities, unlike competitors with therapeutic links.
Q: Why did you narrow the guidance range for 2024, and is there any concern about meeting targets?
A: Sandra Beaver, CFO, clarified that narrowing the guidance is typical as the year progresses and not indicative of any concerns. The company remains confident in achieving the revised guidance, reflecting better visibility with only one quarter remaining.
Q: What are the current trends in the toxin market, and how are your marketing efforts performing?
A: David Moatazedi, CEO, noted that the toxin market remains resilient with typical seasonal trends. Evolus continues to see growth and strong consumer engagement, with the fourth quarter expected to be the strongest due to holiday season demand.
Q: How are recent pricing trends and market share for Jeuveau, and what is the outlook for 2025?
A: Sandra Beaver, CFO, reported stable pricing trends with potential slight increases and a market share of around 13%. The company expects continued growth in the toxin market, projecting mid- to high single-digit growth rates.
Q: How does the decline in JUVEDERM sales affect your filler launch strategy?
A: David Moatazedi, CEO, acknowledged the softness in the filler market but emphasized the significant opportunity due to the large market size. Evolysse's differentiated cold HA technology is expected to attract interest, and the company remains optimistic about its growth potential.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
