- Q4 2022 Preliminary Unaudited Net Revenue of Approximately
$43.6 Million, Up 26% from Q4 2021
- Full-Year 2022 Preliminary Unaudited Net Revenue of
Approximately $148.6 Million, Up 49% Over 2021
- 2023 Net Revenue Expected to be $180 to $190 Million
- Projecting Profitability, Positive Non-GAAP Operating Income1
in Q4 2023
- Estimating Organic Net Revenue to Reach $500 Million by 2028, a
22% CAGR
Evolus, Inc. (NASDAQ: EOLS), a performance beauty company with a
customer-centric approach focused on delivering breakthrough
products, today announced its preliminary, unaudited net revenue as
of and for the fourth quarter and full-year ended December 31,
2022. The preliminary unaudited results described in this press
release are based on the most current information available to
management and are subject to change until the audit of the
company’s 2022 financial results is completed and the company
reports its full financial results for the fourth quarter and
full-year 2022, which is anticipated to occur in early March
2023.
“We are very pleased to announce record fourth quarter 2022
revenue that demonstrated continued strong customer adoption and
further market share gains,” said David Moatazedi, President and
Chief Executive Officer. “During the quarter, we continued to add
customer accounts and expand our consumer loyalty program, with
both metrics reaching all-time highs. This helped drive sales
growth well above the projected growth rate of our industry, making
Jeuveau® the fastest-growing neurotoxin in the U.S. for the second
consecutive year. Our focus on the millennial consumer, the most
rapidly-growing neurotoxin user segment, and our unique business
model represents a powerful formula that gives us the confidence to
project our total net revenue can reach $500 million by 2028, a
compound organic growth rate of 22%.”
Preliminary Unaudited 2022 Results and Key
Business Highlights
- Total net revenues for the fourth quarter of 2022 were
approximately $43.6 million, a 26% increase over the fourth quarter
of 2021, driven primarily by higher volumes from market share
gains, and a modestly higher average selling price.
- Total net revenues for the full year 2022 were approximately
$148.6 million, a 49% increase over full-year net revenues in 2021
and at the top end of the company’s guidance of $143 to $150
million.
- Accounts purchasing Jeuveau® increased by more than 700 in the
fourth quarter. During 2022, more than 2,500 new accounts were
added bringing the total number of accounts purchasing to date
since launch to more than 9,5002.
- Aided by the ‘Switch Your Tox’ promotional campaign, enrollment
in the Evolus Rewards consumer loyalty program grew more than 85%
in 2022 to end the year at approximately 505,000 consumers3.
- Cash and cash equivalents at December 31, 2022 were
approximately $53.9 million, reflecting strong sales growth and
cash collections, and prudent expense management. Fourth-quarter
cash activities included a royalty payment of $4.9 million, the
final settlement royalty payment at the higher royalty rate4 that
ended in September.
2023 Outlook and Long-Term
Aspirations
“Based on our success to date and a fundamentally strong
aesthetic neurotoxin market, we are projecting continued
above-market growth for Evolus in 2023,” Moatazedi continued. “We
expect to grow two to three times faster than the market in the
U.S. and expand our international presence, which will generate
total net revenue of between $180 million and $190 million. At the
same time, we are committed to the disciplined management of
operating expenses in order to achieve profitability in the fourth
quarter.
“The aesthetic neurotoxin market is currently underpenetrated
and poised for significant growth. Our focus on the cash-pay
market, and unique ability to offer a differentiated experience for
customers and consumers, has generated strong momentum since we
relaunched Jeuveau® two years ago and positions Evolus for further
success as we continue to transform our industry.”
2023 Guidance and Select
Milestones
- Total net revenues for 2023 are estimated to be between $180
million and $190 million.
- Non-GAAP operating expenses1 for 2023 are estimated to be
between $145 million and $150 million, which consists mainly of
continued investments in the growth of Jeuveau® in the U.S. plus
Nuceiva® launch expenses internationally.
- Evolus expects non-GAAP operating income1 to be positive in the
fourth quarter of 2023 and continues to project its existing cash
balance will fund current operations.
- On January 28, 2023, Evolus plans to present preliminary
results from its Phase II program evaluating an “extra strength”
dose of Jeuveau® for extended duration.
- During 2023, Evolus expects to broaden its international
footprint by expanding into additional European countries and
anticipates receiving marketing approval for Nuceiva® in
Australia.
- The second tranche of $50 million from the company’s existing
credit facility with Pharmakon Advisors, which is prioritized for
corporate development activities, remains undrawn and available
through December 31, 2023.
About Evolus, Inc.
Evolus (Nasdaq: EOLS) is a 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. Visit us at
www.evolus.com, and follow us on LinkedIn, Twitter, Instagram or
Facebook.
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 based on
our current expectations, assumptions, estimates and projections
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 facts may be deemed to be
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
the company’s financial outlook for 2023 and beyond, market share
opportunities and expectations regarding the company’s cash
position, including its ability to achieve positive non-GAAP
operating income with its existing cash balance and its product
portfolio plans.
The forward-looking statements included herein 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 Allergan/Medytox Settlement Agreements, our ability to fund
our future operations or obtain financing to fund our operations,
the impact of COVID-19 or other outbreaks of contagious diseases on
our business, unfavorable global economic conditions and the impact
on consumer discretionary spending, uncertainties related to
customer and consumer adoption of Jeuveau®, the efficiency and
operability of our digital platform, competition and market
dynamics, our ability to successfully launch and commercialize our
products in new markets, our ability to successfully broaden our
product portfolio, our ability to maintain regulatory approvals of
Jeuveau® or obtain regulatory approvals for new product candidates
or indications and other risks described in our filings with the
Securities and Exchange Commission, including in the section
entitled “Risk Factors” in our Quarterly Report on Form 10-Q for
the quarter ended September 30, 2022 filed with the Securities and
Exchange Commission on November 8, 2022. 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.
1Within this press release, “profitability” is defined as
achieving positive non-GAAP operating income. This press release
includes references to non-GAAP operating income and non-GAAP
operating expenses. “Non-GAAP operating income” excludes the
revaluation of contingent royalty obligations, stock-based
compensation expense, and depreciation and amortization. “Non-GAAP
operating expenses” are operating expenses excluding product cost
of sales, revaluation of contingent royalty obligations,
stock-based compensation expense, and depreciation and
amortization. Management believes that non-GAAP operating expenses
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 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 non-GAAP
operating income and non-GAAP operating expenses have limitations
as analytical tools and may differ from other companies reporting
similarly named measures. Non-GAAP measures should not be
considered superior to and are not intended to be considered in
isolation or as a substitute for GAAP financial measures. Due to
the forward-looking nature of the non-GAAP operating income and
non-GAAP operating expenses outlook disclosed in this press
release, no reconciliation of such non-GAAP measures to the
comparable GAAP financial measures is 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 non-GAAP operating income and
non-GAAP operating expenses, that have not yet occurred and/or
cannot be reasonably predicted. Such unavailable information could
have a significant impact on the company’s GAAP financial
results.
2Represents cumulative statistics from the launch of Jeuveau® in
May 2019 through December 31, 2022.
3Represents cumulative statistics from the launch of Evolus
Rewards in May 2020 through December 31, 2022.
4Royalty obligations to Allergan concluded on September 16,
2022, and royalty obligations to Medytox were reduced to a
mid-single-digit royalty percentage on all net sales through
September 16, 2032.
Jeuveau® and Nuceiva® are registered trademarks of Evolus, Inc.
Hi-Pure™ is a trademark of Daewoong Pharmaceutical Co, Ltd.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230118005311/en/
Investor/Media Contact: David K.
Erickson, Evolus, Inc. Vice President, Investor Relations Tel:
949-966-1798 Email: david.erickson@evolus.com
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