- Total Net Revenue of $66.9 Million for Q2 2024, Up 36% from Q2
2023
- Raises Full-Year 2024 Net Revenue Guidance to $260 Million to
$270 Million, Representing Year-Over-Year Growth of 34% at the Top
End
- Improved Quarterly GAAP Operating Loss to $7.7 Million;
Delivered First Ever Quarter of Profitability1 with Positive
Non-GAAP Operating Income of $1.1 Million for Q2 2024
- Premarket Approval (PMA) Application Submitted to the U.S. Food
and Drug Administration (FDA) for Evolysse™ Lift and Evolysse™
Smooth Fillers, Approval and Launch Expected in Second Half of
2025
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 second quarter ended June 30,
2024, and provided a business update.
“We are thrilled to have achieved quarterly profitability1 for
the first time, driven by record revenue, demonstrating our
continued strong execution and unwavering commitment to building a
leadership position in the performance beauty industry,” said David
Moatazedi, President and Chief Executive Officer. “With record
quarterly revenue and all-time highs across key performance
indicators, we are raising our full-year 2024 net revenue guidance
to between $260 million and $270 million, equating to growth of
over 30% for our fifth consecutive year since
commercialization.”
“As we advance toward achieving our 2028 revenue goal of at
least $700 million, we are pleased with the continued strength of
Jeuveau®, the ongoing expansion of our global footprint into the
largest markets internationally, and the progress we’ve made in
expanding our portfolio with the recent submission of the PMA to
the FDA for our first two Evolysse™ dermal filler products,”
Moatazedi continued. “We anticipate approval and launch of these
fillers in the second half of 2025, along with the planned approval
of the Estyme® dermal filler products in Europe in late 2024 and
launch in 2025.”
Second Quarter 2024 Highlights and Recent
Developments
- The company’s key performance indicators maintained strong
momentum during the second quarter.
- Evolus added 770 new customer accounts in the quarter, bringing
the total number of customers purchasing since launch to
approximately 14,000. The reorder rate among customers was
approximately 70%.2
- Members in the Evolus Rewards consumer loyalty program grew by
over 78,000 to over 900,000.3
- Total Evolus Rewards redemptions for the quarter hit an
all-time high of nearly 190,000 driven by continued demand from
existing patients receiving repeat treatments at the rate of over
60%, which demonstrates sustained brand loyalty.
- The company recently announced positive topline results from a
U.S. pivotal nasolabial fold (NLF) study of dermal filler products
Evolysse™ Lift and Evolysse™ Smooth. Both the Evolysse™ Lift and
Evolysse™ Smooth dermal filler products met their primary endpoint
of non-inferiority and demonstrated statistical superiority to
Restylane-L at 6 months.
- The company recently submitted its Premarket Approval (PMA)
application to the U.S. FDA for the Evolysse™ Lift and Evolysse™
Smooth fillers, with approval and launch expected in the second
half of 2025.
- The company broadened its global footprint by commercially
launching Nuceiva® in Spain.
Second Quarter 2024 Financial Results
- Total net revenues for the second quarter of 2024 increased 36%
to $66.9 million from $49.3 million in the second quarter of 2023
driven primarily by higher volumes of Jeuveau®.
- Gross profit margin and adjusted gross profit margin were 70.3%
and 71.5%, 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 second quarter of 2024 were $74.6
million, compared to $68.3 million in the first quarter of
2024.
- Non-GAAP operating expenses for the second quarter of 2024 were
$46.7 million, compared to $42.1 million in the first quarter of
2024. 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 second quarter of 2024 was $7.7
million, compared to $8.9 million in the first quarter of 2024.
Non-GAAP income from operations in the second quarter of 2024 was
$1.1 million compared to a $0.9 million loss from operations in the
first quarter of 2024, representing continued progress toward
achieving sustained profitability 1. Non-GAAP income (loss) from
operations excludes stock-based compensation expense, revaluation
of the contingent royalty obligation, and depreciation and
amortization.
- Cash and cash equivalents at June 30, 2024 were $93.7 million
compared to $97.0 million at March 31, 2024. The cash balance
includes the receipt of $4.2 million of remaining net proceeds from
the overallotment option for our public offering in March 2024. Net
cash used for operating activities in the second quarter of 2024
was lower than the first quarter of 2024, representing continued
progress toward cash flow breakeven.
Outlook
- Evolus now expects total net revenues for the full year 2024 to
be between $260 million and $270 million, representing
year-over-year growth of 34% 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.
- Evolus expects to continue expanding into additional countries
with Nuceiva®, most notably the company launched in Australia in Q3
2024.
- Evolus expects 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 13747672. 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, X, Instagram or
Facebook.
1 “Profitability” is not a measure presented in accordance with
GAAP. Within this press release, “profitability” is defined as
achieving positive non-GAAP operating income. See “Use of Non-GAAP
Financial Measures” below for more information on the company’s use
and definitions of non-GAAP measures.
2 Represents cumulative statistics from the launch of Jeuveau®
in May 2019 through June 30, 2024.
3 Represents cumulative statistics from the launch of Evolus
Rewards in May 2020 through June 30, 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 income (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 income (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 income (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 income
(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 income (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 income (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 Income (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
Quarterly Report on Form 10-Q for the quarter ended March 31, 2024,
as filed with the Securities and Exchange Commission on May 7,
2024, and our Quarterly Report on Form 10-Q for the quarter ended
June 30, 2024 expected to be filed with the Securities and Exchange
Commission on or about July 31, 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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Revenue:
Product revenue, net
$
66,222
$
48,680
$
125,186
$
89,727
Service revenue
687
666
1,056
1,340
Total net revenues
66,909
49,346
126,242
91,067
Operating expenses:
Product cost of sales (excludes
amortization of intangible assets)
19,077
14,712
37,144
26,858
Selling, general and administrative
50,152
41,174
95,275
78,558
Research and development
2,350
1,208
4,428
2,589
In-process research and development
—
4,441
—
4,441
Revaluation of contingent royalty
obligation payable to Evolus Founders
1,605
1,682
3,183
3,330
Depreciation and amortization
1,427
1,247
2,836
2,449
Total operating expenses
74,611
64,464
142,866
118,225
Loss from operations
(7,702
)
(15,118
)
(16,624
)
(27,158
)
Other income (expense):
Interest income
1,029
164
1,546
263
Interest expense
(4,696
)
(3,182
)
(9,398
)
(5,971
)
Other income (expense), net
62
19
107
(19
)
Loss before income taxes:
(11,307
)
(18,117
)
(24,369
)
(32,885
)
Income tax expense
43
23
90
46
Net loss
$
(11,350
)
$
(18,140
)
$
(24,459
)
$
(32,931
)
Other comprehensive loss:
Unrealized loss, net of tax
(44
)
(52
)
(174
)
(131
)
Comprehensive loss
$
(11,394
)
$
(18,192
)
$
(24,633
)
$
(33,062
)
Net loss per share, basic and diluted
$
(0.18
)
$
(0.32
)
$
(0.40
)
$
(0.58
)
Weighted-average shares outstanding used
to compute basic and diluted net loss per share
62,725
56,920
60,761
56,699
Evolus, Inc.
Summary of Consolidated
Balance Sheet Data
(Unaudited, in
thousands)
June 30, 2024
December 31, 2023
Cash and cash equivalents
$
93,671
$
62,838
Accounts receivable, net
43,149
30,529
Inventories
13,381
10,998
Prepaid expenses and other current
assets
7,933
8,056
Total current assets
158,134
112,421
Noncurrent assets
75,638
76,577
Total assets
$
233,772
$
188,998
Accounts payable and accrued expenses
$
43,071
$
38,084
Other current liabilities
11,047
10,207
Total current liabilities
54,118
48,291
Term loan, net of discount and issuance
costs
120,918
120,359
Other noncurrent liabilities
39,422
41,037
Total liabilities
$
214,458
$
209,687
Total stockholders’ equity
(deficit)
$
19,314
$
(20,689
)
Evolus, Inc.
Summary of Consolidated Cash
Flows
(Unaudited, in
thousands)
Six Months Ended June
30,
Three Months Ended June
30,
2024
2023
2024
Net cash (used in) provided by:
Operating activities
$
(17,085
)
$
(33,897
)
*
$
(6,470
)
Investing activities
(2,051
)
(727
)
(1,254
)
Financing activities
50,143
22,538
4,481
Effect of exchange rates on cash
(174
)
(131
)
(44
)
Change in cash and cash equivalents
30,833
(12,217
)
(3,287
)
Cash and cash equivalents, beginning of
period
62,838
53,922
96,958
Cash and cash equivalents, end of
period
$
93,671
$
41,705
$
93,671
*
Includes a settlement payment of $5.0
million to Allergan/Medytox in the six months ended June 30,
2023.
Evolus, Inc.
Reconciliation of Gross Profit
Margin to Adjusted Gross Profit Margin
(Unaudited, in
thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Total net revenues
$
66,909
$
49,346
$
126,242
$
91,067
Cost of sales:
Product cost of sales (excludes
amortization of intangible assets)
19,077
14,712
37,144
26,858
Amortization of distribution right
intangible asset
764
739
1,527
1,477
Total cost of sales
19,841
15,451
38,671
28,335
Gross profit
47,068
33,895
87,571
62,732
Gross profit margin
70.3
%
68.7
%
69.4
%
68.9
%
Add: Amortization of distribution right
intangible asset
764
739
1,527
1,477
Adjusted gross profit
$
47,832
$
34,634
$
89,098
$
64,209
Adjusted gross profit margin
71.5
%
70.2
%
70.6
%
70.5
%
Evolus, Inc.
Reconciliation of GAAP
Operating Expenses to
Non-GAAP Operating
Expenses
(Unaudited, in
thousands)
Three Months Ended June
30,
Six Months Ended June
30,
Three Months Ended March
31,
2024
2023
2024
2023
2024
GAAP operating expense
$
74,611
$
64,464
$
142,866
$
118,225
$
68,255
Adjustments:
Product cost of sales (excludes
amortization of intangible assets)
19,077
14,712
37,144
26,858
18,067
Revaluation of contingent royalty
obligation
1,605
1,682
3,183
3,330
1,578
Stock-based compensation:
Included in selling, general and
administrative
5,552
3,983
10,415
7,150
4,863
Included in research and development
232
188
448
315
216
Depreciation and amortization
1,427
1,247
2,836
2,449
1,409
Non-GAAP operating expense
$
46,718
$
42,652
$
88,840
$
78,123
$
42,122
Evolus, Inc.
Reconciliation of GAAP (Loss)
from Operations to
Non-GAAP Income (Loss) from
Operations
(Unaudited, in
thousands)
Three Months Ended June
30,
Six Months Ended June
30,
Three Months Ended March
31,
2024
2023
2024
2023
2024
GAAP (loss) from operations
$
(7,702
)
$
(15,118
)
$
(16,624
)
$
(27,158
)
$
(8,922
)
Adjustments:
Revaluation of contingent royalty
obligation
1,605
1,682
3,183
3,330
1,578
Stock-based compensation:
Included in selling, general and
administrative
5,552
3,983
10,415
7,150
4,863
Included in research and development
232
188
448
315
216
Depreciation and amortization
1,427
1,247
2,836
2,449
1,409
Non-GAAP income (loss) from
operations
$
1,114
$
(8,018
)
$
258
$
(13,914
)
$
(856
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240731391926/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
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