Release Date: July 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Evolus Inc (EOLS, Financial) achieved profitability in the second quarter of 2024, two quarters earlier than anticipated.
- The company reported a 36% year-over-year revenue growth, with second-quarter revenues reaching $66.9 million.
- Jeuveau's market share increased to 13%, demonstrating strong demand and brand recognition.
- Evolus Inc (EOLS) raised its full-year 2024 net revenue guidance to between $260 million and $270 million, indicating confidence in continued growth.
- The company is preparing for a transformative year in 2025 with the commercialization of its novel dermal filler line, Evolysse, and has submitted a premarket approval application to the FDA.
Negative Points
- Operating expenses increased in the second quarter, with GAAP operating expenses rising to $74.6 million from $68.3 million in the first quarter.
- Despite achieving profitability in Q2, the company anticipates not being profitable in the third quarter due to seasonal revenue decreases.
- The filler market is experiencing lower growth rates compared to historical trends, which could impact future sales.
- International revenue contribution remains low, with over 95% of revenues coming from the US market.
- The company faces potential competition from new entrants in the toxin market, which could impact market share and growth.
Q & A Highlights
Q: How is Evolus positioning itself in the filler market, and what are the expectations for its growth?
A: David Moatazedi, CEO, explained that the filler market is currently experiencing low to mid-single-digit growth in the US. Evolus anticipates this market will benefit from trends such as GLP usage, which could boost demand. The Evolysse line is differentiated by its manufacturing process and clinical data, and Evolus expects it to capture significant market share upon its launch.
Q: Are there any changes in marketing strategies due to increased competition in the toxin market?
A: David Moatazedi, CEO, stated that Evolus maintains its strategic focus on cash-pay advantages and consumer loyalty programs. Despite market promotions, Evolus continues to grow at a healthy rate, driven by its disciplined approach and unique value proposition.
Q: Can you elaborate on the differentiation of Evolus's fillers compared to existing products?
A: David Moatazedi, CEO, highlighted that Evolus's fillers are manufactured under freezing cold temperatures, preserving the natural HA strand, which is a significant differentiator. The clinical data supports the product's efficacy, and the company plans to provide more details at their upcoming Investor Day.
Q: What impact will the appointment of Al White to the Board have on Evolus?
A: David Moatazedi, CEO, noted that Al White brings valuable experience from his success at Cooper Companies. His expertise in geographic expansion, profitability, and portfolio building will be instrumental as Evolus enters its next growth phase.
Q: What is the timeline for the approval and launch of Evolus's filler products?
A: Rui Avelar, Chief Medical Officer, explained that the PMA process for devices like fillers does not have a fixed timeline like drugs. It involves a back-and-forth process with the FDA, typically taking about a year or longer. Evolus expects approval in the second half of 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
