-
Total Net Revenue of
$61.1 Million for Q3 2024, Up 22% from Q3 2023; Year-To-Date Growth of 33% -
Received Approval for Estyme® Injectable Hyaluronic Acid (HA) Gels in the
European Union ; Experience Program to Launch Immediately with Full Launch Expected in the Second Half of 2025 -
Premarket Approval (PMA) Application for Evolysse™ Form and Evolysse™ Smooth Injectable HA Gels Currently Under Review by the
U.S. Food and Drug Administration (FDA) with Approval and Launch Expected bySeptember 2025 -
Narrows Full-Year 2024 Net Revenue Guidance to
$260 Million to$266 Million , Representing Year-Over-Year Growth of 29% to 32% - Reaffirms Non-GAAP Profitability1 in Q4 2024 and Full Year 2025
-
Remains on Track to Achieve Projected Total Net Revenue Goal of At Least
$700 Million and Operating Margin of At Least 20% by 2028
“Our third quarter results underscore the momentum we’ve been building throughout the year,” said
“Last week, we received approval for Estyme® in the
Third Quarter 2024 Highlights and Recent Developments
-
The company’s key performance indicators demonstrated continued strong momentum during the third quarter.
Evolus added over 600 new customer accounts in the quarter, bringing the total number of customers purchasing since launch to nearly 14,500. The reorder rate among customers was approximately 70%2.-
Members in the Evolus Rewards™ consumer loyalty program grew by over 72,000 to approximately 975,0003. As of
November 2024 , the Evolus Rewards™ consumer loyalty program has surpassed 1 million enrolled consumers. -
Total Evolus Rewards™ redemptions for the quarter hit an all-time high of over 190,0003 with existing patients receiving repeat treatments at the rate of approximately 65%, which demonstrates growing consumer adoption and utilization. As of
November 2024 , total Evolus Rewards™ redemptions have surpassed 2 million reflective of sustained brand loyalty. - Launched Club Evolus™, the first subscription-based program by a neurotoxin manufacturer, in early November.
-
Evolus received approval for its Estyme® injectable hyaluronic acid (HA) gels in theEuropean Union , with an experience program to launch immediately, and full launch expected in the second half of 2025.
Third Quarter 2024 Financial Results
-
Total net revenues for the third quarter of 2024 increased 22% to
$61.1 million from$50.0 million in the third quarter of 2023 driven primarily by higher volumes of Jeuveau®. - Gross profit margin and adjusted gross profit margin were 68.9% and 70.2%, respectively. Adjusted gross profit margin, which excludes amortization of intangible assets, aligns with company guidance for the full year, as noted below.
-
Operating expenses for the third quarter of 2024 were
$76.6 million , compared to$74.6 million in the second quarter of 2024. -
Non-GAAP operating expenses for the third quarter of 2024 were
$49.6 million , compared to$46.7 million in the second 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 third quarter of 2024 was
$15.5 million , compared to$7.7 million in the second quarter of 2024. Non-GAAP loss from operations in the third quarter of 2024 was$6.7 million compared to a$1.1 million income from operations in the second quarter of 2024. The decline in operating income quarter over quarter was primarily driven by typical seasonality of revenue. 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
September 30, 2024 were$85.0 million compared to$93.7 million atJune 30, 2024 , representing a single-digit cash use for the quarter and continued progress toward cash generation.
Outlook
-
Evolus narrows its full year total net revenue guidance to$260 million to$266 million , representing year-over-year growth of 29% to 32% from 2023 results and well above the estimated growth rate of the aesthetic neurotoxin market. - 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. -
PMA application for Evolysse™ Form and Evolysse™ Smooth injectable HA gels currently under review by the
U.S. FDA with approval and launch expected bySeptember 2025 . -
The company projects total net revenue of 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 novel line of injectable hyaluronic acid gels beginning in 2025. -
Evolus continues to expect to expand operating margins by leveraging its highly synergistic, existing infrastructure, with a target of at least 20% by 2028.
Conference Call Information
Management will host a conference call and live webcast to discuss Evolus’ financial results today at
Following the completion of the call, an audio replay can be accessed for 48 hours by dialing (877) 660-6853 (
About
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
3 Represents cumulative statistics from the launch of Evolus Rewards™ in
Use of Non-GAAP Financial Measures
Evolus’ financial results are prepared in accordance with accounting principles generally accepted in
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.
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 Evolysse™, 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 Evolysse™ Hyaluronic Acid (HA) gels in the
Jeuveau® and Nuceiva®, are registered trademarks and Evolysse™ is a trademark of
Hi-Pure™ is a trademark of Daewoong Pharmaceutical Co, Ltd.
Estyme® is a trademark of Symatese Aesthetics S.A.S.
|
|||||||||||||||
Consolidated Statements of Operations and Comprehensive Loss |
|||||||||||||||
(Unaudited, in thousands, except loss per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
|
|
|
|
||||||||
Product revenue, net |
$ |
60,164 |
|
|
$ |
49,323 |
|
|
$ |
185,350 |
|
|
$ |
139,050 |
|
Service revenue |
|
921 |
|
|
|
696 |
|
|
|
1,977 |
|
|
|
2,036 |
|
Total net revenues |
|
61,085 |
|
|
|
50,019 |
|
|
|
187,327 |
|
|
|
141,086 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Product cost of sales (excludes amortization of intangible assets) |
|
18,223 |
|
|
|
15,431 |
|
|
|
55,367 |
|
|
|
42,289 |
|
Selling, general and administrative |
|
52,506 |
|
|
|
43,328 |
|
|
|
147,781 |
|
|
|
121,886 |
|
Research and development |
|
2,314 |
|
|
|
1,587 |
|
|
|
6,742 |
|
|
|
4,176 |
|
In-process research and development |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,441 |
|
Revaluation of contingent royalty obligation payable to Evolus Founders |
|
2,428 |
|
|
|
1,802 |
|
|
|
5,611 |
|
|
|
5,132 |
|
Depreciation and amortization |
|
1,087 |
|
|
|
1,311 |
|
|
|
3,923 |
|
|
|
3,760 |
|
Total operating expenses |
|
76,558 |
|
|
|
63,459 |
|
|
|
219,424 |
|
|
|
181,684 |
|
Loss from operations |
|
(15,473 |
) |
|
|
(13,440 |
) |
|
|
(32,097 |
) |
|
|
(40,598 |
) |
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest income |
|
928 |
|
|
|
306 |
|
|
|
2,474 |
|
|
|
569 |
|
Interest expense |
|
(4,764 |
) |
|
|
(3,786 |
) |
|
|
(14,162 |
) |
|
|
(9,757 |
) |
Other income (expense), net |
|
273 |
|
|
|
21 |
|
|
|
380 |
|
|
|
2 |
|
Loss before income taxes: |
|
(19,036 |
) |
|
|
(16,899 |
) |
|
|
(43,405 |
) |
|
|
(49,784 |
) |
Income tax expense |
|
134 |
|
|
|
24 |
|
|
|
224 |
|
|
|
70 |
|
Net loss |
$ |
(19,170 |
) |
|
$ |
(16,923 |
) |
|
$ |
(43,629 |
) |
|
$ |
(49,854 |
) |
Other comprehensive loss: |
|
|
|
|
|
|
|
||||||||
Unrealized loss, net of tax |
|
(88 |
) |
|
|
(138 |
) |
|
|
(262 |
) |
|
|
(269 |
) |
Comprehensive loss |
$ |
(19,258 |
) |
|
$ |
(17,061 |
) |
|
$ |
(43,891 |
) |
|
$ |
(50,123 |
) |
Net loss per share, basic and diluted |
$ |
(0.30 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.71 |
) |
|
$ |
(0.88 |
) |
Weighted-average shares outstanding used to compute basic and diluted net loss per share |
|
63,149 |
|
|
|
57,023 |
|
|
|
61,563 |
|
|
|
56,808 |
|
|
|||||||
Summary of Consolidated Balance Sheet Data |
|||||||
(Unaudited, in thousands) |
|||||||
|
|
|
|
||||
Cash and cash equivalents |
$ |
85,035 |
|
$ |
62,838 |
|
|
Accounts receivable, net |
|
44,642 |
|
|
|
30,529 |
|
Inventories |
|
14,892 |
|
|
|
10,998 |
|
Prepaid expenses and other current assets |
|
5,792 |
|
|
|
8,056 |
|
Total current assets |
|
150,361 |
|
|
|
112,421 |
|
Noncurrent assets |
|
79,247 |
|
|
|
76,577 |
|
Total assets |
$ |
229,608 |
|
|
$ |
188,998 |
|
Accounts payable and accrued expenses |
$ |
48,785 |
|
|
$ |
38,084 |
|
Other current liabilities |
|
12,030 |
|
|
|
10,207 |
|
Total current liabilities |
|
60,815 |
|
|
|
48,291 |
|
Term loan, net of discount and issuance costs |
|
121,208 |
|
|
|
120,359 |
|
Other noncurrent liabilities |
|
41,695 |
|
|
|
41,037 |
|
Total liabilities |
$ |
223,718 |
|
|
$ |
209,687 |
|
Total stockholders’ equity (deficit) |
$ |
5,890 |
|
|
$ |
(20,689 |
) |
|
|||||||||||
Summary of Consolidated Cash Flows |
|||||||||||
(Unaudited, in thousands) |
|||||||||||
|
Nine Months Ended
|
|
Three Months
|
||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
Net cash (used in) provided by: |
|
|
|
|
|
||||||
Operating activities |
$ |
(22,807 |
) |
|
$ |
(34,821 |
) |
* |
$ |
(5,722 |
) |
Investing activities |
|
(3,461 |
) |
|
|
(1,266 |
) |
|
|
(1,410 |
) |
Financing activities |
|
48,727 |
|
|
|
21,119 |
|
|
|
(1,416 |
) |
Effect of exchange rates on cash |
|
(262 |
) |
|
|
(269 |
) |
|
|
(88 |
) |
Change in cash and cash equivalents |
|
22,197 |
|
|
|
(15,237 |
) |
|
|
(8,636 |
) |
Cash and cash equivalents, beginning of period |
|
62,838 |
|
|
|
53,922 |
|
|
|
93,671 |
|
Cash and cash equivalents, end of period |
$ |
85,035 |
|
|
$ |
38,685 |
|
|
$ |
85,035 |
|
*Includes a settlement payment of |
|
|||||||||||||||
Reconciliation of Gross Profit Margin to Adjusted Gross Profit Margin |
|||||||||||||||
(Unaudited, in thousands) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Total net revenues |
$ |
61,085 |
|
|
$ |
50,019 |
|
|
$ |
187,327 |
|
|
$ |
141,086 |
|
Cost of sales: |
|
|
|
|
|
|
|
||||||||
Product cost of sales (excludes amortization of intangible assets) |
|
18,223 |
|
|
|
15,431 |
|
|
|
55,367 |
|
|
|
42,289 |
|
Amortization of distribution right intangible asset |
|
763 |
|
|
|
738 |
|
|
|
2,290 |
|
|
|
2,216 |
|
Total cost of sales |
|
18,986 |
|
|
|
16,169 |
|
|
|
57,657 |
|
|
|
44,505 |
|
Gross profit |
|
42,099 |
|
|
|
33,850 |
|
|
|
129,670 |
|
|
|
96,581 |
|
Gross profit margin |
|
68.9 |
% |
|
|
67.7 |
% |
|
|
69.2 |
% |
|
|
68.5 |
% |
Add: Amortization of distribution right intangible asset |
|
763 |
|
|
|
738 |
|
|
|
2,290 |
|
|
|
2,216 |
|
Adjusted gross profit |
$ |
42,862 |
|
|
$ |
34,588 |
|
|
$ |
131,960 |
|
|
$ |
98,797 |
|
Adjusted gross profit margin |
|
70.2 |
% |
|
|
69.1 |
% |
|
|
70.4 |
% |
|
|
70.0 |
% |
|
|||||||||||||||||||
Reconciliation of GAAP Operating Expenses to |
|||||||||||||||||||
Non-GAAP Operating Expenses |
|||||||||||||||||||
(Unaudited, in thousands) |
|||||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|
Three
|
||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
GAAP operating expense |
$ |
76,558 |
|
$ |
63,459 |
|
$ |
219,424 |
|
$ |
181,684 |
|
$ |
74,611 |
|||||
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Product cost of sales (excludes amortization of intangible assets) |
|
18,223 |
|
|
|
15,431 |
|
|
|
55,367 |
|
|
|
42,289 |
|
|
|
19,077 |
|
Revaluation of contingent royalty obligation |
|
2,428 |
|
|
|
1,802 |
|
|
|
5,611 |
|
|
|
5,132 |
|
|
|
1,605 |
|
Stock-based compensation: |
|
|
|
|
|
|
|
|
|
||||||||||
Included in selling, general and administrative |
|
4,955 |
|
|
|
4,295 |
|
|
|
15,370 |
|
|
|
11,445 |
|
|
|
5,552 |
|
Included in research and development |
|
265 |
|
|
|
301 |
|
|
|
713 |
|
|
|
616 |
|
|
|
232 |
|
Depreciation and amortization |
|
1,087 |
|
|
|
1,311 |
|
|
|
3,923 |
|
|
|
3,760 |
|
|
|
1,427 |
|
Non-GAAP operating expense |
$ |
49,600 |
|
|
$ |
40,319 |
|
|
$ |
138,440 |
|
|
$ |
118,442 |
|
|
$ |
46,718 |
|
|
|||||||||||||||||||
Reconciliation of GAAP (Loss) from Operations to |
|||||||||||||||||||
Non-GAAP Income (Loss) from Operations |
|||||||||||||||||||
(Unaudited, in thousands) |
|||||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|
Three
|
||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
GAAP (loss) from operations |
$ |
(15,473 |
) |
|
$ |
(13,440 |
) |
|
$ |
(32,097 |
) |
|
$ |
(40,598 |
) |
|
$ |
(7,702 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Revaluation of contingent royalty obligation |
|
2,428 |
|
|
|
1,802 |
|
|
|
5,611 |
|
|
|
5,132 |
|
|
|
1,605 |
|
Stock-based compensation: |
|
|
|
|
|
|
|
|
|
||||||||||
Included in selling, general and administrative |
|
4,955 |
|
|
|
4,295 |
|
|
|
15,370 |
|
|
|
11,445 |
|
|
|
5,552 |
|
Included in research and development |
|
265 |
|
|
|
301 |
|
|
|
713 |
|
|
|
616 |
|
|
|
232 |
|
Depreciation and amortization |
|
1,087 |
|
|
|
1,311 |
|
|
|
3,923 |
|
|
|
3,760 |
|
|
|
1,427 |
|
Non-GAAP income (loss) from operations |
$ |
(6,738 |
) |
|
$ |
(5,731 |
) |
|
$ |
(6,480 |
) |
|
$ |
(19,645 |
) |
|
$ |
1,114 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106023548/en/
Investor Contact:
Vice President, Head of Global Investor Relations and Corporate Communications
Tel: 248-202-9267
Email: ir@evolus.com
Media Contact:
Email: media@evolus.com
Source: