Evolus Reports Second Quarter 2024 Results and Raises Full Year Revenue Guidance
-
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
“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
“As we advance toward achieving our 2028 revenue goal of at least
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 atMarch 31, 2024 . The cash balance includes the receipt of$4.2 million of remaining net proceeds from the overallotment option for our public offering inMarch 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 inAustralia in Q3 2024. -
Evolus expects regulatory approvals for the remaining Estyme® dermal filler products inEurope 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
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 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
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
|
|
Six Months Ended
|
||||||||||||
|
|
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 |
|
Summary of Consolidated Balance Sheet Data (Unaudited, in thousands) |
|||||||
|
|
|
|
||||
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 |
) |
|
Summary of Consolidated Cash Flows (Unaudited, in thousands) |
|||||||||||
|
Six Months Ended |
|
Three Months Ended |
||||||||
|
|
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 |
Reconciliation of Gross Profit Margin to Adjusted Gross Profit Margin (Unaudited, in thousands) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
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 |
% |
Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses (Unaudited, in thousands) |
|||||||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
|
Three Months Ended |
|||||||||||||||
|
|
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 |
||||||
Reconciliation of GAAP (Loss) from Operations to Non-GAAP Income (Loss) from Operations (Unaudited, in thousands) |
|||||||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
|
Three Months Ended |
|||||||||||||||
|
|
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:
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: