Evolus (EOLS) Reports Prelim Q4 Results

Evolus, Inc. (NASDAQ: EOLS), a global performance beauty company with a focus on building an aesthetic portfolio, today announced its preliminary, unaudited net revenue for the fourth quarter and full-year ended December 31, 2023. 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 2023 financial results is completed and the company reports its full financial results for the fourth quarter and full-year 2023, which is anticipated to occur in early March 2024.

“We believe the preliminary results of the fourth quarter and full-year 2023 are clear indications of our strong operational execution and significant market share gains resulting from deeper penetration of the neurotoxin market in the U.S. with Jeuveau® and expansion of our neurotoxin brand, Nuceiva®, in Europe,” said David Moatazedi, President and Chief Executive Officer of Evolus. “We are thrilled to have achieved record results and exceeded our guidance for the year, positioning us to carry this strong momentum and drive growth into 2024.

“In 2023, the Company achieved several significant milestones, including the expansion of our portfolio with the addition of late-stage dermal fillers expected to be launched in the U.S. and Europe in 2025, expanding our estimated total addressable market by 78% to approximately $6 billion,” Moatazedi continued. “In addition, we achieved a 30% increase in purchasing customers and a 55% increase in consumers in our loyalty program, and global expansion into three additional countries outside the U.S.”

Preliminary Unaudited 2023 Results and Key Business Highlights

• Total net revenues for the fourth quarter of 2023 were approximately $61 million, a 40% increase over the fourth quarter of 2022 and a 22% increase over the prior sequential quarter, driven primarily by higher volumes from market share gains.
• Total net revenues for full-year 2023 were approximately $202 million, a 36% percent increase over full-year net revenues in 2022 and above the top end of the company’s guidance of $194 to $198 million.
• Accounts purchasing Jeuveau® increased by a record high of more than 840 in the fourth quarter. This is 20% above the year-to-date quarterly average in our seasonally highest performance quarter. During 2023, more than 2,900 new accounts were added bringing the total number of accounts purchasing to date since launch to more than 12,400. The reorder rate among customers remains at approximately 70%.1
• Enrollment in the Evolus Rewards consumer loyalty program grew 55% in 2023 to end the year at approximately 750,000 consumers.2 This was aided by a record high of over 170,000 total redemptions in the fourth quarter, driven by continued demand from existing patients receiving repeat treatments which represented approximately 60% of the total treatments for the quarter, demonstrating sustained brand loyalty.
• As of December 31, 2023, Evolus had cash and cash equivalents of $62.8 million compared to $38.7 million on September 30, 2023, reflecting strong sales growth and cash collections, and prudent expense management. The cash balance at December 31, 2023 included additional borrowings of $25.0 million under the company’s credit facility with Pharmakon. Net of additional borrowing, cash used in the fourth quarter of 2023 was $0.9 million and notably lower than the third quarter of 2023, representing continued progress towards cash flow breakeven. Evolus continues to expect its existing liquidity will fully fund it to sustained profitability3 in 2025.

2024 Guidance and Select Milestones

• Total net revenues for 2024 are estimated to be between $255 million and $265 million, which represents 26% to 31% growth from preliminary 2023 results.
• Non-GAAP operating expenses for 2024 are estimated to be between $185 million and $190 million. As a result of the European Filler License agreement announced on December 20, 2023, the 2023 Operating Expense guidance range will increase from $153 million to $158 million to $160 million to $165 million. The issuance of 610,000 shares of the company’s common stock for the exclusive distribution rights for the UK and Europe will be recorded as IPR&D expense of up to $5.9 million (the Company issued 610,000 shares at $9.68 per share based on the closing price of the company’s common stock on December 20, 2023).
• Due to the capital efficient structure of our agreements with Symatese, the anticipated launch expenses associated with the Evolysse™ and Estyme® dermal filler lines in the U.S. and Europe, respectively, are not anticipated to impact our expectation of achieving profitability3 in 2025.
• Evolus expects non-GAAP operating income to be positive in 2025 and continues to project its existing liquidity will fund current operations.
• During 2024, Evolus expects to broaden its global footprint by expanding into additional European countries with Nuceiva®, most notably Australia and Spain.
• Evolus anticipates submitting Premarket Approval (PMA) applications for the first two Evolysse dermal filler products with FDA by mid-year 2024 and expects regulatory approvals for the remaining Estyme® dermal filler products in Europe in the second half of 2024.

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