Earning Date, Transcript Summary & Report

Profitability Achievement Ahead of Schedule: Achieved meaningful profitability in Q4 2024 and for the full year, one year ahead of goal.

Sustained Revenue Growth: Revenue growth above 30% for the fifth consecutive year, solidifying position as the fastest-growing brand in the category.

Market Share and Revenue Surge: US market share approaching 14%, with revenue exceeding the top end of original guidance.

Regulatory Approval Expansion: Obtained CE Mark Approval for injectable gels, followed by FDA approval in February 2025, expanding total addressable market by 78%.

New Account Expansion: Added over 2,900 new accounts in 2024, totaling more than 15,000 purchasing accounts, representing half of the toxin market.

User Growth Milestone: Evolys Rewards surpassed 1.1 million users, growing 40% over the prior year.

International Market Expansion: International business showed strong growth, with UK market share comparable to the second year in the US and expansion into Australia and Spain.

Consistent Revenue and Expense Management: Provided revenue and expense guidance for the third consecutive year, exceeding top-line revenue guidance while managing expenses prudently.

Evolys Commercialization Plans: Launch of Evolys is a top priority, with preparations underway for commercialization in Q2 2025.

Innovative Injectable Gel Approval: Evolys injectable gels approved with unique Coldex technology, offering a differentiated clinical package and first-in-class label.

Operating Leverage Achievement: Achieved significant operating leverage with a revenue CAGR of 50% compared to non-GAAP operating expense CAGR of 11%.

Gross Margin Consistency: Reported gross margin for Q4 at 66.7%, with adjusted gross margin at 67.5%, consistent with prior year.

Q4 Non-GAAP Income Improvement: Non-GAAP operating income in Q4 was $6.7 million, a significant improvement from the previous year, enabling full-year profitability.

Strong Cash Position: Ended Q4 with $87 million in cash, reflecting strong sales growth and efficient cash collection.

Projected Revenue Growth: Expecting total net revenues of $345 million to $355 million in 2025, representing 30% to 33% growth from 2024.

Earnings Miss Reported: Evolus, Inc. missed earnings expectations with a reported EPS of $0.01, falling short of the expected $0.02.

Profitability Amid Growth Challenges: Despite achieving profitability for the full year, the company faced challenges in maintaining consistent growth, as indicated by the need for increased operating expenses in 2025 to support the launch of Evolys.

Evolys Revenue Contribution Outlook: The anticipated revenue contribution from Evolys injectable HA gels in 2025 is only expected to be 8% to 10% of total revenue, indicating a slower ramp-up than hoped.

Rising Operating Expenses: Operating expenses for 2024 increased significantly, with GAAP operating expenses totaling $216.7 million compared to $186.8 million in 2023, reflecting a growing cost structure that may impact future profitability.

Cash Flow Concerns: The company anticipates a use of cash in Q1 2025 due to seasonality and timing of expenses, which could strain liquidity in the short term.

Revenue Growth Uncertainty: While the company projects strong revenue growth, the reliance on the second half of 2025 for the majority of revenue from Evolys may create uncertainty in achieving full-year targets.