Evolus Inc (EOLS) Q3 2024 Earnings Call Highlights: Revenue Surge Amid Market Challenges

In This Article:

  • Net Revenue: $61.1 million for Q3 2024, a 22% increase compared to Q3 2023.

  • Gross Margin: Reported at 68.9%; adjusted gross margin at 70.2%.

  • Operating Expenses: GAAP operating expenses were $76.6 million; non-GAAP operating expenses were $49.6 million.

  • SG&A Expenses: $52.5 million, including $5.2 million of noncash stock-based compensation.

  • Non-GAAP Operating Loss: $6.7 million for Q3 2024.

  • Cash Position: Ended Q3 2024 with $85 million in cash, down from $93.7 million at June 30, 2024.

  • Cash Burn: $8.7 million in Q3 2024.

  • 2024 Revenue Guidance: Narrowed to $260 million to $266 million, representing 29% to 32% growth year-over-year.

  • Adjusted Gross Profit Margin Guidance: 68% to 71% for 2024.

  • Non-GAAP Operating Expenses Guidance: Between $185 million and $190 million for 2024.

Release Date: November 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Evolus Inc (NASDAQ:EOLS) achieved a 22% increase in net revenue for the third quarter, reaching $61 million, which is significantly above market growth.

  • The company successfully expanded its product portfolio with the approval of Estyme in Europe, positioning itself as one of only five companies globally offering a portfolio of injectable aesthetic products.

  • Evolus Inc (NASDAQ:EOLS) added over 600 purchasing accounts in the third quarter and maintained a strong reorder rate of over 70%.

  • The Evolus Rewards program surpassed 1 million consumers enrolled, demonstrating strong consumer engagement and loyalty.

  • The company is on track to launch Evolysse in the U.S. by September 2025, with expectations of further market expansion and operating margin growth.

Negative Points

  • Evolus Inc (NASDAQ:EOLS) reported a non-GAAP operating loss of $6.7 million in the third quarter, compared to a non-GAAP operating income of $1.1 million in the second quarter.

  • The company's cash position decreased from $93.7 million at the end of June 2024 to $85 million at the end of the third quarter.

  • There is a noted softness in the filler market, which could impact the launch and performance of Evolysse.

  • The company anticipates that profitability may not be sustained every quarter in 2025 due to the launch of Evolysse.

  • Evolus Inc (NASDAQ:EOLS) narrowed its total net revenue guidance range, indicating potential caution or uncertainty in achieving the upper end of its previous forecast.

Q & A Highlights

Q: Can you explain how Evolysse will be launched using your digital platform and how it compares to your toxin product strategy? A: David Moatazedi, CEO, explained that Evolysse will leverage the existing digital platform, including the Evolus app and Evolus Rewards program. The platform will support pricing strategies and consumer loyalty, although specific pricing details were not disclosed. The cash-pay model allows for unique co-branded media opportunities, unlike competitors with therapeutic links.

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