Evolus, Inc.

Good afternoon, ladies and gentlemen, and welcome to the Q2 2020 Avalos conference call. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone. If anyone should require assistance during the conference, please press star then zero. As a reminder, today's conference is being recorded. I would now like to introduce your host for today's conference, Mr. Ashwin Agarwal, Vice President of Finance, Investor Relations, and Treasury. Sir, please go ahead.

Thank you, Operator, and welcome to everyone participating on today's call. This call is also being broadcast live over the internet at evelus.com, and a replay of the call will be available on the company's website for 30 days. With me on today's call are David Moatazedi, President and Chief Executive Officer, Lauren Silvernail, Chief Financial Officer and EVP Corporate Development, Mike Jafar, Chief Marketing Officer, Lar Chief Medical Officer and Head of R&D, and Jeff Plumer, Vice President of Legal. In our remarks today, we will include statements that are considered forward-looking statements within the meaning of United States security laws. In addition, management may make additional forward-looking statements in response to your questions. Forward-looking statements are based on management's current assumptions and expectations of future events and trends which may affect the company's business, strategy, operations, or financial performance. A detailed discussion of the risks that the company faces is contained in its annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. Actual results may differ materially from those expressed in or implied by the forward-looking statements. The company undertakes no obligation to update or review any estimate, projection, or forward-looking statements. Additionally, the discussion today will include non-GAAP financial measures. These non-GAAP measures should be considered in addition to and not as substitute for or a nice from our GAAP results. A reconciliation of GAAP to non-GAAP results may be found in our earnings release, which was furnished with our Form 8K file today with the SEC, and may also be found on our investor relations website at investors.evalus.com. And now let me hand the call over to David. Thank you, Ashwin.

It goes without saying that the second quarter was a challenging quarter for the entire aesthetic industry, and Avalos was no exception. In the first half of the quarter, practices were largely shut down to COVID-19 measures and spent that time rewiring their operations. In speaking with customers, most instituted measures focused on patient safety and spacing appointments to minimize interaction between patients. Although patient throughput declined due to these measures, it was largely offset by extended office hours. By June, the large majority of practices reopened and benefited from a strong surge in patient demand, reflecting the resilience of the toxin category similar to what had been observed during the 2008 downturn. Many customers commented that June was the strongest month of this year and acknowledged that pent-up demand was a key driver of the volume. reinforcing our optimism about the continued underlying demand in the market. I'm pleased by the progress we made in the second quarter. During the first half of the quarter, we had an intense focus on rewiring Evelus to create a more efficient operating model, leaning further into our digital platform to support our customers. In addition, we introduced a stimulus program called Evelus 350, offering flat pricing to customers. We also launched our Consumer Loyalty Program, which offers greater savings for patients than competitive loyalty programs, and drove all of this activity through our proprietary digital platform. As a result of these strategic initiatives, we reduced our non-GAAP operating expenses by approximately 37% over the prior quarter. Orders taken via our digital app platform nearly doubled versus prior, and we increased our purchasing account base to more than 4,400. In the quarter, we delivered $7.8 million in net revenue, with approximately 90% of that generated in the second half of the quarter. In the second quarter, we also celebrated the one-year anniversary of the launch of Juveau. On reflection, the launch of Avelus and Juveau has been a success across all measures. We've rapidly established Javeau across the U.S., occupying the number three market share position and gaining ground as we continue to increase our account base and reorder rates while optimizing spend. We strategically position Javeau against a fast-growing younger demographic of consumers with a provocative branding effort. As a result, our patient base now over-indexes against millennials. Lastly, we designed a unique business model with a highly specialized sales force and a proprietary digital platform designed to provide a frictionless customer experience. I could not be prouder of the Avelus for their excellence in execution and focus. Now let me pass the call over to Mike, who will provide more color around our second quarter performance and promotional programs.