Evolus, Inc.

Good afternoon, ladies and gentlemen, and welcome to the Q4 and 4-year 2020 Evelus Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask the question during this session, you will need to press star then 1 on your telephone. As a reminder, today's conference is being recorded. I would like to introduce your host for today's conference. Mr. Ashwin Agarwal, Vice President Finance, Investor Relations, and Treasurer. 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, and Lauren Silvernail, Chief Financial Officer and EDP Corporate Development. In our remarks today, we will include statements that are considered forward-looking statements within the meaning of the 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 and uncertainties that the company faces is contained in its annual report on Form 10-K, Cordelia 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 a substitute for or in isolation 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 8-K filed 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.

Good afternoon, and thank you, Ashwin. It is a pleasure to be here with you today and to have both the uncertainty of the ITC case behind us and clarity around the financial support from our partner, Daewook. As I look back on 2020, I'm very pleased with the overall performance of the company and the underlying strength of the aesthetic neurotoxin market recovery, despite the headwinds of COVID and the IDC case. As we transition to 2021, we are very bullish on the aesthetic neurotoxin market and expectations for Juveau. We expect the U.S. aesthetic neurotoxin market will achieve $1.5 billion in value this year, marking a new high for the categories. We believe this to be the case because of the strong V-shaped recovery observed in the back half of last year, where in the third quarter, we saw the market return to pre-COVID levels, and by the fourth quarter, the market eclipsed all-time highs. Consumer market trends are also favorable, with the fast-growing millennial segment on track to represent the majority of neurotoxin users within the next several years. We remain confident that Jeveau is optimally positioned against this demographic due to our brand positioning, value of our consumer loyalty program, and digital orientation. We were pleased to see this positioning reflected in the composition of our user base, which over-indexed against millennials, which represented approximately 40% of Jeveau users as compared to approximately 30% for the overall market. In February, we pre-announced 2020 revenue, with Javeau experiencing a faster recovery in the second half of 2020 as compared to the broader aesthetic neurotoxin market, despite the litigation backdrop and sales impact in the fourth quarter from selling under a bond for two weeks. We have built a resilient business by laying the foundation of our value proposition, beginning with the launch of Avelus Rewards, our consumer loyalty program. In the back half of last year, we launched GIVO co-branding initiatives made up of digital ads and billboards, which are earned when customers achieve certain purchase levels in our Avalux pricing program. This aligned our brand building activities directly with customer interest in expanding their millennial patient base. As a result, our GIVO business experienced strong underlying business trends coming out of the second half of 2020. where we added greater than 2,000 accounts during the year with these trends continuing into the fourth quarter with nearly 600 accounts added. Our reorder rates continue to rise, reaching a healthy 72% by year end. In just two full quarters on the market, we were able to enroll over 110,000 patients into Avalos Rewards, which speaks to the value of this program to both the doctor and to the patient who receives $40 off of every treatment. We believe we have the recipe to unlock the full potential of Javeau with our direct-to-millennial strategy. Looking forward, we expect the second quarter of this year to mark the first quarter since commercialization where the market will benefit from the full Javeau value proposition. As a result, we expect the second quarter of 2021 net revenue will hit an all-time high as we drive greater utilization and practices and Javeau brand awareness with consumers. Let me turn the call over to Lauren to provide you with a financial update.