Evolus, Inc.

Good afternoon, ladies and gentlemen, and welcome to the Quarter 1 2021 Evolus conference call. At this time, all participants are in the listen-only mode. After this speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your touch-turned phone. As a reminder, today's conference is being recorded. I would now like to introduce your host for today's conference, Ms. Carol Ruth of the Ruth Group Ma'am, 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 everlist.com, and a replay of the call will be available on the company's website for 30 days. With me on the call today are David Modizetti, President and Chief Executive Officer, Lauren Silvanale, Chief Financial Officer, and Executive Vice President, Corporate Development, and Rui Avalar, Chief Medical Officer and Head of Research and Development. In our remarks today, we will include statements that are considered forward-looking statements within the meaning of the United States security clause. 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, 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 application to update or review any estimate, projection, or forward-looking statement. 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. The reconciliation of GAAP to non-GAAP results may be found in our earnings release. which was furnished with our Form 8K filed today with the SEC, and may also be found on our investor relations website at investors.evalus.com. Now let me hand the call over to David. David?

Good afternoon, and thank you, Carol. The first quarter of 2021 was a defining quarter for Evalus. We made significant strides in bringing clarity around our future for our shareholders, customers, and employees. The quarter was defined by three major events that set the stage for the continued success of Javeau in the United States. The first event was a resolution of both the ICC case and all outstanding future litigation. Second, we recapitalized the company by eliminating senior and convertible debt and future milestones. We also completed an equity offering and received a settlement payment from our partner. These activities transformed our balance sheet resulting in a pro forma cash position of $140 million on March 31st. Third, thanks to the strong showing of support from our customers, our business has quickly bounced back since settlement in mid-February. To provide additional color in our business, in the first quarter of 2021, we generated $12.2 million of net revenues, with most of the sales occurring after settlement in mid-February. We grew purchasing accounts to 5,800 from 5,600 at year end, and our cumulative reorder rates grew to 73%. We are pleased to see the trends from the first quarter persist into the second, where we see increasing reorder rates, and on average, these accounts are repurchasing at higher volumes. Overall, we are pleased to have all outstanding legal issues resolved and the company well-capitalized for the future. The second quarter marks the first quarter since launch in which we are free from all legacy challenges, and for the first time, our customers can now partner with us for the long term and realize the full potential of our unique value proposition. We have proven that an aesthetic company positioned against a younger demographic with a focus on technology creates a unique differentiation. The combination of these elements has resulted in increasing trends across our business. In Q2, we believe GVO will achieve its highest sales quarter ever and reach an annualized net revenue run rate of $100 million. Lastly, this month we are celebrating the two-year anniversary since the launch of GVO. The success we are seeing with GVO is directly related to the quality of this product and the extensive data generated over several years. And now I would like to turn it over to Rui Avalar to give you a quick update. Rui? RUI AVALAR Thank you, David, and good afternoon.