Evolus, Inc.

Greetings and welcome to the Evelis second quarter 2021 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. David Erickson, Vice President, Investor Relations. Please go ahead, sir.

Thank you, Operator, and welcome to everyone joining us on today's call. With me today are David Modosetti, President and Chief Executive Officer, and Lauren Silvernail, Chief Financial Officer and Executive Vice President, Corporate Development. Our prepared remarks today will include forward-looking statements within the meaning of United States securities laws, and 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 obligation to update or review any estimate, projection or forward-looking statement. Additionally, our 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 8K filed today with the SEC, and on our Investor Relations website at eveless.com. Lastly, following the conclusion of today's call, a replay will be available on our website at evelis.com. And with that, I'll turn the call over to David.

Good afternoon, and thank you, David. We are very pleased to share with you our results for the second quarter of 2021. This quarter is notable for several reasons. Not only is it our first full quarter of results following the successful resolution of our legal matters, more importantly, It is a quarter that clearly demonstrates both the resilience of Evelis as a company and the strong underlying demand for Juveau. Thanks to the unwavering support of our customers and dedication of our employees, we reported $26.1 million of net revenue in the second quarter and delivered on our goal of achieving $100 million annualized run rates. We remain very encouraged by the strong recovery of the U.S. aesthetics market and the increasing demand for toxin products among existing and new patients. This quarter, our primary focus was on reengaging our existing account base following the settlement, and we were pleased to see the majority of customers who purchased in the fourth quarter of 2020 have since reordered. This validates their commitment to Jabot and was a key driver of our strong second quarter revenue. In addition, we added over 300 new accounts, bringing our total account base to more than 6,000 purchasing customers. We also observed continued strength behind our Eveless Rewards Program, which has seen a 66% increase in registrations compared to year-end 2020 and now stands at more than 200,000 consumers. In the second quarter, we maintained a prominent presence in both digital advertising and billboards. These marketing initiatives are designed to elevate the visibility of our brand and our customers while maximizing the efficiency of our investment. Our co-branded advertising is first in class and another example of how we are working with our customers to build a toxin category together. We are continuing to innovate around the advertising model to broaden our offerings using localized, targeted spending across a range of advertising vehicles that focus on the injector. As an example, we will be piloting streaming television spots in local markets with key customers during the third quarter. Overall, our strong second quarter results reinforce our belief that our differentiated approach of partnering with customers through advanced technology to target a younger demographic will fuel our strong momentum going forward. While the ongoing pandemic adds an element of uncertainty, our confidence remains high that procedural volumes will continue to grow in the back half of 2021, which positions us to achieve record sales in the second half of the year. As we continue to build our company, we are adding key senior talent, and we recently welcomed two leaders to the team. David Erickson, who has extensive healthcare industry and investor relations experience, came on board to lead our investor relations functions. We also added Dan Stewart as head of our international business. Dan has considerable industry experience, having held sales leadership roles in several medical aesthetics companies, and his first task is to spearhead our global expansion into Europe. We look forward to the many contributions both individuals will make as we execute our growth strategy. Speaking of Europe, We continue to make progress preparing for our launch there, which remains on track for early 2022. Europe represents a $470 million market opportunity, and we believe our digital capabilities offer a unique advantage to build a strong presence in what is the second largest global market for aesthetic neurotoxins. The launch of Nuceva, which is a brand name of our product internationally, opens 31 new countries and significantly increases our global footprint. We expect to be the fourth entrant to the European market just as we were in the U.S., and we look forward to applying key learnings from our U.S. launch to help drive the rapid uptake of Nuceva. We will provide further updates as we get closer to our launch. Before I turn it over to Lauren, as you saw in a June press release, We were proud to announce the publication of a peer-reviewed article highlighting the efficacy and safety of Javeau in patients with skin of color. As the article noted, clinical data involving non-Caucasian patients is quite limited. Yet this demographic comprises a significant percentage of the population today and a growing segment seeking neurotoxin treatment. Articles such as this add to the body a strong clinical data that helps support injector and patient confidence in Javeau. Now, I'll turn the call over to Lauren for some additional financial information.