Evolus, Inc.

Welcome to the Evalus Third Quarter 2021 Earnings Conference 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. Please note that this conference is being recorded. I will now turn the conference over to your host, David Erickson, Vice President of Investor Relations. You may begin.

Thank you, operator, and welcome to everyone joining us on today's call. With me today are David Modizetti, President and Chief Executive Officer, Lauren Silvernail, Chief Financial Officer and Executive Vice President, Corporate Development, and Rui Avalar, Chief Medical Officer and Head of Research and 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 the 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 8-K filed today with the SEC. and on our investor relations website at evelis.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. Thank you, David, and good morning.

We are very pleased to share with you our results for the third quarter of 2021, which reflect increasing sales momentum, strong oversight of fixed operating expenses, and disciplined cash management. For the quarter, we delivered record revenue of $26.7 million, which represents 58% growth over comparable U.S. sales in the third quarter of 2020. Most impressive is our quarter-over-quarter growth of 5%, reflecting continued market share gains during what is typically a seasonally down quarter. and demand for toxin products among new and existing patients continues to be strong. Through October 2021, we continue to see strong growth in our Eveless Consumer Rewards Program, where registration currently stands at more than 240,000 consumers, a doubling since the end of last year. Our business continues to over-index to millennial and younger patients, which now represents nearly 40% of our user base in the loyalty program. markedly higher than the overall category, where millennials and younger represent less than 30% of toxin use. The millennial segment is the future growth driver for the aesthetic market, as this consumer group is the largest generation today, with over 70 million consumers in the U.S. alone. This under-penetrated demographic is comprised of savvy consumers who are beauty conscious, with fewer barriers to seeking treatment than prior generations. Additionally, these consumers are active on capabilities. During the third quarter, we added more than 500 new Evalus customers, bringing our total account base to more than 6,500. We're also efficiently servicing these accounts through a combination of field and in-house sales professionals, while continuing to direct product reorders to our digital platform, where the majority of our orders continue to be placed. One of the differentiating features of Evelis' business model is a strategy specifically designed to help our customers grow their toxin businesses. And one of the key features of that strategy is our co-branded marketing program. Since we are the first company in the toxin category to offer co-branded marketing, I thought it would be helpful to take a few moments to help bring it to life. Co-branded marketing, or CBM, is a service we offer to our higher volume customers that enables them to create personalized advertising campaigns featuring their practice alongside the Eveless and Juveau brands. Customers can select from a range of advertising options, including digital, billboards, and now in the fourth quarter, new streaming television ads. All of these options provide accounts with a custom advertising offering to target consumers in their local market. Each media program runs for a specified length of time, and the campaign results are measured and provided to each practice. The more Jovoa customer purchases, the more advertising value they receive. Our CBM program has grown quite a bit since we first introduced it a little over a year ago. To date, This volume growth is resulting in greater economies of scale by lowering our per-unit advertising costs. Co-branded marketing is working. In the third quarter, our CVM presence increased significantly. We ran more than 850 individualized, co-branded marketing campaigns across the United States, which resulted in more than 395 million media impressions. Both of these metrics are newly well as we build the GEVO brand for the millennial consumer. The benefits of our CBM program are many. Not only does local advertising help build account awareness, but it also directly connects consumers with GEVO injectors. Additionally, co-branded marketing serves as a call to action to both the new user considering her first treatment and existing This exclusive program helps Evelis create deep and lasting relationships with our key accounts while also helping promote our brand. Lastly, earlier today, we announced we are investing in a Phase II program to study an extra-strength dose for extended duration of Jebeau. Given our aesthetics-only business model, Evelis is uniquely positioned to capitalize on this opportunity, which should set us up for continued market share gains. Now I'd like to turn it over to Rui Avalar, our Chief Medical Officer and Head of R&D, to provide further detail about this exciting new program. Thank you, David.