Evolus, Inc.

Greetings and welcome to the Evelis First Quarter 2022 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, David Erickson, Vice President of Investor Relations.

Thank you, Operator, and welcome to everyone joining us on today's call. With me today are David Modizetti, 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, today's discussion will include non-GAAP financial measures, which 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 evils.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.

We are pleased to share with you our results for the first quarter of 2022, which demonstrated continued robust growth, increased market share, and disciplined operating expense management. First quarter sales grew to nearly $34 million, reflecting continued year-over-year share gains. Our lead metrics achieved new all-time highs, while the market continues to reflect a healthy growth rate. The first quarter marked the first full year since our relaunch, and we could not be more pleased with the rapid uptake of Chabot across the U.S. From an expense standpoint, we continue to thoughtfully manage our overhead costs and are investing a greater share of resources in brand building through our innovative co-branded marketing program, or CBM. And Evelis today remains in a strong cash position funded to beyond profitability. Overall, we're off to a very good start, and we continue to expect another year of strong growth in 2022. Based on our performance in Q1 and our outlook for a strong aesthetics market, we are confident we can now achieve the upper end of our full-year sales guidance range of $143 to $150 million. This equates to a year-over-year growth rate approaching 50%, which is well above the projected industry growth rate. Now I'll get into some of the details. Sales this quarter grew 177% compared to the first quarter of 2021. Our sales of $34 million this quarter reflect year-over-year growth that is well above the estimated U.S. toxin market rate. On a sequential basis, our first quarter sales this year were comparable to sales in the fourth quarter of 2021 in what is typically a sequentially lower quarter due to seasonality. This strong growth supports our view of a robust aesthetics market that will continue to expand at a healthy pace. The key sales and marketing growth drivers we measure are new accounts, co-branded media adoption, and consumer engagement through our Avalos Rewards program. All of these metrics reach all-time highs this quarter and are evidence that momentum in our business continues to build. Starting with new accounts, we continue to expand our customer base by adding more than 575 new accounts, the highest quarterly increase in the past two years. This brings our total account base since launch to more than 7,500 purchasing customers with a reorder rate that continues to run above 70%. Our millennial focus and unique co-branded marketing program is driving more customers to purchase at higher volumes in order to receive CBM benefits, which increases their visibility in the market and helps grow their practices. In turn, we benefit alongside our customers by expanding the awareness of the Jeveaux brand. In the quarter, we ran a total of nearly 800 digital, billboard, and streaming TV marketing campaigns that generated more than 400 million media impressions in the first quarter alone. Streaming TV is the latest addition to our CBM range of advertising options. These customized streaming television ads target a younger demographic within a small radius of a customer's practice. These ads prompt consumers to take immediate action and book appointments for Jeveaux using their smartphones and a QR code. Following a successful pilot in Q4 for our largest customers, the majority of our top 200 customers are now on track to qualify for Streaming TV. Increasingly, our customers are reporting that a growing number of consumers are asking for Jebel by name. This is evidence of the brand awareness our CBM advertising is creating and the power of our Eveless Rewards loyalty program to retain and motivate consumers. Participants in this program, of which nearly 40% are millennials or younger, receive quarterly appointment reminders along with savings on each treatment. By the end of the first quarter, Our loyalty program had grown to more than 335,000 members who have redeemed approximately 475,000 rewards. During the quarter, nearly 90,000 consumers were rewarded and half of the patients treated with GVO were returning patients, which marked a new all-time high. Turning to our European expansion, we are putting the finishing touches on our launch plans, which remain on track for the third quarter. Initially, Nuceva will be offered to customers in the UK and Germany, the two largest markets, before expanding next year to additional European countries as part of a phased rollout. We continue to expect Nuceva to contribute modestly to sales in 2022, but be an important contributor to growth as we expand our European footprint. Additionally, this will form the foundation for a potential future portfolio of aesthetic products in this important and sizable market. Before I turn it over to Lauren, I'd like to provide a quick update on our phase two extra strength clinical study. As we announced in March, we enrolled the first of a total of 150 patients. Enrollment across the five study sites is making good progress, which keeps us on track to complete the study and have interim results by the first half of next year. Upon success, the study will add to the body of strong GIVO clinical data while giving us the flexibility to pursue a longer duration indication on label. Being able to offer two strengths of GIVO, original and extra strength, and leveraging our ability to optimize pricing with our aesthetic-only strategy puts Evelis in a unique competitive position. Our recent study of Evelis customers found that while 86% would like to have extra strength as part of their product offering, they still believe the original strength would be used most often. In short, having an extra strength option would give injectors the ability to customize treatment plans for their patients, which represents a potential additional revenue stream for Evelis. With that, I'll turn the call over to Lauren, who you all know will be retiring in a few weeks and is conducting her last quarterly conference call as EBLIS' CFO. Lauren?