Evolus, Inc.

Greetings and welcome to the Evalus fourth quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. A brief 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. It is now my pleasure to introduce your host, David Erickson, Vice President, Investor Relations. Thank you, David. 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, Rui Avalar, Chief Medical Officer and Head of R&D, and Sandra Beaver, Chief Financial Officer. 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 expectation 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 evelis.com. Lastly, following the conclusion of today's call, a replay will be available on our website at ebliss.com. And with that, I'll turn the call over to David. Thank you, David.

The successful results of the fourth quarter of 2022 clearly demonstrate the significant progress we are making to deliver on our long-term strategy to become a leader in the performance beauty market. We achieved many important accomplishments that enhance our position to continue our growth and expand market share. 2022, we grew total revenue 49%, reaching the top end of the guidance we introduced in January of that year. For the second year in a row, Jovo was the fastest growing toxin in the aesthetic market. And in 2022, we crossed into a double digit share position. During the year, we completed enrollment in our phase two extra strength study, leading to the release of very encouraging interim data earlier this year. In 2022, we expanded our international operations beyond Canada and began our expansion into the European region with a successful launch in Great Britain. And importantly, throughout the year, we reduced our use of operating cash as we continue on our path to reaching profitability. All these achievements set the stage for a strong and exciting 2023, where we expect to continue delivering above market growth and generating total net revenue of $180 to $190 million. This keeps us on track to reach total revenue of $500 million by 2028, a 22% compound annual growth rate. We continue to expect non-GAAP operating expenses to be between $145 and $150 million, and remain committed to reaching positive non-GAAP operating income by year-end without the need for any additional capital to fund our current operations. We will continue expanding our international presence with the launch of new SEBA in Germany and Austria. We plan to enter additional European countries in 2023 and we are actively planning for a launch in Australia where we have recently received marketing approval. In addition, we look forward to completing our phase two extra strength study and presenting final results in the second half of the year. Now I'll get into some of the details. Our final results for the fourth quarter and full year 2022 were unchanged from the preliminary results we shared on January 18th. As reported, quarterly revenue grew 26% year over year and was up 29% on a quarter over quarter or sequential basis. Both metrics are multiples above the estimated industry growth rate and clearly demonstrate that Javeau continued to gain market share. We finished the year with strong momentum, with total revenue growing 49% to $149 million, and our key metrics reaching new highs. For example, in the fourth quarter, we added 700 new accounts for a total of more than 2,500 new customers in 2022. This brings a total number of new accounts purchasing GVO since launch to more than 9,500. Importantly, the reorder rate among our customers remains above 70%. Aided by the Switch Your Talks promotional campaign we kicked off in the third quarter, enrollment in the Eveless Rewards Consumer Loyalty Program grew more than 75% in 2022 to reach more than half a million members. Our Switch Your Talks program has proven to be effective. We estimate the program added a percentage point to our market share in the back half of the year. Switcher Tox was the single biggest driver of our new patient volume during that period and resulted in greater commitment from our customers who dedicated higher volumes of their business to Juveau and this momentum continues. Looking at the health of the toxin market, underlying US aesthetic market conditions remain strong and the demand for neurotoxins continues to grow at a healthy rate Shifting attitudes about health and beauty, broader acceptance of aesthetics, and growing consumer purchasing power are continuing to fuel this market expansion. According to a recent McKinsey study, the younger demographic is twice as likely as the older demographic to adopt injectables, which plays to our strengths as a company uniquely focused on a younger consumer with a brand and digital platform designed to appeal specifically to that audience. In 2023, we expect to grow at least twice as fast as the aesthetic neurotoxin market, and we will drive out performance by adding as many as 2,000 new customers, increasing share in the new accounts we added in 2022 and deepening our relationships with our more tenured and established customers. As we approach 10,000 accounts, our penetration is only now approaching one-third of potential U.S. customers. This represents a considerable future opportunity to broaden our reach with our differentiated value-added business model. As customers gain confidence using Javeau, they increase their purchasing quantities and unlock greater benefits through our MLS loyalty program, such as co-branded marketing. These actions, aided by our expanding consumer loyalty program and a meaningful contribution from international markets, will drive total revenues of $180 to $190 million in 2023. Our projected growth this year puts us on a trajectory toward achieving $500 million in sales in 2028 through a combination of a fundamentally strong aesthetic neurotoxin market, continued market share gains in the U.S., and meaningful contribution from international markets. Let me break this down for you. We estimate the U.S. aesthetic neurotoxin market totals approximately $2.2 billion at the end of 2022, and assuming a historical annual growth rate will grow to approximately $4 billion or roughly double by the end of 2028. If we only maintain pace with the market, that would represent one-third of the growth needed to reach our target. The next third is achieved through market share gains, the majority of which is captured in this year's guidance. Lastly, as we continue to grow our international footprint, we believe sales outside the U.S. will represent the remaining third, which will ultimately comprise 15% to 20% of our total revenue. Overall, we believe this $500 million target is both realistic and achievable, and it's important to note that it assumes no label expansion for Jabot and Nusiba, nor any acquisition. Now, turning to our international business. We are continuing to gain traction with Nucevo in Great Britain, which was launched in the fourth quarter of last year. Clinician interest continues to build, and we are generating broader awareness through educational sessions led by key opinion leaders. Our brand and entire approach to the aesthetic market is helping us establish a distinctive presence in Europe, and we will use the strategy in Germany and Austria, the second biggest toxic market in that region, where we are just now launching. The addition of these two countries means we are now able to offer Nuceva to approximately 40% of the roughly $500 million European market. In 2023, we plan to continue broadening our European presence as part of a phased expansion. In January, we are pleased to report the receipt of regulatory approval to begin selling Nuceva in Australia, and we are actively planning for a product launch. Australia is one of the largest market opportunities for aesthetic neurotoxins outside the U.S., and our expansion there, as well as in Europe, will be a key driver of our sales growth over the next five years. I would now like to turn the call over to Rui to discuss our Phase II extra strength results, including some additional data about the control arms. Rui? Thank you, David.