Evolus, Inc.

Greetings and welcome to EBOLA's second quarter 2023 earnings conference call. At this time, all participants are on 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 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, 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 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 evelis.com. 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're pleased to report another quarter of continued above-market sales growth that reflected record sales and accelerating growth over the first quarter. In the second quarter, we achieved all-time highs across several leading indicators, including expansion of new accounts, and increased consumer usage of GVO through our Eveless Rewards consumer loyalty program. On top of an above-market Q1, second quarter growth accelerated by 10 points, resulting in an increase of one full share point for GVO in the front half of the year, exceeding our internal goal by already achieving our full-year share target. The combination of continued strength in execution and increasing momentum gives us the confidence to raise our 2023 sales guidance to between $185 and $195 million. This updated guidance equates to over 30% growth at the upper end of our range and has more than tripled the estimated category growth rate. While we continue to concentrate on strong execution, we remain focused on our 2028 sales goal of $700 million. Driven by the continued expansion of GEVO in the U.S., the international expansion of Nuceva, and the introduction of Evelisse. Moving to Evelisse, we are rapidly advancing the clinical programs to support the regulatory approval for the first two Evelisse filler products in 2025. We expect to complete our FDA filing in approximately 12 months. Additionally, we recently completed our Phase II Extra Strength Study for Juveau and look forward to the presentation of those results in the fourth quarter. From an operating standpoint, we continue to exercise disciplined operating expense management and remain committed to reaching sustained profitability. Our operating leverage is evident by our 28% increase in top line in the front half of the year, which was nearly double the rate of non-GAAP operating expense growth. This is a continued trend of increasing operating leverage. Overall, Evelis is delivering on our goals for growth and operating performance as we advance our mission to become a global multi-product aesthetics company. Now I'll get into some of the details. Second quarter sales grew 33% year-over-year as broader adoption of GVO continued to drive market share gains. Our above-market performance is evidence of both our accelerating momentum and a resilient U.S. toxin market. Our key performance indicators continue to reflect increased market penetration. During the second quarter, we added nearly 800 new accounts, bringing our total customer count to approximately 11,000. This record number of new accounts validates the compelling value that our unique business model offers to both new customers and existing clients who are purchasing greater quantities of Jouveau, enabling access to additional loyalty program benefits. These benefits include co-branded media opportunities targeted to the younger generation, such as streaming TV ads, billboards, and digital advertising. We expect to continue adding new customers at a robust pace in 2023 and beyond as we penetrate more deeply into the total U.S. market of 30,000 accounts. Of note, GVO has only penetrated about one-third of the account base currently offering neurotoxins. The durability of GVO can be measured by consumer activity through our consumer loyalty program. There are two key metrics we view as predictive of future growth. The first is new members who enroll in our program, and the second is the total number of consumers, which includes a combination of new and existing members. In this quarter, we added 64,000 new members to our Avalos Rewards Consumer Loyalty Program, bringing our total GVO user base in the program to 638,000. Enrollment in our text-based Eblis Rewards Program is simple for members. Once enrolled, members receive $40 off each GIVO treatment. This drives these members back into the practice more frequently, allowing our customers to cross-sell additional treatments. Importantly, the majority of new to Toxin members in our Rewards Program are millennials or younger, which is a highly desirable demographic that will represent the majority of users in the category over the next several years. Total GEVO treatments in our loyalty program exceeded 147,000, an all-time quarterly high, as existing members continue to return for repeat treatments of GEVO, demonstrating sustained brand loyalty. During the quarter, we reached an important milestone by completing the one millionth treatment in this program, since launching it three years ago. Turning to our international operations, we are now commercial with Nuceva in five major countries. We are continuing to build momentum in Great Britain, Germany, and Austria, and are excited to have recently initiated the launch of Nuceva in Italy, the fourth largest aesthetic neurotoxin market in the $500 million European region. Europe remains an important part of our overall growth strategy, representing an estimated high single-digit million in sales in 2023. Longer term, we continue to expect total international sales to represent 10% to 15% of our 2028 revenue target of $700 million. Now, I'll turn it over to Rui for a product development update.