Evolus, Inc.

Good afternoon, everyone, and thank you for standing by. Welcome to Evelis' fourth quarter and full year 2023 earnings conference call. As a reminder, today's conference is being recorded and webcast live. All participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. If you need operator assistance, press star zero on your telephone keypad. I would now like to turn the conference over to Narek Segarian, Vice President and Head of Global Investor Relations and Corporate Communications. Please go ahead.

Thank you, Operator, and welcome to everyone joining us on today's call to review Evelus' fourth quarter and full year 2023 financial results. Our fourth quarter and full year 2023 press release is now on our website at evelus.com. With me today are David Modazzetti, President and Chief Executive Officer, Rui Avalar, Chief Medical Officer and Head of R&D, and Sandra Beaver, Chief Financial Officer. Before we begin our discussion, I'd like to note that during our call, our prepared remarks 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. Listeners are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this call, and the company undertakes no obligation to update or review any estimate, projection, or forward-looking statements except as required by law. These forward-looking statements are based on estimates and assumptions that, although believed to be reasonable, are inherently uncertain and subject to a number of risks and uncertainties. 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. 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 file today with the SEC and on our investor relations website at edlist.com. Following the conclusion of today's call, a replay will be available on our website at evalist.com. With that, I'll turn the call over to our CEO, David Modazzetti.

Thank you, Narg. We are very pleased to report on another record quarter and 2023 full-year results, while consistently focusing on delivering on our long-term strategy of leading the performance beauty market. Our focus is consistent and purposeful. We are building a beauty brand primarily targeting millennials who represent the fastest growing segment of the neurotoxin market and are known to influence adjacent generations. Our differentiated approach has resulted in Jovo becoming the fastest growing toxin in the United States aesthetic market for the third consecutive year. During the year, we achieved several major milestones. including the strong execution in the U.S. with our neurotoxin, the global expansion of our neurotoxin into Europe, and the addition of our novel dermal filler line. As a result, we increased our total addressable market by 78%. We now view our addressable market to be approximately $6 billion and comprised of three distinct segments, including two segments where we currently have little to no penetrations, The first segment is the U.S. neurotoxin market of 2.6 billion value, which is projected to grow at high single to low double-digit growth rates for the upcoming five years. We are celebrating our fifth year of Jevo being on the market in May and are proud to have achieved double-digit market share despite new competitive entrants. The second segment we plan to enter in 2025 is the U.S. filler market, which we estimate is a $1.6 billion market growing at a similar rate to toxins with a clear overlap in our current customer base. And the last segment is the international market, which represents $1.8 billion, having doubled with the addition of the dermal filler product line. And we expect to have a presence in countries representing more than 90% of the total addressable market by 2028. In addition to our market expansion, We executed on the R&D front with our Phase 2 Extra Strengths Chabot Study, which proved 26 weeks of duration, providing our growing consumer base the option of a longer duration formulation. In the U.S., we added nearly 3,000 new accounts to end the year with more than 12,000 total purchasing accounts. And we exited 2023 with 750,000 consumers in our Avalos Rewards Loyalty Program. which grew by 55% over the prior year. And importantly, consumers receiving repeat treatments represented 60% of the total redemptions in 2023, up from 50% in the prior year. These milestones reinforced the global demand for our consumer brands, the high quality of our products, and the competitive moat we built as the first company focused on cash pay aesthetics. Continued gains throughout 2023 position us to provide 2024 revenue guidance of $255 to $265 million, representing a 31% growth at the top end and is unchanged from our announcement in January. This top-line performance coupled a strong, disciplined focus on operating expenses with is why today we announce our revised outlook on profitability, which now assumes we achieve profitability in the fourth quarter this year and for the full year in 2025. Further, these milestones are indicative of the progress we are making toward reaching our long-range guidance of at least $700 million in revenue by 2028, a compound annual growth rate of 28%. Now I'll get into a high-level view of the financials, which are unchanged from the preliminary results reported on January 16. In 2023, we achieved a record global revenue of $61 million for the fourth quarter and $202 million for the full year, representing 40% and 36% growth over the prior year, respectively. The full-year results surpassed the top end of our guidance of $198 million. due to our growing consumer demand and continued market share gains. Our fourth quarter revenue increase of 40% over the prior year quarter and 22% sequentially were both multiples above the estimated industry growth rate. And importantly, our back half growth accelerated meaningfully above the first half, driving continued market share gains with GVO and resulted in our market share achieving 12% in the fourth quarter. Looking to our international business, we continue to expand our global footprint with the success of Nuceva and announced our licensing agreement with Cimetade in December to exclusively distribute thermal fillers under the brand name ESTEEM in Europe. This is a significant agreement for Evalis, doubling our total addressable international market to $1.8 billion. Now I'd like to turn the call over to Rui to discuss the dermal filler line and review the accompanying slides posted to our investor relations website.