Evolus, Inc.

Good afternoon, everyone, and thank you for standing by. Welcome to Evalyst's third quarter earnings conference call. If you require operator assistance during the conference, please press star zero. As a reminder, today's conference is being recorded and webcast live. All participants are in a listen-only mode. After the speaker's remarks, there will be a question and answer session. 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 Evelis' third quarter financial results. Our third quarter press release is now on our website at evelis.com. With me today are David Morosetti, President and Chief Executive Officer, Tatiana Mitchell, Chief Financial Officer, and Rui Avalar, Chief Medical Officer and Head of R&D. Today's call will include forward-looking statements. Actual results may differ materially due to risks and uncertainties outlined in our earnings press release and the SEC filings. These forward-looking statements are based on current assumptions, and we undertake no obligation to update them. Additionally, we will discuss certain non-GAAP financial measures. These measures should be considered in addition to and not as a substitute for our GAAP results. A reconciliation of GAAP to non-GAAP measures is included in today's earnings release. As a reminder, our earnings release and SEC filings are available on the SEC's website and on our investor relations website. Following the conclusion of today's call, a replay will be available on our website at investors.evalus.com. With that, I'll turn the call over to our CEO, David Modazzetti.

Thank you, Nard, and good afternoon, everyone. Before we begin, I'd like to take a moment to welcome Tatiana Mitchell as our new Chief Financial Officer. Tatiana brings deep financial and operational expertise to Evalyst, and she has made an immediate impact as we strengthen our focus on efficiency and long-term growth. The third quarter marks an important transition for Evalyst. And before I discuss the results, I want to take a moment to recognize the outstanding efforts of our team. Over the past year, we've successfully created or expanded a number of capabilities. solidifying the foundation for long-term growth. Most notably, our medical education platform has evolved into a comprehensive training ecosystem, working with world-renowned experts in the field of aesthetics to engage more than 17,000 injectors year-to-date through cadaver labs, in-office hands-on sessions, mobile training with our Evelus bots across 100 events, and digital webcasts. Our Evolux consumer loyalty program has now grown to more than 1.3 million members, up 34% year-on-year, with nearly 70% returning customers, underscoring the strength of our consumer engagement. Our first-in-class Evolux co-branded media program has reached over 1,400 accounts year-to-date and generated over 300 million media impressions through digital, billboard, and streaming campaigns. further amplifying awareness of the Evelisse brand. Our Evelisse launch is off to an incredible start. To date, more than 4,000 customers have completed hands-on training, and the majority have purchased Evelisse. One of the key insights we've learned is that first training builds familiarity and comfort with the product, while the second training is what drives meaningful adoption. In fact, 75% of Avalice revenue comes from accounts that have participated in hands-on training, and we've seen 100% increase in purchasing volume when an account is trained a second time. This clearly underscores the value of continued education in building product confidence and driving consistent use. Internationally, we entered two new markets this year, and our mature markets are continuing to grow at a very high rate. In the UK, our most mature direct market, we estimate that our market share closely mirrors the share uptake we experienced in the US following launch. Lastly, despite the headwinds in the US aesthetic market, Givaud continues to outperform the category with unit volume growing year to date and on track to continue that trajectory in a market that remains down single digits this year. Our above-market performance and disciplined expense management have positioned us to enter the next phase of our growth trajectory, achieving profitability in the fourth quarter of 2025 and positioning us for sustainable annual profitability beginning in 2026. We've rebased our expenses with the benefits reflected in our third quarter results and remain well positioned to deliver sustainable profitability. While the aesthetic market continues to face near-term challenges related to consumer spending, we're encouraged by early signs of stabilization and expect demand for injectables to continue to improve sequentially. Against this backdrop, Evelis continues to deliver results that demonstrate the strength of our strategy and the resilience of our brand. In the third quarter, our revenue increased 13% due to strong global GVO demand and meaningful early contribution from Evalis in the U.S. Following a challenging second quarter, global GVO performance in the third quarter reflected healthy demand as the business experienced sequential revenue growth in what is typically a seasonally lower quarter. Javeau sales benefited from positive unit growth both in the U.S. and internationally, supported by record consumer demand through our endless rewards program. As the market strengthens and the overall toxin category returns to growth, Javeau is poised to regain healthy momentum. We strengthened our 14% share of the U.S. market year-to-date, reinforcing the synergy within our portfolio and our differentiated positioning as a leader in performance duty. With Evelisse, we continue to lay the foundation for adoption and scale, delivering $5.7 million revenue in the third quarter and $15.5 million since launch, marking the strongest HA filler debut in over a decade. Demand for Evelisse increased sequentially over the run rate of approximately $5 million after factoring for initial stocking by accounts in our last quarter. We're particularly excited about the performance of Evelisse, as feedback from customers has been exceptional, highlighting the product's handling, results, and seamless integration in their practice. This further validates our Beauty First strategy to build a full facial aesthetic portfolio under a single trusted brand. Through this launch, we've targeted our highest-bonding Juveau accounts and gained valuable insights that will aid us as we now expand our focus to a broader customer base in the fourth quarter. Our launch-to-date strategy was focused on establishing Evelisse as a differentiated product independent from Juveau. and we intentionally avoided bundling during this initial phase. As we approach six months of experience with Evelisse on the market, and as practices are now planning for the new year, the fourth quarter is the right time to bring the value of our two portfolio products together. This quarter, we've introduced our first Evelisse portfolio bundle, designed to reward practices that grow across both Givaud and Evelisse. This initiative enables us to compete more directly against competitive bundles and drives market share gains across the portfolio. In the third quarter, we expanded our customer base by adding nearly 500 new purchasing accounts, bringing our total to more than 17,000, 2,000 of which are now also purchasing Evelisse. Our Evelisse Rewards consumer loyalty program remains a central growth driver. fueling both repeat use and brand engagement. Total redemptions were 34% compared to the prior year quarter. New redemptions for the quarter were a record 244,000, of which approximately 68% came from existing consumers. Duveau and Evelisse are building lasting consumer loyalty, which fuels the sustainable growth and profitability of our portfolio. In parallel with our commercial execution, we achieved a key regulatory milestone with the submission of our PMA to the U.S. FDA for EVALI-SCULT, our advanced injectable HHL for mid-phase volume restoration. We expect the FDA review to follow the standard PMA pathway with potential approval anticipated in the second half of 2026. We also remain on track for a broader launch of esteem in Europe in the first half of 2026. Before I close, I'd like to address the recent developments related to tariffs. We've taken proactive measures to mitigate potential tariff impacts on pharmaceuticals, including Juveau. We will provide additional clarity once the trade agreement with South Korea and pharmaceutical tariffs are finalized. But the current timeline gives us a valuable window to strategically plan and prepare for any changes. We remain confident in our ability to navigate these dynamics effectively without disruption to our customers or our financial performance. In summary, our third quarter results reflect above market growth, financial discipline, and the early benefits of our expanding portfolio. With Chabot performing steadily, Evelisse building scale, Esteem on track for launch in 2026, and a resetting of our expense base, Evelisse remains well positioned to achieve sustainable profitability and long-term growth. With that, I'll turn it over to Rui for an update on Evelisse and our recent sculpt submission.