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.

Thank you, David. Since the launch of Foreman Smooth here in the U.S., The feedback continues to be consistent. This line of gels are described as being efficient in that a given amount of product goes a long way. They have a low inflammatory profile and are very versatile. On the development side, Eblee Sculpt is our HA injectable that targets the premium mid-face volume market and is currently making its way through the FDA process. In August, the first disclosure of the data was presented. The study compared Sculpt to Restylane LIFT in a prospective double-blind randomized trial and enrolled 304 patients in a three-to-one ratio. Using a validated five-point scale, patients with moderate, severe, or extreme mid-face volume deficit were eligible for treatment, then followed for 24 months. The primary endpoint was non-inferiority design. measured at six months, and looked at the difference in mean change in midface volume deficit scores after treatment. Patients were treated in the cheek area, and the mean volume of HA product used was 1.8 mils per cheek or 3.7 mils per patient. The primary endpoint of non-feriority was met, with the difference in favor of Evelisse Sculpt. The confidence intervals demonstrated both non-inferiority and statistical superiority. The corresponding p-value also demonstrated statistical superiority at less than .001. The secondary endpoint looked at responder rates of each treated cheek, defined as at least a one-point improvement on the scale. At six months, 83% of cheeks treated with restroom lift were responders, compared to 91% in the Evelisse-Skull group, with the p-value that reached the level of statistical significance at 0.015. Following the patients over the course of two years, there was a pattern of increasing separation across the efficacy metrics over time between the two groups, favoring Evelisse-Skull over the control. A one-point change on the validated volume deficit scale represents a clinically meaningful improvement. Looking at patients with at least a one-point change as assessed by the blinded evaluator at 24 months or the study's end, 8% of LIT patients were responders compared to 29% of skull patients, over a three-fold difference at the end of two years. The pattern was similar when looking at the global aesthetic improvement scale as assessed by the patients themselves. At 24 months, 13% of lift patients were responders compared to 29% of skull patients. Treatment-related adverse events between the two groups were similar, 18.7% for lifts and 19.7% for skulls. and there were no treatment-related serious adverse events in either of the groups during the trial. As mentioned, the PMA for Sculpt was submitted in the third quarter of this year, and we anticipate FDA approval in the second half of 2026. Lastly, the LISP-HA injectable trial is fully enrolled, ongoing, and we anticipate its approval and launch in 2027. With that, I'll turn it over to Tatiana to walk you through the financial details.

Thank you, Rui, and thank you, David, for the warm welcome. Over the past 60 days, I have had the opportunity to get to know the Evelus team and spend time with some of our customers. It's been energizing to see firsthand what makes this company unique, and I wanted to share a few observations before we move into the results. First, Evelus has a highly differentiated business model. As a cash pay focused company in a multi-billion dollar aesthetics market, we have built meaningful relationships with both customers and consumers. Our ability to connect with both groups, driving customer growth and retention while deepening consumer loyalty, gives us a multitude of levers to drive performance. Based on my experience in scale consumer businesses, Evelus is still in the early stages of realizing our full potential. Second, the fundamentals of our business are strong. We have built productive, long-term partnerships with Daewoong and Cimetase, and our expense base has been successfully rebased following the second quarter, all while continuing to deliver on our revenue targets. This positions us well to drive operating leverage and profitability going forward. Third, we operate in a high growth category with long-term secular tailwinds. Our strategy of building a facial aesthetics portfolio under one trusted brand provides a strong foundation for continued expansion and innovation. We are confident in delivering profitability with our current portfolio while actively pursuing strategic business development opportunities to expand our pipeline. And finally, I've been impressed by the strength of the Evelus culture. The grit and focus and impact that I've seen across the organization are what makes me confident in our ability to deliver on our long-term goals. I'm joining Evelus at a pivotal moment, one where the foundation is strong, the opportunity is clear, and the team is focused on execution. I look forward to partnering with David and the leadership team to drive profitable growth and long-term value for our shareholders. With that, I am pleased to share our third quarter financial results. Global net revenue for the third quarter was $69 million, a 13% increase over the third quarter of 2024. Sales growth in the third quarter was driven by a combination of the introduction of Evelisse and growth in Global Jouveau. And on a sequential basis, sales growth in the third quarter was driven by accelerating demand for Jouveau, increasing underlying demand for Evelisse, and continued strength in the international business. Net revenue for the third quarter of 2025 included 63.2 million of Global Jouveau revenue and 5.7 million of EVA lease revenue. Our reported gross margin for the third quarter was 66.5%, and adjusted gross margin was 67.6%, which excludes the amortization of intangibles. Earlier, we touched on the topic of tariffs. There have been recent announcements related to potential tariffs on pharmaceutical products. At this time, the impact on Jouveau is still being evaluated, pending additional guidance by the administration. Current inventory levels will sustain us through the first quarter of 2026, and therefore, Jouveau will not be subject to any near-term tariff impact. Separately, under the recently announced trade agreement with the European Union, the relief is subject to a 15% tariff that began August 7th. This tier has been fully incorporated into our outlook and has a minimal impact on our financials. We continue to actively monitor global trade agreements and remain focused on mitigating any potential future exposure while ensuring stable supply for our customers. Moving now to operating expenses. GAAP operating expenses for the third quarter were $57.3 million. up from $55.5 million in the second quarter. As a note on the sequential comparison, Q2 2025 GAAP operating expenses benefited from a $3.9 million reduction related to the revaluation of the contingent royalty obligations. Non-GAAP operating expenses for the third quarter were $49.7 million compared to $54 million in the second quarter. As a reminder, non-GAAP operating expenses exclude stock-based compensation, revaluation of the contingent royalty obligation, and depreciation and amortization. This quarter, non-GAAP operating expenses also exclude $1.4 million in restructuring charges, primarily consisting of one-time severance benefits for infracted employees. These restructuring expenses are related to the strategic cost structure optimization announced in August. Within operating expenses, selling general and administrative expenses for the third quarter were $52.8 million compared to $56.7 million in the second quarter. This included $5 million of non-cash stock-based compensation compared to $4.3 million in the prior quarter. Non-GAAP operating loss in the third quarter was 3.1 million compared to non-GAAP operating loss of 6.7 million in Q3 of 2024. The better than expected third quarter result was due to operating expense reduction and in part to the timing of our largest customer event of the year, which moves from Q3 to Q4. As a result of this timing shift, the associated costs of the customer event will be recognized in the fourth quarter rather than the third, while the full year, in fact, remains unchanged. Both non-GAAP operating expenses and non-GAAP operating income exclude stock rates compensation expense, revaluation of the contingent royalty obligation, depreciation and amortization, and restructuring charges. Non-GAAP operating income also excludes amortization of intangible assets. Turning to the balance sheet, we ended the third quarter with $43.5 million in cash as compared with $61.7 million at the end of the second quarter. The decrease in cash during the quarter was primarily driven by our decision to pull forward inventory purchases ahead of potential tariffs on pharmaceuticals. Looking ahead, underpinned by our strong third quarter performance, our outlook for 2025 remains unchanged and includes the following. Reiterating, total net revenue between $295 million and $305 million, representing 11% to 15% growth over 2024 results. We continue to expect EVALI's revenue contribution to be between 10% and 12% of total revenue for the full year 2025. Full year non-GAAP operating expenses to remain between $208 million and $213 million. Non-GAAP operating income between $5 million and $7 million in Q4 2025. which includes the timing of costs related to our customer event that shifted from the third quarter to the fourth quarter. In addition to our continued expectation to achieve profitability in the fourth quarter of 2025, we also remain on track to achieve sustainable annual profitability beginning in 2026. With that, I will now turn the call back to David for closing comments.

Thank you, Tatiana. Amid a challenging macro backdrop, our double-digit growth reflects the strength of our business fundamentals and the consistency of our execution. We're a company operating with focus and efficiency, maintaining financial discipline while advancing on one of the most differentiated injectable pipelines in aesthetics. As we move into the fourth quarter, we're deepening customer engagement with the introduction of our Eveless Portfolio Bundle, which aligns incentives and drives growth across our injectable portfolio. With Chabot in the number three share position and gaining on the market leader, Evelisse in the early stages of scaling, and ESTEEM set to launch in Europe in the first half of 2026, we are well positioned to deliver sustainable growth, profitability, and long-term shareholder value. Operator, you may now begin the Q&A.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Thank you. Our first question comes from the line of Annabel Sammy with Stiefel. Please proceed.

Guys, thanks for taking my question and great recovery on the quarter. I just wanted to ask you some questions about, I guess, the filler dynamic on Evelisse, how much... of what you're seeing for Evelisse includes a headwind for stocking versus seasonality versus, say, market sentiment. I guess maybe some macro commentary could be useful here. Like, you know, for example, has sentiment shifted? Is sentiment still poor for fillers? Or are you seeing meaningful headwind from free product for injectors to trial? And could you potentially quantify any of this? I guess from here, can you sort of give us a better sense of what we can expect of the cadence? And then just a, that was a lot of questions, but one more on this. I guess you mentioned there were about 4,000 trained and 2,000 have adopted, I believe. Do you have any metrics for the time that it takes to go from like, say, first training to second training, to second training and to adoption? How should we think about the conversion of those patients, or those physicians who have initially trained. Thanks.

Great. All really good questions, Annabelle, around Evelisse. And I'll try to maybe dimensionalize it for you for just a minute. If we take a couple steps back, the one thing I'd say is when we launched, we focused initially on our core Evelisse customers. And I'm really proud that in our first six months, When we look at our Jeveaux revenue, half of our revenue for Jeveaux is purchased Evelisse. So I think our focus on that Evelisse customer set has been very productive for us. To your point, the recipe that we've uncovered that's been effective is to expose them to the product through our sales force, uh bring them in for training one live hands-on training is very useful for them to have enough confidence to start trialing the product in their patients but it really is consistently that second training that changes from trialing the product or dabbling with it to turning into an adopter and that is really the key insight that we've gained over the last couple of quarters with this product we see a significant inflection point in those clinics when they get through that second training as you can imagine The first quarter that we launched, we had very few that actually had the opportunity to get trained two times. And so we started to see that more in the third quarter. And you can expect a number of those trainings. Second trainings are booked in the fourth quarter. That's a very significant part of the uptake within our core group. The second is in the fourth quarter, now that we've learned this product, and keep in mind, the U.S. is the first market that's launched Evelisse. So we're relying on our learnings here in the U.S. to continue to adapt our launch. We've now opened the door for Evelisse to go wider beyond our current Evelisse customer base. And so you'll see the results from us being able to replicate what we've done over the first six months with our core customer group to a broader audience. of customers. That's the second. And then lastly, as you pointed out, on the full year, the HA market, as we've read reports from our peers in the space, the market is down double digits. It continues to be relatively challenged, partly due to the macro environment. At the same time, Q3 is the seasonally low period. uh for injectables as well so you sort of have a compounding effect if you will in the that's unique to the third quarter whereas in contrast the fourth quarter we expect will be the strongest quarter of the year and will be now three quarters into our launch so as you think about uh our guide for the full year it reflects those market dynamics of those the fourth quarter being sort of the culmination now six months of experience our key learnings on the product, and the benefit of the seasonality working favorably for us.

Okay, great. Thank you.

Thank you. Our next question comes from the line of Mark Goodman with WeRig Partners. Please proceed.

Hi, everyone. This is Alyssa Larios on for Mark Goodman. Just a few questions from us. Could you comment on the usage trends between Evoli Smooth and Form and how those two different product lines are being used across the consumer base? And then can you give us an update on the advertising campaign and remind us exactly what channels you're using, whether it's DTC or going directly to the clinics themselves? And then finally, you mentioned that you intentionally avoided bundling the filler and toxin in the initial phase. I'm just curious what the rationale was for doing that. If you can walk us through your thought process. That's it. Thank you.

Great. Why don't I start with bundling, the advertising, and then I'll comment on the usage, assuming the format. I'd like Rui to add his color because both Rui and I have spent a lot of time with customers trying to understand how they do position it, and there are some interesting insights there. So just on the bundling piece, it became very clear to us as we were preparing for the launch of Evelisse that customers weren't looking for us to bring a new product to market and sort of force it on them because they're customers that use our primary product, Juveau. And instead, following a number of advisory board meetings and looking at prior product launches, we chose to take a different route, which is let the product stand on its own and allow these customers a period of multiple quarters to learn through the product before we start to think about bringing our portfolio together. So it was very deliberate. In the first quarter that we launched, the product was entirely independent. In the second quarter, we introduced consumer loyalty. We didn't want to introduce that too early. We wanted accounts to get comfort with the usage of the product before we exposed consumers to the loyalty benefits. And now in our third quarter following launch, it's now the right time where customers are asking us about what the future of our portfolio is. As you can imagine, they are currently partnered with the larger companies and they commit to these larger portfolio purchases as part of their ongoing commitment to gain better pricing. Today, by keeping them independent, there's no advantage to bringing the full portfolio under Evalyst. And so we provided this growth portfolio bundle offering in the fourth quarter as our first test of how we'll bring the portfolios together. And this will carry through into next year. And so this is our first attempt at doing that. And I can tell you that we tested it in one of our larger customer meetings that Tatiana mentioned that was a result of the phasing of spend in the Q4. And it was very, very successful in terms of the reception we got to it. On the DCC side, our strategy is more focused around co-branded media. So all of the advertising we do is surrounding each clinic individually. And we've been able to build a model with Evalyst where we do personalization at scale. And part of that personalization is around our co-branded media in the form of streaming TV spots. billboards within local markets and the heaviest portion of it is digital media that could be social it could be search and it does vary by market and as I said there are over 1,400 accounts that have participated in our co-branded media benefits so it's not an insignificant portion of our customer base but they have to meet certain purchasing criteria to gain those benefits and so and then lastly on the usage of smooth and form Both products have the same indication, which is a nasolabial fold, but the properties of the gel are very different. We're learning more and more about their personalities as injectors are generally purchasing both. We have very few that are entirely using one or the other, mainly because the properties are smoother, that's a softer gel, whereas the form product provides more structure. And so our label may be limited nasal labial fold, but of course the usage expands beyond that. And so what we're hearing consistently is where they're looking for a product to fill in areas to create more of a smoothing effect, that's where they're leaning towards smooth. And when they're looking for greater structure in a product, that's where they're reaching for the form. But all that transfers to really... Sure.

I'm going to paraphrase a little bit. The indication is actually broader. The indication is... medium to deep wrinkles and folds. And the nasolabial fold is one example of that. You can also go into the marionette lines and if you look under that lower lip, sometimes there's a deep fold in there, it's called the submental fold. And there's a lot of versatility with these products. And when a clinician looks at a wrinkle or a fold, for example, and this is one example, they can look at it strategically and think, I'm taking all the attributes of this patient. Are they thin? Are they heavy? Skin quality? All these different things. And if their strategy is to try to use something more superficially, then they'll reach for smooth. It's got a real logical profile that's very soft, and you can bring it up very superficial. If the strategy is different and you want to create a little bit more lift and you need some more lifting power, your strategy is going to be deeper. So you go into form. And sometimes you combine the two. You layer them. You want something with more lift underneath and you want to smooth it out. So that's one group. And then in Europe, Smoot's actually approved for perioral fine lines and off-label here in the United States, but we're living in a global environment and people understand that that product can be used so superficially that it'll be used in perioral lines. And the other thing that's come in that's been very interesting is there's a recurrent comment that these gels are incredibly efficient. And what they typically say is I reach for a gel and I may go for something that needs more lift, such as a form, and I get I'm done and I still have product left over. And this product's so forgiving that I can continue through different parts of the area or even go superficial in the area that typically couldn't with the gel that has these properties. So that's been the feedback so far. For us, that was kind of reassuring because it was very consistent with the feedback we got before we brought the product on. And that's always nice to see that confirmation.

Excellent. Thank you so much.

Thank you. Our next question comes from the line of Yvonne Tai with BNP Paribas. Please proceed.

Hi, good evening. First, can you discuss in more detail the Q3 actions underlying the sequential growth for Gévaud despite the seasonality, including that Devoluce Day event and practices support and potential promotional activities and whether you expect similar actions in Q4, such as the 11th day. And then second, we know that AbbVie commented on their Q3 call that their middle income customers for Botox are on the sidelines. So can you discuss the early signs of consumer stabilization that you are seeing? Thank you.

Sure. Thanks for the question, Navon. I think what we saw in the second quarter, as we commented before, was a unique point at the end of the quarter where we saw a pullback in customer purchasing that was really unique to the second quarter that we hadn't observed before. We did not see that dynamic in the third. We maintained a consistent promotional effort, and we always do, both on the consumer side through our loyalty platform where we did engage consumers that we saw stretching their intervals between treatments as a way to bring them back down, back into their normal routine. We also were able to do some things in the market around the clinics with partnerships We did have a partnership with a consumer magazine, Allure, where there was a gift with purchase that consumers were able to partner with us on that did drive a lot of interest in our product. And then, of course, now as we enter the fourth quarter, as you pointed out, this is our annual 11th day, which kicked off towards the end of October, and we're in the middle of it now, and it's a very important phase for us as our customers look at that annually.

Thank you.

Thank you. Our next question comes from the line of Yubir with Mizuho Securities. Please proceed.

Hey, guys. Yeah, congrats on the positive quarter here. So maybe a question on, well, could you maybe just tell us the split between U.S. and ex-U.S. sales for Javeau? And Maybe also kind of help us understand, you know, I think you indicated that you strengthen your 14% market share. Maybe just help us understand what you mean by that, as well as, you know, what are you kind of seeing, I guess, in terms of your customer base who are, you know, who who could be different from what AbbVie, the customer base that AbbVie or Galderma have. Thanks.

Yeah, let's start with what we're seeing in terms of just overall in the market. Obviously, the only two companies that report down their revenue and break out that level of detail is both us and AbbVie. So through that, What we see is a market that in the third quarter likely declined by some small degree, and we continue to outpace when you look at our year-to-date in the declining market. We've grown in terms of units. What's probably most promising is you see our consumer rewards data where the overall redemption, that's consumers going in, getting treated, It's up over 30% year on year. So we continue to see very healthy demand for the product in these clinics. And we're continuing to, we believe, improve our presence there. Now that all at the same time, we're establishing our beliefs in these clinics. So overall, we feel very good about how Javeau has performed out of the third quarter. And we hope to see that momentum continue. The second part was Yeah, that was a 14%, yeah, jurisdiction. Yeah, as far as the, we don't do segment reporting on the toxin business, so unfortunately we won't be able to give you that color, but we did in the script make the comment that both the U.S. and in the international business are growing positive in terms of units year-to-date. So I think it gives you some color around, you know, there's growth happening on both sides on top of Beverly's.

Okay. Can I sneak in another question? you know, you're now going to bundle the product. Maybe just help us understand the potential synergies that you could get from this. Do you expect, you know, in some of the accounts, I think you're heavily penetrated in terms of Gervaux. Do you expect greater, you know, significantly greater penetration there? Or do you think the synergies will work, sort of, will be greater synergies in terms of, Just help us understand the dynamic and the potential and the magnitude. Thanks.

Yeah, I think my view is the portfolio bundle is a long play for us. This is a very early innings. We've been operating as a single product company and without a bundle for seven years. And you've seen us establish Givaud as the fastest growing brand for the majority of those years since we entered the market. And we're the first company to break through the double digit mark outside of the initial two players to enter the space. We do believe this is a meaningful opportunity for Jouveau. There are countless conversations that we've had with clinics where their Jouveau usage is limited by the downside risk they have by moving over more of their share to us on their total purchasing with some of the competitive products. the idea of a bundle unlocks and alleviates some of that pressure. And I think the reason I say it's a longer-term endeavor is because Sculpt further unlocks it because it further expands our portfolio within the HA space, which is an important part of continuing to move more of their business over. So I view the fourth quarter as the first of many quarters to come where we'll start talking a little bit more about the advantage of the portfolio.

Okay. Thank you.

Thank you. Our next question comes from the line of Douglas Zhao with HC Renright. Please proceed.

Hi, good afternoon and congrats on the progress. David, I guess I'm just curious, have you seen that effect yet in the marketplace, meaning sort of accounts that were perhaps not purchasing Juvo because they were very defensive around sort of the bundle with Allergan or Appy and now are beginning to be able to purchase Juveau as well as Evelisse or is that more of the sort of a conversation that you're starting to have?

Yeah, we have had a combination of both inbound interest from accounts that weren't working with us on Juveau, and they're interested in Evelisse, and that opens the door for us to begin partnering with them. Now, keep in mind, Evelisse is still early, so some of those could be dabblers that will continue to expand their presence. And as a result of that, they've started to dabble with Juveau. So that's one group of customers. Another group are customers that have been somewhat moderate users of Juveau, and now with Evelisse, they're looking at us differently, and consistently in the conversation is, the idea of having a mid-phase product, that bringing in a differentiated mid-phase product, which is a big gap in a lot of portfolios in our industry, is going to be a significant point in time to do that. So we've used this, if you will, in three stages, right? The first six months was establishing a lease. The next six months is starting to establish our portfolio value proposition, and then opening the doors to follow as entire bundle to start to take advantage of it. So we've been deliberate about how we've tried to roll these out, especially to support our customers who've helped us get here.

And as a follow-up, David, I'm just curious, on the co-branded marketing side, is Juveau remaining the focal point or have you had accounts inquire or begin to actually do co-branded marketing where Evelisse is the focus?

So the third quarter, we started to put out co-branded media on Avalis. Some of those co-branded media ads had mentions of weight loss. As you know, we're the only hyaluronic acid that has mention of weight loss in our label. There's a lot of interest. Some of those are billboards now sitting around the U.S. Some of them are digital media. And that was one that many...

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Hello?

Yep.

We're back, Doug.

I think, David, we lost you midstream about the co-branded marketing.

Yeah, my only comment there was we are seeing co-branded marketing on Evelisse in the form of billboards as well as digital, with a number of them having the mention of weight loss, which is unique to our product. And as we mentioned on a prior call, the more you purchase from Evelisse, the more co-branded media dollars you earn. And then our team works with those clinics to choose which products they want to highlight between the two, Chabot and Evelisse. And we started to introduce this in the third quarter in the market, and it's going to continue to rise here as we enter the fourth quarter.

Okay, great. Thank you so much.

Thank you. Our next question comes from the line of Serge Bellinger with Needham & Company. Please proceed.

Hi, good afternoon. David, first question is on ordering patterns. Like you mentioned earlier, volumes and size of orders kind of dropped off at the end of the second quarter. Just curious what impact that had on inventory levels and the overall ordering pattern throughout 3Q and maybe what you've seen in the early part of 4Q right now. Secondly, I think Katjana mentioned that the The customer event was moved from 3Q to 4Q. I imagine that's the 11-day promotion. What impact did that have on OpEx, and could that be another tailwind for 4Q Juvo sales? Thanks.

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