NEWPORT BEACH - Evolus, Inc. (NASDAQ: EOLS), a performance beauty company with a customer-centric approach focused on delivering breakthrough products, today announced its financial results for the fourth quarter and full year ended December 31, 2023.
'2023 was a defining year for Evolus. We achieved record market share as the fastest growing toxin in the U.S. for the third consecutive year2, expanded our portfolio globally with the addition of an innovative late-stage line of facial fillers, and delivered continued improvement in operating income performance,' said David Moatazedi, President and Chief Executive Officer of Evolus. 'We expect to be profitable1 for the fourth quarter of 2024 and the full year 2025.'
'As we enter 2024, we are reiterating our full year net revenue guidance of $255 million to $265 million, which represents 31% growth at the top end of the range. Looking beyond 2024, we remain excited about both the continued expansion of our U.S. and International business with the Jeuveau and Nuceiva brands, as well as the introduction of our highly synergistic Evolysse and Estyme dermal filler line, further increasing our market penetration and driving toward our total net revenue goal of at least $700 million by 2028.'
Fourth Quarter and Full Year 2023 Highlights and Recent Developments
The company's key performance indicators demonstrated continued strong momentum during the fourth quarter.
Accounts purchasing Jeuveau increased by a record high of more than 840 in the fourth quarter. This is 20% above the year-to-date quarterly average in the company's seasonally highest performance quarter.
During 2023, more than 2,900 new accounts were added, bringing the total number of accounts purchasing to date since launch to more than 12,400. The reorder rate among customers remains approximately 70%.3
Enrollment in the Evolus Rewards consumer loyalty program grew 55% in 2023 to end the year at approximately 750,000 consumers.4 This was aided by a record high of over 170,000 total redemptions in the fourth quarter, driven by continued demand from existing consumers receiving repeat treatments. Repeat treatments represented approximately 60% of the total treatments for the quarter, demonstrating strong brand loyalty.
Expanded global footprint by successfully commencing the commercial launch of Nuceiva in major European markets, including Germany, Austria and Italy.
Fourth Quarter 2023 Financial Results
Total net revenues for the fourth quarter of 2023 increased 40% to $61.0 million from $43.6 million in the fourth quarter of 2022 driven primarily by higher volumes of Jeuveau.
Gross profit margin and adjusted gross profit margin were 67.2% and 68.4%, respectively. Adjusted gross profit margin excludes amortization of intangible assets.
Operating expenses for the fourth quarter of 2023 were $69.6 million, compared to $63.5 million in the third quarter of 2023; Q4 2023 operating expenses included $4.4 million of IPR&D expense related to the Share Issuance for the European Filler License Agreement.
Non-GAAP operating expenses for the fourth quarter of 2023 were $45.5 million, compared to $40.3 million in the third quarter of 2023; Q4 2023 Non-GAAP operating expenses included $4.4 million of IPR&D expense related to the Share Issuance for the European Filler License Agreement. Non-GAAP operating expenses exclude product cost of sales, stock-based compensation expense, revaluation of the contingent royalty obligation, and depreciation and amortization.
Loss from operations for the fourth quarter of 2023 was $8.6 million, compared to $13.4 million in the third quarter of 2023.
Non-GAAP loss from operations in the fourth quarter of 2023 was $3.7 million, compared to $5.7 million in the third quarter of 2023. Non-GAAP loss from operations excludes stock-based compensation expense, revaluation of the contingent royalty obligation, and depreciation and amortization.
Cash and cash equivalents on December 31, 2023 were $62.8 million, compared to $38.7 million on September 30, 2023. The cash balance on December 31, 2023 included additional borrowings of $25.0 million under the company's credit facility with Pharmakon; $0.8 million of cash was generated from operations in the fourth quarter. This continued improvement in cash generation demonstrates progress towards cash flow breakeven. Evolus continues to expect its existing liquidity will fully fund it to sustained profitability1 in 2025.
Full Year 2023 Financial Results
Total net revenues for 2023 increased 36% to $202.1 million, surpassing the top end of the company's updated guidance of $194 million to $198 million introduced in November 2023, reflecting increasing consumer demand and market share gains.
Gross profit margin and adjusted gross profit margin were 68.1% and 69.5%. Adjusted gross profit margin, which excluded amortization of intangibles, is aligned with company guidance of 68% to 71%.
Operating expenses were $251.3 million in 2023, compared to $213.9 million in 2022. Non-GAAP operating expenses were $163.9 million in 2023 and in alignment with company guidance range of $160 million to $165 million. Non-GAAP operating expenses for 2022 were $137.7 million. Non-GAAP operating expenses exclude product cost of sales, stock-based compensation expense, revaluation of the contingent royalty obligation, and depreciation and amortization.
Loss from operations was $49.2 million for 2023, compared to $65.3 million in 2022. Non-GAAP loss from operations in 2023 decreased by 48% to $23.4 million from $45.0 million in 2022. Non-GAAP loss from operations excludes stock-based compensation expense, revaluation of the contingent royalty obligation expense, and depreciation and amortization.
Outlook
Evolus expects total net revenues for the full year 2024 to be between $255 and $265 million, representing year-over-year growth of 26% to 31% from 2023 results and well above the estimated growth rate of the aesthetic neurotoxin market.
Evolus expects its adjusted gross profit margin for the full year 2024 to be between 68% and 71%, consistent with 2023 guidance.
Evolus expects its full year non-GAAP operating expenses to be between $185 and $190 million.
The company expects to achieve positive non-GAAP operating income on a consolidated basis for the fourth quarter of 2024 and for the full year 2025. Within the year 2025, profitability1 may not be sustained every quarter due to the filler launch. The company remains fully funded with existing liquidity.
The company projects its total net revenue can reach at least $700 million by 2028, a compound annual growth rate of 28% from 2023, based on the combination of its existing aesthetic neurotoxin business and anticipated launch of the Evolysse HA dermal filler product line beginning in 2025.
During 2024, Evolus expects to broaden its global footprint by expanding into additional countries with Nuceiva, most notably Australia and Spain.
Evolus anticipates submitting Premarket Approval (PMA) applications for the first two Evolysse dermal filler products with the FDA by mid-year 2024 and expects regulatory approvals for the remaining Estyme dermal filler products in Europe in late 2024.
About Evolus, Inc.
Evolus (NASDAQ: EOLS) is a global performance beauty company evolving the aesthetic neurotoxin market for the next generation of beauty consumers through its unique, customer-centric business model and innovative digital platform. Our mission is to become a global, multi-product aesthetics company based on our flagship product, Jeuveau (prabotulinumtoxinA-xvfs), the first and only neurotoxin dedicated exclusively to aesthetics and manufactured in a state-of-the-art facility using Hi-Pure technology. Evolus is expanding its product portfolio having entered into a definitive agreement to be the exclusive U.S. distributor of Evolysse, and the exclusive distributor in Europe of Estyme, a line of unique dermal fillers currently in late-stage development.
Forward-Looking Statements
This press release contains forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, including statements about future events, our business, financial condition, results of operations and prospects, our industry and the regulatory environment in which we operate. Any statements contained herein that are not statements of historical or current facts are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as 'anticipate,' 'believe,' 'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'plan,' 'potential,' 'predict,' 'project,' 'should,' 'will,' 'would' or the negative of those terms, or other comparable terms intended to identify statements about the future. The company's forward-looking statements include, but are not limited to, statements related to market conditions and consumer demand; expectations regarding regulatory approvals, product launches, and market adoption for the Evolysse and Estyme dermal filler product lines the company's long-term revenue outlook and its financial outlook for 2024 and the company's cash position and expectations for reaching profitability and funding the company's operations.
The forward-looking statements included herein are based on our current expectations, assumptions, estimates and projections, which we believe to be reasonable, and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties, all of which are difficult or impossible to predict accurately and many of which are beyond our control, include, but are not limited to uncertainties associated with our ability to comply with the terms and conditions in the Medytox Settlement Agreements, our ability to fund our future operations or obtain financing to fund our operations, unfavorable global economic conditions and the impact on consumer discretionary spending, uncertainties related to customer and consumer adoption of Jeuveau and Evolysse, the efficiency and operability of our digital platform, competition and market dynamics, our ability to successfully launch and commercialize our products in new markets, including the Evolysse dermal filler product line in the U.S., our ability to maintain regulatory approvals of Jeuveau or obtain regulatory approvals for new product candidates or indications, our reliance on Symatese to achieve regulatory approval for the Evolysse dermal filler product line in the U.S., and other risks described in our filings with the Securities and Exchange Commission, including in the section entitled 'Risk Factors' in our Annual Report on Form 10-K for the year ended December 31, 2023 expected to be filed with the Securities and Exchange Commission on or about March 7, 2024. These filings can be accessed online at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as required by law, we undertake no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events. If we do update or revise one or more of these statements, investors and others should not conclude that we will make additional updates or corrections.
Contact:
Nareg Sagherian
Tel: 248-202-9267
Email: ir@evolus.com
EVOLUS, INC. 
