STIFEL 2026 HEALTHCARE CONFERENCE - EVOLUS INC

Financial Performance:

• Revenue grew 14% year-to-date through Q3; Q3 results demonstrated strong momentum across all segments.
• Reaffirmed full-year 2024 revenue guidance of $330M–$337M, representing 11%–13% growth.
• Gross margin and adjusted EBITDA guidance reaffirmed, targeting low-to-mid-single digits as a percentage of revenue.
• Achieved four consecutive quarters of adjusted EBITDA profitability, driven by operating leverage and a diversified product portfolio.
• Operating expenses were reduced slightly year-to-date despite revenue growth, highlighting cost discipline.
• International revenue is projected to represent approximately 10% of the total revenue mix in 2024.
• Consumer Rewards Program boasts nearly 2 million members with a ~70% repeat treatment rate.

Guidance and Future Outlook:

• Aims to reach full portfolio maturity by 2028, featuring the launch of the "Sculp" mid-face filler in 2027 and a "Lip" product in 2028.
• Anticipates international expansion with "Esteem" product approvals in Canada, Australia, and New Zealand by 2028.
• Pipeline includes three new injectable products planned for introduction over the next four years, focusing on high-projection fillers and skin quality solutions.
• Hair rejuvenation program is in development with human data expected around late 2028, utilizing locally administered small molecules to align with a 3-4 month treatment cadence.
• Long-term strategy relies on converting existing accounts to a full portfolio mix to increase share of wallet and reduce dependency on single products.

Business Segments and Product Lines:

• Juveau (Toxin): The fastest-growing toxin in the U.S. over the last several years; achieved double-digit market share. Growth sustained by Phase III head-to-head data against the market leader and a recent JAMA-published independent study validating efficacy.
• Evelisse Fillers (Hyaluronic Acid): Two formulations ("Form" and "Smooth") launched in the U.S.; "Esteem" line launched in Europe in Q2. Currently capturing mid-single-digit market share with healthy reorder rates.
• Upcoming Launches: "Sculp" (high-projection, elastic material) is the anticipated flagship product for 2027, addressing the ~50% of HA market value related to mid-face and jawline procedures. "Lip" product follows in 2028.
• Profilo: A non-cross-linked HA product for skin hydration and rejuvenation (dermal biorevitalization); expected to complement the structural Evelisse line and meet patient demand for skin quality improvements.
• Bundling Strategy: Introduced a portfolio rebate program to incentivize joint purchasing of Juveau and Evelisse, aiming to increase share of wallet in existing accounts.

Market and Competitive Landscape:

• Aesthetics market characterized as healthy; toxin demand growing in the upper single-digit range.
• Filler market has stabilized after challenging years, moving toward mid-single-digit volume growth, driven by a shift toward natural-looking results (lower volume per treatment) and the emergence of the "GLP-1 patient."
• Evelisse is the only hyaluronic acid filler with a GLP-1 indication on its label, providing a distinct marketing advantage and targeting the specific volume loss concerns of patients on weight-loss drugs.
• Consumer demand remains strong among high-income households ($100k+), showing resilience against macroeconomic headwinds.
• Competition is intense with three established filler families, but Evelisse differentiates via superior injection precision and reduced need for "under-correction" due to gel stability.

Risks and Challenges:

• Market saturation in the filler space with established competitors protecting share through aggressive bundling and loyalty programs.
• Reliance on a single core product (Juveau) for a significant portion of revenue, necessitating successful filler portfolio expansion to sustain growth.
• Development and regulatory approval risks associated with pipeline assets like Profil, hair treatments, and potential future biostimulators.
• The need to rapidly build clinical confidence and injectable volume for new products like Sculp, which requires a ramp-up period post-launch.
• Potential shift in consumer sentiment regarding injectables, though current trends favor natural results and immediate volume correction.

Management Commentary and Tone:

• Management expressed high confidence and optimism, citing strong Q3 performance, operational efficiency, and product differentiation.
• Emphasized the company's "cash-pay" business model and "injector-first" commercial platform as a key moat, differentiating from traditional insurance-based models.
• Tone was assertive regarding the quality of Juveau and the technical superiority of Evelisse gels, particularly regarding precision and hydration properties.
• Highlighted the strategic importance of the "11-11" marketing event in driving Q4 revenue and deepening clinic partnerships.
• Confident in the sustainability of profitability due to established sales, medical education, and technology platforms that scale with new product introductions.

Analyst Questions and Answers:

• GLP-1 Impact: Confirmed that GLP-1 patients are a significant growth driver due to facial volume loss; Evelisse's label mention allows for targeted co-branded media campaigns (billboards, CTV).
• Penetration in Existing Accounts: Discussed the goal of increasing Juveau share within existing clinics (currently ~20% average share) by bundling with fillers to unlock rebates and reduce customer acquisition costs.
• Filler Growth Dynamics: Explained that apparent market stagnation in filler units is actually a shift to lower volumes per treatment for natural results, while patient volume is likely up mid-to-high single digits.
• Sculp Importance: Clarified that Sculp is critical for capturing the mid-face/jawline segment, which represents up to 50% of HA revenue value; noted early success in Europe where it became the leader within a quarter.
• Biostimulators: Acknowledged the market shift toward biostimulators but predicted a swing back to HA for immediate results; open to in-licensing advanced biostimulators to improve upon 25-year-old chemistry.
• Consumer Rewards: Detailed the SMS-based frictionless rewards program as a key differentiator that drives the 70% repeat rate by co-investing in clinic advertising.

Other Key Points:

• The company has trained nearly 16,000 clinicians through its robust medical education platform.
• Over 3,500 facilities have purchased Evelisse fillers within five quarters of launch, with reorder rates approaching Juveau levels.
• The "Esteem" line of fillers has been successfully introduced in Europe, expanding the international footprint beyond the US market.
• The company maintains a systematic protocol for adding ~500+ new accounts per quarter, focusing on clinics that value the cash-pay advantage.
• Q4 is historically the strongest quarter for the business, driven by holiday spending and major marketing events like "Juveau 11."