Q3 2023 Evolus Inc Earnings Call
Good afternoon and welcome to.
Everest third quarter 2023 earnings conference call at this time, all participants are in a listen only mode. A question and answer session will follow the prepared remarks. As a reminder, this conference is being recorded I would now like to turn the conference over to your host Mr. Nate Mitchell from Investor Relations Nate.
Okay.
Speaker 1: Thank you, operator, and welcome to everyone joining us on today's call. With me today, our David Motizetti, President and Chief Executive Officer, Ruiya Lour, Chief Medical Officer, and Head of R&D and Sandra Beaver, Chief Financial Officer.
Thank you operator, and welcome to everyone joining us on today's call with me today are David Motors, Eddie President and Chief Executive Officer.
Our chief Medical Officer, and head of R&D, and Sandra Fever, Chief Financial Officer.
Speaker 1: Our prepared remarks today 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.
Our prepared remarks today will include forward looking statements within the meaning of United States Securities laws.
Management may make additional forward looking statements in response to your questions.
Speaker 1: 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.
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.
Speaker 1: 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. Actual results may differ materially from those expressed in or implied by the forward-looking statements.
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 actual results may differ materially from those expressed in or implied by the forward looking statements.
Speaker 1: The company undertakes no obligation to update or review any estimate projection or forward what you see.
The company undertakes no obligation to update or review any estimate.
Projections are forward looking statements.
Speaker 1: Additionally, today's discussion will include non-GAAP financial measures, which be considered in addition to another substitute for an isolation from our GAAP results. A reconciliation of GAAPs and non-GAAP results may be found in our earnings release, which was furnished with our form 8K filed today with the SEC, and on our Master Relations website at ebless.com.
Additionally, today's discussion will include non-GAAP financial measures, which should be considered in addition to and not 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 8-K.
Today with the SEC and on our Investor Relations website at <unk> Dot com.
Speaker 1: Following the conclusion of today's call, a replay will be available on our website at evelyss.com. With that, I'll turn the call over to David.
Following the conclusion of today's call a replay will be available on our website at <unk> dot com with that I'll turn the call over to David.
Speaker 2: Thank you, Ned. We are very pleased to see the increasing momentum of our business driven by strong execution, which is translated into record quarterly revenue and record low cash firm. And what is historically the seasonally lowest for the injectable category. Our focus has been.
Thank you.
We are very pleased to see the increasing momentum of our business driven by strong execution, which has translated into record quarterly revenue and record low cash burn and what is historically, our seasonally lowest for the injectable category.
Our focus has been consistent and intentional.
Speaker 2: We're building a beauty brand for the younger generation, which represents the fastest growing segment of the neurotoxin market.
We're building a beauty brand for the younger generation, which represents the fastest growing segment of the neurotoxin market.
Speaker 2: This different changes approach to market your vote has resulted in the highest quarterly revenue in the company's history.
This differentiated approach to markets.
Has resulted in the highest quarterly revenue in the company's history.
Speaker 2: Our reported revenue of $50 million reflects 48% growth year-over-year and represents a sequential increase over the second quarter.
Our reported revenue of 50 million reflect 48% growth year over year and represents a sequential increase over the second quarter.
Speaker 2: We've also maintained a strong focus on operating expenses. And I'm pleased to report that our operating cash burn was at an all-time low of 0.9 million this quarter. Putting us on a pathway to profitability with our existing liquidity.
We've also maintained a strong focus on operating expenses and I'm pleased to report that our operating cash burn was at an all time low or 0.9 million this quarter, putting us on a pathway to profitability with our existing liquidity.
Speaker 2: Our success in the quarter demonstrates the strength of our brand-building efforts and the resilience of the toxin market, which remains healthy as consumers continue to prioritize their spend on beauty.
Our success in the quarter demonstrates the strength of our brand building efforts and the resilience of the toxin market, which remains healthy as consumers continue to prioritize their spend on beauty.
Speaker 2: Talksins are a great value for consumers due to the consistency and outcomes and affordability of the treatment.
Auctions are a great value for consumers due to the consistency and outcomes and affordability to treatment.
Speaker 2: We believe Jevo is well positioned as a beauty brand in this market and will continue to capture this increasing demand.
We believe <unk> is well positioned as a beauty brand in this market and we will continue to capture this increasing demand.
Speaker 2: The success of our consumer centric strategy was demonstrated during the quarter in the number of total consumer loyalty revolutions, which eclipsed 1.2 million since the program was introduced in 2020.
The success of our consumer centric strategy was demonstrated during the quarter and the number of total consumer loyalty redemption, which eclipsed $1 2 million since the program was introduced in 2020.
Speaker 2: In the quarter, we reached an all-time high of 149,000 redemption, demonstrating sustained and strong brand loyal.
In the quarter, we reached an all time high of 149000 redemption, demonstrating sustained and strong brand loyalty.
Speaker 2: On the market penetration side, we added more than 650 new accounts in a quarter, bringing our total purchasing customer account to nearly 11,600.
On the market penetration side, we added more than 650, new accounts in the quarter, bringing our total purchasing customer count to nearly 11600 <unk>.
Speaker 2: As a reminder, with over 30,000 aesthetic customers in the United States, we continue to have a significant opportunity to further expand our market penetration over the coming years.
As a reminder, with over 30000 customers in the United States. We continue to have a significant opportunity to further expand our market penetration or the coming years.
Speaker 2: In our international operations, New Seabuzz now commercials in four major countries.
In our international operations News Ive is now commercial or major countries I'm proud of the progress we've made with the small and nimble team.
Speaker 2: I'm proud of the progress we've made with the small and nimble
Speaker 2: This week we celebrated one year since New Seabuff was first launched in Great Britain.
This week, we celebrated the one year since you see Bob was first launched in Great Britain.
Speaker 2: Earlier this year we launched in Germany and Austria and most recently we launched in Italy which is also a very strong start.
Earlier this year, we launched in Germany, and Austria, and most recently, we launched in Italy, which is off to a very strong start.
Speaker 2: Europe represents an estimated high single digit millions in sales in 2023 and is key to our overall long-term growth strategy.
Europe represents an estimated high single digit millions in sales in 2023 and is key to our overall long term growth strategy.
Speaker 2: The combination of continued strength and execution and increasing momentum gives us the confidence to raise, again, our full year 2023 revenue guidance to be between 194 and 198 million. This updated guidance equates to over 30% growth for the fiscal year and it is magnitude greater than the estimated category growth.
The combination of continued strength in execution and increasing momentum gives us the confidence to raise again, our full year 2023 revenue guidance to between 194 and $198 million. This updated guidance equates to over 30% growth for the fiscal year.
And it is magnitudes greater in the estimated category growth rate.
Speaker 2: Looking beyond 2023, we remain highly confident in our 2028 sales goal of $700 million, which is driven by the strong market opportunity of Jubeau in the United States, the international expansion of Nuceva, and the introduction of the Evalese line of fillers in the U.S. beginning in 2025.
Looking beyond 2023, we remain highly confident in our 2020 sales goal of.
$700 million, which is driven by the strong market opportunity a few boat in the United States.
International expansion, a receiver and the introduction of the at least lineup killers in the U S. Beginning in 2025.
Speaker 2: Avalos continues to differentiate itself and outpace the growth of our competitors, leading with a strong beauty brand, a unique strategy targeting millennials, and a cash-paid business model that rewards customer loyalty. Our platform for growth continues to scale with Chabot and Ustiva, experiencing tremendous growth as evidenced by our third quarter results.
Atlas continues to differentiate itself and outpaced the growth of our competitors, leading with a strong beauty brand a unique strategy targeting millennials and a cash pay business model that rewards customer loyalty our platform for growth continues to scale with you about our new CEVA experiencing tremendous.
This growth as evidenced by our third quarter results.
Speaker 2: Moving to our R&D efforts, I would like to provide an update on several of our pipeline assets.
Moving to our R&D efforts I would like to provide an update on several of our pipeline assets.
Speaker 2: Today we will provide enough data on the first two expected injectable products within the Evelace line of filler.
Today, we will provide an update on the first two expected injectable products within the Avalon each line of fillers.
Speaker 2: Rui will also review the final Phase 2 Extra Strengths Revolt results.
Really want to review the final phase two extra strengths are about results.
Starting with our beliefs.
Speaker 2: We continue to make progress over the past quarter. And our please to provide an update on our filing for the first two heavily spillers.
We've continued to make progress over the past quarter and are pleased to provide an update on our filings for the first two at least fillers.
Speaker 2: which we expect to be completed by summer 2024.
Which we expect to be completed by summer 2024.
Speaker 2: This keeps us on track to launch EVILIES in the US in 2025. On Monday, we announced the results from the base to clinical study evaluating the extra strength 40 unit dose for extended duration of Shibou. The only neurotoxin dedicated exclusively to aesthetics.
This keeps us on track to launch I believe in the U S. In 2025.
On Monday, we announced the results from the phase two clinical study evaluating <unk> Valley.
Evaluating the extra strength 40 unit dose for extended duration of you're about the only neurotoxin dedicated exclusively to us.
Speaker 2: The final data presented this past weekend in Chicago at the American Society for Dermatologic Surgery demonstrated 26 weeks or 6 months of performance with the extra strength dose of 40 units.
The final data presented this past weekend in Chicago at the American Society for Dermatologic surgery demonstrated 26 weeks or six months of performance with the extra strength dose of 40 units.
Speaker 2: The final day two outcomes were consistent with interim findings and reinforce that longer lasting effects, particularly up to 26 weeks, can be achieved with the extra strength 40 unit formulation of Shibov. I would now like to turn the call over to Rui Adelar, who will walk us through the findings.
I don't think two outcomes were consistent with interim findings and reinforced that longer lasting effects.
Particularly up to 26 weeks can be achieved with the extra strength 40 unit formulation of <unk> I would not know like to turn the call over to <unk>, who will walk us through the findings.
Speaker 1: Thank you. And David mentioned, I'd like to share with you the final top line results of the Jebot Existering Study that were presented this past Friday at ASDS in Chicago.
Thank you and as David mentioned I'd like to share with you. The final top line results of the Chipotle extra strength study that were presented this past Friday at <unk> in Chicago.
Slide two.
Speaker 1: The study looked at safety and duration of the effect when the Jabot dose was doubled and hyperconcentrated.
The study looked at safety and duration.
When did you fold dose was doubled and type of concentrated.
Speaker 1: The primary objective of the study was to see how long it took a patient after a single treatment to return back to their baseline bloodbiller wrinkles at maximum frowned as assessed by the investigator.
The primary objective of the study to see how long it took a patient after a single treatment.
A return back to their baseline compel of wrinkles that maximum frown.
By the investigator.
Speaker 1: This is a metric that's been used by others and has the advantage of being independent of a scale when looking across studies.
This is a metric that's been used by others and has the advantage of being independent of the scale when you're looking at cross studies.
Great.
Speaker 1: The study was carried out at these five clinical sites.
The study was carried out at DS five clinical sites.
Okay.
Slide four.
Speaker 1: The design was double-blind, randomized, with two active controls, 20 units as your bow and 20 units of botox on label.
The design was double blind randomized with two active controls 20 units as your BOE 20 units of Botox on label.
Speaker 1: The duration of the trial was one year or when the patient returned back to their baseline.
The duration of the trial was one year or when the patient returned back to their baseline.
Speaker 1: As with all registration trials, patients have to be rated as either moderate or severe on the four-point globular line scale to be eligible for the study.
All registration trials patients had to be rated as either moderate or severe on the four point glabella lines scale to be eligible for the study.
Slide five.
Speaker 1: The patient demographics were typical for this type of study, primarily women in their late 40s.
The patient demographics were typical for this type of study primarily women in their late Forty's.
Slide six.
Speaker 1: When looking at the baseline glabellar severity.
When looking at the baseline clipped behler severity.
Speaker 1: It is notable that most of the subjects were rated as severe, both by the investigator and the patients themselves.
It is notable that most of the subjects were rated as severe Bose.
Both by the investigators and the patients themselves.
Slide seven.
Speaker 1: With regards to safety, there were 35 adverse events in total and these occurred in 26 patients. All adverse events includes events that are both related and unrelated to the study drug whereas drug-related adverse events refer to events caused by the drug. There is no difference
With regards to safety there were 35 adverse events in total and these occurred 26 patients all adverse events includes events that are both related and unrelated to the study drug whereas drug related adverse events refer to events caused by the drug.
There was no difference between the three groups.
Speaker 1: Below the table, the actual drug-related events have been itemized, with headaches being the most common, and there was one case of isoptosis in the 40-unit Chivor.
Below the table the excellent drug related events itemized with headaches being the most common and there was one case of Baidu ptosis, and a 40 unit Siobhan.
Slide eight.
Speaker 1: In terms of adverse event severity, 88.9% were rated as mild, with no difference between the groups, and importantly, there were no serious adverse events.
In terms of adverse events severity 88, 9% were rated as mild with no difference between the groups and importantly, there was no serious adverse events.
Nine.
Speaker 1: The primary objective of the study was to look at how long it took a patient to return back to their baseline, irrespective of their libellar Lyme severity, as assessed by the investigator.
The primary objective of the study was to look at how long it took a patient to return back to their baseline irrespective of their glabella lines severity as assessed by the investigator.
Speaker 1: The 40-unit Givaud extra-strength Kaplan-Meier plot shows 26 weeks or 6 months to return to their baseline, and the controls lasted 21 weeks, consistent with previous studies.
The 40 units shipped though extra strength Kaplan Meier plot shows 26 weeks or six months to return to their baseline and the controls lasted 21 weeks consistent with previous studies.
Speaker 1: The hazard ratios and p-values also provided and demonstrated statistical superiority for the 40-unit arm compared to the 20-unit control arms.
The hazard ratios and P values also provided and demonstrated statistical superiority for the sport unit are compared to the 20 unit control arms.
Slide 10.
Speaker 1: A one-point improvement on the Glabellar Line Scale, which is by definition a clinically meaningful response, demonstrated the same duration results.
A one point improvement on the glabella lines scale, which is by definition clinically meaningful response demonstrated the same duration results.
Slide 11.
Speaker 1: As an alternative, a way to assess treatment effects is to use the Global Aesthetic Improvement Scale. By investigator assessment, the duration was 26.3 weeks or 6 months. Again, Chabot extra strength was statistically superior to both controls.
That's an alternative way to assess treatment effect is to use the global aesthetic improvement scale.
The investigator assessment the duration was $26 three weeks for six months again Chabot extra strength was statistically superior to bulk controls.
12.
Speaker 1: Here, we're looking at responder rates over time. To be a responder, one has to have none or mild globular lines.
Here, we're looking at responder rates over time can be a responder one has to have none or mild glabella lines.
Speaker 1: Looking at the graph, one can see the percentage of responders over time, and that in the 40-unit arm, there's always more responders, and it lasted longer compared to the control.
The graph one can see the percentage of responders over time and that in the 40 unit arm. There was always more responders and it lasted longer compared to the controls.
Speaker 1: There were no in-office visits between day 2 and day 30 to decrease the burden on patient visits and avoid dropouts. Emphasis was on monthly visits. This contributed to a high study completion rate of 94.7%.
There were no in office visits between day, two and day 30 to decrease the burden on patient visits and appoint dropouts emphasis was on monthly visits this contributed to our highest study completion rate of 94, 7%.
Slide 13.
Speaker 1: When using the responder definition of non- or mild lavellar lines, it's important to understand the implications.
We used to build the responder definition of none or mild.
It's important to understand the implications.
Speaker 1: Having no globular lines or mild ones is clinically meaningful measure since in real life these patients do not require a repeat treatment. However, when using this as a responder definition, it's important to understand the baseline severity between the groups since it can impact the results.
Having no glabella lines or mild ones is clinically meaningful measure sense in real life. These patients do not require repeat treatment.
However, when using this as a responder definition, it's important to understand the baseline severity between the groups since it can impact the results.
Speaker 1: If a group consists mostly of moderates before the treatment, they only need a one point improvement. In contrast, if a group mostly of severes, we need a two point improvement to become a responder.
If a group consists mostly since years before treatment and they only need one point improvements become responder. In contrast, a group that has mostly severest sorry, if a group is supposed to have moderates before the treatment they only need a one point improvement.
In contrast, if group mostly severe.
We'd need a two point improvement become responders.
Slide 14.
Speaker 1: We're frequently asked how 40 units of Jeuveau compares to 40 units of Daxi. While a direct comparison requires...
We're frequently asked how 40 units as your BOE compares to 40 units a backseat while it direct comparison requires a head to head study.
He was an attempt at all really the data from their perspective.
Respective clinical trials and using the same measurements.
Speaker 1: In this combined graph, we have 40-unit CHVO non- or mild results as assessed by both the investigated subject compared to the 40-unit DAXI Sikora 1 results as they appear in their FDA-approved label. Note that due to the baseline characteristics in each study, most of the DAXIFY patients only required a one-point improvement to become a responder. In contrast, most of the CHVO patients required a two-point improvement.
And this combined graph, we have 40 units shipped though none or mild results as assessed by both the investigator subject compared to the 40 in a taxi syncora one results as they appear in their FDA approved label.
No that just the baseline characteristics in each study most of the tax of five patients only required a one point improvement to become responder.
Contrast, most of they should vote patients required a two point improvement.
Speaker 1: The results also seem to suggest that Chabot lasts longer over time.
The results also seem to suggest that you bolt lasts longer over time.
Speaker 1: Slide 15, comparing the Jibo 40 units to the Daxify 40-unit results from Sakura 2, as published in their FDA label, again, demonstrates a similar pattern, even though most of the Jibo patients required a two-point improvement.
Slide 15.
Comparing the jumbo 40 units to the DAC supply 40 unit results from Chicago to as published in their S. T. A label again demonstrates a similar pattern, even though most of that you're both patients required a two point improvement.
16.
Speaker 1: The most stringent measure of efficacy is the two-point composite score, which is why the FDA mandates it as the primary endpoint in all toxin pivotal studies.
The most stringent measure of efficacy is the two point composite score, which is why the F. T mandates at the primary endpoint can all toxin pivotal studies.
Speaker 1: Using this as a responder definition, success is defined as achieving a grade of none or mild and a two-grade improvement from the baseline and both the investigator and the subject agreeing this happened independently and concurrently.
Using this as a responder definition success is defined as achieving a grade of none or mild and two great improvement from the baseline and both the investigator and the subjects are green this happening independently and concurrently.
Speaker 1: This two-point composite endpoint represents the highest bar and the FDA also suggests it should be used to look at duration.
This two point composite endpoint represents the highest bar N D. M. D. Also suggests it should be used to look at duration.
17.
Speaker 1: In this last graph, we compare the two-point composite scores for both 4D units to those of DAXify 4D units from Sakura 1 and Sakura 2 as published in their FDA label.
In this last graph, we compare the two point composite scores for both 40 units to those attacks of 540 units from so called one in CCAR two as published in their FDA label.
Speaker 2: The Chabot responder rates are higher at all measure time points, and the overlay of graph also suggests the duration is longer for Chabot.
Did you bow responder rates are higher at all measured time points and be open their scrap also suggests the duration is longer for example.
Slide 18 in summary.
Speaker 1: Extra Strength Jeuveau demonstrated 26 weeks of duration, or 6 months, over multiple metrics, and there seemed to be no difference in safety compared to active controls, with 88.9% of adverse events being rated as mild and no serious drug-related adverse events. With that, I'll turn it back to you, David.
Extra strength gibeau demonstrated at 26 weeks of duration or six months over multiple metrics and there seem to be no difference in safety compared to active controls with 88, 9% of adverse events rated as mild and no serious drug related adverse events with that I'll turn it back to you.
Yeah.
Speaker 2: This data set conclusively puts to rest the relative contribution of dose to duration. Going into the Phase 2 studies, we were expecting to see 24 weeks of longevity with Chabot in line with other 40 unit doses of toxin, and these final results exceeded our expectations with most time points achieving 26 weeks.
Thanks Marie.
This dataset conclusively puts to rest the relative contribution of dose to duration.
Going into the Phase II studies, we were expecting to see 24 weeks of longevity wish you. Both in line with other 40 unit doses of toxin and these final result exceeded our expectation with most time points achieving 26 lease.
Speaker 2: This is a successful outcome that gives Evalyst the ability to offer treatment options for customers and their patients using the same original strength Chevot file, simply by changing how the product is reconstructed.
This is a successful outcome that gives us the ability to offer treatment options for customers and their patients using the same original strain chabot awhile simply by changing how the product is reconstituted.
Speaker 2: On the filler side, we remain excited about the differentiation of the Evalese portfolio and its potential to become one of the leading HA fillers in the U.S.
On the pillar side, we remain excited about the differentiation the abilene portfolio and its potential to become one of the leading H eight pillars in the U S.
Speaker 2: Our cash pay-focused platform was designed for scale, and there are tremendous synergies we can achieve by leveraging our seasoned sales force and our rapidly growing customer loyalty program to launch this innovative new technology alongside our flagship, Juba.
Our cash pay focused platform was designed for scale and there are tremendous synergies, we can achieve by leveraging our seasoned sales force and our rapidly growing customer loyalty program for losses innovative new technology alongside our flagship Duval.
Speaker 2: We continue to believe the combination of a highly competitive filler line and our growing customer base provides a unique opportunity to build a durable brand that adds tremendous value to Evelyn and our shareholders. Now I'll turn it over to Sandra, who will cover the financials. Thank you, David.
We continue to believe the combination of a highly competitive pillar lives and our growing customer base provides a unique opportunity to build a durable brand that adds tremendous value to Atlas and our shareholders now I'll turn it over to Sandra who will cover the financials.
You gave it.
Speaker 3: Our strong growth this quarter demonstrates our success and execution of our long-term strategy to become a top brand in the growing performance beauty market. I'd like to congratulate the Eveless team for a record quarter of above-market overall performance, including record highs in sales and our key metrics, and for continued focus on diligent operating expense and cash management.
Our strong growth this quarter demonstrates our success in execution of our long term strategy to become a top brand in a growing performance beauty market.
Like to congratulate Gasless team for a record quarter of above market overall performance, including record high and our key metrics and for continued focus on diligent operating expense and cash management.
Speaker 3: global net revenues for the third quarter were $50 million, up 48% compared to net revenue in the third quarter of 2022, with U.S. sales comprising more than 95% of the total revenue, driven primarily by higher volume.
Global net revenues for the third quarter were $50 million up 48% compared to net revenue in the third quarter of 2022, when U S sales comprising more than 95% of total revenue driven primarily by higher volumes.
Speaker 3: We continue to experience strong pricing in the U.S., with our average selling price in 2023 modestly increasing compared to the same period last year, while our customer reorder rate remains above 70%.
We continue to experience strong pricing in the U S with our average selling price in 2023 modestly increasing compared to the same period last year, while our customer reorder rate remained above 70%.
Speaker 3: Our reported gross margin for the third quarter was 67.7%, and our adjusted gross margin, which excludes the amortization of intangibles, was 69.1%, and in line with our guidance of 68 to 71%.
Our reported gross margin for the third quarter was 67.7% our adjusted gross margin, which excludes the amortization of intangible was 69, 1% and in line with our guidance of 68% to 71%.
Operating expenses declined sequentially in Q3 as compared to Q2.
Our GAAP operating expenses for the third quarter were $63 4 million compared to $64 5 million in the second quarter.
Speaker 3: non-GAAP operating expenses for the third quarter were $40.3 million compared to $42.7 million in the prior quarter. As a reminder, non-GAAP operating expenses exclude product cost of sale.
non-GAAP operating expenses for the third quarter were $40 3 million compared to $42 7 million in the prior quarter as.
As a reminder, non-GAAP operating expenses exclude product cost of sales.
Speaker 3: Reported selling general and administrative expenses for the third quarter were $43.3 million compared to $41.2 million recorded in the second quarter with the increase mainly attributable to higher commercial costs.
Reported selling general and administrative expenses for the third quarter were $43 3 million compared to $41 2 million recorded in the second quarter with the increase mainly attributable to higher commercial costs.
Speaker 3: This quarter, SG&A expenses include $4.3 million of non-cash, stock-based compensation, compared to $4 million in the second quarter.
This quarter SG&A expenses include $4 3 million of noncash stock based compensation compared to $4 million in the second quarter.
Speaker 3: Our non-GAAP loss from operations in the third quarter was $5.7 million, compared to $8 million reported in the second quarter.
Our non-GAAP loss from operations in the third quarter was $5 7 million compared to 8 million reported in the second quarter.
Speaker 3: non-GAAP operating losses declined $2.2 million as compared to Q2 and $7.5 million as compared to Q3 2022, which represents a 57% year-over-year improvement, continuing our trend toward profitability.
non-GAAP operating losses declined 2.2 million as compared to Q2, and $7 5 million as compared to Q3, 2022, which represents a 57% year over ear improvement continuing our trend towards profitability.
Speaker 3: Consistent with our initial 2023 guidance, we continue to expect to achieve non-GAAP operating profitability in the fourth quarter, excluding our investments related to EVELY.
Consistent with our initial 2023 guidance, we continue to expect to achieve non-GAAP operating profitability in the fourth quarter, excluding our investments related to I believe.
Speaker 3: Both non-GAAP operating expenses and non-GAAP loss from operations exclude stock-based compensation expense, revaluation of the contingent royalty obligation, and depreciation and amortization.
non-GAAP operating expenses and non-GAAP loss from operations excludes stock based compensation expense revaluation of the contingent royalty obligation and depreciation and amortization.
Turning to the balance sheet.
Speaker 3: We ended the third quarter with $38.7 million in cash, compared to $41.7 million at June 30, 2023. During the quarter, we had a record low in quarterly cash use of $3 million. In the quarter, net cash used for operating activities was $0.9 million.
We ended the third quarter with $38 7 million in cash compared to $41 7 million at June 32023.
During the quarter, we had a record low in quarterly cash use of $3 million.
In the quarter net cash used for operating activities was 0.9 million now.
Speaker 3: Net cash used in the third quarter of 2023 continued its sequential quarterly decline throughout 2023, further demonstrating our continued progress towards cash flow rates.
Net cash used in the third quarter of 2023 continued its sequential quarterly decline throughout 2023 further demonstrating our continued progress towards cash flow breakeven.
Speaker 3: Before we turn to Q&A, I would like to summarize our 2023 guidance.
Before we turn to Q&A I would like to summarize our 2023 guidance.
Speaker 3: Based on our strong year-to-date performance and confidence in the resilient toxin market, we now expect total net revenues for the full year of $194 to $198 million. This equates to over 30% growth for the fiscal year.
Based on our strong year to date performance and confidence in the resilient toxin market. We now expect total net revenues for the full year of $194 million to $198 million. This equates to over 30% growth for the fiscal year.
Speaker 3: an adjusted gross margin in the range of 68 to 71 percent, unchanged from our prior guidance.
And adjusted gross margin in the range of 68% to 71%.
Unchanged from our prior guidance.
Speaker 3: Full year 2023 non-GAAP operating expenses between $153 million and $158 million, also unchanged from prior guidance.
Full year 2023, non-GAAP operating expenses between 153, and 158 million also unchanged from prior guidance.
Speaker 3: Other modeling assumptions for 2023 include quarterly interest expense of $3.5 million and full year weighted average shares outstanding of approximately $57 million.
Other modeling assumptions for 2023 include quarterly interest expense of $3 5 million.
Full year weighted average shares outstanding of approximately $57 million.
Speaker 3: Looking beyond 2023, we continue to target total revenue of $700 million in 2028, driven by continued growth and share gains in our neurotoxin franchise in the U.S. and international markets, along with a growing contribution from our Evalise line of fillers that begins in 2025. This equates to a compounded annual growth rate of 29% on a total addressable market that is 70% greater with the addition of a filler product line.
Looking beyond 2023, we continue to target total revenue of $700 million in 2028, driven by continued growth and share gain in our neuro tox and franchise in the U S and international market.
Long with a growing contribution from our other leased line of fillers that begins in 2020.
This equates to a compounded annual growth rate of 29% on a total addressable market that is 70% greater with the addition of a filler product line.
Speaker 3: Now, let me turn the call back to the operator to begin Q&A.
Now, let me turn the call back to the operator to begin Q&A.
Yeah.
Thank you.
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Okay.
And our first question comes from the line of Louise Chen with Cantor Fitzgerald. Please proceed with your question Hi.
Speaker 3: Hi, congratulations on the very strong quarter and execution.
Hi, congratulations on the very strong quarter and execution. Thanks for taking my questions here. So.
Speaker 3: So first question I wanted to ask you is, what gives you confidence that this rate of growth that you're seeing is sustainable? And is there any seasonality for the fourth quarter? And then the second question is next steps and how you're thinking about your goal for the units and how important this is to your product portfolio.
So first question I wanted to ask you is what gives you confidence that this rate of growth that you're seeing is sustainable and is there any seasonality for the fourth quarter.
And then the second question is next steps and how Youre thinking about your ball 40 units.
And how important this is to your product portfolio. Thank you.
Speaker 2: Great. Thanks for the questions. Starting with the fourth quarter is, you know, the fourth quarter is generally the strongest.
Great.
Louise Thanks for the questions starting with the fourth quarter as you know the fourth quarter is generally the strongest quarter of the year in terms of procedural demand and.
And as you see with the guidance range. We provided we expect the fourth quarter to be another all time high in terms of revenue and so we do believe that the growth rates that we've demonstrated year to date will continue to hold it in our guidance range reflects that with over 30% growth.
Speaker 2: year-on-year for the quarter. On the second question around the Chabot 40-unit dose and next steps, I'm going to ask Ru to take that.
Year on year for the quarter on the second question around the Chabot 40 unit dose and next steps I'm going to ask drew to take that.
Speaker 1: So, the main objective, of course, will be to publish that, and as we ask healthcare providers what we should do next, one thing that's coming out loud and clear is, given that there is not a longer duration label out there, people are basically saying do not proceed to a phase 3, there's no need, so the main emphasis will be on publishing the phase 2 studies, and then we'll continue to watch how the doubling the dose market evolves, and then decide what we do next.
So the main objective of course will be to publish that and as we ask our health care providers. What we should do next the one thing that's coming out loud and clear is given that there is not a longer duration label out there.
People are basically saying do not proceed to a phase III, there's no need.
So the main emphasis will be on publishing the phase two studies and then we'll continue to watch how the doubling the dose market evolves and then decide what we do next.
Thank you.
Okay.
Our next question comes from the line of Annabel <unk>.
Sami with Stifel. Please proceed with your question.
Speaker 4: Hi, thanks for taking my questions and congratulations from me on a good quarter. So just...
Hi, Thanks for taking my questions and congratulations from me on a good quarter. So just.
Speaker 4: You know, big picture, I guess for the last few years, it appears, you know, the market has been still relatively under penetrated. And I guess Botox was always.
Big picture I guess for the last few years.
It appears you know the market has been still relatively under penetrated and I guess.
Botox was always a you know.
Speaker 4: the product as the market leader who is setting the growth rate. But obviously, with your growth rate and now with another competitor coming in, it does seem that they are having an impact from new products. So how are these dynamics actually really shifting in the marketplace?
The product test the market leader, who is setting the growth rate, but obviously with your growth rate and now with you know another competitor coming on it does seem that you are they are having an impact from new products. So how do you see how are these dynamics actually really shifting in American place.
Speaker 4: Are you still riding a wave of growing market, or are you actually growing that share now, and what may that share be? So that's my first question.
And.
Are you still riding a wave of growing market.
Or are you actually growing that share now what made that shabby. So that's my first question.
Speaker 2: Great. Annabelle, thanks for the question. Look, the market has remained highly under-penetrated, and I think as you saw in the third quarter, the market leader posted, you know, solid growth, and you saw that we also showed very strong performance as well. We do believe some of the dynamics at play here are first.
Great Annabel. Thanks for the question look the market remains highly under penetrated and I think as you saw in the third quarter. The market leader posted solid growth in and you saw that we also showed very strong performance as well we do believe some of the dynamics at play here first.
Speaker 2: starting with our focus with Chabot as a beauty brand. That is how this younger generation of consumers perceive this procedure, and we position ourselves well there. We've held a number of advisory board meetings over the last quarter, and what we consistently hear back, even from non-users of Chabot that are interested in bringing on our product into their practice, is that they view us as a product for the younger generation.
Starting with our focus with turbo as a beauty brand and that is how this younger generation of consumers perceive this procedure and we positioned ourselves well, they're always held a number of advisory board meetings over the last quarter and what we consistently hear back even from non users in Chicago that are intra.
Didn't bringing on our product into their practice is that they view us as a product for the younger generation and that younger generation is the fastest growing segment of the market and we believe that gives us really sustainable growth from a consumer standpoint into the future. Now in addition to that in the market you see that we're in.
Speaker 2: And that younger generation is the fastest-growing segment of the market. We believe that gives us really sustainable growth from a consumer standpoint into the future. Now, in addition to that, in the market, you see that we're in just over 11,000.
Just over 11000 accounts and the market is over 30000 customers. So we benefit from having continued market penetration opportunities of opening up new customers as well and then of course both of these two ideas do go hand in hand, as we continue to drive more younger consumers into the practice it opens.
Speaker 2: And the market has over 30,000 customers. So we benefit from.
Speaker 2: having continued market penetration opportunities of opening up new customers as well. And then, of course, both of these two ideas do go hand in hand. As we continue to drive more younger consumers into the practice, it opens more doors.
Speaker 2: new accounts for us that have an interest in partnering with us. And our cash pay positioning gives us the ability to really capitalize on that opportunity in a way that positions us as that beauty brand that helps grow.
More new accounts for us they've had an interested in partnering with us as our cash pay positioning gives us the ability to really capitalize on that opportunity in a way that positions us as a beauty brand that helps grow this segment of our practice and so I think it's it's hard to isolate any one variable.
Speaker 2: this segment of a practice. And so I think it's hard to isolate any one variable, but I think collectively the positioning is driving that continued growth. And you're seeing that reflected each quarter where you've seen our growth continue to persist and accelerate. We've been the fastest growing neurotoxin on the market now for two consecutive years. And this year continues to be very strong as well. And we do think that it's all reflected in our positioning and cash pay strategy.
But I think collectively the positioning is driving that continued growth that youre seeing that reflected each quarter, where you've seen our growth continue to persist and accelerate our we've been the fastest growing neurotoxin on the market now for two consecutive years and this year continues to be very strong as well and we do think that it's all reflected.
And our positioning in cash pay strategy.
Speaker 4: And do you dare to venture what a market share could be?
And you did their debenture what are what market share could be.
Speaker 2: As far as market share, last quarter we estimated that we had captured about 11% of the market. We don't expect to clip up a full share point every quarter. Clearly, we gained share in the third quarter, and so I think we're approaching a share point higher and we'll certainly give you an update when we feel confident that we've eclipsed that 11 share point.
At this point as far as market share at last quarter. We estimated that we had captured about 11% of the market. We don't expect to clip up a full share point every quarter clearly we gained share in the third quarter and so I think we're approaching a sharepoint higher and we'll certainly give you an update when we feel confident that we have.
Eclipse study 11 Sharepoint.
Speaker 4: Okay, and then one other question, you know, to what extent do you
Okay and then one other question.
To what extent do you say.
Speaker 4: I mean, obviously, you guys have done a really good job penetrating the accounts. To what extent do you think Evalise is going to boost?
I think I mean, obviously you guys have done a really good job penetrating accounts to what extent you think ethylene is going to boost hum additional account penetration. How many accounts do you think are out there who do not entertain a use of because just because you don't have I guess a portfolio of products to offer them.
Speaker 4: additional account penetration? How many accounts do you think are out there who do not entertain the use of Jouveau just because you don't have, I guess, a portfolio of products to offer them?
Speaker 2: You know, we believe that with Chabot alone, we can continue to expand our market penetration. And I think when you look back over the last three years.
You know, we believe that with Chabot alone. We can continue to expand our market penetration I think when you look back over the last three years, our penetration of new accounts has accelerated over the last 12 months relative to the 12 months. Prior so I, we believe that accounts are more.
Speaker 2: our penetration of new accounts has accelerated over the last 12 months relative to the 12 months prior. So, we believe that accounts are more interested in bringing us on today than we were in a position a year or two years prior. So, Evalise is certainly a catalyst in the sense that
We're interested in bringing you saw them today.
Then we were in a position a year or two years. Prior so I believe that is certainly a catalyst in the sense that it becomes more interesting to partner with us on a broader portfolio, but we do believe that we have excellent runway of existing accounts with just chabot and heavily east gives us an opportunity to opera.
Speaker 2: more interesting to partner with us on a broader portfolio.
Speaker 2: But we do believe that we have excellent runway of existing accounts with just Javeau. And Evalise gives us an opportunity to offer our existing customer base.
Existing customer base, which now exceeds 11000 customers the opportunity to expand their portfolio offering with us which is something that we've consistently heard from our customers is that they like our cash pay positioning they like our investment in advertising that happens through co branded media and to the extent that we could extend that offering to the.
Speaker 2: which now exceeds 11,000 customers, the opportunity to expand their portfolio offering with us, which is something that we've consistently heard from our customers, is that they like our cash pay positioning, they like our investment.
Speaker 2: in advertising that happens through co-branded media and to the extent that we could extend that offering to the filler line that would give them more reasons to want to partner with us across their portfolio of products. So for that reason, we're very optimistic about what Evelisse could bring when we introduce it to the market. Of course, we still have some time until we launch Evelisse in 2025. Until then, we see just a tremendous amount of runway for Givaud and continued market opportunity.
Filler line that would give them more reasons to want to partner with us across their portfolio of products. So for that reason, we're very optimistic about what <unk> could bring when we introduce it to the market of course, we still have some time until we launched evolution 2025 until then we see just a tremendous amount of runway at Bridger Bowl and continued market opportunity.
Good.
Great. Thanks for the color.
Yeah.
Our next.
Question comes from the line of Marc Goodman with UBS Securities. Please proceed with your question.
Speaker 5: David, what is your sense that the market grew this past quarter? Do you think it was high single digits?
David what is your sense that the market grew this past quarter do you think it was high single digits I mean, it just seems.
Speaker 5: Obviously, you know, Botox grew 5%, right? I mean, and then secondly, what are your thoughts about Revance and the dynamics of what they've done and their metrics?
Obviously, you know Botox grew 5% right I mean, and then secondly, what are your thoughts about romance and the dynamics of what they've done.
Their metrics so far thanks.
Okay.
Speaker 2: Hey Mark, we were really pleased to see that the third quarter reflected a really healthy rebound in terms of procedural volume.
Hey, Mark we were really pleased to see that the third quarter reflected oh really healthy rebound in terms of procedural volume is high.
Speaker 2: It's hard to pin the exact number, but we do believe this is a high single-digit growth market coming into this year, and I think overall our views are relatively intact, and Q3 was certainly an acceleration of market growth from the front half of the year, which is positive, and we're assuming that carries through into the fourth quarter. We have no reason to believe that it wouldn't, and just keep in mind that that's been the traditional growth rate for this market over many years. As far as the
Hard to pin the exact number but we.
We do believe this is a high single digit growth market coming into this year and I think overall, our user relatively intact. In Q3 was certainly an acceleration of market growth from the front half of the year, which is positive and we're assuming that carries through into the fourth quarter. We have no reason to believe that that it wouldn't and just keep in mind that that's been.
The traditional growth rate for this market over many years as.
Speaker 2: the market dynamics of competitors. We continue to maintain our focus on our brand positioning and establishing this brand in the market as.
As far as the.
The market dynamics of a competitor we've continued to maintain our focus on our brand positioning and establishing this brand in the market as a unique beauty product, but I think that's differentiated us from the existing competitive set.
Speaker 2: a unique beauty product and I think that differentiated us from the existing competitive set that competes on similar dynamics that other drug companies do. And I think we'll continue to do that. I don't have a view to share on how other companies that are launching are coming along. I think we'll get a view from that when they report their
That competes on similar dynamics that other drug companies do.
We'll continue to do that I don't have a view to share on.
How other companies that are launching are coming along I think we'll get a view from that when they report there.
Yeah.
Thanks.
Our next question comes from the line of Douglas Tsao with H.
D C wainright.
Let's see with your question.
Speaker 6: Hi, good afternoon, and congrats on the progress.
Hi, good afternoon, and congrats on the on the progress.
Speaker 6: Just on the extra strength, I'm just curious, do you have a thought or perspective on the amount of sort of extended duration as a function of just more toxin versus the hyperconcentration? I mean, is the hyperconcentration important or is it just simply just more toxins?
Just on the extra strength I'm, just curious do you have a thought or perspective on the amount of sort of extended duration is a function of just more talk than versus the hyper concentration or.
Is the is the hyper concentration important or is it just simply just more toxins.
Thanks, Doug.
Speaker 1: John Joseph was a doctor. John Joseph was the first one to kind of introduce that concept of increasing the concentration and
John Joseph was a doctor John Joseph the first went to kind of introduce that concept of increasing the concentration and getting.
Speaker 1: getting a little bit duration. So there may be a contributor there. The other thing that's kind of interesting is a few years ago, Botox also demonstrated when they did a double the dose, they actually hyperconcentrated almost to the same level as everyone else.
Getting a little bit duration. So there may be a contributor there. The other thing that's kind of interesting is a few years ago.
Botox also demonstrated when they did a double the dose they actually hyper concentrated almost to the same level as everyone else and when they get that on the 20th arm. They noticed that the even the 20th arm performed a little bit better than the baseline. So the bottom line. What we're seeing is certainly doubling the dose gives you a longer duration, it's not building.
Speaker 1: And when they did that on the 20-unit arm, they noticed that even the 20-unit arm performed a little bit better than the baseline. So the bottom line, what we're seeing is certainly doubling the dose gives you longer duration. It's not linear, though, and that's.
Here, though and that's that comment applies to all the toxins that we see kind of come out and it looks like concentrating.
Speaker 1: that comment applies to all the toxins that we've seen kind of come out and it looks like concentrating may actually contribute a little bit but we've seen that used by others also.
Concentrating may actually contribute a little bit, but we've seen that are used by others also.
Okay.
Speaker 6: Do you, is sort of getting this hyperconcentration something that an injector can accomplish themselves? If they kind of know the right recipe?
Do you is this is sort of getting this hyper concentration something that and this is a an injector can accomplish themselves.
If they kind of know the right recipe.
Speaker 1: That's exactly right. Today, you have a file, there's a certain number of units in there and it's dry. And then you can control the concentration by adding the daily went into the file, how much you put in, and then you can determine the concentration. And if we look at people today who rejected, you take a file of 100 units of few different products.
That's exactly right today, you know you have a file there's a certain number of units in there and it it's dry and then you can control the concentration by adding the deal we went into the vial or how would you put in and then you can determine the concentration and if we look at people today.
Reject it.
You know you take a pile of 100 units of few different products you may concentrated with one milliliter IFF deal, we went to two and a half or up to five so you'll get a spectrum. So even today and common practice, you'll see some people to hyper concentrate a little bit and then in the context of Chabot extra strength for instance.
Speaker 1: you may concentrate it with one milliliter of diluent, two, two and a half, or up to five. So you look at a spectrum. So even today, in common practice, you'll see some people do hyperconcentrate a little bit. And then in the context of Chivo Extra Strength, for instance, that's right, it would be effectively in the publication. You can get a 100-unit file, and then you could reconstitute it as you read about it in the publications, and then create your own four units hyperconcentrated at your office.
Right it would be effectively in the publication you can get a 100 unit vial you could reconstituted as you read about it in the publications and then create your own tour units hyper concentrated in etch or your office.
Okay.
Okay, great. Thank you.
Our next question comes from the line of Nirvana.
BNP Paribas.
Proceed with your question.
Speaker 7: Hi, thanks for conducting and thanks for taking my questions. First one, I follow up on Dexify if you have seen an impact at all from the change in pricing strategies in September 1st during and after the quarter. And then I was also curious about whether you have conducted any promotional activities in the quarter and will you conduct any versus November , but how's the thank you.
Hi, Thanks, good afternoon, and thanks for taking my questions.
First one on sort of like an exercise you have seen.
Any impact at all from the change in pricing strategy seen September 1st.
During and after the quarter and then I was also.
Curious about whether you have conducted and promotional activities in the quarter and will you conduct them.
November Botox day, thank you.
Okay.
Speaker 8: kind of on as relates to
Hi, I'm on.
As it relates to <unk>.
Speaker 2: The newest competitor, Jack, is finding the market. I think you've seen the guidance we gave at the beginning of the year when we were aware of their launch and we got it to a very healthy performance. We since guided up a few times, so they give you the expense for our confidence, for how you're both performing.
You know the newest competitor docs find the market I think you've seen the guidance. We gave at the beginning of the year. When we were aware of their watch and we guided to a very healthy performance. We since gotten it up a few times. So they can give me a sense of our confidence for how's it performing.
Speaker 2: despite the entrance of a new competitor and of course.
Despite the entrance of a new competitor and of course. This is a competitive market, but we've always believed that the bigger market opportunity is around the consumer and targeting this younger generation I think our focus has been consistent and unwavering over the last several years, what you're seeing reflected in the results. It's just that.
Speaker 2: This is a competitive market, but we've always believed that the bigger market opportunity is around the consumer and targeting this younger generation. I think our focus has been consistent and unwavering over the last several years. What you're seeing reflected in the results is just that. It has nothing to do with the competitive environment as much as it does our market positioning and how our customers are responding to that, and voting for Zerbo as an increasing share of their practice. So we feel great about that. As it relates to...
It has nothing to do with the competitive environment as much as it does our market positioning and how our customers are responding to that and voting for chabot as an increasing share of their practice. So we feel great about that as it relates to promotions in the market in the third quarter, there wasn't anything particularly unique about the quarter.
Speaker 2: promotions in the market. In the third quarter, there wasn't anything particularly unique about the quarter.
Speaker 2: that was worth noting in the fourth quarter. That is the peak season, the holidays for the injectable category. So you tend to see promotions that occur from all of the competitors. We're certainly a part of that as well. We have a program that we've been doing for consecutive years now called the 11th day, which is currently in market now. And it's something, as I said, we've done each and every year. So it's been a successful program for us in different ways. But in the end, there's a lot of rumors coming into this market. The 11th day program is designing capture a larger share of that market.
That was worth noting in the fourth quarter that is the peak season, the holidays for the injectable category. So you tend to see our promotions that occur from all of the competitors are were certainly a part of that as well we have a program that we've been doing for a consecutive years.
Now called the 11th day, which is currently in market now and it's something as I said, we've done each and every year. So it's been a successful program for us it evolves in different ways.
But in the end, there's a lot of consumers coming into this market and this 11th day programs designed to capture a larger share of that market segment.
Yeah.
Speaker 7: That's very helpful. Thank you.
That's very helpful. Thank you.
Yeah.
And our next question comes from the line of Mizuho.
Mizuho Securities. Please proceed with your question.
Speaker 9: Hey guys, thanks for taking my questions. I guess the first question is, David, are you kind of saying that the fourth quarter was?
Hey, guys. Thanks for taking my questions I guess the first question is David are you kind of saying that the fourth quarter was perhaps.
Speaker 9: perhaps the growth was driven more by the.
Perhaps the growth was driven more by the.
Hmm.
Speaker 9: The market growth or did you do something that's different, I guess, to.
The market growth or did you do something that's different I guess to to happiness, you know to have a quarter, where I guess seasonally it would be down.
Speaker 9: to have this, you know, to have a quote of where I guess seasonally, let's be
Speaker 9: but it's not. And I guess my second question is, what do you think of the short acting?
But it's not.
And I guess my second question is one what do you think of the the short acting.
Speaker 9: talks in that, um, elegant, I guess, reported some data for the bond TE.
And that how again I guess have reported some data for that bond T. Thanks.
Sure I think.
Speaker 8: We on the third quarter, I think what we said is we saw the overall procedural volume kick.
On the third quarter I.
I think what we said is we saw the overall procedural volume tick positively year on year I think we went into the quarter with that assumption that it would I believe the leading market player who's got it through the same thing as the market rebounds. So that was our assumption and we're pleased that it played out we did not expect our business.
Speaker 8: positively year on year. I didn't even went into the quarter with that assumption that it would. I believe the leading market player has guided to the same thing in the market rebound. So that was our assumption. And so please, that it played out. We did not expect our business.
Speaker 2: grow sequentially. We have anticipated as we have with prior years that you generally see a flight step down.
To grow sequentially, we had anticipated as we have with prior years that you generally see a slight step down in the third quarter and then a step back up in the fourth so we were.
Speaker 2: in the third quarter, and then a step back up in the fourth. So we were pleasantly surprised by the increase in demand for Chabot in the third quarter, and so we attribute that to continued market penetration and share gains, more than we do to the actual procedural volume increase in the quarter that we had already factored for. Moving on to the additional toxins that are coming in the market. I don't have a lot of color to give you on the Bonti. I'm curious to better understand how Abby would.
Pleasantly surprised by the increase in demand for example in the third quarter and we attribute that to continued market penetration and share gains more than we do to the actual procedural volume increase in the quarter that we had already factored for moving on to the the additional toxins that are coming in the market I don't.
A lot of color to give you on that the bond to you I'm curious.
I understand how abbvie would position a shorter acting toxin I think the street don't have visibility to what longer acting could be perhaps what shorter acting might be Indiana are again, I think we're well positioned here we have the only 900 kill adult molecule side from the market leader in the category, where the brand is positioned.
Speaker 2: A shorter acting toxin, I think the streets now have visibility to what longer acting could be. Perhaps what shorter acting might be in the end. Again, I think we're well positioned here. We have the only 900 kilo-dolph molecule aside from the market leader in the category. We have a grant in this position against the younger generation, which is the fastest growing segment in this market, and a cash pay positioning that enables us.
Against the younger generation, which is the fastest growing segment in this market in a cash pay positioning that enables us to help grow the topline for those practices, while being conscientious of the fact that these practices want to continue to drive profitability into the future as they see some of the higher ticket procedures starting to see some slowing so.
Speaker 2: to help grow the top line for those practices, while being conscientious of the fact that these practices want to continue to drive profitability into the future as they see some of the higher ticket procedures start to see some slowing. So I think overall, we're very well positioned here, regardless of the competitive set that may be coming down the road, but I'm certainly curious to hear how that product gets positioned.
I think overall, we're very well positioned here, regardless of the competitive set that maybe coming down the road, but I'm certainly curious to hear how that product gets positioned.
Okay.
Thank you.
Yeah.
Yeah.
Yeah.
Thank you for all your questions at this time I would like to turn the call back over to David Oh.
Alright.
Uh-huh foreclosing comments David.
Speaker 2: Thank you, Operator. In closing, the success of our long-term strategy is evident in the strong results of the third quarter and clearly demonstrate the continued above-market progress the Evalyst team is achieving in driving brand awareness and capturing market share. With record quarterly revenue and all-time highs in key metrics, we continue to build momentum, outpacing both the underlying growth of our market as well as the competition.
Thank you operator in closing the success of our long term strategy evident in the strong results of the third quarter and clearly demonstrates the continued above market progress tablets team is achieving and driving brand awareness and capturing market share with record quarterly revenue, an all time highs and key metrics, we continue to build.
Momentum outpacing both the underlying growth of our markets as well as the competition.
Speaker 2: The final results of our Extra Strength Study this past week and the addition of the Evelief Line of Durable Filler's beginning in 2025, underline, are continuing efforts to build a strong and growing beauty brand.
Final results of our extra strength studied this past week and the addition of the Apple lease line. If there won't pillars, beginning in 2025 underlying our continuing efforts to build a strong and growing beauty brand was that with a healthy injectable market backdrop, and a 17% expansion in our total addressable market directly.
Speaker 2: with a healthy injectable market backdrop and a 70% expansion in our total addressable market, directly attributable to the addition of a dermal filler line. We remain confident in our 700 million revenue targets for 2028, which represents 29% revenue cater.
Tribute able to the addition of the dermal filler line, we remain confident in our 700 million revenue target for 2028, which represents a 29% revenue CAGR.
Speaker 2: We are fully funded to achieve that growth and we have an experienced team in place to execute our growth plan.
We are fully funded to achieve that growth and we have an experienced team in place to execute our growth plans.
Speaker 2: This category is in transition from pharma to beauty, from an older generation of users to the millennials, and our cash pay focus enables us to uniquely partner with practices through first-in-class programs like our co-branded media, which help accelerate practice growth and profitability.
This category is in transition from pharma and beauty from an older generation of users to the millennials and our Caspian focus enables us to uniquely partner with practices do first in class programs like our Cobranded media, which help accelerate practice growth and profitability.
Speaker 2: With our business model focused on the cash pay market, we have built a moat from our competitors. This is a unique and sustainable competitive advantage for Avalos, the benefits of which are evident in our pace of growth and strong financial results.
With our business model focused on the cash pay market. We have built a moat from our competitors. This is a unique and sustainable competitive advantage for Avalon the benefits of which are evident in our pace of growth and strong financial results.
Speaker 8: Note, we will be participating at the Stiefel Conference in New York on November 14th and 15th and the Evercore Healthcare Conference in Miami on November 28th. We look forward to seeing you there. Thank you all for joining us today.
No we will be participating at the Stifel Conference in New York on November 14th and 15th Andy Evercore Healthcare Conference in Miami on November 28, we look forward to seeing you. There. Thank you all for joining us today.
Yeah.
We've reached the end of our call you may now disconnect your lines.
Yeah.
Speaker 10: you
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Speaker 10: the up
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Speaker 10: Bye for now.
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Speaker 10: We'll see you next time.
Okay.
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