Q4 2023 Evolus Inc Earnings Call

Operator: Good afternoon, everyone. And thank you for standing by.

Good afternoon, everyone and thank you for standing by and welcome to <unk> fourth quarter and full year 2023 earnings conference call.

Operator: Welcome to Evolus's fourth quarter and full year 2023 earnings conference. As a reminder, today's conference is being recorded and webcast live. All participants are in a listen-only mode.

Yeah.

As a reminder, today's conference is being recorded and webcast live.

All participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session.

Narek Fagaryan: After the speaker's presentation, there will be a question and answer session. If you need operator assistance, press star zero on your telephone keypad. I would now like to turn the conference over to Narek Fagaryan, Vice President and Head of Global Investor Relations, Corporate Community. Please go ahead. Thank you, operator. And welcome to everyone joining us on today's call to review Evolus' fourth quarter and full year 2023 financial results. Our fourth quarter and full year 2023 press release is now on our website at evolus.com. With me today are David Moatazedi, President and Chief Executive Officer, Rui Avelar, Chief Medical Officer and Head of R&D, and Sandra Beaver, Chief Financial Officer. Before we begin our discussion, I'd like to note that during our call, our prepared remarks 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 question.

Have you need operator assistance press Star zero on your telephone keypad.

Speaker Change: I would now like to turn the conference over to.

<unk>: <unk>, Vice President and head of global Investor Relations and corporate Communications. Please go ahead.

Speaker Change: Thank you operator, and welcome to everyone joining us on today's call to review its fourth quarter and full year 2023 financial results.

Speaker Change: Our fourth quarter and full year 2023 press release is now on our website at <unk> Dot com.

Speaker Change: With me today are David Motors that he's president and Chief Executive Officer.

Speaker Change: Louis Avalanche, Chief Medical Officer, and head of R&D, and Sandra Beaver Chief Financial Officer.

Speaker Change: Before we begin our discussion I'd like to note that during our call. Our prepared remarks 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.

Narek Fagaryan: Four of the key 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. Listeners are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this call, and the company undertakes no obligation to update or review any estimate, projection, or forward-looking statement, except as required by law. These forward-looking statements are based on estimates and assumptions that, although believed to be reasonable, are inherently uncertain and subject to a number of risks and uncertainties. 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. Additionally, today's discussion will include non-GAAP financial measures, which should be considered in addition to, and not as Following the conclusion of today's call, a replay will be available on our website at evolus.com. With that, I'll turn the call over to our CEO, David Moatazedi. Thank you, NARG.

These 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 Change: Listeners are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date of this call and the company undertakes no obligation to update or review any estimate projection or forward looking statements, except as required by law.

Speaker Change: These forward looking statements are based on estimates and assumptions that although believed to be reasonable are inherently uncertain and subject to a number of risks and uncertainties.

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.

Speaker Change: Additionally, today's discussion will include non-GAAP financial measures, which should be considered in addition to and not as a substitute for or in isolation from our GAAP results.

Speaker Change: A reconciliation of GAAP to non-GAAP results may be found in our earnings release, which was furnished with our form 8-K filed today with the SEC and on our Investor Relations website unless dot com.

Speaker Change: Following the conclusion of today's call a replay will be available on our website at <unk> Dot com.

Speaker Change: With that I'll turn the call over to our CEO David Motors Eddie.

Speaker Change: Thank you Darren.

David Moatazedi: We are very pleased to report another record quarter and 2023 full year results while consistently focusing on delivering on our long-term strategy of leading the performance beauty market. Our focus is consistent and purposeful. We are building a beauty brand, primarily targeting millennials, who represent the fastest growing segment of the neurotoxin market and are known to influence adjacent generations. Our differentiated approach has resulted in Javon becoming the fastest growing toxin in the United States aesthetic market for the third consecutive year. During the year, we achieved several major milestones, including strong execution in the U.S. with our neurotoxin, the global expansion of our neurotoxin into Europe, and the addition of our novel dermal filler line. As a result, we increased our total addressable market by 78%. We now view our addressable market to be approximately $6 billion and comprised of three distinct segments, including two segments where we currently have little to no penetration. The first segment is the U.S. neurotoxin market, which is projected to grow at high single-digit to low double-digit growth rates for the upcoming five years.

Speaker Change: We are very pleased to report on another record quarter and 2023 full year results.

Speaker Change: While consistently focusing on delivering on our long term strategy of leading the performance PD market.

Speaker Change: Our focus is consistent and purposeful.

Speaker Change: We are building a BD brand, primarily targeting millennials, who represent the fastest growing segment of the neurotoxin market and are known to influence adjacent generation.

Speaker Change: Our differentiated approach has resulted in chabot, becoming the fastest growing toxin in the United States aesthetic market for the third consecutive year.

Speaker Change: During the year, we achieved several major milestones, including the strong execution in the U S with our neurotoxin.

Speaker Change: Global expansion of our neurotoxin into Europe.

Speaker Change: The addition of our novel dermal filler life.

Speaker Change: As a result, we increased our total addressable market by 78%.

Speaker Change: We now view, our addressable market to be approximately 6 billion and comprised of three distinct segments, including.

Speaker Change: Including two segments, where we currently have little to no penetration.

Speaker Change: The first segment is the U S neurotoxin market of $2 6 billion value.

Speaker Change: Which is projected to grow at high single to low double digit growth rates for the upcoming five years.

David Moatazedi: We are celebrating our fifth year of Gervaud being on the market in May and are proud to have achieved double-digit market share despite new competitive entrants. The second segment we plan to enter in 2025 is the US filler market, which we estimate is a $1.6 billion market growing at a similar rate to toxins with a clear overlap in our current customer base. And the last segment is the international market, which represents $1.8 billion, having doubled with the addition of the dermal filler product line, and we expect to have a presence in countries representing more than 90% of the total addressable market by 2028. In addition to our market expansion, we executed on the R&D front with our Phase II extra-strength Chabot study, which proved 26 weeks of duration, providing our growing consumer base the option of a In the U.S., we added nearly 3,000 new accounts to end the year with more than 12,000 total purchasing accounts, and we exited 2023 with 750,000 consumers in our Evolus Rewards Loyalty Program, which grew by 55% over the prior year. And importantly, consumers receiving repeat treatments represented 60% of the total redemptions in 2023, up from 50% in the prior year.

Speaker Change: We're celebrating our fifth year of Chabot being on the market in May and are proud to have achieved double digit market share despite new competitive entrants.

Speaker Change: The second segment, we plan to enter in 2025 is the U S filler market, which.

Speaker Change: Which we estimate is a $1 6 billion dollar market growing at a similar rates of toxin with a clear overlap in our current customer base.

Speaker Change: And the last segment is the international market, which represents $1 8 billion, having doubled with the addition of the dermal filler product line and.

Speaker Change: And we expect to have a presence in countries representing more than 90% of the total addressable market by 2028.

Speaker Change: In addition to our market expansion, we executed on the R&D front with our phase two extra strength Chabot study, which proved 26 weeks of duration, providing a growing consumer base the option of a longer duration formulation.

Speaker Change: In the U S. We added nearly 3000, new accounts to end the year with more than 12000 total purchasing accounts.

Speaker Change: And we exited 2023 with 750000 consumers in our <unk> rewards loyalty program.

Speaker Change: Which grew by 55% over the prior year.

Speaker Change: And importantly, consumers receiving repeat treatments represented 60% of the total redemptions in 2023 up from 50% in the prior year.

David Moatazedi: These milestones reinforce the global demand for our consumer brands, the high quality of our products, and the competitive moat we built as the first company focused on cash pay aesthetics. Continued gains throughout 2023 position us to provide 2024 revenue guidance of $255 to $265 million, representing a 31% growth at the top end and is unchanged from our announcement in January. This top-line performance, coupled with a strong disciplined focus on operating expenses, is why today we announce our revised outlook on profitability, which now assumes we achieve profitability in the fourth quarter this year and for the full year in 2025. Further, these milestones are indicative of the progress we are making toward reaching our long-range guidance of at least $700 million in revenue by 2028, a compound annual growth rate of 28 percent. Now I'll get into a high-level view of the financials, which are unchanged from the preliminary results reported on January 16.

These milestones reinforced the global demand for our consumer brands.

Speaker Change: High quality of our products and the competitive moat, we built as the first company focused on cash based ethics.

Speaker Change: Continued gains throughout 2023 position us to provide 2020 for revenue guidance of 255 to 265 million, representing a 31% growth at the top end and is unchanged from our announcement in January.

This top line performance, coupled with strong disciplined focus on operating expenses is why today, we announced our revised outlook on profitability, which now assumes we achieve profitability in the fourth quarter this year and for the full year in 2025.

Speaker Change: Further these milestones are indicative of the progress we are making toward reaching our long range guidance.

Speaker Change: At least $700 million in revenue by 2028, a compound annual growth rate of 28%.

Speaker Change: Now I'll get into a high level view of the financials.

Speaker Change: You are unchanged from the preliminary results reported on January 16.

David Moatazedi: In 2023, we achieved a record global revenue of $61 million for the fourth quarter and $202 million for the full year, representing 40% and 36% growth over the prior year, respectively. The full year results surpassed the top end of our guidance of $198 million due to our growing consumer demand and continued market share gains. Our fourth quarter revenue increase of 40% over the prior year quarter and 22% sequentially were both multiples above the estimated industry growth rate. And importantly, our back half growth accelerated meaningfully above the first half, driving continued market share gains with Jubeau and resulted in our market share achieving 12% in the fourth quarter. Looking to our international business, we continue to expand our global footprint with the success of Nuceba and announced our licensing agreement with Simitase in December to exclusively distribute thermal fillers under the brand name Assim in Europe.

Speaker Change: In 2023, we achieved a record global revenue of 61 million for the fourth quarter and $202 million for the full year.

Speaker Change: Representing 40% and 36% growth over the prior year respectively.

Speaker Change: The full year results surpassed the top end of our guidance of $198 million due to our growing consumer demand and continued market share gains.

Speaker Change: Our fourth quarter revenue increase of 40% over the prior year quarter, and 22% sequentially, where both multiples above the estimated industry growth rate.

Speaker Change: And importantly, our back half growth accelerated meaningfully above the first half driving continued market share gains with chabot and resulted in our market share achieving 12% in the fourth quarter.

Speaker Change: Looking to our international business, we continue to expand our global footprint with the success of new fever.

Speaker Change: And announce our licensing agreement with <unk> in December to exclusively distribute dermal fillers under the brand name is team in Europe.

David Moatazedi: This is a significant agreement for Evolus, doubling our total addressable international market to $1.8 billion. Now, I'd like to turn the call over to Rui to discuss the dermal filler line and review the accompanying slides posted on our Investor Relations website. Thank you, David, and good afternoon, everyone.

Speaker Change: This is a significant agreement for Avalere.

Speaker Change: Our total addressable international market to one 8 billion.

Speaker Change: Now I'd like to turn the call over to Ruth to discuss the dermal filler line and review the accompanying slides posted to our Investor Relations website.

Thank you David and good afternoon, everyone.

Rui Avelar: As David mentioned, I'd like to share with you an update on the Evolis steam solar product line. The scheme is the name we use in Europe, and to make it simple, I'll refer to the line as Evolus on the call. Moving to slide two, the Evolus HA filler manufacturing process uses a unique coal technology, which helps preserve the natural HA molecule structure, the building block of HA gels.

Ruth: As David mentioned I'd like to share with you an update on the <unk> solar product line.

Ruth: It seems the namely as in Europe and to make it simple I'll refer to the line of.

Speaker Change: The lease on the call.

Ruth: Going to slide two.

Ruth: Do you have a lease HJ cell manufacturing process uses a unique coal technology, which helps preserve the natural HLA molecule structure the building block of HHS.

Rui Avelar: Then, each one of the HA products undergoes a specific manufacturing process, creating an optimized gel product for the target indication. Last month, the largest aesthetic meeting in the world, MCAS, took place in Paris, and we'd like to share with you some of the clinical data shown there. Bye.

Ruth: And each one of the HVAC products undergoes a specific manufacturing process, creating an optimized gel product for the target indication.

Ruth: Last month, the largest aesthetic meeting in the world and cash took place in Paris, and we'd like to share with you some of the clinical data shown there.

Ruth: Slide three.

Rui Avelar: The data for LIFT from the European Nasolabial Foal Trial were presented. And as a reminder, in the U.S., the two lead products are SMOOTH and LIFT, with an expected PMA filing with the FDA this summer. The study was double-blind, randomized, multicenter, enrolled 45 patients, a split-phase design, and used Ruslan-L as the active control compared to LISP. The average volume injected and the baseline severity of the nasolithical fold scores were similar in both groups. The primary endpoint was non-inferiority, comparing the improvement in the NLF severity scores at four weeks between the two products. The difference was minus 0.16 in favor of Evolus Lift, and the upper bound of the 95% confidence interval was 0.03, successfully passing the primary endpoint. Of note, the confidence intervals cross zero, demonstrating equivalence between the two products.

Ruth: The data for the lift from the European nasal labial full trial was presented.

Ruth: As a reminder, in the U S. The two lead products are smooth and lift with an expected PMA filing with the FDA. This summer.

Ruth: The study was double blind randomized multi center enrolls 45 patients split based design and used wrestling L. As the active control compared to lift.

Ruth: The average volume injected in the baseline severity of the nasal lethal fold scores or similar in both groups.

Ruth: The primary endpoint was non inferiority comparing the improvement in the analyst severity scores at four weeks between the two products.

The difference was minus one six in favor of beliefs lift and the upper bound of the 95% confidence interval was <unk> III successfully passing the primary endpoint of note the confidence intervals cross zero demonstrating equivalence between the two products.

Rui Avelar: The graph on the right illustrates the change in the NLF severity grade from baseline out to nine months. Note that, despite similar volumes injected at the initial treatment, Evolus Lift seems to have a more pronounced effect at all time points, numerically, and reaches statistical superiority at three and six months. Slide 4, The graph on the left illustrates the percent of responders with at least a one-point improvement over time using the NLF scale, as assessed by the investor. For example, at nine months, the patient responder rate was 31.1% for Restylane L and 46.7% for Avelis Lift. The Global Aesthetic Improvement Scale on the right assesses the actual aesthetic outcome after treatment. The investigative scores were high throughout the study, but more importantly, the patient's own assessment of their respective aesthetic outcome was also high, right to the end of the study, with Restylane L at 77.8% and Evolus Lift at 82.2%.

Ruth: The graph on the right illustrates the change in the MLS severity grade from baseline out to nine months note that despite similar volumes injected at the initial treatment heavily slipped seems to have more pronounced effect at all time points numerically and reaches.

Ruth: A typical superiority at three and six months.

Ruth: Slide four.

Ruth: The graph on the left illustrates the percent of responders with at least a one point improvement over time using the MLS scale as assessed by the investigator at.

Ruth: At nine months the patient responder rate was 31, 1% rest of Lynn L and 46, 7% for <unk> lift.

Ruth: The global aesthetic improvement scale on the right assesses the actual aesthetic outcome after treatment.

Ruth: The investigators scores are high throughout the study, but more importantly, the patient's own assessment of their respective aesthetic outcome was also high right to the end of the study with wrestling al at 77, 8% and at least lift at 82, 2%.

Rui Avelar: Slide 5, Smooth is a softer product than Lift and can also be used in the nasolabial folds, providing a second option in the area. In Europe, smoothness is also studied for the treatment of fine lines around the mouth or perioral lines. This was an open-label, 61-patient study using a validated scale that measured the severity-grade improvement of the fine lines over time. Fine lines are difficult to treat, since the product needs to be placed superficially, and only small volumes can be used.

Ruth: Slide five.

Ruth: Smooth, it's a software product and lift and can also be used in nasal labial folds, providing the second auction in the area.

Ruth: In Europe smooth as also study for the treatment of fine lines around the mouth or oral lines.

Ruth: This was an open label 61 patient study using a validated scale and measured the severity rate improvement of the fine lines over time.

Ruth: Fine lines is difficult to treat since the product needs to be placed superficially and only small volumes can be used here. We can see the results all the way up to one year with only half of them, though leader a smooth injected.

Rui Avelar: Here, we can see the results all the way up to one year, with only half a milliliter of smooth injector, twice picked. The SCULPT product is halfway through its clinical trials in the U.S. In Europe, a 60 patient, no control study followed the 3D volumetric correction of patients for a year and a half. A little over one millimeter was injected into each cheek, and then, using a special system, the 3D volume of the cheek was measured.

Slide six.

Ruth: This scope product is halfway through its clinical trials in the U S and Europe, a 60 patient no control study followed the three D volumetric correction of patients for a year and a half.

Ruth: A little over one that was injected into each sheet than using a special system. The <unk> volume uptick Creek was measured.

Rui Avelar: We see here an initial correction, then a stable correction from 6 to 18 months, the end of the study. Slide 7, Blitz, is of particular interest to Evolus, as this is a popular lead indication for millennials. In Europe, 72 patients were enrolled in a single-arm study.

Ruth: We see here an initial correction than a stable correction from six to 18 months at the end of the study.

Ruth: Slide seven.

Lips are particular interest to Atlas as this is a popular lead indication for millennials.

Ruth: In Europe 72 patients were enrolled in a single arm study.

Rui Avelar: And their lip fullness was assessed using a validated score, a scale, over the course of one year. Although not a head-to-head study, to provide some context, we've included the study results from the Evervale Lip Study, a product known as Restylane Kiss here in the U.S. It's interesting to note that the volume of product used in the two studies is different. One mil of Evelisse's lips was used for the initial treatment, and no touch-ups were allowed.

Ruth: And their lips fullness was assessed using a validated score a scale over the course of one year.

Ruth: Although not a head to head study to provide some context. We've included the study results from the ever fail lips.

Product known as Restful and kiss here in the U S.

Ruth: It's interesting to note that the volume of product used in the two studies is different.

Ruth: One mill of heavily slips, which used at the initial treatment and no touch ups were allowed.

Rui Avelar: In the Restylane study, 1mL was also used at the time of the initial treatment, but a touch-up was allowed, increasing the average amount of product received by each patient by 30% for 1.3 mils. Looking at the results over time, despite requiring less product, Evoluse Lips seems to provide more of a correction and last twice as long. Lighting.

Ruth: In the restaurant study one mill was also used at the time of initial treatment but.

Ruth: Touch up was allowed increasing the average amount of product received by each patient by 30% to $1 three mills.

Ruth: Looking at the results over time, despite requiring less product at least slips seems to provide more of a correction and lasts twice as long.

Ruth: Slide eight.

Rui Avelar: The global aesthetic improvement scores were high throughout the duration of the trial for both the investigator and the patient. At the one year mark, 88% of the patients rated themselves as still having an effect. Friday night.

Ruth: The global aesthetic improvement scores were high throughout the duration of the trial for both the investigator and the patients at the one year Mark 88%. The patients rated themselves are still having an effect.

Ruth: Slide nine.

Rui Avelar: In summary, we now have the rights to the Evolus steam filler line throughout Europe and the UK. We expect to receive European approval for Smooth, Lift, Sculpt, and Lips in the second half of this year under the new MDR approval process. Of note, Lips is already approved in Europe under the past MDD process. In the U.S., we remain on track. The first two products, Smooth and Lift, and the last patient just completed the trial this week. We plan to present the top-line results for this U.S. pivotal study this summer and submit the PMA to the FDA with an anticipated approval in 2025. Felt is halfway through its pivotal trial, and we expect approval in 2026, followed by Lips and Eyes in 2027, moving from Evolus.

Ruth: In summary, we now have the rights to the <unk> <unk> filler line throughout Europe, and the U K, we expect to receive European approval for smooth lift sculpt and lifts in the second half of this year under the new MTR approval process of note list is already approved in Europe under the pass.

Ruth: MDT process in the U S. We remain on track.

Ruth: The first two products smooth and lift our last patient just completed the trial this week.

Ruth: We plan to present the top line results for this U S. Pivotal study this summer and submit the PMA to the FDA with an anticipated approval in 2025.

Ruth: So its halfway through its pivotal trial and we expect approval in 2026, followed by lifts and ice in 2027.

Ruth: Moving from Emily's you should vote continues to lead our portfolio with its precision profile and we recently completed our phase III Chabot duration extra strength study demonstrating.

Rui Avelar: Jevot continues to lead our portfolio with its precision profile, and we recently completed our Phase 2 Jevot Duration Extra Strength Study, demonstrating an extended duration of 26 weeks, and expect the results to be published in a peer-reviewed journal this year. With that, I'll turn it back to you.

Ruth: Demonstrating extended duration of 26 weeks.

Ruth: And expect the results to be published in peer reviewed journal this year.

Ruth: With that I'll turn it back to you David Thank.

David Moatazedi: Thank you, Rui. I could not be more proud of what our R&D team has accomplished in a short period of time, particularly the head-to-head study with our list filler compared to Restylane, which demonstrated statistical superiority at multiple time points. As Rui stated, we have now completed the last patient visit for both lift and smooth fillers in the U.S., with plans to follow with the FDA this summer. As a reminder, the Lip product will be positioned as the most versatile and highest volume filler in the product line. In Europe, we're expecting all four filler products to be C-Mark approved by the end of the year. This puts us on track for the global launch of our filler line in 2025. We remain excited about the differentiation of Evoluse and its potential to become one of the leading HA fillers in the US.

David Moatazedi: Thank you really.

David: Could not be more proud of what our R&D team has accomplished in a short period of time, particularly the head to head study with our lift filler compared to Restylane, which demonstrated statistical superiority at multiple time points.

Speaker Change: As already stated we have now completed the last patient visit for both Lyft and smooth fillers in the U S with plans to file with the FDA. This summer.

Speaker Change: As a reminder, the lift product will be positioned as the most versatile and highest volume filler in the product line.

Speaker Change: In Europe, we're expecting all four filler products to be CE, Mark approved by end of year. This puts us on track for the global launch of our filler line in 2025.

Speaker Change: We remain excited about the differentiation of <unk> and its potential to become one of the leading AK fillers in the U S.

David Moatazedi: These products were designed to be the next generation of fillers by the scientists that developed the market-leading Restylane product. 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 filler technology alongside our flagship Chabot in the U.S. and New Siva in Europe. It's also worth noting this was a highly capital-efficient transaction for Evolus. Now I'll turn it over to Sandra, who will cover the financials. Thank you, David.

Speaker Change: These products were designed to be the next generation fillers by the scientists to develop the market leading wrestling products.

Speaker Change: 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 filler technology alongside our flagship <unk> in the U S and receiver in Europe.

Speaker Change: Also worth noting this was a highly capital efficient transaction prevalent now.

Now I'll turn it over to Sandra who will cover the financials. Thank you David.

Sandra Beaver: I would like to begin by congratulating the Evolus team for the outstanding fourth quarter and strong finish to 2020. Before we review the results, I would like to highlight two significant achievements for the fourth quarter. First, excluding share issuance of the European Filler Agreement, we achieved profitability, defined as positive non-GAAP operating income.

Sandra Beaver: I would like to begin by congratulating the Avalere team for the outstanding fourth quarter and strong finish to 2023.

Sandra Beaver: Before we review the results I would like to highlight two significant achievements for the fourth quarter.

Sandra Beaver: First excluding share issuance of the European filler agreement, we achieved profitability defined as positive non-GAAP operating income and second we delivered positive cash from operations.

Sandra Beaver: And second, we delivered positive cash from operations. These are significant milestones towards achieving our updated guidance of profitability in the fourth quarter of 2024 and for the full year 2025. These achievements would not be possible without the efforts of the entire Evolus team, and I would like to sincerely thank them for their hard work and dedication.

Sandra Beaver: These are significant milestones toward achieving our updated guidance.

Sandra Beaver: <unk> ability in the fourth quarter of 2024 and for the full year 2025. These achievements would not be possible without the efforts of the entire <unk> team and I would like to sincerely thank them for their hard work and dedication.

Sandra Beaver: Now turning to our results. Consistent with what was reported in our January announcement, global revenue for the fourth quarter was $61 million, up 40% compared to revenue in the fourth quarter of 2022, with US sales comprising more than 97% of total revenue and driven primarily by higher volumes. For the full year, we reported global revenue of $202.1 million, a 36% increase over full year revenue in 2022 and above the top end of our guidance of $198 million. We continue to experience strong pricing in the US, with our average selling price in 2023 remaining stable compared with the same period last year, while our customer reorder rate remains at approximately 70%. Our reported growth margin for the fourth quarter was 67.2%, and our adjusted growth margin, which excludes the amortization of intangibles, was 68.4%.

Sandra Beaver: Now turning to our results.

Sandra Beaver: <unk> with what was reported in our January announcement.

Sandra Beaver: Global revenue for the fourth quarter was 61 million.

Sandra Beaver: 40% compared to revenue in the fourth quarter of 2022.

Sandra Beaver: U S sales comprising more than 97% of the total revenue and driven primarily by higher volumes.

Sandra Beaver: For the full year, we reported global revenue of $202 1 million or 36% increase over full year revenue in 2022 and above the top end of our guidance of $198 million.

Sandra Beaver: We continue to experience strong pricing in the U S with our average selling price in 2023 remaining stable compared with the same period last year.

Sandra Beaver: Our customer reorder rate remains at approximately 70%.

Sandra Beaver: Our reported gross margin for the fourth quarter was 67, 2% and our adjusted gross margin, which excludes the amortization of intangible was 68, 4%.

Sandra Beaver: For the full year, reported growth margin was 68.1%, and adjusted growth margin was 69.5%. Adjusted growth margin, which excludes the amortization of intangibles, is aligned with company guidance of 68 to 71 percent. Our GAAP operating expenses for the fourth quarter of 2023 were $70 million, compared to $63.5 million in the third quarter of 2023. Non-GAAP operating expenses for the fourth quarter were $45.5 million, compared to $40.3 million in the third quarter.

Sandra Beaver: For the full year reported gross margin was 68, 1% and adjusted gross margin was 69, 5%.

Sandra Beaver: Adjusted gross margin, which excludes the amortization of intangible is aligned with company guidance of 68% to 71%.

Sandra Beaver: Our GAAP operating expenses for the fourth quarter of 2023 were $70 million compared to $63 5 million in the third quarter of 2023.

Sandra Beaver: non-GAAP operating expenses for the fourth quarter were $45 5 million compared with $40 3 million in the third quarter.

Sandra Beaver: Our fourth quarter GAAP and non-GAAP operating expenses included $4.4 million of IPR&D expense related to the share issuance for the European Filler License Agreement. 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 compared to $137.7 million for 2022 and in alignment with the company guidance range of $160 million to $165 million. Non-GAAP operating expenses exclude product cost of sale, stock-based compensation expense, revaluation of the contingent royalty obligation, and depreciation and amortization. Reported selling general and administrative expenses for the fourth quarter were $43 million, compared to $43.3 million recorded in the third quarter.

Sandra Beaver: Our fourth quarter, GAAP and non-GAAP operating expenses included $4 4 million of IP R&D expense related share issuance for the European filler license agreement.

Sandra Beaver: Operating expenses were $251 3 million in 2023 compared to $213 9 million in 2022.

Sandra Beaver: non-GAAP operating expenses were $163 9 million in 2023 compared to $137 7 million for 2022 and in alignment with the company guidance range of $160 million to $165 million non.

Sandra Beaver: non-GAAP operating expenses exclude product cost of sale stock based compensation expense revaluation of the contingent royalty obligation and depreciation and amortization.

Sandra Beaver: Reported selling general and administrative expenses for the fourth quarter were 43 million compared to $43 3 million recorded in the third quarter.

Sandra Beaver: This quarter, SG&A expenses included $4.1 million of non-cash stock-based compensation, compared to $4.3 million in the third quarter. SG&A expenses will be $155 million for the full year 2023, as compared to $141.8 million in 2022. Our non-gas loss from operations in the fourth quarter was $3.7 million, compared to $5.7 million reported in the third quarter.

Sandra Beaver: This quarter SG&A expenses included $4 1 million of noncash stock based compensation compared to $4 3 million in the third quarter.

Sandra Beaver: SG&A expenses were $155 million and our full year 2023, as compared to $141 8 million in 2022.

Sandra Beaver: Our non-GAAP loss from operations in the fourth quarter was $3 7 million compared to $5 7 million reported in the third quarter.

Sandra Beaver: With this 2 million sequential improvement in the fourth quarter, Evolus delivered its lowest non-GAAP operating loss since inception. Excluding share issuance for the European filler license recorded as ICRD expense, the fourth quarter non-GAAP operating income was a positive $0.7 million, representing continued progress to sustain profitability. Non-GAAP loss from operations for the full year excludes stock-based compensation expense, revaluation of the contingent royalty obligation, and depreciation and amortization.

Sandra Beaver: With this $2 million sequential improvement in the fourth quarter <unk> delivered our lowest non-GAAP operating loss since inception.

Sandra Beaver: Excluding share issuance for the European filler license recorded as I guarantee expense.

Sandra Beaver: Fourth quarter non-GAAP operating income was a positive <unk> 7 million representing continued progress to sustain profitability.

Sandra Beaver: non-GAAP loss from operations for the full year excludes stock based compensation expense.

Sandra Beaver: Revaluation of the contingent royalty obligation and depreciation and amortization.

Sandra Beaver: Turning to the balance sheet, we ended the year with $62.8 million in cash compared to $38.7 million at September 30, 2023. In the fourth quarter, we had a record low in quarterly cash use of $0.9 million, excluding the $25 million troughs drawn under the Pharmacon line of credit, and generated cash from operating activities of $0.8 million. Net cash used in the fourth quarter of 2023 continued a sequential quarterly decrease throughout 2023, further demonstrating our continued progress towards cash flow breakeven. Given the capital efficient nature of our filler agreement, we continue to expect our liquidity to fully fund us to profitability and beyond. Before we turn to Q&A, I would like to summarize our 2024 guidance: total revenue for the full year of $255 million to $265 million.

Sandra Beaver: Turning to the balance sheet, we ended the year with $62 8 million in cash compared to $38 7 million at September 32023.

Sandra Beaver: In the fourth quarter, we had a record low quarterly cash use is <unk> 9 million, excluding the 25 million tranche drawn under the Pharmacon line of credit and generated cash from operating activities of <unk> 8 million.

Sandra Beaver: Net cash used in the fourth quarter of 2023 continued its sequential quarterly decrease throughout 2023 further demonstrating.

Sandra Beaver: Constraining, our continued progress towards cash flow breakeven.

Sandra Beaver: Given the capital efficient nature of our filler agreements, we continue to expect our liquidity to fully fund our profitability and beyond.

Speaker Change: Before we turn to Q&A I would like to summarize our 2024 guidance.

Speaker Change: Total revenue for the full year of 255 million to 265 million.

Sandra Beaver: This equates to 26 to 31% growth for the full year, with adjusted gross margins in the range of 68 to 71 percent, and full year 2024 non-GAAP operating expenses between $185 million and $190 million. Profitability, defined as positive non-GAAP operating income in the fourth quarter of 2024 and for the full year 2025. As a point of note, due to one-time filler launch expenses, within 2025 profitability may not be achieved every quarter. Other modeling assumptions for 2024 include quarterly interest expense of $4.4 million and full year weighted average shares outstanding of approximately $57 million.

Speaker Change: Equates to 26% to 31% growth for the full year.

Speaker Change: Adjusted gross margins in the range of 68% to 71%.

Speaker Change: Full year, 2024, non-GAAP operating expenses between $185 million and $190 million.

Speaker Change: Profitability defined as positive non-GAAP operating income in the fourth quarter of 2024 and for the full year 2025.

Speaker Change: As a point of note due to onetime color launch expenses within 2025 profitability may not be achieved every quarter.

Speaker Change: Other modeling assumptions for 2024 include quarterly interest expense of $4 4 million and full year weighted average shares outstanding of approximately $57 million.

Sandra Beaver: Looking beyond 2024, we continue to target total revenue of at least $700 million in 2028, driven by continued growth in share grains in our neurotoxin business in the US and international market, along with a growing contribution from our line of fillers that begins in 2025. This equates to a compounded annual growth rate of 28% on a total addressable market of approximately $6 billion a day, growing to approximately $10 billion by 2028. Now, let me turn the call back to the operator to begin the Q&A. And thank you.

Speaker Change: Looking beyond 2024, we continue to target total revenue of at least $700 million in 2028, driven by continued growth and share gains in our neurotoxin business in the U S and international market.

Speaker Change: Along with a growing contribution from our line of fillers that begins in 2025.

Speaker Change: This equates to a compound annual growth rate of 28% on a total addressable market of approximately $6 billion today.

Speaker Change: Going to approximately $10 billion by 2028 now let me turn the call back to the operator to begin Q&A.

Speaker Change: Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate that your question is in the question queue. You May Press Star two if you would like to remove your question from the queue for participants do think speaker.

Operator: 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 that your question is in the queue. You may press star two if you would like to remove your question.

Annabel Eva Samimy: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start key. One moment, please, while we pull for questions. Our first question comes from Annabel Samimy with Stiefel Police Station. Hi, thanks for taking my questions and congratulations on some interesting data. So it looks like we're getting pretty close to the commercial launch of the Evoluse and Steam product line. So I was wondering if you planned on implementing any bundling-like programs initially when you launch Evoluse or keeping it independent until it gains some traction? You know, I guess I was just looking for any thoughts around your strategy there. And I guess, you know, secondarily, I guess I want to understand the color that drove your accelerated increase in the counts.

Speaker Change: Equipment and may be necessary to pick up your handset before pressing the star keys.

Speaker Change: Please while we poll for questions.

Speaker Change: Our first question comes from Annabel <unk> with Stifel. Please state your question.

Speaker Change: Hi.

Annabel: Thanks for taking my questions and congratulations on some interesting data so it.

Annabel: It looks like we're getting pretty close to commercial launch.

Annabel: Police and steam product line. So I was wondering if you plan on implementing any bundle bundling like programs. Initially when you launch at least or keep it independent until they gain some traction in.

Annabel: I guess I was just looking on.

Annabel: And any thoughts around your strategy there.

Annabel: And I guess are you know.

Annabel: Secondarily, I guess I want to understand the color that drove your accelerated increase in accounts.

David Moatazedi: And do you expect this to be sustainable? And do you have any type of target penetration in terms of the accounts that you want to reach before you focus more on just penetrating more deeply into these accounts versus broadening out? So those are a few of my questions, and I can get back in the queue. I always have more.

And do you expect this to be sustainable and do you have any type of target penetration.

Annabel: In terms of the accounts that you want to reach them.

Speaker Change: Before you focus more on penetrating more deeply into these accounts versus broadening out. So those are a few of my questions and I can get back in the queue.

David Moatazedi: Well, thank you for the questions, Annabel. Let me start with our current business, and I'll address the Evolus question second. As far as the increase in the accounts that you saw in the back half of the year, it accelerated in the front half. If you look even further back into 2022, you see an accelerating trend that started to form before that as well. And I think from our standpoint, it's just an indication of the increasing interest in partnering with Evolus. We don't have any additional incentives for our sales force to expand the number of new accounts that we get each quarter.

Speaker Change: I always have more.

Speaker Change: Well, thank you for the questions Annabel let.

Speaker Change: Let me start with our current business and I'll address the <unk> question second as.

Speaker Change: As far as the.

Speaker Change: The increase in accounts that you saw in the back half of the year it accelerated over the front half as you look even further back.

Speaker Change: Into 2022, we saw an accelerating trend that started to form before that as well and I think.

Speaker Change: From our standpoint, it's just an indication of the increasing interest in partnering with <unk>. We don't have any additional incentives for our sales force to expand the number of new accounts that we're getting each quarter. It's just a function of the demand that we're seeing in the market. So we're really pleased to see that increase now despite all of that.

David Moatazedi: It's just a function of the demand that we're seeing in the market. So we're really pleased to see that increase. Now, despite all that, we've finished 2023 with 12,000 accounts in a market with over 30,000 purchasing customers. So we still have a significant opportunity to continue to go wider, which we anticipate will be an effort over the coming years, as we continue to expand our footprint and build our trust with these practices around the country. Now, as far as going deeper, that is an initiative as well within our existing customer base. We do stratify our customers based on our tiers, which we call Evolux. And the top tier of customers certainly gets more attention from our sales force. They also earn more benefits in the co-branded media program. And those types of activities have us engaging with these practices more.

Speaker Change: We finished 2023.

Speaker Change: With 12000 accounts in a market with over 30000 purchasing customers. So as you know we still have a significant opportunity to continue to go wider which we anticipate will be an effort over the coming years as we continue to expand our footprint and build our trust with these practices around the country and as far as going deeper.

Speaker Change: That is an initiative is well within our existing customer base, we do stratify, our customers based on our tears, which we call <unk> and the top tier of customers certainly get more attention from our sales force sales for earn more benefits in the co branded media program and those types of activities have us engaging.

Speaker Change: With these practices more than what we did observe was that our existing base of customers. We're growing at a healthy clip as a matter of fact growing at a significantly faster clip than the market more broadly so that gives us very good confidence in the fact that our share gains even in established customers still has a lot of opera.

David Moatazedi: And what we did observe was that our existing base of customers was growing at a healthy cliff, and, in fact, growing at a significantly faster rate than the market more broadly. So that gives us very good confidence in the fact that our shared gains, even in established customers, still have a lot of opportunity for growth. In addition to that, I think that kind of dovetails into your question around Evolux, which you asked about bundling.

Speaker Change: Unity for growth.

Speaker Change: In addition to that I think that kind of dovetails into your question around ever leaves switches.

Speaker Change: You asked around bundling I think what we've done thats different with our.

David Moatazedi: I think what we've done that's different with our offering to customers is that we do have pricing for our brand Juveau. And as you purchase more, you get benefits for the price, just like every other company in this space does. But what we've done that's unique is as you purchase more from us, we reinvest back into the practice through co-branded media. We do believe that that reinvestment helps partner with these practices. It helps them to grow and learn.

Speaker Change: Offering customers is that we do have pricing for our brands <unk> and as you purchase more you get benefits for the pricing just like every other company in this space to us, but what we've done. This unique is as you purchase more from US we reinvest back into the practice through co branded media we.

Speaker Change: We do believe that that reinvestment helps.

Speaker Change: Partner with these practices that help them to grow and it also helps drive our own brand awareness and that's the type of partnership that we wanted to forge over time across our portfolio. So as we look ahead to <unk> clearly that is launching in the filler market is a different category. It's when we have a lot of experience and as a management team.

David Moatazedi: And it also helps drive our own brand awareness. And that's the type of partnership that we want to forge over time across our portfolio. So as we look ahead to Evolux, clearly, that is launching in the filler market in a different category.

David Moatazedi: It's one we have a lot of experience in as a management team, and we recognize that the needs are different in that market. However, the common element is the same.

Speaker Change: And we recognize that the needs are different in that market. However, the common element.

David Moatazedi: Is there an interest in these practices to grow and to build their brand in partnership with us? And so we anticipate the co-branded media will be an umbrella that carries across our franchise going forward. But as far as what we might do with pricing, I think it's probably too early to get into that level. Okay, great. Thank you. And if you could just share, do you have any?

Speaker Change: Is the interest in these practices to grow and to build their brand in partnership with us and so we anticipate the co branded media will be an umbrella that carries across our franchise going forward.

Speaker Change: But as far as what we might do with pricing I think it's probably too early to get into that level of detail.

Speaker Change: Okay, great. Thank you and if you could just share do you have.

David Moatazedi: Essence, has market share within the Evolux practices increased given that you've got much more significant growth in the, um, those practices than you do in the broader market? Yeah, it's hard to quantify exactly what our share is across practices. But we do know that, as we commented in my opening remarks, that overall, in the fourth quarter, we believe we achieved a 12% unit share.

Speaker Change: Our sense has a market share within the ethics practices increase given that you've got much more significant growth in those.

Speaker Change: Those practices so that you do.

Speaker Change: Oh for the broader market.

Speaker Change: Yes, it's hard to quantify.

Speaker Change: Actually what our shares across practices, we do know that as we commented in my opening remarks that overall in the fourth quarter. We believe we achieved a 12% unit share.

David Moatazedi: That's the highest unit share we've achieved since launch. We achieved that partially driven by our account penetration into the 12,000 customers, and also due to going deeper with an existing customer. So, it's hard to say exactly where we sit overall within the existing 12,000 customers that are purchasing Jiveau. The last update we gave was that we thought we were around 20 to 25% market share. We expect to be above that. I just don't have an updated number to give you at this time.

Speaker Change: It's the highest unit share we've achieved since launch.

Speaker Change: We achieved that partially driven by our account penetration to the 12000 customers and also due to going deeper within existing customers. So it's hard to say exactly where we sit overall within the existing.

Speaker Change: 12000 customers that are purchasing gibeau. The last update we gave was we thought we were around 20% to 25% market share we expect to be above that I. Just don't have an updated number to give you at this time.

David Moatazedi: Okay, great. Thank you. Our next question comes from Marc Goodman with Lyrinc Partners. Hey, thanks for taking my question. This is Rudy on the line for Marc.

Okay, great. Thank you.

Speaker Change: Our next question comes from Marc Goodman with <unk> Leerink partners. Please state your question.

Marc Harold Goodman: Hey, Thanks for taking my question this really underlying for Mark. So regarding 2024 sales guidance can you talk about.

Marc Harold Goodman: So regarding 2024 sales guidance, can you talk about the growth driver in your assumption, like provide color on what percentage contribution from values versus pricing, and maybe remind us of the discount relative to Botox. Thanks. Yeah, of course, thank you so much for the question. As relates to our 2024 sales guidance, as we delivered in 2023, significant growth at 36%, right? We see a great opportunity to continue to leverage that back half accelerated growth into 2024 with the guidance that we gave at $255 and $265 million. As we noticed, the majority of our revenue performance came from volumes. However, we continue to see stability in price and the opportunity to potentially raise prices and continue to close the gap between Jubeau and Botox.

The growth driver EUR assumption like provide color on what percentage contribution from where it was versus pricing and maybe remind us that discount relative to botox.

Marc Harold Goodman: Yeah. Thank you so much for the question.

Speaker Change: As it relates to our 2024 guidance as we delivered in 2023 significant growth of 36% rate, we see a great opportunity to continue to leverage that back half accelerated growth into 2024 with the guidance that we gave at $275 million to $265 million as we noted the majority of our revenue.

Speaker Change: Performance came from volume However, we continue to see stability in price and the opportunity to potentially raise price and continue to close the gap between <unk> and botox the.

Marc Harold Goodman: The majority of our growth in 2024 continues to be driven by volume. As David mentioned, we're significantly under penetrated in the market, whether it's within the accounts we currently sell in, or by adding new accounts available to us across the US. But we also see an opportunity to continue to press price where it's appropriate. Thanks. Very helpful. Our next question comes from Louise Chen with Canter Fitzgerald. Unknown Speaker 0 3 01 0 03 19 05 06 04 07 03 04 06 07 03 04 04 05 06 07 04 06 07 05 06 06 09 04 06, Hi, congrats on all the progress and thank you for taking my questions here.

Speaker Change: <unk> of our growth in 2024 continues to be driven by volume as David mentioned, we're significantly underpenetrated in the market whether it's within the accounts, we currently sell in or by adding new accounts available to us across the U S.

Speaker Change: But we also see an opportunity to continue to press price, where it's appropriate.

Speaker Change: Thanks very helpful.

Speaker Change: Our next question comes from Louise Chen with Cantor Fitzgerald. Please state your question.

Louise Alesandra Chen: Hi, Congrats on all the progress and thank you for taking my questions here. So I wanted to ask you is there any way you can quantify or at least qualitatively tell us how profitable you expect to be in the fourth quarter and then how are you thinking about a S. P. In 2024 for chip out and you know what are you factoring into your guidance. There and then last thing is just when we model out.

Sandra Beaver: So I wanted to ask you, is there any way you can quantify or at least qualitatively tell us how profitable you expect to be in the fourth quarter? And then how are you thinking about AFP in 2024 for Jiveau? And, you know, what are you factoring into your guidance there? And then last thing, when we model out 2024, how should we think about seasonality for Jiveau? Thank you. Okay, great. Louise, let me take the first part around.

Louise Alesandra Chen: 'twenty 'twenty four or how should we think about seasonality for you Bob.

Speaker Change: Thank you.

Speaker Change: Okay, Great Louise let me take the first part around.

David Moatazedi: How do you think about the pricing for 2024? I think, as Sandra just commented, our pricing has been very strong since launch. Our ASP has only gone up for this product.

Speaker Change: How you think about.

Bob: Pricing for 2024, I think is Sandra just commented.

Bob: Our pricing has been very strong since launch our ASP has only gone up for this product and I think as we continue to shift our focus on the value, we're bringing customers. We continue to reassess how we can continue to narrow the gap versus the market leader and we've seen more and more price competition and we've continued to build.

David Moatazedi: And I think as we continue to shift our focus on the value we're bringing customers, we continue to reassess how we can continue to narrow the gap versus the market leader. And we've seen more and more price competition, and we've continued to build our pricing favorably in order to drive volume. And we'll continue to do the same. As you think about this year, it's predominantly driven by volume and not price. I think that's the case for the entire category, frankly.

Bob: Our pricing favorably in order to drive the volume and we'll continue to do the same as you think about this year, it's predominantly driven by volume and not price I think that's the case for the entire category frankly, but.

David Moatazedi: But you should expect that prices will be steady and higher for us over time. Louise, as it relates to your other question on profitability, I think, as you can imagine, we outperformed our own expectations here in the fourth quarter of 2023, delivering well above the top end of our guidance, and including the share issuance related to our European filler license, we have, frankly, achieved profitability here in Q3, 2024, sorry, 2023, excuse me. So, as you can imagine, that creates a great foundation for us to build off of and gave us the confidence we needed to deliver the revision to our guidance for 2024, where we are confident we'll achieve that profitability again in Q4. As it relates to how much profitability, I think we'll continue to assess that throughout the year, but we have great momentum going into 2024, and we continue to have disciplined operating expense management, so that enabled us to give ourselves that revised guidance, whatever it is for the season now.

I would expect that prices are steady and up for us overtime.

Speaker Change: Let me just as it relates to your other question.

Speaker Change: Profitability I think as you can imagine we outperformed our own expectations here in the fourth quarter of 2023, delivering well above the top end of our guidance and excluding the share issuance related to our European filler license. We are frankly achieve profitability here in Q3, 2024 psychiatry excuse me. So as you can imagine that creates a great found.

Speaker Change: Patients, perhaps to build off of and gave us the confidence we needed to deliver the revision to our guidance for 2024, we are confident we'll achieve that profitability again in Q4 of 2024.

Speaker Change: Relates to how much profitability I think we will continue to assess that throughout the year, but we have great momentum going into 2024, and we continue to have disciplined operating expense management, so that enabled us to give us that revised guidance.

Anything on the seasonality.

David Moatazedi: I think seasonality has been fairly predictable in this market if you back out the one COVID period that we were in, and we expect to see similar trends where the fourth quarter will be the strongest quarter of the year, followed by the second, and then generally, the third quarter is the weakest season of the calendar year, and we're expecting it to mirror that this year.

Speaker Change: I think seasonality has been fairly predictable in this market if you back out.

Speaker Change: The one COVID-19 period that we're in and you should we expect to see similar trends for the fourth quarter will be the strongest quarter of the year followed by the second.

Speaker Change: And then generally the third quarter is the weakest season of the calendar year, and we're expecting it to mirror that this year.

David Moatazedi: And our next question comes from Navann Thai of BNP Paribas. Please state your question. Hi. Hi, everyone.

Speaker Change: Thank you.

Speaker Change: Thank you.

Nevada: And our next question comes from Nevada tie with BNP Paribas. Please state your question.

Hi.

Navann Thai: Thanks for taking my question. I was just curious if your guidance includes some upcoming competition in the U.S. from Rochelle and Galderon. Thank you. Yes, as you know, earlier this month, QGEL received FDA approval for their neurotoxin latebo.

Hi, everyone. Thanks for taking my questions.

Nevada: I was just curious if your guidance increase.

Upcoming competition from in the U S from <unk> and Gander Mountain.

Nevada: Thank you.

Speaker Change: Yes, as you know.

Speaker Change: Earlier this month <unk> received.

Speaker Change: The approval for their neurotoxin with Tivo.

David Moatazedi: We were aware of their PDUFA date, and we had assumed in our guidance when we provided that guidance in January that they would be entering the market in 2024. So nothing changes as far as that guidance is concerned. As you know, now we've had a new entrant in late 2022. And, of course, you saw our performance last year, where growth accelerated in the back half of the year, despite a new entrant coming into the market. And of course, this year, we'll likely see the entrance of QGEL with Latebo joining.

Speaker Change: We were aware of their <unk> date, we had assumed in our guidance when you provided that in January.

Speaker Change: They would be entering the market in 2024, so nothing changes as far as that guidance is as you know now.

Speaker Change: We had a new entrant in late 2022.

Speaker Change: You saw our performance last year.

Speaker Change: <unk> growth accelerated in the back half of the year, despite a new entrant coming into the market and of course. This year, we will we'll likely see the entrants of few gel with with Tivo entering in as you May know we are launching in Europe around the same time as you gel ability both product and we've continued to perform very well in those markets.

David Moatazedi: And as you may know, we are launching in Europe around the same time as QGEL, the latebo product, and we've continued to perform very well in those markets. Look, there's plenty of room for new competitors. This is a high-growth market. I think what's unique about our value proposition in the market, and we'll continue to build on that. And we believe that will drive meaningful growth in the future. Thanks, that's helpful.

Speaker Change: Look there's plenty of room for new competitors. This is a high growth market I think what's unique is our value proposition in the market and we will continue to build on that and we believe that will drive meaningful growth in the future.

Speaker Change: Thanks, that's helpful. Thank you.

David Moatazedi: Thank you. And our next question is Serge Belanger with Needham and Company, please. Good afternoon, and thanks for taking my questions. First one, I guess regarding the number of new account additions in the fourth quarter, a pretty big number, larger than, I think, the average. , Dr. David Moatazedi, Rui Avelar, David Erickson, Louise Chen, Serge Belanger, Douglas Tsao, Uy Ear, Gregory Fraser, Sandra Beaver, Navann Dietschi, Mikaela Franceschina, Ned Mitchell, volumes, and things like that.

Speaker Change: And our next question comes from Serge Belanger with Needham and company. Please state your question.

Serge D. Belanger: Hi, good afternoon, thanks for taking my questions.

Serge D. Belanger: First one I guess regarding the number of new account additions in the fourth quarter.

Serge D. Belanger: The big number to.

Serge D. Belanger: It was larger than I think the average.

Serge D. Belanger: Okay.

Serge D. Belanger: First part of 2023.

Serge D. Belanger: Is that sustainable going forward.

Serge D. Belanger: And then secondly.

Serge D. Belanger: We're nine months nine weeks or so into the first quarter.

Serge D. Belanger: You give us any color on what the market environment is like in terms of volumes and things like that thanks.

Serge D. Belanger: Sure. Good question about the account ads. We went into the year last year assuming we'd be adding roughly 500 to 600 new accounts a quarter. So we were equally, frankly, as impressed by the number that the field brought in of new customers. We don't have a set number that we require in terms of new accounts per quarter.

Speaker Change: Sure. Good question about the account as we went into the year last year, assuming we'd be adding roughly five to 600, new accounts a quarter. So we were equally frankly is as <unk>.

Speaker Change: Impressed by the number that <unk> brought in new customers.

Speaker Change: We don't have a set number that we require in terms of new accounts per quarter. So I can't commit to the number of account adds I think it's dependent on the territory and the opportunity in front of them spending their time going deeper with customers or just the interest level thats coming in from new accounts as you may recall when we.

David Moatazedi: So I can't commit to the number of account ads. I think it's dependent on the territory and the opportunity in front of them of spending the time going deeper with customers or just the interest level that's coming in from new accounts. As you may recall, when we acquire a new account, we educate them on not just the product, but we send in training as well so they can understand the unique precision profile of our brand. We also review our benefits through co-branded media and Evolux. And it generally takes about 12 months for a new account to become meaningfully profitable.

Speaker Change: Acquire new accounts, we educate them on not just the product, but we send in.

Speaker Change: Training as well so they can understand the unique precision profile of our brand. We also review our benefits through co branded media and <unk> and it generally takes about 12 months for a new account to become meaningfully productive and so that cadence is important to us because we want to ensure that each customer has the <unk>.

David Moatazedi: And so that cadence is important to us because we want to ensure that each customer has the Evolux experience. And so we'll continue to add new accounts as we receive them, but we're limited by just our ability to run them through the proper steps that we believe lead to a productive customer. So that's equally as important to us, of course, as it is to look at the volume of accounts that come in. And as we've now entered the new year, it's been what we expected.

And so we will continue to add new accounts as we receive them, but we're limited by just our ability to run them through the proper steps that we believe lead to a productive customers. So that's equally as important to us of course is as it is to look at the volume of accounts that come in.

Speaker Change: As we've now entered the new year, it's been what we expected we saw very healthy trends in the back half of last year. I think you observed not just in our revenue acceleration, but you've observed broader market that reported that they had reported strong trends from consumer demand, we're seeing similar trends character.

David Moatazedi: We saw very healthy trends in the back half of last year. I think you observed not just in our revenue acceleration, but you observed broader markets that reported that they had reported strong trends from consumer demand. We're seeing similar trends carried through into the call for this year. So it's a good year off to a good start, as we expected, nothing unusual.

Into the call it the first quarter of this year so.

Speaker Change: It's a good year after a good start as we expected.

Speaker Change: Unusual.

Sandra Beaver: Maybe one last one regarding your targets for $700 million in sales by 2028. If you've previously talked about the expected breakdown between Juvo and Evolus in the U.S., but maybe just talk about what we should expect for ex-U.S. contributions to that $700 million revenue target. Serge, I'd be happy to take that.

Speaker Change: Maybe one last one regarding your targets for $700 million in sales by 2028.

Speaker Change: If you've previously talked about the expected breakdown between Juglone Evelyn.

Speaker Change: In the U S, but maybe just talk about what we should expect for ex U S contribution so that $700 million.

Speaker Change: Revenue target.

Speaker Change: Firstly I would be happy to take that so if you look at the $700 million, we expect 10% to 15% of that revenue to come from or you ask for call. It in the range of $100 million well where are we then have the remainder coming from both the filler franchise and the Thompson franchise in the U S. As I noted on the call.

Sandra Beaver: So if we look at the $700 million, we expect 10 to 15% of that revenue to come from OUS, so call it in the range of $100 million, where we then have the remainder coming from both the filler franchise and the toxin franchise in the U. S. As I noted on the call, it's a $10 billion market that we've got coverage in by the time you get out to 2028. And as David mentioned, about $1.8 billion of that market is the OUS market. So that still leaves us lots of opportunity to over perform that number.

Speaker Change: It's a $10 billion market that we've got coverage and by the time you get out to 2028 and as David mentioned about $1 8 billion of that market is the <unk> market. So that still leaves us lots of opportunity to over perform that number I think.

Uy Sieng Ear: I think we've been pretty clear that that's the low end of our long-range guidance, and I think that comes from our confidence in the performance of our product as well as the opportunity and the size of the opportunity in these markets across geographies and across the product line. Thank you. Thank you, and our next question comes from Uy Ear with Mizuho Securities. Please sit down. Hey guys, thanks for taking my question and congratulations on hitting non-gap probability.

Speaker Change: Pretty clear that that's the low end of our long range guidance and I think that comes from our confidence in the performance of our product as well as the opportunity and the size of the opportunity in these markets across geographies and across the product lines.

Speaker Change: Thank you.

Okay.

Thank you and our next question comes from Louise ear with Mizuho Mizuho Securities. Please state your question.

Louise Alesandra Chen: Hey, guys. Thanks for taking my question and congrats on hitting non-GAAP profitability.

Rui Avelar: So, on the Restylane L study, I was wondering if you guys could sort of talk a bit about maybe the differences or similarities in safety with respect either to bruising and swellings or any other types of things that might have been noticed. And I guess the second question is, and could you also kind of elaborate on, you know, the market with millennials in particular for Lyft? I'm just curious to see how that's sort of changing, you know, is it sort of a similar kind of I guess, um, did they see sort of the similar kind of benefits that he received from Jevo? Because, um, you know, they're not, um, I guess historically, these products have sort of been used in older patients. I'll take your first question, Uy.

Louise Alesandra Chen: So.

Louise Alesandra Chen: On the the wrestling Umm Al study I was wondering if you guys can sort of talk a bit about maybe the differences or similarities and safety with respect either to bruising and.

Louise Alesandra Chen: Swelling and or any other types of things that might have been notable.

Louise Alesandra Chen: And I guess the second question is and could you also kind of elaborate on.

Louise Alesandra Chen: You know the market with millennials in particular for.

Louise Alesandra Chen: For Lyft.

Louise Alesandra Chen: Just curious to see how that's sort of changing.

Louise Alesandra Chen: No.

Louise Alesandra Chen: Yes.

Louise Alesandra Chen: Is it sort of a similar kind of.

Louise Alesandra Chen: Good.

Louise Alesandra Chen: I guess do they see sort of the similar kind of benefits that you receive from Jerusalem cause they're.

Louise Alesandra Chen: They're not.

I guess historically these products have sort of been using older patients.

Louise Alesandra Chen: Patients. Thanks.

Speaker Change: I'll take your first question the in terms of the rest of the AE profile.

Rui Avelar: In terms of the rest of the AE profile, when you look at them, they're pretty similar. If anything, if I recall correctly, the AE trends, we're actually favoring Avelis versus the Restylane product. In terms of the swelling, again, as an AE, it's pretty similar, again, seem to favor Avelis.

Speaker Change: When you're looking at they are pretty similar if anything if I recall correctly.

Speaker Change: If you look at the AE trends will actually favorite I beliefs versus the rest of clean product.

Speaker Change: The swelling again SMA.

Pretty similar again seem to favor and beliefs in terms of swelling post procedure. It's just slightly different one of the pieces of feedback that we've gotten very consistently is one of the reasons why they seem to like injectors seem they have lease product is what you correct. Two is what you.

Rui Avelar: In terms of swelling post-procedure, which is slightly different, one of the pieces of feedback that we've gotten very consistently is one of the reasons why they seem to like injectors, like to think that the Avelis product is what you correct is what you get. In other words, you don't have to inject product and then take into consideration, is this product going to swell over time, or do I have to under-correct, or do I have to over-correct? The comment that we're getting consistently from the investigators is... Just correct to your optimal correction, and you're done. You don't have to take any additional spelling into consideration.

Speaker Change: In other words, you don't have to inject product and then take into consideration. This protocol to swell over time for us to have the undercurrent to have to Ofer correct.

Speaker Change: The comment that we're getting consistently from the investigators is.

Speaker Change: Just correct to your optimal correction and you're done you don't have to take any additional sprung into consideration.

David Moatazedi: And then, as far as the demographics that are getting injected with fillers, I think you're right. First, on average, fillers overall skew a bit older than neurotoxins. Now, that being said, as you go a layer deeper, consumers that are younger are coming in for filler treatment on the lips, and so the lips seem to be the gateway for the younger generation, and then it works its way into other areas, whereas as you move to the cheeks, it's generally an older generation that's getting treated further up their cheekbones.

And then as far as the demographics that are getting injected with fillers I think youre right first on on average fillers overall skew a bit older than neurotoxins.

Speaker Change: Now that being said.

Speaker Change: As you go a layer deeper.

Speaker Change: Consumers that are younger coming in for filler treatment from the lips, and so lift seems to be the gateway for the younger generation and then it works its way into other areas, whereas as you move to the cheeks. It's generally an older generation that's getting treated further up in their cheekbones.

David Moatazedi: And so the answer is it varies, which is why we have a full portfolio of products, just as you see the market leaders do as well, so that you're treating different patient types. And I think that gives us a unique opportunity. In the end, the way we look at the filler business is a little different, which is first, we look at it by product, meaning we expect this lip product to be the most versatile. And just like Givaud has indicated in the glabellar lines, it is often used outside of our indication and outside the glabellar area to areas that are not approved, like the forehead and the crow's feet, and so are all of the

Speaker Change: And so the answer is it varies which is why we have a full portfolio of products just as you see the market leaders do as well so that you're treating different patient types and that gives us a unique opportunity in the end the way we look at the filler business a little different which is first.

Speaker Change: We look at it by product, meaning we expect this lift products would be the most versatile and just like you've always indicated Nikola behler lines. It is often used outside of our indication and outside the cabela area to areas that are not approved like beforehand, and the crow's feet and so are all other toxins.

David Moatazedi: The same applies with some of these fillers, like the Lift product, which is versatile, and Restylane, which is also considered a versatile filler, where a patient may get injected in areas like the lips and also the nasolabial folds and other areas. So I think there's a lot more we need to learn about how we'll position each of the brands and what that means for our consumer segmentation. But in the end, the overlap between the customers actually injecting these fillers is nearly one-to-one with our toxin users, and so it gives us an opportunity to learn with our existing customers how best to do that. Do you foresee perhaps maybe going deeper or wider, I guess, into sort of the outside of the spas? Yeah, so in today's business, to your point, of the 12,000 customers, we said that our largest customer set is the medical spa channel, followed by germs and plastics. And we believe that overall, for the category of neurotoxins, medical spas are the single largest group that does these.

Speaker Change: The same applies with some of these fillers like the lift product, which is versatile including the wrestling product, which is also considered a versatile filler where a patient may get injected in areas like the lifts and also the new deliberate folds in other areas. So I think there's a lot more we need to learn about how we will position each of the brands and what that means for our consumer segmentation.

Speaker Change: But in the end the overlap between the customers actually injecting. These pillars is nearly one to one with our toxin users and so it gives us an opportunity to learn with our existing customers how best to do that.

Speaker Change: Okay.

Speaker Change: Do you foresee, perhaps maybe going deeper or wider I guess into sort of the outside of the spas I guess.

Speaker Change: Okay.

Speaker Change: Yes, so our business today to your point of the 12000 customers we have.

<unk> said that our largest customer set as a medical spa channel.

Speaker Change: Followed by Germs and plastics.

Speaker Change: We believe that overall for the category.

Speaker Change: Oh toxins medical spas are the single largest group.

David Moatazedi: And we also know that germs and plastics tend to use, on average, a little bit more filler than medical spas do per treatment. So I do believe that this will accelerate our expansion into new customers. We have heard from customers that are thinking about working with us that the addition of the filler is a catalyst for them, and we do believe that that's going to be another growth driver that enables you to be more successful over time. But it starts with establishing a new filler line and the value of that filler product. To the extent that those practices see a lot of the benefits that we're seeing here in the clinical data relative to other products they may use, we do believe that that will translate over to benefits in their utilization of Gervaux as well. Thank you. Thank you. And our next question comes from Douglas Tsao with H.C. Wainwright Police.

Speaker Change: We also know terms in plastics.

Speaker Change: And to use on average a little bit more filler.

Speaker Change: Medical spas do per treatment. So I do believe that this will accelerate our expansion.

Speaker Change: Engine, new customers, we have heard from customers that are thinking about working with US that the addition of the filler is a catalyst for them.

And we do believe that that's going to be another growth driver that enables <unk> to be more successful over time, but it starts with establishing a new filler line in the value of that filler products to the extent that those practices see a lot of the benefits that we're seeing here in the clinical data relative to other products. They may use we do believe that that will.

Speaker Change: Translate over to benefits on their utilization of <unk> as well.

Thank you.

Speaker Change: Thank you and our next question comes from Douglas Tsao with H C. Wainwright. Please state your question.

Douglas Dylan Tsao: Transcribed by https://otter.ai Hi, good afternoon, and thanks for taking the questions and congratulations on the progress. So, you know, David, maybe following up on that last question, just when you think about adding the Eppley fillers, do you think that this There is more opportunity for you to add new accounts, or maybe talk about the opportunity to just go deeper into accounts who might be using QVO but perhaps are still sort of continuing to use some of the competitor products to get access to discounts on their fillers. Thank you. Yeah, look, I recognize the simple answer is to say one or the other.

Douglas Dylan Tsao: Hi, good afternoon, and thanks for taking the questions and congrats on the progress.

Douglas Dylan Tsao: David maybe following up on that last question, just when you think about adding.

Douglas Dylan Tsao: The Applebees still or do you think that this theres more opportunity for you to add new accounts or maybe talk about the opportunity to just go deeper into accounts.

Douglas Dylan Tsao: B using <unk>, but perhaps are still sort of.

Douglas Dylan Tsao: Continuing to use some of the competitive products do you get access to discounts on their fillers. Thank you.

Speaker Change: Yeah look I recognize the simple answer is to say one or the other but the reality of it is we have.

David Moatazedi: But the reality of it is that we have sales reps deployed across the US that cover a range of customers from our existing users that are very loyal, and I hear firsthand that they would love to get Evolus into their hands and start using the product. So we expect that our existing customers will want to have access, and they will want to trial the product. On the other hand, as I'm out in the field, I'm talking to customers that are in some stage of considering partnering with us on Juveau. And Evolus, and the technology itself, and now the data, are compelling reasons to start doing that. So I do believe in the end it's going to be a mix.

Sales reps deployed across the U S that cover a range of customers from our existing users that are very loyal where I hear firsthand that they would love to get a lease into their hands and start using the product. So we expect that our existing customers will want to have access and they will want to trial the product on the other hand as him.

Speaker Change: Outlet field I'm talking to customers that are in some stage of considering partnering with us on <unk> and <unk> and the technology itself.

Speaker Change: And now the data are compelling reasons to start doing that so I do believe in the end, it's going to be a mix its hard with product launches to determine which is going to be a bigger contributor but look we've been on the market for five years, We command, 12% unit share as of the end of this year, it's not an insignificant.

David Moatazedi: It's hard with product launches to determine which is going to be a bigger contributor. But look, we've been on the market for five years. We command 12% of the unit share as of the end of this year, not an insignificant share.

David Moatazedi: And those customers partner with us because they believe that we're a quality company that reflects their value system, and we invest in their growth. And I do believe that we're philosophically aligned with these practices in a way that they would be aligned with us as we introduce a new product to the extent that we can continue to demonstrate that we have a high quality differentiated filler that gives their practice unique advantages. And so, with that, I do think our existing practices are excited about this. There's a lot we have to do between now and commercialization. It's exciting, I can tell you we have a team dedicated 100% to fillers inside this company working on our commercialization strategy. It will be different. It won't be like the other products.

Speaker Change: Sure and those customers partnered with us because they believe that were quality company that reflects their value system and we invest in their growth and I do believe that we're philosophically aligned with these practices in a way that.

Speaker Change: They would be aligned with us as we introduce a new product to the extent as where we can continue to do demonstrate that we have a high quality differentiated filler that gives their practice unique advantages.

Speaker Change: With that I do think our existing practices or are excited about this there's a lot we have to do between now and commercialization. It's exciting I can tell you we have a team dedicated 100% of fillers inside this company working through our commercialization strategy it will be different it wont be like the other products.

David Moatazedi: We believe this product has a lot of potential, and so we're looking forward to this next phase of the company. That being said, we don't expect the fillers to launch this year.

We believe this product has a lot of potential.

Speaker Change: So we're looking forward to this next phase of the company that being said, we don't expect the fillers to launch this year and so our focus is entirely on <unk> in the market with practices.

David Moatazedi: And so our focus is entirely on JVO in the market with practices. And we believe that the growth that we've demonstrated here in our guidance reflects what we can deliver as a standalone single product focus company this. Okay, great. And then just as a follow-up, when you think about the filler launch, which I hear your point isn't this year, but I think Sandra talked about some, you know, incremental costs associated with it. Do you expect to increase the size of the sales force? Or when you talk about higher expenses for the launch, is that mostly going to be around promotion and, and, and, and other, you know, other spending? Yeah, I think we'll be in a position to provide a little more granularity as we get closer to commercialization. The reality of it is we don't anticipate a large investment in one pocket of this, meaning a significant sales force expansion. I think we have a very diverse organization. This digital footprint that we've developed makes us very efficient from an operational standpoint and allows us to maximize our reach despite the size of our field footprint.

Speaker Change: And we believe that the growth that we've demonstrated here in our guidance reflects what we can deliver as a standalone single product focused company this year.

Speaker Change: Okay, Great and then just as a follow up when you think about.

Speaker Change: The filler launch, which I hear your point isn't this year, but I.

Speaker Change: I think as Andrew talked about some incremental costs associated with it do you expect to increase the size of the sales force or when you talk about higher expenses for the launches that mostly just going to be around promotion.

Speaker Change: And other.

Speaker Change: Other spot.

Speaker Change: Yes, I think it will be in a position to provide a little more granularity as we get closer to commercialization.

Speaker Change: If it is we don't anticipate a large investment in one pocket of this meaning a significant sales force expansion I think we have a very diverse organization. This digital footprint that we have developed makes us very efficient from an operational standpoint and allows us to maximize our reach despite the size of our field.

David Moatazedi: So we're going to continue to lean heavily on our digital capabilities. I would expect there would be some marginal increase in the sales force, but we've continued to do that. As you know, every six to nine months, we opportunistically add to our sales force. We've been doing that consistently now for multiple years. Matter of fact, we did one in the back half of last year, and you saw that reflected in our off X in the fourth quarter was the cost of expanding that team. That team just hit the field in January.

Speaker Change: Print and so we're going to continue to lean heavily on our digital capabilities I would expect there would be some marginal increase in the sales force, but we've continued to do that as you know every six to nine months, we opportunistically add to our sales force we've been doing that consistently now for multiple years Matt.

Speaker Change: For a fact, we did one in the back half of last year, you saw that reflected in our opex in the fourth quarter was the cost of expanding that team that team just hit the field in January.

David Moatazedi: So it's helping us continue to expand our footprint now, not only for the growth we have but in anticipation of the filler that's coming. And, of course, co-branded media and education are very important parts of the investment mix that we'll make. And those are things that we're evaluating now, how we continue to bring products to market in a way that is different from what's traditionally been done. And I think you can expect that we'll get creative in that way as we get closer to launch. And we'll share that with you. Okay, great.

So it's helping us continue to expand our footprint now not only for the <unk> growth, we have but in anticipation of the salary thats coming and of course. These co branded media and education are very important parts of the investment mix that will make and those are the things that we're evaluating now how we continue to bring prada.

Speaker Change: <unk> to market in a way that is different from what's traditionally been done and I think you can expect that we'll get creative in that way as we get closer to launch and share that with you.

Speaker Change: Okay, great. Thank you.

Speaker Change: Our next question comes from <unk> Prasad with Barclays. Please state your question.

David Moatazedi: Thank you. Our next question comes from Balaji Prasad with Barclays Police. Good afternoon, this is Xiao-An for Balaji. Thanks for taking our question. It has been two quarters since Ravens.

Speaker Change: Good afternoon. This is Sean on for <unk>. Thanks for taking our question. It has been two quarters since the Ravens changed its pricing strategy on taxi five have you seen any impact on the gross uptick off of jumbo and how do you expect market share so change Luis taxi <unk> price being similar to Botox now thank you.

Balaji V. Prasad: Pricing Strategy on Dexify. Have you seen any impact on the growth uptake of JVO? And how do you expect market shares to change with Dexify pricing?...

David Moatazedi: Sure. Thanks for the question. Look, I think with every new entrant, you try to establish what your value proposition is to the market. And, as you pointed out, the latest entrant made a significant shift in their pricing strategy early on in the launch. The fourth quarter, I think, was the first whole quarter that you saw that competitor in the market with new pricing, and you saw the growth that we delivered. I think we said all along that the entrance of a new competitor wouldn't change our focus. I think that applies not just to prior competitors; it applies to new competitors coming in.

Speaker Change: Sure.

Speaker Change: For the question.

Speaker Change: Look I think.

Speaker Change: With every new entrant you try to establish what your value proposition is to the market and as you pointed out.

Speaker Change: The latest entrant made a significant shift in their pricing strategy early on in the launch of <unk>.

Speaker Change: Fourth quarter I think was the first full quarter that you saw that that competitor in the market with new pricing and you saw the growth that we delivered I think we said all along that the entrance of a new competitor doesn't change our focus I think that applies not just to <unk>.

Speaker Change: Prior competitors that applies to new competitors coming in and that doesn't mean that we don't take competitors seriously and were not prepared for them, but it also means that we try to maintain our focus against the real opportunity, which is we see this as a beauty category and that consumers are looking to partner with a brand that aligns with their values and we've built this brand.

David Moatazedi: And that doesn't mean that we don't take competitors seriously, and we're not prepared for them, but it also means that we try to maintain our focus on the real opportunity, which is that we see this as a beauty category, and that consumers are looking to partner with a brand that aligns with their values. And we've built this brand from the ground up for that younger generation of millennials, everything from our tech space, loyalty program, to the co-branded media, to the way we advertise and communicate the practices. It is a brand that's built for this younger generation, and we believe that our success is driven by our ability to continue to execute on our vision. And it's not driven by the competitive dynamics that have played out in the market.

Speaker Change: <unk> from the ground up for that younger generation of millennials everything from our tech space loyalty program to the co branded media to the way, we advertise and communicate with practices. It is a brand thats built for this younger generation and we believe that our success is driven by our ability to continue to execute on our vision and it's not driven by the competitive.

Speaker Change: Dynamics that have played out in the market.

David Moatazedi: And we've been able to prove that in the fourth quarter. We expect that to continue to be the case going forward. We don't anticipate any changes to our pricing strategy, our promotional strategy, or anything we do on the execution side. I'm really proud of what the team has done, and we'll continue to see really strong execution from that. Thank you for all your questions.

Speaker Change: <unk> been able to prove that in the fourth quarter, we expect that to continue to be the case going forward. We don't anticipate any changes to our pricing strategy, our promotional strategy or anything we do on the execution side, we're really proud of what the team has done and will continue to see really strong execution from them.

Speaker Change: Thank you.

Thank you for all your questions at this time I would like to turn the call back over to David <unk>, President and Chief Executive Officer for closing comments David.

David Moatazedi: At this time, I would like to turn the call back over to David Moatazedi, President and Chief Executive Officer, for comments. Thank you. As we look out over the next 18 months, we've built the infrastructure to deliver on Evolus' growth. The continued strength of our flagship toxin and growing brand loyalty will drive meaningful growth this year as we look to expand our share in the U.S. and increase our footprint internationally. The combination of strong execution and the expansion of our portfolio with Evolus and Esteem put us well on our way to achieving our 2028 revenue goal of at least $700 million. I'm proud of the innovative culture we've built at Evolus and the tenacity of our team. We strive to differentiate ourselves in the marketplace.

David: Thank you.

David: As we look out over the next 18 months, we built the infrastructure to deliver on <unk> growth. The continued strength of our flagship toxin and growing brand loyalty will drive meaningful growth. This year as we look to expand our share in the U S and increase our footprint internationally the.

David: The combination of strong execution and the expansion of our portfolio with <unk> and his team put us well on our way to achieving our 2028 revenue goal of at least $700 million.

David: I am proud of the innovative culture, we've built at <unk> and it's a nasty of our team we strive to differentiate ourselves in the marketplace. We expect to outpace our competitors with a strong beauty brand proven products digital infrastructure and a unique strategy targeting millennials the fastest growing segment of toxin users in the market.

David Moatazedi: We expect to outpace our competitors with a strong beauty brand, proven products, digital infrastructure, and a unique strategy targeting Millennials, the fastest growing segment of Toxin users in the market. The increasing momentum of our business and the results of the fourth quarter and full year 2023 demonstrate the effectiveness of our business model and the competitive moat we've built as the only Cascade-focused aesthetics company. Finally, next week we will participate in both the Lyrinc and Barclays conferences in Miami. We look forward to seeing you all there. Thank you for joining us today. Thank you. And this concludes; we've reached the end of the call; you may now disconnect your lines.

David: The increasing momentum of our business and the results of the fourth quarter and full year 2023 demonstrate the effectiveness of our business model and the competitive moat. We have built as the only cash pay focused aesthetics company.

David: Finally next week, we will participate in both the Leerink and Barclays conferences in Miami, We look forward to seeing you all there.

Speaker Change: Thank you for joining us today.

Speaker Change: Thank you.

And this concludes.

Speaker Change: <unk> the call you may now disconnect. Your lines. This concludes today's conference. Thank you.