Q1 2024 Evolus Inc Earnings Call
Operator: Good afternoon, everyone, and thank you for standing by. Welcome to Evolus's first quarter 2024 earnings conference call. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, today's conference is being recorded and webcast live. All participants are in a listen-only mode. After the speaker's remarks, there will be a question and answer session. I would now like to turn the conference over to Nareg Sagherian, Vice President and Head of Global Investment Relations and Corporate Communications.
Good afternoon, everyone and thank you for standing by.
Nareg Sagherian: Welcome to <unk> first quarter 2024 earnings conference call.
Nareg Sagherian: If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad. As a reminder, today's conference is being recorded and webcast live all participants are in a listen only mode. After the Speakers' remarks, there will be a question and answer session.
Nareg Sagherian: I would now like to turn the conference over to <unk>, Vice President and head of global Investor Relations and corporate communications.
Nareg Sagherian: Please go ahead.
Nareg Sagherian: Thank you, operator. And welcome to everyone joining us on today's call to review Evolus's first quarter 2024 financial results. Our first quarter 2024 press release is now on our website at evolus.com. With me today are David Moatazedi, President and Chief Executive Officer, and Sandra Beaver, Chief Financial Officer. Rui Avelar, Chief Medical Officer and Head of R&D, is also with us for the Q&A portion of the call.
Operator: Yeah.
Nareg Sagherian: Thank you operator, and welcome to everyone joining us on today's call to review <unk> first quarter 2020 financial results.
Nareg Sagherian: Our first quarter 2024 press release is now on our website at <unk> Dot com.
Nareg Sagherian: With me today are David <unk>, President and Chief Executive Officer, and Sandra Beaver Chief Financial Officer.
Speaker Change: The Avalon Chief Medical Officer, and head of R&D is also with us for the Q&A portion of the call.
Nareg Sagherian: 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. Forward-looking statements are based on management's current assumptions and expectations of future events and trends, which may affect the company's business, strategy, operations, or financial performance. 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.
Nareg Sagherian: 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 the United States Securities Laws and management May make additional forward looking statements in response to your questions.
Nareg Sagherian: Forward looking statements are based on management's current assumptions and expectations of future events and trends, which may affect the company's business strategy operations or financial performance.
Nareg Sagherian: Listeners are cautioned not to place undue reliance on these forward looking statements.
Nareg Sagherian: Only as of the date of this call and the company undertakes no obligation to update or review any estimate objection all forward looking statements, except as required by law.
Nareg Sagherian: 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 a substitute for, or in isolation from, our GAAP program.
Nareg Sagherian: 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.
Nareg Sagherian: 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.
Nareg Sagherian: Additionally, today's discussion.
Nareg Sagherian: non-GAAP financial measures, which should be considered in addition to and not as a substitute for or in isolation from our GAAP results.
Nareg Sagherian: A reconciliation of GAAP to non-GAAP results may be found in our earnings notice, which was filed with our Form 8K filed today with the SEC and on our investor relations website at evolus.com. 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.
Nareg Sagherian: A reconciliation of GAAP to non-GAAP results may be found in our earnings release.
David Moatazedi: Which was furnished with our form 8-K filed today with the SEC and on our Investor Relations website at <unk> Dot com.
David Moatazedi: Following the conclusion of today's call a replay will be available on our website at <unk> Dot com.
David Moatazedi: With that I'll turn the call over to our CEO David Motor Betty.
David Moatazedi: Narg. Good afternoon, everyone. Thank you for joining us on our first quarter 2024 earnings conference call. Following a record year in 2023, which represented our third year as the fastest growing neurotoxin in the US, we are very pleased to report the continued adoption of Chavot with another quarter of above-market performance and strong revenue growth. Our reported revenue of $59.3 million in the first quarter represents 42% growth over the prior year, highlighting our continued strength in execution and increasing momentum from 2023 toward achieving our 2024 net revenue guidance of between $255 million and $265 million. We continue to maintain a focus on operating expense discipline with operating expense growth at less than half the rate of revenue, putting us on a clear pathway to profitability in the fourth quarter of this year.
David Moatazedi: Thank you.
David Moatazedi: Good afternoon, everyone. Thank you for joining us on our first quarter 2024 earnings conference call.
David Moatazedi: Following a record year in 2023, which represented our third year as the fastest growing neurotoxin in the U S. We are very pleased to report the continued adoption of <unk> with another quarter of above market performance and strong revenue growth.
David Moatazedi: Our reported revenue of $59 3 million in the first quarter represents 42% growth over the prior year.
David Moatazedi: Highlighting our continued strength in execution and increasing momentum from 2023 toward achieving our 2024 net revenue guidance of between $255 million and 265 billion.
David Moatazedi: We continue to maintain a focus on operating expense discipline with operating expense growth at less than half the rate of revenue putting us on a clear pathway to profitability in the fourth quarter of this year.
David Moatazedi: Our differentiated approach to building a performance feeding company is gaining increased acceptance. These results underscore the continued growth of our brand and, importantly, the loyalty of our customers and consumers, who are increasingly choosing to partner with Evolus. I'm pleased to share with you the metrics that delivered these results in the quarter.
David Moatazedi: Our differentiated approach to building a performance beauty company is gaining increased acceptance. These.
David Moatazedi: These results underscore the continued growth of our brand and importantly, the loyalty of our customers and consumers who are increasingly choosing to partner with Atlas.
David Moatazedi: I'm pleased to share with you the metrics that delivered the results in the quarter.
David Moatazedi: In the U.S., we added over 700 new purchasing accounts, bringing our total number of customers purchasing since launch to over 13,000, which represents approximately 40% penetration of the roughly 30,000 customers in the U.S. that inject cosmetic neurotoxins. The standout metric this quarter was the number of consumers who are treated in our Evolus Consumer Loyalty Program, which achieved an all-time high number of redemptions with approximately 180,000 consumers who received treatment. Importantly, 60% of those were repeat treatments, and the remainder were new to Chabot.
David Moatazedi: In the U S. We added over 700, new purchasing accounts, bringing our total number of customers purchasing since launch to over 13000.
David Moatazedi: Which represents approximately 40% penetration of the roughly 30000 customers in the U S. Then inject cosmetic neurotoxin.
David Moatazedi: The standout metric this quarter was the number of consumers who are treated in our Atlas consumer loyalty program.
David Moatazedi: Which achieved an all time high number of redemptions with approximately 180000 consumers who received treatment.
David Moatazedi: Importantly, 60% of those were repeat treatments and the remainder were newness your vote.
David Moatazedi: Our Loyalty Program continues to gain momentum in the market, with every consumer earning $40 off their Chabot treatment, which is a meaningful savings over loyalty programs in the toxin space. On the international side, we continue to expand our international footprint with a focus on deeper penetration in the UK, Germany, and Italy, while actively preparing to launch in Australia and Spain later this year. And lastly, on the R&D side, we've made significant progress with the development of our novel dermal filler line and remain on track for U.S. and international launch in 2025.
David Moatazedi: Our loyalty program continues to gain momentum in the market with every consumer earning $40 off Theres your vote treatment, which is a meaningful savings over loyalty programs in the toxin space.
David Moatazedi: On the international side, we continue to expand our international footprint with a focus on deeper penetration in the U K, Germany, and Italy, while actively preparing to launch in Australia, and Spain later this year.
David Moatazedi: And lastly on the R&D side, we've made significant progress with the development of our novel dermal filler line and remain on track for U S and international launch in 2025.
David Moatazedi: Within the next 90 days, we plan to file our first two fillers with the FDA, and we'll present the top line results of this pivotal trial on Friday, May 17th at the scale meeting in Nashville. I'm proud of the team at Evolus.
David Moatazedi: Within the next 90 days, we plan to file our first two pillars with the FDA and we will present the topline results of this pivotal trial on Friday may 17th at the scale meeting in Nashville.
David Moatazedi: I'm proud of the team at Atlas, they're highly driven focused and believe in our mission of building a performance beauty company.
David Moatazedi: They're highly driven, focused, and believe in our mission of building a performance beauty company. It is their commitment that gives Evolus an outsized presence in the market. Our success in the quarter is largely driven by our continued market penetration in a strong underlying market, which remains healthy as consumers continue to prioritize their spending on the toxin procedure. Jiveau's brand recognition, clinical performance, and high satisfaction profile are well positioned for new consumers entering the category.
David Moatazedi: It is their commitment that gives <unk>, an outsized presence in the market.
David Moatazedi: Our success in the quarter is largely driven by our continued market penetration on a strong underlying market, which remained healthy as consumers continue to prioritize their spending on the toxin procedure.
David Moatazedi: So both brand recognition clinical performance and high satisfaction profile is well positioned for new consumers entering the category.
David Moatazedi: This positioning will allow us to continue capturing demand from the younger generation while we actively prepare to integrate our novel dermal filler line, Evolus, when it becomes commercially available starting in 2025. Looking beyond 2024, we remain confident in our commitment to drive long-term value for our shareholders by achieving our total net revenue goal of at least $700 million by 2028. This confidence is driven by the strong market opportunity for JVO in the U.S., the international expansion of Nuceva, and the commercialization of the Evolus line of fillers beginning in 2025. Now I'll turn it over to Sandra, who will cover the financials.
David Moatazedi: This positioning will allow us to continue capturing demand from the younger generation, while we actively prepare to integrate our novel dermal filler line ever lease when it becomes commercially available starting in 2025.
Sandra: Looking beyond 2024, we remain confident in our commitment to drive long term value for our shareholders by achieving our total net revenue goal of at least $700 million by 2028.
Sandra: This confidence is driven by the strong market opportunity of your vote in the U S.
Sandra: The international expansion of receiver and the commercialization of <unk> line of fillers beginning in 2025.
David Moatazedi: Now I'll turn it over to Sandra who will cover the financials. Thank.
Sandra Beaver: I would like to congratulate the Evolus team for another quarter of above-market sales growth and operating expense discipline. These above-market Q1 results represent a meaningful step towards achieving our top-line guidance and delivering profitability for Q4 2024. Turning to the results.
Sandra: Thank you David.
Sandra: I would like to congratulate the team for another quarter of above market sales growth and operating expense discipline.
Sandra Beaver: If that market Q1 results represent a meaningful step towards achieving our top line guidance and delivering profitability for Q4 'twenty 'twenty four.
Sandra Beaver: Turning to the results.
Sandra Beaver: Global net revenues for the first quarter were $59.3 million, up 42% compared to net revenues in the first quarter of 2023. Sales in the U.S. comprised more than 95% of revenues this quarter. International revenue contribution will continue to increase as international toxic growth outpaces the U.S. In the US, where the pricing environment remains strong, our customer reorder rate remains at approximately 70%, and our sales are driven primarily by higher volume.
Sandra Beaver: Net revenues for the first quarter were $59 3 million up.
Sandra Beaver: 42% compared to net revenue in the first quarter of 2023.
Sandra Beaver: Sales in the U S comprise more than 95% of revenues this quarter.
Sandra Beaver: International revenue contribution will continue to increase our international toxin growth will outpace the U S.
Sandra Beaver: In the U S, where the pricing environment remains strong our customer reorder rate remains at approximately 70% and our sales were driven primarily by higher volumes.
Sandra Beaver: Our reported growth margin for the first quarter was 68.3%, and our adjusted growth margin, which excludes the amortization of intangibles, was 69.5%, and was in line with our full year of guidance. Our GAAP operating expenses for the first quarter were $68.3 million compared to $69.6 million in the fourth quarter. Non-GAAP operating expenses for the first quarter were $42.1 million, compared to $45.5 million in the prior quarter. Reported selling general and administrative expenses for the first quarter were $45.1 million, compared to $43.1 million recorded in the fourth quarter. This quarter, SG&A expenses included $5.1 million of non-cash, stock-based compensation compared to $4.4 million in the fourth quarter.
Sandra Beaver: Our reported gross margin for the first quarter was 68, 3% and our adjusted gross margin, which excludes the amortization of intangibles.
Sandra Beaver: 69, 5% and in line with our full year guidance.
Sandra Beaver: Our GAAP operating expenses for the first quarter were $68 3 million compared to $69 6 million in the fourth quarter.
Sandra Beaver: non-GAAP operating expenses for the first quarter were $42 1 million compared to $45 5 million in the prior quarter.
Sandra Beaver: Reported selling general and administrative expenses for the first quarter were $45 1 million compared to $43 1 million recorded in the fourth quarter.
Sandra Beaver: This quarter SG&A expenses included $5 1 million of noncash stock based compensation.
Sandra Beaver: Parents at $4 4 million in the fourth quarter.
Sandra Beaver: Operating expenses remain in line with our Q4 spending levels. We anticipate modest operating expense increases throughout the year as we begin to prepare for the filler launch in 2025. Our non-GAAP loss from operations in the first quarter was $0.9 million compared to $3.7 million reported in the fourth quarter. This $2.8 million sequential improvement in the non-GAAP loss from operations represents meaningful continued progress on our path towards profitability in the fourth quarter of 2024. Both non-GAAP operating expenses and non-GAAP loss from operations exclude stock-based compensation expense, revaluation of the contingent royalty obligation, and depreciation and amortization.
Sandra Beaver: Operating expenses remain in line with our Q4 spending.
Sandra Beaver: We anticipate modest operating expense increases throughout the year as we begin to prepare for the filler launch in 2025.
Sandra Beaver: Our non-GAAP loss from operations in the first quarter was 0.9 million compared to $3 7 million reported in the fourth quarter.
Sandra Beaver: This 2.8 million sequential improvement in the non-GAAP loss from operations represent meaningful continued progress on our path towards profitability in the fourth quarter of 2024.
Sandra Beaver: Both non-GAAP operating expenses and non-GAAP loss from operations excludes stock based compensation expense revaluation of the contingent royalty obligation and depreciation and amortization.
Sandra Beaver: Turning to the balance sheet, we ended the first quarter with $97 million in cash, compared to $62.8 million at December 31, 2023. The cash balance includes $47 million of net proceeds from the underwritten offering in March.
Sandra Beaver: Turning to the balance sheet, we ended the first quarter with $97 million in cash compared to $62 8 million at December 31, 2023.
Sandra Beaver: The cash balance includes $47 million of net proceeds from the underwritten offering in March.
Sandra Beaver: Net cash used for operating activities was $10.6 million, which improved by $10 million as compared to Q1 2023. It's important to note that the first quarter is seasonally the highest operating cash use quarter due to the timing of annual bonus payments. This reduction in year-over-year operating cash use represents continued progress towards cash flow breakeven. We continue to expect our existing liquidity will fully fund us for the fourth quarter of 2024, full year 2025, and beyond, including the repayment of our 125 million debt facility in 2026 and 2027.
Sandra Beaver: Net cash used for operating activities was $10 6 million, which improved 10 million as compared to Q1 2023.
Sandra Beaver: It's important to note that the first quarter is seasonally the highest operating cash use quarter due to the timing of annual bonus payments.
Sandra Beaver: This reduction of year over year operating Kashi. This represents continued progress towards cash flow breakeven.
Sandra Beaver: We continue to expect our existing liquidity will fully fund as the profitability for the fourth quarter of 2020 for full year 2025, and beyond including the repayment of our $125 million debt facility in 2026 and 2020.
Sandra Beaver: We continue to have confidence in the performance of JVO, as evidenced by our strong first quarter results, and are on track to deliver $255 million to $265 million in revenues this year, as we announced earlier this year. We continue to target total revenues of at least $700 million by 2028, driven by continued growth in share grains in our neurotoxin business in the US and international markets, along with a growing contribution from our novel line of fillers that will begin in 2025.
Sandra Beaver: We continue to have confidence in the performance.
Sandra Beaver: As evidenced by our strong first quarter results and are on track to deliver $255 million to $265 million and revenues as we announced earlier this year.
Sandra Beaver: We continue to target total revenues of at least 700 million by 2028, driven by continued growth and share gains in our neurotoxin business in the U S and international market, along with a growing contribution from our novel fillers that begin in 2025.
Sandra Beaver: This equates to a compounded annual growth rate of 28% on a total addressable market of approximately $6 billion today, growing to approximately $10 billion by 2028. With that in mind, I'd like to summarize our guidance.
Sandra Beaver: This equates to a compound annual growth rate of 28% on a total addressable market of approximately 6 billion today growing to approximately 10 billion by 2028.
Sandra Beaver: Total net revenues of between $255 million and $265 million, over 95% of which will come from sales in the US and the balance from international markets. Our quarterly revenue assumes typical industry seasonality. In addition, it is worth noting that we expect first half growth rates to exceed second half growth rates, primarily driven by the 2023 comparison period, and adjusted growth margin in the range of 68 to 71 percent. Non-GAAP Operating Expense Guidance is between $185 million and $190 million.
Sandra Beaver: With that context in mind I'd like to summarize our guidance.
Sandra Beaver: Total net revenues of between $255 million and $265 million.
Sandra Beaver: Over 95% of which will come from sales in the U S and the balance from international market.
Sandra Beaver: Our quarterly revenue assumes typical industry seasonality.
Sandra Beaver: In addition, it is worth noting that we expect first half growth rates to exceed second half growth rate, primarily driven by the 2023 compare period.
Sandra Beaver: And adjusted gross margin in the range of 68% to 71%.
Sandra Beaver: non-GAAP operating expense guidance in between $185 million and $190 million.
Sandra Beaver: We expect to achieve positive non-GAAP operating income on a consolidated basis for the fourth quarter of 2024 and the full year 2025. It is also worth noting that within the year 2025, profitability may not be sustained every quarter due to the filler loss. Finally, the company projected total net revenue could reach at least $700 million by 2028. Now, let me turn the call back to the operator to begin Q&A.
Sandra Beaver: We expect to achieve positive non-GAAP operating income on a consolidated basis for the fourth quarter of 2024 and the full year 2025.
Sandra Beaver: It is also worth noting that within the year 2025 profitability may not be sustained every quarter due to the filler launch.
Sandra Beaver: Finally, the company projected told him that revenue can reach at least 700 million that's funny funny.
Sandra Beaver: Now, let me turn the call back to the operator to begin Q&A.
Speaker Change: Thank you.
Sandra Beaver: Okay.
Operator: at this time. 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. When your question is in the question queue, you may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key.
Sandra Beaver: At this time.
Operator: 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.
Operator: Back to 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 using speaker equipment. It may be necessary to pick up your handset before pressing the least darkies.
Operator: One moment, please, while we poll for questions. Our first question comes from the line of Annabel Samimy with Stifel. Please proceed with your question. Hi.
Operator: One moment, please while we poll for questions.
Operator: Yeah.
Annabel Eva Samimy: Our first question comes from the line of antebellum semi with Stifel. Please proceed with your question.
Annabel Eva Samimy: Hi, Thanks for taking my questions and congratulations on another strong quarter. So I'm just wanted to ask you about account momentum obviously, it's picked up quite a bit from the five 600, and you're sort of in a new <unk>.
Annabel Eva Samimy: So I just wanted to ask you about account momentum. Obviously, it's picked up quite a bit from the 5600, and you're sort of in a new, I guess, account addition level. And I guess what I'm wondering is, first, is it sustainable? And second, is it necessary?
Annabel Eva Samimy: I guess Count addition level and I guess, what I'm wondering is first is it sustainable and second is it necessary to have room to go a lot deeper than water. So for one reason or another one quarter, you're not getting as many accounts you can sort of drive deeper into some.
David Moatazedi: Do you have room to go a lot deeper than wider? So if for one reason or another, one quarter, you're not getting as many accounts, you can still drive deeper into some of those accounts. And then, I guess, on a bigger picture, I want to get your thoughts on how you think the market dynamics may shift as we're starting to see some additional entrants come into the market. I know we've touched on it before, but it's coming closer and closer.
David Moatazedi: Some of those accounts and then I guess bigger picture I want to get your thoughts on how you think the.
David Moatazedi: Hum.
David Moatazedi: The market dynamics may shift as we're starting to see some additional entrants come into the market I know you've touched on it before but it's becoming it's kind of closer and closer and now got derma is public and speaking about it themselves. So I just want to.
David Moatazedi: And now, Galderma is public and speaking about it themselves, so I just wanted to see how you feel about market dynamics playing out. And then, I guess, can we use Europe kind of as a proxy for how things are going to evolve in the U.S., given they have a lot more product options over there? So I guess I'll start with that.
David Moatazedi: See how you feel about market dynamics, playing out and then I guess can we use Europe kind of as a proxy for how things are going to evolve in the U S. Given they have a lot more product off options over there. So I guess I'll start with that.
David Moatazedi: Great. Annabel, thanks for the questions.
Speaker Change: Great Hi, Annabel. Thanks for the question I'll just go through each of them is as you just went through starting with new accounts.
David Moatazedi: I'll just go through each of them as you just did, starting with new accounts. Look, we're really thrilled to see the step up over the last two years in new accounts from about 500 on average, as you mentioned, up to 600. And now we've consistently been in and around 700. I think, as we've stated in the past, we don't have a target for new accounts. Ideally, it's north of 500.
David Moatazedi: Look we're really thrilled to see the step up over the last two years and new accounts from about 500 on average as you mentioned up to 600 and now we've consistently been in and around 700, I think as we stated as we stated in the past we don't have a target for new accounts ideally, it's north of 500, I think what you're seeing in this.
David Moatazedi: Increased demand up to the 700, new accounts per quarter threshold, it's largely just driven by the influx, we're getting and demand of new accounts that want to partner with Apple is as our Cobranded media increases the quality of our product.
David Moatazedi: I think what you're seeing in this increased demand up to the 700 new accounts per quarter threshold is largely just driven by the influx we're getting in demand of new accounts that want to partner with Avolus. As our co-branded media increases, the quality of our product continues to perform, and more consumers enter our loyalty program, as you can imagine, the noise level around both the company and the brand is increasing.
David Moatazedi: As it continues to perform and more consumers and our loyalty program as you can imagine.
David Moatazedi: The noise level around both the company and the brand are increasing and all of those are catalysts that are driving more new accounts to consider partnering with.
David Moatazedi: And all of those are catalysts that are driving more new accounts to consider partnering with us. And so we believe that it is sustainable in the sense that we're only about 40 percent penetrated into the total account base of 30,000. To your point, there may be quarters in the future, especially with the launch of Affiliate, where we may retrench and spend more time with our existing accounts and may not be able to spend as much time opening these new accounts.
David Moatazedi: And so we believe that it is sustainable in the sense that we're only about 40% penetrated into the total account base of 30000 to your point there may be quarters in the future, especially with the launch of a filler where we'd be retrench and spend more time with our existing accounts and may not be able to spend as much time.
David Moatazedi: Opening these new accounts, but I think as we peel the onion back the new accounts or are important because they allow us to go wider in the market, but the majority of our growth is coming from going deeper within our existing customers. So overall, we have a very healthy composition in our business of going deeper.
David Moatazedi: But I think as we peel back the onion, the new accounts are important because they allow us to go wider in the market, but the majority of our growth is coming from going deeper within our existing customers. So overall, we have a very healthy composition in our business of going deeper as well as going wider in order to penetrate the market. And whether that cadence is 500 or 700 accounts, I think the growth rates would be very healthy with our business going forward. And anywhere in that range, we feel confident.
David Moatazedi: As well as going wider in order to penetrate the market and whether that cadence is it 500 or 700 accounts I think the growth rates would be very healthy with our business going forward anywhere in that range, we feel confident.
David Moatazedi: Moving onto additional market entrants I look at this we anticipated new market entrants beginning this year right as you saw with one other product that was FDA approved.
David Moatazedi: Moving on to additional market entrance. Look, we anticipated new market entrance beginning this year, right? As you saw with one other product that was FDA-approved earlier this year, we anticipate they're going to enter the market before year end.
David Moatazedi: Earlier this year, we anticipate theyre going to enter the market before year end and that was factored in to our guidance keep in mind that that is a product that we currently compete with in Europe.
David Moatazedi: And that was factored in to our guidance. But keep in mind that that is a product that we currently compete with in Europe. And we feel confident about our positioning. In the end, we've defined a unique position in the market, not just in our cash pay strategy, but our focus on this younger generation, and then the value of the partnership when these customers partner with Avaliss. And as you know, looking back over the years, it takes time to build both the partnership and those capabilities.
David Moatazedi: And we feel confident about our positioning in yen, we have defined a unique position in the market not just in our cash pay strategy, but our focus against this younger generation and then the value of the partnership.
David Moatazedi: When these customers partner with Avalere and <unk>.
David Moatazedi: As you know looking back over a year as it takes time to build both the partnership and those capabilities and that's something that we've continued to build over time and you see a brand now entering its fifth year. This year on the market and growth accelerating over where they were in the front half of last year. So I think we feel very good about where our.
David Moatazedi: And that's something that we've continued to build over time. And you see a brand now that's entering its fifth year this year on the market, and growth is accelerating over where they were in the front half of last year. So I think we feel very good about where our brand is positioned in the market and then the tailwind that we get by focusing on that younger generation. And then, you know, there will be more competitors down the road, just like there are in other markets and with fillers.
David Moatazedi: Brand is positioned in.
David Moatazedi: In the market and then the tailwind that we get by focusing on that younger generation.
David Moatazedi: And then there.
David Moatazedi: There will be more competitors down the road just like there are in other markets and fillers and I think these are high growth markets and as new market entrants enter you see that they can benefit without affecting the growth of existing players I think that was evidenced by the latest entrant that came in and our business continued to perform well. So we feel good about where.
David Moatazedi: And I think these are high-growth markets, and as new market entrants enter, you see that they can benefit without affecting the growth of existing players. I think that was evidenced by the latest entrant that came in, and our business continued to perform well. So we feel good about where we are on that side. And I think to some degree, the Western world is a proxy. So Europe is not an unreasonable one for the U.S. There are similar dynamics, so I think we do look closely at Europe to be a predictor of where we think the opportunity is in the U.S.
David Moatazedi: We are on that side and I think to some degree the western world as a proxy so Europe is not an unreasonable one.
David Moatazedi: For the U S. There are similar dynamics. So I think we do look closely Europe to be a predictor of where we think the opportunity is in the U S.
David Moatazedi: Okay, and if I could just squeeze one more in. Is there anything you can tell us about performance in the filler market? What kind of dynamics should we expect as you enter this market? Obviously, it performs just a little bit differently than the neurotoxin market. What kind of trends should we be thinking about in that market?
Speaker Change: And if I could just squeeze one more and is there anything you can tell us about performance in the solar market and what kind of dynamics.
David Moatazedi: I'm not we should expect as you enter this market obviously it performs just a little bit differently than the neurotoxin market. What's your what kind of trend should we be thinking about in that market.
David Moatazedi: Well, you have.
David Moatazedi: Well, you have a market that's valued at about three-quarters the size of the toxin market, so it's a $1.8 billion market in the U.S. It's a market that, over time, has had very healthy growth trends and we expect will continue to. Hyaluronic acids make up anywhere from 80 to 90% of the value of that total filler category.
David Moatazedi: Well you have a market that's valued at about three quarters the size of the toxin market. So it's a $1 $8 billion market in the U S.
David Moatazedi: It's a market that over time has had very healthy growth trends and will we expect will continue to hydronic assets make up anywhere from 80% to 90% of the value of that total filler category and so being one of just a few families of fillers once appaloosa enters the U S I think positions us.
David Moatazedi: And so being one of just a few families of fillers, once Avelis enters the U.S., I think positions us very well as we enter that space. We also believe that there is a catalyst looming with the GLPs that does create a market opportunity that is not fully baked in for the filler category just yet. And I think it's a function of timing before we start to see that be a meaningful catalyst.
David Moatazedi: Very well as we enter that space. We also believe that there is a catalyst looming with the G. L. P. But that does create a market opportunity that is not fully baked in for the filler category, just yet and I think it's a function of timing before we start to see that be a meaningful catalyst but.
David Moatazedi: That's something that we're closely watching, but we think it's a very healthy market that will have mid to high single-digit growth going forward. If you look at it historically, it's largely, over time, resembled the toxin market as it relates to growth rates.
David Moatazedi: That's something that we're closely watching but we think it's a it's a very healthy market that will be met.
David Moatazedi: Mid to single mid to high single digit growth going forward. If you look at it historically, it's largely over time mirrored the toxin market as it relates to growth rates.
Speaker Change: Great. Thanks, a lot.
David Moatazedi: Yeah.
Marc Harold Goodman: Thank you. Our next question comes from the line of Marc Goodman with Lyric. Please proceed with your question.
Speaker Change: Thank you IRA.
David Moatazedi: Our next question comes from the line of Marc Goodman with Leerink. Please proceed with your question.
Sandra Beaver: David, how much do you think the U.S. market grew in the first quarter? And then, can you talk a little bit about some of the key markets that you're participating in overseas in Europe, how is the growth there, and you know, maybe you can talk about the Galderman numbers and the numbers from ABVI, just as an extension of the previous question. Thanks.
Marc Harold Goodman: David What did you think the U S market grew in the first quarter and then can you talk a little bit about what you thought some of the key markets that you're participating in are overseas in Europe.
Sandra Beaver: How was the growth there and you know maybe you can talk to the Cal derma numbers and in the.
Sandra Beaver: The numbers from our Abbvie just this extension of the previous question. Thanks.
Sandra Beaver: Hi, Marcus Sander here. Thanks so much for the question. As it relates to the overall market, I think one of the benefits of having more companies reporting is that it gives us a little more clarity on sort of how to triangulate the full market. Obviously, still one yet to go. But as indicated by our performance and what you're hearing in the market, we still believe this is an underlying very healthy market. You know, we can't get to a precise number on market growth in any quarter, but certainly growing and growing at a healthy rate, which gives us that confidence that there's continued demand for the product in the market.
Sandra Beaver: Hi, Mark it's Andrew here. Thanks, so much for the question as it relates to the overall market I think one of the benefits of having more companies reporting it gives us a little more clarity on sort of how to triangulate to full market obviously still.
Sandra Beaver: Yet to go but as indicated by our performance and what you're hearing in the market. We still believe this is an underlying very healthy market.
Sandra Beaver: We can't get to a precise number on market growth on any quarter, but certainly growing and growing at a healthy rate, which gives us that confidence that there's a continued demand for the product in the market and there continues to be overall health in Europe for us.
Sandra Beaver: And there continues to be overall health in Europe for us as a newer entrance into many of these markets. However, our pacing is significantly above market in terms of growth, which makes it a little harder for us to see when you're new to a market. But the underlying market growth, particularly as we are entering new markets in Europe, we're penetrating our share, as we did here in the US, much more deeply in those that we entered first, most notably the UK.
Sandra Beaver: The newer entrants into many of these markets are pacing is significantly above market in terms of growth makes it a little harder for us to see when your new solar market. What's the underlying market growth is particularly as we are entering into new markets in Europe, we're penetrating our share as we did here in the U S. Much more deeply than those that we entered.
Sandra Beaver: At first most notably the U K and we're still earlier days in those like Italy that we enter into the back half of last year and growing at a rate that's significantly higher than what we expect the market is growing.
Sandra Beaver: And we're still in early days, and those like Italy that we entered into in the back half of last year and growing at a rate that's significantly higher than what we expect the market is growing hard for us to read through on other competitors that might be reporting as it relates to Europe.
Sandra Beaver: Hard for us to read through on other competitors that might be reporting as it relates to Europe.
Sandra Beaver: And maybe the only other thing I'd add is, you know, the European launch. We track each market very closely and look at analogs like the U.S. and Canada, and we feel really confident about the uptake we're getting from these new markets we're entering. But keep in mind, the pricing dynamics between Europe and the United States are pretty significant in terms of the difference, and so that's what factors into the values of the respective markets.
Sandra Beaver: And maybe the only other thing I'd add is the Europe launch we track each market very closely and look at analogs like the U S and Canada, and we feel really confident about the uptake we're getting out of out of these new markets, we're entering but keep in mind, the pricing dynamics between Europe, and the United States or are pretty significant in terms of the differ.
Sandra Beaver: And so that's what factors into the values of the respective markets.
David Moatazedi: You talked about customer loyalty in the U.S., that $40 certificate. Is that the same thing that was going on last quarter as well? Yes.
Sandra Beaver: You talked about the customer loyalty in the U S that 40 dollar certificate is that the same thing that was going on last quarter as well.
David Moatazedi: Yeah, that's part of our Evolus Consumer Rewards Program that we launched several years ago, and we've continued to be consistent about our offer, which is $40 off for every consumer. So it's been a multi-year effort, Marc, to that point. That consistency in offering $40 off for these consumers for multiple years is what's really driving the increased traction you're seeing in the market. That's a meaningful savings for these consumers when you think about a $300 to $500 treatment for them when they can count on $40 at every business.
David Moatazedi: Yes, that's part of our Evelyn consumer rewards program that we've launched several years ago and we've continued to be consistent about our offer which is $40 off for every consumer. So it's been a multiyear effort mark to that point that consistency and offering $40 off for these consumers for multiple.
David Moatazedi: Years is what's really driving the increased traction youre seeing in the market. That's a meaningful savings for these consumers. When you think about it three to $500 treatment for them when they can count on $40 on every visit.
David Moatazedi: Thanks.
Operator: Thank you. Our next question comes from the line of Navann Thai with BNP Paribas. Please proceed with your question.
novel anti: Thank you. Our next question comes from the line of novel anti with BNP Paribas. Please proceed with your question.
Navann Thai: Hi, thanks for taking my question. A follow-up on US stocks in competition, if I may, if you could discuss your assumptions for 2024 and 2025 in terms of price, timing, and differentiation for the new entrants. And then separately, if you could discuss the potential uses of proceeds of the opportunistic 50 million offerings. Thank you.
Navann Thai: Hi, Thanks for taking my question.
Navann Thai: So up on the U S toxin competition, if I may if you could discuss your assumptions for 2025, 24, and 25 outlook in terms of price timing.
Navann Thai: And differentiation for the new entrants and then separately if you could discuss the potential uses of proceeds I E.
Navann Thai: Opportunistic comedian offering thank you.
Navann Thai: Yeah.
David Moatazedi: Great. Thanks for the question, Samant. I'll let Sandra take the last portion on the use of the proceeds.
Speaker Change: Great. Thanks for the question.
David Moatazedi: Sandra take the last portion around the <unk>.
Speaker Change: Use of the proceeds.
David Moatazedi: I'll start with the marketplace. Look, I think we were expecting to see a new entrant coming in later this year. We're very well aware of the product profile, and I think at this point, rather than comment on any one competitor, I think we'll address that as each new entrant comes in. It's probably important to note that we expect this market to be healthy and growing. We have forecast this year that we're going to gain share.
Sandra Beaver: Start with.
David Moatazedi: The marketplace.
David Moatazedi: Look I think you know.
David Moatazedi: We expected to see a new entrant coming in later this year, we're very well aware of the product profile I think at this point.
David Moatazedi: Rather than comment on any one competitor I think we'll address that as each new entrant comes in probably important to note that.
David Moatazedi: We expect this market to be healthy growth, we have forecast this year that we're going to gain share that assumption assumes a new market entre and when you look at our forecast for 2028, achieving $700 million.
David Moatazedi: That assumption assumes a new market entrant. And when you look at our forecast of 2028, achieving $700 million, that also assumes several new market entrants. So I do think there's an opportunity for new entrants to come in and carve out their own unique value propositions and for us to continue to do the same. As it relates to how we consider each new entrant and what we may or may not do, I think those are the types of things that we'll probably be sharing with you after the fact versus in advance, kind of on a really
David Moatazedi: That also assumes several new market entrants. So I do think there's an opportunity for new entrants come in and carve out their own unique value proposition and for us to continue to do the same as it relates to how we consider each new entrants and what we may or may not do I think those are the types of things that will probably be sure.
David Moatazedi: Bring with you after the fact versus in advance.
Sandra Beaver: Hi Navann, as it relates to your question on the proceeds from the raise, as we said before the raise, and nothing has changed since, we felt very confident we had sufficient cash and liquidity to carry ourselves through to profitability and beyond. The raise was specifically due to high inbound demand for our stock. We continue to see opportunity to shore up the balance sheet and give ourselves that incremental capacity in the event that there should be an opportunistic moment where we could invest.
David Moatazedi: I know, Brian as it relates to your question on the proceeds from the raise as we said before the race and nothing has changed since we felt very confident we have sufficient cash and liquidity to carry ourselves through to profitability and beyond the rate was specifically due to high inbound demand for our stocks we.
Sandra Beaver: To see opportunity to shore up the balance sheet and give ourselves that incremental capacity in the event that there shouldn't be an opportunistic moment, where we could invest any deal like you saw us do with that belief, which is an incredibly capital efficient deal to expand our portfolio with the cash we had on hand, we would've been limited in our ability to pursue those opportunities.
Sandra Beaver: And a deal like you saw us do with Avelis, which is an incredibly capital efficient deal to expand our portfolio with the cash we had on hand, we would have been limited in our ability to pursue those opportunities. And we now have a much healthier balance sheet position to be able to consider strategic opportunities. Having said that, there's nothing imminent in front of us. There's no reason why it should be merely an opportunistic moment in time when we could get new investors into the stock.
Sandra Beaver: And we now have a much healthier balance sheet position to be able to consider strategic opportunity, having said that theres nothing eminent in front of US. There's no reason why it was merely an opportunistic moment in time, when we could get there.
Sandra Beaver: New investors into the stock.
Speaker Change: Thank you.
Operator: Thank you. Our next question comes from the line of Uy Ear with Mizuho Securities. Please proceed with your question.
Speaker Change: Thank you. Our next question comes from the line of.
Uy Sieng Ear: Ear with Mizuho Securities. Please proceed with your question.
Uy Sieng Ear: Hey guys, thanks for taking your questions. So the first question is just digging a little deeper, you know, in terms of breadth and width of accounts. Maybe can you speak to the average jiva dollars per account and, like, what proportions may have a larger share of the dollars?
Uy Sieng Ear: Hey, guys. Thanks for taking our questions. So the first question is.
Uy Sieng Ear: Just digging a little deeper you know in terms of breadth and width of accounts, maybe can you speak to the average do you have a dollars per account and like what proportions may have a larger share of the dollars mm. That's the first question and the second question is.
Uy Sieng Ear: What should we expect to see at when you present the data for the dermal fillers, just maybe some colors around.
Uy Sieng Ear: Expectations. Thanks.
David Moatazedi: Great. So let me just start with the market. Look, we don't report out on the value per account, but I think just to dimensionize it right, there are 30,000 customers in the US. You could simply apply an 80-20 rule to sort of get a better understanding of the category.
David Moatazedi: That's the first question. And the second question is, what should we expect to see when you present the data for the derma fillers? Just maybe some colors around expectations. Thank you. Great. So let me just start with the market. Look, we don't report out on the value per account, but I think just to dimensionalize it, right?
Uy Sieng Ear: Great.
Uy Sieng Ear: So let me just start with the market.
David Moatazedi: Look we don't report out on the value per account, but I think just to dimensionalize. It right that there is 30000 customers in the U S.
David Moatazedi: Could simply apply an 80 20 rule to sort of get a better understanding of the category and from there you know.
David Moatazedi: And from there, you see that there are about 24,000 customers, roughly, if you did an 80-20 rule, that represent the long tail. So certainly, a lot more smaller value customers out there throughout the US that are either newer to aesthetics or just dabbling in aesthetics and treating a smaller number of patients. And then the remaining 20%, called roughly 6,000 customers, are the ones that are driving the large majority of the revenue.
David Moatazedi: See that yeah, there is about.
David Moatazedi: 24000 customers roughly if you did an 80 20 rule that represent the long tail. So certainly a lot more smaller value customers out there throughout the U S that are either newer to aesthetics or just dabbling in aesthetics and treating a smaller number of patients and then the remaining 20% or call. It roughly 6000 customers.
David Moatazedi: And clearly, our preference would be to try to take on the highest-value customers. But in reality, some of those smaller-value customers we had several years ago are now some of the biggest customers we have today. So I think we continue to support the overall market of 30,000, and we'll penetrate it, as you've seen each quarter methodically and properly train these accounts on the differentiation of Chabot, and introduce some of the unique cash pay advantages that we offer.
David Moatazedi: The ones that are driving the large majority of the revenue and clearly our preference would be to try to take on the highest value customers, but in reality some of those smaller value customers. Several years ago are now some of the biggest customers. We have today. So I think we continue to support the overall market of 30000 and more.
David Moatazedi: Penetrated as you've seen each quarter methodically and properly trained these accounts on the differentiation of <unk> introduced some of the unique cash pay advantages that we offer and I think Chabot then gets into these practices and whether they are existing practices that switch more of their patients to our brand or new practices.
David Moatazedi: And I think Chabot then gets into these practices, and whether they're existing practices that switch more of their patients to our brand or new practices that are attracting a younger generation to this performance beauty category, I think there are many ways to grow this pie. So as we look out, we feel very good about the overall dynamics that there are many ways to grow in this market. And I think we're capitalizing on both.
David Moatazedi: Is that are attracting a younger generation to this performance beauty category I think there's many ways to grow this pie. So as we look out we feel very good about the overall dynamics that there's many ways to grow in this market and I think we are capitalizing on boat.
David Moatazedi: We're in approximately 40% of accounts, but we estimate we may be in roughly 60% of the dollar value of the toxin market. Of course, these are estimates; they're rough estimates, but that gives you a gauge in terms of how we're tracking. And for the second question, with respect to the filler, there's a format at scale that allows for late-breaking news. It's called Hot Topics, so that'll take place at the end of the day on the 17th.
David Moatazedi: In approximately 40% of accounts, but we estimate we may be in roughly 60% of the dollar value of the toxin market of.
David Moatazedi: Of course these are estimates there the rough estimates, but that gives you a gauge in terms of of how we're tracking.
David Moatazedi: And for the second question with respect to the seller.
David Moatazedi: As a format at scale that allows for a late breaking news that's called hot topics or that will take place at the end of the dam 17th.
David Moatazedi: So, kind of in keeping with late-breaking news, you can expect to see the top-line results, and some select secondaries, and just a quick snippet of the safety profile in the conclusion. And at this time, we're not prepared to provide more color on our commercialization efforts. I think we'll provide that as we get closer to the launch date and after FDA approval.
David Moatazedi: So kind of in keeping with late breaking news you can expect to see the topline results and some select secondary and then just a quick snippet of the safety profile and the conclusion.
David Moatazedi: And at this time, we're not prepared to provide more color on our commercialization efforts I think we'll provide that as we get closer to the launch date and after FDA approval.
Speaker Change: Alright, thank you.
David Moatazedi: Thank you. Our next question comes from the line of Douglas Tsao with HC Wainwright. Please proceed with your question. Bye.
Speaker Change: Thank you.
David Moatazedi: Our next question comes from the line of Douglas Tsao with H C. Wainwright. Please proceed with your question.
Douglas Dylan Tsao: Hi, good afternoon, and congratulations on the progress. Maybe just on the broader market, I think Sandra sort of highlighted your belief that the market continues to be healthy. You know, it doesn't seem that everyone is necessarily experiencing the same kind of growth that you are. And, obviously, you're at a different stage than some of the participants. But how would you characterize the competitive dynamics right now? And given the fact that some players aren't necessarily performing as well as you or as well as the broader market, are they, you know, making any tactical changes?
Douglas Dylan Tsao: Hi, good afternoon, and congrats on the progress.
Douglas Dylan Tsao: Maybe just on the broader market.
Douglas Dylan Tsao: I think you know.
Douglas Dylan Tsao: Andrew.
Douglas Dylan Tsao: Highlighted on your belief that the market continues to be healthy.
Douglas Dylan Tsao: You know it doesn't seem that everyone is necessarily experiencing the same kind of growth that you are and obviously you're at a different stage in some of the participants, but how would you characterize the competitive dynamics right now and given the fact that some players arent necessarily performing as well as you or as well as some.
Douglas Dylan Tsao: Water market.
Douglas Dylan Tsao: Or they you know, making any tactical changes.
David Moatazedi: Yeah, so I think the comments that we made around the broader market. We feel very confident, and we have a healthy market here. We forecasted that this year would be roughly in this mid to high single-digit growth. The first quarter is confirmatory of what we expected to see.
Douglas Dylan Tsao: Yeah. So I think the comment that we made around the broader market, we feel very confident and we have a healthy market here.
David Moatazedi: We had forecast this year would be roughly in the mid to high single digit growth for first quarter is confirmatory of what we expected to see.
David Moatazedi: And frankly, that is the trajectory we see over the coming five years as we guide out to 2028. I don't want to speak to one quarter on any competitor because, in all fairness, there are a lot more moving parts likely within any one company. So I'd rather not go there except to say that, look, if I were looking at this category overall, I'd expect every toxin player in the space to deliver some level of growth this year because we have a healthy backdrop for a market.
David Moatazedi: And frankly that is the trajectory we see over the coming five years as we guide out to 2028, I don't want to speak to one quarter on any competitor because I think in all fairness.
David Moatazedi: There's a lot more moving parts likely within any one company.
David Moatazedi: Rather not go there except to say that look if I were.
David Moatazedi: Looking at this category of for all I'd expect every toxin player in this space to deliver some level of growth. This year, because we have a healthy backdrop of the market I think our contribution to the growth and perhaps are over indexing on growth that youre seeing is a function of our positioning against this younger demographic that that is the catalyst and growth driver.
David Moatazedi: I think our contribution to growth and perhaps our over-indexing on growth that you're seeing is a function of our positioning against this younger demographic. That is the catalyst and growth driver for this category. And the way that our brand is positioned, the benefits that that consumer receives, and the practices receive in order to go recruit more new consumers to their offices are the catalysts that are driving our above-index growth. And to the extent that that leads to further share gains, that's hard for us to estimate. But we believe it's a function of where we're positioned in the market, and we think it's a sustainable differentiation that we can continue to build on to grow this category.
David Moatazedi: For this category and the way that our brand is positioned the benefits that that consumer received and the practices receive an order to go recruit more new consumers to their office or the catalysts that are driving our above index growth and to the extent that that leads to further share gains thats hard for us to estimate.
David Moatazedi: We believe it's a function of where we're positioned in the market and we think it's a sustainable differentiation that we can continue to build on to grow this category.
David Moatazedi: and David Mabey, you know, and I hope this doesn't get too granular. Can you sort of provide some perspective on how you think the different segments of the market might be growing? And that would be like the Millennials versus Gen X versus Boomers, to the extent that they're still getting aesthetic procedures, you know. How much variability across those segments do you see?
David Moatazedi: And David D D.
David Moatazedi: And I hope this doesn't get too granular, but can you sort of provide some perspective on how you think the different segments of the market might be growing and that would be like the millennials versus generics versus you know boomers, except that they are still getting ecstatic procedures.
David Moatazedi: Hum.
David Moatazedi: How much variability across those segments do you see.
David Moatazedi: Yeah, I'm expecting in the coming quarters, we'll likely have concrete data sets that could answer that from a third party, and I think that's an important question, Doug. Unfortunately, we don't have that in front of us, aside from sharing with you that we continue to increase our mix towards Millennials, and we believe Millennials are approaching the majority of users in the toxin market, or they're right near that tipping And I wouldn't be surprised to see a data set that suggests that they're already there.
David Mabey: Yes, I'm expecting in the coming quarters will likely have a.
David Moatazedi: Concrete dataset that could answer that from a third party and I think that's an important question Doug on <unk>.
David Moatazedi: Fortunately, we don't have that in front of us aside from sharing with you that we continue to increase our mix towards millennials and we believe the millennials are approaching the majority of users and the toxin market or their right near that tipping point.
David Moatazedi: I wouldn't be surprised to see a data set that suggests that they are already there that backdrop.
David Moatazedi: That backdrop is a very favorable one, I think, for the whole category, frankly, because that's what's going to fuel this category over the next five years. But importantly, for us, given where we positioned the company when we launched about five years ago, we're starting to see the benefits of that forward-thinking positioning as a company. Okay, great.
David Moatazedi: He is a very favorable one I think for the whole category.
David Moatazedi: Frankly, because that's what's going to fuel this category over the next five years, but importantly for us given where we positioned the company. When we launched about five years ago, we're starting to see the benefits of that forward thinking positioning as a company.
David Moatazedi: Okay, great. Thank you so much.
Speaker Change: Okay, great. Thank you so much.
Serge D. Belanger: Thank you. Our next question comes from the line of Serge Belanger with Needham & Company. Please proceed with your question.
Speaker Change: Thank you.
David Moatazedi: Our next question comes from the line of Serge Belanger with Needham <unk> Company. Please proceed with your question.
Sandra Beaver: Hi, good afternoon. Thanks for taking my questions. I think Sandra mentioned that Juul growth in the first quarter was mostly driven by volumes, so I assume pricing was very stable. I'm just curious what your expectations are on the pricing front for this market as more competitors come in, and could it eventually kind of replicate what we're seeing now in the European markets in terms of pricing levels?
Serge D. Belanger: Hi, good afternoon, thanks for taking my questions.
Sandra Beaver: Thanks, Andrew mentioned that.
Sandra Beaver: Job growth in the first quarter.
Sandra Beaver: It was mostly driven by volumes. So I assume pricing was very stable just curious what your expectations are on the pricing front for this market as more competitors come in and could it eventually.
Sandra Beaver: Replicating what we were seeing now in the European markets in terms of pricing levels. Thanks.
Sandra Beaver: Thanks for the question, Serge. Yeah, that is exactly how we frame the quarter. And it is the right inference that pricing has remained very stable. We've said in the past, and nothing has really changed despite continued movement in the market, that we see nothing but strength in terms of upward mobility for us on price, right? So we could see modest increases. I'm not expecting to see meaningful decreases in the price. The U.S. market doesn't behave like the European market.
Speaker Change: Thanks for the question Serge, Yes, exactly how you framed in the quarter and it is the right inference that pricing has remained very stable.
Sandra Beaver: In the past and nothing has really changed despite continued movement in the market that we see nothing but strength in terms of upward mobility for us on price right. So we could see modest increases I'm not expecting to see meaningful decreases in the price. The U S market doesn't behave like the European market, it's not a race on price.
Sandra Beaver: It's not a race on price. It really is driven by the quality of the performance of the product, first and foremost, and we tend to differentiate ourselves against the quality of Giveau, and that continues to give us that strength in our pricing position.
Sandra Beaver: It really is driven by the quality of the performance of the product first and foremost.
Sandra Beaver: And we tend to differentiate ourselves against the quality of a ship now and that continues to give us that strengthen our pricing position.
Sandra Beaver: Yeah.
Sandra Beaver: The only other piece I'd add is that we did look at what drove some of the pricing dynamics in Europe relative to the U.S. To Sandra's point, our ability to do direct consumer advertising creates a different market environment in the U.S. relative to Europe, where you can't advertise to the consumer with drugs. Our ability to offer programs like consumer loyalty programs, not just for Avolus but for the competitive set, is part of the reason why you've seen prices only increase despite new entrants over the last 20 years.
Speaker Change: The only other piece I'd add is we did look at what drove some of the pricing dynamics in Europe relative to the U S to Sandra point, our ability to do direction tumor advertising creates a different market environment in the U S relative to Europe, or you can't advertise to the consumer of drugs, our ability to offer programs that consumer loyalty program not.
Sandra Beaver: Just for <unk>, but the competitive set is part of the reason why you're seeing price only increased despite new entrants over the last 20 years and we believe that these are very sustainable trends and we've modeled accordingly, and if you think about it there's five players today.
Sandra Beaver: And we believe that these are very sustainable trends, and we've modeled accordingly. And if you think about it, there are five players today, and that's been over 20 years. If we pick up several more over the next five to ten years, it's not really a significant shift over what you've seen in the past. So I think our assumptions are very realistic and give us the opportunity to continue to deliver on volume primarily but to see price potentially appreciate by some nominal amount.
Sandra Beaver: And that's been over 20 years, if we pick up several more over the next five to 10 years, it's not really a significant shift over what you've seen in the past. So I think our assumptions are very realistic and give us the opportunity to continue to deliver on volume, primarily but to see price potentially appreciate by some nominal amount.
Serge D. Belanger: Thanks, and nice quarter. Thank you. And our next question comes from the line of Balaji Prasad with Barclays.
Speaker Change: Great, Thanks, and nice quarter.
Balaji V. Prasad: Thank you. And our next question comes from the line of Balaji Prasad with Barclays. Please proceed with your question. Hi everyone, this is Mikaela on behalf of Balaji. Thanks for taking our questions.
Balaji V. Prasad: Thank you.
Balaji V. Prasad: And our next question comes from the line of.
Mikaela: Rajiv Prasad with Barclays. Please proceed with your question.
Mikaela: Everyone's anthropologic, thanks for taking our questions just thinking about as we get closer to the launch of your filler line. How are you thinking about implementing any bundling like programs and just any further color here on what your strategy might look like especially what you're thinking in terms of the size of yourself for it. Thanks so much.
Speaker Change: Sure. Thanks for the question.
Balaji V. Prasad: We are actively in the process of assessing.
Speaker Change: How we would potentially launch the filler upon approval next year as you heard from Murray earlier, we're very excited that in the next 90 days, we'll be filing the first two pillars with the FDA, which will put us on a clock, which is very exciting considering we signed this agreement in the second quarter of last year. So the pace by which we're moving as is.
Mikaela Lee Franceschina: As you heard from Rui earlier, we're very excited that in the next 90 days, we'll be filing the first two fillers with the FDA, which will put us on the clock, which is very exciting considering we signed this agreement in the second quarter of last year. So the pace by which we're moving is very fast.
David Moatazedi: And we're also excited about the fact that we have 13,000 customers now since launch with Chabot. That gives us a significant base of Avolus customers that we can launch from, and I think you can expect that, obviously, that partnership is an important one, and it's a group of customers that we will focus on at launch. But there's an opportunity to continue to expand beyond it. We also have a significant infrastructure that provides medical education and hands-on training.
David Moatazedi: Fast.
David Moatazedi: And we're also excited about the fact that we have 13000 customers now since launch with your vote that gives us a significant base of <unk> customers that we can launch from and I think you can expect that obviously that partnership is an important one and it's a group of customers that we will focus on at launch, but there is enough to continue to.
David Moatazedi: Expand beyond it we also have a significant infrastructure that we provide medical education.
David Moatazedi: Hands on training that team is capable of supporting not just neurotoxins, but fillers as well in addition to our <unk> co branded program, which is designed today for Hugo but it was also built from the outset to absorb more than one product.
David Moatazedi: That team is capable of supporting not just neurotoxins but fillers as well, in addition to our Avolus co-branded program, which is designed today for Chabot. So we expect that the entire platform will benefit from the addition of the filler, which gives us a more comprehensive offering for our customers that are purchasing toxins and fillers, in addition to the consumers, which we know a large number of consumers that are currently in our toxin loyalty program will benefit from adding on a filler. So we see a lot of opportunities for these two to intersect, see how we go about doing it, and something we'll share as we get closer to launch.
David Moatazedi: And that carries all the way through to our digital infrastructure, which was designed with the intention of the company building out a portfolio in aesthetics and so we expect that the entire platform will benefit from the addition of the filler which gives us a more comprehensive offering for our customers that are purchasing.
David Moatazedi: Toxins and fillers in addition to the consumers, which we know a large number of consumers that are currently in our toxin loyalty program will benefit from adding on a filler. So we see a lot of opportunities for these two to intersect. The how we go about doing it if something will share as we get closer to launch.
David Moatazedi: Okay.
Speaker Change: Thank you.
David Moatazedi: And thank you for all your questions. At this time, I would like to turn the call back over to David Moatazedi, President and Chief Executive Officer, for a closing comment.
David Moatazedi: And 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 Moatazedi: Thank you. The results of the first quarter reaffirmed the unique difference Evolus brings to the market as a cash-pay focused performance beauty company. Our continued strength in execution, above-market performance, and building momentum will enable us to continue to outpace the market. We remain laser focused on product performance and consumer and customer centricity. As we evolve from a single product aesthetics company to a multi-product performance beauty innovator, our journey towards profitability, slated for the fourth quarter of this year, marks a significant milestone in our trajectory, underscoring our financial excellence and operating discipline.
David Moatazedi: Thank you the results of the first quarter reaffirm the unique difference avalere brings to the market as a cash pay focused performance beauty company.
David Moatazedi: Our continued strength in execution above market performance and building momentum will enable us to continue to outpace the market.
David Moatazedi: We remain laser focused on product performance and consumer and customer Centricity.
David Moatazedi: As we evolved from a single product aesthetic company to a multi product performance beauty innovator.
David Moatazedi: Our journey towards profitability slated for the fourth quarter of this year marks a significant milestone in our trajectory underscoring our financial excellence and operating discipline.
David Moatazedi: As we navigate the competitive landscape within aesthetics, we are consistently gaining market share and setting Evolus apart. Our long-term goal remains clear: to achieve at least $700 million in revenue by 2028. With a strong balance sheet, a differentiated product portfolio, solid infrastructure, and sustainable competitive advantage, we've demonstrated the effectiveness of our business model, and I'm confident that we're well-positioned to deliver growth and value for our shareholders for years to come. We look forward to keeping you apprised of our progress as the year unfolds. Thank you for joining us today.
David Moatazedi: As we navigate the competitive landscape within aesthetics, we are consistently gaining market share and setting us apart.
David Moatazedi: Our long term goal remains clear to achieve at least $700 million in revenue by 2028.
David Moatazedi: With a strong balance sheet, a differentiated product portfolio solid infrastructure and sustainable competitive advantage. We've demonstrated the effectiveness of our business model and I'm confident that we're well positioned to deliver growth and value for our shareholders for years to come we look forward to keeping you apprised of our progress as the year.
David Moatazedi: [noise] unfolds, thank you for joining us today.
Operator: Thank you, and this concludes today's call. You may now disconnect your lines.
Speaker Change: Thank you and this concludes today's call you may now disconnect your lines.
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