Evolus, Inc. (NASDAQ:EOLS) Q4 2023 Earnings Call Transcript

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Unidentified Analyst: Good morning. This is Sha [ph] on for Balaji. Thanks for taking our question. It has been two quarters even changed its pricing strategy on DAXXIFY. Have you seen any impacts on the growth uptake of Jeuveau? And how do you expect market shares to change DAXXIFY price being similar to Botox now? Thank you.

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 full quarter that you saw that competitor in the market with new pricing, and you saw the growth that we deliver 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 prior competitors and applies to new competitors coming in. 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 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 from the ground up for that younger generation of millennials. Everything from our text-based loyalty program to the co-branded media to the way we advertise and communicate with 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. 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 change 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 we’ll continue to see really strong execution from them.

Unidentified Analyst: Thank you.

Operator: 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 closing comments. David?

David Moatazedi: Thank you. As we look out over the next 18 months, we’ve built the infrastructure to deliver on Evolysse’s 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 Estyme 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. We expect to outpace our competitors with a strong beauty brand, proven products, digital infrastructure and 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 cash-pay focused aesthetics company. Finally, next week, we will participate in both the Leerink and Barclays Conferences in Miami. We look forward to seeing you all there. Thank you for joining us today.

Operator: Thank you. And this concludes. We reached the end of the call. You may now disconnect your lines. This concludes today’s conference. Thank you.

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