Revance Therapeutics, Inc. (NASDAQ:RVNC) Q4 2022 Earnings Call Transcript

Page 8 of 12

Dustin Sjuts: Yes. Thanks, Mark. And if we look back at kind of the hiring we’ve had to do in the past, right? Two years ago, we were hiring a large sales force for a new product, a dermal filler in the middle of COVID without kind of a track record for success commercial execution. So a new entrant into the market. We’re successfully able to hire that and recruit the individuals that were able to deliver outstanding results the past two years. And now we’re in a very different situation with the approval of DAXXIFY, the progression of our services strategy alongside the success of RHA. We have been very, very pleased with the talent that is coming in for the kind of the hiring both for the managers as well as the hiring events for the sales force.

We’ve been excited about those that have had experience in the space as well as those outside that are encouraged about the opportunity we have in front of us. And from a compensation perspective, we are at market rates. We haven’t had to as you mentioned significantly increase of package based off of the environment. We obviously have competitive rates with the market. So I don’t know, Mark, if you want to turn it over to Toby on the OpEx side?

Mark Foley: Yes. Toby?

Toby Schilke: Sure thing. You know what, as we talked about during the prepared remarks, our non-GAAP OpEx was $267 million for 2022, and that was in line with the mid-point of our guidance range of $260 million to $280 million for 2022. If there is any additional compensation for the sales reps, it’s earned compensation for over delivery on their commissions. So we feel pretty good about the guidance we gave and the delivery and when we exceeded our GAAP OpEx that was related to the non-cash charges that we talked about in the prepared remarks.

Mark Foley: Yes. And I mean, Balaji, as it relates to this year versus last year, we’ve got obviously therapeutic that we’re starting to ramp up for. We’ve got some supply chain investments that we’re making. We’ve got the biosimilar to BOTOX, and so we have a number of initiatives that are outside of the standard normal aesthetics operating model. But we think those are the right investments to be making at this point. We feel we’re in a very good cash position to launch DAXXIFY and have the right priorities. But those are some of the things that are driving, and certainly sales force expansion is adding to that, but it’s some of those other factors that are driving increased spend.

Balaji Prasad: Thank you, all.

Mark Foley: Sure.

Operator: Tim Lugo with William Blair, your line is open.

Lachlan Hanbury-Brown: Hey guys, this is Lachlan on for Tim. Thanks for taking the question. I guess I was wondering if you could just elaborate on the Q4 numbers and was that purely just the sales to the 400 accounts in Q4. Were there any one-time events that added to that? Just trying to think about setting my expectation for a sort of a run rate heading into early 2023. And then may have missed this in the prepared remarks, but can you just talk about the plans for hiring the therapeutic sort of field team and when you would expect to be doing that and how big it is?

Page 8 of 12