Good morning! Welcome to our twenty twenty-four Investor Day. It was just five years ago, we were here in New York for our first Investor Day, presenting Evolus. And as you all know, we're the first company to enter this space dedicated to cash pay aesthetics. And when we first designed the company, we designed it purpose-built, with a digital platform, a different go-to-market strategy. It's incredible, five years later, we're a brand now that has been the fastest growing brand in our category for four consecutive years, based on our performance year to date.
And it's really exciting, as today, we're going to unfold what the design of this company is that has enabled us to deliver these results. We're raising the bar in aesthetics, and today we're gonna talk to you about what defines performance beauty. It's a new category.
We're shifting away from medical aesthetics into where the consumer is going, which is the beauty space. We're also now within twelve months of U.S. FDA approval of Evolysse, our dermal filler. Rui will walk you through the clinical data that we submitted to the FDA, and you'll hear a little bit more about where we see this launch going from the commercial team.
We've also received a lot of questions around our outlook to 2028. Not only will we unpack the $700 million, but we also see tremendous efficiency with the launch of Evolysse and synergy in our spend that enables us to guide to greater than 20% non-GAAP operating income in 2028. And then lastly, Sandra will walk you through how we see there are multiple ways to win.
$700 million is our base case, and we see a lot of opportunity for this company to continue to outperform as we look out beyond. But it starts with our view that this category is transitioning from pharma to beauty. If you look here in this Venn diagram, on the left-hand side, the pharma category is a $1.5 trillion category. The beauty space is equal in size. Medical aesthetics sits right in the center, and it's transitioning because the consumer is viewing this category differently than her parents did. She's viewing it as part of a beauty procedure.
And you can see here, medical aesthetics is a $20 billion category and very fast-growing, low penetration of the consumer base, and a tremendous opportunity for growth.
Just in the last ninety days, you've seen increased news around beauty companies taking investment positions in the medical aesthetics space. This is the beginning of a new era, where medical aesthetics companies will transition and be more beauty-focused. We designed this company five years ago from the outset against where we thought this market was going. The millennial mindset is shifting this category, and I'll paint the picture for you how they see it. This is now a part of her beauty regimen: hair, nail, skincare, makeup, and now injectables.
You look at the size of the injectable market relative to those other categories, it pales in comparison because it's still early innings. You could draw parallels between this injectable space and hair care.
When hair color first got introduced in the United States, that first generation looked at hair color no differently than the current Baby Boomers looked at injectables. They saw it as for the elite. They saw it as something that maybe they should or shouldn't do. Should they spend on this procedure? Over several generations, today in the United States, over 70% of women get their hair colored, and on average, they're spending more on their hair color than they will spend on injectables. What's interesting is, today, you could get your Jeuveau treatment faster than you can get your nails done in the U.S.
Accessibility has made this procedure far more accepted, with over 30,000 clinics offering injectables now in the United States. It's affordable. The average treatment is about $500 per procedure.
You could see here the penetration as they get younger, significantly rising. The group under forty years of age, 16% of those consumers will get treated with an injectable in this time period. So you could see it's almost tripled over the Baby Boomer generation. This trend is not slowing. It's gonna continue to rise as aesthetics and injectables becomes a part of that beauty regimen. So what we did differently with Evolus is we designed the company around an experience. The Evolus experience is about making that beauty experience delightful and achievable for the consumer.
So how do we do it? If you look on the left-hand side, it started with this focus around cash pay aesthetics, free from reimbursement, with the full latitude to operate in a way that helps build value around these practices.
In the end, these practices are the gatekeeper to the consumer, and by closely partnering with them, we can help unlock this market. As you can see here, whether it's on the video web or if you're in this room, we're a design-centric company. We look at every aspect of this organization through one lens, and you'll see that brought to life today by the marketing team. Everything from our digital platform, to the way we approach the consumer, to the way we engage with practic es, it's all with a design mentality. And our culture enables that. I'm really proud of the culture that we've built, and it's grounded in four key pillars.
The first is impact. We know without results, we don't grow, and so we're very much impact-focused. But in order to enable that impact, we're also transparent, and that's the second dimension to our culture....
Transparency is everything from pricing to the way we communicate with our customers. It's something that's been absent in the pharma world, and by bringing transparency forward, we've been able to build trust with our customers. The third pillar to our culture is fun. This brand, this company, aesthetics, people are coming in to get treated because they want to look as good on the outside as they feel on the inside. And by bringing fun and energy into this category, we're transforming the way that companies can be perceived in this space, unlike pharma. And then lastly, it's grit.
We're a company that five years ago, when we entered, we were challenged. We were challenged on many levels, not just commercially, and this team overcame all those challenges to become the fastest-growing brand in the space.
We're proud that we've achieved over 13% market share in the U.S. in just five short years in the category. What does that all mean? How do we do it? When we designed this company, we said we have to have the highest quality products in the space, and so we put Jeuveau head-to-head against the market-leading product in Phase III head-to-head studies. To date, we're the only brand to take on the market leader in phase III trials. We're doing the same thing with our filler, Evolysse. We're putting it head-to-head against a market-leading filler. It starts with proven science.
The precision of Jeuveau is something that we push out in the market, and we educate practices on to differentiate our brand. The same will apply with Evolysse. We're the first to introduce hyaluronic acid manufactured under cold temperatures.
It preserves the natural HA. It's proven science, it's the next generation of technology, and that is what these customers want: high-performance products with data that supports that. You put that along with superior marketing programs, and what you see is an outsized presence in our performance. In our digital platforms, as you'll learn today, enable us to scale, and I'm really excited for you to see, for the first time, that we're going to unveil what's behind our digital infrastructure.
It's something that we've held tightly for a significant number of years now, and we're excited to share with you what powers this company that enables us to differentiate ourselves further at scale, so let me bring it to life. At its core, we have differentiated products. In the U.S., it's Jeuveau and Evolysse.
Internationally, we're now in seven markets, the key seven markets that will represent 80% of the market opportunity. You all will hear from Sandra that we expect our international business to achieve $100 million in 2028 on the back of these seven key markets. The brands that will drive those results are Nuceiva, which we've launched, as well as the Esthème line, which we expect to have approval for at the end of this year. That, in combination with our cash pay focus. Cash pay is not about just pricing, it's about the value proposition of this customer in co-branded media, in advertising.
We've done over 10,000 campaigns for practices all around the country to help build our brand in partnership with their practice. That is where this is going.
Co-promotions with relevant brands like Golden Goose, that enable us to continue to scale our business in a way that make us relevant. And then lastly, and most importantly, our key pillar is medical education. It starts with our medical affairs clinicians. We have a team that's in the field, training practices on how to optimize their results with Jeuveau, the difference in the precision profile. That team, this year alone, that's employed by Evolus, will train over 7,000 inj ectors around the United States. That, in combination with a highly efficient and effective sales force across the country, and unique ways of educating, like our Evolus bus. It will travel around the country and do cadaver lab trainings in that bus.
This year alone, we'll go into over one hundred markets, train over one thousand injectors on that bus, but it also brings the overall Evolus experience to life, and we do consumer events around that program. You'll hear more about that from Tomoko, and today, I'm pleased to announce we are launching Evolus Academy. It's our first promotional-focused education platform that will enable us to double our education reach next year with the launch of Evolysse fro m roughly seven thousand to over fourteen thousand training programs as we introduce the next line of technology.
So we're proud of is, one, we can focus on excellence and execution, and we also have a lens to the business over the long term. If you look on the left-hand side here, we're a business that's growing over 30% in our fifth consecutive year.
The growth is not slowing with Jeuveau or Nuceiva, and we see a tremendous amount of opportunity in the market. We're globally expanding into the top seven markets that we expect to achieve over $100 million in 2028. Today we're announcing that with the filler filed in June, we now expect that launch to occur within the next twelve months. As we look out, and you look in 2028, we'll be operating in a $10 billion market in aesthetics, and we expect to achieve $700 million. We think that's the right base to start from, and we'll walk you through why we believe that we can significantly outperform.
Now, as a company, we started guiding just a couple of years ago.
In 2022 was the first year we started guiding, and you can see here by quarter how we've performed relative to our guidance. We've consistently either raised or confirmed our guidance, and we pride ourselves on, as a management team, on our ability to execute and our ability to continue to deliver on what we commit to, and we achieve, and our goal is to continue to outperform. But it's 12 consecutive quarters of at least 30% growth. And so I'm really pleased today for you to meet the management team, many of which don't spend so much time with you all as investors.
Starting with left to right, Josué Bimon , who heads up our digital. He's helped build that framework, and we'll talk through exactly how that operates.
Sandra Beaver, who will come up and talk about our outlook and profitability, our CFO. Rui Avelar, I'll introduce in just a moment. He's gonna come up and talk about Evolysse as well as Jeuveau and the data we've generated. Tomoko, who's our Chief Marketing Officer and helping us build the brand. Coming from the beauty space, she has a view on ho
w we build a durable brand here with Jeuveau and carry that over to Evolysse. And then lastly, Kurt Knab will be coming up here with a few customers, bringing to life how our cash pay strategy unfolds around each practice. In the end, what makes our business unique is we've designed this so we can scale around each practice individually, and you're seeing that now reflected in our results.
I'm really excited to introduce to the stage Rui Avelar, to walk you through the toxin and filler.
Thank you. So what I'm gonna do is I'm gonna walk you through Jeuveau and Evolysse, our new filler, and then after which, I have, an esteemed panel that's gonna join me, and we're gonna do a little bit of Q&A. So as David shared with you, we're really grounded in this concept of performance beauty. And at the heart of it, from an R&D perspective, that means whatever product we bring in has to meet a standard, and we strive to hit the standard of as good as the market leader, if not better. So how do you execute on that? Well, our first example was Jeuveau.
We licensed this technology from Daewoo, and they had a product called Nabota at that time.
When we took over the clinical and regulatory and all the responsibilities for registration in those major bodies, we changed a lot of things. We had to, to meet the standards that we wanted for Jeuveau. We had a new building built. We changed the specifications, how to make it. We introduced things like in-process controls, and even the manufacturing steps, some of the critical ones we changed. We went from freeze-drying to vacuum drying. Why is that important? When you look at a toxin, it's a delicate amino acid structure, over 1,500 amino acids.
When you freeze-dry, by definition, you create ice crystals, and these crystals can denature or damage that protein. So in order to compensate for that, you have to add additional protein at the beginning of the process to get that 100 units of activity at the end of the process.
Some of that protein in that vial can be damaged. It doesn't work. When you move to vacuum drying, by definition, you have no ice crystal formation, so you don't get that damage from the ice. That translates into what you start off with is actually what you come out with, and that is part of our Hi-Pure technology that helps guarantee a very high product at the end of the process. David also alluded to this, where we believe in transparency. That's one of our tenets. When we went through the FDA process, we had three phase III studies. One of them was actually against the market leader.
No one had done that. In our submission to the FDA, published here, we went head-to-head against the market leader.
We knew that we were the fourth entrant into the U.S. market, and the inevitable question was, well, how do you perform against the market leader? So again, in the spirit of transparency, we did the phase III study, and we were willing to see what the results were. How did it turn out? Well, Botox came out when we look at the primary endpoint responder rates at 82.8%. We came out at 87.2%. When you read this publication, every single data point is there. There are actually 30. Some of them are validated, things like glabellar line scales by investigator assessment. There's also by patient assessment.
You'll find aesthetic scales in there. You'll see subject satisfaction.
There are thirty data endpoints there, and if you count all of them, although it never reaches statistical significance, it's interesting to note that twenty-six out of those thirty endpoints, numerically, are in favor of Jeuveau. Very consistent with what we saw here in the primary endpoint. From an adverse event perspective, really no difference between the two, and there were no serious adverse events in either one of them. Another way to look at relative potency is looking at males. When you look at these studies, the majority of the patients are females. Males are a challenging population.
They have more muscle mass. So in the context of phase III study, you're only allowed twenty units. And we hear that males, you know, the onset is slower, the peak is lower, doesn't last as long. Again, because they have more muscle mass, they're more difficult to treat.
When you do these phase III studies, you're only allowed 20 units. So it's a really good way to compare the relative potency of these two products. So when we look at the data, again, the thing I'll note to you is these populations in males, it's a smaller number. 90% of the patients are female when they come into these studies, so none of this ever hits the level of statistical significance, but the results are interesting. If you look at day two, Jeuveau has a reputation of a very fast onset.
And just from an efficacy perspective, when you talk about onset, more than 50% of patients need to be a responder, and it's understood that you're speaking about a validated endpoint.
Here, you can see that by day two, Jeuveau actually has onset over 50% using a validated scale, a one-point glabellar line improvement as judged by the investigator. You can see what the responder rates are like over time, and it's interesting to look at the number of responders at 5 months. Market leader comes in at 19%, Jeuveau comes in at more than double, at 40%. Now, those are scales or numbers, you know, severe, moderate. Patients actually don't care about that. What th
ey care about is, you know, how do I look? How do I feel? The entire experience. So this subject satisfaction ends up being a really important thing.
Again, both products, very high scores, but it's very interesting to note that numerically, Jeuveau always seems to do a little bit better and very consistent with the entire data set that I just shared with you earlier. When we came into the market, one of the opportunities we saw was the millennials, and David shared with you that we are very millennial-focused, and it's a great way to help expand this under-penetrated market. Much to our surprise, we couldn't find a publication that actually asked the questions: how do these toxins work in that younger population?
So what we did was we took all our phase three studies and did a post-hoc analysis to be able to pool that number of that typical older patient that is well-known for using the toxin, and this a lot younger millennial generation, by the way, is now approaching 40 and represents the largest cohort in the sales in the workforce right now. What did we find? The first thing we looked at are validated scales, looking at glabellar lines at maximum frown. What we find is Jeuveau works really well in that older population. What happened with the millennials? They did even better.
We actually saw 100% scores, and we actually saw statistical significance in the points. We shouldn't be surprised by this. Millennials, their skin quality is different.
We know that the neuromuscular end plate, where the drug actually goes in, seems to be a little bit better. We know that with age, toxin efficacy can drop a little bit, so this was expected. Then we asked a question that's a little different. What about global aesthetic improvement? Again, forget about the scale if it's severe or moderate. When you look in the mirror aesthetically, are you much improved, improved, or no change, worse? When that older patient looks in the mirror, they clearly really like their outcome, and you can see the values here. But what about the millennial? No one had ever asked that question.
You know, when you ask a millennial to opine upon themselves, and how do you think about that aesthetic benefit? Will the result actually meet the expectations of the millennial? We had no idea. What did we find?
Much to our surprise, Jeuveau actually had these scores. We actually hit 100% values and statistical significance in multiple points. Customer's always right. That question of subject satisfaction is so holistic. It's so all-encompassing. It has to do with the product, the experience, the value. It's an all-encompassing. Again, we know that that older patient is really satisfied with toxin treatment, which is why this market is growing at the pace it is. What happens wh
en you ask the millennial that same broad question? Once again, will we actually meet their expectations? The answer was an overwhelming yes. Again, with 100% scores at certain time points, and we actually saw statistical significance. Longer-duration toxins. This was a concept that was brought out, and we've been sitting back and watching this development.
We saw a few companies demonstrate that when you double the amount of toxin used, you can actually get up to 24 weeks of duration, so we've watched this as an opportunity, and we decided we would do a phase two study to actually investigate and see how Jeuveau would behave when you actually double that length. This was a P hase II , multicenter, double-blind, randomized study. We used 40 units of, we'll call it extra-strength Jeuveau, and we compared it to two products, Jeuveau and, Botox, at the on-label dose of 20 units to see what happens.
You got treated at time zero, and you were followed for an entire year. Results? When you use Jeuveau extra strength, you get 26 weeks of duration, and you could see that controls behaved just as they have historically.
You see statistical significance between the 40 units and the control, both by p-value and the hazard ratios. That study has now just recently been published. Fillers. We are very excited about HA fillers, and we think there's a bright future. What you're seeing here are three companies that arguably control 90% of that filler market. The interesting thing is, if you look at approvals in the major areas of around the world, it's been almost a decade since a new technology has been introduced. We think it's actually a really good time to introduce a new technology.
Symatese came up with a very innovative technology that we're calling Cold Technology for a next-generation filler, and we think that dovetails really nicely with our Jeuveau. Let me take a step back and kind of introduce you to the concept of HA fillers.
These are liquids, these are gels, and we're asking these gels to do pretty amazing things. These gels need to be strong enough that they can come into a tissue and lift it, correct defects. Yet they need to be soft enough that when you put it in the face and you animate, or speak, or contort your face, that you don't see a foreign body there. Yet, they need to be cohesive enough that they don't spread all over the place when you either squeeze them or move your lips around. The magic behind those properties all start with the core of the manufacturing. They use hyaluronic acid.
This is a long-chain polysaccharide molecule that Mother Nature invented, and maintaining that length and that natural length of that polysaccharide, HA chain, is really what we do with this Cold Technology.
We just believe that the Cold Technology does a really good job of preserving that natural length during the manufacturing process. Let me explain that a little further. That is one strand of wool, long, complex. That one strand has loft. It has certain properties to it. It'll bounce. I can pat it, it'll bounce back. It's also highly cohesive. Now, if I took that one strand and subjected it to something that caused fragmentation, caused breaks in it, you would see that some of the loft would be lost, some of those properties would be lost, and certainly, the cohesive properties would be changed.
Let me show you another device. It's called a pillow. It has a certain firmness to it, certain hardness to it. That's called a G prime. It has these properties to it. I could deform it, yet it can come back.
How do we do that? Well, if you open it up and look closely, you have these long, complex fibrils. Interestingly enough, when you look at HA in a desiccated form before you hydrate it, not dissimilar to how that looks. Preserving that length matters. This is our product, Evolysse Form. You can see how cohesive it is as it comes out. You'll notice that if you want, you can actually stack it. It also has those rebound properties, and you can do all sorts of things, and they remain cohesive. That is the magic behind HA.
Now, if I come to this simplistic diagram, what I'm saying is this: when you take these long strands of HA, they're kind of insoluble. To create properties, you cross-link them with a small molecule called BDDE. Now, this little crosslinker has what's called two epoxide rings and very reactive.
The way you do this cross-linking to bring these gels to life, to create hardness and all these different things, is you activate that BDDE to cross-link these molecules and bring them together. You have to bring the pH up to a very high, harsh environment. We're talking a pH of twelve, thirteen, and when you take it up into those basic kind of environments, it's very, very hard on the gel, and the HA wants to fragment in that hostile environment.
Then you throw in the element of heat, such as room temperature here, or even worse, going to a hundred degrees Fahrenheit, where it's quite commonly done, then that just accelerates that degeneration. What Symatese figured out was how to do that cross-linking reaction at near-freezing temperatures, zero to six degrees Celsius. They took all that thermal energy out of the system.
So, schematically, you can imagine if you can preserve that HA structure. You actually need less crosslinkers. You can actually imagine if I were to squeeze those two structures, the one under cold probably is gonna be more resilient, and you would get a more efficient lift with those properties. Okay, that's the technology story. What about data to prove any of this? Well, the first data set was this one that we saw. Looking at G prime. When you look at a gel, they all h
ave a different form of hardness when you squeeze it. Like, think about jelly or jam or peanut butter. When you press down, there's a certain firmness to it. That's what we're measuring here. Then, when you take the gels and you thermally cycle them, put them through these heat abuse with, like, high temperatures, that's very stressful on the gels.
You bring it back, and you retest how much of that hardness is lost. What we found was that the Evolysse line stood up really well to that abuse as compared to the others. Another way of looking at it is actually compressing and shearing the gel. Think about it. If you have a product in the midface, you're on a pillow, sleeping, or if it's in your lips, you're going to shear, compress, stretch. This is a really relevant one. Here we see Evolysse Form compared to a comparable NLF product, a market leader. What you can see is the G prime, where it starts off, and as you compress and shear, the G prime starts to fall off.
I'll draw your attention to something. Look at where this product starts to break down, and look at where the Evolysse Form starts to break down.
This is not on a linear scale. The difference is so profound we have to illustrate it on a logarithmic scale. The other thing that I'll point out to you is G prime. A lot of us who've been in the industry have been sensitized, that that number is very important. It is. Sometimes you want a higher number. Sometimes it's a crutch. If you know your product is going to break down quickly, then you have to compensate by having a higher G prime at the beginning because you know it's
going to break down. That could be a pitfall. So if you're going to put a product, for instance, in the nasolabial fold, where you're very animated, do you really want a hard product there? Because when you speak, you may be able to see it.
So when you have a product that you know can endure this kind of stress, you can actually modulate the hardness of the gel to what you actually need for that given indication... What about clinical data? Well, this line, Esthème, as it's known in Europe, Evolysse in North America, is actually going under review right now in Europe. This is the primary endpoint of the Evolysse Form compared to the Restylane product in Europe, which is a comparable there. Non-inferiority trial, 45 patients, split face, so each patient is their own control.
What I'm gonna do is, I'm gonna walk you through how to interpret non-inferiority results per the FDA guidance. This is actually how they show you. People come in with severity of nasolabial folds, they're gonna have a degree of improvement.
And what we're looking at is the difference between the two products. So you can see that the delta, the difference between the two products, is in favor of Evolysse Form. They had more correction. This is the upper confidence interval, and this is the non-inferiority margin. If this confidence interval crosses non-inferiority, it fails to meet the definition of non-inferiority. If the upper confidence interval does not cross, it passes non-inferiority. When you draw it out, you g
et much more richer information also. If the results straddle zero, that's statistical equivalence, and if the results are to this side of zero, that's actually statistical superiority. So when we look at the results, clearly it passes non-inferiority. And here's another interesting thing. When we look at the volumes, you can see it's pretty similar. Both studies received the same amount of product.
Yet when you look at the degree of correction over time, despite similar volumes, you notice there always seems to be a little bit more correction with the Esthème product. In fact, it hits statistical superiority at three and six months. In the US, we repeated those studies on a larger scale. This is a Class III device, and this data was just submitted to the FDA recently. We have Evolysse Smooth, which is a softer product. The concentration is a little different, and Evolysse Form, which is a little bit more robust, has a little bit more lift, different concentration, and we compared it to a market leader in the NLF space.
140 patients, split face, so you've got control on one side of your face, and on the other side, you either got smooth or lift.
Primary endpoint at six months, and this study went on for one year, non-inferiority design. Results. When you look at the mean change in nasolabial severity, and this is by looking an independent photographic panel. So panels just looked at photographs. They had no idea what they're looking at. What we see is the difference was in favor of Evolyss
e, and the results show both non-inferiority and statistical superiority. Also, the p-values further support statistical superiority between the two. If we look at the volumes injected, once again, pretty similar. Yet when we looked at degree of improvement over time, as you saw previously, despite similar volumes, there always seems to be a little bit more correction, kind of more gel efficiency with the Evolysse line, and it actually hits statistical superiority at every single time point. Smooth, softer product.
So we were wondering. I wonder how this will compare. Results, once again, non-inferiority, very clear. Clearly passes non-inferiority and also demonstrated statistical superiority by confidence intervals and also by p-value of point zero two. The thing that was really interesting is that Smooth had 20% less volume injected in this trial. And if you look at the results over time, we saw the same pattern, despite 20% less volume. Numerically, there always seemed to be a little bit more correction, actually hitting statistical superiority at six and nine months.
Adverse events, both products did really well. We really don't see any differences. There were no serious adverse events, and if we look at the kind of adverse events, it's what you'd expect when you use a needle to put in a little bit of a foreign body.
Last thing I'm going to show you is a lip trial. Now, I really want to highlight that this is not a head-to-head trial. Rather, we're looking at the historical data from Restylane Kysse to give you some context of what these numbers mean. But it is the same scale, it's the same protocol, essentially, so there are parallels here. What we found was, if we look at the volumes injected, you'll notice that Restylane Kysse used 30% more volume than the Evolysse lip product, yet there always seems to be a little bit more correction.
And interestingly, when we think about duration, particularly in the lips, where there's a lot of animation, the gels have to be soft, and they can break down quicker. You could see where Kysse is at six months.
It took twice as long for the Evolysse lip product to get there, so the duration profile seems to be very favorable. Now, at this very time, the pivotal study in the United States being conducted, we're enrolling. We're about half patients enrolled right now as we speak. So in summary, Form and Smooth are two very versatile products, which strategically is great as a first product to be brought out. They can be used in wrinkles and folds, such as nasolabial folds, so it's a good testing ground. That was submitted, and we expect to get approval within the next twelve months.
The Sculpt products is a premium product, goes into the midface. It does that, that kind of midface thing, like, kind of like other products that you know.
That is fully enrolled, and the last patient will be out within six months, and then we're submitting that PMA, and that's on track for launch in 2026. Lips end up being a very nice complement to the fillers that we have, specific indication, and we know there's a lot of interest in the field for that. Again, this is full, enrolling currently. We expect this approval in 2027, and then eyes is an interesting opportunity.
It's a niche opportunity right now, so we're sitting back and evaluating it, and we're watching as healthcare providers work their way through how they wanna use it and where that market's going, so in summary, here's our technology story. It's really simple. Mother Nature created this brilliant molecule called HA, and Cold Technology just does a really good job of preserving that natural structure. That is the backbone of this.
With that flexibility, we're able to create an array of gels that can meet the indications, specifications that you need. Different tissue needs different properties, so we're able to modulate this technology and create these gels for the different needs. The midface, you need something harder that can lift. That nasolabial fold, it's tricky. You've got to lift it, yet it's got to be really soft 'cause you don't wanna see it. The lips, it has to be really soft. It has to be able to conform to the lips. It's got to last, and then we can modulate all these different parameters to create those gels.
We can play with elastic modulus, how hard it is, how hydrated or unhydrated it is, so these are the levers that we pull. And ultimately, we want a natural correction.
Some gels have a lot of fragments in it, so you have to overcorrect. You correct a little over because you know over the next six weeks, you're gonna lose some of the correction. Those fragments will go away. Some gels swell, so you have to undercorrect 'cause you know over the course of the next few weeks, they may swell a little bit. What we strive for, and what we seem to have gotten, was a gel that's balanced and meets the tissue needs. Correct to the correction you need. You don't have to overcompensate, you don't have to undercompensate. So here's a lineup. Jeuveau, I've walked you through it.
We have the original Jeuveau that's out in the market now. For those who are interested in longer duration, we just published the phase two data, so that's in the public domain.
There's no need to take that any further at this point in time. So we don't have any intention of doing further studies there. Just walked you through the US platform, and Europe is closer than you think. All five indications, in Europe we're actually gonna get perioral smooth lines. That will be approved this following quarter, so we'll have those approved by the end of the year for our launch. So with that, what I'd like to do is welcome up our esteemed panel members. So as they come up, Ivana Percec is a plastic surgeon from Pennsylvania, who is an esteemed researcher.
She's prolific publisher, and interestingly enough, she was a non-Jeuveau user and did some really interesting work. Dr. Steve Dayan is a facial plastic surgeon from Chicago. Well-known also, world... They're all esteemed, well-known worldwide. And interestingly enough, Dr.
Dr. Dayan was one of the original investigators in with Jeuveau. Dr. Michael Kaminer, dermatologist, cosmetic surgeon. Everyone knows him also. I think between these, they have studied absolutely every toxin and just about every filler known to mankind. With that, we have a wealth of knowledge here. I'm gonna kick it off. Dr. Percec, you did something that was very bold. You did research independently, and I'd love you to share your story in terms of what you did, why you did it, and what you found.
Absolutely. So thank you for having me today, and I'm really excited to speak about this journey because I think it is unusual, and they call me the unicorn, in that I trained, I've been Ivy League trained, I've been a professor at Penn for a long time, but what I really do as a surgeon scientist is test the rigor of the aesthetic surgical market, and surgical includes injectables and other products.
As these two markets veer towards centrality between beauty and medical aesthetics, what I want to do is make sure that we maintain the rigor of education, both for our residents as well as the rest of the public, but also the scientific rigor of the products, because while these are consumers, they're still patients. So I dedicated a lot of my clinical research career to the precision metrics of scientific aesthetic products.
So when Jeuveau came out, I wanted to use it in the office, but COVID hit, and Penn lost a lot of medical managers, so we were on a moratorium for having new products. But I wanted to test the quality and the rigor of Jeuveau, and I had previously done a head-to-head trial of the other three products several years prior, which won a lot of accolades because we used precision metrics, really to study the scales by measuring facial strain in a very precise way. So I wanted to compare the four products, the three other market products, as well as Jeuveau, and in a double-blinded way.
I floated the study to all the companies. I used all the other three products in my practice already, so I was familiar with them, but I had never used Jeuveau.
I floated the study to all the companies, and only Rui and Evolus accepted it as an investigator-initiated grant. So they had no control over the study in terms of design or execution or even analysis. I had never touched Jeuveau prior to this study. It was large scale, 140 patients, double-blinded. So I had no idea what I was injecting. The patients had no idea what they were receiving, and we took it out to six months, and what we found was amazing: faster onset, longer duration, better patient-reported outcomes.
This is under review now for a publication, and it's been presented, and it will be presented at our most esteemed scientific meetings. So to me, that's what got me to use Jeuveau.
So once we finally had approval for using it in the practice, I was doing it in a blinded fashion to the patients because I think that as a physician, I select what the patients should get. And so I converted a lot of my other toxin patients to Jeuveau just out of curiosity. Does this really replicate in real practice what the study showed? And that was absolutely true. And so now I use it in clinical practice, but I have the scientific data to support it.
And what I'd also like to say is, I have worked, as many of us have, with other companies, and I am very impressed with the quality of the recruitment of all the members that you've seen today.
David, Rui, Courtney, Lisa, they have really recruited the top-notch people from all the other competitors, and they're really dedicated to the scientific integrity, to the marketing integrity, as you've seen, and they're really committed to supporting the products and the patients. So thank you.
Thank you. Appreciate it. David spent some time talking about the business. You know, I just went over kind of sterile clinical data, but at the end of the day, you're all business owners and practice medicine. Dr. Dayan, you're also in a unique. Unlike Dr. Percec, who never used the product, you, you've actually used the product and running a business, and I, I'd love to hear your perspective, in particular, as how it aligns to some of the things that David was highlighting.
Great question, Rui. I think it's really important. I'm in a bit of a unique position because I'm the medical director of the largest aesthetic platform in North America. We have 40 practices, and we have over 150 providers and 80 physicians. So we command a lot of product in our practice, and we try to all align on what we like doing, and we share our best practices. Right now, Jeuveau is becoming our go-to product for many reasons. In this business, it's very much a retail business. What I mean by that, retail business, is relationships are important, and we have a lot of places to choose.
We're not just insurance-driven, and we're not driven by how many prescriptions we write, but we're driven by what we like and the companies we like working with and what the patients prefer.
David and the Evolus team is fantastic at coming at my practice from two levels. One, they come from, from the below. What I mean by that is they come at it from the consumer. They go direct to consumer, but also my staff, my nurses, my PAs, my front desk, they all love Jeuveau because they're appealing to them. At my level, they come to us and say, "Okay, this is a better business opportunity for you." And they partnered with us. We did a campaign with them end of twenty twenty-two, where we did billboards, and we did commercials on TV.
Prior to that, we were spending about $32,000 a month or $32,000 a quarter on Jeuveau. After that campaign, we went to an average of $116,000 a quarter for the next six quarters.
I was blown away, and I went back and looked at the data. Now, my team is preferring to go towards Jeuveau when a patient comes in and asks for a product. Now, there's some muscle memory there, and we kind of have to convert people over because patients come in, they may say another product, but that's changed, especially with the new generation that's no longer brand loyal, and there's six toxins on the market, so they can have a choice, and now it's Je uveau.
But, Rui, if you'll let me, I want to say one more thing, and I think that this is something that we're all overlooking, and we don't even realize the tsunami that's about to hit aesthetics. That tsunami is something called GLP-1 agonist. This is soon to be a $100 billion drug.
70% of Americans are overweight or obese. One out of eight Americans have now tried or are on a GLP-1 agonist. These patients are not only losing weight, 20% body weight, and it's affecting their aesthetics, but it's mood-altering. Their mood is better. Guess what? These patients are flooding my clinic now, saying, "I need something. I want to look better." As a surgeon, it's great because I get to do surgery, but they're certainly asking for fillers. Cold Technology is coming, and I'm really excited about what this is going to bring to our market.
It's going to change the culture, it's going to change the economy, and it's certainly going to change aesthetics.
Perfect segue. I, Dr. Dayan, is actually the one who did the original reveal at that primary endpoint that I just shared with you, the smooth and lift, and so, as the original presenter, I don't know if you... I'd love to hear any color commentary on what you found from a data set or from your experience in the clinical trials looking at-
With the Evolysse Form.
Yeah, I meant Evolysse Form.
So I was in the clinical trial early on, and I had witnessed the product in Europe, so I was pretty familiar with it before it came to the US. What I was most excited about, when I treat the patients, and it was a comparator. We had one side with one and the other side, it's a different brand. It definitely went a longer way, and you had mentioned 20% more volume. 20% less volume was used with similar results, if not better.
There's a huge benefit to that, and the way I can explain that to you is that when a patient comes in, and they say, "Doctor, I want to look better," and I know I have one product that's for sure going to make them look better because it's...
I have enough product to make them happy. The other one, you know, I'm probably going to need to do more, and the patient is not going to be happy. The patient says, "Doctor, I just want one vial," or, "I can't afford this." I know that I'm going to be able to give them a superior result with this one vial because this product goes a long way, and its satisfaction plays out. The satisfaction was much better. At a year, it was still there. So it was just starting to wane, but the patient satisfaction was much higher.
So for me, as a clinician, I'm looking at this. I'm like, "What is going to make my patient happiest?" And it's the one that's going to last the longest, and it's going to give the best result. And this, this did it.
And as far as AEs or adverse events, there was none that I can think of that was any different than anything else. So it seems to be a product that I think will do very well in the marketplace when it's launched, especially with the way you guys do it, and the marketing is just far superior with Evolus than any of the other ones.
Thank you. Dr. Kaminer. Dr. Kaminer is actually the principal investigator for both the Smooth and Form study. He's also the principal investigator for that upcoming product, Sculpt, for the midface, and he's been an advisor for a number of groups, including Symatese, in the development. So, I mean, Dr. Kaminer has been there from almost the beginning. I'd love your insights, your... You know, there's a lot of NLF products. You know, is there anything unique about this product? Do we need another one, and how do you think about it when we talk about versatility?
Thanks for throwing me a softball there, Rui. I-
... I think that this filler product is probably, maybe by far, the best product on the market that we have seen, not in a long time, ever. It is just a better product. And I say that only because when I started early on, before Evolus owned this product, I worked with a different major company. We worked with Symatese, I heard the science, and the skeptic in me was just like, I think many of us would be, was like, "There's already so many fillers on the market. Sure, I'll do the study, but it's gonna be a me, too." I'm still kind of surprised at how much different this product is.
The data shows it, but when you bring color to what the data shows, before you even inject that product, it makes you a better injector.
You are literally a better injector just holding it in your hand because it can do things that some of the other products can't. For example, the smooth product is probably the only product on the market... I think it is the only product on the market, and we can chat about it, that you can inject subdermally and intradermally, and these are subtleties to the way that we would inject that an impact outcomes, without creating any long-term side effects, but also having maintained efficacy. Many products are subdermal products. Other products are intradermal products.
The smooth product, you can put it wherever you want, so your one syringe thing is like a home run with this product. So not only can you use less, but it looks better, and then it lasts longer.
So you can use less, lasts longer, and your one-to-one correction comment is spot on, right? If you make somebody look good, a lot of times they'll come back a month or two later, and you're like: Oh, I might think of doing a little bit more here or tweaking that a little bit. These patients look exactly the way they looked when they walked out of your office a month later, six months later. I saw a patient just two days ago, actually yesterday, in follow-up for the cheek study, and she had been treated 18 months ago, and she was thrilled with her results.
These products really have duration. I'm surprisingly thrilled with what these can do, and they are different.
When they hit the market, I think it's gonna take a lot of energy to have people realize that these are different. And because they're so much different, people are gonna pay attention. People like us are gonna stand on podiums and say, "I know this is another filler, but you gotta sort of pay attention. You gotta try it because it behaves differently." And I think that's where we already are.
Can I add something to that, Rui?
Mm-hmm.
Because a lot of times with these fillers, And, Mike, I'm sure you guys see this, and Ivana sees this as well, is that a year, eighteen months later, they start to have this unusual look to them that, like, the filler just doesn't look like it did when you put it in. And I've noticed that with other products, that maybe it's too hydrophilic, it draws too much water, and the face looks a little bit unusual, so I may try to reverse some of it. But with this product, you don't see that at all. Like, eighteen months later, it still looks like it did at one month or two months. So did you notice that, too?
Yeah, definitely. And I think what ends up happening is this comment about being a better injector, right? Not only can you do something that looks better 'cause you did it, but then I think it gives us more opportunity, right? So if they come back in a year and they look a little better than they do with other products, or maybe a lot better, then you can look at them and say, "Hey, wow, you know, now maybe I can do a little bit of this.
" Instead of having to kind of chase your tail every eight to 12 to 18 months and just keep them looking a certain way, they kind of get the long-term benefit, and you can sort of get a little bit more creative. You can do a few more things. And I really think that this, the...
We've done a lot of clinical trials in our practice, dozens, over twenty-plus years. And every so often, a product pops. Like, you do the trial, and you're like: Whoa! That's kind of different. That's not just me doing research to make a living. That's kind of different. And this is one of those times.
Yeah, and your staff realizes it, too. They come back to you and say, "Wow, that was a really good product.
Yeah, yeah. Exactly.
I agree, and I think one of the things that you mentioned, the GLP-1 agonist, and you see these faces, right? The deflation, the loss of volume, the wrinkles that form when you lose that volume, and you also hear the phrase filler fatigue, right? And so those are things that we're all concerned about, both from the marketplace, from the medical space. This product, the Evolysse properties that you saw, where there's not that steep drop-off in the volume and in the correction, where it's more linear, that's going to address those two areas of concerns, right?
The filler fatigue is when these patients come in, they get their faces injected, they look full, and then a few months later, it's deflated. They look deflated. They have that really sharp cutoff, and they're unhappy.
And it's not just all the other properties that really are causing that. It's that you're putting the face and the tissues under a lot of strain by constantly expanding and shrinking, and we see this in surgical concerns. But these filler properties, by maintaining that consistency, is going to avoid that filler fatigue, and it's going to provide those GLP-1 agonist patients who've deflated and lost that volume, that consistent correction over the course of time.
Well, maybe I can just ask that a little further. Obviously, this is a financial community, and one thing that we see is biostimulators of high interest, and, obviously, we have high interest and continue to have interest in biostimulators and skin quality as an organization. So we have our eye on that. They're of interest because they have the... If you look at it as a percentage of growth, it's very high. Now, it's off a much smaller revenue base. And one of the questions is, what is the future of HA? We'll hear stories, filler fatigue, and what is the destiny of HAs? And, if I can start with you, Dr. Percec.
Sure.
Like, what's your perspective on HAs?
So they're very different. Biostimulators work in certain areas and provide certain properties, but fillers are much more predictable, they're much more precise. So you're not going to use a biostimulator in the lips. You're not going to necessarily get the structure in the jawline or in the temples. You need to have both, in my opinion. Biostimulators are also not predictable. They provide a gradual onset of results, and they don't work in all patients. They work really well in some patients, but not all. So I think that we're not going to see the end of HA fillers.
I think they're going to consistently grow, especially as they develop better properties.
... Dr. Dayan ?
Yeah, I just want to add to what she had mentioned, what Ivana mentioned. Not only are we not going to see the end, I think we're going to see the growth of it, especially with the GLP-1 agonist, because the patients are coming in with their faces that are really atrophied, and they need something. And if I said to them, "Okay, well, don't worry, I'm going to put in a biostimulator. I'm going to give you three treatments over the next six months. You're going to see some improvement. It's going to be gradual." They're like: "No, I want to look good this weekend!" And I have to put something into them.
So if I put an HA into them, I'm going to give them immediate improvement, and they're going to walk out the door and be like: "Oh, my gosh, thank you so much. I think I look fantastic." So I think you're going to see an explosion in HAs over the next six months to a year.
Dr. Kaminer, your view on HAs long term?
Yeah. Our HA business keeps growing, and... You know, I... My other hat that I wear is I run a big dermatology practice in which we treat tens of thousands of patients a year. And our filler business, which HAs is the overwhelming majority of it, continues to grow. And there's only room for more growth. I think these GLP-1 agonists are going to make things better. But also, people realize that, you know, if you watch TV and you see lousy filler done, you never want to have filler done.
That's right.
But you look at some of your friends, and they look great, and you don't know why they look great. Well, that's filler. And so I think as people start to have these conversations, and you show data about these millennials, they're realizing that properly done fillers, right? And so to do fillers properly, you need proper fillers. And the fillers that are on the market are great, but these products are better. And so it's going to allow us to do more natural-looking fillers, which is going to make people feel better about the results. Combined with market demand, I mean, there is so much room for growth.
I think the other thing that's going to happen is as people get a sense of what these fillers do... And again, the Evolus fillers are different. They're the same, which makes them marketable, right?
You don't have to tell a new story other than cold, and people don't have to learn a new skill, but they're different, so they're better. But now, people who haven't used Jeuveau are going to pay attention to Jeuveau because they're absolutely going to pay attention to Evolus. Some might not use it like we would think, but they're going to pay attention to Jeuveau because Evolus is going to be right in front of them, and it's better. So I think this whole market is going to start to move in a positive direction. Fillers, fillers may drive it more than toxins in the end because we can do more.
If you think back to how we did fillers twenty years ago.
Oh, my gosh!
All we did was we put it here, and we said, "Oh, my God, you look great. Come back in a year." And people are like, "That's it?" That's-
That was collagen, too.
Yeah.
You remember that?
Now we're filling all over the face. We're doing temples. We're doing the back of the jawline. We're doing the chin. We're doing all these things. There's more to be done, and it's all filler. All filler. I think that's a huge market.
The amount of providers is just growing exponentially, which also brings up the point, is training. Like, I'm a stickler for good training, and I think we can always benefit from better training, and I do appreciate that you do that with your cadaver labs. It makes a big difference, I think, in the outcomes that providers get.
Uh-
Absolutely. The quality of the training that Evolus provides to new injectors, to experienced injectors, is, by far the most excellent. With the anatomy labs, I've never seen anything as profound as that.
Well, thank you. We invest heavily, continue to invest heavily. Obviously, we want to contribute back into this community to help build it, so we understand good outcomes is good for everyone. It's good for HCPs and patients. I guess, kind of on the last question. You know, our first two products to come out, at least here, are going to be Smooth and Form. And you know, if you look at the indication, it'll say wrinkles and folds, such as nasolabial folds, and we position them as very versatile products. And I'll start with Dr. Kaminer.
Your perspective on, you know, if those are two products, how would you comment on versatility? Yes, no, or any comments that you could share.
Oh, yeah, it's going to be interesting too, because in the clinical trial, we were limited to only treat the nasolabial fold. But you know, I mean, especially when you do the nasolabial fold, we were given a little bit of leeway, so we were able to treat a little bit lower on the face, where there's a little bit more motion. So you not only have this stress of shear strain, but there's a little bit more cosmetically sensitive. These products are going to perform well in kind of off-label locations. Smooth is going to be great around the mouth. It's going to do really nicely for lip lines, radial cheek lines, which can be a little bit tricky to treat.
We'll have something better. I think, Form will do nicely in the cheek while we wait for Sculpt to get approved.
So I think these products will sort of radiate out from the nasolabial fold and be incredibly versatile, incredibly useful. We'll learn how they're sort of optimized, and I think they're going to teach us some new tricks.
Great. And then maybe just one more, just kind of the health of this. Ivana, I don't know if you want to make any broader comments in terms of how you think this marketplace or any closing comments you may have.
I think, we've all heard that the marketplace is growing, right? Patients want this. Everybody wants the marketplace to go bigger, because there's a huge demand, and I think the important part of all of this is to support the safety, the science, the rigor of the products, as Evolus has been, and the education of injectors.
Because the worst thing we can do is have poorly trained injectors with poor outcomes, which will not only be detrimental to the public, but also to the marketplace overall, so I think the fact that there's excellence from Evolus on every single front, on products, on science, on education, and the quality of the people they bring into the company, really speaks for itself, and I can't be more positive about it.
Great. Dr. Adnan, you're center stage. You get the last-
Yeah
... closing comment.
One thing I want to emphasize is the relationship that the team, David and team here, has created with not just the consumer. They reach the consumer very well with this marketing. You can see it out the doors. They reach the CEO of my business company, who's not a medicine guy, who's a businessman, who runs a large platform, and he's like: "I really want to work with that team. I really want to work with Evolus." Then you have us as providers, and they give us training, and we feel good about that.
Then they get- they go to my, my nurses and my PAs and my injectors and my front desk, and they appeal to them as well. So we have a company here that's appealing to all levels within my practice. No other company does that right now.
I was talking to Kelly a little bit earlier, like, they flatten the distance. They flatten the distance between them and the consumer. They flatten the distance between them and my provider. They flatten the distance between me, as a physician, and they've also flattened the distance with our CEO of our large platform. So they found a way to get to all of us and to appeal to us all in a unique way so that we all feel favorable about the product and about the company. So I think that's something that we should really take value in and appreciate.
Great. Thank you so much for joining me.
Thank you.
I really appreciate it. Thank you very much. With that, it gives me great pleasure to introduce you to one of our new members of the organization, our Chief Marketing Officer, Tomoko. Thank you. Tomoko.
Good morning. I'm so excited to be here with all of you today. I joined Evolus about a year ago from one of the largest global beauty companies, leading their skincare marketing initiatives. And what attracted me to Evolus is this remarkable opportunity that the company is creating by carving this unique path in the growing aesthetics industry by the only performance beauty company. And our cash pay model allows us to interact with our customers, whom we're referrin g to as providers, and consumers in such a differentiated way, delivering unique values that no other aesthetics companies can replicate.
And as David mentioned earlier, we put Evolus experience at the center of everything that we do, and marketing has a key role in delivering high-performance products, creating superior marketing programs, and being design-centric.
So as I see it, Evolus has five key distinctive advantages that set us apart from the competition and drive success. So first, we are a powerful beauty brand. We offer premium, high-quality products, and we have deep understanding of our consumers. We also offer highly differentiated and unique values due to a cash pay model. And last but not least, as you heard from David, Rui, and from the esteemed panels just now, we have tremendous growth opportunity with the launch of new filler.
So what makes us a powerful beauty brand? So as David mentioned earlier, we created a performance beauty company, and performance applies to the high quality, safety, innovation, and efficacy of our products and services.
Beauty means that we treat these medical and aesthetic procedures as beauty treatments, and making them accessible for our modern consumers, because that is how they interact with the medical aesthetics now. The way that we uniquely express ourselves as a company through a brand identity, embodies our brand, brand values, and allows us to stand out in the sea of sameness. At Evolus, we exist to make the beauty experience delightful and achievable, because that is what the modern consumers want.
Certainly, the beauty industry has taken notice, from Women's Wear Daily and Glossy to our top beauty and fashion publications, including Cosmopolitan and New Beauty. We also have a very strong brand identity. We intentionally took the approach of being a branded house versus being a house of brands. Our branded house model was inspired by Apple.
You know, they help create their products and position them under their very strong Apple umbrella. So similar to what they did, we created a consistent brand identity that is highly recognizable. But what's unique about Evolus is that we also created brands around our services. So, for example, Evolux is our provider-facing loyalty program that is enabled by a cash pay model. So Evolus Rewards is a consumer loyalty program that is the only text-based loyalty program, consumer-based loyalty program. And Club Evolus is the industry first subscription model for consumers that Jose will discuss later today.
But all of those services are built on a proprietary digital platform. And our brand codes are inspired by a top fashion luxury houses.
And the ones that they do a very good job with repetition of their codes across everything that they do, while maintaining a premium brand positioning. So we took a page from their brand playbook and reinforcing our brand codes to everything that we do, from our marketing collaterals to the packages that we deliver to our customers, to really embody our ultimate Evolus experience. And second, we offer high-quality premium products.
So our flagship product, Jeuveau, is intentionally the designed neurotoxin that is precision-enabled to ensure precise, natural-looking results our consumers are looking for. And due to this precision profile, 91% of our consumers reported high satisfaction with Jeuveau. And I can tell you, coming from the beauty industry with over 20 years of experience, this is such an incredible and impressive number, and it speaks volumes to the quality of our product, Jeuveau.
Nine out of ten consumers said they are highly likely to recommend Jeuveau to their friends and family, really driving and fueling our consumer awareness through word of mouth. We're so proud that in just five short years, Jeuveau has achieved the second-highest awareness in the neurotoxin category. We're also consumer-centric, and we recognize and seize the opportunity to capture the hearts, minds, and wallets of our millennial consumers.
The millennials represent the largest demographic group in the US, and they have this outsized influence on our society, on our culture, and in different generations because of their sheer size. The younger generation, including millennials, are at least twice as likely to adopt neurotoxin treatments like Jeuveau than any other older generations.
So millennials are the savvy shoppers who appreciate high-quality products like Jeuveau, and they're digital natives, and they really appreciate great tech and apps similar to our consumer loyalty program, Evolus Rewards. They're really highly focused on self-care, and treat their beauty regimens as part of an important self-care regimen, so we're reflecting that in our social content strategy. They're also certainly connected on social media, discovering new products and services through social, so we are leveraging our influencer marketing to increase awareness and engagement on our social platforms.
And last not but least, they love great experiences, and sometimes values them more than their sort of material belongings. So we have invested in highly experiential and exciting consumer events for this reason.
So at Evolus, we know how to engage this important generation, but it's also, we know that it's not just an age demographic. Our consumers possess such a youthful mindset that transcends age, and instead really speaks to their unapologetic desire to see on the outside how they feel on the inside. And we understand that, and we celebrate that. And our creative expression will continue to evolve to reflect that and embody that. On social media, we'll continue to evolve our content, speaking to what our audience values and speaking to their language, from self-care to elevated self-expression.
And as you know, the influencers really help brands create impact. So we've engaged mid- to macro-influencers through our live events, as well as content creation around popular beauty themes, to reinforce the messaging of Jeuveau as beauty experience.
As David spoke earlier, we do run an amazing clinical bus event, but we also leverage the bus to create this amazing consumer events for providers and consumers. As you can see here, we bring Evolus experience to life, making them all the more achievable, delightful, and fun. Because of our cash pay model, we also bring unique value proposition. Our provider loyalty program offers a customized co-branded media, a strong consumer loyalty program, and we offer transparent pricing that our providers value.
Our co-branded media delivers and gives us opportunity to market Evolus while driving new consumers to our providers. It's an ultimate win-win program, and you'll hear from their experiences, our customers' experiences, in the upcoming panel discussion.
Our consumer loyalty program, Evolus Rewards, is the only cash pay, the text-based co-branded loyalty program that not only offers instant savings to our consumers, but also they drive all of these consumers back to the same providers for their repeat treatments. And the success of our Evolus Rewards program is seen by the strong enrollment results, and we are pleased to say that we are on track to hit one million enrollments by the year-end. And last but not least, we have an exciting new growth opportunity with our new filler launch.
And as you heard earlier, Evolysse will open opportunities with us, with the new providers and consumers who have not engaged with us because we're still a single product company.
And we are strategically and methodically preparing for this launch, including very exciting building a new Evolus Academy, a new professional education platform to really attract new providers and also deepen our penetration in existing channels. So here are the product lines for Evolysse. As you heard from Rui, it includes our Form, Smooth, and Sculpt, and we will launch Form and Smooth in the U.S. in the next 12 months. And there are great synergy to be achieved. So as you can see here, 85% of aesthetics practices offer both toxin and fillers.
And not only that, almost all of our existing customers have said they're willing to try a new filler from us. From consumer synergy standpoint, too, 70% of toxin consumers use the filler, and almost 40% receive both treatments at the same time.
In addition, our investigators see the broad usage of our filler, as Rui mentioned earlier, and said that both Form and Smooth will cover 95% of HA procedures. Because we have built such robust and proven experiences for our customers and consumers, we can seamlessly integrate Evolysse in all of our marketing drivers and leverage Evolysse launch to unlock our future opportunities.
As you can see, we're very excited about our Evolysse launch. With our strong bra nding, high-performance products, and consumer-centric approach, and unique value proposition that we offer, we are well-positioned to continue our strong growth. Thank you so much. We'll take a 15-minute break, and the refreshments will be served in the terrace. Thank you.
Please take your seats. Our session is about to begin. As a courtesy to those around you, please silence your mobile devices. Please welcome to the stage Senior Vice President of Sales, Kurt Knab.
Hello! So much for the walk-up music. They just put me up here. So excited to be here with this panel. As you guys know, we have since launch, our commercial launch, about 14,000 customers that have purchased Jeuveau in those five years, and we are very fortunate to have four of those customers joining us here on stage to talk a little bit about not just the experience with Jeuveau as a product, but the experience with Evolus as a partner, as we invest in them to help not only grow their business but to grow the market.
So anxious to jump right in. Why don't we do quick intros to start? Get to the panel. We'll start with you, Gabby. Go ahead.
Hi, everyone. I'm Gabby Garritano. I'm the founder and CEO of Ject. Ject is a medical aesthetics business. About 80% of my business is injectables, and we have six locations, four in New York, one in Miami and one in LA. I'm a board-certified physician assistant in the state of New York, California and Florida, and I've been using Jeuveau since its inception.
Hi, everyone, this is Murtuza Tamim. I'm a practicing physician. I'm an owner and an injector, as well as the medical director of Hello Hydration. We're based out of New Jersey. We have multiple locations in New Jersey. I've been using Jeuveau since its inception as well, with a beautiful experience. So excited to be here.
I'm Dr. Leslie Rabach. I'm a double board-certified facial plastic surgeon here in New York. I'm in practice with my sister, who's a board-certified dermatologist. We opened our first practice in Greenwich Village eight years ago, and in the past year, we also opened up a Upper East Side location. We absolutely adore Jeuveau.
Hello, everyone. I'm Elaine Kung. I'm a board-certified dermatologist. I am the owner of Future Bright Dermatology, a solo private practice in Lower Manhattan. I've been using Jeuveau since its inception.
Great. Well, thank you again for taking time out of your busy schedules. Maybe we can start here as a baseline. Gabby, I'll start with you. I'm sure that you do in owning a practice of your size, multiple locations, you have a lot of different vendors that you do business with. Tell us a little bit about, historically, how you've interacted with those vendors. What does that relationship look like?
Yeah, so we use all pharmaceutical aesthetic brands out there. I'm sure you all are aware of some of the other competitors that Jeuveau has. And I would say more basic, working with each pharmaceutical company on training is probably... We have a very robust training program at Ject, and so I think a lot of people think about training as just hiring someone and onboarding them, but we've really utilized our pharmaceutical companies as ongoing management and training for all of our providers, and it's more of a continuous education and growth as they continue on with the company.
Dr. Rabach, anything to add?
Yeah. So my sister and I also have a couple of PAs and an aesthetician, and a lot of the other competitors, you know, sort of come in, just sort of pitching their product and wanting to sell, and we feel that, you know, we use a lot of educational processes as well for all of us. And Jeuveau definitely takes a different level.
Great. So... Oh, yeah, sure.
Kurt, can I-
Yeah, of course.
Just speak a little bit? I interact with multiple vendors, not only in the injectable world, but also in the laser energy device world, and I'll tell you how the experience is very different. So, for example, a product manager of a major laser energy device company came over to meet with me in New York from Israel, so headquarters, and I had this interaction with them where I was teaching them laser physics and laser science, and I thought, "This is not right." That never happens with the Evolus team. Everybody knows their product line-
Mm-hmm.
And know the pros and cons of their competitors. The people who, from the ground level to the VP to the C-suites, they have been in this industry for five, 10 years, so there is no, like, me teaching you.
Right.
Right? So that's the difference, whereas sometimes the vendors come in, they don't even really know what they're pitching me.
Right. Right. We won't hire them. You know, toxins as a class are extremely effective group of drugs. I mean, they all work. Dr. Rabach or Dr. Tamim, maybe you can comment on some of the individual characteristics of Jeuveau that maybe make it unique in the toxin world. We'll start maybe with Dr. Tamim.
Yeah, yeah. You know, I think it's interesting. I mean, toxin's been around for a very long time. We all know many of the brands out there. You know, with Jeuveau, I think one of the unique qualities of it, it's a precise toxin. It kicks in so quick. My patients love it. They come back again and again, asking me for Jeuveau. It's like after they get hooked on it, right? So, you know, because they're so used to trying other toxin and botulinum toxin or Botox, as a molecule, been around for so long, and so many patients on it.
And as I've tried Jeuveau on my patients, they really do appreciate the naturality of results, and that comes very much with the precision of the dose, precision of the toxin, and that is very unique to the molecule of Jeuveau.
Having experienced all the molecules out there, having launched some of the other major brands in the past as well, and even recently, as you know, I don't want to name any brands, but as recently as one year ago, being one of the top accounts to be able to launch that and experiencing all of that, comparing that to Jeuveau itself, I think it has its own unique presence of being that standard and a leader in that market.
Dr. Rabach?
Yeah. So, my sister and I, when we first started, we were, like, a top hundred account in another company. And so when Jeuveau came in, we were a little bit skeptical because all the other companies were really, like, sort of in our face, and we were loyal to them. So what we did was we didn't do any sort of major scientific study, but on ourselves and our staff, we split the forehead, and we did half, one side Jeuveau, half the other side, a different product. And we really compared on each of us which product kicked in quicker, which product looked more natural, which product lasted longer.
And it was very clear from the beginning that Jeuveau did really kick in quicker, and that it lasted at least the same amount of time, maybe a week or two longer, and so we were convinced at that point.
No, that's great. That's great. I don't know, Dr. Kung, if you had anything to add?
So I could talk about my personal experience. I inject myself whenever I have a headache. So when I wake up with, like, this migraine, then I know I'm due for an injection, and this is how quickly Jeuveau would work, is that morning I'll put a few drops, and then the headache goes away.
Wow!
Oh.
Yeah.
It's one thing for you all to know about the product and have an understanding of the science. You guys are obviously highly trained. Gabby, how do you go about educating your patients that walk in the door, the customers that walk in? I mean, there's a lot of big words that you could use. I'm sure it would go right over their head. Tell us a little bit about how that goes.
Yeah, and I also just wanted to add. I mean, thanks to your partnership with Dr. Cotofana, I think, and back to the precision on Jeuveau, I think one thing you notice when you bring a new drug to a practice. We have 22 injectors at Ject, and so they all, you know, talk about what other people are doing within the practice. And what we've seen is a huge increase in lower face adoption in our practice. And so our injectors feel confident because Jeuveau is so precise, that they're now injecting the lower face. And I think that was also in partnership with the clinical trainer that has flown to our Ject locations.
And I will say, by far, the best anatomy session in training for neurotoxins I've ever experienced.
And I think, we were always so filler-focused to get our injectors understanding the complications of filler and injecting filler that we kind of just skipped over the Botox training sometimes, or we just rushed through them. And I think it was really amazing to have a neurotoxin come to market that's just focused on wrinkle reducers, and that's 60% of my business. And now we're doing trainings with our providers, just focused on neurotoxin, and what we've seen is patients that are coming in for one or two areas of wrinkle reducers now are getting upper face, lower face, platysma. They're getting 100-plus units-
Mm-hmm.
-of neurotoxin, and as you can see, the ROI on these trainings are quite significant. So thank you.
Yeah.
In our practice, we don't necessarily go through the offerings of the neurotoxins that we offer. It's kind of like if you were to go to a primary care doctor, and you're getting an antibiotic. Usually, they don't say, "Well, I'm gonna... I'm thinking about Augmentin," or, "I'm thinking about Erythromycin," or, you know, whatever it may be. We really have the mindset of our providers are gonna pick what's best for our patients. We have a huge adoption of Jeuveau in the practice. We're using a lot of vials of Jeuveau, hundreds, thousands of vials at this point.
But we really leave it up to the hands of our injectors and the expertise that they have to decide what's the best product for our patients.
Anybody else want to comment on just even when you were introducing? Because obviously, there's another name brand out there that's almost synonymous with the actual procedure. How do you go about saying, "Well, no, we're gonna use this today," and is it all just about trust? Dr. Rabach, you were going to say something.
Yeah, I was gonna say something because I think my practice is a little bit different. It's a little bit more boutique, and so the patients really come in with lots of information, and they know about all the different brands, and they ask, like: What, what are you using? And at the beginning, some of the patients were skeptical because they know what they know. They, you know, "Why are we trying something new? Da, da, da, da, da." And I said, you know, "It's kind of like Coke and Pepsi or another cola, right?
They're sort of all the same type of thing, but the flavor is a little bit different, and there's different preferences. Everybody has, like, an opinion." I don't actually drink soda, but once a year. But I think that's, like, very relatable to people.
I said, "Listen, you know, I've tried it myself, my sister's tried it, all of our staff have tried it. We all really love it ... why don't you give it a try?" And, you know, to your point, the patient does trust us at the end, but the patients that I'm seeing definitely are a little bit more skeptical, but we were able to convert basically everybody.
Great. Can I just. I'm gonna move on, just for the sake of time. But another thing that I know consumers are really interested in is any rewards programs that are out there and offered by the different vendors. Dr. Tamim, why don't we start with you on, like, how important is that to your patients to come in? And then tell us a little bit maybe about how Evolus Rewards, patient rewards differ.
Sure. So look, at our practice, we use all the different brands of fillers, Botox. And I think, again, it is a very unique quality of Evolus and how they present, and how it enables patients to come back. Evolus has a web-based platform where patients get a text message every three months. It's a reminder for them to come back with a $40 voucher. And the beautiful thing about Evolus, and I think they do a better job than anybody else in the industry, is that this could be converted into $80, and very specific to Hello Hydration, and patients only come to Hello Hydrations.
Where very commonly, most of the brands kind of just promote them, and Evolus really changes that platform to co-brand.
Patients know that they have to come to Hello Hydration for their treatment, and they get $80 off whenever you are able to enable that, you know, voucher for them at that point. I think that is very unique because almost everybody in the industry is trying to brand them, and Evolus has taken a very different approach to co-brand us together and really bring that approach over there. Yeah, that's great.
Dr. Kung.
Right, so I was going to say that one of the beauty of Evolus, and we're talking about Jeuveau in particular, is the branding we were talking about. It was very easy for me to introduce Jeuveau to my patients because, first of all, the name, Jeuveau, rejuvenate, and then the beginning was #newtox, the new kid on the block. But with the rewards program, we're a little bit nuanced in using it. We only give it to our patients who do $500-$1,000 worth of toxin. But it's very cute.
This text message they've received from Evolus are these words like, you know, red velvet around Valentine's Day or like, pink hearts. So it has, like, a very seasonal and very like, friendly and fun-
Yeah
way of getting their rewards program and rewards. And then also, they get reminders like, "Oh, I'm due to visit Dr. Kung.
That's great. That's great. Let's. We talked a little bit at the beginning about how other companies interact and what that relationship looks like. We have some examples of unique value propositions in marketing, co-branded things that we've done with you all, and I just have a slide for each, so we'll just go through quickly and share.
It's who we are, not just, like, talk, that this is, like, a new product.
Great.
Not a one-sided thing.
Yeah.
Yeah.
No, I appreciate that. No, and I would totally agree. It is a unique approach.
And Dr. Kung?
I'm Dr. Elaine Kung, an American board-certified dermatologist, founder of Future Bright Dermatology. Frown lines are a part of life, but you can get it treated in just ten minutes. We love using Jeuveau to soften the frown lines. Something's changed, and I saw that difference. Like, I was trying to frown, and I was like, "Okay, it's gone." I combine science and artistry to give my patients the best natural-looking results. I'd like to welcome you to experience Jeuveau at Future Bright Dermatology.
And then again, the paid social.
I've done a number of different advertisement campaigns with Evolus, and that's what sets Evolus apart as a company compared to all the aesthetic companies that I've worked with. I've done two commercials, the Times Square billboard, the subway billboards, and each one of them, even though it lasted a week, a month, they forever lived on my website and my social media, the clips that we've taken for all those campaigns. I think you've seen now three different commercials with very different vibe. I have a downtown location, and I serve a wide spectrum of skin types and colors.
When I was working out the commercial with the creative team, and it's one of the best creative teams that I've encountered, I told them that I wanted to make sure that we have different ethnic groups represented in the commercial, which you sort of saw that. And then when we are targeting our commercial on streaming platforms, we have researched the zip codes that I thought would be most advantageous to what I'm looking for to expand my clientele. I'm in Lower Manhattan, and we are doing Brooklyn, that's, like, one subway stop away from my office.
We're doing Jersey, which is, like, one path stop away from my office. So it was actually yes, it's very fun for me to see all of that come to life, but there is a lot of thought process behind what we were trying to accomplish.
Yeah, and that's an important point on the geotargeting part. I mean, we're drawing specific patients from whatever is of benefit to our customer, and that's a true partnership that no one else is doing. I say, when I stand in front of a customer, we are doing something so unique and so different, it may take them a little bit to get their head around it, 'cause they're used to just seeing whatever ad on TV, and it's pushing to whatever product. We are the only company that's striving to use not only Jeuveau, but Jeuveau at a particular practice. I think that's what you guys are experiencing as well.
My director is here today.
Oh.
I saw him, and he filmed me like we were doing a movie.
That's great.
And he directed me, like-
Yeah
... you know, in a way where, like, "You're doing great, you're doing great!
Yeah, I. And to top it all off, I think Tomoko had mentioned that we are the number two brand awareness in the space. And that happened in five short years, and that happened through all the efforts that you see here. So it's beneficial not only to you all, but it's beneficial to us. And when I think of partnership, I think of... I think one of you said it, it's the true partnership, that it helps both parties.
Yeah.
I don't think every company views it that way.
No.
and I'm proud to be partnered with you all and watch your businesses grow, so thank you.
Seriously, because of what we've done together, every time I receive a text from someone of your company, I'm answering it.
Oh, there you go. Benefit.
I'm answering the email, I'm answering the text, like, what can we do together?
We'll wrap it up here on this question, and we obviously, they were introduced to the filler, and where the filler is within line of sight. Just curious of how you view that as a complementary thing to what we already offer, as you think about us launching a filler. Dr. Tamim, why don't you start?
Yeah, sure. I mean, look, when you think about toxin as a market, this is actually one of the first treatment research shows that patients try first off. You know, millennial population, everybody wants to try that. And then, when you complement that with the filler line of products that a lot of other companies have, I personally had a chance in Paris to try the products myself, to use the Evolysse lines of filler, and it was evolution, to say the least.
Again, I've launched multiple other products, and multiple other lines of fillers in the past, and to try this filler and to try how it works, I think there's already a background noise in the injectors market, where everybody's already talking about this, that it's coming, it's coming.
I think when it comes, it will be revolutionary, where patients will have these natural results, amazing results. To have the combination of toxin and filler will just be an amazing practice for us.
Any other comments on the filler? Go ahead.
I can go. I mean, we know we're at 8% penetration in the market right now with huge tailwinds behind us, and I think having another brand out there, another amazing product out there, is better for everyone and more for patient selection, and I even tell my patients, "Now we have certain fillers for certain areas of the face, and we can make it look extremely natural for you," and everyone wants a natural look and a natural aesthetic when they come into my practice, and so I think this is amazing to have more options for our providers. Our team is really excited.
Our provider that just came back from Paris is over-the-moon excited, so, we're all very excited.
Great.
As a consumer, in a way, I would like to just get everything I need in one place.
Mm-hmm.
And it's similar to any type of consumption, right? When we think about, like, anything we want, tech, I'm gonna go to the Apple store, right? So now, if I want to buy injectables in my office, I really want my one-stop shop at Evolus.
No, we're excited to provide that for you. So, with that, I'd like to thank all of you for taking time out and sharing some of your insights and experiences with the group. I will say this, as I'm about to introduce the next person: You see all those advertisements, and you see the impact that it has in the business. That type of advertising can only be done when you have a digital platform that was built from the ground up. It's very difficult to take an existing platform, unwire it, and rebuild it, and we've done exactly that by design, and there's one person who's been responsible for it.
I'd like to invite him up onto stage, to share a little bit about more about insights into our digital platform, Jose Bimon.
Good morning, everyone.
Good morning.
So I've been with Evolus since 2019. So I had the pleasure to launch the product, you know, Jeuveau, and I also the pleasure to be with the rest of the company. The digital platform that enables, like, you know, those experiences that you've actually heard about. So today is a very special day, because usually we don't get the opportunity to go behind the scenes and show you the way we've built today the platform that you see, and what's coming next. So you've heard from Rui, you know, we're bringing high-performance products to the market, but we're also extending this definition to our digital products.
We are very proud of, like, you know, the experiences we're delivering, and that's why we're building pipelines.
So today, what I'm going to share with you is the way it works and what's coming next. So let's start with the existing digital platform. The digital platform is the backbone of the Evolus experience. Since 2019, with our digital platform, we actually build connections. We've connected injectors with Jeuveau. We've actually connected injectors with consumers, and what's also very, very important is we've connected Jeuveau with consumers. We've built this ecosystem, those connections, ultimately, by focusing on value: value to patients, value to our providers, and by building those frictionless experiences.
The digital experience that I'm going to share with you, the platform, is actually modern, modular, and it's ready to scale. Scale as we're expanding our portfolio with Evolus, and as we're expanding our footprint in the U.S., as well as OUS. Very simple bento box.
I don't know if you like Japanese food, but that's a way for me to show you, like, you know, this one-stop shop approach. You've heard, like, you know, our providers, they love the programs we have. They have been telling you that it's easy, simple for them to actually perform all the tasks, all the jobs they have to deliver daily. They can purchase products in our app. They can actually manage their pricing, their status at any time in Evolux. They can actually, like, you know, manage the
patients with Evolus Rewards, and everything in a single app. Performance beauty in a palm. What's also very, very important for us is to actually be transparent. You've heard that from our CEO. So at any point in time, they have access to dashboards. You know, they can actually see how they're gonna optimize the pricing.
They can see how they can actually optimize the results of the campaigns with co-branded media. They can see how they can actually optimize patient retention. All those jobs managed in one single app, one-stop shop. So let's unlock, like, you know, each of those boxes. Let's start with ordering Jeuveau. Ordering Jeuveau is actually extremely simple in the app. They can actually enter the quantities, hundred-unit buys. They can select eventually some bundles that w e have in our app. Most of our accounts are actually multi locations.
They can select the locations where they want the orders to be shipped. They can select the day, the time, and ultimately, like, the shipping methods, rushing or not. They can pay at the end with the credit cards, like, you know, with whatever terms they want.
Ultimately, like, you know, they can see at any time the pricing and the impact on their status. Few clicks, simple, and you get order, like, you know, Jeuveau. So your question is probably going to say, "Well, this is very interesting, but is it scalable? Is it adopted by your customers today?" The answer can actually be given to you with metrics. Let's look at the app usage. What I have behind me is actually a cumulative chart showing you the app usage since 2020. Today, we have over 2.2 million app logins, making, like, you know, this product extremely utilized.
The other way to measure the adoption of this product is to look at how many users we have in our accounts.
We have 16,000 unique app users, and this number continues to grow as we're opening new accounts and as we're really seeing new features in the app. So clearly, the app is very, very adopted and very utilized by our accounts. Now, let's talk about Evolux. You've heard from the panel, you know, Evolux is our consumer, our customer loyalty program. It's actually a highly differentiated program. Unlike any other programs, we're going above and beyond pricing. With Evolux, we are reinvesting in practice growth. How? The problem is actually very simple: it's organizing tiers
The more they buy with us, the more status they unlock, and at certain status levels, they're going to have access to those benefits. Co-branded media. Let's talk about co-branded media for two seconds. Co-branded media is unique, highly innovative.
You won't find anybody in the injectable space today that is able to deliver the same services, the same campaigns to other practices. What makes it different? First of all, it's customized. You've heard that from our panel. We're taking each campaigns differently, each practices differently, and ultimately, everything that they do with us is customized to them. Secondly, I'm going to share with you in the next slide, a framework. The way we're pushing those campaigns is also very differentiated, targeted, and actually, hyper-localized. You've heard about the zip codes.
And last but not least, everything is transparent, everything is measurable. Every campaigns are going to actually be formalized with an end campaign report, where they're going to see the impact of the campaigns in terms of impressions, in terms of clicks, in terms of sign-ups, phone calls, leads, all of it.
Behind me, I have a carousel running. Not easy to follow, but this is giving you an idea of, like, the breadth of customization that we're offering to our practices. It starts by being findable online. Physician Finder... Our profiles are customized to each practices. It's also, like, you know, important for us to give them some assets that are ready to be pushed. Instagram-friendly, social media-friendly, that's what we have in our libraries. And last but not least, we're building campaigns for them, customized campaigns. Two levels of customizations, assets, and ultimately, the media mix.
So let's talk about this framework, this precise omni-channel marketing framework that we're offering to practices. Practices on their own would not be able to actually deliver this type of products at the end. What I have behind me is the CBM, the co-branding media framework that we're utilizing for any of our campaigns.
Every CBM is going to be different. If a practice wants to create awareness, you've seen billboards. If practices want actually to increase consideration, we have streaming TV, we have social media. If practices actually are more interested in converting, that's when we have banners, retargeting, and ultimately, like, search. Everything is actually customized based on the goals of the practices, and everything is actually made possible because we cash pay, another key differentiator of our business model. Probably going to ask, "This is a lot of details."
The lift is actually very important. Can you scale? These numbers are going to show you, like, you know, the numbers of campaigns, the numbers of impressions that we've been able to deliver since launch. Since 2019, we've launched 11,000 campaigns, all unique, all different.
We've started launching them in specific states at the beginning, where we had the accounts, and today we are national. We are in all 210 DMAs, you know, designated market areas of the U.S. Result-wise, the impact is there. 1.5 billion impressions delivered, which puts Jeuveau today as the number two brand awareness in the toxin market in the U.S., and it took us 5 years to do that. So we've talked about ordering, ordering made easy with the app. We've talked about, like, you know, growing the practices with Evolux, with our benefits, and more specifically, co-branded media.
Let's talk about patient retention. Let's talk about patient loyalty. This is also something that our practices can manage in the app. They can check in patients very easily. I'm going to show you, like, you know, a couple of experiences, like, you know, there.
They can actually manage, like, you know, the patients, like, returns, repeats, you know, and reward them, you know, with Evolus Rewards. Everything very simply. This program is on fire. This is the fastest-growing loyalty program in aesthetic. 60% growth year over year. Why? Why is it so, like, successful? Because actually, it's instant. You don't need to actually download anything as a consumer. Everything is SMS-enabled. Because it's actually simple to implement, like, you know, also for the practices. I showed you it's only an app, and because it's fun.
So for instance, when I was demoing, like, you know, the program, like, you know, earlier this morning, one example will be authorization. You probably are using authorization process every day, and those tools are going to give you PIN one two three. You're never going to remember that. It's kind of boring.
In our case, you're going to pick an elephant, you're going to pick up a color, and you're going to be, for the day, the pink elephant. And you've heard that from our practices, they remember it. These are fun, memorable, and sticky experiences that we're providing for both the patients and the practices. So again, results are there. What I'm showing you behind, like, you know, this graph is actually the cumulative numbers of consumers enrollment since 2020. We are approaching, as we speak, a million consumers in our Evolux database, most likely at the end of the year.
So let's summarize. We have a digital platform. It's built to scale, built with the purpose of driving value for our practices. 14,000 accounts have already engaged with us in the app.
We also have, like, you know, a very powerful Evolus Rewards program. 1 million consumers, close to, are actually getting into this experience as we speak. Should we stop? We keep actually trying to understand, like, the satisfactions of our users. We have, like, you know, ad boards, surveys, UGC, user-generated content. The rates are pretty high, four point six, four point eight. That's why we don't want to stop. We believe we can do better. We can innovate. Innovate so that we can unlock, like, you know, the opportunity of both performance beauty.
So for us, experience is key, comes at the center of every innovation. Three big blocks of innovation for us. First, increase access. You've heard from David, 30 million consumers. We have only 1 million consumers today in our database. How can we unlock, like, you know, the opportunity of millennials?
Unlock new values. You've heard from our providers, they love CBM. What else can we do to accelerate the growth? And ultimately, frictionless. Today, I'd like to actually discuss quickly with you Club Evolus. Club Evolus is one of the big innovation that we're going to bring to market. Club Evolus is the first of its kind patient membership program. For $49 a month, we're going to offer Jeuveau to patients, so that they can actually frown less and save more. Unique. No one in the toxin market, at least as a manufacturer, is offering this type of price points and membership.
So it's going to work for everybody. Why? We've actually worked for 18 months with real patients, real practices, and we've measured. We've measured, like, you know, does it increase affordability for patients?
The fact that we have transparent pricing, the fact that we actually give them, like, you know, consistent savings. The answer is yes. They're going to come back, you know, more frequently. Does it increase for practices like, you know, patient retention, frequency, and the answer is yes as well. They're going to see an increase of patient frequency and patient retention time, too, in this case, and for us, of course, because higher patient adoption, higher patient retention, higher practice retention means higher market share.
This program is unique, and based on the results of the pilot, we believe we're going to actually launch nationally in Q4. The next big innovation that we're bringing to market is going to be Evolux 2.0. You've heard from our practices there's a clear correlation between practice growth, practice value, and Evolux benefits.
They've actually shared with us that as we're reinvesting in media for them, we're bringing more patients in the practice. As we are actually giving them Evolux rewards, they actually increased in retention with the patients. Three big ideas behind Evolux 2.0. The first one is we want to increase the customization of those benefits. People love when they can build the campaigns, when they can actually build the audiences themselves, select, like, you know, the campaigns, like, you know, the placements they're going to use, such as billboards.
Customization is going to be critical for us. We also know that they're looking for new benefits. Media is working, education is coming. We're going to provide them with product education and business education.
We want to support our practices at any stage in their life cycles, whether they're starting, whether they're hiring new injectors or opening new locations, whether they're dressing up to sell. The last big idea is, with the arrival of a portfolio with Evolysse, you're going to have more ways to earn. We're going to rethink the way our practices can actually shop our benefits with Evolysse. Evolysse, I think we've touched on that already. The order flow is ready. The programs, whether it's Evolux or whether it's Evolus Rewards, we are ready to drop in those products in the system.
We actually are ready with this digital platform because we made it scalable, we made it modular to leverage this platform and launch faster the next countries. We don't have to reinvent the wheel.
If I take the example of Australia, we leverage our e-commerce capabilities. This is my last slide. Our platform is ready to scale performance beauty. We have already a very solid base in the U.S., 14,000 active accounts, closing, like, you know, to a million consumers. And we know what's going to actually drive the next big iteration in this market. We know that with connected experiences, if we unlock, like, you know, new values, if we unlock, like, you know, those friction points, we're going to go faster.
Regarding, like, you know, the increased success, I showed you our club is going to help us. I showed you how Evolus Rewards is helping us today.
Regarding, like, you know, the new values, I explained to you the way Evolux 2.0 is going to help us to grow practices faster, and the arrival of our portfolio is going just to accelerate that. With digital platforms, we're going to actually continue to deliver frictionless experiences to the market. Thank you. Now, I would like to actually bring on stage our CFO, Sandra Beaver.
Morning, everyone. I'm the Chief Financial Officer here at Evolus, Sandra Beaver, and I'm going to hopefully bring this all together and tell you what this means for our financial performance as a company. Our cash pay business model is proven. We have an efficient, purpose-built infrastructure, and the combination is delivering financial results. There are multiple ways for us to win. David brought this up earlier in his section, and I'll walk you through that a little bit more in the presentation. But just to give you a sense, in the last five years, the compounded annual growth rate of our revenue has been 50%.
It is outpacing the market by a minimum of four to five times. That has enabled us to gain a market share of 13% in those five years.
We've established the financial foundation, and we have the product portfolio that gives us a clear path to delivering at least $700 million of revenue by 2028. And with the launch of our filler line, which is incredibly synergistic to our injectables portfolio, we've now announced today that we will expand our profit margins to 20% at a minimum by 2028. We delivered profitability early this year in Q2. We will be profitable in Q4.
We will be profitable for the full year in 2025, and as that revenue builds into the portfolio that is leveraging that infrastructure, you're going to see meaningful margin expansion for this company going forward. And last, but certainly not least, we are fully funded. We exited the second quarter with $93.7 million of cash on the balance sheet.
This operating income performance is going to deliver cash and is going to enable us to pay down our debt on its maturity, and we've put ourselves in a great position to continue to build. So let me talk to you a little bit about our historical revenue. As I mentioned, we've grown at a 50% compounded annual growth rate for the past five years in a row. We've achieved 13% market share this year, in the second quarter, even earlier than we'd hoped to by the end of the year. That's reflected by the raise we had in our guidance in the second quarter from $255 million to $265 million to $260 million to $270 million.
In that achieving 2-13% market share, we've gained 2% every year for the last three years in a row. But we've done it really, really efficiently.
We've been really thoughtful about how we invest. We've grown revenue at 50%. At the same time, we only grew operating expense by 12%. That's almost five times, well over four times leverage rate on that revenue growth to operating expense growth, with really high drop-through to margin. This is enabled heavily by the infrastructure the team just walked you through. You know, Jose showed you our purpose-built digital platform. The amount of self-service that we offer to our customers is extraordinary, and that creates a really efficient operating profile.
Our CBM, that's co-branded with the practice. We're driving practice growth, but it's also earned through our Evolux program. It's funded on the back of the investments that are made by our customers in our product, and it's very action-oriented for them. Those are factors in driving this incredible efficiency.
As you can see, we've seen significant improvements in our non-GAAP operating margin. Not only have we delivered financial results, they're predictable. We know how to manage this business. We've been thoughtful about how we guide this market. We've only guided for three years. We've consistently beat or exceeded our guidance on every single measure, and we've managed to stay within our guidance in a number of years as well. You saw that reflected in David's presentation at the beginning, where he showed all the reaffirms and the beats.
We're thoughtful about how we create guidance. It is a metrics-driven approach. It is a bottoms-up thinking on how we can deliver in the business. That's what gives us that certainty, that confidence around our ability to execute on the numbers that we give to The Street. What does this all mean for our future?
How do we move forward? The market for both toxins and fillers is growing at a tremendous rate. Historically, when we launched Jeuveau, the filler and neurotoxin market combined was $3.7 billion. Today, or 2023 closing, we're using the actual year, it's $6 billion. That's a 13% CAGR over that term, that same five-year term. In the future, we expect it to be at least $10 billion by 2028. This is the TAM that we have available to us with this portfolio that we have between fillers and toxins in the geographies in which we have the license to launch the products.
That's a 10% annual CAGR on the future growth rate. The growth of the market is fueled heavily by the entrance of millennials into the category.
Tomoko walked you through the likelihood of somebody to accept these procedures, to be interested in toxins and fillers, and then our customer panel helped you see the funding and the capacity and the growth that we're seeing at the practice level that's fueled by the entrance of these new consumers into this category. That's driving this growth in the category. In fact, it's... You might even say it's slightly decelerating, but it's still an incredibly healthy market that has this opportunity to continue accelerating growth.
We are highly underpenetrated in these procedures in the consumer base, so where are we launched outside of the U.S.? As David mentioned, we expect to deliver $100 million of revenue in 2028 in our OUS markets.
We had launched initially in Canada at the same time we launched Jeuveau here in the U.S., and then we have been very strategic and thoughtful about how we have expanded outside of the U.S. into other markets. We started with the U.K. in the fourth quarter of twenty twenty-four. Just last year, we launched in Germany and Italy. At the end of the year, we also licensed the dermal filler line for the European markets. Then this year we've launched in Spain and Australia. So we're relatively early days in all of these markets.
We have this great, tremendous capacity to build off this infrastructure that we've created, and we have this capacity to really penetrate these markets further over the five-year term going out to twenty twenty-eight, which gives us this confidence on this $100 million of revenue that we're targeting.
We've prioritized the markets in our space that have the most opportunity, right? So although we're in seven markets, that's making up more than 85% of the TAM in which we have the license. So you can see here on the right, if you were to look at the geographies here, on your left side, you'd see that the components of those markets add to $1.5 billion today on a $1.8 billion market. We have the entire infrastructure we need already built. It's really just about creating scale from here on forward. We expect this market to grow to $3 billion by 2028.
That'll give us a $2.4 billion addressable space. Now, let's talk a little bit about the US, obviously, our largest market.
Jeuveau has certainly been in the market the longest at five years. The components of our market for the U.S. are a $4.2 billion market in 2023, growing to a $7 billion market by 2028. Our implied revenue for 2028 on our guide would be $600 million. It's less than 10%. We're at 13% today on the toxin, so the adoption rate we need from this filler is going to be at a discount to the performance we've already delivered on the toxin. And on the toxin, we didn't have an infrastructure that we have today. The market itself is also benefited by a number of tailwinds... We are incredibly underpenetrated.
We're in less than 50% of the accounts available in the U.S. market. We're in 14,000 of 30,000 accounts, so we can go wider.
I think as David mentioned, we can also go deeper. We have the opportunity to gain more share in the practices in which we do so. We continue to see adoption of these procedures by millennials and even younger, fueling the growth of the category. They're at least twice as likely as their predecessors to consider these procedures. Some of the panels also menti
oned the GLP-1 trend and the halo effect that we feel that's going to provide, particularly for the filler, at the time we're launching the filler into the U.S. market. What do we mean by multiple ways to win? Over here, you're going to see on the chart a matrix. We're assuming that we have $100 million of revenue in international. This is global, so it includes that $100 million that we've guided to earlier.
What are the combinations that we could have of share between toxin and filler in the U.S., and what are the potential outcomes that could create for revenue for Evolus? In the top corner, you'll see 13% and 7. 13%, that's our toxin market share today. So what market share do we need in the filler to get $700 million of revenue? The answer is 7. That's less than the market share we achieved on the toxin in the same time frame. That's also less than any analog you can find in the market of recent launches of fillers.
And as you heard from our panels, how excited they are about the entrance of this particular filler into this market, we see lots of opportunity to do better than that 7%. And as I mentioned earlier, we're very thoughtful about how we guide.
We want to be sure that we have high confidence in the numbers that we can deliver to you, and that's why you hear us repeatedly say at least $700 million of revenue by 2028. So what dimensions could you see coming out differently? If you pace across here and you pace down, the bottom corner would imply 2% share gain per year on the toxin, and it would also imply a higher adoption rate on the filler, and you get to $1 billion. Just keep in mind, that would mean that we are the number two on the toxin, and we are the number three on the filler at that time in the market.
That's a really meaningful jump from where we are, hence why we guide to $700 million.
But if you think about where we could be, that's a very meaningful possibility for us if we were to continue to exceed expectations in a meaningful way. So what does that mean in terms of the market? I'm going to go to the other side of the page. I stood in front of it for a reason. Trying to keep your eyes focused. These are the penetrations that Evolus would have at each of those varying levels in each of the markets in which we operate. So we have our $3 billion international market, and you can see that would be our share. Our $2.5 billion U.S. filler market.
The bottom of these, both the toxin and the filler, this is your $700 million level. This is your $1 billion up here.
Not a meaningful difference in share, but it gives you a sense of the opportunity that we have in front of us, the ability to deliver these numbers, and the capacity to potentially over-deliver. But how are we going to do it efficiently? How are we going to be thoughtful about how we invest to deliver this growth? We've spent a good part of today walking you through the infrastructure that we have built. It is unique, it is custom, it is purposeful, but it is also incredibly efficient.
We have an injectable sales force that's one of the leanest, meanest sales forces out there on the market that creates tremendous relationships with our customers and has enabled us to be in a base of fourteen thousand out of thirty thousand accounts. We can go wider, we can go deeper. We have a custom-built digital infrastructure.
It is frictionless, it is efficient, it creates a ability for our customers to self-serve in a really thoughtful way, and Jose walked you through some of those really key components of self-service. They can enact their own CBM. They can create their Evolus Rewards relationship with their consumers. They can purchase, they can pay, they can do all of it online, and it's purpose-built for them. We are very focused on training. The importance of training and the adoption of these procedures should not be underestimated.
The investments that we will make in the filler will really be heavily focused on training, and you've certainly heard from our panelists the value that they see in the training programs that Evolus offers and the quality that we offer in those programs, and our ability to do it in a differentiated way. We have the bus, we have in person.
It is very efficient. Our consumer loyalty program, incredibly low friction, text-based, easy to use, fun. You heard a lot about how it was fun today, fun code words and really easy interaction with the consumer. We are in all the international markets we need to be in to deliver our long-term guidance. We do not need to launch in another market, which means we do not need to invest in an infrastructure in another market. We have all the infrastructure we need globally to deliver these numbers. We have a uniquely tailored, incredibly efficient co-branded media program.
Again, you buy into this program, you get access to this opportunity, but it's also co-branded, which is incredibly important. It's a call to action to the consumer to go to the practice. It drives value for the practice in terms of growing their customer base and bringing in new patients.
It is all structured in a way that we can just literally drop the filler in the bag. It uses this exact same infrastructure, and they are ready for this product. That drives our ability to continue to expand operating margin and our confidence around our ability to deliver at least 20% margin by 2028. So on $700 million of revenue, you'd have $140 million of operating income. We'll see that pacing through the years. As I mentioned, we expect to be profitable in 2025. You'll really see the inflection point around operating margin in 2026.
There will be a period of investment in 2025 associated with the launch of the fillers, notably around Evolus Academy, on sampling of the product.
As I mentioned, we are thoughtful when we give guidance, so we are confident in our ability, with the continued outperformance of our toxin, to more than fully fund all of these investments and to deliver a successful launch of the Evolysse line of fillers. And then you will see that as we expand in 2026 and that revenue really grows, there really isn't any meaningful incremental investment after 2025. Our infrastructure really scales thoughtfully with revenue and in a very efficient way. That gives us that confidence on that 20% number.
So now let me turn a little bit to our balance sheet and give you a sense of how we manage our cash and how we think about capital investments.
We are confident, with that margin that I just showed you, we will generate enough operating cash to fully fund the repayment of our debt on its natural maturity. This shows you here what that natural maturity looks like. So it's $42 million in 2026, and it's $83 million in 2027. We will generate more cash from operations than those numbers, and we will have the capacity to fully pay down our own debt. This is evidenced by our starting position, right? We're at $93.7 million of cash. We're in a confident space in terms of where we stand with the strength of our balance sheet.
We've delivered profitability already in Q2. We'll deliver it again in Q4 and for the full year, 2025. That puts us on a very clear path to cash generation and to debt repayment. But we'll still invest.
Capital allocation is a high priority for us, and we are incredibly thoughtful about it. We are incredibly disciplined about it. We are driving growth in a profitable way, and you saw that in our historical results as we move towards that profitability number, and you can see that in the guidance that we've given you for the future. When we think about expanding our operations, when we think about investing in the growth of the company, we do it in an incredibly efficient manner. Jose showed you Club Evolus. He talked to you about the pilot that we did for Club Evolus.
He gave you some of the metrics for Club Evolus.
That is a testament to the philosophy we have as a company on driving ROI with every investment that we make, about learning and being thoughtful about where we choose to place our bets, and to make sure that we're doing it in a way that is balanced with growth and investment. We're obviously conscious of our debt and the ability to pay down our debt. We're looking at interest expense always. We'll look for any opportunistic moment to be thoughtful about how we manage that cost in a thoughtful and efficient way, and we'll monitor the capital markets, and then we've talked a little about biostimulators.
You heard it from panels, you heard it from David, you heard it from Rui. We think about BD. What do we think about opportunities to expand the portfolio?
We've got a case study here in what we've done with Symatese. It was an incredibly efficient deal, right? We had very low upfront funds that we had to put in place in order to secure those licenses in the U.S. and in Europe. The revenue opportunity is meaningful. This is an incredibly durable product. It's a durable brand. It complements Jeuveau. It is high quality, and it is differentiated. We'll see synergy from this, right? It drops right in the bag. We're not going to just bring something in to bring something in.
We're going to bring in the right assets at the right times that are the right complements to the portfolio we have, and we're going to do it in a capital-efficient way when we do. So what does that all mean when you bring it all together?
Evolus has the financial profile and relative performance in the market. You've seen how we've outpaced the market to create a compelling investment opportunity for this company. We're going to be in a $10 billion market. It's $6 billion today. It's going to grow by $4 billion over this five-year term. We're going to continue to outpace the market in our growth of revenue. We're projecting a 28% revenue CAGR, coming off the back of a 50% revenue CAGR. It's still going to be multiples above where the market's going to perform. Profitability. We've been profitable.
We've shown you we can deliver profitability, and we're going to deliver this revenue in an incredibly efficient way, and we are fully funded. We're confident we have the capacity, with everything we have today, to repay our debt.
All of these things are enabled by the infrastructure we have, by the thoughtful selections that we've made in our portfolio to get access to a fast and growing TAM, to be able to outpace the market because the way we go to meet our customers is different, and we've walked you through that all today so you can get a look, feel, touch of what different means, what different looks like, how co-branded media engages, how our digital platform is creating a unique experience for our customers. We are going about this in a different way.
We are defining performance beauty, and customers appreciate it. That's how you get that revenue, and the way that we define how we invest is how you deliver that profitability. How does that 28% stack up?
Healthcare category is growing at around 4%, if you look at a sort of proxy of companies there. Beauty, around 6%. The intersection of those things in the Venn diagram you saw at the beginning of this presentation would be medical aesthetics, significantly outpacing either one of those markets, right at the intersection of beauty and healthcare. You get this unique opportunity for accelerated growth, but we're beating that.
We're still well above the industry standard in medical aesthetics for growth rates, and we have unlocked that opportunity with our new portfolio and the way that we go about approaching our customers. And with that, I will turn you back to our CEO, David Moatazedi.
...Wow! We covered a lot of ground in just a few hours. First off, I just wanna say thank you. Thank you to our presenters, the team, who's obviously delivered these results. I think you can sense that we're very passionate about what we're building. This isn't a company operating in medical aesthetics. This is a company carving an entirely new category that we've defined as performance beauty. We think we're on the precipice of greatness, where the category is going, and we've built the infrastructure to do that, and it's really exciting to see. I also want to thank our panelists.
It takes a lot to come up here in front of investors and to present, and it's incredibly reassuring that we're on the right path. It comes down to trust and forming these relationships with these practices over time.
And our value system of transparency, impact, bringing fun to the game, and grit are the key ingredients that it's gonna take for us to continue to be successful in a competitive market. You also see that we are uniquely positioned for success in this $10 billion market. Not only our continued execution with Jeuveau, our expansion internationally, but importantly, the filler unlocks incredible potential for us in partnering with these practices and growing this market. So we have proven high performance products, incredibly high patient satisfaction.
This market has a tremendous amount of potential going forward, and our positioning as a beauty treatment will enable us to capitalize on it.
You heard from the team that our digital platform, that we've been developing now well over five years, not only has it delivered a frictionless experience today, but the pipeline in that platform complements a pipeline in our R&D portfolio. Together, they create incredible value for the coming years as we continue to introduce new products in this market and achieve revenue of at least $700 million in 2028. We're also really excited to be doing that in such a capital-efficient way, as Sandra pointed out, that we're gonna achieve profitability in the fourth quarter of this year.
We'll be there in profitability for the full year, next year, and beyond to continue to pay down the debt. So it's a really exciting time for Evolus. I appreciate you all taking the time.
I'd like to invite the panelists or the speakers back up to the stage for a Q&A.
All right, everyone, welcome to the Q&A portion of our Investor Day. I'm Nareg Sagherian, Vice President of Investor Relations and Corporate Communications at Evolus, and I'll be moderating our discussion. We're excited to have our presenters, which you saw earlier today, to address any of your questions, following their presentations. We'll take questions live from those here in attendance, and for our guests that are on the webcast, just please use the link or the QR code to submit your questions. So let's begin with our first question from the audience.
Just raise your hand, and we'll have mic runners come to you.
Hi, thank you. Annabel Samimy from Stifel. So I want to direct this to the physicians and also, I guess, to you, Sandra. But so you mentioned muscle memory when it comes to adopting new toxins, and I would argue that the fillers probably require a little bit more muscle memory. And so I guess the question is: What is the receptivity to new fillers in the marketplace, you know, as you're approaching a new product? And Sandra, you mentioned that the filler projection was 7%, which is a little bit lower than where the toxins were.
So is that factoring in that, you know, larger muscle memory or that maybe that larger hurdle to adoption for fillers? But with a digital platform, could you potentially exceed that since you're dropping it into a very efficient platform?
So there's a few questions there, but just wanna understand, the flavor of what it's like to launch a new filler in the marketplace versus a toxin, and then how that- your platform can change that.
I can start with the muscle memory. I think when you heard that, it was, metaphorical, somewhat. In the context of a toxin, when you inject it, it's a liquid. They actually all inject the same. Basically, they have the consistency of water. I think it was a metaphor to you're used to the performance of that toxin. We all know that all the toxins have their own attributes. They, they all behave differently. You know, we happen to have one that has a very fast onset, for example, and it seems to be very prec ise in terms of field of effect. So that's its characteristics.
When you get into the realm of fillers, your question becomes really important. Their muscle memory does become the way it injects, the way it extrudes, just how smooth it is.
Is it kind of a little chunky as it goes in? What you do, that's where muscle memory really comes in. If you canvass somebody who uses a filler, when you go to a new filler, you really want hands-on experience. You want to feel how it injects. You want to see how it behaves in tissues. And what that means is you have to have an infrastructure that actually can address it from a training perspective. And as you heard from David... Our group, you know, for medical affairs, isn't your typical medical affairs group, such as an MSL, medical science liaison.
Rather, everyone in medical affairs actually has a clinical background. They've all treated patients, they have all injected.
We spend and invest heavily in creating an environment where they can learn and actually have first-hand experience, such as using a filler and injecting cadavers, so you actually get the feel for the filler from muscle memory perspective, and you can see how it actually reacts with tissue.
The only other comment I'd add before I turn it over to Sandra is that keep in mind, in the US, there's three families of fillers that represent 90% of use of HAs. Very similar to when we entered the US in the neurotoxin market, there were three existing approved neurotoxins. So we see these markets in a very similar position, but as a company, we're in a very different place. We have nearly 14,000 customers when we launch the Evolysse product, and of course, the robust database that we talked about earlier.
So we think the market is ripe for a new player, and I know that Dr. Kaminer is raising his hand. He wanted to give us a thumbs up on that comment. And maybe a comment from there. Let me let Sandra comment, and then Dr. Kaminer, if he wants to add to that.
Yeah, so the purpose of that chart, Annabel, was really to give you a sense of there are multiple ways for us to deliver. You know, twenty twenty-eight is a bit of a ways out, and the filler launch has yet to embark, which will be next year, right? We could see more than 7%, we could see a little less than 7%, but we need minimal to no share gain on toxin to get to a place where we're at least $700 million. So we've set $700 million as a floor, and we wanted to give you the components that drive why that's a floor, right?
Why there is so much upside opportunity from that number, so that you have a comfort that there are combinations of share between toxin and filler that meaningfully exceed the $700 million we've put out there as a guide. But we're not in a place where we're ready to peg a specific, you know, number for 2028 on where we'll be in filler. We'll certainly get a lot more color on that as we go through the launch. And much like the toxin, there will be an adoption curve, right? There is a need for injectors to get the product in their hand to really work with the product, to use it on patients' family, as they do with the toxin.
And as we've mentioned, we'll be investing very heavily in training, right?
That's gonna be a critical component in ensuring that we are very successful at coming up that adoption curve, that we are giving physicians every opportunity to get this product in their hands, and that we're giving them the ability to try it with their patients, so that they can get the same confidence that our panelists just showed you today that they have with the performance of Evolysse.
Just, just to quickly adjust the muscle memory point. When toxins were introduced, the muscle memory was also on the part of the patients, and they would come in, and they would say, "I kinda want Botox," 'cause that's the brand that we all know, and that has changed over time. Fillers don't have that same headwind. There isn't a dominant brand that we have to muscle memory fight.
There are so many that are out there, that the transition to a new filler, I think, will be more seamless because the patients kind of trust us to pick the right one. They don't come in knowing what they want, whereas with toxins, we had a little bit of that hurdle. I actually think that with fillers, that's either a lesser hurdle or almost potentially non-existent.
Hmm. Thank you.
Thank you, Dr. Kaminer.
Thank you.
Yeah. Another question from online. You noted that your growth rate over the past five years has far outpaced the market, and that you have already achieved a 13% share. What are your assumptions for market share in toxins between now and 2028?
Yeah, so similar to the question from Annabel, in the sense of what do we think about filler, right? We need very minimal share gain on the toxin to deliver our long-range guidance of $700 million. Right, we have lots of opportunities to exceed that, but we're very, very thoughtful when we give a long-term guide about giving ourselves that capacity to ensure that we've got the right investment profile, right opportunity to deliver that floor for all of you, and giving you that confidence that that $700 million truly is a floor.
I do think there's opportunity for us to continue to gain meaningful share in the toxin, but we're really thoughtful and prudent about it when we build a guidance.
Question in the audience?
Doug Tsao from H.C. Wainwright. I guess I have a couple questions. First, as you know, David and Sandra, you highlighted sort of over the last few years, your ability to sort of meet and even actually come at the upper end of guidance, and then the last couple of years, very nicely, sort of exceed expectations, which is a little unusual. Typically, you know, you see people beat expectations widely in the beginning stages of the launch, and as it matures, you sort of start to dial in and fall into the range.
I'm just curious, what were the dynamics over the last couple of years where you saw upside, that really let you have that performance above your initial expectations in the marketplace? And then I have a follow-up.
Yeah. Doug, that's a great question. What we saw that once we came out of COVID, and we resolved the litigation, we became very focused. And I think during trying times, you really look inward, and you determine what your real value system is. And we looked at our culture first, and we said: What do we stand for? We had invested, during that time, heavily in our digital platform, and we had innovation to bring to the market. And through that, and a combination of precision, Rui built a team that was going into practices and building up practice confidence in how to deliver great result with Jeuveau.
And that's the exact reason why you're seeing something very different with this product and its trajectory than you generally see with launches.
This product is still rising at a very fast clip in its fifth year, and it's because the confidence from our team in communicating the product benefits, the scalability of the benefits we give practices, and then inherently from that, the noise it's generating in the market as a result of that, the word of mouth from the community of injectors, the community of different specialties, is continuing to rise positively in our favor, and I think we wanna stay true to what's brought value here. I think Steve Dayan said it very well. We're a very flat organization.
We look at every customer segment in that way, and we're obsessed with the consumer, and I think that focus that we have is unique, and it gives us a, a different differentiated advantage.
And then a follow-up question. So obviously, you've talked about the 2028 guidance, and we've seen sort of and I know, Sandra, you're not sort of pinning to 7% share gains in the filler market. But I'm just curious, how should we think about it? 'Cause I know 2028's a little far away, but, it's not that far away. And, you know, we're having the initial launch next year. How should we think about the launch and because you're not, you know, unlike with Jeuveau, where you came on with, it was just a single product.
This is, you know, market where there are several products, right? You're competing against families of products, and you're not gonna have your full family on the market for a number of years and not that far past 2028, right?
It's only a couple of years until 2028. So how should we think about that dynamic and evaluate the launch on those terms? 'Cause I think we need to be fair that you're not gonna have the full portfolio initially at launch.
Yeah. Maybe Tomoko, if you wanna talk first a little bit about the first two products that we're gonna launch and what sort of, how injectors have communicated the use of those, and then-
Mm-hmm.
Maybe you wanna talk, take the second part.
Yes. So as you heard from Louis and our presentations, too, the first two products we're launching, Form and Smooth, are very universal fillers. And it really covering, from an investor's point of view, investigators and advisors, almost 95% of in HA procedures. So I think we have very high confidence that those two products really can cover most of the needs initially until we launch our product, Sculpt and Lift, and so on and so forth.
Yeah, it's not without thoughtfulness that the order of the launches is what it is, right? The most versatile in the line, and two products, not just one, right? One with a bit more structure and substance and one with a bit smoother quality to it, are coming out first because of that versatility and that opportunity to cover 95% of the procedures in the space. We are excited about Sculpt to come the year after, but as one of the panelists mentioned, there's an opportunity to still use Lift while you're waiting for Sculpt, right? So we'll unlock more potential, but the ability to move is created by the launch of those two fillers out of the gate.
Yeah.
Perfect. A question from online: Help me understand Club Evolus a bit more. What do consumers get for $49 a month?
Sure. Yeah, it's a very simple question. So for $49 a month, our patients can actually get treated four times per year, every 90 days, and receive 20 units.
Perfect. A question in the audience?
Hi, Serge Belanger from Needham. First, congrats on putting together a great event. It's great to meet the entire Evolus team. First question: regarding GLP-1 usage, we had a couple panel members talk about the expected tsunami on aesthetics, and just curious how you're thinking about that and what that tsunami could look like regarding neurotoxin and filler usage. Thanks.
Yeah, maybe I'll take that first. Look, the GLPs are cer tainly a force. They've changed the entire healthcare landscape, and I think every category is recoiling and assessing how it may affect them, some negatively, and in our case, in aesthetics, it's a positive tailwind. There's no doubt about that. As we look at it, when we launch a filler, we're gonna be entering a $1.8 billion category where we have zero share. So we don't rely on the GLPs and that tailwind to deliver the forecast that we gave you.
That being said, we're very optimistic about the benefits that we'll start to see in aesthetics from the GLPs, as you heard from our panelists today, and I think that's an exciting next step for these consumers, who, as they lose weight, will wanna look as good on the outside as they start to look in terms of their body weight, and that creates a really nice opportunity in this category.
Question from online: Is it digital platform proprietary? Do you have unique or patented IP?
This digital platform, we've invested in it, like, you know, for the past five years. Everything is done in-house, so the intelligence is in-house. Everything, like, from the designs, UX, UI, the coding, we have top engineers. Like, you know, that's why it's our proprietary, like, you know, platform.
We have a question in the audience.
Hi, it's Marc Goodman from Leerink Partners. Two questions. First, Sandra, can you talk about gross margin? Should we expect any change at all over the next, you know, three, four, or five years, or is all the leverage you were talking about, you know, SG&A? And then second, just thinking about the $700 million-plus goal, what are you worried about the most as far as what could go wrong? For instance, you know, is it OUS? Is it market share? Is it the market growth? I mean, the economy seems to be slowing a little bit right now globally. Is that, you know, does that concern you at all? Thanks.
I'll take the margin. As far as margin is concerned, Mark, thanks so much for the question. We've guided to 68%-71% margin this year. Our margin profile is very well understood and very, very stable, right? We've got clarity over our pricing when it comes to the purchase of our products and over the expense base that we have.
When we licensed the dermal filler line, we were very thoughtful about the impact that it could have on margin, and then we also have the expansion in our OUS markets, which does come at a lower margin than our US market. When we did the deal with Symatese, we really were thoughtful about how they partnered with us and how we created value for both companies.
What that meant is that we ended up with a slightly margin-accretive opportunity with these fillers, and we feel that that margin opportunity could really offset some of the drag we'll get as we grow in OUS markets, so you can expect gross margins should be relatively stable, even over the long term here.
We do, off the plan horizon, have some upside opportunities as we lap some royalties that we pay in 2032, which will provide a meaningful lift in margin, but as we go out to 2028, you should expect it to be relatively stable, and that really is owing to the great partnership we have with Symatese and the shared value creation we've built with this filler opportunity.
Yeah, on the second part, Mark, as it relates to the risks, look, when we provided that $700 million outlook, we factored in the assumption that there may be risks. As a matter of fact, there generally are. As you look out over five years, things always change. But as we look at it on balance, we see favorability more to the positive when you weigh out the risks and upsides than we do to the downside.
So we see a number of ways, as Sandra outlined, to outperform relative to the $700 million, just based on our existing in-market performance, that we're not necessarily overly reliant on market growth or overly reliant on market share or overly reliant on our international business.
It's a very diverse way of delivering growth, and when you look at the history, it actually, on balance, suggests that there's many ways for us to outperform.
Question from online: To date, your penetration of customer accounts has been held back by only having a single product and the inability to do bundle pricing. Will that change with the launch of the filler line, and what do you expect the contribution of customer penetration will be as a result?
Sure. Why don't I ask Kurt to talk a little bit about our customers? Because there is that question around, do we struggle to get into accounts with a single product, and how do you think about the filler changing it?
Yeah, no, and it's a great question, and one we have experienced some of that delay, where you hear customers saying... You heard one of the customers on my panel say they like to buy all from one shop. So we've had a tremendous amount of success in getting to some customers and getting them to reorder, but there's certainly a subset of customers, and some of them substantial, in that other half that we haven't penetrated yet. So if we're at 14,000 plus 30,000, that are substantial customers that are just holding out for a vendor that's able to provide a full line of products.
So the trick for us will be to balance getting the, leveraging the existing customers that we have and launching the filler there, as well as opportunistically looking at these accounts that are a big opportunity for us, that have held us on the sideline for that very reason. So I believe it's a huge opportunity, but one that we take great care that we don't disrupt the momentum that we already have.
Okay. Question in the audience?
Guys, this is Uy from Mizuho. So a few questions. First, on the Evolus Club, is this something that only you guys can do? And, like, why can't other people replicate this? And secondly, I think José presented some data whereas 2x various ways. Just wondering, like, how do you sort of see that drive growth? And is this Evolus Club, you know, potential revenues from Evolus Club, is that factored into your long-term guidance?
Mm-hmm. Sure. Let me take the first part, and I'll turn it over to José to talk a little bit more about the potential of Club. The first is, we spent a year before we piloted Club Evolus, designing it. And we designed it not just with the way it looks in front of the consumer, but the way it would work in a practice, and then the look and feel of it. And then we piloted it in this group of practices, and we saw an outsized level of results relative to the benchmark that we had set to determine whether we would launch it.
And that entire platform is running through the same digital infrastructure that currently powers our loyalty program.
So as it relates to being frictionless, which is a very important part of the experience, a lot of times what we like about Apple is it's frictionless. It operates every one of our systems, and we know when we work with them, we get a great outcome. We're the company that's developing that digital platform that's seamless and integrated as we introduce these new tools. That is very differentiated. And I can't say that others can't do it, but I can tell you that it'd be very difficult to create a platform that runs through the customer's hands through an app that powers all of these things.
And for these practices, it covers the payment for the consumer directly through our digital solution. It credits the practice back on the back end, directly through that digital solution. It's seamless.
If you're using our loyalty program, you can easily use our Club Evolus, and that's part of what we spent time designing so that we can scale it. So I'll let Jose-
Yeah. So, I mean, everything that David is sharing with you is actually exactly the way I would like to answer the question as well. So Club is built on the stack that I was demoing, like, you know, earlier. I mean, we've built, like, you know, this stack for five years. Club is another iteration, if you want, of the intelligence that we're putting in our architecture. What I would say as well is, Club is unique. You know, I mean, competitors could have done, you know, Club before. Nobody has done it. You know, we're the first one to bring it to market, and why?
Because I think patient retention frequency between treatments remains a number one opportunity for practices.
If you're looking at, like, you know, stats, and I'm going to quote, like, stats that are public, ASPS, the Association of MedSpas, on average, people are going to go to practices 1.8, 1.9 times. They're going to get injected 37 units. These are averages. With Club, we're taking it to another level. You know, I'm going to quote some numbers. 3.6 is actually the frequency that we can deliver with this pilot, and we are actually increasing the numbers of units, roughly 20-25% increase. So the bottom line is, this program is actually going to help the market, and I'm actually very happy that we are the first one to bring it, like, you know, live. Again, people can actually try, you know, their own solutions.
They try to copy us if they want to, but after five years, nobody has been able to actually, for instance, copy co-branded media. It takes, it takes a lot of thought, a lot of investments to actually deliver the platform that we have today.
Sandra, do you want to talk about how it affects the finances?
Yeah, so as far as the long-term guide goes, right, we're maniacally focused on customers and consumers. We always have been. We've innovated with CBM. We're innovating again with Club. We're always going to be thinking about what do they want next, and how do we serve them better, and how do we partner with them more effectively, more efficiently to drive growth, right? CBM is a great example of that. Club could be one as well, right? We look at our long-term guide and how we've grown, that's fueled the growth we've delivered today.
We expect to have to continue to innovate, to continue to evolve, to continue to partner in a thoughtful way with these customers, and that innovation is implied in our guidance. If we have breakout level performance from any one of these innovations, that would not be contemplated, right?
So the idea that we're constantly thinking about what's next, we're constantly focused on the consumer, we're constantly focused on our customer, it's just part of who we are, right? It's part of our culture, and it's part of what drives our confidence and our ability to execute. If we have outsized performance on any one innovation, that's certainly upside to our long range guide.
Taking a question online: Can you walk us through how the dermal filler launch fits into the broader vision of building a comprehensive portfolio in the aesthetic space? Also, do you have any biostimulator product in your pipeline?
Sure. Why don't I let Rui take the biostimulatory comment and our interest there that he had mentioned earlier? As far as the dermal filler, look, I think the right word to describe it is it unlocks potential, a tremendous amount of potential, the potential for us to partner with these practices more closely. You've seen our share with Jeuveau in existing practices, trades roughly at 25%-30%. We think that launching Evolysse unlocks our potential to move up those tiers, because they won't be as restricted by the competitive pricing programs.
It also unlocks, as you heard from Kurt, the opportunity to go into the accounts that we're not in in the United States, and that's a significant potential. But importantly, it also unlocks our investment into the category. We're creating a new medical education platform.
We're going to be unlocking more co-branded media to create more brand awareness. We're going to be unlocking consumer loyalty benefits for these consumers going in today and earning on Jeuveau to earn on more than just that brand. It really does create a completely different complexion of a company in front of our customers, and in the end, I think that's what you heard. Our customers are looking for partners that are there to help build their practices. We're a flat organization that's relationship focused with this unique value proposition, and Evolysse is clearly the next step in our progression.
With respect to pipeline, when we look at biostimulators, you know, we have some early programs that we look, but we also look at business development as a vehicle to bring in biostimulators, potentially. And as you've seen, we're very cash efficient when we look at transactions. And the other space that we're very interested in watching is things like skin quality.
Another question from online: What is the current construct of your sales force? Are you properly positioned for the filler launch?
Yeah. So our current structure is we have about 100 reps. We pride ourselves in being an efficient organization. I think if we probably had a counter on the times that we've used the word efficient, whether it be how we use our finances or anything, it's... We do pride ourselves on that, and it's the same on the sales force side. So we believe, because of leveraging that digital platform, that we're able to have an outsized presence than what the size of our group is. As far as scaling, we're in the midst of still looking at that.
I would say this, we will scale according to revenue. So we won't get out in front of ourselves. We're, again, very mindful of that spend, and it's a big spend.
It's the, probably the number one spend in the company, is the resources we put in the field. So we'll use that efficiently, but we'll scale to revenue.
Another question from online: As we look out toward 2028, how should we expect your revenue growth to occur? Will it be linear growth from 2024 onward, or do you foresee material fluctuations, either positive or negative?
Yeah, so as we mentioned, you know, the launch of the filler is going to be a catalyst for really an important inflection point in growth for us as a company, right? We'll start with that in 2025, and we'll see that revenue start to contribute meaningfully to the portfolio. We're also seeing an outsized performance in our toxin compared to the market, and right, that's accelerated our growth opportunity as well. We've been growing historically, last year, at about 36%. We're well over 30% coming off the back of that kind of growth, right?
And now the filler will provide a catalyst for us to give that confidence over that 28% revenue CAGR over the years to come.
So you're obviously going to see some inflection points that occur around the launches of the individual lines, but you shouldn't expect to see one, you know, breakout number on any given year across that time horizon.
... One thing I'd remind you as you look at our numbers, that we're really proud of what we've accomplished, but if you flip it the other way, in the toxin market, where we're the most established in the US, 87 out of 100 times, a consumer goes into a practice, they're not getting Jeuveau. 100% of consumers going in for fillers are not getting Evolus. And when you look at our international market, 97 out of 100 times, they're not getting Nuceiva. We have a tremendous amount of potential.
This is just the beginning of what we're creating, and we think that by focusing on what we're building, that the runway for these products and the way that we go to market is limitless.
And so we'll be realistic about what the near term brings, but what we think we're building with our cash pay proposition is very differentiated and sustainable.
Another question from online: Looking ahead, what do you see as the biggest opportunities for Evolus to further differentiate itself in the aesthetics industry over the next few years?
Yeah, I'll just say that I think we're gonna stay the course. That's what we've done really well, stayed focused. We know what our value system is when you think about our culture. We know what the tools are that we're pushing to market. You can imagine co-branded media is gonna continue to evolve. I know we're gonna introduce new elements to it. You see our branding evolving. Creative is a key part of our DNA, and you see us push boundaries in this bold, edgy look, and you can imagine a fresh, new look with Evolus.
This is a constant refresh and building of deeper and deeper capabilities in order to push the company further and further into the beauty space. That's what you should expect, but you shouldn't expect a pivot in this company.
You should expect us continuing to double down on these core capabilities and further differentiate ourselves.
Maybe one final question. What key milestones or catalysts should investors look out for in the near term, and what will signal Evolus is on track to achieve its 2025 and 2028 goals?
So I think we've continued to execute, right? And we've delivered many signals to the market of our competence and our capability and our execution. And so if you look at our historical performance, our ability to guide, that should build the foundation for you in terms of the confidence around our consistency and the catalysts that do drive our growth, are really our consistency and our continued execution, and our continued thoughtfulness about how we drive that execution and what we're going to guide to, right? We've unp
acked for you a lot here today to help you see the timeline we have around the filler, which is clearly a key catalyst for us for growth, but also the underpinning components of our infrastructure that continue to fuel the company's ability to partner with our customers, and our thoughtfulness about how we're constantly innovating on it.
There's not one thing to look at, right? It's everything together that makes the real difference for Evolus and what gets our customers engaged with this company. And you heard culture, you heard CBM, you heard digital, you heard it all, because no one of those things stand alone, and that continued momentum is the catalyst that drives this company to growth.
And on that, thank you all for your insightful questions and for taking the time to engage with us today. We appreciate your interest and continued support of Evolus. If there are any further inquiries, please feel free to reach out to our investor relations team. A replay of today's Investor Day will be made available on our website at evolus.com, and we look forward to keeping you updated on our progress as we continue to drive innovation and growth as a multi-product performance beauty company. Thank you.
Thank you.
Thank you. Nice work.