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Evolus, Inc. (EOLS)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered record net revenue of $79.0M (+30% y/y) with adjusted gross margin of 67.5%; non-GAAP operating income was $6.7M, marking the second quarter of profitability and full-year non-GAAP profitability achieved one year ahead of plan .
  • GAAP operating loss improved to $2.3M from $15.5M in Q3; GAAP EPS was $(0.11) vs $(0.21) in Q4 2023, supported by disciplined opex and seasonally strong demand .
  • 2025 guidance reaffirmed: revenue $345–$355M (+30–33% y/y), non-GAAP opex $230–$240M, and consolidated full-year non-GAAP operating income with profitability concentrated in Q4 2025; Evolysse and Estyme expected to contribute 8–10% of 2025 revenue .
  • FDA approval of Evolysse Form and Smooth in February and accelerated U.S. launch in Q2 2025 (earlier than the prior “by September 2025” expectation) is a key catalyst; label uniquely recognizes weight loss as a factor in wrinkle formation (GLP-1 tailwind) .

What Went Well and What Went Wrong

What Went Well

  • Achieved full-year non-GAAP profitability in 2024 and non-GAAP operating income of $6.7M in Q4; management emphasized “significant inflection point” and five consecutive years of >30% revenue growth .
  • FDA approval for Evolysse Form and Smooth and accelerated Q2 2025 launch; label differentiation includes weight loss as a cause of facial wrinkles, which management views as uniquely positioned for GLP-1 patients .
  • Strong commercial KPIs: ~830 new accounts in Q4, total accounts >15,300, ~70% reorder rate, Evolus Rewards reached ~1.1M consumers with a record ~220k redemptions in Q4 .

Selected quotes:

  • CEO: “We reached a significant inflection point in 2024, achieving full-year profitability… while delivering our fifth consecutive year of revenue growth exceeding 30%.”
  • CMO: “To our knowledge, we’re the first and only company to include weight loss as a cause of wrinkles in patient labeling.”
  • CFO: “Operating expenses grew at less than half the rate of revenue… demonstrating continued operating leverage.”

What Went Wrong

  • Gross margin compressed sequentially (Q4 reported GM 66.7% vs 68.9% in Q3), primarily seasonal mix; GAAP net loss remained $(6.8)M despite improved operations .
  • Service revenue was negative in Q4 (timing on a Canadian contract); management guided that service revenue is stable but not a material growth driver .
  • Continued interest expense headwind (~$4.6M in Q4) tied to $125M term loan; company expects liquidity to fund operations to positive cash generation and repay debt in 2026–2027 .

Financial Results

Core financials vs prior periods and (if available) estimates

MetricQ4 2023Q3 2024Q4 2024
Total Net Revenues ($USD Millions)$61.0 $61.1 $78.9
GAAP Net Loss ($USD Millions)$(11.8) $(19.2) $(6.8)
GAAP Diluted EPS ($)$(0.21) $(0.30) $(0.11)
Gross Profit Margin (%)67.2% 68.9% 66.7%
Adjusted Gross Margin (%)68.4% 70.2% 67.5%
GAAP Loss from Operations ($USD Millions)$(8.6) $(15.5) $(2.3)
Non-GAAP Income (Loss) from Operations ($USD Millions)$(3.7) $(6.7) $6.7
GAAP Operating Expenses ($USD Millions)$49.6 $76.6 $54.9
Non-GAAP Operating Expenses ($USD Millions)$45.5 $49.6 $46.6
Cash and Equivalents ($USD Millions)$62.8 $85.0 $87.0

Note: S&P Global consensus estimates were unavailable at the time of analysis; therefore, explicit “vs. estimates” comparisons cannot be provided.

Revenue breakdown

MetricQ4 2023Q3 2024Q4 2024
Product Revenue, net ($USD Millions)$60.7 $60.2 $79.0
Service Revenue ($USD Millions)$0.33 $0.92 $(0.01)
Total Net Revenues ($USD Millions)$61.0 $61.1 $78.9
Cost of Goods Sold ($USD Millions)$20.0 $19.0 $26.3
Gross Profit ($USD Millions)$41.0 $42.1 $52.6

KPIs

KPIQ2 2024Q3 2024Q4 2024
New Accounts Added (Quarter)770 >600 ~830
Total Accounts Purchasing (Cumulative)~14,000 ~14,500 >15,300
Customer Reorder Rate~70% ~70% ~70%
Evolus Rewards Members (Cumulative)>900,000 ~975,000 ~1.1M
Quarterly Rewards Redemptions~190,000 >190,000 ~220,000
International Expansion HighlightsLaunch Spain EU approval for Estyme Australia & Spain launches

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Net Revenue ($USD Millions)FY 2025$345–$355M (Jan prelim) $345–$355M Maintained
Non-GAAP Operating Expenses ($USD Millions)FY 2025$230–$240M (Jan prelim) $230–$240M Maintained
Non-GAAP Operating Income (Profitability)FY 2025Positive for full year (concentrated in Q4) (Jan prelim) Positive for full year; concentrated in Q4 Maintained
Adjusted Gross Margin (%)FY 202468–71% Actual 69.6% Met
Total Net Revenue ($USD Millions)FY 2024$260–$266M Actual $266.3M At top end
Evolysse US Launch Timing2025Approval/launch expected by Sept 2025 FDA approved Feb; U.S. launch Q2 2025 Accelerated
Estyme EU Launch Timing2025Experience program immediate; full launch H2 2025 Limited experience program; broader launch H2 2025 reaffirmed Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4 2024)Trend
Market share & growthYTD momentum; >1M loyalty members; strong Jeuveau adoption U.S. market share approaching ~14%; five straight years >30% revenue growth Improving
Digital platform & subscriptionClub Evolus launched in Nov; initial rollout ~100 pilot accounts; strong interest; broader rollout underway Expanding
Regulatory milestonesEstyme EU approval; PMA under FDA review; launch by Sept 2025 FDA approval for Evolysse Form & Smooth; Q2 2025 U.S. launch Achieved & accelerated
R&D & product differentiationPMA submitted; clinical superiority vs Restylane at 6 months (Evolysse Lift/Smooth) Cold-X technology; statistical superiority for Form/Smooth; broader indication; low inflammation profile Strengthening
GLP-1 tailwind messagingN/AFirst-in-class patient label recognizing weight loss; targeting GLP-1 cohort New tailwind
International expansionSpain launch; EU Estyme approval Expanded direct presence in Australia & Spain; path to $100M international by 2028 Ramping
Pricing/portfolio economicsN/APremium positioning; pricing in line with leading HA; integrated co-branded media and rewards Constructive
Macro/supply chainN/AManagement sees healthy toxin market (high single-digit); filler normalizing volumes Stable to improving

Management Commentary

  • “The combination of Jeuveau® and Evolysse™ brings together the fastest growing neurotoxin in the U.S. with the first innovation in HA technology in a decade.” — CEO
  • “Evolysse Form demonstrated statistical significance at all follow-up time points… the label… includes… p-value <0.001, demonstrating statistical superiority over the control.” — CMO
  • “Total net revenues are expected to be between $345 million and $355 million… Evolysse injectable HA gels will contribute 8% to 10% of total revenue in 2025.” — CFO

Q&A Highlights

  • Market health vs peers: Management sees a healthy toxin market (high single-digit growth) and a filler market normalizing post-COVID, positioning Evolysse well with differentiated technology and GLP-1 label .
  • Subscription strategy: Club Evolus pilot (~100 accounts) shows encouraging results; broader rollout continues, with learnings distinct from legacy loyalty programs .
  • Label differentiation: Weight loss language added via agency negotiation; viewed as powerful for patient acquisition in practices .
  • Revenue mix/Service revenue: Service revenue tied to a single Canadian contract; negative in Q4 due to timing; not a material growth driver .
  • Launch process & training: Broad training capacity via Evolus Academy and medical affairs to reach 12–13k accounts in 2025; rewards integration to include Evolysse in Q2 with consumer rewards following .
  • Accounts trajectory: 2025 priority shifts to training existing accounts on Evolysse, implying fewer new account adds vs ~500/quarter historic pace .

Estimates Context

  • S&P Global consensus estimates for Q4 2024 EPS and revenue were unavailable at the time of analysis due to data access limitations. As a result, explicit comparisons versus Wall Street consensus cannot be provided for this quarter. Where estimates are required in future updates, values will be retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term catalyst: FDA approval and accelerated Q2 2025 launch of Evolysse Form/Smooth with differentiated labeling targeting GLP-1 weight-loss cohort; expect revenue contribution weighted to H2 2025 and non-GAAP operating income concentrated in Q4 2025 .
  • Execution quality: Q4 non-GAAP profitability and full-year non-GAAP profitability ahead of plan, supported by commercial discipline and operating leverage (non-GAAP opex growth ~13% vs revenue +32%) .
  • Demand strength: Seasonally strong Q4 and KPIs (accounts, reorder rate, loyalty) underscore Jeuveau momentum; international ramp (Australia, Spain) adds incremental growth vectors .
  • Margin trajectory: Sequential GM compression in Q4 (mix/seasonality) is manageable; adjusted GM remains in long-term band; watch Q1 seasonality and launch investments .
  • Balance sheet: $87M cash; management confident liquidity funds pivot to cash generation and supports $125M debt repayment in 2026–2027; monitor interest expense run-rate (~$4.5M/qtr) .
  • Portfolio synergy: Integrated co-branded media and rewards across Jeuveau and Evolysse plus subscription model should deepen account penetration and support mix uplift .
  • 2025 setup: Guidance implies sixth consecutive year of >30% growth; with estimates unavailable this quarter, focus on H2 ramp, training/education execution, and share gains approaching mid-teens .