Executive Summary

Q1 2024 delivered $51.9M total revenue (+13% YoY) with DAXXIFY net revenue of $22.1M (reduced by $2.0M from a consumer coupon) and RHA revenue of $29.6M; aesthetics KPIs improved: DAXXIFY units +105% YoY, +7% QoQ, and toxin share rose to 3.7% from 3.0% in Q4’23; RHA share increased to 9.8% from 9.1% despite a soft filler market .
FY24 guidance reiterated: at least $280M total net product revenue, GAAP OPEX $460–$490M, non-GAAP OPEX $290–$310M, non-GAAP SG&A $240–$255M; management said non-GAAP OPEX is trending to the low end and continues to target positive Adjusted EBITDA in 2025 .
Strategic catalysts: commercial launch of DAXXIFY for cervical dystonia (CD) with 78% commercial coverage and J‑Code in place; >200M covered lives; strong physician feedback from PrevU program (94% perceived longer duration vs conventional toxins) .
Balance sheet fortified by $100M equity raise; cash, cash equivalents and ST investments of $277.1M at 3/31/24, supporting execution toward breakeven in 2025 .

What Went Well and What Went Wrong

What Went Well
- DAXXIFY momentum: aesthetic units +105% YoY and +7% QoQ; toxin share up to 3.7% from 3.0% QoQ; management emphasized faster onset and improved skin quality in addition to duration, aiding adoption .
- RHA outperformed a soft filler market: share rose to 9.8% (from 9.1% in Q4), with RHA 3 lip indication launched in April to target the #1 U.S. filler procedure .
- Therapies readiness: DAXXIFY CD launched with 78% commercial coverage, J‑Code secured, and PrevU physicians (94%) perceiving longer duration; infrastructure and reimbursement workflows in place .
What Went Wrong
- Coupon drag and seasonality: DAXXIFY net revenue reflected a $2.0M reduction from a consumer coupon program; total product revenue declined QoQ from $58.5M in Q4’23 to $51.7M in Q1’24 despite YoY growth .
- Filler softness: RHA revenue decreased 2% YoY to $29.6M, reflecting a softer U.S. filler market in Q1, though early Q2 signs point to normalization per management .
- Losses persist: Net loss from continuing operations was $49.5M; cost base remains high even as non-GAAP OPEX efficiencies progress .

Financial Results

Metric	Q3 2023	Q4 2023	Q1 2024
Total Revenue, net ($M)	$56.8	$69.8	$51.9
Product Revenue, net ($M)	$54.1	$58.5	$51.7
EPS (GAAP, basic & diluted)	$(1.63)	$(0.62)	$(0.58)
Total Operating Expenses ($M)	$196.1	$123.8	$98.8
Gross Margin % (calc.)	65.8% [(56.8−19.4)/56.8]	75.0% [(69.8−17.5)/69.8]	71.3% [(51.9−14.9)/51.9]

Notes: Q1 2024 excludes discontinued Fintech/OPUL operations; Q3/Q4 2023 included service revenue and related costs. Gross margin % calculated from reported total revenue minus cost of product/service revenue divided by total revenue, using values from cited statements .

Segment/Product Breakdown

Product Revenue ($M)	Q3 2023	Q4 2023	Q1 2024
DAXXIFY	$22.0	$24.0	$22.1 (net; includes $2.0M coupon reduction)
RHA Collection	$32.1	$34.5	$29.6

KPIs and Operating Metrics

KPI	Q4 2023	Q1 2024
DAXXIFY toxin market share	3.0%	3.7%
DAXXIFY aesthetic units sold	—	+105% YoY; +7% QoQ
RHA filler market share	9.1%	9.8%
Aesthetic accounts (total)	>7,000	>7,500
DAXXIFY ordering accounts	>3,000	>3,500
CD payer coverage (commercial)	>50%	78%; >200M lives incl. govt
Cash, cash equiv. & ST inv. ($M)	$253.9	$277.1

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Net Product Revenue	FY 2024	≥$280M	≥$280M	Maintained
GAAP Operating Expenses	FY 2024	$460–$490M	$460–$490M	Maintained
Non‑GAAP Operating Expenses	FY 2024	$290–$310M	$290–$310M; trending low end	Maintained; trending lower
Non‑GAAP SG&A	FY 2024	$240–$255M	$240–$255M	Maintained
Positive Adjusted EBITDA	2025 target	Reaffirmed	Reaffirmed	Maintained

Earnings Call Themes & Trends

Topic	Q3 2023 (Q‑2)	Q4 2023 (Q‑1)	Q1 2024 (Current)	Trend
DAXXIFY pricing & adoption	New pricing; improving reorders; KPIs building	Sequential volume growth; reorders >⅔ of revenue	Units +105% YoY; +7% QoQ; share +70 bps; broader messaging and removal of advertised price limits	Improving
RHA performance	Share gains in HA fillers	Fastest-growing filler by share; stable rev	Share up to 9.8% amid soft market; RHA 3 lip launch	Mixed near term; positive share
Therapeutics (CD)	PrevU initiated; >150 pts	>50% coverage; J‑Code received	Commercial launch; 78% coverage; >200M lives; PrevU feedback strong	Executing launch
OpEx discipline	Exit OPUL; restructuring charges	2024 OPEX below 2023; focused allocation	Non‑GAAP OPEX trending low end; sequential reduction vs Q4	Improving
Portfolio bundling	—	—	Bundling/portfolio programs planned to drive deeper penetration	Initiating
Competitive/pricing dynamics	—	—	Competes on product performance; pricing resilient despite entrants	Stable

Management Commentary

“We saw a healthy uptick in volume... aesthetic units sold increased by 105% YoY, and... 7% sequentially despite... seasonality... DAXXIFY’s share increased from 3.0% in Q4’23 to 3.7% in Q1’24.” — Mark J. Foley, CEO .
“Currently, DAXXIFY is covered by approximately 78% of commercial payors which... represents over 200 million lives.” — Mark J. Foley .
“We are reiterating our guidance... non‑GAAP OpEx of $290M to $310M, which is currently trending to the low end... [and] positive adjusted EBITDA in 2025.” — Tobin Schilke, CFO .
“We launched a new DAXXIFY messaging campaign ‘The DAXXIFY Difference: Fast, Last and the Look’ and removed the no advertised price limitation,” aiding practice promotion and adoption — Mark J. Foley .

Q&A Highlights

Path to FY24 revenue: Management expects sequential growth across 2024, with Q2 benefiting from broadened account adds and balanced portfolio focus; early Q2 volumes “good” across toxin and filler; $280M product revenue target seen as achievable .
RHA outlook: Despite Q1 softness, management expects the filler market to return to historic high-single-digit growth; RHA 3 lip launch and portfolio programs support teens growth for RHA in 2024 within overall guidance .
Portfolio programs: Company plans 2024 bundling and value-added services to drive cross‑product engagement; future consumer incentives to be structured as deferrals/S&M expense (not full revenue offsets) where possible .
Therapeutics contribution: 2024 CD revenue modeled as modest and incremental, with more meaningful impact in 2025 as dosing optimizes and reimbursement cycles complete .
Competitive/pricing: Markets already competitive on price; Revance aims to win on performance attributes (onset, duration, skin quality) with competitive pricing; expects practices to increasingly curate offerings toward differentiated products .

Estimates Context

We attempted to retrieve S&P Global (Capital IQ) consensus for Q1 2024 revenue and EPS; data was unavailable due to a mapping issue for RVNC at the time of analysis. As a result, we cannot provide a quantitative beat/miss versus consensus for this quarter. We will update once S&P Global consensus becomes accessible.

Key Takeaways for Investors

DAXXIFY adoption inflecting: 105% YoY unit growth, 7% QoQ despite seasonality, and share gains to 3.7% indicate strategy change is working; watch sequential growth cadence and new account adds through 2024 as adoption broadens .
Filler resilience via share gains: RHA’s market share expansion to 9.8% amid softness, plus the RHA 3 lip launch, supports a recovery narrative as the filler market normalizes; portfolio bundling could lift attach rates .
Therapeutics launch lays a second growth vector: CD launch (78% coverage; J‑Code) with favorable early physician feedback sets up incremental 2024 contribution and a more material 2025 ramp as dosing and reimbursement patterns settle .
Expense discipline gaining traction: Non‑GAAP OPEX trending to the low end of guidance and sequentially lower vs Q4’23 supports the 2025 positive Adjusted EBITDA target; track operating leverage as revenue scales .
Near‑term modeling: Expect seasonality and coupon headwinds to fade; monitor QoQ product revenue trajectory, mix shift to toxin, and RHA recovery in Q2/Q3; FY24 product revenue floor (≥$280M) re‑affirmed .
Risk checks: Continued net losses and leverage require execution on growth and efficiency; competitive pricing and new entrants necessitate sustained product differentiation and practice-level value delivery .
Stock catalysts: Evidence of accelerating DAXXIFY reorder velocity/new account additions, RHA 3 lip traction, early CD prescription/reimbursement momentum, and confirmation of OPEX trending to low end could drive sentiment.

Sources:

Q1 2024 8‑K press release and exhibits: financials, KPIs, guidance, CD launch and coverage .
Q1 2024 earnings call transcript: adoption dynamics, RHA outlook, CD launch strategy, OPEX trajectory, competitive/pricing commentary .
Prior quarters for trend analysis: Q4 2023 8‑K press release (product revenue $58.5M, DAXXIFY $24.0M, RHA $34.5M; FY24 guidance established; coverage/J‑Code updates) ; Q3 2023 8‑K press release (product revenue $54.1M; DAXXIFY pricing change and early reorder metrics) .

Revance Therapeutics, Inc. (RVNC)·Q1 2024 Earnings Summary