Evolus, Inc. ((EOLS)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Evolus, Inc. recently held its earnings call, revealing a mixed sentiment among stakeholders. The company celebrated significant achievements, such as the successful launch of Evolysse and strides in international expansion. However, these positives were tempered by challenges in the U.S. toxin market and a revised financial outlook due to prevailing economic headwinds.
Evolysse Launch Success
Evolus marked a milestone with the launch of Evolysse, which exceeded expectations by generating $9.7 million in revenue in its first quarter. This achievement represents the strongest first-quarter filler launch in over a decade, with over 4,000 healthcare providers trained since its debut.
Market Share Growth
Despite a challenging environment, Jeuveau maintained a 14% market share in the U.S. toxin market. This marks an increase from the full-year 2024 share of 13%, showcasing the product’s resilience and market presence.
International Expansion
Evolus is actively expanding its footprint internationally, operating in nine markets outside the U.S. This expansion covers over 70% of the international total addressable market, with a strategic goal to achieve $100 million in international revenue by 2028.
Positive Consumer Feedback
The company reported record-high Evolus Rewards redemptions, surpassing 224,000, with 65% coming from repeat patients. This indicates strong brand strength and consumer satisfaction, reinforcing the company’s market position.
Decline in U.S. Toxin Market
Jeuveau faced its first-ever year-over-year decrease due to a sharp reduction in consumer sentiment. Procedural volumes across the U.S. toxin category continued to decelerate further in the second quarter, posing a significant challenge.
Revised Financial Outlook
Evolus revised its 2025 revenue guidance to a range of $295 million to $305 million, reflecting an 11% to 15% growth over 2024. This adjustment comes amid broader economic challenges impacting the company’s financial projections.
Operating Expenses and Profitability Challenges
The company reported a non-GAAP operating loss of $7.9 million in the second quarter, a stark contrast to the non-GAAP operating income of $1.1 million in the same period of 2024. This highlights ongoing profitability challenges.
Broader Economic Headwinds
Evolus is navigating a challenging economic environment, with consumer discretionary spending pressures impacting demand. The company anticipates further challenges ahead as these economic headwinds persist.
Forward-Looking Guidance
Looking ahead, Evolus has adjusted its revenue expectations for 2025 to a range of $295 million to $305 million, aiming for 11% to 15% growth over 2024. The company is also targeting more than $25 million in cost savings, primarily through reductions in general and administrative expenses. Despite challenges, Evolus maintains a long-term revenue target of $700 million by 2028, with a goal to achieve a 20% non-GAAP operating income margin.
In summary, Evolus, Inc.’s earnings call painted a picture of both triumphs and trials. While the successful launch of Evolysse and international expansion efforts are commendable, the company faces significant challenges in the U.S. toxin market and broader economic headwinds. The revised financial outlook reflects these challenges, yet Evolus remains committed to its long-term growth targets.