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Xevolus Evolus Reports Third Quarter 2021 Results and Provides Business Update November 2 , 2021 • Record Quarter : U.S. Net Revenue Grew 58 % Year - over - Year to $ 26.7 Million • $ 107.8 Million Cash Position at Quarter - End • Initiated Jeuveau " Extra Strength " Phase II Clinical Program to Demonstrate Extended Duration NEWPORT BEACH , Calif . , Nov. 02 , 2021 ( GLOBE NEWSWIRE ) -- Evolus , Inc. ( Nasdaq : EOLS ) , a performance beauty company with a customer centric approach focused on delivering breakthrough products , today reported financial results for the third quarter ended September 30 , 2021 and provided a business update . " We reported record sales of Jeuveau in the third quarter during what is typically the seasonally lowest sales quarter of the year for the market , " said David Moatazedi , President and Chief Executive Officer . " This strong performance reflects increasing momentum and positions Evolus for a great finish to 2021. Our commercial efforts are now in full swing , and we are seeing accelerated growth trends resulting from our co - branded marketing program . " The company believes its unique marketing strategy , primarily focused on targeted co - branded advertising , was a key catalyst for the increase in third quarter revenue . During the quarter , Evolus created greater Jeuveau awareness with over 850 unique co - branded marketing campaigns across the United States , which generated more than 395 million media impressions . The company also observed accelerating trends for new accounts and consumers in the Evolus loyalty program . • Accounts purchasing JeuveauⓇ increased by 500 in the third quarter to more than 6,500 total customers ; new customer accounts were up by 1,000 year - to - date . • Consumers in the Evolus loyalty program doubled to 240,000 registrants year - to - date through October¹ . Moatazedi continued , " With our strong commercial ramp underway we are now investing in a Phase II program to study an ' extra strength ' dose for extended duration of Jeuveau® , as announced separately today . Given our aesthetics - only business model , Evolus is uniquely positioned to capitalize on opportunity , which should further position us for continued market share gains . " Third Quarter 2021 Highlights and Recent Corporate Developments • U.S. JeuveauⓇ net revenues were $ 26.7 million , up 58 % compared to the third quarter of 2020 , with a majority of the increase driven by higher volumes ; 5 % U.S. net revenue sequential growth compared to the second quarter of 2021 reflects continued market share gains during the typically lowest quarter . • Initiated a Phase II program evaluating " extra strength " dose of Jeuveau for extended duration o Increased clinical duration in a 900 kDa complex has been shown in published clinical data² o Study initiation activity already begun with the first patient expected to be enrolled in Q1 2022 • Study completion is expected in the first half of 2023 • European introduction of NuceivaⓇ remains on track for early 2022 , representing an estimated $ 470 million botulinum toxin market³ opportunity in 2022 . Third Quarter 2021 Financial Results • U.S. net revenues in the third quarter of 2021 increased 58 % compared to the third quarter of 2020. Total net revenues increased 51 % to $ 26.7 million from $ 17.7 million in the third quarter of 2020. Revenue in the third quarter of 2020 included $ 0.7 million of international service revenue . • Gross profit margin and adjusted gross profit margin were 54.2 % and 56.9 % , respectively . Based on its current performance and promotional plans for the fourth quarter of 2021 , the company is reiterating its full year 2021 adjusted gross profit margin target of 54 % to 57 % . Adjusted gross profit margin excludes amortization of intangibles and the settlement payment from Daewoong . Beginning in the fourth quarter of 2022 , settlement royalty rates decrease resulting in an adjusted gross margin target expected to exceed 70 % . • GAAP operating expenses increased 73 % to $ 45.8 million from $ 26.4 million in the third quarter of 2020 , primarily due to settlement royalties , higher investments in targeted co - branded advertising and increased expense from the revaluation of the contingent royalty obligation payable to Evolus Founders , all in the third quarter of 2021. Specifics included : o Product cost of sales ( excluding amortization of intangible assets ) of $ 11.5 million , which was $ 6.6 million higher than the $ 4.9 million included in the third quarter of 2020 , primarily due to $ 5.0 million in settlement royalties net of partner contribution recorded in the third quarter of 2021 and increased product costs due to higher sales volumes .