Q2 report
- Q2 total revenue of $58.1 million, a YoY increase of 104.9%.
- Q2 RHA® Collection revenue of $31.8 million, a YoY increase of 24.7%.
- Q2 DAXXIFY® revenue of $22.6 million, a QoQ increase of 47.1%.
- Bolstered financial position with $100 million net proceeds from ATM program and $50 million in notes available to be issued through Athyrium Capital on or before August 31, 2023.
- PDUFA date of August 19, 2023 for DAXXIFY® for the treatment of cervical dystonia.
- Conference call and webcast today at 4:30 p.m. ET.
NASHVILLE, Tenn.--(BUSINESS WIRE)--Aug. 8, 2023-- Revance Therapeutics, Inc. (RVNC), today reported financial results for the second quarter ended June 30, 2023 and provided a corporate update.
Financial Highlights
Total revenue for the second quarter ended June 30, 2023 was $58.1 million compared to $28.4 million for the same period last year, representing an increase of 104.9% primarily due to the sales growth of the RHA® Collection of dermal fillers and the commercialization of DAXXIFY®. Revenue for the second quarter included $31.8 million of RHA® Collection revenue, $22.6 million of DAXXIFY® revenue and $3.7 million of service revenue. Revenue for the six months ended June 30, 2023 was $107.5 million compared to $53.6 million for the same period in 2022.
Selling, general and administrative (SG&A) expenses for the three and six months ended June 30, 2023 were $77.4 million and $143.4 million compared to $47.8 million and $92.9 million, respectively, for the same periods in 2022, presented in accordance with U.S. generally accepted accounting principles (“GAAP”). The quarterly increase was primarily due to higher sales and marketing expenses related to DAXXIFY® and the RHA® Collection. Excluding depreciation, amortization and stock-based compensation, non-GAAP SG&A expenses were $64.2 million and $117.8 million, respectively, for the three and six months ended June 30, 2023.
Research and development (R&D) expenses for the three and six months ended June 30, 2023 were $22.8 million and $46.0 million compared to $24.9 million and $55.6 million, respectively, for the same periods in 2022. The quarterly decrease was primarily due to the effects of capitalizing certain manufacturing-related expenses for DAXXIFY®. Excluding depreciation, amortization and stock-based compensation, non-GAAP R&D expenses were $19.0 million and $36.9 million, respectively, for the three and six months ended June 30, 2023.
Total operating expenses for the three and six months ended June 30, 2023 were $123.6 million and $231.0 million compared to $86.2 million and $173.7 million, respectively, for the same periods in 2022. Excluding costs of revenue, depreciation, amortization and stock-based compensation, non-GAAP operating expenses were $83.2 million and $154.7 million, respectively, for the three and six months ended June 30, 2023.
Net loss for the three and six months ended June 30, 2023 was $67.3 million and $127.1 million, respectively, compared to a net loss of $61.4 million and $125.8 million for the same periods in 2022.
Cash, cash equivalents and short-term investments as of June 30, 2023 were $319.7 million.
At-the-market (ATM) program. During the second quarter, the company issued 3.2 million shares of common stock pursuant to the company’s ATM offering, which provided net proceeds of $100 million.
Note purchase agreement with Athyrium Capital. On August 8th, Revance and Athyrium Capital amended the company’s existing Note Purchase Agreement entered into on March 18, 2022. Pursuant to the amendment, the committed 8.5% Second Tranche note was reduced from $100 million to $50 million, and the uncommitted Third Tranche note was increased from $100 million to $150 million. The company expects to issue its Second Tranche note of $50 million on or before August 31, 2023, provided certain conditions are met.
“We are very pleased with our strong Q2 performance highlighted by DAXXIFY’s first full quarter of launch and the continued growth of the RHA® Collection. With regards to DAXXIFY®, we remain very encouraged by the product’s performance, uptake, and ongoing demand. Coupled with the strong execution of our commercial team, we continue to believe we have the right people, products and strategy in place to realize our blockbuster potential in aesthetics,” said Chief Executive Officer, Mark J. Foley. “Given our growth, we have taken prudent steps to significantly bolster our financial position to ensure that we have the necessary resources to support our aesthetics business while also preparing for our entry into the therapeutics market. We believe we are well positioned for our opportunities ahead and look forward to sharing more on our business and outlook at our upcoming Investor Day in September.”
Second Quarter Highlights and Subsequent Updates
Total DAXXIFY® sales generated through Q2 of 2023 was $49.0 million, which surpassed the total sales generated by any competitor to Botox® in their first launch year.
The onboarding of 50 additional aesthetic salespeople was completed in the second quarter 2023, bringing the company’s total aesthetic sales force to more than 150 people.
Accounts across Revance’s aesthetic portfolio totaled over 6,000 at the end of the second quarter 2023.
Revance launched its first unbranded, “Break Up with Botox®”, direct-to-consumer campaign, driving strong consumer awareness across key channels and platforms. Since its initiation in June, the targeted campaign garnered 57 million impressions and over 9 million views.
In July, the U.S. Food and Drug Administration (FDA) approved the expansion of RHA® 4’s label to include cannula use. RHA® 4 is indicated for the correction of moderate to severe dynamic facial wrinkles and folds, such as nasolabial folds.
Gross payment volume (GPV) for the OPUL® Relational Commerce platform totaled $173 million for the second quarter 2023 and $697 million for the trailing-twelve months ended June 30, 2023.
Fosun Pharma’s biologics license application (BLA) for DAXXIFY® for cervical dystonia was accepted for review by China’s National Medical Products Administration (NMPA). This is Fosun Pharma’s second BLA acceptance for DAXXIFY® by China’s NMPA.
Financial Outlook
Revance expects 2023 GAAP operating expenses to be $460 million to $480 million and non-GAAP operating expenses, which exclude costs of revenue, depreciation and amortization and stock-based compensation to be $320 million to $340 million. Revance expects 2023 non-GAAP research and development expenses to be $80 million to $90 million. The company’s non-GAAP operating expense guidance for 2023 primarily reflects increased investments in its aesthetics commercial infrastructure, including sales team expansion, DAXXIFY® and RHA® Collection commercial investment, and biosimilar partnership investment.
With current cash, cash equivalents and short-term investments, $50 million in notes the company plans to issue through Athyrium Capital, provided certain conditions are met, and anticipated revenues and expenditures, management projects that the company will be funded to cash flow break-even.
Conference Call
Revance will host a corresponding conference call and a live webcast at 1:30 p.m. PT/4:30 p.m. ET on August 8, 2023 to discuss its financial results and provide a corporate update. Individuals interested in listening to the conference call may do so by dialing (888) 330-3637 or from the webcast link in the investor relations section of the company's website at: www.revance.com.
A replay of the call will be available beginning August 8, 2023, at 4.30 p.m. PT/7.30 p.m. ET until November 9, 2023 at 4.30 p.m. PT / 7.30 p.m. ET. To access the replay, please register through the webcast link found in the investor relations section of the company’s website. The webcast will be available in the investor relations section on the company's website for 90 days following the completion of the call.
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