NASDAQ$DNLI

Denali Therapeutics Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported financial results for the first quarter ended March 31, 2021 and provided business highlights.

Denali Therapeutics reported a net loss of $70.0 million for the first quarter of 2021, compared to a net loss of $56.8 million for the same period in 2020. Collaboration revenue increased to $7.9 million, driven by increased costs in partnered programs with Takeda. Total research and development expenses were $60.2 million, and general and administrative expenses were $18.9 million. Cash, cash equivalents, and marketable securities totaled $1.45 billion as of March 31, 2021.

  • DNL310 demonstrated normalization of GAG levels in cerebrospinal fluid and a favorable safety profile in Hunter syndrome patients.
  • DNL151 (BIIB122) met safety and biomarker goals in Phase 1/1b studies for Parkinson's disease, with late-stage clinical development planned by year-end 2021.
  • DNL343 met safety and pathway engagement biomarker goals in a Phase 1 healthy volunteer study, with plans to initiate a Phase 1b study in ALS patients in the second half of 2021.
  • Sanofi plans to commence dosing in a Phase 2 study of DNL758 (SAR443122) in cutaneous lupus erythematosus (CLE) patients in the first half of 2021.

Headline financials

Total Revenue

$7.92M

Previous: $3.6M+119.8%
EPS (adj)

-$0.58

Previous: -$0.55-5.5%
Capital Expenditures

-$2.8M

Previous: -$879K-218.5%
Free Cash Flow

-$72.8M

Previous: -$57.6M-26.4%
Net Income

-$70M

Previous: -$56.8M-23.4%
Operating Income

-$71.2M

Previous: -$60M-18.8%
Gross Profit

$7.92M

Previous: $3.6M+119.8%
Cash & Equivalents

$435M

Previous: $208M+109.8%
Total Assets

$1.55B

Previous: $696M+122.4%
Stock-Based Comp

$21M

Previous: $10.8M+95.0%

Revenue & EPS history

Denali Therapeutics · Revenue · Quarterly

$7.92M

Q1 2021+119.8%vs Q1 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Denali provided updates on expected key milestones for 2021.

Tailwinds

  • RIPK1 inhibitor (DNL758/SAR443122): Commence dosing in Phase 2 study in CLE patients (Sanofi) in 1H 2021
  • ETV:IDS (DNL310): 6-month data from Cohort A of Phase 1/2 study in mid 2021
  • EIF2B activator (DNL343): Initiate Phase 1b study in ALS patients in 2H 2021
  • RIPK1 inhibitor (DNL788/SAR443820): Phase 1 data in healthy volunteers (Sanofi) in 2H 2021
  • LRRK2 inhibitor (DNL151/BIIB122): Initiate late-stage clinical development in Parkinson’s patients in Late 2021

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.3%

Avg return

Earnings day

-1.4%

Avg return

5 days after

+1.3%

Avg return

30 days after

44%

14 / 32 earnings

Positive

+19.7%

Q4 2023

Best reaction

-13.7%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-1.0%-4.9%-15.2%
Q3 2025-3.2%+18.1%+34.0%
Q1 2025+1.0%-0.9%+6.1%
Q4 2024-1.5%-15.6%-21.8%
Q3 2024+7.1%+14.2%-10.0%
Q2 2024-10.3%-9.7%+0.3%
Q1 2024+10.3%+6.8%+24.3%
Q4 2023+19.7%+23.5%+21.5%
Q3 2023-2.7%-21.8%-9.7%
Q2 2023-5.2%-7.6%-7.3%
Q1 2023+3.0%+5.4%+16.1%
Q4 2022+4.8%+7.3%-10.9%
Q3 2022-7.8%-10.3%+6.2%
Q2 2022+4.6%+6.6%-17.5%
Q1 2022-13.7%-14.0%-8.5%
Q4 2021-2.8%-7.8%-1.9%
Q3 2021+3.5%-0.4%-19.9%
Q2 2021+3.5%+4.6%+6.6%
Q1 2021-8.0%-10.2%+5.5%
Q4 2020+7.5%-5.8%-17.2%
Q3 2020+5.2%+16.3%+40.8%
Q2 2020+6.1%-5.4%-2.5%
Q1 2020-5.5%-5.7%+2.6%
Q4 2019-8.6%-10.0%-12.5%
Q3 2019-6.1%-10.1%+10.5%
Q2 2019+0.6%+5.4%-4.2%
Q1 2019-4.8%-11.4%-18.9%
Q4 2018+11.7%+12.0%+26.4%
Q3 2018-4.0%-0.6%+12.7%
Q2 2018-0.5%-0.7%+17.0%
Q4 2017-4.8%-5.1%+2.2%
Q1 2018-8.8%-8.0%-12.4%
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016

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