NASDAQ$DNLI

Denali Therapeutics Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported financial results for the second quarter ended June 30, 2020 and provided business highlights.

Denali Therapeutics reported a net loss of $58.8 million for the second quarter of 2020. They entered into a collaboration agreement with Biogen on the LRRK2 program and commenced dosing of DNL310 in Hunter syndrome patients.

  • Entered into a Collaboration Agreement with Biogen on LRRK2 program for Parkinson’s disease and certain transport vehicle (TV) platform-enabled programs for neurodegenerative diseases.
  • Selected DNL151 to advance into late stage clinical studies in Parkinson’s disease patients.
  • Commenced dosing of DNL310 in Hunter syndrome patients.
  • Publication of two scientific papers describing blood-brain barrier transport vehicle delivery technology.

Headline financials

Total Revenue

$5.85M

Previous: $4.2M+39.3%
EPS (adj)

-$0.56

Previous: -$0.61+8.2%
Capital Expenditures

-$1.19M

Previous: -$12.3M+90.3%
Free Cash Flow

-$60M

Previous: -$70.6M+15.1%
Net Income

-$58.8M

Previous: -$58.3M-0.7%
Operating Income

-$61.3M

Previous: -$62.8M+2.4%
Gross Profit

$5.85M

No prior period
Cash & Equivalents

$137M

No prior period
Total Assets

$647M

No prior period
Stock-Based Comp

$12.5M

No prior period

Revenue & EPS history

Denali Therapeutics · Revenue · Quarterly

$5.85M

Q2 2020+39.3%vs Q2 2019
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

This press release contains forward-looking statements regarding Denali's progress and business plans, expectations regarding the proposed transaction with Biogen, and plans to conduct clinical development activities and commercialize products.

Tailwinds

  • plans to conduct clinical development activities
  • plans to commercialize products
  • LRRK2 inhibitors as modifying therapy for Parkinson’s disease
  • plans, timelines and expectations related to DNL151
  • plans, timelines and expectations related to DNL310 and Denali’s TV technology

Headwinds

  • risks related to Denali’s business and operations caused directly or indirectly by the evolving COVID-19 pandemic
  • the risks that the proposed transaction with Biogen may not be completed in a timely manner or at all
  • the possibility that certain closing conditions to the proposed transaction will not be satisfied, including the finalization of a definitive collaboration agreement
  • risks related to obtaining the requisite regulatory approvals, including those required under antitrust laws
  • risk of the occurrence of any event, change or other circumstance that could give rise to the termination of Denali’s agreements with Biogen or any of Denali’s other collaboration agreements

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 Q2 2020

Historical avgQ2 2020

-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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