NASDAQ$DSGN

Design Therapeutics Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Design Therapeutics reported Q3 2023 financial results, announced a strategic realignment, and appointed Pratik Shah as CEO.

Design Therapeutics reported a net loss of $15.8 million for Q3 2023. The company is focusing on long-term growth, capital resource allocation, and cost savings, with current cash and securities expected to fund operations through 2028. A comprehensive portfolio update is planned for early 2024.

  • Strategic realignment initiated to prioritize long-term growth and optimize capital allocation.
  • Cash, cash equivalents, and marketable securities totaled $290.9 million as of September 30, 2023, expected to fund operations through the next five years.
  • Comprehensive portfolio update planned for early 2024, including corporate strategy and pipeline milestones.
  • Pratik Shah appointed as Chief Executive Officer to lead company turnaround.

Headline financials

EPS (adj)

-$0.28

Previous: -$0.32+12.5%
Capital Expenditures

-$53K

Previous: $310K-117.1%
Free Cash Flow

-$14.6M

Previous: -$14.2M-2.7%
Net Income

-$15.8M

Previous: -$17.7M+10.8%
Operating Income

-$18.8M

Previous: -$19.2M+1.9%
Gross Profit

-$137K

No prior period
Cash & Equivalents

$291M

Previous: $344M-15.5%
Total Assets

$300M

Previous: $355M-15.4%
R&D Expense

$13.3M

No prior period
Stock-Based Comp

$3.22M

Previous: $2.87M+12.1%

Revenue & EPS history

Design Therapeutics · Revenue · Quarterly

$0

Q1 2026

Forward guidance

Design Therapeutics anticipates providing an update on its corporate strategy and priorities, outlining milestones for its business and clinical pipeline in early 2024. The company expects its current cash and securities to fund its planned operating expenses through at least the next five years.

Tailwinds

  • Focus on long-term growth and strategic deployment of capital.
  • Prioritization of pipeline investment.
  • Extension of operating plans through at least the next five years.
  • Advancement of GeneTAC™ small molecules for various degenerative diseases.
  • Potential for transformative therapies for patient populations with unmet medical needs.

Headwinds

  • Risks associated with clinical trials and regulatory filings.
  • Dependence on third parties for conducting clinical trials and nonclinical studies.
  • Potential for undesirable side effects or other properties that could suspend or discontinue clinical trials.
  • Uncertainties associated with performing clinical trials, regulatory filings, and applications.
  • Competition in the industry.

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-2.2%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+3.2%

Avg return

30 days after

50%

10 / 20 earnings

Positive

+15.1%

Q4 2023

Best reaction

-71.7%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+3.8%-16.2%
Q4 2025+3.2%+0.7%+26.1%
Q3 2025+10.7%+10.8%+42.2%
Q2 2025-8.9%+14.5%+48.3%
Q1 2025+0.3%+10.3%+10.3%
Q4 2024+0.4%+2.5%-27.2%
Q3 2024-1.9%+16.3%+7.9%
Q1 2024+1.7%-3.0%-17.9%
Q4 2023+15.1%+50.8%+48.4%
Q3 2023+13.9%+10.4%+27.4%
Q2 2023-71.7%-72.8%-65.2%
Q1 2023-12.2%-12.6%-26.4%
Q4 2022-0.6%-8.1%-24.8%
Q3 2022-0.3%-0.8%-9.7%
Q2 2022+0.3%+13.5%+5.5%
Q1 2022-1.5%-2.4%+30.9%
Q4 2021-1.8%-0.8%-10.0%
Q3 2021+4.8%+10.7%-3.8%
Q2 2021+9.9%+7.9%+19.7%
Q1 2021-6.0%-18.0%-1.8%
Q4 2020
Q3 2020
Q2 2020
Q1 2020

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