NASDAQ$HALO

Halozyme Therapeutics Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported fourth quarter revenue of $102.0 million with GAAP diluted earnings per share of $0.46 and non-GAAP diluted earnings per share of $0.42.

Halozyme Therapeutics reported a decrease in revenue for the fourth quarter, primarily driven by a decrease in revenue under collaboration agreement and product sales, partially offset by an increase in royalty revenue. Despite the revenue decrease, the company saw a strong performance across its business, highlighted by record full year revenue from royalties.

  • Fourth quarter revenue was $102.0 million, compared to $121.7 million for the fourth quarter of 2020.
  • GAAP diluted earnings per share was $0.46, compared with $0.50 in the fourth quarter of 2020.
  • Non-GAAP diluted earnings per share was $0.42, compared with diluted earnings per share of $0.56 in the fourth quarter of 2020.
  • Royalty revenue increased by 96% to $62.6 million compared to $32.0 million in the prior year period.

Headline financials

Total Revenue

$102M

Previous: $122M-16.2%
EPS (adj)

$0.42

Previous: $0.50-16.0%
Capital Expenditures

$158K

Previous: $1.7M-90.7%
Free Cash Flow

$82.4M

Previous: $49.2M+67.3%
Net Income

$66.8M

Previous: $73.2M-8.7%
Operating Income

$56.5M

Previous: $77.6M-27.2%
Gross Profit

$80.4M

Previous: $6.18M+1200.6%
Cash & Equivalents

$119M

Previous: $148M-19.6%
Total Assets

$1.1B

Previous: $580M+90.4%
Stock-Based Comp

$5.13M

Previous: $4.2M+22.2%

Revenue & EPS history

Halozyme · Revenue · Quarterly

$102M

Q4 2021-16.2%vs Q4 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Halozyme · $75M total across 2 segments · Q4 2021

  • Royalties
    $62.6M+95.8%
  • Revenues under collaborative agreements
    $12.3M-78.5%

Forward guidance

The Company is reiterating its financial guidance for 2022 first provided on January 10, 2022.

Tailwinds

  • Total revenue of $530 million to $560 million, representing growth of 20%-26% over 2021 total revenue.
  • Revenue from royalties to increase approximately 50% over revenue from royalties in 2021 to approximately $300 million.
  • GAAP operating income of $350 million to $380 million, representing growth of 27%-38% over 2021 GAAP operating income, resulting in operating margins greater than 65%.
  • GAAP net income of $270 million to $295 million; and non-GAAP net income of $290 million to $315 million.
  • GAAP diluted earnings per share of $1.90 to $2.05, inclusive of the first full year of income tax expense, projected to be $0.55-$0.60 per share.

Headwinds

  • The Company notes that 2022 will be the first full fiscal year in which Halozyme will record income tax expense as part of its income statement.
  • The Company's earnings per share guidance does not consider the impact of potential future share repurchases.

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 Q4 2021

Historical avgQ4 2021

+1.8%

Avg return

Earnings day

+4.4%

Avg return

5 days after

+1.8%

Avg return

30 days after

62%

32 / 52 earnings

Positive

+18.2%

Q1 2025

Best reaction

-12.8%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.7%+1.1%+6.5%
Q4 2025-9.0%-12.2%-21.2%
Q3 2025+2.7%+3.1%-4.9%
Q1 2025+18.2%+12.1%-8.6%
Q3 2024+13.0%+16.1%-4.7%
Q2 2024+3.9%+5.9%+17.2%
Q1 2024+2.8%+5.6%+25.9%
Q4 2023+6.3%+12.4%+11.4%
Q3 2023+9.1%+4.7%+12.3%
Q2 2023+1.5%+4.1%-6.8%
Q1 2023+13.9%+8.9%+12.8%
Q4 2022+0.1%-1.0%-32.7%
Q3 2022+7.4%+16.6%+25.0%
Q2 2022-2.1%-4.2%-11.9%
Q1 2022+3.3%+8.2%+20.4%
Q4 2021+3.1%+8.6%+18.3%
Q3 2021+2.6%+4.3%-15.0%
Q2 2021+1.8%+2.4%+3.8%
Q1 2021-10.3%-9.5%-17.2%
Q4 2020+5.7%-7.1%-15.2%
Q3 2020+12.9%+34.6%+45.2%
Q2 2020-2.7%-3.7%-3.2%
Q1 2020+0.2%+2.7%-1.4%
Q4 2019-4.7%-10.4%-22.4%
Q3 2019+6.4%+13.9%+12.8%
Q2 2019-0.9%-5.1%-5.3%
Q1 2019-3.1%-5.9%-10.9%
Q4 2018-0.4%+1.8%-8.2%
Q3 2018+0.7%+0.6%-1.6%
Q2 2018+0.3%-2.6%+2.5%
Q1 2018-7.3%-3.0%-7.2%
Q4 2017+3.8%+7.2%+9.9%
Q3 2017+12.2%+6.9%+11.5%
Q2 2017-4.0%-9.7%-0.7%
Q1 2017-1.6%+3.1%-7.3%
Q4 2016+0.2%+5.6%+1.2%
Q3 2016+14.2%+48.7%+33.7%
Q2 2016-0.4%+1.6%+6.2%
Q1 2016+3.7%
Q4 2015+5.9%
Q3 2015-12.8%
Q2 2015-1.4%
Q1 2015+2.8%
Q4 2014+1.1%
Q3 2014-3.3%
Q2 2014+1.7%
Q3 2010-1.4%
Q3 2011-1.4%
Q2 2010-3.3%
Q2 2011-3.3%
Q1 2011+5.2%
Q1 2010-2.9%

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