NASDAQ$HRTX

Heron Therapeutics Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Heron Therapeutics reported third quarter 2023 financial results and updated financial guidance.

Heron Therapeutics announced its near completion of the corporate restructuring plan and provided an optimistic outlook for profitability. The company updated its full-year 2023 net product sales guidance for the oncology care franchise to a range of $104 million to $106 million and anticipates full-year 2023 net product sales to be in the range of $123 million to $125 million.

  • Increased full-year 2023 Net Product Sales guidance for the oncology care franchise to a range of $104 million to $106 million from a prior range of $99 million to $103 million.
  • Anticipate full-year 2023 Net Product Sales to be in the range of $123 million to $125 million and full-year 2024 Net Product Sales to be in the range of $138 million to $158 million.
  • Full-year 2024 EBITDA (excluding stock compensation) expected to be in the range of ($22 million) to $3 million.
  • Cost reduction plan implemented decreasing operating expenses (excluding stock compensation and depreciation and amortization) by 26% in 2023 compared to 2022.

Headline financials

Total Revenue

$31.4M

Previous: $26.6M+18.4%
EPS (adj)

-$0.17

Previous: -$0.38+55.3%
Capital Expenditures

-$1.3M

Previous: -$1.41M+8.2%
Free Cash Flow

-$26.3M

Previous: -$43.3M+39.3%
Net Income

-$25M

Previous: -$41.9M+40.3%
Operating Income

-$24.9M

Previous: -$41.9M+40.5%
Gross Profit

$13.2M

Previous: $11.8M+11.7%
Cash & Equivalents

$34.9M

Previous: $50.4M-30.9%
Total Assets

$229M

Previous: $272M-15.7%
R&D Expense

$13.6M

No prior period
Stock-Based Comp

$6.68M

Previous: $11.2M-40.3%

Revenue & EPS history

Heron Therapeutics · Revenue · Quarterly

$31.4M

Q3 2023+18.4%vs Q3 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Heron Therapeutics · $31.4M total across 4 segments · Q3 2023

  • CINVANTI
    $23.3M+9.9%
  • ZYNRELEF
    $4.4M+63.0%
  • SUSTOL
    $3.4M+25.9%
  • APONVIE
    $300K

Forward guidance

Heron Therapeutics is updating guidance for the remainder of 2023 and establishing guidance for the full year 2024.

Tailwinds

  • Full-year 2023 net product sales are expected to be in the range of $123 million to $125 million.
  • Full-year 2023 net product sales guidance for the oncology care franchise is being increased to a range of $104 million to $106 million from a prior range of $99 million to $103 million.
  • EBITDA (excluding stock compensation) expected in the range of ($10 million) to ($6 million) in the fourth quarter of 2023.
  • Full-year 2024 net product sales are expected to be in the range of $138 million to $158 million, with our oncology care franchise growing 3% to 5% in 2024 over 2023. and the acute care franchise growing in excess of 48% year-over-year.
  • Full-year 2024 operating expenses (excluding stock compensation, depreciation and amortization) are expected to be in the range of $108 million to $116 million

Headwinds

  • Full-year 2024 EBITDA (excluding stock compensation) expected to be in the range of ($22 million) to $3 million.
  • Positive EBITDA (excluding stock compensation) is expected during the fourth quarter of 2024.
  • Expected year-end 2023 cash, cash equivalents, and short-term investments to exceed $65 million with additional access to $25 million from our working capital facility.
  • Gross margin is expected to improve from 41% in 2023 to 69% in 2024, and to over 75% in 2025 and beyond.
  • Inventory write-offs during the quarter totaled $7.5 million as a reflection of our reforecast of the ZYNRELEF® product launch.

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

-0.9%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.4%

Avg return

30 days after

48%

30 / 63 earnings

Positive

+57.6%

Q3 2023

Best reaction

-42.9%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-21.1%-29.8%-66.3%
Q4 2025+12.4%+6.5%-27.8%
Q3 2025-1.8%-6.8%+11.0%
Q1 2025+13.8%-0.9%-6.1%
Q4 2024+19.9%+49.1%+32.2%
Q3 2024-34.2%-35.3%-13.0%
Q2 2024-24.0%-24.7%-31.6%
Q1 2024+6.0%-2.5%+27.8%
Q4 2023+24.9%+27.0%+22.0%
Q3 2023+57.6%+98.2%+230.9%
Q2 2023+3.4%+1.9%-21.6%
Q1 2023-42.9%-48.6%-49.4%
Q4 2022-3.3%-18.3%+40.1%
Q3 2022-12.0%+0.6%-20.5%
Q2 2022+31.7%+48.5%+33.6%
Q1 2022-14.8%-12.7%-34.3%
Q4 2021-23.8%-29.7%-24.6%
Q3 2021+0.8%+10.1%-24.0%
Q2 2021-0.3%-6.4%-1.4%
Q1 2021+11.1%-16.7%-11.2%
Q4 2020+1.1%+1.3%-14.7%
Q3 2020-5.1%-0.1%+1.5%
Q2 2020-9.4%-8.3%-18.8%
Q1 2020+2.4%+7.2%+34.1%
Q4 2019-1.0%-11.4%-41.6%
Q3 2019-2.3%+4.8%+24.1%
Q2 2019+0.5%+10.3%+10.3%
Q1 2019+6.3%+7.0%+4.6%
Q4 2018-1.4%-1.8%-15.3%
Q3 2018+3.8%-4.6%-8.1%
Q2 2018+2.5%+1.8%-2.6%
Q1 2018+1.2%+4.3%+0.3%
Q4 2017-10.2%-6.2%+21.9%
Q3 2017-0.3%+1.9%-4.2%
Q2 2017-1.6%-0.6%+0.9%
Q1 2017-9.3%-8.9%-13.7%
Q4 2016+0.4%+3.2%+6.5%
Q3 2016+13.3%+7.7%+7.3%
Q2 2016+5.1%+8.0%-2.4%
Q1 2016-14.9%
Q3 2015-0.5%
Q2 2015-1.5%
Q1 2015+1.4%
Q4 2014+5.4%
Q3 2014-5.8%
Q2 2014-0.1%
Q1 2014+1.1%
Q4 2013+3.7%
Q3 2013+2.2%
Q2 2013-2.2%
Q1 2013+6.8%
Q4 2012-2.9%
Q3 2012-3.3%
Q2 2012-5.9%
Q1 2012+2.3%
Q4 2011+18.2%
Q3 2011+0.0%
Q2 2011+3.6%
Q1 2011+5.3%
Q4 2010-21.3%
Q3 2010-26.9%
Q2 2010-4.7%
Q1 2010-12.8%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro