NASDAQ$KRRO

Korro Bio Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Korro Bio completed merger with Frequency Therapeutics and private placement.

Korro Bio completed its merger with Frequency Therapeutics and a $117 million private placement. The combined company, operating as Korro Bio, is expected to have approximately $170 million in cash to fund operations into 2026, advancing its RNA editing programs.

  • Korro Bio closed merger with Frequency Therapeutics and a $117 million private placement.
  • Combined company to operate as Korro Bio (Nasdaq: KRRO) starting November 6, 2023.
  • Post-transaction cash of approximately $170 million expected to fund operations into 2026.
  • Focus on advancing RNA editing programs, including lead product candidate in Alpha-1 antitrypsin deficiency (AATD).

Headline financials

Total Revenue

$580K

Previous: $0.00
EPS (adj)

-$15.50

Previous: -$0.55-2718.2%
Capital Expenditures

-$100K

Previous: -$2.85M+96.5%
Free Cash Flow

-$11.7M

Previous: -$22.4M+47.7%
Net Income

-$11.6M

Previous: -$19.5M+40.6%
Operating Income

-$12.7M

Previous: -$20.3M+37.5%
Gross Profit

$580K

Previous: $594K-2.4%
Cash & Equivalents

$41.7M

Previous: $43.8M-4.8%
Total Assets

$46.3M

Previous: $136M-65.9%
R&D Expense

$2.44M

No prior period
Stock-Based Comp

$2.93M

Previous: $5.6M-47.7%

Revenue & EPS history

Korro Bio · Revenue · Quarterly

$580K

Q3 2023
Beat estimate in 2 of 3 quarters(67%)
ActualEstimate

Forward guidance

Korro Bio expects to fund operations into 2026 with its current cash reserves and advance its RNA editing programs.

Tailwinds

  • Advancing lead product candidate in AATD through a clinical milestone.
  • Progression of additional product candidates from the pipeline into the clinic.
  • Demonstrating applicability of the RNA editing platform into several additional tissue types.
  • Nomination of a development candidate for its AATD program in late 2023.
  • Submission of a regulatory filing in the second half of 2024.

Headwinds

  • Risks related to biopharmaceutical development generally.
  • Risks related to conducting pre-clinical studies and pre-clinical trials.
  • Risks related to protecting and enforcing intellectual property.
  • Risks related to integrating operations post-merger and operating the combined company as a public company.
  • Potential adverse reactions or changes to relationships with customers, employees, suppliers or other parties resulting from the completion of the merger.

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 Q3 2023

Historical avgQ3 2023

-4.6%

Avg return

Earnings day

+4.3%

Avg return

5 days after

+1.9%

Avg return

30 days after

43%

10 / 23 earnings

Positive

+20.6%

Q4 2023

Best reaction

-79.3%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.3%-16.3%-20.5%
Q4 2025-0.4%+14.5%+20.4%
Q3 2025-79.3%-80.2%-73.8%
Q1 2025+4.1%-2.0%-11.8%
Q4 2024-5.3%-5.7%-1.6%
Q3 2024-25.2%-35.3%-40.2%
Q2 2024+10.4%+22.1%+12.4%
Q1 2024+5.0%+8.8%-15.4%
Q4 2023+20.6%+22.6%-20.3%
Q3 2023+9.4%+192.6%+246.3%
Q2 2023-4.1%-1.4%-39.0%
Q1 2023-5.6%+6.2%+1.9%
Q4 2022+3.1%-2.4%-24.2%
Q3 2022-5.8%+4.4%-11.1%
Q2 2022-11.1%-10.7%-4.9%
Q1 2022+4.0%+1.6%-8.0%
Q3 2021+3.2%-3.5%-17.0%
Q2 2021+0.5%-9.9%-12.3%
Q1 2021-20.3%-14.6%-4.6%
Q3 2020-6.4%+4.6%+59.7%
Q2 2020-1.7%-4.2%-19.8%
Q1 2020-1.1%+5.1%+16.0%
Q3 2019+4.8%+3.6%+11.4%

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