NASDAQ$SRRK

Scholar Rock Holding Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Scholar Rock reported full year 2022 financial results and highlighted business progress.

Scholar Rock reported full year 2022 financial results, with revenue at $33.2 million and a net loss of $134.5 million. The company ended the year with approximately $315 million in cash, cash equivalents and marketable securities.

  • Pivotal Phase 3 SAPPHIRE trial evaluating apitegromab is on track for completion in 2023, and 36-month extension data from Phase 2 TOPAZ trial is expected in mid-2023.
  • Phase 1 DRAGON trial of SRK-181 continues to advance with biomarker and clinical data updates planned in 2023.
  • The company expanded commercial experience with the recent appointment of Chief Commercial Officer.
  • Ended 2022 with approximately $315 million in cash, cash equivalents, and marketable securities, expected to fund operations into 2025.

Headline financials

Total Revenue

$33.2M

Previous: $4.05M+719.8%
EPS (adj)

-$0.46

Previous: -$0.97+52.6%
Capital Expenditures

$117K

Previous: $542K-78.4%
Free Cash Flow

-$29M

Previous: -$33M+12.0%
Net Income

-$135M

Previous: -$132M-2.1%
Operating Income

-$134M

Previous: -$130M-3.4%
Cash & Equivalents

$315M

Previous: $253M+24.7%
Total Assets

$358M

Previous: $304M+17.6%
Stock-Based Comp

$6.17M

Previous: $6.1M+1.1%

Revenue & EPS history

Scholar Rock · Revenue · Quarterly

$33.2M

Q4 2022+719.8%vs Q4 2021
Beat estimate in 0 of 2 quarters(0%)
ActualEstimate

Forward guidance

Scholar Rock expects to advance its clinical trials for apitegromab and SRK-181, with key milestones anticipated in 2023 and 2024. The company's cash runway is expected to fund operations into 2025.

Tailwinds

  • On track to complete enrollment of pivotal SAPPHIRE trial of apitegromab.
  • Looking forward to providing 36-month extension data from Phase 2 TOPAZ trial of apitegromab.
  • Planning to share biomarker and clinical updates throughout the year from the SRK-181 Phase 1 DRAGON trial.
  • Experienced team in place to advance the next phase of growth.
  • Strong balance sheet provides a clear line of sight to important anticipated milestones.

Headwinds

  • Clinical trial data may not be consistent with earlier data.
  • Dependence on third parties for development and manufacture of product candidates.
  • Competition from third parties developing products for similar uses.
  • Ability to obtain additional funding when needed to support business activities.
  • Impacts of public health pandemics such as COVID-19 on business operations and expectations.

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 Q4 2022

Historical avgQ4 2022

+3.6%

Avg return

Earnings day

+3.0%

Avg return

5 days after

+3.5%

Avg return

30 days after

58%

18 / 31 earnings

Positive

+24.6%

Q4 2023

Best reaction

-7.6%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.4%+4.4%-6.1%
Q4 2025+2.0%+4.2%+15.0%
Q3 2025+24.1%+32.0%+55.9%
Q2 2025-6.1%-14.9%-15.1%
Q1 2025-2.6%-3.9%+3.3%
Q4 2024-2.9%+0.2%-11.3%
Q3 2024-2.7%-5.9%+48.0%
Q1 2024-3.7%-11.4%-37.4%
Q4 2023+24.6%+24.2%+5.7%
Q3 2023-1.8%-17.5%+44.2%
Q2 2023+6.3%+11.6%-3.6%
Q1 2023+4.4%-0.1%-13.6%
Q4 2022+7.2%-1.9%-15.7%
Q3 2022+10.9%+0.2%+1.5%
Q2 2022+6.9%+32.9%+5.2%
Q1 2022+7.3%-5.2%-9.7%
Q4 2021-5.1%-9.5%-8.6%
Q3 2021+16.8%+24.2%-10.4%
Q2 2021+4.8%+7.5%+4.6%
Q1 2021-2.4%+0.1%+10.6%
Q4 2020+16.8%+21.4%-40.2%
Q3 2020-1.0%+2.8%+7.7%
Q2 2020+3.9%-4.1%+5.0%
Q1 2020-4.8%+6.9%+2.2%
Q4 2019+4.3%+9.4%-1.1%
Q3 2019-7.6%-14.5%+17.0%
Q2 2019+0.8%+11.9%+19.4%
Q1 2019+6.2%+8.6%-4.9%
Q4 2018+9.8%+2.3%-7.4%
Q3 2018+2.0%-10.0%-1.6%
Q2 2018-6.7%-11.9%+51.0%
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017

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