NASDAQ$VERU

Veru Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Net revenues increased by 43% and gross profit rose by 61%.

Veru Inc. reported a strong fiscal 2020 second quarter with net revenues increasing by 43% and gross profit up by 61%. The growth was primarily driven by substantial growth in prescription sales of FC2. The company also made significant clinical progress in advanced prostate cancer with VERU-111 and initiated a Phase 2 clinical study for VERU-111 as a potential treatment for COVID-19.

  • Net revenues increased 43% to $9.9 million from $7.0 million.
  • Gross profit increased 61% to $7.4 million from $4.6 million.
  • Gross margin climbed to 75% of net revenues from 66%.
  • FC2 US prescription net revenues grew 168% to $7.0 million from $2.6 million.

Headline financials

Total Revenue

$9.94M

Previous: $6.98M+42.5%
EPS (adj)

-$0.01

Previous: -$0.06+83.3%
Capital Expenditures

-$54.7K

Previous: -$644.00-8390.7%
Free Cash Flow

-$865K

Previous: -$4.03M+78.6%
Net Income

-$811K

Previous: -$4.03M+79.9%
Operating Income

-$300K

Previous: -$2.12M+85.9%
Gross Profit

$7.44M

Previous: $4.61M+61.4%
Cash & Equivalents

$2.56M

Previous: $5.9M-56.6%
Total Assets

$55.9M

Previous: $51M+9.5%
Stock-Based Comp

$682K

No prior period

Revenue & EPS history

Veru · Revenue · Quarterly

$9.94M

Q2 2020+42.5%vs Q2 2019
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Forward guidance

Veru is focused in prostate cancer and oncology, and will pursue COVID-19 indication with VERU-111, due to the urgency of the current global pandemic.

Tailwinds

  • Initiated Phase 2 clinical trial to assess the efficacy of VERU-111 in combating COVID-19.
  • Expect the first patient to be dosed within 2 weeks for COVID-19 trial.
  • VERU-111 has the potential to treat both SARS-CoV-2 infection and the associated reactive severe lung inflammation in COVID-19 patients at high risk for ARDS.
  • Applied for significant grant funding through both BARDA and DARPA to expedite the clinical development program of VERU-111 for COVID-19.
  • Plan to advance Zuclomiphene Citrate to a Phase 3 clinical trial in men with advanced prostate cancer who experience moderate to severe hot flashes with a potential start date in late calendar year 2020.

Headwinds

  • There can be no assurances that any grant funding for VERU-111 COVID-19 will be provided.
  • VERU-100 is anticipated to enter a Phase 2 dose-finding study with a potential start date in the third quarter of calendar year 2020.
  • The expected submission of the NDA for TADFIN is the fourth quarter of calendar year 2020 or early 2021.
  • The Company may be unable to develop a drug that successfully treats the COVID-19 virus in a timely manner, if at all.
  • Pursuit of a COVID-19 treatment candidate may cause delays in or otherwise negatively impact other development programs.

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 Q2 2020

Historical avgQ2 2020

+1.5%

Avg return

Earnings day

+8.3%

Avg return

5 days after

+9.6%

Avg return

30 days after

45%

30 / 66 earnings

Positive

+83.7%

Q4 2020

Best reaction

-23.5%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+1.8%-6.7%+33.8%
Q1 2026-0.4%-0.9%+3.5%
Q4 2025-8.4%-6.1%+10.2%
Q3 2025-12.0%+0.0%-0.8%
Q2 2025+4.1%+4.0%+24.0%
Q1 2025-4.5%+0.0%-12.7%
Q4 2024-1.3%-9.7%+2.8%
Q3 2024+7.1%+6.5%+10.4%
Q4 2023+3.5%+11.8%-4.7%
Q2 2024-16.0%-18.4%-43.6%
Q1 2024-13.7%-13.6%+47.7%
Q3 2023+5.6%+3.7%-4.6%
Q2 2023-23.5%-27.5%-12.1%
Q1 2023-19.1%-21.8%-57.5%
Q4 2022+2.9%-0.5%-1.3%
Q3 2022+62.1%+89.0%+32.3%
Q2 2022+59.3%+91.2%+60.8%
Q1 2022+9.4%+7.4%-8.8%
Q4 2021-12.3%-8.1%-14.8%
Q3 2021+8.8%-2.0%+31.3%
Q2 2021-3.2%+3.7%+18.7%
Q1 2021-2.3%+7.8%-22.3%
Q4 2020+83.7%+198.5%+193.8%
Q3 2020-11.6%-10.9%-9.9%
Q2 2020+13.9%+10.5%-5.4%
Q1 2020+0.9%-0.9%-29.8%
Q4 2019-1.6%+17.1%+64.5%
Q3 2019-14.0%-11.0%-16.2%
Q2 2019-4.8%-1.8%+20.8%
Q1 2019-8.1%-10.7%+0.0%
Q4 2018-4.9%+0.7%-1.4%
Q3 2018+1.0%+1.0%-13.6%
Q2 2018-1.2%+6.6%+18.7%
Q1 2018+0.8%+2.3%+50.4%
Q4 2017+28.9%+29.8%+10.5%
Q3 2017-11.3%-4.0%+2.0%
Q2 2017-1.0%-2.9%+17.6%
Q1 2017+1.9%+3.8%-1.9%
Q4 2016-6.2%-8.8%-10.6%
Q3 2016-2.3%+1.6%+2.3%
Q2 2016-12.3%
Q1 2016+10.2%
Q4 2015+0.6%
Q3 2015+9.9%
Q2 2015-8.1%
Q1 2015+2.9%
Q4 2014-8.5%
Q3 2014-5.8%
Q2 2014-3.7%
Q1 2014-4.1%
Q4 2013+3.4%
Q3 2013-3.3%
Q2 2013+5.8%
Q1 2013-4.2%
Q4 2012-0.7%
Q3 2012+4.7%
Q2 2012-9.2%
Q1 2011+1.5%
Q1 2012+4.7%
Q4 2009+5.5%
Q4 2011+5.5%
Q2 2011+5.5%
Q4 2010-5.4%
Q3 2010-5.4%
Q3 2011-5.4%
Q2 2010+0.9%

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