NASDAQ$WVE

Wave Life Sciences Ltd · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Wave Life Sciences reported its second quarter 2022 financial results and provided a business update.

Wave Life Sciences reported a net loss of $41.3 million and revenue of $0.4 million for the second quarter of 2022. The company's cash, cash equivalents, and short-term investments totaled $148.2 million as of June 30, 2022, which is expected to fund operating and capital expenditure requirements to the end of 2023.

  • WVE-006 announced as investigational development candidate for AATD with CTA submissions expected in 2023.
  • Data for ongoing clinical programs, including WVE-004, WVE-003, and WVE-N531, expected in 2H 2022.
  • Positive target engagement data in C9-ALS/FTD with single low doses of WVE-004 highlighted at ENCALS conference.
  • $70 million financing in June 2022 strengthened balance sheet and extended cash runway to the end of 2023.

Headline financials

Total Revenue

$375K

Previous: $2.78M-86.5%
EPS (adj)

-$0.62

Previous: -$0.78+20.5%
Research and Development Expense

$29.7M

Previous: $31.6M-6.0%
General and Administrative Expense

$12.8M

Previous: $11M+16.7%
Capital Expenditures

-$700K

Previous: -$447K-56.6%
Free Cash Flow

-$42M

Previous: -$39.2M-7.1%
Net Income

-$41.3M

Previous: -$38.8M-6.5%
Operating Income

-$42.2M

Previous: -$39.8M-5.9%
Gross Profit

-$29.4M

Previous: -$28.9M-1.7%
Cash & Equivalents

$123M

Previous: $144M-14.4%
Total Assets

$213M

Previous: $206M+3.3%

Revenue & EPS history

Wave Life Sciences · Revenue · Quarterly

$375K

Q2 2022-86.5%vs Q2 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

Wave expects to submit clinical trial applications for WVE-006 in 2023. Additional single and multidose clinical data for WVE-004 expected in 2H 2022. Clinical data expected in 2H 2022 for WVE-003 to provide further insight into the clinical effects of PN chemistry and enable decision-making for this program. Clinical data, including muscle biopsies, expected in 4Q 2022 for WVE-N531 to provide further insight into the clinical effects of PN chemistry and enable decision-making for this program.

Tailwinds

  • Wave expects to submit clinical trial applications for WVE-006 in 2023.
  • Additional single and multidose clinical data for WVE-004 expected in 2H 2022.
  • Wave expects to use these data to optimize WVE-004 dose level and frequency, as well as to enable discussions with regulatory authorities regarding the next phase of development later in 2022.
  • Planning underway to initiate an open-label extension (OLE) clinical trial in 2H 2022.
  • Clinical data expected in 2H 2022 for WVE-003 to provide further insight into the clinical effects of PN chemistry and enable decision-making for this program.

Headwinds

  • Clinical data, including muscle biopsies, expected in 4Q 2022 for WVE-N531 to provide further insight into the clinical effects of PN chemistry and enable decision-making for this program.

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 Q2 2022

Historical avgQ2 2022

+1.9%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+8.2%

Avg return

30 days after

48%

20 / 42 earnings

Positive

+42.4%

Q4 2023

Best reaction

-16.3%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+8.4%+5.3%-6.9%
Q4 2025+5.6%-7.6%-56.2%
Q3 2025-10.3%-9.9%+157.4%
Q1 2025+0.5%-1.5%+11.2%
Q4 2024+11.7%-6.5%-33.9%
Q3 2024-4.6%-16.8%-15.8%
Q2 2024-9.5%-6.9%-14.2%
Q1 2024-3.9%-0.2%-0.7%
Q4 2023+42.4%+42.0%+23.4%
Q3 2023-8.9%-5.6%-21.7%
Q2 2023+14.4%+3.0%+3.9%
Q1 2023-0.8%+8.2%+23.6%
Q4 2022-11.1%-11.8%+1.9%
Q3 2022-7.6%-19.3%-1.3%
Q2 2022+37.3%+45.1%+26.7%
Q1 2022-16.3%-13.6%+46.3%
Q4 2021-5.7%-17.1%-17.5%
Q3 2021+1.5%-3.2%-25.7%
Q2 2021+7.0%-0.4%+12.3%
Q1 2021+1.5%+9.6%+18.3%
Q4 2020-7.8%-8.9%-40.5%
Q3 2020+2.8%+11.9%+19.3%
Q2 2020+1.5%-0.5%+36.9%
Q1 2020+28.2%+30.2%+28.1%
Q4 2019-3.2%+9.8%+6.6%
Q3 2019-1.0%+3.1%+20.9%
Q2 2019-3.4%-9.4%+3.1%
Q1 2019-0.8%-1.0%-10.7%
Q4 2018+6.1%+7.6%-7.3%
Q3 2018-12.3%-15.3%+4.4%
Q2 2018+10.7%+16.4%+25.7%
Q1 2018-6.9%-9.7%+11.5%
Q4 2017-7.9%-11.7%-10.5%
Q3 2017+3.2%+12.0%+66.5%
Q2 2017-7.7%-12.8%+18.4%
Q1 2017+2.6%+7.9%-2.2%
Q4 2016-2.0%-4.4%-14.8%
Q3 2016+15.3%+18.2%+5.2%
Q2 2016+5.7%+13.5%+26.9%
Q1 2016-2.7%
Q4 2015-3.1%
Q3 2015+11.1%
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014

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