NASDAQ$ZLAB

Zai Lab Limited-ADR · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Achieved strong growth in commercial products and made significant progress in late-stage development programs.

Zai Lab reported a 45% year-over-year increase in total product revenue, reaching $68.9 million in the second quarter of 2023. The company also gained approval for VYVGART in China and saw positive data for efgartigimod in CIDP. They anticipate corporate profitability by the end of 2025.

  • Total product revenue of $68.9 million for Q2 2023, representing 45% year-over-year growth (53% at constant exchange rate).
  • VYVGART approved in China for generalized myasthenia gravis (gMG), with launch preparations underway.
  • Primary endpoint met in ADHERE trial of VYVGART Hytrulo for treatment of chronic inflammatory demyelinating polyneuropathy (CIDP).
  • Cash position of $876.4 million as of June 30, 2023.

Headline financials

Total Revenue

$68.9M

Previous: $48.2M+42.9%
EPS (adj)

-$1.25

Previous: -$1.44+13.2%
Capital Expenditures

-$5.23M

Previous: -$13.5M+61.2%
Free Cash Flow

-$126M

Previous: -$151M+16.7%
Net Income

-$121M

Previous: -$138M+12.4%
Operating Income

-$89.5M

Previous: -$98.7M+9.3%
Gross Profit

$45.1M

Previous: $30.8M+46.6%
Cash & Equivalents

$859M

Previous: $681M+26.2%
Total Assets

$1.11B

Previous: $1.42B-22.0%
Stock-Based Comp

$20.5M

Previous: $14.2M+44.2%

Revenue & EPS history

Zai Lab · Revenue · Quarterly

$68.9M

Q2 2023+42.9%vs Q2 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Zai Lab · $47.6M total across 2 segments · Q2 2023

  • ZEJULA
    $43M+26.1%
  • NUZYRA
    $4.6M+253.8%

Forward guidance

Zai Lab expects to have over 15 commercial-stage products and at least one IND per year for global best-in-class/first-in-class assets by the end of 2028. They anticipate a revenue compound annual growth rate of over 50% from 2023 to 2028 and expect to reach corporate profitability by the end of 2025.

Tailwinds

  • Over 15 commercial-stage products in 2028 (versus 5 today)
  • Over 8 clinical-stage global-right products in 2028 with at least one Investigational New Drug application (IND) per year (versus 3 today)
  • Revenue compound annual growth rate (CAGR) of >50% from 2023 to 2028
  • Significant revenue growth
  • Expanding operating margins to lead to corporate profitability by the end of 2025

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 2023

Historical avgQ2 2023

-0.1%

Avg return

Earnings day

+0.3%

Avg return

5 days after

-0.5%

Avg return

30 days after

45%

13 / 29 earnings

Positive

+26.0%

Q1 2024

Best reaction

-11.2%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.9%-7.0%-20.9%
Q4 2025+1.7%-8.6%-7.2%
Q3 2025-6.4%-11.3%-21.4%
Q1 2025+2.5%+0.9%+34.4%
Q4 2024-2.0%-3.1%+6.3%
Q3 2024-3.7%-13.0%-14.1%
Q2 2024-5.6%-7.8%+11.3%
Q1 2024+26.0%+29.0%+19.9%
Q4 2023-0.9%+0.5%-23.7%
Q3 2023+7.4%+0.9%-1.5%
Q2 2023-11.2%-5.4%+3.5%
Q1 2023+1.4%-9.3%-24.2%
Q4 2022-0.6%+7.3%-10.5%
Q3 2022+1.9%+23.9%+18.7%
Q2 2022-5.0%-6.2%-8.0%
Q1 2022-2.1%+30.0%+5.6%
Q4 2021-4.0%-26.0%-19.6%
Q3 2021+0.7%-2.3%-22.3%
Q2 2021+0.6%+0.9%+0.4%
Q1 2021-5.1%-3.3%+8.3%
Q4 2020+0.3%-7.0%-9.6%
Q4 2019-1.4%-2.7%+17.0%
Q1 2020-8.7%+3.1%+18.3%
Q2 2019+4.3%+4.1%-4.0%
Q1 2019+3.7%+6.7%-9.7%
Q4 2018+10.4%+10.4%+1.6%
Q3 2018+6.7%+13.6%+13.1%
Q4 2017-5.3%-8.8%+22.8%
Q3 2017-2.2%-0.6%+0.3%
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016

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