NASDAQ$ZYME

Zymeworks Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Zymeworks reported a decrease in revenue and an increase in net loss for the first quarter of 2024 compared to the same period in 2023, while maintaining a strong cash position.

Zymeworks reported a net loss of $31.7 million for the first quarter of 2024, an increase from $24.4 million in the same period last year. Revenue decreased to $10.0 million from $35.6 million in Q1 2023, primarily due to the transfer of responsibility for certain clinical trials to Jazz Pharmaceuticals. Despite the increased net loss, the company maintains a strong cash position of $420.5 million, projecting a cash runway into the second half of 2027.

  • Reported $420.5 million in cash resources as of March 31, 2024, with a projected cash runway into 2H 2027.
  • Completed rolling biologics license application (BLA) filing for zanidatamab as second-line treatment for biliary tract cancers (BTC) in the U.S. by partner Jazz Pharmaceuticals.
  • Expected initiation of a Phase 3 clinical trial for zanidatamab in 2H 2024 for breast cancer patients who have progressed on trastuzumab deruxtecan (T-DXd).
  • Presented five abstracts at the American Association for Cancer Research (AACR) annual meeting highlighting R&D pipeline.

Headline financials

Total Revenue

$10M

Previous: $35.6M-71.8%
EPS

-$0.42

Previous: -$0.37-13.5%
Research and Development Expense

$32M

No prior period
General and Administrative Expense

$15.8M

No prior period
Total Operating Expenses

$47.8M

No prior period
Diluted EPS

-$0.42

No prior period
Basic Weighted Average Shares

76.2M

No prior period
Diluted Weighted Average Shares

76.2M

No prior period
Total Stockholders' Equity

$339M

No prior period
Capital Expenditures

-$185K

Previous: -$386K+52.1%
Free Cash Flow

-$31.8M

Previous: -$24.7M-28.7%
Net Income

-$31.7M

Previous: -$24.4M-30.0%
Operating Income

-$37.8M

Previous: -$27.3M-38.6%
Cash & Equivalents

$115M

Previous: $182M-36.8%
Total Assets

$554M

Previous: $601M-7.8%
R&D Expense

$32M

No prior period

Revenue & EPS history

Zymeworks · Revenue · Quarterly

$10M

Q1 2024-71.8%vs Q1 2023
Beat estimate in 4 of 5 quarters(80%)
ActualEstimate

Revenue by segment

Zymeworks · $48.7M total across 1 segment · Q2 2025

  • Research and Development Collaborations
    $48.7M

Forward guidance

Zymeworks anticipates its existing cash resources, combined with certain anticipated regulatory milestone payments, will fund planned operations into the second half of 2027. The company expects to initiate a Phase 3 clinical trial for zanidatamab in breast cancer in 2H 2024 and submit two IND/foreign equivalent submissions for ZW191 and ZW171 in 2024.

Tailwinds

  • Projected cash runway into 2H 2027 with current cash resources and anticipated regulatory milestone payments.
  • Expected initiation of a Phase 3 clinical trial for zanidatamab in 2H 2024 for breast cancer patients.
  • Plans to submit two IND and foreign equivalent submissions for ZW191 and ZW171 in 2024 to commence Phase 1 clinical studies.
  • Marketing authorization application (MAA) to the European Medicines Agency (EMA) for zanidatamab in BTC are proceeding.
  • Continued presentation of preclinical data for early-stage pipeline throughout 2024.

Headwinds

  • Any of Zymeworks' or its partners' product candidates may fail in development or not receive required regulatory approvals.
  • Zymeworks may not achieve milestones or receive additional payments under its collaborations.
  • Regulatory agencies may impose additional requirements or delay the initiation of clinical trials.
  • Clinical trials may not demonstrate safety and efficacy of any product candidates.
  • Inability to maintain or enter into new partnerships or strategic collaborations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 13 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-1.2%

Avg return

Earnings day

-0.4%

Avg return

5 days after

+7.6%

Avg return

30 days after

38%

5 / 13 earnings

Positive

+1.4%

Q1 2023

Best reaction

-8.0%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2025
Q1 2026-3.6%-13.5%-13.0%
Q4 2025+0.1%+3.4%+11.4%
Q3 2025-8.0%+8.2%+49.1%
Q1 2025-0.1%-0.6%+11.3%
Q4 2024-8.0%-11.2%-16.9%
Q3 2024+1.0%+1.2%+11.7%
Q2 2024+0.0%+4.3%+22.4%
Q1 2024+0.0%-8.3%-18.4%
Q4 2023+0.0%+1.6%+3.8%
Q3 2023+1.2%+0.1%+31.2%
Q3 2021+0.0%-1.3%+10.3%
Q2 2023+0.8%-3.6%-7.5%
Q1 2023+1.4%+14.1%+2.9%

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