NASDAQ$ZYME

Zymeworks Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Zymeworks reported its fourth quarter and full year 2022 financial results, highlighting significant revenue growth and a shift to net income, driven by strategic collaborations and a strengthened financial position.

Zymeworks Inc. reported a substantial increase in revenue for the fourth quarter and full year 2022, primarily due to a significant licensing agreement with Jazz Pharmaceuticals. The company achieved net income for the year, a significant improvement from a net loss in the previous year, and ended 2022 with a strong cash position, extending its cash runway through 2026.

  • Total revenue for the fourth quarter of 2022 was $402.493 million, a significant increase from $19.870 million in the same period last year.
  • The company reported net income of $309.431 million for Q4 2022, a substantial improvement from a net loss of $39.152 million in Q4 2021.
  • Basic EPS for Q4 2022 was $4.65, compared to -$0.76 in Q4 2021.
  • Zymeworks ended 2022 with $492.232 million in cash, cash equivalents, and short-term investments, with an expected cash runway through 2026.

Headline financials

Total Revenue

$402M

No prior period
EPS (adj)

$4.71

No prior period
Research & Development Expense

$53M

No prior period
General & Administrative Expense

$30.1M

No prior period
Total Operating Expenses

$83.1M

No prior period
Diluted EPS

$4.65

No prior period
Basic Shares Outstanding

66.5M

No prior period
Diluted Shares Outstanding

66.6M

No prior period
Total Stockholders' Equity

$493M

No prior period
Capital Expenditures

-$1.71M

No prior period
Free Cash Flow

$15.3M

No prior period
Net Income

$309M

No prior period
Operating Income

$319M

No prior period
Gross Profit

$13.6M

No prior period
Cash & Equivalents

$492M

No prior period
Total Assets

$649M

No prior period
R&D Expense

$25.5M

No prior period

Revenue & EPS history

Zymeworks · Revenue · Quarterly

$402M

Q4 2023
Beat estimate in 3 of 4 quarters(75%)
ActualEstimate

Forward guidance

Zymeworks expects to have cash resources to fund planned operations through at least the end of 2026, with a net operating cash burn for calendar year 2023 projected between $90 million and $120 million, including planned capital expenditures of approximately $15 million.

Tailwinds

  • Expected cash runway through 2026, potentially beyond, due to improved financial position and reduced cash burn rate.
  • Continued advancement of zanidatamab with multiple upcoming clinical catalysts, including pivotal study data in 2024.
  • IND filings for new preclinical product candidates ZW171 and ZW191 on track for 2024.
  • Anticipated additional milestone payments from existing licensing agreements in 2023 and 2024.
  • Plans to host a conference call in April 2023 to discuss preclinical product candidates and zanidatamab zovodotin data.

Headwinds

  • Research and development expenditures are expected to increase over time, subject to periodic fluctuations.
  • Current challenging macroeconomic conditions may impact business operations.
  • Potential for product candidates to fail in development or not receive required regulatory approvals.
  • Regulatory agencies may impose additional requirements or delay clinical trial initiation.
  • Inability to maintain or enter into new partnerships or strategic collaborations could impact future growth.

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 Q4 2023

Historical avgQ4 2023

-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
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%

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