Breaking Down Precision BioSciences, Inc. (DTIL) Financial Health: Key Insights for Investors

Are you keeping a close watch on the gene editing landscape, particularly Precision BioSciences (DTIL)? As a clinical-stage company utilizing the ARCUS® platform to develop in vivo gene editing therapies, 2024 has been a transformative year. The basic and diluted weighted-average common shares outstanding for the year ended December 31, 2024, were 6,832,982 and 6,883,911, respectively, compared to 3,841,405 for the year ended December 31, 2023. As of December 31, 2024, had 8,202,715 shares outstanding. As of March 20, 2025, had 10,481,931 shares outstanding, including 921,243 shares sold on March 19, 2025. With key programs like PBGENE-HBV and PBGENE-PMM advancing towards clinical trials, and a solid financial position supported by a $40 million equity raise, how will these factors influence its trajectory? Let's dive into the financial health of and what it means for investors.

Precision BioSciences, Inc. (DTIL) Revenue Analysis

To assess the financial health and potential investment value of Precision BioSciences, Inc. (DTIL), it's critical to understand the sources, trends, and composition of its revenue. A detailed look into these aspects provides insights into the company's operational performance and strategic positioning.

Based on the most recent information, Precision BioSciences, Inc. primarily generates revenue through strategic collaborations and licensing agreements centered around its ARCUS genome editing platform. These agreements involve partnerships with pharmaceutical and biotechnology companies, where Precision BioSciences receives upfront payments, research funding, and potential milestone payments tied to the achievement of specific development, regulatory, and commercial goals.

Analyzing the year-over-year revenue growth rate provides a view of the company's recent performance. For example, looking at the 2024 fiscal year data, we can observe how revenue has trended compared to previous years. Keep in mind that fluctuations in revenue are common in the biotechnology sector due to the nature of collaboration agreements and milestone achievements.

For the year ended December 31, 2024, Precision BioSciences reported total revenue of $17.7 million, a significant decrease of $27.9 million, or 61%, compared to the $45.6 million for the year ended December 31, 2023. This decrease was primarily due to a reduction in revenue recognized under the collaboration agreement with iECURE, which decreased $28.3 million from $31.3 million for the year ended December 31, 2023, to $3.0 million for the year ended December 31, 2024. This decrease was partially offset by an increase in revenue recognized under the collaboration agreement with Novartis, which increased $0.7 million from $11.7 million for the year ended December 31, 2023, to $12.4 million for the year ended December 31, 2024, and an increase in license revenue of $0.2 million.

A more detailed breakdown of revenue sources can be seen in the following table:

Understanding the contribution of different business segments to overall revenue helps to identify key drivers and potential areas of growth or vulnerability. Given Precision BioSciences' focus on genome editing, most of its revenue is tied to its therapeutic programs and partnerships. Changes in revenue streams can be influenced by various factors, including:

• The progress of clinical trials
• New collaboration agreements
• Achievement of milestones in existing partnerships
• Changes in the competitive landscape

Investors should monitor these factors closely to assess the sustainability and growth potential of Precision BioSciences' revenue.

For further insights into the company's strategic direction, refer to: Mission Statement, Vision, & Core Values of Precision BioSciences, Inc. (DTIL).

Precision BioSciences, Inc. (DTIL) Profitability Metrics

Analyzing Precision BioSciences, Inc. (DTIL) profitability involves scrutinizing several key metrics to understand the company's financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, which provide insights into how well the company manages its costs and generates earnings from its revenue.

As of the fiscal year 2024, detailed profitability figures require a thorough examination of Precision BioSciences, Inc. (DTIL)'s financial statements. However, based on the trends and available data, here’s what can be assessed:

• Gross Profit: Gross profit is calculated by deducting the cost of goods sold (COGS) from the total revenue. A higher gross profit indicates that the company is efficient in producing its goods or services. Trends in gross margin, which is gross profit divided by revenue, can reveal improvements or declines in production efficiency.
• Operating Profit: Operating profit is derived by subtracting operating expenses (such as administrative and research & development costs) from the gross profit. This metric reflects the profitability of the company's core business operations before accounting for interest and taxes.
• Net Profit: Net profit, often referred to as the bottom line, is what remains after all expenses, including interest and taxes, have been deducted from total revenue. The net profit margin (net profit divided by revenue) shows the percentage of revenue that translates into profit.

To provide a comprehensive view, it's essential to compare these profitability ratios with industry averages. This benchmark helps in determining whether Precision BioSciences, Inc. (DTIL) is performing better, worse, or on par with its competitors. Industry averages can vary significantly, so choosing the right comparison group is crucial.

Operational efficiency is another critical aspect of profitability analysis. Metrics like cost management and trends in gross margin can indicate how well the company controls its expenses and optimizes its production processes. For instance, a rising gross margin might suggest that the company is becoming more efficient in its manufacturing or service delivery processes.

Given the dynamic nature of financial data, investors and analysts should refer to the most recent financial statements and reports for the most accurate and up-to-date information on Precision BioSciences, Inc. (DTIL)'s profitability.

Precision BioSciences, Inc. (DTIL) Debt vs. Equity Structure

Understanding how Precision BioSciences, Inc. (DTIL) finances its operations is crucial for investors. The balance between debt and equity can reveal insights into the company's financial strategy, risk profile, and growth potential.

As of fiscal year 2024, Precision BioSciences, Inc. (DTIL) showcases the following debt dynamics:

• Long-Term and Short-Term Debt: As of December 31, 2023, Precision BioSciences had a total debt of $49.4 million. This comprised $47.8 million in long-term debt and $1.6 million in short-term debt.
• Recent Debt Issuances: In February 2024, Precision BioSciences announced a private placement offering, issuing 10,000 shares of Series A preferred stock at a purchase price of $1,000 per share, along with warrants to purchase common stock. This generated gross proceeds of $10.0 million before deducting offering expenses.

The debt-to-equity ratio provides a clearer picture of the company's financial leverage. While the exact ratio for 2024 isn't specified in the search results, comparing the debt to the company's equity can offer insights. It is important to note that fluctuations in stock prices and equity value can impact this ratio.

Here's an overview of Precision BioSciences' debt and equity situation, based on available information:

Precision BioSciences seems to be actively balancing debt and equity financing. The recent private placement indicates a move to bolster equity, which can reduce the debt-to-equity ratio and potentially lower financial risk. However, the company also carries a significant amount of long-term debt. Managing this debt while funding ongoing research and development is a key challenge.

Credit ratings and refinancing activities also play a role in understanding Precision BioSciences' debt management. Any updates on these fronts would provide further insights into the company's financial stability and its ability to meet its debt obligations.

For more insights into the investors of Precision BioSciences, Inc. (DTIL), check out: Exploring Precision BioSciences, Inc. (DTIL) Investor Profile: Who’s Buying and Why?

Precision BioSciences, Inc. (DTIL) Liquidity and Solvency

Assessing Precision BioSciences, Inc. (DTIL)'s financial health involves a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency concerns its ability to meet long-term obligations.

To evaluate Precision BioSciences, Inc.'s liquidity, we delve into key financial ratios and statements:

• Current Ratio: This ratio measures a company's ability to pay off its current liabilities with its current assets.
• Quick Ratio: Similar to the current ratio, but it excludes inventories from current assets, providing a more conservative view of liquidity.

Analysis of working capital trends provides insights into the efficiency of managing short-term assets and liabilities. Monitoring changes in accounts receivable, accounts payable, and inventory levels can reveal potential liquidity issues or improvements.

A review of Precision BioSciences, Inc.'s cash flow statements offers a deeper understanding of its liquidity management:

• Operating Cash Flow: Cash generated from the company's core business activities.
• Investing Cash Flow: Cash flow related to the purchase and sale of long-term assets.
• Financing Cash Flow: Cash flow related to debt, equity, and dividends.

By examining these cash flow trends, investors can assess Precision BioSciences, Inc.'s ability to generate cash, fund investments, and manage its debt obligations. Analyzing the interplay between these elements helps identify potential liquidity risks or strengths, offering a clearer picture of the company's overall financial stability.

For comprehensive insights into Precision BioSciences, Inc.'s financial health, refer to: Breaking Down Precision BioSciences, Inc. (DTIL) Financial Health: Key Insights for Investors

Precision BioSciences, Inc. (DTIL) Valuation Analysis

Determining whether Precision BioSciences, Inc. (DTIL) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. Examining these elements provides a comprehensive view of the company's current market position.

To assess Precision BioSciences, Inc. (DTIL)'s valuation, consider the following:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. A high P/E ratio might suggest overvaluation, while a low one could indicate undervaluation, relative to industry peers.
• Price-to-Book (P/B) Ratio: The P/B ratio relates a company's market capitalization to its book value of equity. It can help determine if the stock price is reasonable compared to the company's net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization. It provides a more comprehensive valuation measure than P/E, especially when comparing companies with different capital structures.

Analyzing stock price trends offers insights into market perception and investor confidence:

• Stock Price Trends: Examining the stock price movement over the last 12 months, or longer, helps reveal patterns and potential drivers of valuation changes.

Here's an illustrative example of how these valuation metrics might be presented:

Considering dividends and analyst ratings can further refine the valuation assessment:

• Dividend Yield and Payout Ratios: As a biotechnology company focused on research and development, Precision BioSciences, Inc. (DTIL) does not currently offer a dividend. Therefore, dividend yield and payout ratios are not applicable.
• Analyst Consensus: Monitoring analyst ratings (buy, hold, or sell) and price targets provides insights into professional opinions on the stock's potential value.

For additional insights into investor behavior and stock dynamics, explore Exploring Precision BioSciences, Inc. (DTIL) Investor Profile: Who’s Buying and Why?

Precision BioSciences, Inc. (DTIL) Risk Factors

Investing in Precision BioSciences, Inc. (DTIL) involves navigating a complex landscape of risks that can significantly impact its financial health. These risks span internal operational challenges, external market pressures, and regulatory hurdles. Understanding these factors is crucial for investors assessing the company's long-term viability and potential returns. For additional insights, you might find this resource helpful: Breaking Down Precision BioSciences, Inc. (DTIL) Financial Health: Key Insights for Investors.

One of the primary risks stems from the highly competitive nature of the biotechnology industry. Precision BioSciences faces competition from numerous companies, including both established pharmaceutical giants and emerging biotech firms. This competition intensifies the pressure on pricing, market share, and the pace of innovation. Specifically, the development and commercialization of novel therapies require substantial investment and carry a high degree of uncertainty. If Precision BioSciences fails to maintain a competitive edge through innovative technologies or strategic partnerships, its financial performance could suffer.

Regulatory changes and clinical trial outcomes also pose significant risks. The development of gene editing therapies is subject to rigorous regulatory oversight by agencies such as the FDA in the United States and similar bodies in other countries. Changes in regulatory policies or delays in obtaining regulatory approvals can significantly impact the timeline and cost of bringing new therapies to market. Moreover, the outcome of clinical trials is inherently uncertain. Unfavorable results or safety concerns in clinical trials can lead to setbacks, increased costs, and potential abandonment of promising therapies.

Operational and financial risks are also critical considerations. Precision BioSciences relies heavily on its proprietary ARCUS gene editing platform. Any technological setbacks, patent disputes, or challenges in scaling up manufacturing processes could disrupt the company's operations and impact its financial stability. Furthermore, the company's financial health depends on its ability to secure funding through strategic partnerships, equity offerings, or debt financing. Unfavorable market conditions or a decline in investor confidence could limit access to capital, potentially hindering the company's ability to fund its research and development programs.

To mitigate these risks, Precision BioSciences may implement various strategies, including:

• Diversifying its pipeline of therapeutic candidates to reduce dependence on any single product.
• Strengthening its intellectual property portfolio to protect its proprietary technologies.
• Establishing strategic partnerships to share development costs and leverage external expertise.
• Implementing robust risk management practices to identify and address potential operational and financial challenges.

While specific mitigation plans are subject to change and detailed information is typically available in the company's SEC filings, understanding these general strategies provides insight into how Precision BioSciences aims to navigate its risk landscape.

Precision BioSciences, Inc. (DTIL) Growth Opportunities

Precision BioSciences, Inc. (DTIL) is focusing on developing in vivo gene editing therapies, which could significantly improve treatment options for various diseases. Their growth prospects are tied to advancements in this technology and successful clinical trial outcomes.

Key growth drivers for Precision BioSciences, Inc. (DTIL) include:

• Product Innovations: Continued development of their ARCUS gene editing platform to target a wider range of diseases.
• Market Expansion: Exploring partnerships and collaborations to expand the application of their technology in different therapeutic areas.
• Strategic Partnerships: Collaborations with larger pharmaceutical companies for development and commercialization.

While specific future revenue growth projections and earnings estimates for Precision BioSciences, Inc. (DTIL) are subject to market conditions and clinical trial results, several strategic initiatives could drive future growth:

• Platform Advancement: Progress in the ARCUS platform, enhancing its precision and efficiency.
• Clinical Milestones: Achieving positive results in ongoing and planned clinical trials.
• Regulatory Approvals: Securing regulatory approvals for their gene editing therapies.

Precision BioSciences, Inc. (DTIL) holds competitive advantages due to its proprietary ARCUS gene editing platform. The ARCUS platform is designed for high specificity and versatility, potentially offering advantages over other gene editing technologies.

Here's a look at how Precision BioSciences, Inc.'s financial performance has been recently:

To delve deeper into investor activity and understand who is investing in Precision BioSciences, Inc. (DTIL) and their motivations, check out this insightful analysis: Exploring Precision BioSciences, Inc. (DTIL) Investor Profile: Who’s Buying and Why?