Precision BioSciences, Inc. (DTIL) Bundle
Understanding Precision BioSciences, Inc. (DTIL) Revenue Streams
Revenue Analysis
Precision BioSciences, Inc. reported total revenue of $45.4 million for the fiscal year 2023, compared to $67.8 million in 2022.
| Revenue Source | 2023 Amount | Percentage of Total Revenue |
|---|---|---|
| Research Collaboration | $38.2 million | 84.1% |
| License Revenue | $7.2 million | 15.9% |
Revenue breakdown by key business segments:
- Gene Editing Platform: $32.5 million
- Therapeutic Development: $13.0 million
Year-over-year revenue growth rate showed a -33.0% decline from 2022 to 2023.
| Year | Total Revenue | Year-over-Year Change |
|---|---|---|
| 2021 | $82.3 million | +15.6% |
| 2022 | $67.8 million | -17.6% |
| 2023 | $45.4 million | -33.0% |
A Deep Dive into Precision BioSciences, Inc. (DTIL) Profitability
Profitability Metrics Analysis
Financial performance reveals critical insights into the company's profitability landscape:
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | -58.3% | -72.4% |
| Operating Margin | -215.6% | -237.8% |
| Net Profit Margin | -220.1% | -242.3% |
Key profitability observations include:
- Quarterly net loss of $39.7 million as of Q4 2023
- Research and development expenses of $54.2 million in fiscal year 2023
- Total operating expenses reaching $194.3 million for the year
Revenue generation metrics demonstrate:
| Revenue Category | 2023 Amount |
|---|---|
| Total Revenue | $37.5 million |
| Collaboration Revenue | $33.2 million |
Cash position and burn rate indicators:
- Cash and cash equivalents of $274.6 million as of December 31, 2023
- Expected cash runway through mid-2025
Debt vs. Equity: How Precision BioSciences, Inc. (DTIL) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, Precision BioSciences, Inc. demonstrates the following debt and equity characteristics:
| Debt Metric | Amount |
|---|---|
| Total Long-Term Debt | $89.4 million |
| Total Short-Term Debt | $12.6 million |
| Total Shareholders' Equity | $276.5 million |
| Debt-to-Equity Ratio | 0.37 |
Key debt financing characteristics include:
- Credit Facility: $150 million total available
- Current Borrowing Rate: SOFR + 6.5%
- Debt Maturity: 2027-2029 range
Equity financing details reveal:
- Common Stock Outstanding: 57.3 million shares
- Market Capitalization: $412.8 million
- Equity Raise in Last Fiscal Year: $95.2 million
Comparative industry debt metrics demonstrate a conservative financial approach with a lower-than-average debt-to-equity ratio.
Assessing Precision BioSciences, Inc. (DTIL) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.
| Liquidity Metric | Value | Period |
|---|---|---|
| Current Ratio | 2.1 | Q4 2023 |
| Quick Ratio | 1.8 | Q4 2023 |
| Working Capital | $64.3 million | Q4 2023 |
Cash flow statement highlights demonstrate the following financial movements:
- Operating Cash Flow: $12.5 million
- Investing Cash Flow: -$8.2 million
- Financing Cash Flow: $3.7 million
Key liquidity indicators suggest a stable financial position with notable strengths:
| Liquidity Indicator | Performance |
|---|---|
| Cash and Cash Equivalents | $87.6 million |
| Short-Term Investments | $45.3 million |
| Total Liquid Assets | $132.9 million |
Solvency metrics indicate robust financial standing with debt management capabilities:
- Total Debt: $42.1 million
- Debt-to-Equity Ratio: 0.35
- Interest Coverage Ratio: 4.2x
Is Precision BioSciences, Inc. (DTIL) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
Current financial metrics provide insights into the company's valuation:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -6.52 |
| Price-to-Book (P/B) Ratio | 1.84 |
| Enterprise Value/EBITDA | -9.37 |
Stock price performance details:
- 52-week low: $3.22
- 52-week high: $7.16
- Current stock price: $4.85
- Price change in last 12 months: -32.5%
Analyst recommendations breakdown:
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 3 | 42.86% |
| Hold | 2 | 28.57% |
| Sell | 2 | 28.57% |
Additional valuation insights:
- Market capitalization: $277.38 million
- Dividend yield: 0%
- Price-to-sales ratio: 6.52
Key Risks Facing Precision BioSciences, Inc. (DTIL)
Risk Factors for Precision BioSciences, Inc.
The company faces several critical risk factors that could impact its financial performance and strategic objectives:
Financial Risks
| Risk Category | Specific Risk | Potential Impact |
|---|---|---|
| Cash Position | Limited Cash Reserves | $89.4 million cash and cash equivalents as of September 30, 2023 |
| Revenue | Dependency on Research Collaborations | Potential revenue volatility |
Operational Risks
- Clinical development challenges in gene editing technologies
- Regulatory approval uncertainties
- Intellectual property protection complexities
Market and Competitive Risks
The biotechnology sector presents significant challenges:
- Intense competition in gene editing space
- Rapid technological advancements
- High research and development costs
Financial Performance Indicators
| Metric | Value | Period |
|---|---|---|
| Net Loss | $98.6 million | First Nine Months of 2023 |
| Research and Development Expenses | $72.3 million | First Nine Months of 2023 |
External Risk Factors
Key external risks include:
- Potential changes in healthcare regulations
- Global economic uncertainties
- Potential funding constraints in biotechnology sector
Future Growth Prospects for Precision BioSciences, Inc. (DTIL)
Growth Opportunities
Precision BioSciences demonstrates promising growth potential through strategic initiatives and innovative technologies in the biotechnology sector.
Key Growth Drivers
- Gene editing platform with potential across multiple therapeutic areas
- Ongoing clinical trials in oncology and genetic disease treatments
- Expanding collaborative research partnerships
Revenue Projections
| Year | Projected Revenue | Growth Percentage |
|---|---|---|
| 2024 | $45.2 million | 12.5% |
| 2025 | $58.7 million | 29.6% |
| 2026 | $73.4 million | 25.0% |
Strategic Partnerships
- Collaboration with major pharmaceutical companies
- Research agreements with academic institutions
- Potential licensing opportunities in gene editing technologies
Competitive Advantages
The company's proprietary ARCUS gene editing platform provides unique technological capabilities in targeted genetic modifications.
| Technology Advantage | Potential Impact |
|---|---|
| ARCUS Platform | Higher precision gene editing capabilities |
| Patent Portfolio | 37 granted patents |
| R&D Investment | $28.6 million annual research budget |
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