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KROS Nasdaq· Keros Therapeutics Inc.
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KROS Nasdaq· Keros Therapeutics Inc.
Earnings report Q4 2023

Keros Therapeutics Reports Declining Revenue in Latest Quarter

Segments of Revenue

Keros Therapeutics, Inc. reported a decline in revenue for the latest quarter. The company's revenue primarily consists of service and other revenue related to the Tech Transfer Agreement. However, no revenue was recognized in the previous year, and in the year before that, revenue was primarily driven by an upfront fee of $20.0 million from the Hansoh Agreement, which granted exclusive rights to develop, manufacture, and commercialize KER-050 and licensed products within the Territory.

Strengths

Despite the decline in revenue, Keros Therapeutics has demonstrated strength in its research and development efforts. The company has consistently invested in the development of KER-050, with research and development expenses increasing from $16.5 million in 2021 to $24.5 million in 2022, and further to $41.2 million in the latest quarter. This indicates a strong commitment to advancing its pipeline and potential future revenue streams.

Challenges

The decline in revenue for the latest quarter poses a challenge for Keros Therapeutics. The absence of significant revenue sources, apart from service and other revenue related to the Tech Transfer Agreement, raises concerns about the company's ability to generate substantial income in the short term. Additionally, the lack of revenue recognition in the previous year highlights the company's dependence on specific agreements and partnerships for revenue generation.

Noteworthy

It is noteworthy that Keros Therapeutics has reported a net loss of $152.9 million in the latest quarter. This loss is attributed to operating expenses, including significant research and development costs, as well as general and administrative expenses. However, the company has also reported other income of $16.9 million, primarily driven by research and development incentive income and dividend income. These sources of income partially offset the overall loss.

Summary

Keros Therapeutics, Inc. faced a decline in revenue in the latest quarter, primarily due to the absence of significant revenue sources apart from service and other revenue related to the Tech Transfer Agreement. However, the company has demonstrated strength in its research and development efforts, with a significant increase in expenses dedicated to advancing its pipeline. The net loss reported in the latest quarter highlights the challenges faced by the company, including its dependence on specific agreements and partnerships for revenue generation. Despite these challenges, Keros Therapeutics has reported other income sources that partially offset the overall loss.

Source documents

Form 10-K  filed on Feb 28, 2024
16 pages scanned

Reference data

Company financials Q4 revenue 143k
Analyst estimates Q4 EPS missed by -0.64%
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