Shares of DBV Technologies S.A. (DBVT) were rising today on May 4, 2021, following the announcement of the first quarter of the year 2021 financial results on May 3, 2021,by DBVT stock.DBVT stock price saw a push of 5.69% to reach $6.50 a share at the time of this writing.DBVT stock was gloomy in the previous trading session and dropped by 5.82% at closing.Let’s have a brief look at financial results.
Highlights of Financial Results:
Operating Income:
DBV Technologies recorded operating income of $2.9 million for the first three months of the year 2021 as compared to $4.7 million operating income in the same period of the prior year which represents a decrease of 37.7%. DBV Research Tax Credit(CIR) and its collaboration with Nestlé Health Science are the main sources of this income. The decrease of CIR is mainly responsible for the decrease in the operating income.
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Operating expenses:
Operating expenses of DBVT stock were reduced from $45.9 million in the first three months of 2020 to $32.6 million in the first three months of 2021. The workforce reduction caused by DBV Technologies due to its 2020 global restructuring plan resulted in a decrease in personnel expenses which ultimately reduced the operating expenses. Personnel expenses decreased by 61% from $18.7 million in the first three months of 2020 to $9.0 million in the same period of 2021.COVID-19 has also contributed to the reduction of operating expenses to some extent.
Net Loss:
The net loss suffered by DBV stock was $29.4 million in the first three months of 2021 as compared to $40.9 million in the same tenure of the previous year.Net loss per share for the DBVT stock was $0.54 for the three months ended March 31, 2021, as compared to $0.79 in the same tenure of the prior year.
Balance Sheet:
As of March 31, 2021, DBVT stock had cash and cash equivalents of $152.5 million as compared to $196.4 million as of March 31, 2020. The cash of $36.2 million used in operating activities and the effect of exchange rates on cash and cash equivalents of $7.9 millionare mainly responsible for decrease in the cash and cash equivalents.
Conclusion:
DBVT stock was gloomy in the previous trading session but happened to be green today as investors are responding to the recently announced first-quarter financial results of 2021. The management is confident that they have sufficient cash on hand for the support of operations till the second half of 2022. Still a deep fundamental, as well as technical analysis, is necessary before adding this stock to the portfolio.
