Vertex Pharmaceuticals (VRTX) Q1 FY2022 earnings: revenue $2.1 billion, up 21.6% on the year

Vertex Pharmaceuticals Inc. (VRTX) reported revenue of $2.1 billion for Q1 FY2022, the quarter ended 31 March 2022, up 21.6% on the same quarter a year earlier as this quarter's filing gives it. Net income was $762 million, up 16.7% on the year as this quarter's filing gives it, and diluted earnings per share $2.96. The figures are the company's own, from the 10-Q it filed with the SEC on 6 May 2022.

Revenue

$2.1 billion

+21.6% on the year · +1.2% on the quarter

Q2 FY2020Q1 FY2022

Operating margin

49.6%

51.5% a year earlier

Q2 FY2020Q1 FY2022

Net income

$762 million

+16.7% on the year · -1.0% on the quarter

Q2 FY2020Q1 FY2022

Diluted EPS

$2.96

+18.9% on the year · -0.7% on the quarter

Q2 FY2020Q1 FY2022

this quarterthe same quarter a year earlierHover a bar for its figure.

Income statement (profit and loss)

$ million	Q1 FY2022	Q4 FY2021	Q1 FY2021	On the quarter	On the year
Revenue	2,098	2,073	1,724	+1.2%	+21.6%
Cost of revenue	246	247	n/a	-0.6%
Gross profit	1,852	1,825	n/a	+1.5%
Gross margin	88.3%	88.1%	n/a
Research and development	603	694	n/a	-13.1%
Selling, general and administrative	215	255	n/a	-15.7%
Operating income	1,041	878	888	+18.6%	+17.2%
Operating margin	49.6%	42.3%	51.5%
Pre-tax income	955	871	n/a	+9.6%
Income tax	193	101	n/a	+91.1%
Effective tax rate	20.2%	11.6%	n/a
Net income	762	770	653	-1.0%	+16.7%
Net margin	36.3%	37.2%	n/a
Diluted EPS	$2.96	$2.98	$2.49	-0.7%	+18.9%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q1 FY2022	Q4 FY2021	Q1 FY2021	On the quarter	On the year
Operating cash flow	956	995	n/a	-3.9%
Capital expenditure	63.6	61.7	n/a	+3.1%
Free cash flow	893	933	n/a	-4.4%
Free cash flow margin	42.6%	45.0%	n/a
Cash from investing	-51.0	-134	n/a
Cash from financing	-95.4	-336	n/a
Depreciation and amortisation	35.9	33.8	28.8	+6.1%	+24.5%
Share-based compensation	130	119	n/a	+9.9%
Buybacks	0.0	368	n/a
Diluted shares, weighted	258m	260m	262m	-0.8%	-1.5%
Shares outstanding at period end	256m	254m	259m	+0.4%	-1.3%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q1 FY2022	Q4 FY2021	Q1 FY2021	On the quarter	On the year
Shareholders' equity	10,907	10,100	8,980	+8.0%	+21.5%
Debt	0.0	0.0	n/a
Operating lease liabilities	377	377	n/a	-0.1%
Finance lease liabilities	496	510	n/a	-2.8%
Other liabilities	2,477	2,445	n/a	+1.3%
Total liabilities and equity	14,256	13,432	n/a	+6.1%
Goodwill	1,002	1,002	n/a	0.0%
Intangible assets	400	400	n/a	0.0%
Investments	638	730	n/a	-12.6%
Cash and equivalents	7,600	6,795	6,304	+11.8%	+20.6%
Receivables	1,293	1,137	n/a	+13.7%
Inventory	339	353	n/a	-4.0%
Other assets	2,984	3,016	n/a	-1.0%
Total assets	14,256	13,432	n/a	+6.1%

Questions

What was Vertex Pharmaceuticals' revenue in Q1 FY2022?

Vertex Pharmaceuticals (VRTX) reported revenue of $2.1 billion for Q1 FY2022, the quarter ended 31 March 2022, up 21.6% on the same quarter a year earlier as the company restated it.

How much did Vertex Pharmaceuticals earn in Q1 FY2022?

Net income for Q1 FY2022 was $762 million, up 16.7% on the year, and diluted earnings per share $2.96.

When did Vertex Pharmaceuticals report Q1 FY2022 results?

Vertex Pharmaceuticals filed its 10-Q for the quarter ended 31 March 2022 with the SEC on 6 May 2022.

Quarterly results, the last 20 quarters

	Q3 FY2021 †	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	1,984	2,073	2,098	2,196	2,334	2,303	2,375	2,493	2,484	2,518	2,691	2,646	2,772	2,912	2,770	2,965	3,076	3,190	2,987	3,334
Cost of revenue	237	247	246	262	289	283	267	309	319	368	343	372	393	423	363	408	415	466	393	489
Gross profit	1,748	1,825	1,852	1,934	2,045	2,019	2,108	2,185	2,165	2,150	2,348	2,274	2,379	2,489	2,407	2,557	2,662	2,724	2,594	2,845
Gross margin	88%	88%	88%	88%	88%	88%	89%	88%	87%	85%	87%	86%	86%	85%	87%	86%	87%	85%	87%	85%
R&D	494	694	603	600	645	694	743	786	810	825	789	967	876	999	980	978	978	974	962	994
SG&A	198	255	215	215	247	267	241	263	264	369	343	372	372	378	396	425	445	487	494	582
Operating income	1,055	878	1,041	1,106	1,127	1,034	779	1,026	1,038	988	1,140	-3,515	1,116	1,026	630	1,151	1,186	1,206	1,138	1,247
Operating margin	53%	42%	50%	50%	48%	45%	33%	41%	42%	39%	42%	-133%	40%	35%	23%	39%	39%	38%	38%	37%
Interest expense	n/a	n/a	n/a	n/a	n/a	n/a	n/a	11.2	10.9	n/a	10.4	9.9	7.5	2.8	3.0	3.7	3.3	3.3	n/a	n/a
Pre-tax income	1,083	871	955	1,024	1,176	1,077	892	1,162	1,179	1,148	1,279	-3,391	1,224	1,136	730	1,283	1,299	1,331	1,253	1,392
Tax rate	21%	12%	20%	21%	21%	24%	22%	21%	12%	16%	14%	n/a	15%	20%	12%	19%	17%	11%	18%	21%
Net income	852	770	762	810	930	819	700	916	1,035	969	1,100	-3,594	1,045	913	646	1,033	1,083	1,191	1,031	1,100
Net margin	43%	37%	36%	37%	40%	36%	29%	37%	42%	38%	41%	-136%	38%	31%	23%	35%	35%	37%	35%	33%
Diluted EPS	$3.28	$2.98	$2.96	$3.13	$3.59	$3.15	$2.69	$3.52	$3.97	$3.71	$4.21	-$13.92	$4.01	$3.50	$2.49	$3.99	$4.20	$4.65	$4.02	$4.31
Operating cash flow	927	995	956	1,140	956	1,078	900	1,134	1,268	235	1,307	-3,754	1,370	585	819	1,073	1,241	498	1,428	1,125
Capital expenditure	52.5	61.7	63.6	53.3	54.2	33.6	42.1	59.6	40.6	58.1	68.4	69.0	67.7	92.6	40.7	146	102	149	133	112
Free cash flow	875	933	893	1,086	901	1,045	858	1,075	1,228	176	1,238	-3,823	1,302	492	778	927	1,140	349	1,295	1,013
Buybacks	632	368	0.0	0.0	0.0	0.0	133	28.3	117	150	131	320	308	418	426	392	1,071	128	337	470
Shares outstanding	256m	254m	256m	256m	257m	257m	258m	258m	258m	258m	258m	258m	258m	257m	257m	256m	254m	254m	254m	253m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 31 March 2022, filed 6 May 2022: the filing.