Vertex Pharmaceuticals (VRTX) Q1 FY2023 earnings: revenue $2.4 billion, up 13.2% on the year

Vertex Pharmaceuticals Inc. (VRTX) reported revenue of $2.4 billion for Q1 FY2023, the quarter ended 31 March 2023, up 13.2% on the same quarter a year earlier. Net income was $700 million, down 8.2% on the year, and diluted earnings per share $2.69. The figures are the company's own, from the 10-Q it filed with the SEC on 2 May 2023.

Revenue

$2.4 billion

+13.2% on the year · +3.1% on the quarter

Q2 FY2021Q1 FY2023

Operating margin

32.8%

49.6% a year earlier

Q2 FY2021Q1 FY2023

Net income

$700 million

-8.2% on the year · -14.5% on the quarter

Q2 FY2021Q1 FY2023

Diluted EPS

$2.69

-9.1% on the year · -14.6% on the quarter

Q2 FY2021Q1 FY2023

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

Income statement (profit and loss)

$ million	Q1 FY2023	Q4 FY2022	Q1 FY2022	On the quarter	On the year
Revenue	2,375	2,303	2,098	+3.1%	+13.2%
Cost of revenue	267	283	246	-5.8%	+8.6%
Gross profit	2,108	2,019	1,852	+4.4%	+13.8%
Gross margin	88.8%	87.7%	88.3%
Research and development	743	694	603	+7.0%	+23.1%
Selling, general and administrative	241	267	215	-9.8%	+12.0%
Operating income	779	1,034	1,041	-24.6%	-25.2%
Operating margin	32.8%	44.9%	49.6%
Pre-tax income	892	1,077	955	-17.2%	-6.6%
Income tax	192	258	193	-25.7%	-0.5%
Effective tax rate	21.5%	24.0%	20.2%
Net income	700	819	762	-14.5%	-8.2%
Net margin	29.5%	35.6%	36.3%
Diluted EPS	$2.69	$3.15	$2.96	-14.6%	-9.1%

$ 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 FY2023	Q4 FY2022	Q1 FY2022	On the quarter	On the year
Operating cash flow	900	1,078	956	-16.6%	-5.9%
Capital expenditure	42.1	33.6	63.6	+25.3%	-33.8%
Free cash flow	858	1,045	893	-17.9%	-3.9%
Free cash flow margin	36.1%	45.4%	42.6%
Cash from investing	-1,834	176	-51.0
Cash from financing	-295	40.2	-95.4
Depreciation and amortisation	38.8	38.4	35.9	+1.0%	+8.1%
Share-based compensation	122	112	130	+9.8%	-6.1%
Buybacks	133	0.0	0.0
Diluted shares, weighted	260m	260m	258m	0.0%	+0.9%
Shares outstanding at period end	258m	257m	256m	+0.2%	+0.8%

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 FY2023	Q4 FY2022	Q1 FY2022	On the quarter	On the year
Shareholders' equity	14,432	13,913	10,907	+3.7%	+32.3%
Debt	0.0	0.0	0.0
Operating lease liabilities	372	380	377	-2.1%	-1.4%
Finance lease liabilities	418	431	496	-3.1%	-15.7%
Other liabilities	3,753	3,428	2,477	+9.5%	+51.5%
Total liabilities and equity	18,974	18,151	14,256	+4.5%	+33.1%
Goodwill	1,088	1,088	1,002	0.0%	+8.6%
Intangible assets	604	604	400	0.0%	+50.9%
Investments	2,206	387	638	+470.4%	+245.7%
Cash and equivalents	9,290	10,504	7,600	-11.6%	+22.2%
Receivables	1,548	1,442	1,293	+7.3%	+19.7%
Inventory	535	461	339	+16.2%	+57.9%
Other assets	3,704	3,666	2,984	+1.0%	+24.1%
Total assets	18,974	18,151	14,256	+4.5%	+33.1%

Questions

What was Vertex Pharmaceuticals' revenue in Q1 FY2023?

Vertex Pharmaceuticals (VRTX) reported revenue of $2.4 billion for Q1 FY2023, the quarter ended 31 March 2023, up 13.2% on the same quarter a year earlier.

How much did Vertex Pharmaceuticals earn in Q1 FY2023?

Net income for Q1 FY2023 was $700 million, down 8.2% on the year, and diluted earnings per share $2.69.

When did Vertex Pharmaceuticals report Q1 FY2023 results?

Vertex Pharmaceuticals filed its 10-Q for the quarter ended 31 March 2023 with the SEC on 2 May 2023.

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 2023, filed 2 May 2023: the filing.