Why did DSGN's EPS remain flat in 2024?

The EPS of Design Therapeutics remained flat in 2024 due to a combination of factors:

1. **Revenue and Net Income**: The company's total revenue and net income for 2024 were not provided. However, the net income for the fourth quarter of 2024 was -$1.19 million, which is a decrease from the previous year's fourth quarter net income of -$0.88 million. This decrease in net income could contribute to a flat EPS if the number of outstanding shares remained constant or increased slightly.

|code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|
|DSGN|DSGN.O|Design Therapeutics|2023 Q1||-1.9294E7|-0.35|185|
|DSGN|DSGN.O|Design Therapeutics|2023 Q2||-1.9937E7|-0.36|185|
|DSGN|DSGN.O|Design Therapeutics|2023 Q3||-1.5789E7|-0.28|185|
|DSGN|DSGN.O|Design Therapeutics|2023 Q4||-1.1842E7||185|
|DSGN|DSGN.O|Design Therapeutics|2024 Q1||-1.1105E7|-0.2|185|
|DSGN|DSGN.O|Design Therapeutics|2024 Q2||-1.1793E7|-0.21|185|
|DSGN|DSGN.O|Design Therapeutics|2024 Q3||-1.3039E7|-0.23|185|
|DSGN|DSGN.O|Design Therapeutics|2024 Q4||-1.3651E7||185|

2. **Net Margin**: The net margin of Design Therapeutics decreased from 2023 to 2024. A lower net margin can indicate that the company's expenses are increasing relative to its revenue, which could flatten the EPS if the revenue itself is not increasing at a greater rate.

3. **Operating Expenses**: The company's research and development (R&D) and general and administrative (G&A) expenses have been high, totaling $11.9 million and $4.4 million for the third quarter of 2024, respectively. These expenses are likely to be a significant portion of the company's total expenses, and their high levels can stabilize the EPS even if net income is decreasing.
4. **Cash Position**: Design Therapeutics has maintained a strong cash position, with $254.1 million expected to support operations into 2029. This financial stability may allow the company to absorb fluctuations in expenses and revenue, contributing to a flat EPS.
5. **Strategic Focus**: The company has been actively advancing its pipeline and preparing for clinical trials, which can be costly. The focus on R&D and strategic investments may have flattened the EPS despite a decrease in net income.

In conclusion, the flat EPS of Design Therapeutics in 2024 can be attributed to a combination of factors, including a decrease in net income, a lower net margin, and high operating expenses, which are balanced by the company's strong cash position and strategic focus on pipeline advancement.