NASDAQ$ALEC

Alector Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Alector reported its fourth quarter and full year 2024 financial results, showing a significant increase in collaboration revenue and a reduced net loss compared to the previous year.

Alector reported a strong fourth quarter in 2024, with collaboration revenue significantly increasing to $54.2 million from $15.2 million in the same period last year. The company also reduced its net loss to $2.1 million, or $0.02 per share, compared to a net loss of $41.4 million, or $0.49 per share, in Q4 2023. Cash, cash equivalents, and investments totaled $413.4 million, providing a runway through 2026.

  • Collaboration revenue for Q4 2024 increased significantly to $54.2 million, up from $15.2 million in Q4 2023.
  • Net loss for Q4 2024 was $2.1 million, a substantial improvement from a $41.4 million net loss in Q4 2023.
  • Cash, cash equivalents, and investments stood at $413.4 million as of December 31, 2024, providing financial runway through 2026.
  • The company anticipates topline data from the pivotal INFRONT-3 Phase 3 clinical trial of latozinemab in FTD-GRN by Q4 2025.

Headline financials

Total Revenue

$54.2M

Previous: $15.2M+257.1%
EPS (adj)

-$0.02

Previous: -$0.49+95.9%
Research and Development Expenses

$46.5M

Previous: $47.7M-2.6%
General and Administrative Expenses

$15M

Previous: $14.9M+0.7%
Total Operating Expenses

$61.5M

Previous: $62.6M-1.8%
Other Income, Net

$5.22M

Previous: $7.69M-32.0%
Loss Before Income Taxes

-$2.03M

Previous: -$39.8M+94.9%
Income Tax Expense

$48K

Previous: $1.67M-97.1%
Shares Used in Computing Net Loss Per Share, Basic and Diluted

98.3M

Previous: 84.4M+16.5%
Total Current Liabilities (Excluding Deferred Revenue)

$101M

Previous: $95M+6.8%
Deferred Revenue (Including Current Portion)

$196M

Previous: $294M-33.3%
Total Liabilities

$342M

Previous: $488M-30.0%
Total Stockholders' Equity

$127M

Previous: $134M-5.5%
Capital Expenditures

-$173K

Previous: -$233K+25.8%
Net Income

-$2.1M

Previous: -$41.4M+94.9%
Operating Income

-$7.25M

Previous: -$47.5M+84.7%
Gross Profit

$52.2M

Previous: $12.9M+303.4%
R&D Expense

$44.4M

Previous: $45.5M-2.4%

Revenue & EPS history

Alector · Revenue · Quarterly

$54.2M

Q4 2024+257.1%vs Q4 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Alector · $9.11M total across 1 segment · Q3 2023

  • Collaboration Revenue
    $9.11M-38.7%

Forward guidance

For the year ending 2025, Alector anticipates collaboration revenue between $5 million and $15 million, total research and development expenses between $175 million and $185 million, and total general and administrative expenses between $55 million and $65 million.

Tailwinds

  • Anticipated topline data from the pivotal INFRONT-3 Phase 3 clinical trial of latozinemab in FTD-GRN by Q4 2025.
  • Expected completion of enrollment in the PROGRESS-AD Phase 2 clinical trial of AL101/GSK4527226 by mid-2025.
  • Advancing preclinical and early research pipeline, including ADP037-ABC (anti-amyloid beta) and ADP050-ABC (GCase replacement therapy) towards IND-enabling studies.
  • Plans to enter the clinic with ADP037-ABC and ADP050-ABC programs in 2026.
  • Financial runway through 2026 with $413.4 million in cash, cash equivalents, and investments.

Headwinds

  • The INVOKE-2 Phase 2 clinical trial for AL002 (TREM2 agonist) did not meet its primary endpoint.
  • Collaboration revenue guidance for 2025 ($5 million to $15 million) is significantly lower than 2024 actuals ($100.6 million), indicating a potential decrease in collaboration-related income.
  • Total research and development expenses are projected to remain high, between $175 million and $185 million for 2025.
  • Total general and administrative expenses are projected to remain substantial, between $55 million and $65 million for 2025.
  • The company continues to operate at a net loss, although it has decreased.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+1.1%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-5.5%

Avg return

30 days after

52%

15 / 29 earnings

Positive

+32.9%

Q2 2023

Best reaction

-18.4%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.1%-16.0%-36.6%
Q4 2025+7.1%-11.7%-16.3%
Q3 2025+4.1%+8.4%-2.8%
Q1 2025+4.2%+7.4%+23.8%
Q4 2024-3.5%-15.4%-25.0%
Q3 2024+12.8%+21.3%-56.8%
Q2 2024+0.8%+0.9%-4.2%
Q1 2024-1.9%+1.7%-17.7%
Q4 2023+7.9%+14.4%-7.1%
Q3 2023-2.6%-17.7%+6.0%
Q2 2023+32.9%+12.4%-15.6%
Q1 2023+13.0%+20.6%+8.5%
Q4 2022+0.9%-9.5%-30.3%
Q3 2022-18.4%+3.1%+3.1%
Q2 2022+16.3%+12.7%-6.9%
Q1 2022-12.7%-20.0%-11.9%
Q4 2021+1.9%-1.3%-7.8%
Q3 2021+2.3%+4.1%-20.7%
Q2 2021+9.5%+9.0%+10.1%
Q1 2021-7.8%-12.4%+6.1%
Q4 2020-4.7%-10.7%-14.3%
Q3 2020+0.4%+7.2%+25.2%
Q2 2020-6.9%-7.4%-13.5%
Q1 2020-5.0%+0.3%+3.7%
Q4 2019-1.5%-4.4%+0.8%
Q3 2019-6.1%-4.2%+19.5%
Q2 2019-1.7%-18.0%+9.4%
Q1 2019+4.9%+1.3%+0.2%
Q4 2018-8.6%-3.5%+10.8%
Q3 2018
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017

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