NASDAQ$EQ

Equillium Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported first quarter 2024 financial results and provided recent clinical highlights.

Equillium reported revenue of $10.7 million and a net loss of $2.7 million for the first quarter of 2024. The company's cash balance was $32.3 million as of March 31, 2024, expected to provide cash runway into 2H 2025.

  • Announced positive topline data from Phase 1b EQUALISE study of itolizumab in lupus nephritis patients.
  • Completed enrollment in Phase 2 study of EQ101 for the treatment of moderate to severe alopecia areata.
  • Expect to announce results of the interim review of Phase 3 EQUATOR study of itolizumab in patients with acute graft-versus-host disease in Q3 2024.
  • Ono's option exercise decision for itolizumab is anticipated in 2H 2024.

Headline financials

Total Revenue

$10.7M

Previous: $8.88M+20.4%
EPS

-$0.08

Previous: -$0.11+27.3%
Research and Development Expenses

$9.74M

No prior period
General and Administrative Expenses

$3.74M

No prior period
Total Operating Expenses

$13.5M

No prior period
Total Other Income, Net

$57K

No prior period
Income Tax Expense

$0.00

No prior period
Weighted-Average Common Shares Outstanding

35.3M

No prior period
Interest Income

$439K

No prior period
Stock-Based Compensation

$972K

No prior period
Depreciation

$32K

No prior period
Net Unrealized (Gain) Loss on Foreign Currency Transactions

$383K

No prior period
Amortization of Investments, Net

-$278K

No prior period
Deferred Revenue

-$2.37M

No prior period
Accounts Receivable

-$1.31M

No prior period
Prepaid Expenses and Other Current Assets

-$520K

No prior period
Accounts Payable

-$1.96M

No prior period
Accrued Expenses

-$1.01M

No prior period
Right-of-Use Assets and Lease Liabilities, Net

-$4K

No prior period
Net Cash Used in Operating Activities

-$8.8M

No prior period
Purchases of Property and Equipment

-$19K

No prior period
Purchases of Short-Term Investments

-$7.31M

No prior period
Maturities of Short-Term Investments

$4.5M

No prior period
Net Cash Provided by (Used in) Investing Activities

-$2.83M

No prior period
Proceeds from Exercise of Stock Options

$0.00

No prior period
Proceeds from ATM Facility, Net of Issuance Costs

$0.00

No prior period
Net Cash Provided by Financing Activities

$0.00

No prior period
Effect of Exchange Rate Changes on Cash and Cash Equivalents

-$17K

No prior period
Net Decrease in Cash and Cash Equivalents

-$11.6M

No prior period
Cash and Cash Equivalents at Beginning of Period

$23.2M

No prior period
Cash and Cash Equivalents at End of Period

$11.6M

No prior period
Stock Options Issued and Outstanding

9.0M

No prior period
Warrants for Common Stock

1.4M

No prior period
Awards Available Under 2018 Equity Incentive Plan

340.1K

No prior period
Awards Available Under 2024 Inducement Plan

1.5M

No prior period
Employee Stock Purchase Plan

1.0M

No prior period
Total Common Stock Reserved for Future Issuance

13.3M

No prior period
Capital Expenditures

-$19K

Previous: -$223K+91.5%
Free Cash Flow

-$2.75M

Previous: -$4.16M+33.9%
Net Income

-$2.73M

Previous: -$3.94M+30.6%
Operating Income

-$2.79M

Previous: -$4.11M+32.1%
R&D Expense

$9.74M

No prior period
Stock-Based Comp

$972K

Previous: $1.04M-6.4%

Revenue & EPS history

Equillium · Revenue · Quarterly

$10.7M

Q1 2024+20.4%vs Q1 2023
Beat estimate in 6 of 8 quarters(75%)
ActualEstimate

Forward guidance

Equillium anticipates several milestones in 2024, including topline data from the EQ101 Phase 2 study in alopecia areata, the interim review of the EQUATOR Phase 3 study of itolizumab in acute graft-versus-host disease, and Ono's option exercise decision for itolizumab.

Tailwinds

  • Positive topline data from Phase 1b EQUALISE study of itolizumab in lupus nephritis patients.
  • Completion of enrollment in Phase 2 study of EQ101 for the treatment of moderate to severe alopecia areata.
  • Potential exercise payment of approximately $321 million from Ono if they exercise their option to acquire rights to itolizumab.
  • Additional milestone payments of approximately $101 million eligible to be received if Ono exercises their option.
  • Cash balance expected to fund operations into the second half of 2025.

Headwinds

  • Risks related to Ono's financial condition and decision to exercise its option.
  • Uncertainties related to Equillium's capital requirements.
  • Risk of having to use cash in ways or on timing other than expected.
  • Impact of market volatility on cash reserves.
  • Dependence on successful clinical trial outcomes and regulatory approvals.

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+1.0%

Avg return

Earnings day

-0.2%

Avg return

5 days after

-1.3%

Avg return

30 days after

55%

17 / 31 earnings

Positive

+42.0%

Q3 2020

Best reaction

-27.0%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+1.8%-18.9%
Q3 2025+23.8%+20.2%+52.4%
Q2 2025+16.3%+16.3%+90.8%
Q1 2025+5.4%+5.4%-5.4%
Q1 2026+5.4%+5.4%-5.4%
Q4 2024-2.5%-10.0%-16.0%
Q3 2024-19.5%-20.0%-17.6%
Q2 2024-4.6%+0.0%+27.4%
Q1 2024-10.0%-9.4%-52.9%
Q4 2023-27.0%-18.1%-36.5%
Q3 2023-1.8%+0.0%+22.0%
Q2 2023+3.9%+2.6%+6.5%
Q1 2023+3.6%+7.1%+17.9%
Q4 2022+12.3%+10.8%-4.6%
Q3 2022+6.5%+5.9%-28.2%
Q2 2022+1.4%-1.8%-25.5%
Q1 2022+3.7%+13.8%+0.0%
Q4 2021+0.0%-9.1%-10.3%
Q3 2021-13.6%-14.5%-27.0%
Q2 2021+2.7%+2.2%-2.4%
Q1 2021+6.1%+22.3%+19.0%
Q4 2020-8.5%-12.7%-19.5%
Q3 2020+42.0%+27.6%+34.1%
Q2 2020-12.8%-29.7%-45.0%
Q1 2020-14.9%-20.6%-19.7%
Q4 2019-1.1%+2.3%+7.5%
Q3 2019-1.2%+7.1%+45.7%
Q2 2019-0.5%+7.1%-0.5%
Q1 2019+2.0%+2.5%+0.3%
Q4 2018+6.1%+9.2%-20.2%
Q3 2018+6.4%-8.7%-24.5%
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017

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