NASDAQ$OMGAQ

Omega Therapeutics Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Announced third quarter 2021 financial results and outlined key corporate objectives.

Omega Therapeutics reported financial results for the third quarter ended September 30, 2021, highlighting the advancement of OTX-2002 through IND-enabling studies, a strategic collaboration with Stanford University School of Medicine, and a strong balance sheet with $234.3 million in cash and cash equivalents.

  • OTX-2002, targeting c-MYC for hepatocellular carcinoma, is advancing through IND-enabling studies.
  • A strategic collaboration was established with Stanford University School of Medicine for potential future Omega Epigenomic Controller development candidates.
  • The company has a strong balance sheet with $234.3 million in cash and cash equivalents as of September 30, 2021.
  • Completed a successful IPO, raising $141.1 million in aggregate gross proceeds.

Headline financials

EPS (adj)

-$0.57

Previous: -$0.26-115.3%
Capital Expenditures

$353K

No prior period
Free Cash Flow

-$16.8M

No prior period
Net Income

-$18.5M

Previous: -$8.24M-124.8%
Operating Income

-$17.2M

Previous: -$8.05M-114.1%
Cash & Equivalents

$234M

No prior period
Total Assets

$243M

No prior period
Stock-Based Comp

$1.12M

No prior period

Revenue & EPS history

Omega Therapeutics · Revenue · Quarterly

$2.61M

Q3 2024+214.3%vs Q3 2023
Beat estimate in 9 of 11 quarters(82%)
ActualEstimate

Forward guidance

Omega Therapeutics is focused on advancing its OMEGA platform and pipeline of Omega Epigenomic Controllers, with key objectives including filing an IND for OTX-2002 in the first half of 2022 and identifying additional development candidates.

Tailwinds

  • Targeting filing an IND for OTX-2002 in the first half of 2022.
  • Working on multiple programs in pre-clinical studies, including ARDS with CXCL1-3/IL8, alopecia with SFRP1, NSCLC with c-MYC and liver disease with HNF4a.
  • Targeting the identification of additional development candidates for the first half of 2022 and an additional IND for the second half of 2022 or early 2023.
  • Continuing to evolve and develop its OMEGA platform.
  • Continual integration and updating of its suite of technologies that enable the development of potentially breakthrough medicines.

Headwinds

  • The novel technology on which our product candidates are based makes it difficult to predict the time and cost of preclinical and clinical development and subsequently obtaining regulatory approval, if at all
  • The substantial development and regulatory risks associated with epigenomic controller machines due to the novel and unprecedented nature of this new category of medicines
  • The incurrence of significant losses and the fact that we expect to continue to incur significant additional losses for the foreseeable future
  • Uncertainty regarding preclinical development, especially for a new class of medicines such as epigenomic controllers
  • Our product candidates may be associated with serious adverse events, undesirable side effects or have other properties that could halt their regulatory development, prevent their regulatory approval, limit their commercial potential, or result in significant negative consequences

Historical earnings impact

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

Avg. return before/after earnings

Based on 9 quarterly earnings reports

Historical avg

-5.1%

Avg return

Earnings day

-8.9%

Avg return

5 days after

-12.9%

Avg return

30 days after

47%

7 / 15 earnings

Positive

+14.2%

Q1 2023

Best reaction

-47.5%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-47.5%-25.0%-44.8%
Q3 2024-22.6%-30.7%-9.2%
Q2 2024-0.6%+0.0%-11.3%
Q1 2024-16.7%-16.1%-17.3%
Q4 2023-9.9%-15.3%-36.6%
Q3 2023-3.4%+5.1%+28.7%
Q2 2023+2.4%-14.2%-23.8%
Q1 2023+14.2%+9.1%+4.4%
Q4 2022+5.6%+7.0%-6.7%
Q3 2022-3.8%
Q2 2022+9.3%
Q1 2022+0.3%
Q4 2021-6.4%
Q3 2021+1.5%
Q2 2021+0.9%
Q1 2021
Q4 2020
Q3 2020
Q2 2020
Q1 2020

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