NASDAQ$OMGAQ

Omega Therapeutics Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Announced fourth quarter and full year 2023 financial results and provided a strategic update.

Omega Therapeutics reported clinical validation of an epigenomic controller, a research collaboration with Novo Nordisk, and a strategic prioritization to extend cash runway into Q1 2025.

  • Advanced OTX-2002 in MYCHELANGELO™ I trial, demonstrating encouraging disease control rate in late-stage HCC patients.
  • Established a research collaboration with Novo Nordisk to develop an epigenomic controller for obesity, expanding the pipeline into the cardiometabolic space.
  • Announced strategic prioritization to focus resources on potential near-term value drivers, support long-term growth, and extend cash runway into Q1 2025.
  • OTX-2002 continued to be generally well tolerated, with no dose-limiting toxicities observed.

Headline financials

Total Revenue

$989K

Previous: $735K+34.6%
EPS (adj)

-$0.37

Previous: -$0.64+42.2%
Capital Expenditures

$1.11M

Previous: $292K+280.5%
Net Income

-$20.2M

Previous: -$30.8M+34.4%
Operating Income

-$20.7M

Previous: -$31M+33.2%
Gross Profit

-$792K

Previous: -$580K-36.6%
R&D Expense

$15.5M

No prior period
Stock-Based Comp

$2.11M

Previous: $2.12M-0.4%

Revenue & EPS history

Omega Therapeutics · Revenue · Quarterly

$989K

Q4 2023+34.6%vs Q4 2022
Beat estimate in 9 of 11 quarters(82%)
ActualEstimate

Forward guidance

Omega Therapeutics is focused on advancing its lead program and maximizing value creation from its platform, with expectations to extend cash runway into Q1 2025.

Tailwinds

  • Achieve key clinical data readouts from the monotherapy dose escalation and dose expansion stages of the MYCHELANGELO I clinical trial.
  • Prioritize preclinical programs including OTX-2101 for non-small cell lung cancer (NSCLC).
  • Prioritize the HNF4A program in liver regeneration.
  • Continue development of an epigenomic controller for obesity in collaboration with Novo Nordisk.
  • Continue core work on platform biology, epigenomic controllers, and characterization of LNP delivery to the lung and other tissues.

Headwinds

  • Difficult but necessary actions to streamline our team and optimize our R&D efforts and cost structure.
  • Changes will unfortunately affect a number of our colleagues.
  • Uncertainty regarding preclinical development, especially for a new class of medicines such as epigenomic controllers.
  • Potential delays in and unforeseen costs arising from our clinical trials.
  • Product candidates may be associated with serious adverse events, undesirable side effects or have other properties that could halt their regulatory development

Historical earnings impact

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

Avg. return before/after earnings

Based on 9 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-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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