NYSE$RCUS

Arcus Biosciences Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported financial results for the second quarter and provided operational highlights.

Arcus Biosciences reported its second quarter 2021 financial results, highlighting the advancement of its clinical-stage molecules and partnerships, particularly with Gilead. The company ended the quarter with $805.1 million in cash and investments, and collaboration revenue was $9.5 million. Net loss for the quarter was $76.0 million.

  • All five clinical-stage molecules continue to advance with six ongoing randomized Phase 2 and Phase 3 studies in major tumor types.
  • AB521, a small molecule HIF-2α inhibitor, expected to enter the clinic in 4Q21.
  • Encouraging results were reported from the interim analysis for ARC-7, providing initial validation of domvanalimab combinations.
  • The company ended the quarter with $805 million of cash and investments.

Headline financials

Total Revenue

$9.46M

Previous: $1.75M+440.6%
EPS (adj)

-$1.09

Previous: -$0.93-17.2%
Capital Expenditures

-$9.71M

Previous: -$465K-1989.0%
Free Cash Flow

-$85.7M

Previous: -$45.5M-88.2%
Net Income

-$76M

Previous: -$45.1M-68.5%
Operating Income

-$76.1M

Previous: -$45.4M-67.8%
Cash & Equivalents

$805M

Previous: $462M+74.1%

Revenue & EPS history

Arcus Biosciences · Revenue · Quarterly

$9.46M

Q2 2021+440.6%vs Q2 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Arcus Biosciences · $10M total across 1 segment · Q3 2023

  • Other collaboration
    $10M+1.6%

Forward guidance

Arcus Biosciences anticipates several milestones in the near future.

Tailwinds

  • Results from the interim analysis for ARC-7 are expected to be submitted later this year for a presentation in 4Q21 or in 1H22.
  • An opt-in trigger decision by Gilead for the anti-TIGIT program is anticipated by year-end 2021.
  • Initiation of PACIFIC-8, in collaboration with AstraZeneca, is anticipated to start in 4Q21.
  • Opening of a new arm to evaluate quemli in second-line pancreatic cancer is expected in 3Q21.
  • Initiation of clinical development for the HIF-2α inhibitor, AB521, is anticipated to occur in 4Q21.

Headwinds

  • The inherent uncertainty associated with the COVID-19 pandemic, including the duration and/or severity of the pandemic and actions by government authorities to contain or slow the spread of the virus
  • The inherent uncertainty associated with pharmaceutical product development and clinical trials
  • Dependence on the collaboration with Gilead for the successful development and commercialization of investigational products
  • Delays in clinical trials due to difficulties or delays in the regulatory process, enrolling subjects or manufacturing or supplying product for such clinical trials
  • The unexpected emergence of adverse events or other undesirable side effects

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 Q2 2021

Historical avgQ2 2021

+2.4%

Avg return

Earnings day

+3.6%

Avg return

5 days after

+6.7%

Avg return

30 days after

59%

19 / 32 earnings

Positive

+19.2%

Q4 2021

Best reaction

-7.9%

Q1 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%-2.6%-5.6%
Q4 2025-4.0%+10.7%+0.0%
Q3 2025-1.1%+2.7%+28.9%
Q1 2025-1.2%+8.4%+22.8%
Q4 2024-1.0%-7.3%-18.4%
Q3 2024+7.7%+16.1%+13.1%
Q2 2024+11.5%+11.7%+12.3%
Q1 2024+3.8%+10.6%-0.4%
Q4 2023+18.5%+18.4%-1.0%
Q3 2023+2.8%-13.0%+0.4%
Q2 2023-3.0%-4.3%+18.3%
Q1 2023-5.2%-6.9%+9.0%
Q4 2022-4.0%+0.6%-3.7%
Q3 2022-2.2%-7.9%+43.2%
Q2 2022+6.0%+7.9%-2.1%
Q1 2022+11.9%-9.7%+10.1%
Q4 2021+19.2%+24.6%+20.4%
Q3 2021+11.4%+9.1%+26.5%
Q2 2021-7.3%-2.5%+13.7%
Q1 2021-7.9%-11.7%-23.4%
Q4 2020+2.9%+10.3%-1.7%
Q3 2020-7.1%+3.8%+33.1%
Q2 2020+2.3%+8.1%-1.1%
Q1 2020-0.7%+11.4%+11.3%
Q4 2019+7.1%-2.6%-19.8%
Q3 2019+1.6%-6.3%-3.2%
Q2 2019+1.8%+10.3%+18.2%
Q1 2019+4.9%+9.1%-15.5%
Q4 2018-6.8%+11.6%-3.7%
Q3 2018+8.9%-1.1%+8.0%
Q2 2018+2.2%+7.5%+19.0%
Q1 2018+2.9%-1.1%+6.9%
Q4 2017
Q3 2017
Q2 2017
Q1 2017

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