NYSE$RCUS

Arcus Biosciences Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported financial results for the second quarter and provided a pipeline update.

Arcus Biosciences reported collaboration and license revenues of $26.8 million for the second quarter ended June 30, 2022, and a net loss of $66.6 million. The company's cash, cash equivalents, and investments totaled $1.27 billion, expected to fund operations into 2026. They are advancing clinical programs, including four registrational Phase 3 trials with domvanalimab-based combinations.

  • Four registrational Phase 3 trials evaluating domvanalimab-based combinations are ongoing or expected to start by year-end.
  • An interim analysis was conducted for the ongoing Phase 1/1b ARC-8 trial of quemliclustat plus chemotherapy, with or without zimberelimab, in pancreatic ductal adenocarcinoma (PDAC).
  • Arcus is on track to initiate ARC-20, a Phase 1/1b study to evaluate AB521, Arcus’s HIF-2a inhibitor, in cancer patients in Q3 2022.
  • Arcus nominated a new development candidate, AB801 (an AXL inhibitor), in the second quarter; and at least two new molecules are expected to advance into the clinic in 2023.

Headline financials

Total Revenue

$26.8M

Previous: $9.46M+182.8%
EPS (adj)

-$0.93

Previous: -$1.09+14.7%
Capital Expenditures

-$4.3M

Previous: -$9.71M+55.7%
Free Cash Flow

-$70.9M

Previous: -$85.7M+17.2%
Net Income

-$66.6M

Previous: -$76M+12.3%
Operating Income

-$69M

Previous: -$76.1M+9.4%
Gross Profit

$0.00

No prior period
Cash & Equivalents

$1.27B

Previous: $805M+57.9%

Revenue & EPS history

Arcus Biosciences · Revenue · Quarterly

$26.8M

Q2 2022+182.8%vs Q2 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Arcus Biosciences · $26.8M total across 1 segment · Q2 2022

  • License and development
    $26.8M

Forward guidance

Arcus Biosciences anticipates several milestones in their clinical programs. Topline disclosure from the Phase 2 ARC-7 study and data from the randomized cohort of ARC-6 are expected in the second half of 2022. Data from ARC-9 are expected in the first half of 2023.

Tailwinds

  • Complete enrollment in Q3 2022 of 150 patients for ARC-7.
  • STAR-121 is expected to achieve first site initiation in the third quarter.
  • Arcus is on track to initiate ARC-20, a Phase 1/1b study to explore the safety and clinical activity of AB521 in cancer patients in Q3 2022.
  • Arcus expects to nominate a potential first-in-class small molecule candidate designed to treat a wide range of inflammatory conditions in the second half of 2022.
  • Arcus expects cash, cash equivalents and marketable securities on-hand to be sufficient to fund operations into 2026.

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 2022

Historical avgQ2 2022

+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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