NYSE$RCUS

Arcus Biosciences Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Arcus Biosciences reported financial results for the third quarter ended September 30, 2021 and provided an update on the ARC-7 study of domvanalimab

Arcus Biosciences reported its Q3 2021 financial results, highlighting the initiation of Gilead's opt-in review process for their anti-TIGIT program and providing updates on their clinical studies, including ARC-7 and ARC-8. The company ended the quarter with $743.4 million in cash and investments, expecting it to fund operations through at least 2023.

  • Both domvanalimab-containing arms demonstrated differentiated clinical activity compared to that of zimberelimab alone in a second interim analysis of ARC-7, a Phase 2 study in first-line metastatic non-small cell lung cancer (NSCLC).
  • Gilead Sciences has initiated its opt-in review process for Arcus's anti-TIGIT program, with a decision expected before the end of 2021; if exercised, Arcus would receive a $275 million opt-in payment.
  • Updated data from ARC-8, a Phase 1 study of quemliclustat, Arcus's small molecule anti-CD73 inhibitor for pancreatic cancer, is planned for fall 2021.
  • Arcus ended the quarter with $743.4 million of cash and investments and funding through at least 2023.

Headline financials

Total Revenue

$9.46M

Previous: $64.5M-85.3%
EPS (adj)

-$1.11

Previous: $0.03-3800.0%
Capital Expenditures

-$17.6M

Previous: -$1.54M-1044.0%
Free Cash Flow

-$95.5M

Previous: $286K-33508.0%
Net Income

-$78M

Previous: $1.82M-4379.6%
Operating Income

-$78.1M

Previous: $1.55M-5134.5%
Gross Profit

$0.00

Previous: $12.7M-100.0%
Cash & Equivalents

$743M

Previous: $785M-5.3%
Total Assets

$839M

Previous: $811M+3.5%
Stock-Based Comp

$14.6M

Previous: $6M+143.0%

Revenue & EPS history

Arcus Biosciences · Revenue · Quarterly

$9.46M

Q3 2021-85.3%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Arcus Biosciences · $9.5M total across 1 segment · Q3 2021

  • License and development
    $9.5M-85.3%

Forward guidance

Arcus Biosciences anticipates several milestones in the near future across its clinical programs. Key expectations include full enrollment of ARC-7 by mid-2022 with data presentation later in the year, initiation of the PACIFIC-8 registrational Phase 3 study by the end of 2021, and an update on ARC-8 planned for this fall. The company is also planning additional Phase 3 studies of domvanalimab-based combinations and expects initial randomized data from ARC-4 in 1H22.

Tailwinds

  • ARC-7 is expected to be fully enrolled by mid-2022, and a data presentation, including progression-free survival data, is anticipated later in 2022.
  • AstraZeneca and Arcus remain on track to initiate the PACIFIC-8 registrational Phase 3 study by the end of 2021.
  • Several additional clinical studies of domvanalimab-based combinations are planned, including two additional Phase 3 studies anticipated to start in mid-2022.
  • An update on ARC-8, Arcus's Phase I study of quemliclustat, is planned for this fall.
  • Initial randomized data from ARC-4 is expected to be presented in 1H22.

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 Q3 2021

Historical avgQ3 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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