NYSE$RCUS

Arcus Biosciences Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported financial results for the third quarter ended September 30, 2022 and provided a pipeline update on its six clinical-stage molecules.

Arcus Biosciences reported Q3 2022 financial results, highlighting a strategic amendment to the ARC-10 Phase 3 study and advancements in its clinical pipeline, including the initiation of the ARC-20 Phase 1/1b study. The company's cash, cash equivalents, and marketable securities totaled $1.2 billion, sufficient to fund operations into 2026.

  • Arcus and Gilead Sciences are pursuing a broad development strategy for their anti-TIGIT antibody domvanalimab in lung cancer, which now includes three ongoing registrational Phase 3 trials in multiple non-small cell lung cancer (NSCLC) settings.
  • Topline data disclosure for the ongoing ARC-7 trial in NSCLC is on track for this quarter with a planned presentation of the data at a medical conference in 2023.
  • Arcus initiated ARC-20, a Phase 1/1b study of HIF-2a inhibitor AB521 in cancer patients; data from the healthy volunteer study enable Arcus to start dose escalation in patients at 25 mg once-daily, a pharmacologically active dose.
  • With $1.2 billion in cash, cash equivalents, and marketable securities and funding into 2026, Arcus is well-positioned to advance its extensive pipeline.

Headline financials

Total Revenue

$33.6M

Previous: $9.46M+254.9%
EPS (adj)

-$0.90

Previous: -$1.11+18.9%
Capital Expenditures

-$5.62M

Previous: -$17.6M+68.0%
Free Cash Flow

-$70.5M

Previous: -$95.5M+26.2%
Net Income

-$64.9M

Previous: -$78M+16.7%
Operating Income

-$69.4M

Previous: -$78.1M+11.2%
Gross Profit

$300K

Previous: $0.00
Cash & Equivalents

$1.19B

Previous: $743M+60.3%
Total Assets

$1.39B

Previous: $839M+66.1%
Stock-Based Comp

$16.3M

Previous: $14.6M+11.5%

Revenue & EPS history

Arcus Biosciences · Revenue · Quarterly

$33.6M

Q3 2022+254.9%vs Q3 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Arcus Biosciences · $9.84M total across 1 segment · Q3 2022

  • Other collaboration
    $9.84M

Forward guidance

Arcus Biosciences anticipates several key milestones, including data disclosures and presentations for ARC-7, ARC-6, and ARC-9 trials, initiation of the EDGE-Lung Phase 2 platform study, and a Phase 1 trial for AB598.

Tailwinds

  • Fourth interim analysis and topline data disclosure for ARC-7 is on track for this quarter, with a planned presentation of data at a medical conference in 2023.
  • Data from the randomized cohort of ARC-6 evaluating etrumadenant plus zimberelimab and docetaxel versus docetaxel in second-line (2L) metastatic castrate-resistant prostate cancer (CRPC) are expected in house by year-end, with a data presentation planned for 2023.
  • Data from ARC-9, a Phase 1b/2 study evaluating etrumadenant-based combinations in 2L and third-line (3L) metastatic colorectal cancer (mCRC), are expected in the first half of 2023.
  • In the first half of 2023, Arcus expects PFS and OS data from all 90 patients in its ongoing ARC-8 trial evaluating quemliclustat plus chemotherapy with or without zimberelimab in first-line pancreatic cancer.
  • Arcus remains on track to initiate a Phase 1 trial in cancer patients for AB598, its anti-CD39 antibody, in the first half of 2023.

Headwinds

  • Risks associated with preliminary and interim data not being guarantees that future data will be similar.
  • The unexpected emergence of adverse events or other undesirable side effects.
  • Difficulties or delays in initiating or conducting clinical trials due to difficulties or delays in the regulatory process, enrolling subjects or manufacturing or supplying product for such clinical trials, all of which may be exacerbated by the COVID-19 pandemic.
  • Arcus’s dependence on the collaboration with Gilead for the successful development and commercialization of its optioned molecules.
  • Difficulties associated with the management of the collaboration activities or expanded clinical programs.

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 2022

Historical avgQ3 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro