NYSE$RCUS

Arcus Biosciences Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Arcus Biosciences' financial position was strengthened by strategic pipeline advancements.

Arcus Biosciences reported $32 million in revenues for Q3 2023, with a net loss of $71 million. The company's cash reserves are expected to fund operations into 2026, supporting ongoing clinical trials and research programs.

  • Presented data from the EDGE-Gastric Phase 2 study in first-line upper GI cancers at ASCO, highlighting domvanalimab's potential.
  • Shared encouraging objective response rates (ORR) of 80% (confirmed ORR (cORR) of 73%) in patients with PD-L1-high tumors (TAP ≥5%), 46% (all confirmed) in patients with PD-L1-low tumors (TAP <5%) and 59% (cORR of 56%) for patients overall.
  • Reported pharmacokinetic and pharmacodynamic data from the ARC-20 Phase 1b study of AB521, showing consistency with healthy volunteer results.
  • Anticipates presenting efficacy and safety data from the ARC-8 study of quemliclustat in advanced pancreatic cancer in early 2024.

Headline financials

Total Revenue

$32M

Previous: $33.6M-4.7%
EPS (adj)

-$0.94

Previous: -$0.90-4.4%
Capital Expenditures

-$18M

Previous: -$5.62M-220.3%
Free Cash Flow

-$89M

Previous: -$70.5M-26.2%
Net Income

-$71M

Previous: -$64.9M-9.4%
Operating Income

-$80M

Previous: -$69.4M-15.3%
Gross Profit

$0.00

Previous: $300K-100.0%
Cash & Equivalents

$950M

Previous: $1.19B-20.3%
Total Assets

$1.19B

Previous: $1.39B-14.6%
R&D Expense

$82M

No prior period
Stock-Based Comp

$18M

Previous: $16.3M+10.7%

Revenue & EPS history

Arcus Biosciences · Revenue · Quarterly

$32M

Q3 2023-4.7%vs Q3 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

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

  • Other collaboration
    $10M+1.6%

Forward guidance

Arcus Biosciences is focused on advancing its clinical trials and research programs, with several data readouts expected in the near term.

Tailwinds

  • Cash reserves are expected to fund operations into 2026.
  • Advancing Phase 3 trials for domvanalimab in lung and GI cancers.
  • AB521 continues to show a potentially improved clinical profile.
  • Planning to share mature OS data from the Phase 1/1b study of quemliclustat in pancreatic cancer.
  • Initiated a Phase 1 study in healthy volunteers of AB801.

Headwinds

  • Net Loss was $71 million for the third quarter 2023, compared to $65 million for the same period in 2022.
  • Research and Development (R&D) Expenses were $82 million for the third quarter 2023, compared to $77 million for the same period in 2022.
  • General and Administrative (G&A) Expenses were $30 million for the third quarter 2023, compared to $26 million for the same period in 2022.
  • The company's cash, cash equivalents and marketable securities decreased from $1.1 billion as of December 31, 2022, to $950 million as of September 30, 2023.
  • The decrease during the period is primarily due to the use of cash in research and development activities.

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 2023

Historical avgQ3 2023

+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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