NYSE$RCUS

Arcus Biosciences Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported financial results for the fourth quarter and year ended December 31, 2021 and provided a corporate update on its six clinical-stage molecules.

Arcus Biosciences reported strong financial results for Q4 2021, driven by license revenue from Gilead's option exercise. The company is advancing its clinical programs with a strong cash position, including multiple Phase 3 studies for domvanalimab.

  • Arcus is starting 2022 with a strong cash position and late-stage pipeline.
  • First patient was dosed in PACIFIC-8, a registrational Phase 3 study being conducted in collaboration with AstraZeneca.
  • Data from ARC-7, an ongoing randomized 150-patient three-arm study in first-line PD-L1≥50% NSCLC, are expected to be presented in 2H22.
  • Arcus met the first milestone under an agreement with BVF, which is focused on the discovery and development of a potentially first-in-class small molecule designed to treat a wide range of inflammatory conditions.

Headline financials

Total Revenue

$354M

Previous: $9.49M+3636.7%
EPS (adj)

$3.71

Previous: -$0.82+552.4%
Capital Expenditures

$8.51M

Previous: $1.52M+460.0%
Free Cash Flow

-$70.6M

Previous: -$51.4M-37.4%
Net Income

$279M

Previous: -$51.9M+638.8%
Operating Income

$281M

Previous: -$52M+640.8%
Gross Profit

$352M

Previous: -$39.2M+997.5%
Cash & Equivalents

$681M

Previous: $735M-7.3%
Total Assets

$1.59B

Previous: $772M+106.1%
Stock-Based Comp

$13.8M

Previous: $7.89M+75.1%

Revenue & EPS history

Arcus Biosciences · Revenue · Quarterly

$354M

Q4 2021+3,636.7%vs Q4 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

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

  • Other collaboration
    $10M+1.6%

Forward guidance

Arcus is focused on advancing its clinical programs and presenting data from ongoing trials.

Tailwinds

  • Presentations of randomized data for domvanalimab and etrumadenant in 1L PD-L1 high non-small cell lung cancer (NSCLC; ARC-7) are planned for 2H:22
  • Initial pharmacokinetic (PK)/pharmacodynamic(PD) data for AB521, Arcus’s HIF-2a inhibitor, in healthy volunteers confirm its potential to have an improved clinical profile compared to the approved HIF-2a inhibitor; data to be presented at a conference this March
  • First patient dosed in PACIFIC-8, a registrational, Phase 3 study evaluating domvanalimab plus durvalumab in unresectable, Stage 3 NSCLC with AstraZeneca
  • Two additional Phase 3 studies for domvanalimab are planned for this year in lung and gastrointestinal cancers with Gilead
  • Arcus is well positioned to advance its programs with $1.4 billion in cash and cash equivalents following receipt of option payments from Gilead Sciences in January 2022, which is expected to provide Arcus with funding into 2026

Headwinds

  • Potential difficulties or delays in initiating or conducting clinical trials due to the regulatory process.
  • Risk of unexpected adverse events or other undesirable side effects.
  • Uncertainty associated with pharmaceutical product development and clinical trials.
  • Changes in the competitive landscape for Arcus’s programs.
  • Dependence on the collaboration with Gilead for the successful development and commercialization of its optioned molecules

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 Q4 2021

Historical avgQ4 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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