NYSE$RCUS

Arcus Biosciences Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Arcus Biosciences reported financial results and provided a pipeline update.

Arcus Biosciences reported fourth-quarter and full-year 2022 financial results. The company's cash, cash equivalents, and marketable securities were $1.1 billion. Revenues were $34 million for the fourth quarter 2022, and net loss was $67 million.

  • Arcus established itself as a late-stage company and made tremendous progress in the advancement of its pipeline.
  • Arcus initiated multiple registrational Phase 3 studies evaluating domvanalimab-based combinations versus standard of care.
  • Arcus advanced AB521, its HIF-2a inhibitor, into a Phase 1/1b study in patients.
  • Arcus expects multiple Phase 1b and Phase 2 clinical readouts and advancement into the clinic of at least two new drug candidates in 2023.

Headline financials

Total Revenue

$34M

Previous: $354M-90.4%
EPS (adj)

-$0.93

Previous: $3.71-125.1%
R&D Expenses

$80M

No prior period
G&A Expenses

$28M

No prior period
Capital Expenditures

$380K

Previous: $8.51M-95.5%
Free Cash Flow

-$70.1M

Previous: -$70.6M+0.7%
Net Income

-$67M

Previous: $279M-124.0%
Operating Income

-$74M

Previous: $281M-126.3%
Gross Profit

-$3.08M

Previous: $352M-100.9%
Cash & Equivalents

$1.1B

Previous: $681M+61.5%
Total Assets

$1.35B

Previous: $1.59B-15.5%
Stock-Based Comp

$16.5M

Previous: $13.8M+19.6%

Revenue & EPS history

Arcus Biosciences · Revenue · Quarterly

$34M

Q4 2022-90.4%vs Q4 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Arcus Biosciences · $8M total across 1 segment · Q4 2022

  • Other collaboration
    $8M

Forward guidance

Arcus expects cash utilization for 2023 to be between $300 million and $350 million. Its cash, cash equivalents and marketable securities on-hand is expected to be sufficient to fund operations into 2026.

Tailwinds

  • Updated analysis of the ARC-7 study is expected to be presented at the ASCO Annual Meeting in June 2023.
  • Data from the randomized cohort of ARC-6 are expected in 2023.
  • Data from ARC-9 are expected in 2023.
  • Arcus and Gilead expect PFS and OS data from all 90 patients in the ongoing Phase 1/1b ARC-8 trial in the first half of 2023.
  • Initial data from ARC-20 are anticipated in late 2023 or early 2024.

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 2022

Historical avgQ4 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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