NYSE$RCUS

Arcus Biosciences Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Arcus Biosciences reported its fourth-quarter and full-year 2024 financial results, highlighting pipeline advancements and a strong cash position.

Arcus Biosciences reported a net loss of $94 million for Q4 2024, an increase from $81 million in Q4 2023, despite an increase in total revenues to $36 million. The company ended the year with a strong cash position of $992 million, positioning it well for upcoming pivotal readouts.

  • New data from the Phase 1/1b ARC-20 study showed that casdatifan improved upon the rate of primary progression, overall response rate (ORR) and progression-free survival (PFS) relative to published data from studies with HIF-2a inhibitors to date.
  • Initiation of the Phase 3 study for PEAK-1 evaluating casdatifan in combination with cabozantinib versus cabozantinib in IO-experienced patients with clear cell renal cell carcinoma (ccRCC) is expected in the first half of 2025.
  • Arcus completed a $150 million financing and continues to be well positioned to advance its pipeline with $992 million in cash, cash equivalents and marketable securities as of December 31, 2024.
  • The company expects its cash and investments, together with proceeds from the February 2025 equity financing, to provide funding through initial pivotal read-outs for domvanalimab, quemliclustat and casdatifan.

Headline financials

Total Revenue

$36M

Previous: $31M+16.1%
EPS (adj)

-$1.03

Previous: -$1.08+4.6%
Net Income

-$94M

Previous: -$81M-16.0%
Operating Income

-$103M

Previous: -$91M-13.2%

Revenue & EPS history

Arcus Biosciences · Revenue · Quarterly

$36M

Q4 2024+16.1%vs Q4 2023
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 anticipates advancing its pipeline with a strong cash position, initiating new clinical trials, and expecting key data readouts in 2025 and 2026.

Tailwinds

  • Initiation of the Phase 3 PEAK-1 study for casdatifan in IO-experienced ccRCC is expected in the first half of 2025.
  • Initial data from the ARC-20 cohort evaluating casdatifan plus cabozantinib are expected to be presented in mid-2025.
  • Three new expansion cohorts within ARC-20 will be initiated in the first quarter of 2025, including casdatifan plus zimberelimab in all-comer 1L ccRCC.
  • Overall survival data from the Phase 2 EDGE-Gastric study for domvanalimab plus zimberelimab and chemotherapy are expected in fall 2025.
  • Arcus anticipates advancing AB801 into expansion cohorts in non-small cell lung cancer (NSCLC) in the second half of 2025.

Headwinds

  • Preliminary and interim data are not guarantees that future data will be similar.
  • Unexpected emergence of adverse events or other undesirable side effects in investigational products could occur.
  • Difficulties or delays in initiating or conducting clinical trials due to regulatory process, enrolling subjects, or manufacturing/supply issues.
  • Unfavorable global economic, political, and trade conditions could impact operations.
  • Inherent uncertainty associated with pharmaceutical product development and clinical trials.

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 2024

Historical avgQ4 2024

+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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