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Kronos Bio, Inc. (KRON)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $2.27M, down 0.7% year over year and down sequentially from $2.37M; EPS was $(0.43) with net loss of $(25.8M), driven by $16.1M impairment/restructuring charges that widened operating loss .
  • R&D and G&A expenses continued to decline sequentially ($8.4M and $4.9M, respectively), reflecting cost controls; however, impairment charges in Q4 materially elevated total operating expenses to $29.4M .
  • Cash, cash equivalents, and investments ended Q4 at $112.4M, down from $124.9M in Q3 and $136.6M in Q2 as the company evaluates strategic alternatives; management announced an ~83% workforce reduction and a CEO transition to Deborah Knobelman effective December 3, 2024 .
  • No formal revenue/EPS guidance and no Q4 earnings call transcript available; prior cash runway commentary from Q2 (“into 2H 2026”) was not reiterated post strategic review announcement in Q3, indicating guidance under reassessment .
  • Stock reaction catalysts: strategic alternatives process, discontinuation of istisociclib in ovarian cancer, CEO transition and deep cost reductions; preclinical progress in p300 KAT inhibitor programs (KB-9558 oncology, KB-7898 autoimmune) supported the longer-term platform narrative .

What Went Well and What Went Wrong

What Went Well

  • Sequential OpEx discipline: R&D fell to $8.4M and G&A to $4.9M in Q4, continuing reductions vs Q3 ($12.3M R&D, $5.8M G&A) and Q2 ($13.8M R&D, $6.4M G&A) .
  • Platform progress: Multiple preclinical data presentations advanced KB-9558 for multiple myeloma and HPV-driven tumors, and KB-7898 for Sjögren’s disease; “data demonstrate… strong relationship between IRF4 and p300 in Multiple Myeloma” and p300 inhibition selectively represses HPV E6/E7 .
  • Strategic clarity: Initiation of strategic alternatives to maximize stockholder value, paired with significant cost actions and leadership transition to interim CEO/CFO/COO Deborah Knobelman, intended to align resources with opportunity set .

What Went Wrong

  • Program setback: Discontinued istisociclib (CDK9) in platinum‑resistant high‑grade serous ovarian cancer after emerging neurological safety events, with 5/7 patients showing Grade 1–3 events and 3 discontinuations; this removed a late‑stage clinical asset .
  • Elevated non‑cash charges: Q4 impairment and restructuring were $16.1M, lifting total OpEx to $29.4M and driving operating loss of $(27.2M) and net loss of $(25.8M) despite low revenue base .
  • Reduced visibility: Q4 provided no formal guidance and no earnings call transcript; prior cash runway (“into 2H 2026”) from Q2 was not reiterated after the strategic review began in Q3, complicating near‑term forecasting .

Financial Results

Quarterly P&L and Balance Sheet (oldest → newest)

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$2.688 $2.370 $2.270
Net Loss ($USD Millions)$(16.200) $(14.108) $(25.813)
EPS (Basic & Diluted) ($USD)$(0.27) $(0.23) $(0.43)
R&D Expense ($USD Millions)$13.765 $12.268 $8.409
G&A Expense ($USD Millions)$6.368 $5.818 $4.924
Impairment & Restructuring ($USD Millions)$0.578 $0.000 $16.091
Operating Loss ($USD Millions)$(18.023) $(15.716) $(27.154)
EBIT Margin %-670.7% (calc from )-662.9% (calc from )-1195.9% (calc from )
Net Income Margin %-602.7% (calc from )-595.5% (calc from )-1137.5% (calc from )
Cash, Cash Equivalents & Investments ($USD Millions, period-end)$136.646 $124.857 $112.422

Notes: Margins are calculated from reported revenue, operating loss, and net loss in the cited financial statements.

Year-over-Year Q4 Comparison

MetricQ4 2023Q4 2024
Revenue ($USD Millions)$2.286 $2.270
Net Loss ($USD Millions)$(25.320) $(25.813)
EPS (Basic & Diluted) ($USD)$(0.43) $(0.43)
R&D Expense ($USD Millions)$18.704 $8.409
G&A Expense ($USD Millions)$9.213 $4.924
Impairment & Restructuring ($USD Millions)$1.960 $16.091

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash RunwayCompany-level“Sufficient resources to fund planned operations into 2H 2026” (as of Q2) Not reiterated post Q3 strategic review Withdrawn/Under Review
Operating ExpensesCompany-levelNot formally guided“Implement significant expense reduction strategies” (Q3 PR); ~83% workforce reduction by year end (Nov. 27 CEO transition PR) Lowered materially
Revenue/EPS/MarginsQ4 2024 and FYNo formal guidanceNo formal guidance providedMaintained “no guidance”

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Strategic AlternativesNot discussedInitiated process to explore M&A/asset sales; engage financial advisor Process ongoing; leadership transition underscores repositioning Increasing focus
R&D ExecutionIstisociclib update timing; KB-9558 IND-enabling on track; new autoimmune p300 program Discontinued istisociclib due to unfavorable risk-benefit; emphasis on p300 programs Preclinical data highlights in oncology and autoimmune; no new clinical data Shift to preclinical core
Cost StructureBaseline OpExExpense reduction strategies initiated Large impairment/restructuring; ~83% workforce reduction Aggressive cuts
Cash & Liquidity$136.6M cash/investments; runway to 2H 2026 $124.9M cash/investments; runway not reiterated $112.4M cash/investments; focus on alternatives Declining balance; clarity reduced
Oncology ProgramsKB-9558 MM/HPV progressContinued platform narrative; discontinued CDK9 Preclinical data strengthens IRF4–p300 rationale; HPV data promising Platform consolidation
Autoimmune ProgramsKB-7898 nominated; IND-enabling planned Ongoing IND-enabling; strategic review context Data presented at ACR; continued advancement Advancing

Management Commentary

  • “While we believe istisociclib has provided benefit to a small number of patients… the emerging profile in patients with platinum-resistant ovarian cancer suggests an unfavorable risk-benefit profile and does not warrant further clinical development.” — Norbert Bischofberger, Ph.D., CEO (Q3 PR) .
  • “We continue to believe in the promise of our proprietary discovery technology… data… demonstrate that inhibition of key signaling pathways leads to restoration of tumor suppression activity in cancer cells or reduction of inflammation in autoimmune disease.” — Charles Lin, Ph.D., CSO (Q3 PR) .
  • “We have the highest confidence in Deb’s ability to lead Kronos Bio… during this time of significant transition.” — Arie Belldegrun, M.D., Board Chair (CEO transition PR) .
  • “It was a difficult decision to implement a reduction in force as we evaluate strategic alternatives… We thank our departing employees…” — Deborah Knobelman, Ph.D., President & Interim CEO/CFO/COO (CEO transition PR) .

Q&A Highlights

  • No Q4 2024 earnings call transcript was available among company filings/press releases; commentary derived from press releases .
  • Strategic alternatives: management reiterated engagement with a financial advisor and breadth of potential outcomes (M&A, reverse merger, asset sales) .
  • Cost actions: workforce reduction (~83%) and impairment charges signal a pivot to preserve cash while reassessing portfolio .

Estimates Context

  • S&P Global consensus estimates for KRON were unavailable for Q4 2024 due to missing CIQ mapping; as a result, comparisons to Street revenue/EPS could not be performed.
  • Given the absence of consensus, no beat/miss analysis is provided; near‑term modeling likely needs to incorporate the discontinuation of istisociclib and restructuring charges .

Key Takeaways for Investors

  • Q4 print was dominated by non‑cash impairment/restructuring ($16.1M), driving operating and net losses despite declining core OpEx; expect ongoing cost reductions to lower cash burn in 2025 .
  • The elimination of istisociclib as a development program shifts the value proposition toward p300 KAT inhibitor assets (KB-9558 oncology, KB-7898 autoimmune) and the discovery platform, with supportive preclinical data .
  • Strategic alternatives and leadership transition are the primary stock catalysts; outcomes could range from business combinations to asset sales, with timing uncertain and disclosure limited until decisions are made .
  • Cash fell to $112.4M; with deep workforce cuts (~83%) and portfolio streamlining, the company is likely to prioritize preserving optionality while pursuing strategic paths to unlock value .
  • Lack of formal guidance and absence of a Q4 call reduce near‑term visibility; traders should watch for 8‑K updates, press releases on the review process, and any partnering/transaction announcements .
  • Modeling implications: remove istisociclib contributions, incorporate restructuring/impairment effects in FY 2024, and assume lower OpEx run‑rate starting 2025; Street estimate comparisons were not possible due to unavailable S&P mapping .
  • Medium‑term thesis hinges on monetizing the platform via partnerships or strategic transactions and progressing KB‑9558/KB‑7898 toward IND and early clinical milestones .