Metagenomi, Inc. (MGX)·Q1 2024 Earnings Summary

Executive Summary

• Q1 2024: Collaboration revenue $11.16M, net loss $(25.15)M, and diluted EPS $(1.19); cash, cash equivalents and marketable securities were $327.4M as of March 31, 2024 .
• Regained full global rights to base editing and RIGS from Moderna; company expects to recognize $15.9M of remaining Moderna deferred revenue in Q2 2024 (and forfeit a final $5.0M payment), with collaboration revenue expected to decrease thereafter .
• Pipeline execution: CEO highlighted therapeutic‑range FVIII expression in NHPs for Hemophilia A; development candidate (DC) nomination targeted mid‑2024 and 12‑month durability data expected 2H 2024 .
• Liquidity: Management reiterated cash runway into 2027, supported by IPO proceeds and existing balances .
• The company furnished a press release and investor presentation and did not furnish an earnings call transcript in the 8‑K exhibits for Q1 2024 .

What Went Well and What Went Wrong

What Went Well

• Hemophilia A progress: “presentation … demonstrated Factor VIII expression in the therapeutic range in an ongoing NHP study” with DC nomination anticipated mid‑2024 and 12‑month durability data in 2H 2024 .
• Platform advances: At ASGCT, MGX reported base editing systems expanding genome targetability 5x vs. SpCas9 and RIGS showing targeted integration >900 bp in human cells, reinforcing competitive differentiation .
• Strategic flexibility: Regained full rights to base editing and RIGS from Moderna, broadening ability to partner target-by-target and progress wholly‑owned indications (e.g., A1AT deficiency, Wilson’s disease) .

What Went Wrong

• Expense ramp and wider losses: R&D rose to $31.4M (from $20.1M) and G&A to $8.8M (from $6.5M); net loss widened to $(25.15)M (from $(16.13)M) YoY .
• Collaboration revenue visibility: Following the Moderna termination, MGX will recognize $15.9M deferred revenue in Q2 2024, then expects collaboration revenue to decrease thereafter; $5.0M related to the arrangement is expected to be forfeited .
• No product revenue and dependence on partners: Revenue remains collaboration‑based; Ionis accounted for ~$8.07M of Q1 revenue, underscoring concentration risk .

Financial Results

Income statement comparison (YoY)

Balance sheet highlights (sequential)

Collaboration revenue by partner (YoY)

KPIs and other items

• Deferred revenue balance (Mar 31, 2024): current $48.29M; non‑current $20.31M .
• Operating cash flow (Q1 2024): $(29.85)M net cash used in operating activities .
• Cash runway: management indicates runway into 2027 .

Guidance Changes

Note: The company did not provide formal revenue/EPS guidance; collaboration revenue is expected to decrease after Q2’s deferred revenue recognition from the Moderna termination .

Earnings Call Themes & Trends

The company furnished a press release and investor presentation and did not furnish an earnings call transcript in its Q1 2024 8‑K exhibits . Thematic trajectory is drawn from the Q4 2023 results press release and Q1 2024 8‑K/10‑Q.

Management Commentary

• “Our continued execution in the first quarter of 2024 furthers our mission to develop potentially curative genetic medicines by leveraging our extensive genome editing capabilities.” — Brian C. Thomas, CEO .
• “We are excited by the reception of our presentation on our wholly‑owned investigational development program in Hemophilia A … demonstrated Factor VIII expression in the therapeutic range in an ongoing NHP study.” — Brian C. Thomas .
• “We … regained full rights to our base editing and RIGS technology, and we plan to advance these technologies in indications with significant unmet need … either on our own or in conjunction with potential partners.” — Brian C. Thomas .
• Corporate update: “we regained full global rights to … base editors and RIGS … and mutually agreed to terminate our collaboration on [PH1] … rights … were returned as part of the termination.” .

Q&A Highlights

• No Q&A provided; the company did not furnish an earnings call transcript in the Q1 2024 8‑K exhibits (press release EX‑99.1 and investor presentation EX‑99.2 only) .

Estimates Context

• Comparison to consensus: S&P Global (Capital IQ) Wall Street consensus estimates for Q1 2024 could not be retrieved at this time; as a result, estimate comparisons are not included. If estimates become available, we will update beat/miss analysis accordingly.

Key Takeaways for Investors

• Near‑term revenue optics: One‑time recognition of ~$15.9M Moderna deferred revenue in Q2 2024 will lift reported collaboration revenue in the next quarter; management expects collaboration revenue to decrease thereafter as the arrangement is terminated and the final $5.0M is forfeited .
• Execution catalysts: Hemophilia A DC nomination (mid‑2024) and 12‑month NHP durability data (2H 2024) are the principal clinical‑pathway catalysts in 2024, with potential read‑through to broader large‑gene‑integration programs .
• Platform differentiation: ASGCT presentations (5x base editing targetability expansion; >900 bp RIGS integration) underscore competitive positioning in precision editing and complex genome corrections .
• Balance sheet strength: $327.4M cash and securities with runway into 2027 reduces near‑term financing risk while programs advance toward INDs .
• Revenue concentration: Ionis contributed the majority of Q1 2024 collaboration revenue ($8.07M), highlighting dependence on partner execution and program progression .
• Expense discipline vs growth: R&D and G&A rose materially YoY as the company scales toward development candidate nominations; monitor burn trajectory relative to stated runway .

Appendix: Additional Financial/Disclosure Details

• Cash flow (Q1 2024): Net cash used in operating activities $(29.85)M; investing $(94.73)M; financing $86.54M (IPO proceeds) .
• Deferred revenue balances (Mar 31, 2024): current $48.29M; non‑current $20.31M .
• Collaboration composition (Q1 2024): Ionis $8.07M; Moderna $2.80M; Affini‑T $0.30M .
• Liquidity commentary: “cash runway … into 2027” (management) .

Sources: Q1 2024 Form 8‑K with EX‑99.1 press release and EX‑99.2 presentation , Q1 2024 Form 10‑Q , FY 2023 results press release (8‑K EX‑99.1) .