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MT

Molecular Templates, Inc. (MTEM)·Q1 2024 Earnings Summary

Executive Summary

  • Q1 2024 delivered modest profit on near-breakeven operations: revenue of $11.1M and diluted EPS of $0.08; operating loss was $0.05M with net income supported by a $0.54M non-cash gain from the CVR valuation and net interest income .
  • YoY revenue declined materially versus Q1 2023 (to $11.1M from $36.6M) as collaboration-driven revenue moderated; the company also disclosed in late March that BMS will terminate the collaboration effective June 13, 2024, reducing future collaboration visibility .
  • Cash and equivalents were $6.8M at March 31, 2024; April’s $9.5M financing extended runway into Q4 2024, but liquidity remains the central risk/catalyst pending clinical updates and additional funding options .
  • Clinical narrative progressed: monotherapy activity for MT-6402 in R/R HNSCC (2 confirmed PRs, durable) and ongoing MT-8421 dose escalation; expansion cohort data for MT-6402 expected by year-end, a key stock catalyst .

What Went Well and What Went Wrong

What Went Well

  • Clinical momentum: MT-6402 monotherapy showed durable activity in heavily pretreated, checkpoint-experienced HNSCC (2 confirmed PRs; 4 SD, two with tumor reduction). Management: “Monotherapy activity with MT-6402 … demonstrates the potential of our technology.”
  • Prudent OpEx control and near-breakeven operations: R&D ($7.4M) and G&A ($3.7M) declined YoY; operating loss just $0.05M; net income aided by CVR valuation change and net interest .
  • Runway extended: Second closing of July 2023 financing added ~$9.5M gross proceeds in April, supporting operations into Q4 2024 .

What Went Wrong

  • Revenue reset: Q1 2024 revenue fell sharply YoY ($11.1M vs. $36.6M) amid collaboration normalization; the BMS collaboration termination notice in March points to lower forward collaboration revenue visibility .
  • Liquidity still tight: Cash was $6.8M at quarter-end; even with April financing, runway only into Q4 2024, keeping financing overhang in focus .
  • Partnership overhang: BMS elected to terminate the collaboration effective June 13, 2024, removing a validation/probable revenue stream and adding strategic uncertainty .

Financial Results

Income statement comparison (oldest → newest)

MetricQ1 2023Q3 2023Q4 2023Q1 2024
Revenue ($USD Thousands)$36,629 $6,796 $7,016 $11,086
Net Income (Loss) ($USD Thousands)$10,845 $(4,153) $(3,948) $572
Diluted EPS ($)$2.89 $(0.82) $(0.73) $0.08
Income (Loss) from Operations ($USD Thousands)—$(5,137) $(5,371) $(50)
R&D Expense ($USD Thousands)$19,042 $7,624 $8,796 $7,405
G&A Expense ($USD Thousands)$5,802 $4,309 $3,591 $3,731

Balance sheet / liquidity (point-in-time)

MetricSep 30, 2023Dec 31, 2023Mar 31, 2024
Cash & Equivalents ($USD Thousands)$15,811 $11,523 $6,779
Deferred Revenue, Current ($USD Thousands)$13,210 $9,031 $—
Total Assets ($USD Thousands)$44,061 $35,383 $27,119
Total Stockholders’ Equity ($USD Thousands)$6,801 $4,212 $5,870

Notes:

  • Q1 2024 net income was supported by non-operating items: change in valuation of contingent value right ($544K) and net interest income .
  • Margins and segment data not disclosed in press materials; company does not present non-GAAP metrics in these releases .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash Runway2024“Runway into Q2 2024; after second closing, extend to end of Q4 2024” (Mar 29, 2024) “Cash and April second closing expected to support operations into Q4 2024” (May 15, 2024) Maintained
BMS Collaboration Status2024Active collaboration (Q3 2023 update referenced progress) BMS notified termination effective June 13, 2024 Lowered (visibility)
MT-6402 Expansion Data Timing2024High-level 2024 updates anticipated R/R HNSCC monotherapy data expected by year-end Clarified timing

Earnings Call Themes & Trends

No earnings call transcript was available in our sources; we searched SEC-linked transcripts and industry repositories but found none.

TopicPrevious Mentions (Q3 2023, Q4 2023)Current Period (Q1 2024)Trend
MT-6402 efficacy signals in HNSCCEarly monotherapy signals; PRs and tumor reductions in dose escalation; expansion underway 2 confirmed PRs (durable at ~10 and ~20 months), 4 SD among 7 evaluable; expansion cohort underway; high PD-L1 cohort enrolling Improving clinical narrative
Safety/TolerabilityGenerally well-tolerated; no Grade 4/5 drug-related AEs; no CLS with next-gen ETBs Continued tolerability highlighted; no new safety flags noted in Q1 release Stable positive
Financing/RunwayCash $15.8M (Sep 30); runway to end Q2 2024 pre-financing Cash $6.8M (Mar 31); April $9.5M financing extends runway into Q4 2024 Tight but extended
PartnershipsBMS collaboration progressing (Q3) BMS termination effective June 13, 2024 disclosed Mar 29 Negative shift
MT-8421 (CTLA-4) progressFirst patient dosed; unique PD effects; ongoing enrollment Dose escalation ongoing; continued Treg depletion in periphery and TME Steady progress

Management Commentary

  • “MT-6402 and MT-8421 represent novel approaches to validated immuno-oncology targets. Monotherapy activity with MT-6402 in patients that have progressed on available therapy, including checkpoint therapy, demonstrates the potential of our technology.” — Eric Poma, PhD, CEO/CSO .
  • “We are very excited to see objective responses in heavily pre-treated, checkpoint-experienced head and neck cancer patients… We believe these data demonstrate a new and potentially best-in-class approach to targeting the PD-1-PD-L1 axis.” — Eric Poma, PhD (prior update context) .

Q&A Highlights

  • No Q1 2024 earnings call transcript was available through SEC-linked document libraries or common transcript providers; no Q&A content to summarize based on our document set (we searched for “earnings-call-transcript” for Q1 2024 and found none).

Estimates Context

  • We attempted to retrieve S&P Global/Capital IQ consensus for Q1 2024 (revenue and EPS), but there was no available mapping/coverage for MTEM; therefore, estimate comparisons are not included. If/when S&P Global coverage is established, we will update to show actual vs. consensus and compute beats/misses.

Key Takeaways for Investors

  • Liquidity remains the central driver: cash of $6.8M at 3/31 and $9.5M gross proceeds in April extend runway into Q4 2024; additional capital and/or BD will likely be necessary within months absent major catalysts .
  • Collaboration risk materialized: BMS termination reduces partnership-derived revenue visibility, making clinical data and financing more critical to equity value .
  • Clinical narrative improving: durable MT-6402 monotherapy responses in difficult HNSCC settings underpin platform potential; expansion cohort data by year-end is a key binary/trading event .
  • Operating discipline: materially lower R&D and G&A YoY helped keep operations near breakeven; net income aided by non-cash CVR valuation change and interest .
  • Watch deferred revenue dynamics post-BMS: current deferred revenue dropped to $0 by March 31 vs. $9.0M at year-end, highlighting the shift in collaboration accounting/visibility .
  • Short-term trading: sensitivity to interim clinical updates (MT-6402 expansion, MT-8421 PD data) and financing developments; any BD news could re-rate the stock .
  • Medium-term thesis: validation of ETB platform via durable responses and tolerability; execution risk around enrollment, data robustness, and financing remains elevated .

Sources Read in Full

  • Q1 2024 8-K (Item 2.02) press release and financial statements .
  • Q4 2023 8-K press release, including BMS termination disclosure, financials, and balance sheet .
  • Q3 2023 8-K press release for trend analysis .
  • Additional relevant press releases: AACR 2024 interim data announcement (context for MT-6402 efficacy signals) .

Search notes:

  • No Q1 2024 earnings call transcript was found via our document list or external searches during the Q1 2024 window. The Q1 2024 press release is the primary source for results and commentary .