Executive Summary

Q2 2024 revenue fell to $0.57M from $11.09M in Q1 2024 and $6.87M in Q2 2023, driven by a sharp decline in research and development collaboration revenue; net loss was $8.10M and diluted EPS was $-1.23 .
Operating discipline continued: R&D expense declined to $5.40M (from $7.41M in Q1 and $13.41M YoY), and G&A fell to $3.47M (from $3.73M in Q1 and $5.20M YoY) .
Cash and cash equivalents were $9.66M at quarter-end (June 30) with runway into Q4 2024; equity rose to $7.11M following the second tranche of the July 2023 private placement closed April 2 (gross proceeds ~$9.5M) .
Clinical updates: durable monotherapy activity observed with MT-6402 in checkpoint-experienced patients; MT-8421 showed Treg depletion with early monotherapy activity; MT-0169 demonstrated complete elimination of CD38+ immune cells at well-tolerated doses, with exploration into severe autoimmune diseases underway .
Key stock narrative catalysts: durability and breadth of monotherapy responses in PD‑L1 programs, evolving CTLA‑4 pharmacodynamics, and capital runway clarity into Q4 2024 .

What Went Well and What Went Wrong

What Went Well

Durable monotherapy responses persisted in checkpoint‑experienced HNSCC for MT‑6402, with two partial responders ongoing at cycle 23 and 14; a high PD‑L1 NSCLC patient showed a PR at cycle 11 after progressing on chemo, targeted therapy, and checkpoint therapy .
MT‑8421 showed unique pharmacodynamic profile with significant Treg depletion and ctDNA reduction; one melanoma patient remained on study at cycle 11 with a 27% tumor volume decrease and no drug‑related AEs > grade 2 .
Cost containment continued: R&D and G&A expenses declined both sequentially and YoY, improving operational efficiency amid reduced collaboration activity .
Management quote (strategic emphasis): “ETBs can eliminate immune cells that monoclonal antibodies cannot... may drive long‑lasting responses in patients who have exhausted other treatment options.” – Eric Poma, PhD, CEO/CSO .

What Went Wrong

Revenue collapsed sequentially to $0.57M from $11.09M in Q1 2024, reflecting minimal research and development revenue recognized in Q2 ($0.19M vs. $10.92M in Q1) and modest grant revenue ($0.38M) .
The BMS collaboration was terminated effective June 13, 2024 following BMS portfolio prioritization, coinciding with deferred revenue falling to $0 from $9.03M at year‑end 2023, pressuring top line visibility .
Net loss widened sequentially to $8.10M from Q1 net income of $0.57M; diluted EPS moved to $-1.23 from $0.08 in Q1, reflecting the revenue reset in Q2 .

Financial Results

Income Statement Summary (oldest → newest)

Metric	Q4 2023	Q1 2024	Q2 2024
Total Revenue ($USD Millions)	$7.02	$11.09	$0.57
Research & Development Revenue ($USD Millions)	$6.64	$10.92	$0.19
Grant Revenue ($USD Millions)	$0.38	$0.16	$0.38
R&D Expense ($USD Millions)	$8.80	$7.41	$5.40
G&A Expense ($USD Millions)	$3.59	$3.73	$3.47
Net Income (Loss) ($USD Millions)	$(3.95)	$0.57	$(8.10)
Diluted EPS ($USD)	$(0.73)	$0.08	$(1.23)
Weighted Avg Diluted Shares	5,374,268	7,015,864	6,557,295

YoY Comparison: Q2 2024 vs Q2 2023

Metric	Q2 2023	Q2 2024	Change
Total Revenue ($USD Millions)	$6.87	$0.57	$(6.30)
R&D Expense ($USD Millions)	$13.41	$5.40	$(8.01)
G&A Expense ($USD Millions)	$5.20	$3.47	$(1.73)
Net Loss ($USD Millions)	$(10.87)	$(8.10)	$2.77
Diluted EPS ($USD)	$(2.89)	$(1.23)	$1.66

Revenue Composition (oldest → newest)

Revenue Line	Q4 2023 ($M)	Q1 2024 ($M)	Q2 2024 ($M)
Research & Development	$6.64	$10.92	$0.19
Grant	$0.38	$0.16	$0.38
Total	$7.02	$11.09	$0.57

Balance Sheet KPIs (period-end; oldest → newest)

Metric	Q4 2023	Q1 2024	Q2 2024
Cash & Cash Equivalents ($USD Millions)	$11.52	$6.78	$9.66
Total Current Assets ($USD Millions)	$16.77	$10.69	$12.02
Total Liabilities ($USD Millions)	$31.17	$21.25	$19.59
Stockholders’ Equity ($USD Millions)	$4.21	$5.87	$7.11
Deferred Revenue (Current) ($USD Millions)	$9.03	$0.00	$0.00

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash Runway	FY 2024	“Support ongoing operations into Q4 2024” (as of Q1 update)	“Support ongoing operations into Q4 2024” (as of Q2 update)	Maintained
MT‑6402 Updates	2H 2024	Expansion cohorts underway; data by year‑end (Q1)	Additional updates from low PD‑L1 HNSCC and high PD‑L1 solid tumor expansions in 3Q24	Advanced timing to 3Q24
MT‑8421 Updates	2H 2024	Dose escalation ongoing	Additional dose escalation updates in 3Q24	Timing specified
MT‑0169 Clinical Initiation	2H 2024	Continued development in hematology; evaluating immune‑mediated diseases	Phase 1 initiation in CD38+ hematologic malignancies; continued autoimmune evaluation	Clarified initiation plan

Earnings Call Themes & Trends

Note: A Q2 2024 earnings call transcript was not available in our document set; themes reflect quarter‑specific press releases and 8‑Ks.

Topic	Previous Mentions (Q4 2023; Q1 2024)	Current Period (Q2 2024)	Trend
Immuno‑oncology monotherapy activity (MT‑6402)	Durable single‑agent responses in low PD‑L1 HNSCC; ongoing expansion	Continued monotherapy activity; PRs in HNSCC cycles 23/14; PR in high PD‑L1 NSCLC cycle 11	Improving clinical durability and breadth
CTLA‑4 Treg depletion (MT‑8421)	Early dose escalation; Treg clearance and IL‑2 increases; stable disease	Peripheral and TME Treg depletion; melanoma patient with 27% tumor decrease; no AEs > grade 2	Strengthening PD signal with emerging activity
CD38+ cell elimination (MT‑0169)	MM Phase 1 showed potent depletion; exploring AML; positioning for immune‑mediated disease	Complete elimination of CD38+ immune cells at tolerated doses; exploration in severe autoimmune diseases; hematologic Phase 1 initiation planned	Pivot toward broader I&I and hematology
Collaboration & revenue visibility	BMS collaboration termination announced, effective June 13, 2024	Deferred revenue reduced to $0; revenue minimal in Q2	Reduced collaboration revenue visibility
Financing & runway	Second closing of July 2023 financing; runway through Q4 2024	Second tranche closed April 2; runway maintained into Q4 2024	Runway maintained

Management Commentary

“ETBs can eliminate immune cells that monoclonal antibodies cannot... [this] may drive long‑lasting responses in patients who have exhausted other treatment options.” – Eric Poma, PhD, CEO/CSO .
“Similarly, we believe MT‑0169 can eliminate CD38+ immune cells that antibodies cannot, allowing for potentially greater potency in both hematologic malignancies and autoimmune diseases.” – Eric Poma, PhD .
“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 (Q1 2024) .

Q&A Highlights

A Q2 2024 earnings call transcript was not available; no Q&A themes to report from our document set [ListDocuments: none found for earnings‑call‑transcript Q2 2024].

Estimates Context

S&P Global consensus estimates for Q2 2024 were unavailable for MTEM in our system due to missing CIQ mapping; as a result, we cannot provide a vs‑consensus comparison for revenue or EPS.
Given the lack of consensus visibility, investors should focus on sequential and YoY trajectory and program milestones as near‑term stock narrative drivers [GetEstimates error].

Key Takeaways for Investors

Revenue reset: Q2 total revenue of $0.57M with minimal R&D collaboration revenue highlights the top‑line transition post‑BMS termination; monitor any new BD activity or grant inflows to support revenue visibility .
Expense control is tangible: R&D ($5.40M) and G&A ($3.47M) declined sequentially and YoY, helping offset reduced revenue; sustained discipline will be critical pending additional non‑dilutive funding .
Clinical durability supports platform value: Extended PR durations in HNSCC and new NSCLC PR in high PD‑L1 populations reinforce differentiated ETB mechanisms that can work in checkpoint‑experienced settings .
CTLA‑4 program is de‑risking: Documented peripheral and TME Treg depletion alongside early monotherapy activity (and clean safety) strengthens the thesis for MT‑8421’s role in dismantling immunosuppressive TME .
CD38 program pivot: Clinical and ex vivo data suggest potent CD38+ cell elimination without conditioning; hematology Phase 1 initiation and autoimmune exploration expand optionality beyond oncology .
Runway clarity: $9.66M cash and runway into Q4 2024 underscores the importance of timely clinical and financing milestones in 2H 2024, including program updates slated for 3Q24 .
Near‑term trading implications: Headlines around additional MT‑6402/MT‑8421 updates in 3Q24 and any BD/financing news are likely to move the stock; estimate comparisons are not available, so narrative catalysts dominate .

Appendix: Additional Data

Upcoming Milestones (as disclosed)

MT‑6402: Additional updates from low PD‑L1 HNSCC and high PD‑L1 solid tumor expansions in 3Q24 .
MT‑8421: Additional dose escalation updates in 3Q24 .
MT‑0169: Phase 1 initiation in CD38+ hematologic malignancies; continued autoimmune evaluation .

Conference Participation

H.C. Wainwright 26th Annual Global Investment Conference (Sept 9–11, 2024); on‑demand presentation available via corporate website .

Financing

Second tranche of July 2023 private placement closed April 2, 2024; gross proceeds approximately $9.5M, intended for clinical studies and general corporate purposes .

S&P Global disclaimer: Consensus estimates were unavailable for MTEM in our system; values would normally be retrieved from S&P Global.

Molecular Templates, Inc. (MTEM)·Q2 2024 Earnings Summary