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OmniAb, Inc. (OABI)·Q3 2024 Earnings Summary

Executive Summary

  • Q3 2024 revenue was $4.2M, down year-over-year and sequentially (Q3 2023: $5.5M; Q2 2024: $7.6M), driven by timing of milestones and lower ion channel service revenue; management reiterated that milestone revenue remains weighted to 2H with most shifting into Q4 .
  • Net loss was $16.4M ($0.16 per share), roughly flat vs. prior year ($15.7M, $0.16) and wider vs. Q2 ($13.6M, $0.13), as revenue softness outweighed lower R&D and G&A expenses .
  • Liquidity improved via ATM issuance: $8.5M raised in Q3 and $2.9M post-quarter, with year-end cash guided to $50–$60M; management expects 2025 cash use lower than 2024 (excluding ATM proceeds) .
  • Operational momentum: active partners rose to 86, active programs to 352, and clinical-stage/approved programs to 33; management highlighted growing interest in multispecifics, single-domain antibodies (OmnidAb), and the OmniHub AI/bioinformatics platform launch in December .

What Went Well and What Went Wrong

What Went Well

  • Partner and program growth: 86 active partners (+3 QoQ) and 352 active programs; 33 programs in clinical development/approved, with multiple new clinical entries expected by year-end, supporting future milestone potential >$550M across post-discovery assets .
  • Technology/platform progress: OmniHub announced for December launch to integrate ML/AI with bioinformatics; management sees it enhancing discovery workflows and partner interactions (part of standard offering) .
  • Partner pipeline updates: notable advances at Immunovant (IMVT-1402 INDs cleared and registrational starts targeted), Genmab (acasunlimab Phase 3 expected start), Teva (TEV-53408 Phase 1 data), and CStone (MHRA approval of sugemalimab; 4-year survival data) .

Quotes:

  • “We are pleased to report another successful quarter…a highly scalable model with cutting-edge technologies…” – CEO Matt Foehr .
  • “We ended Q3 with 86 active partners…looking to finish the year strong in our business development…” – CEO Matt Foehr .
  • “We continue to anticipate total operating expenses in 2024 to be slightly less than total operating expenses in 2023.” – CFO Kurt Gustafson .

What Went Wrong

  • Revenue softness: Q3 revenue fell to $4.2M from $7.6M in Q2 and $5.5M in Q3 2023, primarily due to milestone timing and lower ion channel service revenue; milestones expected in Q4 but cash collection timing may slip into Q1 2025 .
  • Net loss widened sequentially: Q3 net loss ($16.4M) larger than Q2 ($13.6M) as revenue declined; EPS held at ($0.16) YoY despite lower OpEx, reflecting operating leverage still ahead of revenue scale .
  • Macro headwinds: management cited biopharma funding pressures and big pharma pipeline reprioritization creating volatility; ATM equity issuance was used as prudential “cushion” .

Financial Results

Revenue, EPS, and Net Loss vs Prior Periods and Prior Year

MetricQ3 2023Q1 2024Q2 2024Q3 2024
Revenue ($USD Millions)$5.477 $3.801 $7.614 $4.172
Net Loss ($USD Millions)$(15.738) $(18.961) $(13.631) $(16.373)
EPS (GAAP, basic & diluted, $USD)$(0.16) $(0.19) $(0.13) $(0.16)
Net Income Margin % (calc.)−287.3% −499.2% −179.1% −392.4%

Notes: Net Income Margin % calculated as Net Loss / Revenue using values cited in each cell .

Operating Expenses Detail

Metric ($USD Millions)Q3 2023Q1 2024Q2 2024Q3 2024
R&D Expense$13.867 $14.551 $13.935 $13.318
G&A Expense$8.511 $8.337 $7.965 $7.079
Amortization of Intangibles$3.380 $3.412 $4.543 $3.393
Loss from Operations$(20.315) $(22.553) $(16.305) $(19.764)

Revenue Mix (Segment Breakdown)

Revenue Component ($USD Millions)Q3 2023Q2 2024Q3 2024
License & Milestone$2.010 $3.125 $1.375
Service$3.016 $4.171 $2.479
Royalty$0.451 $0.318 $0.318
Total Revenue$5.477 $7.614 $4.172

Balance Sheet Highlights

MetricQ1 2024Q2 2024Q3 2024
Cash, Cash Equivalents & Short-term Investments ($USD Millions)$69.0 $57.2 $59.4
ATM Proceeds in Period ($USD Millions)——$8.5
Post-quarter ATM Proceeds ($USD Millions)——$2.9

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Operating ExpensesFY 2024“Slightly less than 2023” (Aug 8) “Slightly less than 2023” (Nov 12) Maintained
Cash UseFY 2024“Relatively similar to 2023 excluding $35M TECVAYLI milestone” (Aug 8) Range outcome implied by year-end cash and milestone timing; no explicit change (Nov 12) Maintained/clarified timing
Year-end Cash BalanceFY 2024Not specified (Aug 8) $50–$60M including ATM proceeds (Nov 12) New
Cash UseFY 2025“Substantially lower than 2024” (Aug 8) “Lower than 2024 excluding ATM proceeds” (Nov 12) Maintained/nuanced
Effective Tax RateOngoingLow to mid-teens (May 9) Not updated (Nov 12) Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2024)Current Period (Q3 2024)Trend
AI/Technology initiatives (OmniDeep, xPloration)OmniDeep launched; xPloration used across labs; focus on AI/ML-enhanced workflows OmniHub announced for December launch to integrate ML/AI and bioinformatics; part of standard offering Expanding platform; deeper integration
Macro/funding environmentIndustry reprioritizations; funding improving but cautious; pipeline shaping at big pharma; some asset returns (GSK, Roche) Management cites pressure and volatility; cautious outlook; ATM used as cushion Volatile but manageable
Product/program performanceMultiple partner catalysts (Immunovant, Genmab, CStone, Teva, Tallac) Continued advances incl. IMVT-1402 INDs, acasunlimab Phase 3 start expectations, sugemalimab MHRA approval Positive momentum
Modalities/multispecificsBroad format support; ATTENUKINE multispecific clinical start (Teva) Multispecific interest rising; OmniAb platform enabling growth Increasing emphasis
Regional trends/BD reachPartner base: predominately U.S., with Europe/Asia; expanding BD presence globally Added partners incl. academic institutions; continued BD strength Diversifying
Regulatory/legalApprovals and INDs (CStone EU; Tallac IND) MHRA sugemalimab approval; continued INDs Accretive catalysts

Management Commentary

  • Strategic positioning: “Our diversified base of partners and programs continues to grow…we remain committed to expanding our partnership base while helping partners realize their research and discovery goals.” – CEO Matt Foehr .
  • Operating cadence: “We had previously guided that our revenue would be weighted towards the second half…most of those milestones will hit in the fourth quarter.” – CFO Kurt Gustafson .
  • Capital strategy: “We believe it was prudent to add some cushion to our balance sheet through the issuance of stock…we enter 2025 in a better financial position.” – CFO Kurt Gustafson .
  • Platform expansion: “We’re launching OmniHub…integrating machine learning and AI tools with our deep bioinformatics capabilities.” – CEO Matt Foehr .

Q&A Highlights

  • Program growth drivers: Interest in OmnidAb (single-domain antibodies) and platform validation underpin strong program additions despite industry reprioritizations .
  • OmniHub monetization: Offered as part of standard collaborative tools, not a separate software revenue line item; designed to streamline partner discovery .
  • Macro caution and capital: Management acknowledges funding pressures and volatility; ATM issuance was a proactive cushion rather than filling a specific shortfall .
  • Modality mix: Rising multispecifics among new starts; platform increasingly used across oncology and CNS targets .
  • Economics/royalties: Blended royalty rate unchanged from prior disclosures; Immunovant/HanAll structure yields low-to-mid single-digit economics to OmniAb .

Estimates Context

  • S&P Global consensus estimates for EPS and revenue for OmniAb were unavailable due to a missing CIQ mapping for ticker OABI at the time of retrieval. As a result, we cannot quantify beat/miss versus Wall Street consensus for Q3 2024; management indicated milestone timing shifted primarily into Q4, which likely impacted Q3 revenue and EPS relative to typical expectations . Values would be retrieved from S&P Global if available.

Key Takeaways for Investors

  • Revenue timing shift: The primary narrative is revenue deferral into Q4 due to milestone timing; watch for Q4 milestone realizations and potential cash collection spillover into Q1 2025 because of 30–60 day payment terms .
  • Operating discipline: OpEx trending slightly below 2023 and R&D/G&A down YoY in Q3 provide cost control, but scale remains below breakeven; operating leverage will hinge on milestone conversion and growing royalty base .
  • Strengthening liquidity: ATM proceeds ($11.4M total including post-quarter) and year-end cash guidance ($50–$60M) reduce near-term risk and support BD and platform investments .
  • Pipeline catalysts: Near-term partner readouts and starts (e.g., acasunlimab Phase 3, IMVT-1402 registrational programs) underpin milestone potential (> $550M across post-discovery assets); these are key to 2025 cash use reduction .
  • Modality and AI edge: Growing interest in multispecifics and the single-domain OmnidAb platform, plus OmniHub integration of AI/ML, position OmniAb as a differentiated discovery technology provider—supporting partner additions and program starts .
  • Macro sensitivity: Discovery tools exposure remains levered to biopharma funding cycles and big pharma portfolio shaping; management’s cautious tone suggests balanced expectations despite strong KPIs .
  • Trading lens: Q4 milestone execution and OmniHub launch are potential upside catalysts; persistent revenue volatility and reliance on partners’ timelines are the primary risks to near-term estimates and sentiment .

KPIs

KPIQ1 2024Q2 2024Q3 2024
Active Partners80 83 86
Active Programs327 333 352
Clinical-stage & Approved Programs31 32 33
Preclinical & later-stage programs—50 53

Additional Notes

  • ATM activity: 2.0M shares sold in Q3 ($8.5M proceeds) and 0.7M post-quarter ($2.9M), both included in year-end cash guidance .
  • Royalty base: Current royalties stem from products largely outside U.S.; sugemalimab MHRA approval and ongoing partnering efforts may expand regional royalty footprint over time .