Executive Summary

Q4 revenue accelerated to $10.80M, up 159% QoQ and 124% YoY, driven by higher license and milestone revenue, partially offset by lower service and a negative royalty true-up; net loss improved to $(13.07)M with EPS $(0.12) vs $(0.14) prior year . The QoQ gain reflects milestone timing; royalties were reduced due to China PD-1/PD-L1 sales updates .
Management issued first-ever revenue guidance: FY25 revenue $20–$25M; OpEx $90–$95M; cash use lower than 2024’s $38.9M baseline (ex-ATM); effective tax rate ~0% .
Business momentum: active partners rose to 91 (+18% YoY) and active programs to 363; 32 programs are in clinical or commercial stages; 10 new licenses signed in 2024 (two in Q4 with Incyte and Photinia); OmniHub bioinformatics portal launched in December .
Key stock-relevant catalysts: first-time revenue guidance and transparency on noncash revenue headwinds; meaningful pipeline catalysts across IMVT-1402, batoclimab, and acasunlimab; strategic shift away from small-molecule ion channels (Q4 $2.7M impairment) supporting lower OpEx trajectory in 2025 .

What Went Well and What Went Wrong

What Went Well
- Robust revenue inflection: Q4 revenue $10.80M vs $4.17M in Q3 and $4.82M in Q4’23, mainly on higher license/milestones; CFO highlighted milestone timing and weighting to 2H .
- Platform and pipeline momentum: 91 active partners (+18% YoY), 363 active programs; five OmniAb-derived antibodies entered clinic in 2024; OmniHub launched to enhance data/AI-enabled workflows .
- Clearer FY25 outlook: first revenue guidance ($20–$25M) and OpEx plan ($90–$95M) with cash use improving vs 2024 baseline; about 40% of OpEx expected to be noncash, improving cash runway optics .
- Quote: “We achieved double digit percentage growth in both the number of active partners and the number of active programs…We believe our commitment to innovation is a significant competitive advantage” — CEO Matt Foehr .
What Went Wrong
- Royalty headwind: negative Q4 royalty adjustment from China PD‑1/PD‑L1 products (sugemalimab/zimberelimab) weighed on revenue mix (royalty revenue negative $0.38M in Q4) .
- Noncash revenue to step down: deferred service revenue amortization—a sizable noncash component in 2024—declines in 2025, creating a reported revenue headwind despite higher expected cash receipts .
- Ion channel de-emphasis and impairment: $2.7M impairment tied to small-molecule ion channel intangibles in Q4; management shifted focus to antibody-based ion channels and reduced related headcount in early 2025 .

Financial Results

Summary P&L and margins

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($M)	$7.61	$4.17	$10.80
Loss from Operations (proxy for EBIT) ($M)	$(16.31)	$(19.76)	$(15.88)
Net Loss ($M)	$(13.63)	$(16.37)	$(13.07)
Diluted EPS ($)	$(0.13)	$(0.16)	$(0.12)
EBIT Margin %	−214.3% (calc)	−473.7% (calc)	−147.0% (calc)
Net Income Margin %	−179.1% (calc)	−392.3% (calc)	−121.0% (calc)

Note: Margin percentages calculated by Fintool from cited revenue and income figures.

Revenue composition

Revenue Breakdown ($M)	Q2 2024	Q3 2024	Q4 2024
License & Milestone	$3.13	$1.38	$8.65
Service	$4.17	$2.48	$2.53
Royalty	$0.32	$0.32	$(0.38)

Operating expense detail (Q4’24)

OpEx Detail ($M)	Q4 2024
R&D	$13.31
G&A	$7.36
Amortization of intangibles	$6.06
Impairment (qualitative)	~$2.7 impairment charge discussed by CFO

Growth vs prior periods and prior year

Growth Metric	Q4 2024 vs Q3 2024	Q4 2024 vs Q4 2023
Revenue Growth	+158.9% (calc)	+123.9% (calc)
EPS Δ ($)	+$0.04 (−0.12 vs −0.16) (calc)	+$0.02 (−0.12 vs −0.14) (calc)

Balance sheet/cash
- Cash, cash equivalents and short-term investments: $59.4M as of Dec 31, 2024 .
- CFO reiterated $59.4M and noted ATM proceeds timing; deferred revenue balance down to ~$2.5M at year-end as amortization winds down .
KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
Active Partners	83	86	91
Active Programs	333	352	363
Clinical/Commercial Programs	32	33	32

Why the quarter looked this way:

Upside from license/milestones as partner programs advanced; milestone timing largely drove H2 weighting and Q4 step-up .
Royalty negative adjustment from updated 2024 China sales data for sugemalimab/zimberelimab lowered Q4 royalty revenue .
R&D and G&A down YoY on lower stock-based comp and external spend; impairment tied to ion-channel strategy shift .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue (GAAP)	FY 2025	n/a	$20–$25M	Introduced (first revenue guide)
Operating Expense	FY 2025	n/a	$90–$95M	Introduced
Cash Use	FY 2025	Lower than 2024 (ex-ATM)	Lower than 2024 (ex-ATM); 2024 cash use baseline $38.9M	Maintained; baseline quantified
Effective Tax Rate	FY 2025	n/a	~0%	Introduced
OpEx Noncash Mix	FY 2025	n/a	~40% historically; similar in 2025 (qualitative)	Introduced

Context: Management emphasized 2025 reported revenue declines are driven by fading noncash deferred-service amortization, while cash receipts from partners are expected to increase YoY .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024, Q3 2024)	Current Period (Q4 2024)	Trend
Technology/AI & bioinformatics	OmniDeep, xPloration progress; OmniHub pre-launch teased	OmniHub launched; strong partner feedback; continued innovation pipeline	Increasing adoption/visibility
Partner pipeline catalysts	IMVT-1402 INDs; batoclimab data path; acasunlimab advancing to Ph3	IMVT-1402 enrolling pivotal Ph2b; batoclimab multiple readouts by Mar 31, 2025; acasunlimab Ph3 enrolling; Teva assets progressing	Building toward 2025–26
Royalty dynamics (China PD‑1/PD‑L1)	EU approval for sugemalimab; partnering progress for EU/CEE; cautious on contribution timing	Q4 negative royalty true-up from China; CFO reiterated 3% global royalty on sugemalimab/zimberelimab	Near-term headwind; medium-term optionality
Ion channel strategy	Impairment/CVR reductions; repartnering options; strategic evolution	$2.7M Q4 impairment; shift focus from small molecules to antibodies; related headcount reduction	De-emphasizing small molecules
Macro/funding	Noted industry reprioritizations; ATM to bolster cushion	NIH/funding concerns not impacting academic pipeline yet; monitoring	Monitored, contained

Management Commentary

Strategic positioning: “Potential key royalty assets are beginning to come into focus…we’re excited about the opportunities we’re seeing and we’re confident in our plans” — CEO .
Revenue mix/royalty true-up: “We received an update on…sales of sugemalimab and zimberelimab in China during 2024 and accounted for that downward adjustment in the fourth quarter” — CFO .
Noncash revenue headwind: “Close to 1/3 of the revenue earned last year did not result in actual cash…One of the primary factors driving the revenue decline in 2025 is that this noncash portion of service revenue is decreasing” — CFO .
Operating focus: “$2.7M impairment charge related to certain small molecule ion channel intangible assets…result of a shift…from small molecules to antibodies” — CFO .
Pipeline opportunity: Genmab “highlighted a potential $1B market opportunity for acasunlimab in NSCLC” — CEO .

Q&A Highlights

Guidance mechanics: FY25 $20–$25M is GAAP; decline vs 2024 driven by lower noncash deferred-service revenue; cash receipts expected to rise YoY .
Royalty rate disclosure: Royalties for sugemalimab and zimberelimab are 3% globally; limited visibility into regional sales built into guidance .
Attrition context: 2024 attrition driven by big pharma pipeline realignment and normal development attrition; not technical issues .
OmniHub adoption: Partners are using OmniHub; launched in December; positive reception as digital data/AI portal .
Resource alignment: Reduction in ion-channel headcount in early 2025 tied to strategic shift; OpEx to decline in 2025 vs 2024 .

Estimates Context

S&P Global consensus (EPS and revenue) for OABI was unavailable via our data connection at this time; therefore, we cannot assess beat/miss vs Wall Street for Q4 2024. If you want, we can source third-party estimates or revisit S&P once mapping is restored. Values would be retrieved from S&P Global.

Key Takeaways for Investors

Q4 upside was milestone-driven; the mix shift (less deferred-service amortization) will pressure reported 2025 revenue but should not reflect weaker cash collections; management expects higher partner cash receipts YoY in 2025 .
First-ever revenue guidance increases visibility; OpEx discipline and mix (~40% noncash) support improving cash use vs 2024 baseline .
Royalty streams remain a medium-term lever; near-term China PD‑1/PD‑L1 dynamics are a headwind, but EU/MEA/LatAm commercialization for sugemalimab could add optionality (3% global royalty rate) .
Strategic focus shift away from small-molecule ion channels (impairment, headcount actions) should lower OpEx trajectory and sharpen resources on antibody opportunities .
Pipeline catalysts across IMVT‑1402, batoclimab, and acasunlimab in 2025 could drive milestone revenue and rerate royalty potential .
Business development momentum (91 partners, 363 programs; 10 new licenses in 2024) and OmniHub launch strengthen the platform flywheel into 2025 .
Trading setup: Watch for 2025 milestone cadence, royalty updates (including ex-China commercialization progress), and any new technology launches around key conferences as catalysts .

Additional Sources Reviewed

Q4 2024 8-K 2.02 press release and financials .
Q4 2024 earnings call transcript (prepared remarks and Q&A) –.
Q3 2024 8-K (financials, business updates) and call – –.
Q2 2024 8-K (financials, business updates) and call – –.

No additional OABI press releases in Q4 2024 beyond the earnings release were found in the document set .

OmniAb, Inc. (OABI)·Q4 2024 Earnings Summary