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RAPT Therapeutics, Inc. (RAPT)·Q2 2024 Earnings Summary

Executive Summary

  • Q2 2024 reflected continued operating losses as RAPT remained a clinical‑stage company with no product revenue; net loss was $27.7M (vs. $25.3M YoY) and net loss per share was $0.71 (vs. $0.66 YoY) .
  • Management is analyzing unblinded data from the Phase 2 zelnecirnon (RPT193) trials in atopic dermatitis and asthma; analysis is expected to complete in Q3 2024, unchanged from prior guidance and the central upcoming catalyst .
  • Liquidity declined to $114.8M in cash and marketable securities at June 30, 2024 (from $141.6M at March 31 and $158.9M at Dec 31), and the Board approved a 40% workforce reduction with ~$0.9M estimated restructuring charges to conserve cash; execution is expected to substantially complete by end of Q3 2024 .
  • No Q2 2024 earnings call transcript was available in our document set; thus, detailed Q&A color is not accessible. Wall Street consensus estimates from S&P Global were unavailable at the time of this analysis, so beats/misses could not be assessed.

What Went Well and What Went Wrong

What Went Well

  • Operational clarity: Management reiterated that the analysis of unblinded zelnecirnon Phase 2 data is on track to complete this quarter (Q3 2024), sustaining a clear near‑term catalyst path despite the holds .
  • Cost discipline: The company enacted a 40% workforce reduction to conserve cash and expects the execution and most cash payments to be substantially completed by end of Q3 2024, signaling proactive liquidity management .
  • Balance sheet visibility: As of June 30, 2024, RAPT reported $114.8M in cash, cash equivalents and marketable securities, providing runway into the key data‑review period .

What Went Wrong

  • Wider loss YoY: Net loss increased to $27.7M from $25.3M in Q2 2023 as higher zelnecirnon‑related development costs and personnel/stock‑based comp offset declines in tivumecirnon and early‑stage program spend .
  • Lower other income YoY: Other income fell to $1.67M from $3.08M YoY, contributing to the wider net loss versus the prior year period .
  • Clinical hold overhang persists: The FDA holds from February (tied to a serious adverse event in the AD trial) continue to weigh on the program’s path forward; trials were closed and unblinded earlier in the year, and management remains focused on completing analysis and discussing next steps with FDA .

Financial Results

Income Statement Comparison (YoY and QoQ)

MetricQ2 2023Q1 2024Q2 2024
Research & Development ($USD Millions)$21.64 $24.78 $22.64
General & Administrative ($USD Millions)$6.72 $7.74 $6.69
Total Operating Expenses ($USD Millions)$28.36 $32.52 $29.33
Other Income, net ($USD Millions)$3.08 $2.00 $1.67
Net Loss ($USD Millions)$(25.28) $(30.52) $(27.66)
Net Loss per Share ($)$(0.66) $(0.79) $(0.71)
Weighted Avg. Shares (Basic & Diluted)38,328,741 38,625,365 38,866,760

Notes:

  • YoY: R&D rose modestly due to higher zelnecirnon‑related costs and increased personnel/consultants/facilities/stock‑based comp, partially offset by lower tivumecirnon and early‑stage program costs .
  • QoQ: Both R&D and G&A fell sequentially from Q1 2024 levels, lowering total opex .

Liquidity KPIs

MetricQ4 2023Q1 2024Q2 2024
Cash, Cash Equivalents & Marketable Securities ($USD Millions)$158.9 $141.6 $114.8
  • Workforce reduction: 47 employees (~40% of headcount); estimated restructuring charges ~$0.9M; execution and majority of related cash payments expected to be substantially completed by end of Q3 2024 .

Actual vs. Consensus (S&P Global)

MetricQ2 2024 ActualQ2 2024 Consensus (S&P Global)Surprise
RevenueN/A (clinical stage; no product revenue)UnavailableN/A
EPS (Basic & Diluted)$(0.71) UnavailableN/A
  • Consensus from S&P Global was unavailable at the time of analysis; therefore, beats/misses cannot be assessed.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Zelnecirnon Phase 2 data analysis timingQ3 2024“Anticipate analysis completed in the third quarter of this year” (stated May 9, 2024) “Anticipate analysis will be completed this quarter” (Aug 8, 2024; i.e., Q3 2024) Maintained
Workforce reduction executionQ3 2024N/A40% reduction; ~$0.9M restructuring charges; execution and majority of cash payments to be substantially completed by end of Q3 2024 New
Oncology (tivumecirnon) near‑term disclosuresH1 2024Update planned at AACR in April (stated Mar 7, 2024) No new Q2 update referenced in earnings materials Completed (no new guidance)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2023, Q1 2024)Current Period (Q2 2024)Trend
Zelnecirnon (RPT193) program statusQ4: working to lift holds on Phase 2 AD/asthma . Q1: closed and unblinded both trials; analysis expected in Q3 2024 .Analysis of unblinded data to complete in Q3 2024; next steps pending FDA dialogue .Stable path to data analysis; regulatory outcome pending.
FDA clinical hold overhangQ4: emphasized patient safety; working with FDA . Q1: trials closed/unblinded following a serious adverse event .No resolution yet; focused on analysis and process with FDA .Unresolved; key overhang persists.
Cash conservation / restructuringQ4: $158.9M cash/securities . Q1: $141.6M cash/securities .$114.8M cash/securities; 40% workforce reduction; ~$0.9M restructuring .Increasing focus on opex and runway.
Tivumecirnon (FLX475) oncologyQ4: Phase 2 ongoing; update planned at AACR in April . Q1: not highlighted in release .Not highlighted in Q2 release .De‑emphasized in Q2 communications.
Operating expensesQ4: R&D elevated on zelnecirnon; G&A increased YoY . Q1: opex up YoY; R&D decreased YoY .R&D and G&A down QoQ; opex down QoQ; YoY R&D modestly higher .Moderating sequentially.

Management Commentary

  • “We continue to analyze the data from our two Phase 2 trials of zelnecirnon (RPT193) in atopic dermatitis and asthma… We anticipate that our analysis of the data will be completed this quarter.” – Brian Wong, President & CEO (Aug 8, 2024) .
  • “The workforce reduction affected 47 people, or approximately 40% of the Company’s headcount… [with] approximately $0.9 million in restructuring charges… [execution] substantially completed by the end of the third quarter of 2024.” (Aug 8, 2024) .
  • Context from prior quarter: “We… decided to close and unblind both [zelnecirnon] trials… We anticipate that our analysis of the data will be completed in the third quarter of this year.” – Brian Wong (May 9, 2024) .

Q&A Highlights

  • No Q2 2024 earnings call transcript was available in our document set, so Q&A themes and any guidance clarifications cannot be assessed from a transcript.

Estimates Context

  • S&P Global (Capital IQ) consensus for Q2 2024 EPS and revenue was unavailable at the time of analysis; as a clinical‑stage company with no product revenue reported, a revenue beat/miss is not applicable for this period. If/when S&P consensus becomes available, we will update comparisons to actuals accordingly.

Key Takeaways for Investors

  • Near‑term catalyst: completion of unblinded zelnecirnon data analysis in Q3 2024; subsequent FDA discussions will shape the program’s path and are likely to be the principal stock driver .
  • Cost discipline is intensifying: 40% workforce reduction and modest restructuring charges underscore management’s focus on extending runway amid regulatory uncertainty .
  • Sequential opex moderation: R&D and G&A declined QoQ, improving the quarterly loss versus Q1, but net loss remains elevated vs. prior year due to lower other income and program costs .
  • Liquidity trending lower: $114.8M at quarter‑end vs. $141.6M in Q1 and $158.9M in Q4; preserving cash until regulatory clarity is obtained is key .
  • Oncology program de‑emphasized in Q2 communications; investor focus remains squarely on zelnecirnon hold resolution and data interpretation .
  • With consensus unavailable, results should be framed versus internal expectations and the binary regulatory/data path; stock likely to trade on qualitative milestones (data analysis completion, FDA interactions) rather than quarterly P&L.

Sources: Q2 2024 Form 8‑K and press release (Aug 8, 2024) ; Q1 2024 8‑K (May 9, 2024) ; Q4 2023 8‑K (Mar 7, 2024) .