Sign in

You're signed outSign in or to get full access.

SI

Surrozen, Inc./DE (SRZN)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $0.70M, driven entirely by related‑party research services; there was no collaboration/license revenue in the quarter . EPS was −$9.10*, missing consensus of −$2.54*, while revenue beat a $0.00* consensus baseline [GetEstimates; Values retrieved from S&P Global].
  • Net loss widened to $28.0M in Q4, primarily due to a $19.8M non‑cash other expense from warrant liability revaluation; interest income was $0.4M . Cash ended at $34.6M, up from $31.0M in Q3 .
  • Strategic emphasis shifted toward ophthalmology, with pipeline updates across SZN‑8141/SZN‑8143 and continued progress with Boehringer Ingelheim on SZN‑413 .
  • Financing closed in March 2025 delivered ~$76.4M gross proceeds, extending runway to fund ophthalmology programs through early clinical studies .

What Went Well and What Went Wrong

What Went Well

  • Ophthalmology pipeline prioritization, with preclinical data showing retinal vessel regrowth and suppression of pathological growth for SZN‑8141 and SZN‑8143 . “We were pleased to announce a private financing to advance our novel ophthalmology-focused pipeline toward the clinic” — Craig Parker, CEO .
  • BI collaboration milestone momentum maintained from Q3, with prior $10M payment reinforcing the strategic value of SZN‑413 and Fzd4 Wnt‑modulating approach .
  • Cash increased sequentially to $34.6M; additional ~$76.4M financing in March 2025 bolsters funding for Phase 1 programs .

What Went Wrong

  • EPS significantly missed consensus (−$9.10* vs −$2.54*), reflecting large non‑cash other expense from warrant liabilities (Q4 other expense: −$19.8M) [GetEstimates; Values retrieved from S&P Global].
  • Net loss increased to $28.0M in Q4 (vs $1.4M in Q3), driven by the warrant liability fair value change and absence of milestone revenue seen in Q3 .
  • No earnings call transcript was available for Q4, limiting visibility into management’s real‑time guidance and detailed Q&A clarification [ListDocuments: 0 transcripts found].

Financial Results

Revenue, EPS, Net Loss, OpEx, Cash — Q2 → Q3 → Q4 2024

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$0.00 $10.00 $0.70
EPS ($USD)$(7.99) $(0.44) $(9.10)*
Net Loss ($USD Millions)$(25.26) $(1.43) $(28.00)
Total Operating Expenses ($USD Millions)$9.05 $8.77 $9.30 (R&D $5.4 + G&A $3.9; Restructuring $0)
Cash and Cash Equivalents ($USD Millions)$37.77 $31.01 $34.57

Note: Asterisk (*) indicates values retrieved from S&P Global.

Commentary and estimate comparison

  • Revenue: Q4 actual $0.70M vs consensus $0.00* → revenue beat driven by related‑party research services with TCGFB [GetEstimates; Values retrieved from S&P Global].
  • EPS: Q4 actual −$9.10* vs consensus −$2.54* → significant miss reflecting non‑cash warrant liability revaluation (other expense −$19.8M) and lack of milestone revenue [GetEstimates; Values retrieved from S&P Global].
  • Q3 benefited from $10.0M BI milestone revenue and much lower net loss , highlighting quarter‑to‑quarter volatility tied to collaboration timing and warrant valuation.

Balance sheet drivers (select items)

KPIQ2 2024Q3 2024Q4 2024
Warrant Liabilities ($USD Millions)$33.03 $36.21 $55.89
Accounts Receivable ($USD Millions)$2.11 $12.20 $2.04

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
SZN‑043 Phase 1b PoC timingH1 2025H1 2025 (communicated in Q2/Q3 2024) H1 2025 reiterated Maintained
Pipeline focusN/ADual liver/eye focus Prioritized ophthalmology programs Strategic shift toward ophthalmology
Financial guidance (revenue, OpEx, margins, tax)N/ANot providedNot providedN/A

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was available; themes below reflect continuity of narrative across Q2, Q3, and the Q4 press release.

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
R&D execution (SZN‑043)Phase 1b enrollment initiated; PoC H1 2025 Cohort 1 completed; no drug‑related SAEs; PoC H1 2025 No new timeline; continued emphasis on ophthalmology; prior liver update stands Stable timeline; liver program de‑emphasized vs ophthalmology
Ophthalmology pipelineBI collaboration progressing; anticipated Fzd4 candidate nomination Novel preclinical retinal candidates (SZN‑8141/8143/113) nominated Portfolio prioritized; preclinical differentiation reiterated Increasing emphasis
Strategic financingPrivate placement in April 2024 with associated accounting impacts Received $10M BI milestone in Oct 2024 ~$76.4M financing closed Mar 2025 Strengthened funding
Collaboration revenue timingNone in Q2 $10M BI milestone recognized None in Q4; related‑party services $0.7M Volatile; milestone‑driven
Regulatory/milestones (ophthalmology)BI collaboration status BI advancing SZN‑413 toward clinical testing; $10M milestone Continued expectation of BI development Positive continuity

Management Commentary

  • “In 2024, we continued to leverage our research capabilities and significant expertise in antibody engineering technologies focused on Wnt signal modulation... More recently, we were pleased to announce a private financing to advance our novel ophthalmology-focused pipeline toward the clinic.” — Craig Parker, President & CEO .
  • “Published data in the severe alcohol-associated hepatitis population indicates an expected mortality rate of approximately 15 to 20% at day 30... We are encouraged to see that SZN‑043 is safe at the first dose level... showing signs of providing a clinical benefit to patients.” — Craig Parker .
  • BI partnership: SZN‑413 designed using SWAP technology for retinal diseases; preclinical data shows potent Wnt signaling, normal vessel regrowth, suppression of pathological vessels, and reduced leakage .

Q&A Highlights

  • No Q4 2024 earnings call transcript was filed; therefore, no Q&A details, clarifications, or tone changes are available for the period [ListDocuments: 0 transcripts found].

Estimates Context

MetricQ4 2024 ConsensusQ4 2024 Actual
Primary EPS Consensus Mean−$2.54*−$9.10*
Revenue Consensus Mean ($USD)$0.00*$0.655M*

Notes:

  • Asterisk (*) indicates values retrieved from S&P Global. Values retrieved from S&P Global.
  • Company‑reported revenue for Q4 was $0.70M related‑party services ; S&P Global rounded actual reflects reported fact pattern.

Implications:

  • EPS miss vs consensus driven by non‑cash warrant liability revaluation and absence of Q3‑like milestone revenue . Revenue beat vs $0 baseline reflects TCGFB collaboration services .

Key Takeaways for Investors

  • Expect continued quarter‑to‑quarter P&L volatility tied to collaboration timing (e.g., Q3 BI milestone vs Q4 none) and warrant liability fair value changes (Q4 other expense −$19.8M) .
  • Funding runway materially improved with ~$76.4M March 2025 financing; cash ended Q4 at $34.6M, providing resources for ophthalmology programs through early clinical stages .
  • Strategic pivot toward ophthalmology increases near‑term focus on retinal candidates (SZN‑8141/8143) and BI’s SZN‑413 development path; preclinical data supports differentiation .
  • Liver program (SZN‑043) remains a 2025 catalyst with Phase 1b PoC timing maintained for H1 2025 and initial cohort safety/clinical signals encouraging .
  • Balance sheet sensitivity persists: warrant liabilities rose to $55.9M in Q4 (vs $36.2M in Q3), impacting reported other expense and EPS .
  • Near‑term trading may react to ophthalmology collaboration updates and BI development milestones; medium‑term thesis hinges on clinical translation in ophthalmology and SZN‑043 PoC readout .
  • Revenue visibility remains limited absent product sales; collaboration and research services can provide episodic upside (e.g., BI milestone, TCGFB services) .