Name: SYNLOGIC, INC. Q3 2024 Earnings Call
Start: 2024-11-12T00:00:00.000Z

Executive Summary

Q3 2024 delivered zero revenue and a sharply narrowed net loss of $0.1 million ($0.01 per share) driven by an R&D expense benefit from clinical closeouts and accrual reversals; cash and cash equivalents ended at $19.4 million .
The company continues its strategic review with Lucid Capital Markets, evaluating potential acquisition, merger, or other transactions; management explicitly cautioned that there is no assurance the process will result in any transaction .
Sequentially, results normalized from a Q2 2024 restructuring-driven net income of $2.0 million ($0.16 per share), while operating costs remained materially lower year over year .
No formal guidance or Q3 earnings call transcript was found; analysis is anchored in the 8-K/press release and prior quarter materials .

What Went Well and What Went Wrong

What Went Well
- Operating expense discipline: total operating expenses fell to $0.7 million in Q3 2024 versus $13.0 million in Q3 2023, reflecting restructuring and accrual reversals .
- R&D benefit: “There was a benefit of $0.7 million related to research and development expenses… due to the decision to discontinue Synpheny-3, resulting in a benefit upon reversal of the accrual.” .
- Strategic alternatives underway: “retained Lucid Capital Markets, LLC to act as its financial advisor to explore and evaluate strategic options” (potential acquisition/merger/business combination) .
What Went Wrong
- No revenue: Q3 2024 revenue was $0, down from $0.4 million in Q3 2023 as legacy collaboration revenues wound down .
- Restructuring costs: Q3 incurred $0.3 million in restructuring charges following the February 2024 decision to discontinue Synpheny-3 and reduce workforce .
- Reduced cash balance: cash declined from $32.3 million at 3/31/24 to $19.4 million at 9/30/24, reflecting restructuring and lower operating scale but a narrower quarterly loss .

Metric	Q3 2023	Q1 2024	Q2 2024	Q3 2024
Revenue ($USD Thousands)	$393	$8	$0	$0
Net Income (Loss) ($USD Thousands)	$(12,078)	$(31,564)	$2,012	$(117)
EPS ($USD)	$(2.57)	$(2.60)	$0.16	$(0.01)
Total Operating Expenses ($USD Thousands)	$13,016	$38,853	$(419)	$748

Operating Expense Breakdown ($USD Thousands)	Q1 2024	Q2 2024	Q3 2024
Research & Development	$7,680	$2,197	$(713)
General & Administrative	$2,884	$1,179	$1,165
Restructuring & Other Charges	$28,289	$(3,795)	$296

Liquidity	Mar 31, 2024	Jun 30, 2024	Sep 30, 2024
Cash & Cash Equivalents ($USD Thousands)	$32,311	$19,966	$19,389

Segment breakdown: Not applicable; no segment reporting disclosed in Q3 materials .
KPIs: Not applicable beyond operating expense components and cash balances reported above .

Metric	Period	Previous Guidance	Current Guidance	Change
Company Guidance	FY/Q4 2024+	None issued	None issued	Maintained (no formal guidance)

Management provided no revenue, margin, OpEx, OI&E, or tax rate guidance; focus remains on strategic alternatives .

Note: No Q3 2024 earnings call transcript identified; table leverages Q1/Q2 releases and Q3 press release .

Topic	Previous Mentions (Q1 & Q2 2024)	Current Period (Q3 2024)	Trend
Strategic Alternatives	Initiated and retained Lucid Capital Markets; process ongoing	Strategic review continues; no timetable; no assurance of transaction	Ongoing; outcome uncertain
R&D Execution / Restructuring	Large restructuring charges post Synpheny-3 discontinuation; R&D down vs prior year	R&D “benefit” from accrual reversal and trial closeout refund; lower G&A	Cost base structurally lower; program closeouts
Pipeline Status (PKU/SYNB1934)	Discontinued Synpheny-3 in Feb 2024	Discontinuation referenced as driver for accrual reversals/restructuring	Program halted; repositioning continues
Liquidity / Cash Runway	Cash $32.3M at 3/31	Cash $20.0M at 6/30; $19.4M at 9/30	Declining but losses narrowed
Operating Expenses	Heavy in Q1 due to restructuring; negative total OpEx in Q2 due to gain	Total OpEx $0.7M; significant YoY reduction	Lower structural OpEx

“As previously announced, the Company retained Lucid Capital Markets, LLC to act as its financial advisor to explore and evaluate strategic options for maximizing shareholder value… Potential strategic alternatives… include the potential for an acquisition, merger, business combination or other strategic transaction” .
“There can be no assurance, however, that this process will result in any such transaction.” .
“During the three months ended September 30, 2024, Synlogic received a refund related to the closeout of one of its clinical trials and estimates of manufacturing expenses… were revised due to the decision to discontinue Synpheny-3, resulting in a benefit upon reversal of the accrual.” .

Wall Street consensus estimates via S&P Global for Q3 2024 EPS and revenue were not available to retrieve at time of analysis; comparisons to estimates are therefore not provided (S&P Global consensus unavailable).
Investors should anchor expectations on the press release actuals until consensus becomes accessible .

Zero revenue and materially reduced expense base characterize Q3 2024; net loss narrowed to $0.1M with EPS at $(0.01) .
Cash ended Q3 at $19.4M; sequential decline from $20.0M in Q2 and $32.3M in Q1 underscores the importance of the strategic review outcome for future funding .
The Q2 restructuring gain (lease termination and asset sales) created a transient profit; Q3 reflects normalized operations with continued cost containment .
The ongoing strategic alternatives process is the primary near-term catalyst; management offers no timetable and emphasizes outcome uncertainty .
With Synpheny-3 discontinued, accrual reversals benefited R&D expense in Q3; lower G&A supports a leaner operating model .
Absence of guidance and a Q3 call transcript limits visibility; monitor SEC filings and news for updates on strategic transactions and liquidity .
Year-over-year comparisons highlight structural cost reductions (OpEx from $13.0M to $0.7M) despite no revenue, informing downside protection from a smaller burn rate during the review period .