Turnstone Biologics Corp. (TSBX)·Q1 2024 Earnings Summary

Executive Summary

• Q1 2024 had no collaboration revenue ($0.00) and reported a net loss of $19.6M, with diluted EPS of $(0.85); cash, cash equivalents and short-term investments were $77.8M .
• Management reiterated an initial TIDAL-01 Phase 1 clinical update anticipated mid-year, a key upcoming catalyst for the stock narrative .
• Turnstone secured a $20M non-dilutive revolving credit facility (Banc of California) to support pipeline and clinical trials, enhancing financial flexibility .
• Cash runway guidance moved from “into Q2 2025” (Q4 2023) to “into Q3 2025” (Q1 2024), reflecting increased funding capacity and updated planning assumptions .
• Governance strengthened: appointment of William Waddill (Audit Chair) to the Board; Patrick Machado resigned (no dispute), supporting public company readiness .

What Went Well and What Went Wrong

What Went Well

• Secured additional dedicated cleanroom capacity at Moffitt’s on-site cGMP facility for STARLING trial manufacturing; IND cleared, improving operational readiness for TIDAL-01 .
• Established a $20M non-dilutive revolver to bolster liquidity while avoiding equity dilution: “allows Turnstone to draw on an aggregate amount up to $20 million” .
• Management clarity on near-term catalysts: “We remain on track and plan to provide a TIDAL-01 clinical update mid-year in connection with our next quarterly financial results” .

What Went Wrong

• Collaboration revenue dropped to $0 in Q1 2024 versus $19.306M in Q1 2023, primarily due to the termination/wind-down of the Takeda agreement; this drove the YoY swing from slight net income to a net loss .
• R&D increased modestly YoY (+$0.1M to $15.8M), driven by $2.4M higher manufacturing and $0.2M higher personnel costs as TIDAL-01 ramps; offset by lower clinical/regulatory and preclinical spend .
• No earnings call transcript available for Q1 2024, limiting insight into real-time management Q&A and estimate context [earnings-call-transcript list returned none].

Financial Results

Balance Sheet Snapshot

Estimate Comparison

• S&P Global Wall Street consensus estimates for Q1 2024 EPS and revenue were unavailable via our data connection (Capital IQ mapping missing), so no “vs. estimates” comparison can be provided at this time.*

KPI Highlights (Operating and Liquidity)

Guidance Changes

Earnings Call Themes & Trends

Note: No Q1 2024 earnings call transcript found.

Management Commentary

• “We are excited about the therapeutic potential of our pipeline of next-generation Selected TIL therapies… This year, we look forward to generating clinical data… and support further advancement of our lead asset, TIDAL-01… We remain on track and plan to provide a TIDAL-01 clinical update mid-year” — Sammy Farah, President & CEO .
• “Lead program, TIDAL-01, advancing in Phase 1 trials with initial clinical data expected in mid-2024” (Q4 release) .

Q&A Highlights

• No Q1 2024 earnings call transcript was available; therefore, no Q&A highlights can be provided for this period (no transcript found in our document catalog).

Estimates Context

• S&P Global consensus EPS and revenue estimates for Q1 2024 could not be retrieved due to missing Capital IQ mapping for TSBX. As a result, estimate comparisons and beat/miss assessments are unavailable.*
• Implication: Sell-side models may focus on cash runway changes and TIDAL-01 execution milestones; any future availability of consensus will improve comparative analysis.

Key Takeaways for Investors

• Core near-term catalyst remains the initial TIDAL-01 clinical update mid-year; the company is positioning with added cleanroom capacity and operational readiness .
• Liquidity improved with a $20M non-dilutive revolver; cash runway guided into Q3 2025 supports continued Phase 1 execution without immediate equity raise pressure .
• The YoY revenue decline (from $19.306M to $0.00) and net loss reflect the post-Takeda transition; watch for clinical data to drive narrative and potential partnering interest .
• R&D spend is leaning into manufacturing and personnel for TIDAL-01; expect expense mix to track trial progress and manufacturing optimization .
• Governance enhancements (Audit Chair appointment) support public company maturity ahead of critical data milestones .
• Trading: Stock likely to be event-driven around mid-year data; absence of Q1 transcript and unavailable consensus may heighten sensitivity to any interim updates .
• Medium term: Validation of Selected TIL approach beyond melanoma and consistency of manufacturing yields will be pivotal for differentiation and potential BD .

*Values retrieved from S&P Global were unavailable due to a mapping error; estimate comparisons cannot be provided.