OmniAb Inc (OABI) Q4 2024 Earnings Call Highlights: Strong Revenue Growth Amid Strategic Challenges

In This Article:

  • Revenue: $10.8 million in Q4 2024, up from $4.8 million in Q4 2023.

  • Net Loss: $13.1 million or $0.12 per share in Q4 2024, compared to $14.1 million or $0.14 per share in Q4 2023.

  • Full Year Revenue: Increase excluding a $10 million milestone from the previous year.

  • Full Year Net Loss: $62 million or $0.61 per share in 2024, compared to $50.6 million or $0.51 per share in 2023.

  • Operating Expense: $2.7 million impairment charge in Q4 2024 related to small molecule ion channel assets.

  • Cash Position: $59.4 million at the end of 2024.

  • Active Partners: 18% year-over-year growth, totaling 91 active partners as of December 31, 2024.

  • Active Programs: 12% increase, reaching 362 active programs as of December 31, 2024.

  • 2025 Revenue Guidance: Expected to be in the range of $20 to $25 million.

  • 2025 Operating Expense Guidance: Expected to be between $90 to $95 million.

Release Date: March 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • OmniAb Inc (NASDAQ:OABI) reported strong performance in 2024 with double-digit percentage growth in both the number of active partners and active programs.

  • The company introduced new technologies and enhancements that are positively impacting partnerships and driving efficiencies.

  • OmniAb Inc (NASDAQ:OABI) achieved an 18% year-over-year growth in the number of active partners, reaching 91 active partners by the end of 2024.

  • The number of active programs increased by 12% year-over-year, reaching 362 active programs as of December 31, 2024.

  • OmniAb Inc (NASDAQ:OABI) reported a substantial increase in total revenue for Q4 2024, reaching $10.8 million compared to $4.8 million in the same period in 2023.

Negative Points

  • Service revenue declined as certain small molecule ion channel programs were completed and transitioned to partners.

  • OmniAb Inc (NASDAQ:OABI) recorded a $2.7 million impairment charge related to small molecule ion channel intangible assets.

  • The net loss for Q4 2024 was $13.1 million, slightly lower than the $14.1 million loss in the prior year period.

  • Royalty revenue was lower due to competitive market dynamics in China affecting product sales.

  • The company expects a decrease in 2025 revenue due to a reduction in non-cash service revenue.

Q & A Highlights

Q: With regard to attrition rates, are there any attrition numbers due to technical issues? A: Matthew Foehr, President and CEO, stated that the attrition observed was not related to technical issues. Instead, it was primarily due to big pharma pipeline realignment, which is a normal part of the drug development process. The company experienced a strong quarter in terms of additions, positioning them well for the year.

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