Yahoo Finance XOMA Corp (XOMA) Q1 2024 Earnings: Misses Revenue Estimates, Reports Lower Net Loss
Revenue: Reported $1.5 million, a significant increase from $0.4 million in the first quarter of 2023, surpassing the estimated $1.33 million.
Net Loss: Recorded a net loss of $8.6 million, an improvement from a net loss of $9.8 million year-over-year, and above the estimated net loss of $9.4 million.
Earnings Per Share: Basic and diluted net loss per share was $0.86, above the estimated loss per share of $0.81.
General and Administrative Expenses: Increased to $8.5 million from $6.2 million in the previous year, primarily due to higher stock-based compensation and consulting fees.
Cash Position: Ended the quarter with $142.4 million in cash and cash equivalents, a decrease from $159.6 million at the end of the previous quarter.
R&D Expenses: Remained low at $33,000, reflecting the company's focus on managing operational expenses effectively.
Stock Repurchase Program: Launched a new stock repurchase program for up to $50 million, highlighting confidence in the company's financial stability and future prospects.
XOMA Corp (NASDAQ:XOMA) released its 8-K filing on May 9, 2024, detailing its financial results for the first quarter of 2024. The biotechnology royalty aggregator reported a net loss of $8.6 million, an improvement from a net loss of $9.8 million in the same period last year. Despite this, the company missed revenue estimates with a recorded revenue of $1.5 million against an estimated $1.33 million.
XOMA plays a crucial role in the biotech industry by acquiring potential future economics associated with pre-commercial and commercial therapeutic candidates. This strategy provides non-dilutive, non-recourse funding to the original developers, allowing them to advance their drug candidates or support general corporate purposes.
Financial Highlights and Strategic Achievements
The company's revenue primarily included a $1.0 million milestone payment from AVEO Oncology, reflecting a significant increase from $0.4 million in Q1 2023. The increase in revenue highlights the company's successful strategy of expanding its portfolio through strategic acquisitions and partnerships.
Significant events during the quarter included the FDA approval of OJEMDA (tovorafenib), which triggered a $9 million milestone payment to XOMA. The company also launched its first stock repurchase program, underscoring its confidence in its financial health and future prospects.
Operational and Financial Challenges
Despite the positive developments, XOMA faced challenges in the form of increased General and Administrative (G&A) expenses, which rose to $8.5 million from $6.2 million in the prior year's quarter. This increase was primarily due to higher stock-based compensation and consulting and legal expenses, associated with the new CEO appointment and ongoing business expansions.
Balance Sheet and Cash Flow Insights
As of March 31, 2024, XOMA reported having $142.4 million in cash and cash equivalents, a decrease from $159.6 million at the end of 2023. The net cash used in operating activities was $4.9 million for the quarter. The company's strategic acquisitions and the initiation of a stock repurchase program were significant uses of cash during the quarter.
Outlook and Future Prospects
Looking ahead, XOMA is poised to benefit from its diversified portfolio of assets, which includes several commercial and pre-commercial therapeutic candidates. The company expects to continue earning milestones and royalties as these candidates progress through development and commercialization.
XOMA's strategic focus on expanding its portfolio and its disciplined approach to capital deployment are expected to drive long-term value creation for its stakeholders. The company remains committed to leveraging its unique business model to support the advancement of novel therapeutics in the biotechnology industry.
For more detailed information about XOMA Corp and its portfolio, please visit www.xoma.com.
Explore the complete 8-K earnings release (here) from XOMA Corp for further details.
This article first appeared on GuruFocus.
