OmniAb (OABI) Q4 2024 Earnings Call March 18, 2025 04:30 PM ET Company Participants Kurt Gustafson - CFOMatt Foehr - President & CEOPuneet Souda - Senior MD Conference Call Participants Joseph Pantginis - MD & Senior Healthcare AnalystMatt Hewitt - Senior Research AnalystSrikripa Devarakonda - AnalystNone - Analyst Operator Good afternoon and welcome to OmniAb Inc. Fourth Quarter and Full Year twenty twenty four Financial Results and Business Update Conference Call. At this time, all participants are in a l ...

Revenue Performance - Revenue for Q4 2024 was $10.8 million, a 125% increase from $4.8 million in Q4 2023, driven by higher license and milestone revenue [3] - Full year 2024 revenue was $26.4 million, down from $34.2 million in 2023, primarily due to the recognition of a $10.0 million TECVAYLI milestone in 2023 [6] - Total revenue for Q4 2024 was $10,804,000, a significant increase of 124% compared to $4,822,000 in Q4 2023 [30] - License and milestone revenue rose to $8,650,000 in Q4 2024, up from $1,713,000 in Q4 2023, representing a growth of 404% [30] Expenses and Losses - Research and development expense for Q4 2024 was $13.3 million, a decrease of 10.1% from $14.8 million in Q4 2023 [4] - Net loss for Q4 2024 was $13.1 million, or $0.12 per share, compared to a net loss of $14.1 million, or $0.14 per share in Q4 2023 [5] - Research and development expenses for the year were $55,110,000, a slight decrease from $56,525,000 in 2023 [30] - Operating expenses totaled $100,893,000 for the year, down from $103,583,000 in 2023, showing a reduction of 2.6% [30] - The company reported a basic and diluted net loss per share of $0.12 for Q4 2024, compared to $0.14 in Q4 2023 [30] Cash Flow and Assets - Cash use in 2024 was $38.9 million, and OmniAb anticipates lower cash use in 2025 [8] - Cash and cash equivalents increased to $27,598,000 in 2024 from $16,358,000 in 2023, marking a growth of 68.5% [28] - Total assets decreased to $325,558,000 in 2024 from $375,225,000 in 2023, reflecting a decline of 13.2% [28] - Total liabilities reduced to $37,940,000 in 2024, down from $60,640,000 in 2023, indicating a decrease of 37.4% [28] Partnerships and Development - As of December 31, 2024, OmniAb had 91 active partners and 363 active programs, including 32 programs in clinical development [9] - Five new OmniAb-derived antibodies entered clinical trials in 2024, indicating ongoing innovation and development [9] - The company signed 10 new license agreements in 2024, including two in Q4 with Incyte Corporation and Photinia Biosciences [9] Future Outlook - OmniAb expects 2025 revenue to be in the range of $20 million to $25 million, with operating expenses projected between $90 million and $95 million [8] - OmniAb launched OmniHub in December 2024, a bioinformatics portal designed to enhance data visualization and secure data transfer for partners [10] Share Information - The weighted-average shares outstanding increased to 104,795,000 in Q4 2024 from 100,162,000 in Q4 2023 [30]

Core Viewpoint - Kuehn Law, PLLC is investigating potential breaches of fiduciary duties by officers and directors of OmniAb, Inc. related to self-dealing, which may entitle shareholders to damages and corporate governance reforms [1]. Group 1 - The investigation by Kuehn Law focuses on whether certain officers and directors of OmniAb, Inc. have engaged in self-dealing that could harm shareholder interests [1]. - Shareholders of OmniAb, Inc. may be eligible for damages and reforms in corporate governance as a result of the investigation [1]. Group 2 - Long-term shareholders of OmniAb, Inc. are encouraged to contact Kuehn Law for a free consultation regarding their rights and potential claims [2]. - Kuehn Law covers all case costs and does not charge its investor clients, emphasizing the importance of timely action for shareholders [2]. Group 3 - The firm highlights the significance of shareholder participation in maintaining the integrity and fairness of financial markets, encouraging investors to voice their concerns [3].

Financial Data and Key Metrics Changes - OmniAb reported its third quarter 2024 financial results, with specific metrics and figures to be detailed in the accompanying slides available on their website [3]. Business Line Data and Key Metrics Changes - Detailed performance metrics for each business line were not provided in the available content [5]. Market Data and Key Metrics Changes - Specific market data and key metrics were not disclosed in the provided content [5]. Company Strategy and Development Direction and Industry Competition - The management emphasized the importance of forward-looking statements and the inherent risks and uncertainties associated with them, indicating a cautious approach to future projections [4]. Management Comments on Operating Environment and Future Outlook - Management has not yet provided specific comments regarding the operating environment or future outlook in the available content [5]. Other Important Information - The conference call was recorded and is time-sensitive, with the information being accurate only as of the date of the live broadcast, November 12, 2024 [5]. Q&A Session All Questions and Answers - No specific questions or answers from the Q&A session were included in the provided content [5].

Core Insights - OmniAb, Inc. reported a quarterly loss of $0.16 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.14, marking an earnings surprise of -14.29% [1] - The company's revenues for the quarter ended September 2024 were $4.17 million, missing the Zacks Consensus Estimate by 52.95%, and down from $5.48 million a year ago [2] - The stock has underperformed, losing about 25.5% since the beginning of the year, while the S&P 500 gained 25.8% [3] Financial Performance - Over the last four quarters, OmniAb has surpassed consensus EPS estimates two times [2] - The current consensus EPS estimate for the upcoming quarter is -$0.11 on revenues of $12.14 million, and for the current fiscal year, it is -$0.58 on revenues of $32.3 million [7] Industry Context - The Medical - Drugs industry, to which OmniAb belongs, is currently ranked in the top 27% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The performance of OmniAb's stock may be influenced by the overall industry outlook and trends in earnings estimate revisions [5][8]

Revenue Performance - Total revenue for the three months ended September 30, 2024, was $4.172 million, a decrease of 24% from $5.477 million in the same period of 2023[153]. - License and milestone revenue for the nine months ended September 30, 2024, was $5.216 million, down 73% from $18.986 million in the prior year, primarily due to the recognition of significant milestones in the previous period[155]. - Service revenue for the three months ended September 30, 2024, was $2.479 million, an 18% decline from $3.016 million in the same period of 2023[153]. - Royalty revenue for the nine months ended September 30, 2024, was $955,000, a 3% increase from $931,000 in the same period of 2023[155]. Operating Expenses - The company reported total operating expenses of $23.936 million for the three months ended September 30, 2024, a decrease of 7% from $25.792 million in the same period of 2023[156]. - Research and development expenses for the three months ended September 30, 2024, were $13.318 million, a slight decrease of 4% from $13.867 million in the same period of 2023[156]. - Total operating expenses decreased by $3,346,000 or 4% to $74,209,000 for the nine months ended September 30, 2024, compared to $77,555,000 in 2023[161]. - Research and development expenses for the nine months ended September 30, 2024, were $41,804,000, a slight increase of $45,000 or 0% compared to $41,759,000 for the same period in 2023[161]. Net Loss and Cash Flow - The net loss for the nine months ended September 30, 2024, was $48,965,000, an increase of $12,399,000 or 34% from a net loss of $36,566,000 in 2023[164]. - Cash used in operating activities for the nine months ended September 30, 2024, was $35,792,000, a decrease of $47,260,000 compared to cash provided of $11,468,000 in 2023[172]. - Cash provided by investing activities for the nine months ended September 30, 2024, was $37,499,000, an increase of $60,605,000 compared to cash used of $23,106,000 in 2023[172]. - As of September 30, 2024, the company had cash, cash equivalents, and short-term investments totaling $59,400,000, sufficient to support operations for at least the next 12 months[167]. Future Capital and Investments - The company anticipates raising additional capital in the future to expand its business and pursue strategic investments, with potential proceeds of up to $218.6 million from warrant exercises, contingent on market conditions[170][169]. - The company entered into an Open Market Sale Agreement to sell up to $100,000,000 in common stock through an "at the market" offerings program[169]. Partnerships and Programs - As of September 30, 2024, the company had 86 active partners and 352 active programs utilizing the OmniAb technology platform, an increase from 77 partners and 325 programs as of December 31, 2023[142][149]. - The company had 33 active clinical programs as of September 30, 2024, an increase from 32 programs as of December 31, 2023[149][152]. - The company has three approved products from its partners, remaining unchanged since December 31, 2023[149][152]. Royalty and Compensation - The royalty rates for antibody discovery contracts are currently in the low- to mid-single digits, with the royalty term typically linked to the composition-of-matter patents filed by partners[146]. - Research and development expenses included $16.4 million in share-based compensation and $16.0 million in depreciation and amortization for the nine months ended September 30, 2024[173]. Tax Rate - The effective tax rate for the nine months ended September 30, 2024, was (12.9)%, compared to (17.5)% for the same period in 2023[164].

| --- | --- | --- | --- | --- | --- | |----------------------------------------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | Q3 2024 Financial Results & Business Update | | | | | | | Nasdaq: OABI | | | | | | | November 12, 2024 | | | | | | 1 Disclaimer 2 We caution you that this presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding our future results of operatio ...

Revenue Performance - Revenue for Q3 2024 was $4.2 million, a decrease of 23.6% compared to $5.5 million in Q3 2023, primarily due to timing of milestones and lower ion channel service revenue[3]. - Year-to-date revenue for the nine months ended September 30, 2024, was $15.6 million, down 46.8% from $29.3 million in the same period of 2023, largely due to lower milestone revenue[6]. - Total revenue for the three months ended September 30, 2024, was $4,172,000, a decrease from $5,477,000 in the same period of 2023, representing a decline of 23.8%[23]. - License and milestone revenue for Q3 2024 was $1,375,000, down from $2,010,000 in Q3 2023, a decrease of 31.6%[23]. - Service revenue increased to $2,479,000 in Q3 2024 from $3,016,000 in Q3 2023, a decrease of 17.8%[23]. Net Loss - Net loss for Q3 2024 was $16.4 million, or $0.16 per share, compared to a net loss of $15.7 million, or $0.16 per share, in Q3 2023[5]. - Year-to-date net loss for the nine months ended September 30, 2024, was $49.0 million, or $0.48 per share, compared to a net loss of $36.6 million, or $0.37 per share, for the same period in 2023[7]. - Net loss for Q3 2024 was $16,373,000, slightly higher than the net loss of $15,738,000 in Q3 2023[23]. - Net loss per share for Q3 2024 remained at $(0.16), consistent with Q3 2023[23]. Expenses - Research and development expenses for Q3 2024 were $13.3 million, a slight decrease from $13.9 million in Q3 2023, primarily due to lower share-based compensation[4]. - General and administrative expenses for Q3 2024 were $7.1 million, down from $8.5 million in Q3 2023, mainly due to lower legal and share-based compensation expenses[4]. - Operating expenses for Q3 2024 totaled $23,936,000, compared to $25,792,000 in Q3 2023, a reduction of 7.2%[23]. - Research and development expenses were $13,318,000 for Q3 2024, compared to $13,867,000 in Q3 2023, a decrease of 4.0%[23]. Cash and Investments - OmniAb had cash, cash equivalents, and short-term investments of $59.4 million as of September 30, 2024[7]. - Cash and cash equivalents increased to $27,236,000 as of September 30, 2024, from $16,358,000 at December 31, 2023[22]. - OmniAb expects total operating expenses in 2024 to be slightly less than in 2023 and anticipates ending 2024 with a cash balance between $50 million and $60 million[9]. Partnerships and Agreements - The company entered into three new platform license agreements during Q3 2024, increasing its active partners to 86 and active programs to 352[10]. - OmniAb sold 2.0 million shares of common stock through its ATM program in Q3 2024, generating net proceeds of $8.5 million[8]. Assets and Liabilities - Total assets decreased to $331,554,000 as of September 30, 2024, down from $375,225,000 at December 31, 2023, a decline of 11.6%[22]. - Total liabilities decreased to $39,826,000 as of September 30, 2024, from $60,640,000 at December 31, 2023, a reduction of 34.3%[22].

| --- | --- | --- | --- | --- | --- | |-----------------------------------------------------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | Q2 2024 Financial Results & Business Update Nasdaq: OABI | | | | | | | August 8, 2024 | | | | | | 1 Disclaimer We caution you that this presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding our future results of operations and ...

OmniAb, Inc. (NASDAQ:OABI) Q2 2024 Earnings Call August 8, 2024 4:30 PM ET Company Participants Kurt Gustafson - Chief Financial Officer Matt Foehr - President and Chief Executive Officer Conference Call Participants Michael Sonntag - Leerink Partners Chad Wiatrowski - TD Cowen Stephen Willey - Stifel Conor McNamara - RBC Capital Markets Operator Good afternoon and welcome to OmniAb Incorporated 2024 Financial Results and Business Update Conference Call. [Operator Instructions] As a reminder, this conferenc ...