2024 Q2 Form 10-Q Financial Statement

#000172452124000092 Filed on May 08, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024 Q1 2023 Q1
Revenue $39.00M $145.0M $25.00M
YoY Change 34.48% 480.0% 38.85%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $30.00M $32.00M $30.00M
YoY Change 7.14% 6.67% 25.14%
% of Gross Profit
Research & Development $115.0M $109.0M $81.00M
YoY Change 36.9% 34.57% 32.33%
% of Gross Profit
Depreciation & Amortization $2.000M $3.000M $2.000M
YoY Change 0.0% 50.0% 37.27%
% of Gross Profit
Operating Expenses $145.0M $161.0M $111.0M
YoY Change 29.46% 45.05% 30.3%
Operating Profit -$106.0M -$16.00M -$86.00M
YoY Change 27.71% -81.4% 28.01%
Interest Expense $13.00M $13.00M $9.000M
YoY Change 44.44% 44.44% 1446.39%
% of Operating Profit
Other Income/Expense, Net $13.00M $12.00M -$1.000M
YoY Change -1300.0% -623.56%
Pretax Income -$93.00M -$4.000M -$78.00M
YoY Change 25.68% -94.87% 16.44%
Income Tax $0.00 $0.00 $2.000M
% Of Pretax Income
Net Earnings -$93.00M -$4.000M -$80.00M
YoY Change 24.0% -95.0% 17.66%
Net Earnings / Revenue -238.46% -2.76% -320.0%
Basic Earnings Per Share -$1.02 -$0.05 -$1.09
Diluted Earnings Per Share -$1.02 -$0.05 -$1.10
COMMON SHARES
Basic Shares Outstanding 90.95M shares 90.86M shares 73.01M
Diluted Shares Outstanding 91.10M shares 86.20M shares 73.00M shares

Balance Sheet

Concept 2024 Q2 2024 Q1 2023 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $969.0M $995.0M $954.0M
YoY Change 4.19% 4.3% -21.39%
Cash & Equivalents $156.0M $185.0M $238.0M
Short-Term Investments $813.0M $810.0M $716.0M
Other Short-Term Assets $20.00M $29.00M $25.00M
YoY Change 5.26% 16.0% 34.94%
Inventory
Prepaid Expenses
Receivables $33.00M $40.00M $36.00M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.022B $1.064B $1.015B
YoY Change 3.65% 4.83% -19.71%
LONG-TERM ASSETS
Property, Plant & Equipment $49.00M $51.00M $37.00M
YoY Change 8.89% 37.84% 10.51%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $40.00M $100.0M $90.00M
YoY Change -50.0% 11.11% -30.14%
Other Assets $75.00M $78.00M $112.0M
YoY Change -31.19% -30.36% 928.75%
Total Long-Term Assets $164.0M $229.0M $239.0M
YoY Change -29.91% -4.18% -14.4%
TOTAL ASSETS
Total Short-Term Assets $1.022B $1.064B $1.015B
Total Long-Term Assets $164.0M $229.0M $239.0M
Total Assets $1.186B $1.293B $1.254B
YoY Change -2.79% 3.11% -18.75%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $15.00M $16.00M $28.00M
YoY Change 25.0% -42.86% 54.75%
Accrued Expenses $71.00M $64.00M $49.00M
YoY Change 29.09% 30.61% 202.54%
Deferred Revenue $113.0M $124.0M
YoY Change 9.71%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $199.0M $204.0M $179.0M
YoY Change 10.56% 13.97% 11.0%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $138.0M $140.0M $475.0M
YoY Change -70.89% -70.53% 3323.67%
Total Long-Term Liabilities $138.0M $140.0M $475.0M
YoY Change -70.89% -70.53% 3323.67%
TOTAL LIABILITIES
Total Short-Term Liabilities $199.0M $204.0M $179.0M
Total Long-Term Liabilities $138.0M $140.0M $475.0M
Total Liabilities $337.0M $344.0M $654.0M
YoY Change -48.47% -47.4% -12.43%
SHAREHOLDERS EQUITY
Retained Earnings -$946.0M -$853.0M
YoY Change 35.72%
Common Stock $1.582B $1.561B
YoY Change 24.86%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $635.0M $707.0M $600.0M
YoY Change
Total Liabilities & Shareholders Equity $1.186B $1.293B $1.254B
YoY Change -2.79% 3.11% -18.75%

Cashflow Statement

Concept 2024 Q2 2024 Q1 2023 Q1
OPERATING ACTIVITIES
Net Income -$93.00M -$4.000M -$80.00M
YoY Change 24.0% -95.0% 17.66%
Depreciation, Depletion And Amortization $2.000M $3.000M $2.000M
YoY Change 0.0% 50.0% 37.27%
Cash From Operating Activities -$94.00M -$2.000M -$98.00M
YoY Change 64.91% -97.96% -114.98%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $4.000M $3.000M
YoY Change -100.0% 33.33% 7.6%
Acquisitions
YoY Change
Other Investing Activities $63.00M -$165.0M $132.0M
YoY Change 103.23% -225.0% -149.76%
Cash From Investing Activities $63.00M -$169.0M $129.0M
YoY Change 142.31% -231.01% -148.12%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 2.000M $229.0M 1.000M
YoY Change -91.3% 22800.0% -93.3%
NET CHANGE
Cash From Operating Activities -94.00M -$2.000M -98.00M
Cash From Investing Activities 63.00M -$169.0M 129.0M
Cash From Financing Activities 2.000M $229.0M 1.000M
Net Change In Cash -29.00M $58.00M 32.00M
YoY Change 262.5% 81.25% -92.02%
FREE CASH FLOW
Cash From Operating Activities -$94.00M -$2.000M -$98.00M
Capital Expenditures $0.00 $4.000M $3.000M
Free Cash Flow -$94.00M -$6.000M -$101.0M
YoY Change 51.61% -94.06% -115.51%

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Organization, liquidity and capital resources<div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Organization </span></div><div style="margin-top:6pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Arcus Biosciences, Inc. (referred to as "Arcus," "we," "our," "us," or the "Company") is a clinical-stage biopharmaceutical company focused on creating best-in-class therapies. Using our robust and highly efficient drug discovery capability, we have created a significant portfolio of investigational products which are in clinical development, with our most advanced molecule, an anti-TIGIT antibody, now in multiple Phase 3 registrational studies targeting lung and gastrointestinal cancers. Our deep portfolio of novel small molecules and enabling antibodies allows us to create highly differentiated therapies, which we are developing to treat multiple large indications.</span></div><div style="margin-top:6pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We operate and manage our business as one reportable and operating segment, which is the business of developing and commercializing highly differentiated therapies that have a meaningful impact on patients.</span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Liquidity and Capital Resources</span></div><div style="margin-top:6pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">As of March 31, 2024, we had cash, cash equivalents and marketable securities of $1.1 billion, which we believe will be sufficient to fund our planned operations for a period of at least twelve months following the date of filing of this report.</span></div>
CY2024Q1 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
1 segment
CY2024Q1 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 segment
CY2024Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates </span></div><div style="margin-top:6pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. We base our estimates on historical experience and on various market-specific and other relevant assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Estimates are assessed and updated each period to reflect current information. Actual results may differ materially from those estimates.</span></div>
CY2024Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
145000000 usd
CY2023Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
25000000 usd
CY2024Q1 us-gaap Deferred Revenue Revenue Recognized1
DeferredRevenueRevenueRecognized1
142000000 usd
CY2023Q1 us-gaap Deferred Revenue Revenue Recognized1
DeferredRevenueRevenueRecognized1
25000000 usd
CY2024Q1 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
366000000 usd
CY2023Q4 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
398000000 usd
CY2024Q1 rcus Option Payment For Etrumadenant
OptionPaymentForEtrumadenant
100000000 usd
CY2024Q1 rcus Contract With Customer Liability Cumulative Catch Up Adjustment To Revenue Change In Measure Of Progress And Change In Estimate Of Transaction Price
ContractWithCustomerLiabilityCumulativeCatchUpAdjustmentToRevenueChangeInMeasureOfProgressAndChangeInEstimateOfTransactionPrice
107000000 usd
CY2024Q1 rcus Contract With Customer Liability Cumulative Catch Up Adjustment To Revenue Earnings Per Share Basic
ContractWithCustomerLiabilityCumulativeCatchUpAdjustmentToRevenueEarningsPerShareBasic
1.24
CY2024Q1 rcus Contract With Customer Liability Cumulative Catch Up Adjustment To Revenue Earnings Per Share Diluted
ContractWithCustomerLiabilityCumulativeCatchUpAdjustmentToRevenueEarningsPerShareDiluted
1.24
CY2024Q1 rcus Option Payment For Domvanalimab
OptionPaymentForDomvanalimab
87000000 usd
CY2024Q1 rcus Option Payment For Etrumadenant
OptionPaymentForEtrumadenant
100000000 usd
CY2024Q1 rcus Deferred Revenues At Amendment Closing Date
DeferredRevenuesAtAmendmentClosingDate
335000000 usd
CY2024Q1 rcus Allocation Of Transaction Price
AllocationOfTransactionPrice
522000000 usd
CY2024Q1 rcus Option Payment For Etrumadenant
OptionPaymentForEtrumadenant
100000000 usd
CY2024Q1 rcus Option Payment For Domvanalimab
OptionPaymentForDomvanalimab
87000000 usd
CY2024Q1 rcus Deferred Revenues At Amendment Closing Date
DeferredRevenuesAtAmendmentClosingDate
335000000 usd
CY2024Q1 rcus Allocation Of Transaction Price
AllocationOfTransactionPrice
522000000 usd
CY2024Q1 rcus Etrumadenant License And Research And Development Activities
EtrumadenantLicenseAndResearchAndDevelopmentActivities
210000000 usd
CY2024Q1 rcus Quemliclustat License And Research And Development Activities
QuemliclustatLicenseAndResearchAndDevelopmentActivities
168000000 usd
CY2024Q1 rcus Zimberelimab Research And Development And Commercial Activities
ZimberelimabResearchAndDevelopmentAndCommercialActivities
33000000 usd
CY2024Q1 rcus Access Rights
AccessRights
57000000 usd
CY2024Q1 rcus Option Continuation Periods
OptionContinuationPeriods
20000000 usd
CY2024Q1 rcus Rights To Certain Studies
RightsToCertainStudies
34000000 usd
CY2024Q1 rcus Allocation To Performance Obligations
AllocationToPerformanceObligations
522000000 usd
CY2024Q1 rcus Allocation To Performance Obligations
AllocationToPerformanceObligations
35000000 usd
CY2024Q1 us-gaap Capitalized Contract Cost Amortization
CapitalizedContractCostAmortization
2000000 usd
CY2024Q1 us-gaap Contract With Customer Asset Net
ContractWithCustomerAssetNet
4000000 usd
CY2023Q4 us-gaap Contract With Customer Asset Net
ContractWithCustomerAssetNet
3000000 usd
CY2024Q1 us-gaap Available For Sale Securities Debt Securities
AvailableForSaleSecuritiesDebtSecurities
1095000000 usd
CY2023Q4 us-gaap Available For Sale Debt Securities Amortized Cost Basis
AvailableForSaleDebtSecuritiesAmortizedCostBasis
866000000 usd
CY2023Q4 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Gain Before Tax
AvailableForSaleDebtSecuritiesAccumulatedGrossUnrealizedGainBeforeTax
1000000 usd
CY2023Q4 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Loss Before Tax
AvailableForSaleDebtSecuritiesAccumulatedGrossUnrealizedLossBeforeTax
1000000 usd
CY2023Q4 us-gaap Available For Sale Securities Debt Securities
AvailableForSaleSecuritiesDebtSecurities
866000000 usd
CY2023Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
2000000 usd
CY2023Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.023
CY2024Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
18700000 shares
CY2023Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
16300000 shares
CY2024Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
20000000 usd
CY2023Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
19000000 usd
CY2024Q1 us-gaap Available For Sale Debt Securities Amortized Cost Basis
AvailableForSaleDebtSecuritiesAmortizedCostBasis
1096000000 usd
CY2024Q1 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Gain Before Tax
AvailableForSaleDebtSecuritiesAccumulatedGrossUnrealizedGainBeforeTax
0 usd
CY2024Q1 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Loss Before Tax
AvailableForSaleDebtSecuritiesAccumulatedGrossUnrealizedLossBeforeTax
1000000 usd
CY2024Q1 us-gaap Cash And Cash Equivalents Fair Value Disclosure
CashAndCashEquivalentsFairValueDisclosure
185000000 usd
CY2023Q4 us-gaap Cash And Cash Equivalents Fair Value Disclosure
CashAndCashEquivalentsFairValueDisclosure
127000000 usd
CY2024Q1 us-gaap Available For Sale Securities Debt Securities Current
AvailableForSaleSecuritiesDebtSecuritiesCurrent
810000000 usd
CY2023Q4 us-gaap Available For Sale Securities Debt Securities Current
AvailableForSaleSecuritiesDebtSecuritiesCurrent
632000000 usd
CY2024Q1 us-gaap Available For Sale Securities Debt Securities Noncurrent
AvailableForSaleSecuritiesDebtSecuritiesNoncurrent
100000000 usd
CY2023Q4 us-gaap Available For Sale Securities Debt Securities Noncurrent
AvailableForSaleSecuritiesDebtSecuritiesNoncurrent
107000000 usd
CY2024Q1 rcus Cash Cash Equivalents And Available For Sale Investments
CashCashEquivalentsAndAvailableForSaleInvestments
1095000000 usd
CY2023Q4 rcus Cash Cash Equivalents And Available For Sale Investments
CashCashEquivalentsAndAvailableForSaleInvestments
866000000 usd
CY2024Q1 us-gaap Debt Securities Available For Sale Unrealized Loss Position Number Of Positions
DebtSecuritiesAvailableForSaleUnrealizedLossPositionNumberOfPositions
113 position
CY2023Q4 us-gaap Debt Securities Available For Sale Unrealized Loss Position Number Of Positions
DebtSecuritiesAvailableForSaleUnrealizedLossPositionNumberOfPositions
105 position
CY2023 us-gaap Provision For Loan Losses Expensed
ProvisionForLoanLossesExpensed
0 usd
CY2023Q1 us-gaap Provision For Loan Losses Expensed
ProvisionForLoanLossesExpensed
0 usd
CY2024Q1 us-gaap Provision For Loan Losses Expensed
ProvisionForLoanLossesExpensed
0 usd
CY2024Q1 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
185000000 usd
CY2023Q1 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
238000000 usd
CY2024Q1 us-gaap Restricted Cash Noncurrent
RestrictedCashNoncurrent
3000000 usd
CY2023Q1 us-gaap Restricted Cash Noncurrent
RestrictedCashNoncurrent
3000000 usd
CY2024Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
188000000 usd
CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
241000000 usd
CY2024Q1 rcus Prepaid Expenses And Other Current Assets
PrepaidExpensesAndOtherCurrentAssets
29000000 usd
CY2023Q4 rcus Prepaid Expenses And Other Current Assets
PrepaidExpensesAndOtherCurrentAssets
30000000 usd
CY2024Q1 us-gaap Interest Receivable Current
InterestReceivableCurrent
5000000 usd
CY2023Q4 us-gaap Interest Receivable Current
InterestReceivableCurrent
4000000 usd
CY2024Q1 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
34000000 usd
CY2023Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
34000000 usd
CY2024Q1 rcus Accrued Research And Development Expenses Current
AccruedResearchAndDevelopmentExpensesCurrent
37000000 usd
CY2023Q4 rcus Accrued Research And Development Expenses Current
AccruedResearchAndDevelopmentExpensesCurrent
36000000 usd
CY2024Q1 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
15000000 usd
CY2023Q4 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
26000000 usd
CY2024Q1 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
11000000 usd
CY2023Q4 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
11000000 usd
CY2024Q1 us-gaap Other Sundry Liabilities Current
OtherSundryLiabilitiesCurrent
1000000 usd
CY2023Q4 us-gaap Other Sundry Liabilities Current
OtherSundryLiabilitiesCurrent
3000000 usd
CY2024Q1 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
64000000 usd
CY2023Q4 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
76000000 usd
CY2024Q1 rcus Cash Paid For Amounts Included In Measurement Of Lease Liabilities
CashPaidForAmountsIncludedInMeasurementOfLeaseLiabilities
4000000 usd
CY2023Q1 rcus Cash Paid For Amounts Included In Measurement Of Lease Liabilities
CashPaidForAmountsIncludedInMeasurementOfLeaseLiabilities
4000000 usd
CY2024Q1 rcus Recognition Of Tenant Improvement Allowance Receivable
RecognitionOfTenantImprovementAllowanceReceivable
0 usd
CY2023Q1 rcus Recognition Of Tenant Improvement Allowance Receivable
RecognitionOfTenantImprovementAllowanceReceivable
4000000 usd
CY2024Q1 us-gaap Operating Lease Impairment Loss
OperatingLeaseImpairmentLoss
20000000 usd
CY2024Q1 us-gaap Security Deposit
SecurityDeposit
3000000 usd
CY2023Q4 us-gaap Security Deposit
SecurityDeposit
3000000 usd
CY2024Q1 rcus Contract With Customer Liability Cumulative Catch Up Adjustment To Revenue Change In Measure Of Progress And Change In Estimate Of Transaction Price
ContractWithCustomerLiabilityCumulativeCatchUpAdjustmentToRevenueChangeInMeasureOfProgressAndChangeInEstimateOfTransactionPrice
107000000 usd
CY2024Q1 ecd Non Rule10b51 Arr Adopted Flag
NonRule10b51ArrAdoptedFlag
false
CY2024Q1 ecd Non Rule10b51 Arr Trmntd Flag
NonRule10b51ArrTrmntdFlag
false
CY2024Q1 ecd Rule10b51 Arr Trmntd Flag
Rule10b51ArrTrmntdFlag
false

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