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Dec 31, 2024
Recursion Pharmaceuticals Q4 2024 Earnings Report
Recursion Pharmaceuticals reported a decline in revenue and an increase in net loss for Q4 2024.
Key Takeaways
Recursion Pharmaceuticals saw a significant revenue decline due to the timing of projects from its Roche and Genentech collaboration. Net loss increased primarily due to rising research and development expenses and administrative costs following the acquisition of Exscientia.
Revenue decreased by 58.3% YoY, primarily due to timing shifts in collaborations.
Net loss expanded to $178.9 million, reflecting increased R&D and administrative expenses.
Cash and cash equivalents grew to $594.35 million, extending the expected cash runway into 2027.
The company continues to expand its AI-driven drug discovery platform and clinical pipeline.
Forward Guidance
Recursion expects continued investment in AI-driven drug discovery and pipeline expansion, with synergies from its acquisition of Exscientia.
Positive Outlook
- Expected synergies of at least $100 million from Exscientia acquisition.
- Cash position strong, extending cash runway into 2027.
- Advancement of multiple clinical programs in oncology and rare diseases.
- Continued expansion of AI-driven drug discovery platform.
- Strong collaborations with Roche, Genentech, and Sanofi driving long-term revenue.
Challenges Ahead
- Ongoing high R&D and administrative expenses impacting profitability.
- Decline in Q4 revenue due to timing of collaboration projects.
- Increased net loss may pressure financial sustainability.
- Continued reliance on collaboration payments for revenue.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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