• 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.

• Warning! GuruFocus has detected 2 Warning Sign with OABI.

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.

Q: Can you provide more information on the new technology rollouts planned for this year? A: Kurt Gustafson, CFO, mentioned that OmniAb is committed to innovation, which is a significant competitive advantage. The company plans to launch new technologies that will enable the discovery of high-quality candidates more efficiently. These innovations are expected to expand existing partnerships and attract new ones. The launches are aligned with key scientific conferences, such as the PEGs Protein Engineering Conference in May and the AET Conference in December.

Q: In the current volatile markets, do you anticipate additional pipeline and development leading to increased cash deployment from partners? A: Matthew Foehr noted that OmniAb's business has been resilient across various cycles. The scalable and flexible nature of their platforms positions them well in different market landscapes, allowing them to adapt to various industry cycles and research approaches.

Q: Regarding the 2025 revenue guidance of $20 to $25 million, what portion is expected to be cash versus non-cash? A: Kurt Gustafson explained that the guidance is a GAAP number. The decrease in revenue compared to 2024 is primarily due to a reduction in non-cash service revenue. The deferred service revenue balance is now down to $2.5 million, indicating a decrease in non-cash revenue for 2025.

Q: Are you seeing any impact on academic partnerships due to market volatility and NIH funding concerns? A: Matthew Foehr stated that, so far, there has been no impact on their academic partnerships. OmniAb continues to engage in active dialogue with prospective academic partners, and they recently signed a new deal with a leading academic institution interested in leveraging their technology.

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