ARQT Earnings Prediction
The chart below shows how ARQT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ARQT sees a -4.94% change in stock price 10 days leading up to the earnings, and a -7.06% change 10 days following the report. On the earnings day itself, the stock moves by +3.57%. This data can give you a slight idea of what to expect for the next quarter's release.
ARQT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
44.76M
17.44%
45.04%
Gross Margin
87.70%
-9.49%
-1.21%
Operating Margin
-87.29%
-9.86%
-46.21%
Net Margin
-92.81%
-20.99%
-45.27%
EPS
-0.33
-54.79%
-21.43%
No Data Available
ARQT Earnings Analysis
Arcutis Biotherapeutics, Inc. Common Stock Corporation (ARQT.O) Earnings Conference Call
Positive
ZORYVE Sales Surge: 1. Impressive Revenue Growth: ZORYVE portfolio sales grew 452% year-over-year and 45% quarter-over-quarter, reaching $44.8 million in Q3 2024.
Prescription Demand Surge: 2. Strong Prescription Demand: Total prescriptions for the ZORYVE portfolio increased by 25% quarter-over-quarter, with new prescription growth also rising by 23% in the same period.
Gross-to-Net Enhancement: 3. Significant Gross-to-Net Improvement: The gross-to-net percentage improved to the low 50% range, a meaningful enhancement from the high 50s in the previous quarter.
Market Access Expansion: 4. Expansion of Market Access: Medicaid coverage has been secured in several states, representing coverage for roughly four in ten Americans, with expectations for additional states to follow.
Strong Cash Reserves: 5. Robust Cash Position: As of September 30, 2024, Arcutis reported cash and marketable securities of $331 million, with a cash burn from operations of $35 million, down over 23% from the previous quarter.
Negative
Cash Burn Analysis: 1. High Cash Burn: Arcutis reported a cash burn from operations of $35 million in Q3 2024, indicating a significant ongoing expenditure despite revenue growth.
Rising SG&A Expenses: 2. Increased SG&A Expenses: Selling, general, and administrative expenses rose to $58.8 million in Q3 2024, up from $47.6 million in the same period last year, reflecting increased investment in commercial activities.
Commercial Revenue Dependence: 3. Dependence on Commercial Revenue: The majority of Q3 revenue was driven by commercial sales, with government payer contributions still in early stages, indicating a lack of diversification in revenue sources.
Medicare Coverage Delay: 4. Delayed Medicare Coverage: The company anticipates that Medicare coverage will not be secured until 2025, which could hinder revenue growth from a significant patient population in the interim.
Stocking Impact Analysis: 5. Stocking Impact Clarification: Management clarified that there was no significant stocking impact in Q3, suggesting that the impressive revenue growth may not be sustainable without continued demand.
ARQT FAQs
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ARQT Earning Call Sentiment
Arcutis Biotherapeutics, Inc. (ARQT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ARQT.O
-1.89%Positive
The earnings call presents a mixed outlook. Strong financial performance with a 452% YoY revenue increase is positive, but lack of guidance on key partnerships and shareholder returns is concerning. The Q&A reveals uncertainties, like the timing of Medicare coverage and the impact of the Kowa partnership. The market cap suggests moderate sensitivity to news, leading to a neutral prediction as positives are offset by uncertainties and lack of immediate shareholder return plans.
