Market Newsdesk

February 27, 2025 4:30 pm

Texas Community Bancshares, Inc. Authorizes New Stock Repurchase Program

PR Newswire

MINEOLA, Texas
, Feb. 27, 2025 /PRNewswire/ — Texas Community Bancshares, Inc. (the “Company”) (NASDAQ: TCBS), the holding company of Broadstreet Bank, SSB, announced that its Board of Directors has approved a new stock repurchase program that authorizes the Company to repurchase up to 153,083 shares, which equals approximately 5% of its outstanding common stock as of February 25, 2025. The Company also announced that as of February 25, 2025, it had repurchased over 85% of the 161,316 shares of its common stock authorized under the prior share repurchase program previously disclosed.

The Company intends to conduct any repurchases through open market purchases, including by means of a trading plan adopted under SEC Rule 10b5-1, or in privately negotiated transactions, subject to market conditions and other factors. There is no guarantee as to the exact number of shares that the Company may repurchase. Throughout the execution of this program, the Company is committed to retaining the financial flexibility it needs to invest in its core operations. The stock repurchase program may be suspended or discontinued at any time.

View original content to download multimedia:https://www.prnewswire.com/news-releases/texas-community-bancshares-inc-authorizes-new-stock-repurchase-program-302387660.html

SOURCE Texas Community Bancshares, Inc.

February 27, 2025 4:30 pm

TTEC Announces Fourth Quarter and Full Year 2024 Financial Results

PR Newswire

Fourth Quarter 2024

Revenue was $567.4 Million, down 9.4 Percent
Net Income was $4.6 Million or 0.8 Percent of Revenue
($9.0 Million or 1.6 Percent of Revenue Non-GAAP)
Adjusted EBITDA was $50.9 Million or 9.0 Percent of Revenue

Full Year 2024

Revenue was $2.208 Billion, down 10.4 Percent
Net Loss of $310.6 Million or negative 14.1 Percent of Revenue
(Net Income of $33.6 Million or 1.5 Percent of Revenue Non-GAAP)
Adjusted EBITDA was $202.3 Million or 9.2 Percent of Revenue

Provides Outlook for Full Year 2025

AUSTIN, Texas
, Feb. 27, 2025 /PRNewswire/ — TTEC Holdings, Inc. (NASDAQ: TTEC), a leading global CX (customer experience) technology and services innovator for AI-enabled CX with solutions from TTEC Engage and TTEC Digital, announced today financial results for the fourth quarter and full year ended December 31, 2024.

“2024 was a challenging transitional year for TTEC. However, we continued to advance our three top priorities, including enhancing our diversification strategy with an expanded geographic delivery footprint and client portfolio, broadening our end-to-end digital CX value proposition with differentiated, technology-enabled solutions, and achieving our goal of meeting or exceeding our historical growth and margin targets,” commented Ken Tuchman, chairman and chief executive officer of TTEC.

“With our strengthened leadership alongside the actions we have taken in the second half of the year, we are on our way to healthier financial performance in 2025 and beyond,” Tuchman continued.

FOURTH QUARTER 2024 FINANCIAL HIGHLIGHTS

Revenue

Fourth quarter 2024 GAAP revenue was $567.4 million, a 9.4 percent decrease compared to $626.2 million in the prior year.
Foreign exchange had a $2.1 million negative impact on revenue in the fourth quarter of 2024.

Income from Operations

Fourth quarter 2024 GAAP income from operations was $15.3 million, or 2.7 percent of revenue, compared to $16.9 million, or 2.7 percent of revenue in the prior year.
Non-GAAP income from operations, excluding restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, and other items, was $34.9 million, or 6.2 percent of revenue, compared to $41.8 million, or 6.7 percent of revenue in the prior year.
Foreign exchange had a $4.4 million positive impact on Non-GAAP income from operations in the fourth quarter 2024.

Adjusted EBITDA

Fourth quarter 2024 Non-GAAP Adjusted EBITDA was $50.9 million, or 9.0 percent of revenue, compared to $57.5 million, or 9.2 percent of revenue in the prior year.

Net Income (Loss) Per Share

Fourth quarter 2024 GAAP fully diluted net income per share was $0.10 compared to a fully diluted net loss per share of $0.17 in the prior year.
Non-GAAP fully diluted net income per share was $0.19 compared to $0.37 in the prior year.

FULL YEAR 2024 FINANCIAL HIGHLIGHTS

Revenue

Full year 2024 GAAP revenue was $2.208 billion, a 10.4 percent decrease compared to $2.463 billion in the prior year.
Foreign exchange had a $2.6 million negative impact on revenue for the full year 2024.

Income (Loss) from Operations

Full year 2024 GAAP loss from operations was $173.5 million, or negative 7.9 percent of revenue, compared to income from operations of $118.0 million, or 4.8 percent of revenue in the prior year. The significant decrease in operating income was primarily the result of a second quarter 2024 one-time non-cash pre-tax $196 million impairment charge related to the fair value of the TTEC Engage reporting unit, in addition to other factors.
Non-GAAP income from operations, excluding restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, and other items, was $136.5 million, or 6.2 percent of revenue, compared to $200.4 million, or 8.1 percent in the prior year.
Foreign exchange had a $7.2 million positive impact on Non-GAAP income from operations for the full year 2024.

Adjusted EBITDA

Full year 2024 Non-GAAP Adjusted EBITDA was $202.3 million, or 9.2 percent of revenue, compared to $271.5 million, or 11.0 percent of revenue in the prior year.

Net Income (Loss) Per Share

Full year 2024 GAAP fully diluted net loss per share was $6.52 compared to net income per share of $0.39 in the prior year.
Non-GAAP fully diluted net income per share was $0.71 compared to $2.18 in the prior year.

CASH FLOW AND BALANCE SHEET

Cash flow from operations in the fourth quarter of 2024 was a negative $1.1 million compared to a positive $31.5 million for the fourth quarter 2023. For the full year 2024, cash flow from operations was a negative $58.8 million compared to a positive $144.8 million for the same period 2023. The decline in 2024 cash flow from operations was primarily related to the discontinuation of the accounts receivable factoring facility in the third quarter, negatively impacting our cash flow by $101.2 million. Excluding the factoring facility impact, 2024 cash flow from operations was a positive $42.4 million.
Free cash flow in the fourth quarter of 2024 was a negative $9.8 million compared to a positive $18.4 million for the fourth quarter 2023. For the full year 2024, free cash flow was a negative $104.0 million compared to a positive $76.9 million for the same period in 2023. Excluding the factoring facility discontinuation impact of $101.2 million and including the proceeds from the sale of real estate of $45.5 million, 2024 free cash flow was a positive $42.7 million.
Capital expenditures in the fourth quarter 2024 were $8.7 million compared to $13.1 million for the fourth quarter 2023. For the full year 2024, capital expenditures were $45.2 million compared to $67.8 million for the same period 2023.
As of December 31, 2024, TTEC had cash and cash equivalents of $85.0 million and debt of $978.0 million, resulting in a net debt position of $893.0 million. This compares to a net debt position of $826.5 million for the same period 2023.
As of December 31, 2024, TTEC’s remaining borrowing capacity under its revolving credit facility was approximately $225 million compared to $90 million for the same period 2023.
On November 4, 2024, TTEC’s Board of Directors suspended the company’s semi-annual cash dividend as part of its ongoing shift to prioritize debt reduction. The cash dividend will continue to be suspended until further notice, as TTEC continues to focus on debt reduction and the Special Committee of the company’s Board of Directors is considering a potential take-private transaction proposed by TTEC’s founder and CEO.

SALE OF REAL ESTATE ASSET NOT USED IN OPERATIONS

On November 5, 2024, the company closed a sale of real estate asset in Englewood, Colorado for $45.5 million dollars, subject to customary adjustments. Prior to the COVID pandemic, the building was used as TTEC’s principal place of business. The company used the proceeds from the sale to reduce its outstanding balance under its revolving credit facility.

NEW PRINCIPAL PLACE OF BUSINESS

As part of our strategic review of our business priorities, we decided to designate our office in Austin, Texas as our new principal place of business. Texas has been an important part of TTEC’s operations for decades, and this move provides us with access to a business-friendly environment, a strong economy, a skilled workforce, and a dynamic technology and innovation hub. This change does not impact our 70+ other global locations, including our Denver Center for Experience and Innovation in Greenwood Village, Colorado. It also does not impact the jobs of those who are currently working in Colorado.

SEGMENT REPORTING & COMMENTARY

TTEC reports financial results for TTEC Digital and TTEC Engage business segments. Financial highlights for the two business segments are provided below.

TTEC Digital – Design, build and operate tech-enabled, insight-driven CX solutions

Fourth quarter 2024 GAAP revenue for TTEC Digital was $115.0 million, a decrease of 3.5 percent compared to $119.1 million in the year ago period. Income from operations was $6.9 million or 6.0 percent of revenue compared to an operating income of $10.0 million or 8.4 percent of revenue in the prior year.
Non-GAAP income from operations was $12.7 million, or 11.0 percent of revenue compared to operating income of $17.7 million or 14.8 percent of revenue in the prior year.

TTEC Engage – Technology-enabled customer care, acquisition, and fraud mitigation services

Fourth quarter 2024 GAAP revenue for TTEC Engage was $452.5 million, a 10.8 percent decrease from $507.1 million for the year ago period. Income from operations was $8.4 million or 1.9 percent of revenue compared to operating income of $6.9 million, or 1.4 percent of revenue in the prior year.
Non-GAAP income from operations was $22.3 million, or 4.9 percent of revenue, compared to operating income of $24.1 million, or 4.8 percent of revenue in the prior year.
Foreign exchange had a $2.0 million negative impact on revenue and a $4.4 million positive impact on income from operations.

BUSINESS OUTLOOK

“At the company level, our fourth quarter financial performance was in line with the most recent guidance expectations communicated last quarter, and we are particularly pleased with our Engage segment’s profitability improvement in the second half of the year,” commented Kenny Wagers, chief financial officer of TTEC. Wagers continued, “During 2024, we implemented several profit optimization initiatives within Engage and are confident our Digital segment will return to growth through our expanded suite of CX technology offerings, laying the foundation for margin improvements in 2025.”

TTEC Full Year 2025 Outlook
	Full Year 2025 Guidance	Full Year 2025 Mid-Point
Revenue	$2,014M — $2,064M	$2,039M
Non-GAAP adjusted EBITDA	$215M — $235M	$225M
Non-GAAP adjusted EBITDA margins	10.7% — 11.4%	11.0 %
Non-GAAP operating income	$154M — $174M	$164M
Non-GAAP operating income margins	7.6% — 8.4%	8.0 %
Interest expense, net	($75M) — ($79M)	($77M)
Non-GAAP adjusted tax rate	38% — 42%	40 %
Diluted share count	48.2M — 48.6M	48.4M
Non-GAAP earnings per a share	$0.95 — $1.20	$1.08


Engage Full Year 2025 Outlook
	Full Year 2025 Guidance	Full Year 2025 Mid-Point
Revenue	$1,556M — $1,586M	$1,571M
Non-GAAP adjusted EBITDA	$151M — $163M	$157M
Non-GAAP adjusted EBITDA margins	9.7% — 10.3%	10.0 %
Non-GAAP operating income	$101M — $113M	$107M
Non-GAAP operating income margins	6.5% — 7.1%	6.8 %


Digital Full Year 2025 Outlook
	Full Year 2025 Guidance	Full Year 2025 Mid-Point
Revenue	$458M — $478M	$468M
Non-GAAP adjusted EBITDA	$64M — $72M	$68M
Non-GAAP adjusted EBITDA margins	13.9% — 15.0%	14.5 %
Non-GAAP operating income	$53M — $61M	$57M
Non-GAAP operating income margins	11.5% — 12.7%	12.1 %

The company has not quantitatively reconciled its guidance for Non-GAAP operating income, Non-GAAP operating income margins, Non-GAAP adjusted EBITDA, Non-GAAP adjusted EBITDA margins, Non-GAAP adjusted tax rate, or Non-GAAP earnings per share to their respective most comparable GAAP measures because certain of the reconciling items that impact these metrics, including restructuring and impairment charges, equity-based compensation expense, changes in acquisition contingent consideration, depreciation and amortization expense, and provision for income taxes are dependent on the timing of future events outside of the Company’s control or cannot be reliably predicted. Accordingly, the Company is unable to provide reconciliations to GAAP operating income, operating income margins, EBITDA margins, and diluted earnings per share without unreasonable effort. Please note that the unavailable reconciling items could significantly impact the Company’s 2025 financial results as reported under GAAP.

NON-GAAP FINANCIAL MEASURES

This press release contains a discussion of certain Non-GAAP financial measures that the company includes to allow investors and analysts to measure, analyze and compare its financial condition and results of operations in a meaningful and consistent manner. A reconciliation of these Non-GAAP financial measures can be found in the tables accompanying this press release.

GAAP metrics are presented in accordance with Generally Accepted Accounting Principles.
Non-GAAP – As reflected in the attached reconciliation table, the definition of Non-GAAP may exclude from operating income, EBITDA, net income and earnings per share restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, among other items.

EARNINGS WEBCAST/CONFERENCE CALL

TTEC will host a live webcast and conference call at 8:30 a.m. ET on Friday, February 28, 2025. You are invited to join a live webcast of the conference call by visiting the “Investors Relations” section of the TTEC website at www.ttec.com. If you are unable to participate during the live webcast, a replay will be available on the TTEC website.

ABOUT
TTEC

TTEC (pronounced T-TEC) Holdings, Inc. (NASDAQ:TTEC) is a leading global CX (customer experience) technology and services innovator for AI-enabled digital CX solutions. Serving iconic and disruptive brands, TTEC’s outcome-based solutions span the entire enterprise, touch every virtual interaction channel, and improve each step of the customer journey. Leveraging next-gen digital technology, the Company’s TTEC Digital business designs, builds, and operates omnichannel contact center technology, CRM, AI and analytics solutions. The company’s TTEC Engage business delivers AI-enabled customer engagement, customer acquisition and growth, tech support, back office, and fraud prevention services. Founded in 1982, the company’s singular obsession with CX excellence has earned it leading client, customer, and employee satisfaction scores across the globe. The company’s employees operate on six continents and bring technology and humanity together to deliver happy customers and differentiated business results. To learn more visit us at https://www.ttec.com.

FORWARD-LOOKING STATEMENTS

This Earnings Press Release and related oral statements contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements relating to our operations, expected financial position, results of operation, effective tax rate, cash flow, leverage, liquidity, business strategy, profit improvement actions, competitive position, demand for our services in international operations, acquisition opportunities and impact of acquisitions, capital allocation and dividends, growth opportunities, spending, capital expenditures and investments, competition and market forecasts, industry trends, our human capital resources, and other business, operational and financial matters that are based on our current expectations, assumptions, and projections with respect to the future, and are not a guarantee of performance.

In this Release when we use words such as “may,” “believe,” “plan,” “will,” “anticipate,” “estimate,” “expect,” “intend,” “project,” “would,” “could,” “target,” or similar expressions, or when we discuss our strategy, plans, goals, initiatives, or objectives, we are making forward-looking statements. Unless otherwise indicated or except where the context otherwise requires, the terms “TTEC,” “the Company,” “we,” “us” and “our” and other similar terms in this report refer to TTEC Holdings, Inc. and its subsidiaries. We caution you not to rely unduly on any forward-looking statements. Actual results may differ materially from those expressed in the forward-looking statements, and you should review and consider carefully the risks, uncertainties, and other factors that affect our business and may cause such differences as outlined in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024 and any subsequent filings with the U.S. Securities and Exchange Commission (the “SEC”) which are available on TTEC’s website www.ttec.com, and on the SEC’s public website at www.sec.gov.

Our forward-looking statements speak only as of the date that this release is issued. We undertake no obligation to update them, except as may be required by applicable law. Although we believe that our forward-looking statements are reasonable, they depend on many factors outside of our control and we can provide no assurance that they will prove to be correct.

TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)


		Three months ended		Twelve months ended
		December 31,		December 31,
		2024	2023	2024	2023

Revenue		$ 567,437	$ 626,181	$ 2,207,587	$ 2,462,817

Operating Expenses:
	Cost of services	448,931	505,814	1,735,865	1,932,877
	Selling, general and administrative	73,161	74,744	293,042	290,873
	Depreciation and amortization	23,697	24,904	97,955	101,272
	Restructuring charges, net	3,806	3,145	10,152	8,041
	Impairment losses	2,549	650	244,093	11,733
Total operating expenses		552,144	609,257	2,381,107	2,344,796

Income / (Loss) From Operations		15,293	16,924	(173,520)	118,021

	Other income (expense), net	(2,424)	(21,988)	(62,997)	(77,297)

Income / (Loss) Before Income Taxes		12,869	(5,064)	(236,517)	40,724

	Provision for income taxes	(8,250)	(3,142)	(74,100)	(22,460)

Net Income / (Loss)		4,619	(8,206)	(310,617)	18,264

	Net income / (loss) attributable to noncontrolling interest	(2,618)	(1,694)	(10,348)	(9,836)

Net Income / (Loss) Attributable to TTEC Stockholders		$ 2,001	$ (9,900)	$ (320,965)	$ 8,428


Net Income / (Loss) Per Share

	Basic	$ 0.10	$ (0.17)	$ (6.52)	$ 0.39

	Diluted	$ 0.10	$ (0.17)	$ (6.52)	$ 0.39

Net Income / (Loss) Per Share Attributable to TTEC Stockholders

	Basic	$ 0.04	$ (0.21)	$ (6.74)	$ 0.18

	Diluted	$ 0.04	$ (0.21)	$ (6.74)	$ 0.18


Income / (Loss) From Operations Margin		2.7 %	2.7 %	(7.9) %	4.8 %
Net Income / (Loss) Income Margin		0.8 %	-1.3 %	(14.1) %	0.7 %
Net Income / (Loss) Attributable to TTEC Stockholders Margin		0.4 %	(1.6) %	(14.5) %	0.3 %
Effective Tax Rate		64.1 %	(62.0) %	(31.3) %	55.2 %


Weighted Average Shares Outstanding
Basic		47,736	47,425	47,614	47,335
Diluted		48,150	47,425	47,614	47,419

TTEC HOLDINGS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(In thousands)


	Three months ended		Twelve months ended
	December 31,		December 31,
	2024	2023	2024	2023

Revenue:
TTEC Digital	$ 114,950	$ 119,118	$ 459,018	$ 486,882
TTEC Engage	452,487	507,063	1,748,569	1,975,935
Total	$ 567,437	$ 626,181	$ 2,207,587	$ 2,462,817

Income / (Loss) From Operations
TTEC Digital	$ 6,921	$ 9,982	$ 23,691	$ 29,846
TTEC Engage	8,372	6,942	(197,211)	88,175
Total	$ 15,293	$ 16,924	$ (173,520)	$ 118,021

TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)

	December 31,	December 31,
	2024	2023

ASSETS
Current assets:
Cash and cash equivalents	$ 84,991	$ 172,747
Accounts receivable, net	452,573	394,868
Prepaids and other current assets	92,947	95,064
Income and other tax receivables	21,785	18,524
Total current assets	652,296	681,203

Property and equipment, net	132,051	191,003
Operating lease assets	91,263	121,574
Goodwill	571,197	808,988
Other intangibles assets, net	164,808	198,433
Income and other tax receivables, long-term	31,781	44,673
Other assets	109,984	139,724

Total assets	$ 1,753,380	$ 2,185,598

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$ 84,180	$ 96,577
Accrued employee compensation and benefits	137,636	146,184
Deferred revenue	64,752	81,171
Current operating lease liabilities	33,358	38,271
Other current liabilities	34,010	40,824
Total current liabilities	353,936	403,027

Long-term liabilities:
Line of credit	975,000	995,000
Non-current operating lease liabilities	71,008	96,809
Other long-term liabilities	85,317	75,220
Total long-term liabilities	1,131,325	1,167,029


Equity:
Common stock	477	474
Additional paid in capital	420,181	407,415
Treasury stock	(584,900)	(589,807)
Accumulated other comprehensive income (loss)	(132,121)	(89,876)
Retained earnings	546,617	870,429
Noncontrolling interest	17,865	16,907
Total equity	268,119	615,542

Total liabilities and equity	$ 1,753,380	$ 2,185,598

TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)


	Twelve months ended	Twelve months ended
	December 31,	December 31,
	2024	2023

Cash flows from operating activities:
Net (loss) income	$ (310,617)	$ 18,264
Adjustment to reconcile net (loss) income to net cash provided by operating activities :
Depreciation and amortization	97,955	101,272
Amortization of contract acquisition costs	1,995	2,288
Amortization of debt issuance costs	2,020	1,067
Imputed interest expense and fair value adjustments to contingent consideration	(1,496)	7,579
Provision for credit losses	3,596	2,009
Loss on disposal of assets	(13,281)	2,219
Impairment losses	244,093	11,733
Loss on dissolution of subsidiary		301
Deferred income taxes	58,530	(7,528)
Excess tax benefit from equity-based awards	4,352	1,705
Equity-based compensation expense	18,690	22,071
Loss / (gain) on foreign currency derivatives	384	(3)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(66,329)	22,359
Prepaids and other assets	(17,120)	8,570
Accounts payable and accrued expenses	(43,220)	9,518
Deferred revenue and other liabilities	(38,370)	(58,659)
Net cash provided by operating activities	(58,818)	144,765

Cash flows from investing activities:
Proceeds from sale of property, plant and equipment	45,650	261
Purchases of property, plant and equipment	(45,173)	(67,839)
Net cash used in investing activities	477	(67,578)

Cash flows from financing activities:
Net proceeds from / (repayments of) line of credit	(20,000)	35,000
Payments on other debt	(2,405)	(2,317)
Payments of contingent consideration and hold back payments to acquisitions		(37,676)
Dividends paid to shareholders	(2,847)	(49,232)
Payments to noncontrolling interest	(9,226)	(10,972)
Tax payments related to the issuance of restricted stock units	(1,014)	(3,037)
Payments of debt issuance costs	(2,804)	–
Net cash used in financing activities	(38,296)	(68,234)

Effect of exchange rate changes on cash and cash equivalents and restricted cash	7,723	(2,112)

(Decrease) in cash, cash equivalents and restricted cash	(88,914)	6,841
Cash, cash equivalents and restricted cash, beginning of period	173,905	167,064
Cash, cash equivalents and restricted cash, end of period	$ 84,991	$ 173,905


TTEC HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)


	Three months ended				Twelve months ended
	December 31,				December 31,
	2024	2023			2024	2023

Revenue	$ 567,437	$ 626,181			$ 2,207,587	$ 2,462,817

Reconciliation of Non-GAAP Income from Operations and EBITDA:

Net (Loss) / Income from Operations	$ 15,293	$ 16,924			$ (173,520)	$ 118,021
Restructuring charges, net	3,806	3,145			10,152	8,041
Impairment losses	2,549	650			244,093	11,733
Cybersecurity incident related impact, net of insurance recovery	–	–			–	(3,210)
Grant income for pandemic relief	–	–			–	40
Property costs not related to operations	(96)	757			2,233	1,501
Change in acquisition related obligation	–	–			–	483
Liability related to notifications triggered by labor scheme ⁽¹⁾	–	6,000			(187)	6,000
Fees related to non-binding offer	1,956	–			1,956	–
Equity-based compensation expenses	3,441	5,661			18,690	22,071
Amortization of purchased intangibles	7,986	8,676			33,039	35,759

Non-GAAP Income from Operations	$ 34,935	$ 41,813			$ 136,456	$ 200,439

Non-GAAP Income from Operations Margin	6.2 %	6.7 %			6.2 %	8.1 %

Depreciation and amortization	15,711	15,894			63,863	64,840
Changes in acquisition contingent consideration	–	616			(1,496)	7,480
Change in escrow balance related to acquisition	–	–			–	625
Loss on dissolution of subsidiary	–	–			–	301
Gain on property sale	(15,453)	–			(15,453)	–
Foreign SS Tax Recovery	–	–			(853)	–
Foreign VAT receivable write-off	–	–			770	–
Foreign exchange loss / (gain), net	(1,961)	1,112			420	1,950
Other Income (expense), net	17,633	(1,894)			18,586	(4,126)

Adjusted EBITDA	$ 50,865	$ 57,541			$ 202,293	$ 271,509

Adjusted EBITDA Margin	9.0 %	9.2 %			9.2 %	11.0 %

Reconciliation of Non-GAAP EPS:

Net (Loss) Income	$ 4,619	$ (8,206)			$ (310,617)	$ 18,264
Add: Asset impairment and restructuring charges	6,355	3,795			254,245	19,774
Add: Equity-based compensation expenses	3,441	5,661			18,690	22,071
Add: Amortization of purchased intangibles	7,986	8,676			33,039	35,759
Add: Cybersecurity incident related impact, net of insurance recovery	–	–			–	(3,210)
Add: Grant income for pandemic relief	–	–			–	40
Add: Change in acquisition related obligation	–	–			–	483
Add: Property costs not related to operations	(96)	757			2,233	1,501
Add: Fees related to non-binding offer	1,956	–			1,956	–
Add: Gain on sale of property	(15,453)	–			(15,453)	–
Add: Liability related to notifications triggered by labor scheme	–	6,000			(187)	6,000
Add: Foreign SS Tax Recovery	–	–			(853)	–
Add: Foreign VAT receivable write-off	–	–			770	–
Add: Changes in acquisition contingent consideration	–	616			(1,496)	7,480
Add: Changes in escrow balance related to acquisition	–	–			–	625
Add: Loss on dissolution of subsidiary	–	–			–	301
Add: Foreign exchange loss / (gain), net	(1,961)	1,112			420	1,950
Less: Changes in valuation allowance, return to provision adjustments and other, and tax effects of items separately disclosed above	2,108	(885)			50,860	(7,859)

Non-GAAP Net Income	$ 8,955	$ 17,526			$ 33,607	$ 103,179

Diluted shares outstanding	48,150	47,425			47,614	47,419

Non-GAAP EPS	$0.19	$0.37			$0.71	$2.18

Reconciliation of Free Cash Flow:

Cash Flow From Operating Activities:
Net (loss) / income	$ 4,619	$ (8,206)			$ (310,617)	$ 18,264
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	23,697	24,904			97,955	101,272
Other	(29,402)	14,836			153,844	25,229
Net cash provided by operating activities	(1,086)	31,534			(58,818)	144,765

Less – Total Cash Capital Expenditures	8,708	13,117			45,173	67,839

Free Cash Flow	$ (9,794)	$ 18,417			$ (103,991)	$ 76,926


^{(1) –} For further information, please see discussion in the Risk Factors section of the 2023 Form 10-K filed on February 29, 2024.

Reconciliation of Non-GAAP Income from Operations and Adjusted EBITDA by Segment :
	TTEC Engage		TTEC Digital		TTEC Engage		TTEC Digital
	Q4 24	Q4 23	Q4 24	Q4 23	YTD 24	YTD 23	YTD 24	YTD 23

Income / (Loss) from Operations	$ 8,372	$ 6,942	$ 6,921	$ 9,982	$ (197,213)	$ 88,175	$ 23,692	$ 29,846
Restructuring charges, net	3,394	1,823	412	1,322	9,091	4,250	1,062	3,791
Impairment losses	2,549	700	–	(50)	241,149	8,929	2,944	2,804
Cybersecurity incident related impact, net of insurance recovery	–	–	–	–	–	(3,210)	–	–
Grant income for pandemic relief	–	–	–	–	–	40	–	–
Property costs not related to operations	(96)	757	–	–	2,233	1,501	–	–
Fees related to non-binding offer	1,956	–	–	–	1,956		–
Change in acquisition related obligation	–	–	–	–	–	–	–	483
Liability related to notifications triggered by labor scheme	–	6,000	–	–	(187)	6,000	–	–
Equity-based compensation expenses	2,006	3,658	1,435	2,003	11,754	14,257	6,936	7,814
Amortization of purchased intangibles	4,088	4,264	3,898	4,412	16,394	18,215	16,645	17,544

Non-GAAP Income from Operations	$ 22,269	$ 24,144	$ 12,666	$ 17,669	$ 85,177	$ 138,157	$ 51,279	$ 62,282

Depreciation and amortization	12,780	13,458	2,931	2,436	52,629	55,153	11,234	9,688
Changes in acquisition contingent consideration	–	616		–	(1,496)	7,480	–	–
Change in escrow balance related to acquisition	–	–		–	–	625	–	–
Loss on dissolution of subsidiary	–	–		–	–	301	–	–
Foreign VAT receivable write-off	–	–		–	770	–	–
Foreign SS Tax Recovery	–	–		–	(853)	–	–
Gain on property sale	(15,453)				(15,453)
Foreign exchange loss / (gain), net	(1,724)	1,271	(237)	(159)	794	2,085	(375)	(135)
Other Income (expense), net	17,478	(1,728)	155	(166)	18,311	(4,060)	276	(67)

Adjusted EBITDA	$ 35,350	$ 37,761	$ 15,515	$ 19,780	$ 139,879	$ 199,741	$ 62,414	$ 71,768

Corporate Comms	Investor Relations
Meredith Matthews	Robert Belknapp
[email protected]	[email protected]

View original content to download multimedia:https://www.prnewswire.com/news-releases/ttec-announces-fourth-quarter-and-full-year-2024-financial-results-302387939.html

SOURCE TTEC Holdings, Inc.

February 27, 2025 4:30 pm

Verra Mobility Announces Fourth Quarter and Full Year 2024 Financial Results

PR Newswire

Full year 2024 revenue of $879.2 million
Full year 2024 net income of $31.4 million
Full year 2024 net cash provided from operations of $223.6 million
Establishing fiscal year 2025 guidance

MESA, Ariz.
, Feb. 27, 2025 /PRNewswire/ — Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today the financial results for the fourth quarter and full year ended December 31, 2024.

“We delivered a solid fourth quarter, highlighted by strong earnings and cash flow generation,” said David Roberts, President and CEO, Verra Mobility. “Resilient fourth quarter travel demand drove continued strength in Commercial Services and increased demand for automated traffic enforcement drove solid performance in Government Solutions. Our business fundamentals are strong and intact. Travel demand appears resilient and is expected to be a source of ongoing strength for Commercial Services. We expect that our strong sales bookings in Government Solutions will drive solid revenue growth over the foreseeable future and, we expect our Parking Solutions business to exit 2025 on a strong run-rate. Based on these factors, we anticipate that our long-term outlook remains intact relative to the 2026 Revenue and Adjusted EBITDA targets that we provided at our July 2022 Investor Day.”

Fourth Quarter 2024 Financial Highlights

Revenue: Total revenue for the fourth quarter of 2024 was $221.5 million, an increase of 5% compared to $211.0 million for the fourth quarter of 2023. Service revenue growth was 4%, driven by 4% growth in our Commercial Services segment and 5% growth from our Government Solutions segment. Commercial Services revenue growth was due to increases in travel volume, product adoption and tolling activity, and the growth in Government Solutions service revenue was driven by the expansion of school bus stop arm, bus lane and maintenance programs. Parking Solutions service revenue declined by $0.7 million, or 4% compared to the fourth quarter of 2023, as increased revenue from software as a service product offerings was offset by reduction in professional services revenue related to parking management solutions.
Net (loss) income and Earnings Per Share (EPS): Net loss for the fourth quarter of 2024 was $(66.7) million, or $(0.41) per share, based on 163.3 million diluted weighted average shares outstanding. Net income for the comparable 2023 period was $3.0 million, or $0.02 per share, based on 168.6 million diluted weighted average shares outstanding. The net loss for the fourth quarter of 2024 is primarily attributable to an impairment loss of $97.1 million as a result of our 2024 impairment assessment of goodwill in our Parking Solutions segment.
Adjusted EPS*: Adjusted EPS for the fourth quarter of 2024 was $0.33 per share compared to $0.24 per share for the fourth quarter of 2023.
Adjusted EBITDA*: Adjusted EBITDA was $102.0 million for the fourth quarter of 2024 compared to $91.3 million for the same period last year. Adjusted EBITDA margin was 46% and 43% of total revenue for 2024 and 2023, respectively.
Net Cash Provided from Operations: Cash provided by operating activities increased by approximately $4.8 million from $35.7 million for the three months ended December 31, 2023 to $40.5 million for the three months ended December 31, 2024 due primarily to increased revenue, lower selling and general expenses and changes in deferred income taxes offset by changes in working capital, mainly related to accrued liabilities.
Free Cash Flow*: Free Cash Flow was $21.6 million for the fourth quarter of 2024 compared to $19.2 million for the same period last year.

*Non-GAAP measure; refer to “Non-GAAP Financial Measures” further below for explanatory notes and a reconciliation to the most directly comparable GAAP measure.

We report our results of operations based on three operating segments:

Commercial Services offers automated toll and violations management and title and registration solutions to rental car companies, fleet management companies and other large fleet owners.
Government Solutions delivers automated safety solutions to municipalities, school districts and government agencies, including services and technology that enable photo enforcement cameras to detect and process traffic violations related to speed, red-light, school bus and city bus lane management.
Parking Solutions provides an integrated suite of parking software, transaction processing and hardware solutions to universities, municipalities, parking operators, healthcare facilities and transportation hubs in the United States and Canada.

Fourth Quarter 2024 Segment Detail

The Commercial Services segment generated total revenue of $98.7 million, a 4% increase compared to $94.5 million in the same period in 2023. Segment profit was $64.6 million, a 4% increase from $62.2 million in the prior year period. The increases in revenue and segment profit compared to the prior year period resulted from increased travel volume as well growth in revenue contributed from processing violations, titles and registrations and higher tolling activity for our fleet management customers. The segment profit margin was 65% for the fourth quarter of 2024 and 66% for the fourth quarter of 2023.
The Government Solutions segment generated total revenue of $103.2 million, a 10% increase compared to $94.0 million in the same period in 2023. The increase was due to a 5% increase in recurring service revenue over the prior year quarter, primarily driven by the expansion of school bus stop arm, bus lane and maintenance programs. In addition, product revenue increased approximately $4.7 million from the prior year period. The segment profit was $34.6 million in 2024 compared to $24.1 million in the prior year period with segment profit margins of 34% for 2024 and 26% for 2023. The increase in segment profit was primarily attributable to a $3.9 million write-down of installation and service parts in the fourth quarter of 2023 that did not occur in the 2024 period as well as lower credit loss expense in the fourth quarter of 2024 as compared to the prior year period.
The Parking Solutions segment generated total revenue of $19.7 million, a 13% decrease compared to $22.5 million in the same period in 2023 due to a reduction in service revenue and a decrease in one-time product sales compared to the prior year quarter. The segment profit was $2.8 million compared to $5.0 million in the prior year period with segment profit margins of 14% for 2024 and 22% for 2023. The decrease in segment profit was primarily due to lower revenue and an increase in selling and general expenses.

Full Year 2024 Financial Highlights

Revenue: Total revenue for the fiscal year 2024 was $879.2 million, an increase of 8% compared to $817.3 million for fiscal year 2023. Service revenue growth was 7%, driven by 9% growth in Commercial Services segment and 7% growth from our Government Solutions segment. Commercial Services revenue growth was due to increases in travel volume, product adoption and tolling activity, and the growth in Government Solutions service revenue was driven by the expansion of speed, maintenance and bus lane programs. Parking Solutions service revenue declined by $0.7 million, or 1% compared to fiscal year 2023, as increased revenue from software as a service product offerings was offset by reduction in professional services related to parking management solutions.
Net income and Earnings Per Share (EPS): Net income for fiscal year 2024 was $31.4 million, or $0.19 per share, based on 167.7 million diluted weighted average shares outstanding. Net income for the comparable 2023 period was $57.0 million, or $0.36 per share, based on 160.0 million diluted weighted average shares outstanding. The $25.6 million decrease in net income was primarily due to the impairment to goodwill in our Parking Solutions segment recorded in fiscal year 2024, partially offset by the change in fair value of the private placement warrants liability in the prior fiscal year without a comparable amount in fiscal year 2024.
Adjusted EPS*: Adjusted EPS for fiscal year 2024 was $1.23 per share compared to $1.08 per share for fiscal year 2023.
Adjusted EBITDA*: Adjusted EBITDA was $401.6 million for fiscal year 2024 compared to $371.5 million for the same period last year. Adjusted EBITDA margin was 46% and 45% of total revenue for 2024 and 2023, respectively.
Net Cash Provided from Operations: Cash provided by operating activities increased by approximately $17.5 million from $206.1 million for fiscal year 2023 to $223.6 million for fiscal year 2024. This was primarily from increased revenue, lower expenses from interest and change in the fair value of private placement warrants, changes in deferred income taxes and lower accounts receivables year over year partially offset by decreases in other working capital changes, mainly related to accrued liabilities.
Free Cash Flow*: Free Cash Flow was $152.8 million for fiscal year 2024 compared to $149.1 million for the same period last year. Free Cash Flow for fiscal year 2024 includes an after-tax legal settlement cost of approximately $22.1 million.

Liquidity: As of December 31, 2024, cash and cash equivalents were $77.6 million, and we generated $223.6 million in net cash provided by operating activities for the year ended December 31, 2024.

Net Debt and Net Leverage*: As of December 31, 2024, Net Debt was $968.0 million and Net Leverage was 2.4x, as compared to $918.3 million and 2.5x as of December 31, 2023.

*Non-GAAP measure; refer to “Non-GAAP Financial Measures” further below for explanatory notes and a reconciliation to the most directly comparable GAAP measure.

Share Repurchases
In October 2023, our Board of Directors authorized a share repurchase program for up to an aggregate amount of $100.0 million of our outstanding shares of Class A Common Stock over an 18-month period in open market, accelerated share repurchase (“ASR”) or privately negotiated transactions. In June 2024, we entered into a share repurchase agreement with a stockholder, pursuant to which we repurchased, directly from the stockholder, 2.0 million shares of our Class A Common Stock for an aggregate purchase price of $51.5 million. During the fourth quarter of 2024, we repurchased approximately 1.5 million shares through open market transactions and paid $35.8 million. In December 2024, our Board of Directors increased the authorization to repurchase up to an additional $100 million of our shares under the existing October 2023 program, providing us with approximately $112.7 million available for repurchases. On December 11, 2024, we entered into an ASR agreement with a third-party financial institution and paid $112.7 million to receive an initial delivery of 3,821,958 shares of our Class A Common Stock. The final settlement is expected to occur in the first quarter of 2025, at which time, we expect to receive additional shares calculated using a volume-weighted average price over the term of the ASR agreement. We paid a total of $200.0 million for share repurchases during fiscal year 2024. All repurchased shares were subsequently retired.

Cancellation of the Interest Rate Swap
We exercised our option to cancel our interest rate swap agreement, effective the end of the third quarter of 2024. The interest rate swap was previously used to hedge our exposure to higher interest rates associated with the variable portion of the interest rate on our term loan.

Goodwill Impairment
We recorded a $97.1 million impairment to goodwill in our Parking Solutions segment during fiscal year 2024, which is presented in a separate line item on the consolidated statements of operations. This impairment was in connection with our 2024 assessment of goodwill where the Parking Solutions reporting unit’s carrying value exceeded the estimated fair value.

Term Loan Refinancing
In February 2024, we entered into a third amendment and in October 2024, a fourth amendment to refinance our term loan. Pursuant to these amendments, the interest rate on the term loan was reduced by an aggregate 1.00% to Secured Overnight Financing Rate (“SOFR”) plus 2.25% from SOFR plus 3.25% with the SOFR floor unchanged at 0.00%. The credit spread adjustment in the term loan, ranging from approximately 0.1% to 0.7%, was eliminated. In addition, the term loan agreement was amended to no longer require the repayment of principal in quarterly installments, with principal now required to be repaid at maturity in fiscal year 2028.

2025 Full Year Guidance
Any guidance that we provide is subject to change as a variety of factors can affect actual operating results. Certain of the factors that may impact our actual operating results are identified below in the safe harbor language included within Forward-Looking Statements of this press release.

We are providing the following forward-looking guidance, which includes Adjusted EBITDA, Adjusted EPS, Free Cash Flow, and Net Leverage, all of which are non-GAAP financial measures (defined below):

Total Revenue of $925 million to $935 million
Adjusted EBITDA of $410 million to $420 million
Adjusted EPS of $1.30 to $1.35
Free Cash Flow of $175 million to $185 million
Net Leverage of approximately 2.0x

Underlying Assumptions for 2025 Full Year Guidance

Weighted average fully diluted share count expected to be approximately 163 million shares for the full year 2025
Effective tax rate (including state taxes) is expected to be 28.5% to 29.5%, with approximately $65 million in total cash taxes expected to be paid in 2025. The effective tax rate for Non-GAAP adjustments is provided in the Reconciliation of Net (Loss) Income to Adjusted Net Income and Calculation of Adjusted EPS
Depreciation and amortization expense expected to be approximately $110 million for 2025
Total interest expense, net expected to be approximately $70 million, of which approximately $65 million is expected to be net cash interest paid
Change in working capital (change in operating assets and liabilities) is expected to result in a use of cash of approximately $15 million for 2025
Capital expenditures (purchases of installation and service parts and property and equipment) are expected to be approximately $90 million for 2025

Conference Call Details

Date:
February 27, 2025

Time:
5:00 p.m. Eastern Time

To access this conference call by telephone, register

here

to receive dial-in numbers and a unique PIN to join the call.

Webcast Information: Available live in the “Investor Relations” section of our website at http://ir.verramobility.com.

A replay of the call will also be made available on the Investor Relations website. A copy of the earnings call presentation will be posted to our website.

About Verra Mobility
Verra Mobility is a leading provider of smart mobility technology solutions that make transportation safer, smarter and more connected. We sit at the center of the mobility ecosystem, bringing together vehicles, hardware, software, data and people to enable safe, efficient solutions for customers globally. Our transportation safety systems and parking management solutions protect lives, improve urban and motorway mobility and support healthier communities. We also solve complex payment, utilization and compliance challenges for fleet owners and rental car companies. We are headquartered in Arizona, and operate in North America, Europe, Asia and Australia. For more information, please visit www.verramobility.com.

Forward-Looking Statements
This press release contains forward-looking statements which address our expected future business and financial performance, and may contain words such as “goal,” “target,” “future,” “estimate,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “project,” “may,” “should,” “will” or similar expressions. Forward-looking statements include statements regarding changes and trends in the market for our products and services, including expected resilience of travel demand and impact on our Commercial Services segment, expected strong sales bookings in our Government Solutions segment and a strong run-rate in our Parking Solutions segment, expected operating results and metrics, such as revenue growth, expansion plans and opportunities, 2025 full year guidance, including expected total revenue, Adjusted EBITDA, Adjusted EPS, Free Cash Flow and Net Leverage, the underlying assumptions for the 2025 full year guidance, including expected weighted average fully-diluted share count, effective tax rate and cash taxes, expected depreciation and amortization, expected interest expense, net and total net cash interest, expected change in working capital and expected capital expenditures, and our ability to meet our long-term outlook, including 2026 revenue and Adjusted EBITDA targets. Forward-looking statements involve risks and uncertainties and a number of factors could cause actual results to differ materially from those currently anticipated. These factors include, but are not limited to, the impact of negative industry and macroeconomic conditions on our customers or the Company; customer concentration in our Commercial Services and Government Solutions segments including risks impacting such segments, including travel demand and legislation; risks related to our contract with the New York City Department of Transportation, which comprises a material portion of our revenue and was extended through December 31, 2025, including risks related to winning the competitive procurement process for a new contract or if we win the competitive procurement at materially different terms and pricing as our current contract; our reliance on specialized third-party providers; risks and uncertainties related to our government contracts, including legislative changes, termination rights, delays in payments, audits and investigations; decreases in the prevalence or political acceptance of, or an increase in governmental restrictions regarding, automated and other similar methods of photo enforcement, parking solutions or the use of tolling; our ability to successfully implement our acquisition strategy or integrate acquisitions; failure in or breaches of our networks or systems, including as a result of cyber-attacks or other incidents; risks and uncertainties related to our international operations/our ability to develop and successfully market new products and technologies into new markets; our failure to acquire necessary intellectual property or adequately protect our intellectual property; our ability to manage our substantial level of indebtedness; our ability to maintain an effective system of internal controls; our ability to properly perform under our contracts and otherwise satisfy our customers; decreased interest in outsourcing from our customers; our ability to keep up with technological developments and changing customer preferences; our ability to compete in a highly competitive and rapidly evolving market; risks and uncertainties related to our share repurchase program; risks and uncertainties related to litigation, disputes and regulatory investigations; our reliance on specialized third-party vendors and service providers; and other risks and uncertainties indicated from time to time in documents we filed or will file with the Securities and Exchange Commission (the “SEC”). In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved. This press release should be read in conjunction with the information included in our other press releases, reports and other filings with the SEC. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2024 Annual Report on Form 10-K. These forward-looking statements speak only as of the date of this release and except to the extent required by applicable law, we do not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise. Understanding the information contained in these filings is important in order to fully understand our reported financial results and our business outlook for future periods.

Additional Information
We periodically provide information for investors on our corporate website, www.verramobility.com, and our investor relations website, ir.verramobility.com.

We intend to use our website including our quarterly earnings presentation as a means of disclosing material non-public information, additional financial and operating metrics and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings and public conference calls and webcasts.

Non-GAAP Financial Measures
In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), we also disclose certain non-GAAP financial information in this press release. These financial measures are not recognized measures under GAAP and are not intended to be, and should not be, considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income, Adjusted EPS, Adjusted EBITDA Margin, Net Debt, and Net Leverage are non-GAAP financial measures as defined by SEC rules. These non-GAAP financial measures may be determined or calculated differently by other companies. As a result, they may not be comparable to similarly titled performance measures presented by other companies. Reconciliations of these non-GAAP measurements to the most directly comparable GAAP financial measurements have been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliations.

We are not providing a quantitative reconciliation of Adjusted EBITDA, Adjusted EPS, Free Cash Flow or Net Leverage which are included in our 2025 financial guidance above, in reliance on the “unreasonable efforts” exception for forward-looking non-GAAP measures set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated without unreasonable effort and expense. In this regard, we are unable to provide a reconciliation of forward-looking Adjusted EBITDA to GAAP net (loss) income, Adjusted EPS to net (loss) income per share, Free Cash Flow to net cash provided by operating activities and Net Leverage, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Due to the uncertainty of estimates and assumptions used in preparing forward-looking non-GAAP measures, we caution investors that actual results could differ materially from these non-GAAP financial projections.

We use the non-GAAP metrics EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income, Adjusted EPS, Adjusted EBITDA Margin to measure our performance from period to period, to evaluate and fund incentive compensation programs and to compare our results to those of our competitors. We use the non-GAAP metrics Free Cash Flow in connection with managing the business and we use the non-GAAP metrics “Net Debt” and “Net Leverage” to understand our overall leverage position and to evaluate capital allocation decisions. In addition, we also believe that these non-GAAP measures provide useful information to investors regarding financial and business trends related to our results of operations and that when non-GAAP financial information is viewed with GAAP financial information, investors are provided with a more meaningful understanding of our ongoing operating performance, liquidity and leverage relative to other periods. These non-GAAP measures have certain limitations as analytical tools and should not be used as substitutes for net (loss) income, cash flows from operations, earnings per share, other consolidated income, cash flow or debt data prepared in accordance with GAAP.

EBITDA and Adjusted EBITDA
We define “EBITDA” as net (loss) income adjusted to exclude interest expense, net, income taxes, depreciation and amortization. “Adjusted EBITDA” further excludes certain non-cash expenses and non-recurring items.

Free Cash Flow
We define “Free Cash Flow” as net cash flow provided by operating activities less purchases of installation and service parts and property and equipment.

Adjusted Net Income
We define “Adjusted Net Income” as net (loss) income adjusted to exclude amortization of intangibles and certain non-cash or non-recurring expenses such as change in fair value of private placement warrants, change in fair value of interest rate swap, loss on extinguishment of debt, among other items.

Adjusted EPS
We define “Adjusted EPS” as Adjusted Net Income divided by the diluted weighted average shares for the period.

Adjusted EBITDA Margin
We define “Adjusted EBITDA Margin” as Adjusted EBITDA as a percentage of total revenue.

Net Debt
We define “Net Debt” as total long-term debt (including current portion of long-term debt) excluding original issue discounts and unamortized deferred financing costs, less cash and cash equivalents.

Net Leverage
We define “Net Leverage” as Net Debt divided by the trailing twelve months Adjusted EBITDA as of the current quarter-end.

Additional Metrics

Recurring Revenue or Recurring Service Revenue
We define “Recurring Revenue” or “Recurring Service Revenue” as all revenue other than product sales for each of our segments, as we typically generate revenue on a recurring monthly basis under long-term contracts with our customers. This includes our Commercial Services segment where we generate service revenue through processing of tolls, violations, and titles and registrations.

VERRA MOBILITY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

	December 31,
(In thousands, except per share data)	2024		2023
Assets
Current assets:
Cash and cash equivalents	$	77,560	$	136,309
Restricted cash		3,594		3,413
Accounts receivable (net of allowance for credit losses of $17.0 million and $18.5 million at December 31, 2024 and 2023, respectively)		206,503		197,824
Unbilled receivables		48,193		37,065
Inventory		15,502		17,966
Prepaid expenses and other current assets		42,647		46,961
Total current assets		393,999		439,538
Installation and service parts, net		36,631		22,895
Property and equipment, net		141,601		123,248
Operating lease assets		29,895		33,523
Intangible assets, net		232,297		301,025
Goodwill		735,615		835,835
Other non-current assets		44,451		33,919
Total assets	$	1,614,489	$	1,789,983
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	91,224	$	78,749
Deferred revenue		29,374		28,788
Accrued liabilities		73,980		93,119
Tax receivable agreement liability, current portion		5,163		5,098
Current portion of long-term debt		—		9,019
Total current liabilities		199,741		214,773
Long-term debt, net of current portion		1,034,211		1,029,113
Operating lease liabilities, net of current portion		25,757		29,124
Tax receivable agreement liability, net of current portion		42,977		48,369
Asset retirement obligations		15,493		14,580
Deferred tax liabilities, net		14,699		18,360
Other long-term liabilities		16,486		14,197
Total liabilities		1,349,364		1,368,516
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.0001 par value		—		—
Common stock, $0.0001 par value		16		17
Additional paid-in capital		551,955		557,513
Accumulated deficit		(269,287)		(125,887)
Accumulated other comprehensive loss		(17,559)		(10,176)
Total stockholders’ equity		265,125		421,467
Total liabilities and stockholders’ equity	$	1,614,489	$	1,789,983

VERRA MOBILITY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Unaudited)

	Three Months Ended December 31,				Year Ended December 31,
(In thousands, except per share data)	2024		2023		2024		2023
Service revenue	$	209,671	$	201,818	$	841,676	$	783,595
Product sales		11,829		9,195		37,531		33,715
Total revenue		221,500		211,013		879,207		817,310
Cost of service revenue, excluding depreciation and amortization		4,664		4,514		18,988		18,232
Cost of product sales		8,303		7,022		27,058		25,231
Operating expenses		74,368		76,915		295,937		273,288
Selling, general and administrative expenses		52,622		73,056		195,054		198,550
Depreciation, amortization and (gain) loss on disposal of assets, net		27,857		26,177		109,072		113,195
Goodwill impairment		97,076		—		97,076		—
Total costs and expenses		264,890		187,684		743,185		628,496
(Loss) income from operations		(43,390)		23,329		136,022		188,814
Interest expense, net		16,699		20,859		73,902		86,701
Change in fair value of private placement warrants		—		—		—		24,966
Tax receivable agreement liability adjustment		(257)		(3,077)		(257)		(3,077)
Loss on interest rate swap		—		2,764		494		817
Loss on extinguishment of debt		1,117		—		1,745		3,533
Other income, net		(5,000)		1,643		(18,970)		(11,123)
Total other expenses		12,559		22,189		56,914		101,817
(Loss) income before income taxes		(55,949)		1,140		79,108		86,997
Income tax provision (benefit)		10,707		(1,882)		47,660		29,982
Net (loss) income	$	(66,656)	$	3,022	$	31,448	$	57,015
Other comprehensive (loss) income:
Change in foreign currency translation adjustment		(10,747)		6,250		(7,383)		2,689
Total comprehensive (loss) income	$	(77,403)	$	9,272	$	24,065	$	59,704
Net (loss) income per share:
Basic	$	(0.41)	$	0.02	$	0.19	$	0.36
Diluted	$	(0.41)	$	0.02	$	0.19	$	0.36
Weighted average shares outstanding:
Basic		163,342		166,437		165,090		158,777
Diluted		163,342		168,585		167,717		160,017

VERRA MOBILITY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Three Months Ended December 31,
($ in thousands)	2024		2023
Cash Flows from Operating Activities:
Net (loss) income	$	(66,656)	$	3,022
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		27,543		26,232
Amortization of deferred financing costs and discounts		669		1,079
Tax receivable agreement liability adjustment		(257)		(3,077)
Change in fair value of interest rate swap		—		3,041
Loss on extinguishment of debt		1,117		—
Credit loss expense		1,577		1,501
Deferred income taxes		(8,328)		(19,801)
Stock-based compensation		4,372		5,130
Goodwill impairment		97,076		—
Impairment of long-lived assets and ROU assets		170		4,280
Other		654		53
Changes in operating assets and liabilities:
Accounts receivable		(14,773)		(6,605)
Unbilled receivables		1,925		3,277
Inventory		1,406		2,209
Prepaid expenses and other assets		9,349		(5,109)
Deferred revenue		(170)		(5,875)
Accounts payable and other current liabilities		(9,825)		23,453
Other liabilities		(5,362)		2,920
Net cash provided by operating activities		40,487		35,730
Cash Flows from Investing Activities:
Cash receipts for interest rate swap		—		277
Purchase of intellectual property		—		(500)
Purchases of installation and service parts and property and equipment		(18,847)		(16,484)
Cash proceeds from the sale of assets		158		110
Net cash used in investing activities		(18,689)		(16,597)
Cash Flows from Financing Activities:
Borrowings on long-term debt		36,591		—
Repayment of long-term debt		(41,101)		(2,255)
Payment of debt issuance costs		(276)		(97)
Share repurchases and retirement		(148,479)		—
Proceeds from exercise of stock options		1,587		3,074
Payment of employee tax withholding related to RSUs and PSUs vesting		(175)		(65)
Net cash (used in) provided by financing activities		(151,853)		657
Effect of exchange rate changes on cash and cash equivalents		(2,004)		1,602
Net (decrease) increase in cash, cash equivalents and restricted cash		(132,059)		21,392
Cash, cash equivalents and restricted cash – beginning of period		213,213		118,330
Cash, cash equivalents and restricted cash – end of period	$	81,154	$	139,722

VERRA MOBILITY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	For the Year Ended December 31,
($ in thousands)	2024		2023
Cash Flows from Operating Activities:
Net income	$	31,448	$	57,015
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		108,525		113,067
Amortization of deferred financing costs and discounts		4,106		4,679
Change in fair value of private placement warrants		—		24,966
Tax receivable agreement liability adjustment		(257)		(3,077)
Change in fair value of interest rate swap		1,316		(320)
Loss on extinguishment of debt		1,745		3,533
Credit loss expense		13,002		9,054
Deferred income taxes		(10,012)		(27,037)
Stock-based compensation		22,958		17,476
Goodwill impairment		97,076		—
Impairment of long-lived assets and ROU assets		170		4,280
Other		1,403		359
Changes in operating assets and liabilities:
Accounts receivable		(22,664)		(42,459)
Unbilled receivables		(11,987)		(6,252)
Inventory		1,917		1,148
Prepaid expenses and other assets		5,926		(2,161)
Deferred revenue		1,231		(2,400)
Accounts payable and other current liabilities		(16,425)		50,512
Other liabilities		(5,836)		3,718
Net cash provided by operating activities		223,642		206,101
Cash Flows from Investing Activities:
Cash receipts (payments) for interest rate swap		822		(1,137)
Purchase of intellectual property		—		(500)
Purchases of installation and service parts and property and equipment		(70,856)		(56,985)
Cash proceeds from the sale of assets		314		332
Net cash used in investing activities		(69,720)		(58,290)
Cash Flows from Financing Activities:
Borrowings on long-term debt		36,591		—
Repayment of long-term debt		(45,610)		(181,519)
Payment of debt issuance costs		(716)		(459)
Proceeds from the exercise of warrants		—		161,408
Share repurchases and retirement		(199,979)		(100,000)
Proceeds from exercise of stock options		4,288		5,919
Payment of employee tax withholding related to RSUs and PSUs vesting		(6,001)		(3,142)
Net cash used in financing activities		(211,427)		(117,793)
Effect of exchange rate changes on cash and cash equivalents		(1,063)		589
Net (decrease) increase in cash, cash equivalents and restricted cash		(58,568)		30,607
Cash, cash equivalents and restricted cash – beginning of period		139,722		109,115
Cash, cash equivalents and restricted cash – end of period	$	81,154	$	139,722

VERRA MOBILITY CORPORATION RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA (Unaudited)

	Three Months Ended December 31,						For the Year Ended December 31,
($ in thousands)	2024			2023			2024			2023
Net (loss) income	$	(66,656)		$	3,022		$	31,448		$	57,015
Interest expense, net		16,699			20,859			73,902			86,701
Income tax provision (benefit)		10,707			(1,882)			47,660			29,982
Depreciation and amortization		27,543			26,232			108,525			113,067
EBITDA		(11,707)			48,231			261,535			286,765
Transaction and other related expenses ⁽ⁱ⁾		1,245			145			5,369			629
Transformation expenses ⁽ⁱⁱ⁾		1,892			935			4,444			3,241
Change in fair value of private placement warrants ⁽ⁱⁱⁱ⁾		—			—			—			24,966
Legal accrual/settlement ^(iv)		8,250			31,500			8,250			31,500
Tax settlement payment related to a prior acquisition^(v)		—			5,652			—			5,652
Goodwill impairment ^(vi)		97,076			—			97,076			—
Tax receivable agreement liability adjustment ^(vii)		(257)			(3,077)			(257)			(3,077)
Loss on interest rate swap ^(viii)		—			2,764			494			817
Loss on extinguishment of debt ^(ix)		1,117			—			1,745			3,533
Stock-based compensation ^(x)		4,372			5,130			22,958			17,476
Adjusted EBITDA	$	101,988		$	91,280		$	401,614		$	371,502

Adjusted EBITDA Margin		46	%		43	%		46	%		45	%

(i)	Transaction and other related expenses for the three months and the year ended December 31, 2024 primarily related to deal costs incurred for potential acquisitions and debt modification costs related to the February and October 2024 refinancings on our First Lien term loan.
(ii)	Transformation expenses consist of severance and other employee separation costs related to exit activities initiated during each respective period.
(iii)	This is related to adjustments to the private placement warrants liability from the re-measurement to fair value at the end of the reporting period.
(iv)	This relates to accruals for estimated loss contingencies as well as settlements for any legal proceedings.
(v)	This consists of a tax settlement adjustment related to an acquisition that was completed in 2018.
(vi)	This relates to the impairment of goodwill in our Parking Solutions segment further discussed above
(vii)	This consists of adjustments made to our Tax Receivable Agreement liability due to changes in estimates.
(viii)	Loss on interest rate swap was associated with the derivative instrument re-measured to fair value at the end of each reporting period offset by the related monthly cash receipts/payments.
(ix)	Loss on extinguishment of debt consists of the write-off of pre-existing original issue discounts and deferred financing costs associated with the refinancing of our debt for the three months and the year ended December 31, 2024 and from the early repayments of debt for the year ended December 31, 2023.
(x)	Stock-based compensation represents the non-cash charge related to the issuance of awards under the Verra Mobility Corporation Amended and Restated 2018 Equity Incentive Plan.

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (Unaudited)

	Three Months Ended December 31,				For the Year Ended December 31,
($ in thousands)	2024		2023		2024		2023
Net cash provided by operating activities	$	40,487	$	35,730	$	223,642	$	206,101
Purchases of installation and service parts and property and equipment		(18,847)		(16,484)		(70,856)		(56,985)
Free Cash Flow ⁽¹⁾	$	21,640	$	19,246	$	152,786	$	149,116

(1)	Free Cash Flow for the year ended December 31, 2024 includes an after-tax legal settlement cost of approximately $22.1 million. The annual estimated effective tax rate to calculate the income tax effect on the legal settlement adjustment is 30.0%.

RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED NET INCOME AND CALCULATION OF ADJUSTED EPS (Unaudited)

	Three Months Ended December 31,						For the Year Ended December 31,
(In thousands, except per share data)	2024			2023			2024			2023
Net (loss) income	$	(66,656)		$	3,022		$	31,448		$	57,015
Amortization of intangibles		16,743			16,721			67,003			77,644
Transaction and other related expenses		1,245			145			5,369			629
Transformation expenses		1,892			935			4,444			3,241
Change in fair value of private placement warrants		—			—			—			24,966
Legal accrual/settlement		8,250			31,500			8,250			31,500
Goodwill impairment		97,076			—			97,076			—
Tax settlement payment related to a prior acquisition		—			5,652			—			5,652
Tax receivable agreement liability adjustment		(257)			(3,077)			(257)			(3,077)
Tax receivable agreement imputed interest		—			(3,641)			—			(3,641)
Loss on extinguishment of debt		1,117			—			1,745			3,533
Change in fair value of interest rate swap		—			3,041			1,316			(320)
Stock-based compensation		4,372			5,130			22,958			17,476
Total adjustments before income tax effect		130,438			56,406			207,904			157,603
Income tax effect on adjustments		(9,751)			(19,568)			(32,802)			(42,105)
Total adjustments after income tax effect		120,687			36,838			175,102			115,498
Adjusted Net Income	$	54,031		$	39,860		$	206,550		$	172,513

Adjusted EPS	$	0.33		$	0.24		$	1.23		$	1.08
Diluted weighted average shares outstanding ⁽¹⁾		165,927			168,585			167,717			160,017
Annual estimated effective income tax rate ⁽²⁾		30	%		31	%		30	%		31	%

(1)	The diluted weighted average shares outstanding used above includes the dilutive effect of common stock equivalents outstanding for the three months ended December 31, 2024. This differs from the weighted average shares outstanding used for net loss per share on our condensed consolidated statement of operations which have an anti-dilutive effect for the three months ended December 31, 2024.
(2)	The annual estimated effective tax rate used above excludes discrete items as they do not impact taxable income. This rate differs from the period-to-date effective tax rate used on our condensed consolidated statements of operations which includes the discrete items.

RECONCILIATION OF TOTAL LONG-TERM DEBT TO NET DEBT AND NET LEVERAGE (Unaudited)


($ in thousands)	December 31, 2024		December 31, 2023
Total long-term debt, net of current portion	$	1,034,211	$	1,029,113
Current portion of long-term debt		—		9,019
Total long-term debt		1,034,211		1,038,132
Original issue discounts		2,322		3,646
Unamortized deferred financing costs		9,035		12,809
Total long-term debt, excluding original issue discounts and unamortized deferred financing costs		1,045,568		1,054,587
Cash and cash equivalents		(77,560)		(136,309)
Net Debt	$	968,008	$	918,278

Net Leverage	2.4x		2.5x
Trailing twelve months adjusted EBITDA		401,614		371,502

Investor Relations Contact

Mark Zindler

[email protected]

View original content to download multimedia:https://www.prnewswire.com/news-releases/verra-mobility-announces-fourth-quarter-and-full-year-2024-financial-results-302387610.html

SOURCE Verra Mobility

February 27, 2025 4:29 pm

Avidity Biosciences Reports Fourth Quarter 2024 Financial Results and Recent Highlights

PR Newswire

Building on success across its three clinical programs, Avidity is leading in rare neuromuscular diseases with a strong balance sheet to execute on a transformational 2025

M
ajor milestones anticipated for each rare neuromuscular program in 2025,
including preparing for Avidity’s first BLA submission

Commercial preparations well underway in anticipation of three potential successive product launches for DMD, DM1 and FSHD starting in 2026

Phase 1/2 EXPLORE44
^®
top-line del-zota data to be presented at the 2025 Muscular Dystrophy Association (MDA) Clinical and Scientific Conference in Dallas, Texas

SAN DIEGO
, Feb. 27, 2025 /PRNewswire/ — Avidity Biosciences, Inc. (Nasdaq: RNA), a biopharmaceutical company committed to delivering a new class of RNA therapeutics called Antibody Oligonucleotide Conjugates (AOCs™) to profoundly improve people’s lives, today reported financial results for the fourth quarter ended December 31, 2024, highlighting recent progress and reiterating 2025 catalysts for its three clinical programs.

“Successful readouts from our three clinical-stage programs in 2024 demonstrate the consistent and reproducible data of our AOC platform. We are extending our leadership position in the rare neuromuscular space as we plan to submit our first BLA for an AOC and prepare for three potential successive product launches to provide therapies for people living with rare neuromuscular diseases with limited or no treatment options,” said Sarah Boyce, president and chief executive officer at Avidity. “We have now completed enrollment in the EXPLORE44-OLE study which, together with the Phase 1/2 EXPLORE44 study data, will form the basis of our BLA submission planned for year-end 2025. We are also rapidly progressing del-desiran in DM1 and del-brax in FSHD – both are on track to potentially be the first globally approved drugs for people living with these serious, rare diseases. We are committed to executing on our broad pipeline and strategic initiatives to bring forward these important therapeutics as quickly as possible for patients who are waiting.”

“As we move into 2025, our strong balance sheet with approximately $1.5 billion at the end of 2024 allows us to continue to expedite our global commercial infrastructure development and expand our team of experienced industry professionals across all areas. We are transitioning to the next stage as the company continues to advance its AOC technology in rare neuromuscular and precision cardiology, and next-generation innovations,” said Mike MacLean, chief financial officer at Avidity.

Recent Highlights

Avidity will be reporting top-line del-zota data from the completed Phase 1/2 EXPLORE44^® trial for people living with Duchenne muscular dystrophy amenable to exon 44 skipping (DMD44) at the 2025 Muscular Dystrophy Association (MDA) Clinical and Scientific Conference being held in Dallas, Texas, on March 19, 2025.

The company has now completed enrollment in the EXPLORE44 Open-label Extension (OLE) study for people living with DMD44. The data from the Phase 1/2 EXPLORE44 and EXPLORE44-OLE^TM studies will support the company’s first BLA submission anticipated at year end 2025.

Avidity reported its 2025 outlook, including upcoming clinical and regulatory highlights, and recent organization appointments to execute on the full range of strategic initiatives and growth anticipated in 2025 and beyond. Updates include:

Delpacibart zotadirsen (del-zota) for the treatment of DMD44:
- Planned BLA submission year end 2025
  - The U.S. Food and Drug Administration (FDA) confirmed the accelerated approval path is available for del-zota and that the clinical data package from the EXPLORE44^® program could support a BLA filing
- Presentation of topline data from the EXPLORE44 trial (Q1)
- Presentation of topline data from the ongoing EXPLORE44-OLE trial (Q4)
Delpacibart etedesiran (del-desiran) for the treatment of myotonic dystrophy type 1 (DM1):
- Completion of enrollment of the ongoing Phase 3 HARBOR™ trial (mid-2025)
- Update from the ongoing MARINA-OLE™ trial including long-term 4mg/kg and safety data (Q4)
- Publication of data analyses from the completed Phase 1/2 MARINA^® trial (2025)
- Planned marketing application submissions in 2026, including in the U.S. and European Union
Delpacibart braxlosiran (del-brax) for the treatment of facioscapulohumeral muscular dystrophy (FSHD):
- Regulatory alignment on a global Phase 3 trial design (Q2)
- Alignment on a potential accelerated approval path for the ongoing FORTITUDE™ biomarker cohort (Q2)
- Completion of enrollment of the FORTITUDE biomarker cohort (Q2)
- Presentation of topline data from the FORTITUDE trial (Q2)
- Initiation of a global, potentially registrational trial in FSHD (Q2)

Full Year 2024 Highlights

Del-zota for DMD44

In August, Avidity reported positive initial del-zota data from the 5 mg/kg cohort of the Phase 1/2 EXPLORE44^® trial in people living with DMD44, demonstrating unsurpassed delivery to skeletal muscle, unprecedented, unadjusted increase of 25% in near full-length dystrophin production with a profound reduction in creatine kinase levels to near normal, and robust exon 44 skipping. Del-zota demonstrated favorable safety and tolerability with most treatment emergent adverse events mild or moderate.
In addition to the participants rolling over from the Phase 1/2 EXPLORE44 trial, Avidity announced it was enrolling additional participants in the EXPLORE44 Open-label Extension (OLE) study to support the BLA submission anticipated at year end 2025. Enrollment in the EXPLORE44-OLE study is now complete.
In February, Avidity announced the FDA granted Rare Pediatric Disease Designation for del-zota for the treatment of DMD44.

Del-desiran for DM1

Enrollment for the global Phase 3 HARBOR™ trial is ongoing and on track for completion in mid-2025.
In May, Avidity announced the FDA granted breakthrough therapy designation for del-desiran for the treatment of DM1.
Achieved global regulatory alignment with FDA, EMA and other global regulatory authorities on the design of the del-desiran Phase 3 HARBOR study in March 2024.
In March, Avidity reported positive del-desiran long-term 4 mg/kg data from the MARINA-OLE™ study showing reversal of disease progression in people living with DM1 across multiple endpoints, including vHOT, muscle strength and activities of daily living when compared to END-DM1 natural history data.

Del-brax for FSHD

In October, Avidity announced the initiation of the biomarker cohort in the Phase 1/2 FORTITUDE™ trial of del-brax. 2 mg/kg of del-brax will be administered every six weeks, designed to ensure continuous suppression of DUX4.
In June, Avidity reported positive initial del-brax 2 mg/kg data at four months from the Phase 1/2 FORTITUDE trial demonstrating unprecedented and consistent reductions of greater than 50% in DUX4 regulated genes, mean reductions of 25% or greater in novel circulating biomarker and creatine kinase, trends of functional improvement, and favorable safety and tolerability in people living with FSHD.

Pipeline Advancements

In November, Avidity announced the expansion of its pipeline into precision cardiology, including two wholly-owned candidates for PRKAG2 syndrome and PLN cardiomyopathy. In addition, Avidity shared details of its next-generation technology innovations with up to 30-fold improvements in delivery observed in preclinical studies.
In August, Avidity announced it plans to advance additional candidates from its DMD franchise following robust del-zota data; Exon 45 is currently in IND-enabling studies.

Fourth Quarter and Year End 2024 Financial Results

Cash, Cash Equivalents and Marketable Securities: Cash, cash equivalents and marketable securities totaled approximately $1.5 billion as of December 31, 2024.
Collaboration Revenue: Collaboration revenues of $3.0 million for the fourth quarter of 2024 and $10.9 million for the year ended 2024 primarily relate to Avidity’s research collaboration and license partnership with Bristol Myers Squibb. Collaboration revenues of $2.2 million for the fourth quarter of 2023 and $9.6 million for the year ended 2023 primarily related to Avidity’s research collaboration and license partnership with Eli Lilly and Company.
Research and Development (R&D) Expenses: R&D expenses include external and internal costs associated with research and development activities. These expenses were $95.6 million for the fourth quarter of 2024 compared with $52.8 million for the fourth quarter of 2023, and $303.6 million for the year ended 2024 compared with $191.0 million for the year ended 2023. The increases were primarily driven by the advancement of del-desiran, del-brax and del-zota, as well as internal and external costs related to the expansion of the company’s overall research capabilities.
Gener
al and Administrative (G&A) Expenses: G&A expenses primarily consist of employee-related expenses, professional fees, insurance costs and patent filing and maintenance fees. These expenses were $28.3 million for the fourth quarter of 2024 compared with $16.1 million for the fourth quarter of 2023, and $86.2 million for the year ended 2024 compared with $54.2 million for the year ended 2023. The increases were primarily due to higher personnel costs to support the company’s expanded operations.

About Avidity
Avidity Biosciences, Inc.’s mission is to profoundly improve people’s lives by delivering a new class of RNA therapeutics – Antibody Oligonucleotide Conjugates (AOCs™). Avidity is revolutionizing the field of RNA with its proprietary AOCs, which are designed to combine the specificity of monoclonal antibodies with the precision of oligonucleotide therapies to address targets and diseases previously unreachable with existing RNA therapies. Utilizing its proprietary AOC platform, Avidity demonstrated the first-ever successful targeted delivery of RNA into muscle and is leading the field with clinical development programs for three rare muscle diseases: myotonic dystrophy type 1 (DM1), Duchenne muscular dystrophy (DMD) and facioscapulohumeral muscular dystrophy (FSHD). Avidity is broadening the reach of AOCs with its advancing and expanding pipeline including programs in cardiology and immunology through internal discovery efforts and key partnerships. Avidity is headquartered in San Diego, CA. For more information about our AOC platform, clinical development pipeline and people, please visit www.aviditybiosciences.com and engage with us on LinkedIn and X.

Forward-Looking Statements
Avidity cautions readers that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. These statements are based on the company’s current beliefs and expectations. Such forward-looking statements include, but are not limited to, statements regarding: Avidity’s plans for three potential successive product launches; Avidity’s plans for a BLA submission for del-zota and the timing thereof; the status of three of Avidity’s programs as potentially registrational; the status of Avidity’s ongoing clinical trials and cohorts therein, including but not limited to initiation, enrollment, design and goals; the ability for del-zota and del-brax to achieve accelerated approval; the presentation of additional data, analyses and other updates from Avidity’s ongoing clinical programs and the timing thereof; planned marketing applications for del-desiran in the U.S. and European Union and the timing thereof; Avidity’s plans to become a global commercial organization and the status of its commercialization efforts; Avidity’s precision cardiology candidates and next-generational technology innovations; plans for the advancement of DMD programs beyond DMD44; the characterization of data associated with Avidity’s product candidates in their respective clinical trials and preclinical studies, the conclusions drawn therefrom, the impact of such data on the advancement of the respective product candidates and their abilities to treat their intended disease targets; Avidity’s platform, planned operations and programs; and Avidity’s cash position and runway.

The inclusion of forward-looking statements should not be regarded as a representation by Avidity that any of these plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in Avidity’s business and beyond its control, including, without limitation: the data and results produced in Avidity’s ongoing clinical trials as of the most recent respective cutoff dates may not be indicative of final results, may not support BLA submissions or accelerated approvals, may not be satisfactory to the FDA and other regulators, and new analyses of existing data and results may produce different conclusions than established as of the date hereof; even if approved, Avidity may not be able to execute any successful product launches; Avidity’s efforts to build a global commercial organization may be unsuccessful; unexpected adverse side effects to, or inadequate efficacy of, Avidity’s product candidates that may delay or limit their development, regulatory approval and/or commercialization; later developments with the FDA and other global regulators that could be inconsistent with the feedback received to date; Avidity’s approach to the discovery and development of product candidates based on its AOC™ platform is unproven and may not produce any products of commercial value; potential delays in the commencement, enrollment, data readouts and completion of preclinical studies or clinical trials; the success of its preclinical studies and clinical trials for the company’s product candidates; Avidity’s dependence on third parties in connection with preclinical and clinical testing and product manufacturing; Avidity may not realize the expected benefits of its collaborations; legislative, judicial and regulatory developments in the United States and foreign countries; Avidity could exhaust its available capital resources sooner than it currently expects; and other risks described in Avidity’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and subsequent filings with the SEC. Avidity cautions readers not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the company undertakes no obligation to update such statements to reflect events that occur or circumstances that arise after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Investor Contact:
Kat Lange
(619) 837-5014
[email protected]

Media Contact:
(619) 837-5016
[email protected]

Avidity Biosciences, Inc.
Selected Condensed Consolidated Financial Information
(in thousands, except per share data)
(unaudited)

Statements of Operations	Three Months Ended December 31,		Twelve Months Ended December 31,
	2024	2023	2024	2023
Collaboration revenue	$ 2,973	$ 2,193	$ 10,897	$ 9,560
Operating expenses:
Research and development	95,625	52,817	303,593	190,968
General and administrative	28,338	16,119	86,240	54,190
Total operating expenses	123,963	68,936	389,833	245,158
Loss from operations	(120,990)	(66,743)	(378,936)	(235,598)
Other income, net	18,733	6,300	56,634	23,378
Net loss	$ (102,257)	$ (60,443)	$ (322,302)	$ (212,220)
Net loss per share, basic and diluted	$ (0.80)	$ (0.79)	$ (2.89)	$ (2.91)
Weighted-average shares outstanding, basic and diluted	128,497	76,052	111,582	73,012

Balance Sheets	December 31, 2024	December 31, 2023
Assets
Current assets:
Cash, cash equivalents and marketable securities	$ 1,501,497	$ 595,351
Prepaid and other assets	40,793	15,956
Total current assets	1,542,290	611,307
Property and equipment, net	12,670	8,381
Restricted cash	2,795	295
Right-of-use assets	5,619	8,271
Other assets	521	301
Total assets	$ 1,563,895	$ 628,555
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and other liabilities	$ 77,031	$ 52,315
Deferred revenue, current portion	20,987	28,365
Total current liabilities	98,018	80,680
Lease liabilities, net of current portion	2,957	6,213
Deferred revenue, net of current portion	37,961	40,898
Total liabilities	138,936	127,791
Stockholders’ equity	1,424,959	500,764
Total liabilities and stockholders’ equity	$ 1,563,895	$ 628,555

View original content to download multimedia:https://www.prnewswire.com/news-releases/avidity-biosciences-reports-fourth-quarter-2024-financial-results-and-recent-highlights-302387693.html

SOURCE Avidity Biosciences, Inc.

February 27, 2025 4:29 pm

Spyre Therapeutics Reports Fourth Quarter and Full Year 2024 Financial Results and Provides Corporate Update

PR Newswire

Reported positive interim pharmacokinetic (“PK”) and safety data in Phase 1 trial of SPY001 in November 2024 and strengthened the balance sheet with a $230 million public offering

Continued execution towards expected milestones across portfolio, with interim Phase 1 data readouts for SPY002 and SPY003 on-track for the second quarter and second half of 2025, respectively

Remain on track for initiation of Phase 2 platform trial in ulcerative colitis (“UC”) in mid-2025 with SPY001 (α4β7), followed by SPY002 (TL1A), SPY003 (IL-23), and combinations thereof, with initial monotherapy results expected in 2026

Announced indication expansion into rheumatoid arthritis (“RA”) with SPY002, with expected Phase 2 trial initiation in mid-2025 and top-line results in 2026

$603 million

of cash, cash equivalents, and marketable securities as of December 31, 2024, with expected runway into the second half of 2028

WALTHAM, Mass.
, Feb. 27, 2025 /PRNewswire/ — Spyre Therapeutics, Inc. (“Spyre” or the “Company”) (NASDAQ:SYRE), a clinical-stage biotechnology company utilizing best-in-class antibody engineering, dose optimization, and rational therapeutic combinations to target improved efficacy and convenience in the treatment of inflammatory bowel disease (“IBD”) and other immune-mediated diseases, today announced its fourth quarter and full year 2024 financial results and provided program and corporate updates.

“In 2024, we initiated first-in-human studies for three of our next-generation antibodies and delivered outstanding interim Phase 1 results for SPY001, which underscore our portfolio’s potential to revolutionize the treatment of IBD. Looking ahead, we are progressing our suite of therapeutics into a groundbreaking Phase 2 platform study in ulcerative colitis, which is designed to test both monotherapies and combination therapies with the potential for unified quarterly subcutaneous dosing in maintenance,” said Cameron Turtle, DPhil., Chief Executive Officer. “Additionally, the expansion of SPY002 into a Phase 2 rheumatoid arthritis trial this year represents a key step in addressing a pressing unmet need in a disease that affects millions across the globe. We are well-positioned and well-capitalized to deliver a series of value-inflecting catalysts, including three Phase 1 readouts expected in 2025 and four Phase 2 proof-of-concept readouts expected in 2026.”

Development Pipeline Overview and Update

The Company’s approach combines best-in-class antibody engineering, dose optimization, and rational therapeutic combinations with the goal of maximizing efficacy, safety, and convenience in the treatment of IBD and other immune-mediated diseases. IBD is a chronic condition characterized by inflammation within the gastrointestinal tract, including two main disorders: UC and Crohn’s disease (“CD”). In the United States, it is estimated that approximately 2.4 million individuals are diagnosed with IBD. RA is a chronic inflammatory autoimmune condition that primarily affects the joints but also other parts of the body. It is characterized by pain, stiffness, and swelling of one or more joints and can progress from mild swelling of the joints in early stages to severe deformations of the feet, ankles, and hands in late/severe stages. RA affects more than 1.5 million individuals in the United States.

The Company has four programs in nonclinical and clinical development, three of which are targets in IBD validated by third parties. The fourth program is an undisclosed target. All three validated targets offer the potential for safe and effective treatment of UC and CD, with infrequent, subcutaneous maintenance dosing as a monotherapy or in rational combinations. The Company is also planning to study its anti-TL1A program in additional indications outside IBD, beginning with RA.

SPY001 – a highly potent and selective investigational monoclonal antibody targeting α4β7, engineered with half-life extension technology and formulated at high concentration with the goal of maximizing efficacy and enabling infrequent, subcutaneous maintenance dosing.

In November 2024, interim healthy volunteer data from a Phase 1 trial were presented, demonstrating a favorable safety profile, a meaningfully differentiated PK profile relative to vedolizumab with half-life estimates greater than 90 days supporting potential Q6M maintenance dosing, and complete occupancy of α4β7 receptors out to 12 weeks at a single dose of 300mg.
Longer-term data from this Phase 1 trial will be presented at a medical meeting later this year. Based on these interim results, Spyre plans to advance SPY001 to a Phase 2 clinical trial in UC patients in mid-2025.

SPY002 – a program with two highly potent and selective, investigational anti-TL1A monoclonal antibodies, engineered with half-life extension technology and formulated at high concentration with the goal of maximizing efficacy and enabling infrequent, subcutaneous maintenance dosing. The Company believes TL1A has emerged as one of the most promising targets in IBD and broader immunology indications.

In January 2025, the Company announced its intent to study one of its anti-TL1A antibodies in RA, with Phase 2 trial initiation expected in mid-2025 and topline results in 2026. With class-leading potency and half-life established in preclinical studies, SPY002 has the potential to become the first-in-class and best-in-class anti-TL1A treatment for RA.
In December 2024, the Company initiated first-in-human (“FIH”) trials of both SPY002 candidates, with healthy volunteer interim data expected in the second quarter of 2025. If successful, the Company expects one or more SPY002 candidates would then advance to Phase 2 clinical trials.
In October 2024, preclinical data for both SPY002 development candidates were presented at the United European Gastroenterology Week (“UEGW”) Congress demonstrating superior or comparable in vitro potency to first-generation anti-TL1As, as well as a pharmacokinetic half-life of 24 days in non-human primates (“NHPs”), which represents a two to three-fold increase compared to these same first-generation anti-TL1As.

SPY003 – a highly potent and selective investigational monoclonal antibody targeting the p19 subunit of IL-23, engineered with half-life extension technology and formulated at high concentration with the goal of maximizing efficacy and enabling infrequent, subcutaneous maintenance dosing.

In October 2024, preclinical data for SPY003 were presented for the first time at UEGW, demonstrating comparable potency to risankizumab, as well as a pharmacokinetic half-life of 30 days in NHPs, greater than three-fold compared to risankizumab. These data also demonstrated that SPY003 exhibits high selectivity and affinity for IL-23 and potently inhibits downstream cellular signaling.
SPY003 remains on track to initiate a FIH trial in the first quarter of 2025, with healthy volunteer interim data expected in the second half of 2025.

Rational Combinations – the Company plans to investigate combinations of our proprietary antibodies in nonclinical studies and clinical trials in order to evaluate whether combination therapy can potentially lead to best-in-class efficacy in IBD, with less frequent dosing.

In February 2025, new preclinical data for SPY120 were presented at the 20th Congress of the European Crohn’s and Colitis Organisation, demonstrating that the combined inhibition of TL1A and α4β7 is superior to either monotherapy in mouse models of colitis and that coadministration of SPY001 and SPY002 demonstrated no drug effects on PK in NHPs.
In October 2024, preclinical data for SPY130 and SPY230 were presented at UEGW, demonstrating enhanced efficacy and pharmacodynamics with SPY003 in combination with SPY001 and with SPY002.
The Company expects to initiate a Phase 2 clinical trial in 2025 that is intended to include each of its rational combinations, as well as all three of its lead monotherapy programs.

Recent Corporate Updates

In December 2024, Spyre was added to the Nasdaq Biotechnology Index.
In November 2024, the Company raised $230 million in gross proceeds from a public offering of common stock with broad participation from both new and existing investors, extending cash runway into the second half of 2028.
In October 2024, the Company announced the appointment of Sheldon Sloan, M.D., M. Bioethics, as Chief Medical Officer. Dr. Sloan’s 25+ years of experience in both large pharmaceutical and small biotech companies, featuring an extensive track record of program leadership in the field of Inflammation and Immunology, will be invaluable to guide the Company as it advances its potentially best-in-class IBD portfolio.

Fourth
Quarter 2024 Financial Results

Cash Position: As of December 31, 2024, Spyre had cash, cash equivalents, and marketable securities of $603.1 million. Net cash used in operating activities was $37.2 million for the fourth quarter of 2024. In November 2024, the Company raised $230 million in gross proceeds, before deducting $14.2 million in underwriting discounts, commissions, and other offering expenses, from a public offering of common stock.

Research and Development (R&D) expenses: R&D expenses totaled $50.5 million for the fourth quarter of 2024 and $33.7 million for the fourth quarter of 2023. The increase was primarily driven by nonclinical and clinical development, as well as manufacturing expenses, for the Company’s pipeline candidates.

General and Administrative (G&A) expenses: G&A expenses totaled $10.8 million for the fourth quarter of 2024 and $14.1 million for the fourth quarter of 2023. The decrease was driven by higher stock compensation expense related to the Spyre acquisition in the fourth quarter of 2023.

Other income (expense): Other income totaled $5.0 million for the fourth quarter of 2024 primarily driven by interest earned on the Company’s cash and marketable securities. For the fourth quarter of 2023, other expense totaled $17.3 million, primarily driven by an increase in the Company’s CVR liability related to the increased likelihood of certain milestone payments related to pegzilarginase reimbursement in European markets, partially offset by interest earned on the Company’s cash and marketable securities.

Net Loss: Net loss totaled $56.3 million and $63.2 million for the fourth quarters of 2024 and 2023, respectively, which includes non-cash stock compensation expense of $9.2 million and $17.3 million for the fourth quarters of 2024 and 2023, respectively.

About Spyre Therapeutics
Spyre Therapeutics is a clinical-stage biotechnology company that aims to create next-generation inflammatory bowel disease (IBD) and other immune-mediated disease products by combining best-in-class antibody engineering, dose optimization, and rational therapeutic combinations. Spyre’s pipeline includes investigational extended half-life antibodies targeting α4β7, TL1A, and IL-23.

For more information, please visit http://spyre.com.

Safe Harbor / Forward Looking Statements
This press release contains “forward-looking” statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements contained in this press release, other than statements of historical fact are forward-looking statements. These forward-looking statements include statements regarding the Company’s future results of operations and financial position; its business strategy, including the Company’s ability to successfully develop best-in-class and/or first-in-class therapeutics for IBD, RA, or other immune-mediated diseases that meaningfully improve both efficacy and convenience compared to today’s standard of care; the SPY001 Phase 1 trial final data readouts not being consistent with or being different than the interim Phase 1 results; the sufficiency of the Company’s funding to support the development of its assets, including expectations of cash runway extending into the second half of 2028; the length of time that the Company believes its existing cash resources will fund its operations; estimated market sizes and potential growth opportunities; its nonclinical and future clinical development activities; clinical trial designs and related regulatory feedback; further clinical evaluation of therapeutic combinations; the potential efficacy, tolerability, convenience, commercial viability and safety profile of its product candidates, including in combinations; the planned dosing regimen for SPY001 and our other product candidates, including the potential for a Q6M dosing profile; the potential therapeutic benefits and economic value of its product candidates as monotherapies or in combinations and their extended half-life; the timing for initiation of nonclinical studies and clinical trials, including the commencement of FIH and Phase 2 trials; and the planned expansion of SPY002 into RA, including timing thereof. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “predict,” “target,” “intend,” “could,” “would,” “should,” “project,” “plan,” “expect,” the negatives of these terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including the expected or potential impact of macroeconomic conditions, including U.S. elections inflationary pressures, rising interest rates, general economic slowdown or a recession, changes in monetary policy, the prospect of a shutdown of the U.S. federal government, volatile market conditions, financial institution instability, as well as geopolitical instability, including the ongoing military conflict in Ukraine, conflict in Israel and surrounding areas, and geopolitical tensions in China on the Company’s operations, the potential impacts of the BIOSECURE Act bill if passed into law and those risks described in the Company’s Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K, as well as in other filings and reports that the Company makes from time to time with the Securities and Exchange Commission. Moreover, the Company operates in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible for the Company’s management to predict all risks, nor can the Company assess the impact of all factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements it may make. In light of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. The Company undertakes no obligation to update publicly any forward-looking statement for any reason after the date of this press release to conform these statements to actual results, to reflect changes in the Company’s expectations, or otherwise, except as required by law. You should read press release with the understanding that the Company’s actual results, levels of activity, performance, events, outcomes, and the timing of results and outcomes, and other circumstances may be materially different from what the Company expects.

Spyre Therapeutics, Inc. Consolidated Balance Sheets (Unaudited, in thousands, except share and per share amounts)

	December 31, 2024	December 31, 2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$ 89,423	$ 188,893
Marketable securities	513,665	150,384
Prepaid expenses and other current assets	5,386	2,251
Total current assets	608,474	341,528
Restricted cash	—	322
Other non-current assets	10	9
TOTAL ASSETS	$ 608,484	$ 341,859

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$ 666	$ 896
CVR liability	25,080	1,390
Accrued and other current liabilities	27,711	13,108
Related party accounts payable	603	16,584
Total current liabilities	54,060	31,978
Non-current CVR liability	36,620	41,310
TOTAL LIABILITIES	90,680	73,288
Commitments and Contingencies
Series B non-voting convertible preferred stock, $0.0001 par value; 150,000 shares authorized, issued, and outstanding as of December 31, 2023.	—	84,555
STOCKHOLDERS’ EQUITY
Series A non-voting convertible preferred stock, $0.0001 par value; 1,086,341 shares authorized as of December 31, 2024 and December 31, 2023; 346,045 and 437,037 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively.	146,425	184,927
Series B non-voting convertible preferred stock, $0.0001 par value; 271,625 shares authorized and 16,667 shares issued and outstanding as of December 31, 2024.	9,395	—
Preferred stock, $0.0001 par value; 8,642,034 shares and 8,763,659 shares authorized as of December 31, 2024 and December 31, 2023, respectively; no shares issued and outstanding as of December 31, 2024 and December 31, 2023.	—	—
Common stock, $0.0001 par value; 400,000,000 shares authorized as of December 31, 2024 and December 31, 2023; 60,257,023 shares and 36,057,109 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively.	13	10
Additional paid-in capital	1,334,223	763,191
Accumulated other comprehensive income	180	302
Accumulated deficit	(972,432)	(764,414)
TOTAL STOCKHOLDERS’ EQUITY	517,804	184,016
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY	$ 608,484	$ 341,859

Spyre Therapeutics, Inc. Consolidated Statements of Operations (Unaudited, in thousands, except share and per share amounts)

	Three Months Ended December 31,		Twelve Months Ended December 31,
	2024	2023	2024	2023
Revenue:
Development fee and royalty	$ —	$ —	$ —	$ 886
Total revenue	—	—	—	886

Operating expenses:
Research and development ⁽¹⁾	50,482	33,682	162,790	89,504
General and administrative	10,771	14,072	45,776	39,946
Acquired in-process research and development	—	—	—	130,188
Gain on sale of in-process research and development asset	—	(1,840)	—	(16,449)
Total operating expenses	61,253	45,914	208,566	243,189
Loss from operations	(61,253)	(45,914)	(208,566)	(242,303)

Other (expense) income:
Interest income	5,776	4,126	21,312	6,147
Change in fair value of forward contract liability	—	—	—	(83,530)
Other (expense) income, net	(818)	(21,392)	(20,713)	(19,130)
Total other (expense) income	4,958	(17,266)	599	(96,513)
Loss before income tax expense	(56,295)	(63,180)	(207,967)	(338,816)
Income tax (expense) benefit	(1)	—	(51)	26
Net loss	$ (56,296)	$ (63,180)	$ (208,018)	$ (338,790)

Net loss per share, basic and diluted, Series A Preferred Stock	$ (32.28)	$ (49.17)	$ (127.21)	$ (550.28)
Weighted-average Series A non-voting convertible preferred stock outstanding, basic and diluted	346,045	860,495	374,387	434,612

Net loss per share, basic and diluted, Series B Preferred Stock	$ (32.28)	$ (49.18)	$ (127.21)	$ (550.29)
Weighted-average Series B non-voting convertible preferred stock outstanding, basic and diluted	16,667	34,239	85,208	8,630

Net loss per share, basic and diluted, common	$ (0.81)	$ (1.23)	$ (3.18)	$ (13.76)
Weighted-average common shares outstanding, basic and diluted	55,259,227	15,607,898	47,027,638	6,897,065


(1)	Includes $6.1 million and $41.2 million in related party expenses for the three and twelve months ended December 31, 2024, respectively, and $27.7 million and $48.5 million related party expenses for the three and twelve months ended December 31, 2023, respectively.

View original content to download multimedia:https://www.prnewswire.com/news-releases/spyre-therapeutics-reports-fourth-quarter-and-full-year-2024-financial-results-and-provides-corporate-update-302385753.html

SOURCE Spyre Therapeutics, Inc.

February 27, 2025 4:29 pm

PubMatic Announces Fourth Quarter and Fiscal Year Ended 2024 Financial Results

FY Revenue of $291.3 million, up 9% over 2023;

Delivered FY 2024 net income of $12.5 million or 4% margin;

FY adjusted EBITDA increased 23% over 2023 and was $92.3 million or 32% margin;

Revenue in Q4 from CTV more than doubled year over year and represented 20% of total revenue;

Supply Path Optimization represented 53% of total activity in 2024;

Repurchased 4.3 million shares in 2024, representing 7.9% of fully diluted shares as of December 31, 2024

NO-HEADQUARTERS/REDWOOD CITY, Calif., Feb. 27, 2025 (GLOBE NEWSWIRE) — PubMatic, Inc. (Nasdaq: PUBM), an independent technology company delivering digital advertising’s supply chain of the future, today reported financial results for the fourth quarter and fiscal year ended December 31, 2024.

“Revenue growth in the year more than doubled over 2023, driven by strength in CTV, emerging revenue streams, and marquee customers choosing PubMatic to build and scale their ad businesses. Our revenue mix is evolving; in the fourth quarter, CTV more than doubled to 20% of total revenue. These achievements mark an inflection point in our underlying business that highlights critical scale on our platform and a significant shift in ad buying toward channels with the highest consumer engagement such as CTV, mobile app and commerce media,” said Rajeev Goel, co-founder and CEO at PubMatic. “Today, our omnichannel platform serves publishers, media buyers, commerce media networks, and curation/data providers, all of which are turning to sell side technology for critical end-to-end solutions needed to build their ad businesses. As we look to 2025, we expect accelerated growth in our underlying business as ad buyers seek premium, brand safe, curated inventory in the open internet.”

Fiscal Year 2024 Financial Highlights

Revenue for the full year 2024 was $291.3 million, an increase of 9% over $267.0 million in 2023;
Gross profit was $190.2 million, or 65% margin, an improvement of 250 basis points over 2023;
Revenue from omnichannel video in 2024 grew 37% over the same period last year;
Net dollar-based retention¹ was 107% for the year ended December 31, 2024;
GAAP net income was $12.5 million with a margin of 4%, or $0.23 per diluted share in 2024, an increase over net income² of $8.9 million with a margin of 3%, or $0.16 per diluted share in 2023;
Adjusted EBITDA was $92.3 million, or 32% margin, an increase over adjusted EBITDA of $75.3 million, or 28% margin, in 2023;
Non-GAAP net income was $42.5 million, or $0.78 per non-GAAP diluted share in 2024, an increase over non-GAAP net income of $32.0 million, or $0.57 per non-GAAP diluted share in 2023;
Net cash provided by operating activities in 2024 was $73.4 million, compared to $81.1 million in the full year 2023;
Generated free cash flow of $34.9 million in 2024, down 34% over 2023;
Ended 2024 with total cash, cash equivalents, and marketable securities of $140.6 million with no debt, a decrease of 20% over the full year 2023; and
Through December 31, 2024, used $134.6 million in cash to repurchase 8.3 million shares of Class A common stock with $40.4 million available from the 2024 repurchase program.

Fourth Quarter 2024 Financial Highlights

Revenue in the fourth quarter of 2024 was $85.5 million, an increase of 1% over $84.6 million in the same period of 2023;
GAAP net income was $13.9 million with a margin of 16%, or $0.26 per diluted share in the fourth quarter, compared to GAAP net income of $18.7 million with a margin of 22%, or $0.34 per diluted share in the same period of 2023;
Adjusted EBITDA was $37.6 million, or 44% margin, compared to $38.9 million, or 46% margin in the same period of 2023;
Non-GAAP net income was $21.4 million, or $0.41 per non-GAAP diluted share in the fourth quarter, compared to non-GAAP net income of $24.4 million, or $0.45 per non-GAAP diluted share in the same period of 2023; and
Net cash provided by operating activities was $18.0 million, compared to $28.7 million in the same period of 2023.

The section titled “Non-GAAP Financial Measures” below describes our usage of non-GAAP financial measures. Reconciliations between historical GAAP and non-GAAP information are contained at the end of this press release following the accompanying financial data.

“In 2024, we delivered record share of revenue for CTV, mobile app and emerging revenues, and achieved an all-time high of Supply Path Optimization activity. We also significantly expanded our margins, once again, demonstrating the strength of our durable model and our strategic commitment to steward both operational excellence and targeted investments for growth,” said Steve Pantelick, CFO at PubMatic. “In Q4, strong growth in the underlying business helped offset softer spending from the large DSP buyer we previously called out mid year. Going forward, we are taking a conservative approach as it relates to this buyer, and expect total revenues to grow year over year in the second half of the year once we lap this impact at the end of Q2 2025. Our underlying business, which excludes revenue from this DSP and political, is targeted to grow 15%+ and represent over two thirds of total company revenues in 2025.”

Business Highlights

Omnichannel platform drives revenue in key secular growth areas

Full year revenue from high value formats and channels, mobile and omnichannel video³, grew 17% over 2023.
In Q4, revenue from omnichannel video, which includes CTV, grew 37% year-over-year.
CTV reached scale, and was 20% of revenue in the fourth quarter, driven by growing inventory supply, SPO relationships, and strength in political advertising.
Revenue from mobile app grew 16% over 2023 as we scaled to over 900 mobile app publishers.

High consumer engagement channels fuel ad demand and sell-side data curation

New and expanded partnerships announced in 2024 with premium streaming brands including Roku, Dish Media, Disney+ Hotstar, TCL and Xumo. We now work with 80% of the top 30 streaming publishers.
The number of Activate customers grew nearly 6x over 2023.
Supply Path Optimization represented 53% of total activity on our platform in 2024, up from 45% in 2023.
Connect drives more performant, targeted ad campaigns across the open internet, offering 190 data sets to ad buyers on PubMatic. Connect is a leading platform for data providers and curators to integrate first-party data, package inventory, sell to, and optimize outcomes for ad buyers.

Focused investments drive long-term growth opportunities

More than doubled total addressable market to over $120 billion via products that address four key stakeholders across the digital advertising ecosystem: publishers, media buyers, curators and data providers, and commerce media networks.
Contribution from emerging revenue streams, which expand beyond ad monetization services, doubled from 2023.

Recent product launches

Launched CTV Marketplaces, offering ad buyers pre-curated CTV inventory available only on PubMatic, built directly from our sell side technology. CTV Marketplaces allows publishers to unlock more value from their inventory and provides ad buyers off-the-shelf, easy to buy premium content and targeted audiences, including curated live sports inventory.
Launched Creative Category Manager, a generative AI solution that scans and classifies each video ad creative on granular criteria. First used to unlock millions of dollars in political ad spend, it drove significant CTV revenue. This gen AI solution will soon expand to other use cases and verticals.
Launched PubMatic Assistant, a gen AI powered reporting tool that allows publishers to request any report or data using simple plain language text queries. As a result, publishers can streamline analytics, enhance productivity and unlock new growth opportunities by uncovering insights in big data. This powerful tool removes barriers to adoption and drives increased platform usage.

2024 operating priorities drove profitable growth

Aligned with our growth investments, increased global headcount in 2024 by 11% over 2023, adding new team members across product management, engineering and go-to-market teams to accelerate long-term revenue growth.
Infrastructure optimization initiatives and investments drove nearly 263 trillion impressions processed in 2024, an increase of 25% over 2023.
Cost of revenue per million impressions processed decreased 18% on a trailing twelve month period, as compared to the prior period.
Scaled adoption of generative AI drove increased engineering productivity by 15%+ which led to faster software development, testing and release processes.

Financial Outlook

Q1 outlook includes the continued headwind from one of our top DSP buyers that revised its auction approach in late May 2024. Adjusted EBITDA expectation assumes a negative FX impact predominately from Euro and Pound Sterling expenses. It also assumes that general market conditions do not significantly deteriorate as it relates to current macroeconomic and geopolitical conditions.

Accordingly, we estimate the following:

For the first quarter of 2025, we expect the following:

Revenue to be in the range of $61 million to $63 million.
Adjusted EBITDA to be in the range of $5 million to $7 million.

Although we provide guidance for adjusted EBITDA and free cash flow, we are not able to provide guidance for net income, the most directly comparable GAAP measure. Certain elements of the composition of GAAP net income, including stock-based compensation expenses, are not predictable, making it impractical for us to provide guidance on net income or to reconcile our adjusted EBITDA guidance to net income without unreasonable efforts. For the same reason, we are unable to address the probable significance of the unavailable information.

Conference Call and Webcast details

PubMatic will host a conference call to discuss its financial results on Thursday, February 27, 2025 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). A live webcast of the call can be accessed from PubMatic’s Investor Relations website at https://investors.pubmatic.com. An archived version of the webcast will be available from the same website after the call.

Non-GAAP Financial Measures

In addition to our results determined in accordance with U.S. generally accepted accounting principles (GAAP), including, in particular operating income, net cash provided by operating activities, and net income, we believe that adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP earnings per share and free cash flow, each a non-GAAP measure, are useful in evaluating our operating performance. We define adjusted EBITDA as net income adjusted for stock-based compensation expense, depreciation and amortization, unrealized loss and impairment of equity investment, interest income, acquisition-related and other expenses, and provision for income taxes. Adjusted EBITDA margin represents adjusted EBITDA calculated as a percentage of revenue. We define non-GAAP net income as net income adjusted for unrealized loss on equity investments, stock-based compensation expense, acquisition-related and other expenses, and adjustments for income taxes. We define non-GAAP free cash flow as net cash provided by operating activities reduced by purchases of property and equipment and capitalized software development costs.

In addition to operating income and net income, we use adjusted EBITDA and non-GAAP net income as measures of operational efficiency. We believe that these non-GAAP financial measures are useful to investors for period to period comparisons of our business and in understanding and evaluating our operating results for the following reasons:

Adjusted EBITDA and non-GAAP net income are widely used by investors and securities analysts to measure a company’s operating performance without regard to items such as stock-based compensation expense, depreciation and amortization, interest expense, and provision for income taxes that can vary substantially from company to company depending upon their financing, capital structures and the method by which assets were acquired; and,
Our management uses adjusted EBITDA and non-GAAP net income in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of operating performance and the effectiveness of our business strategies and in communications with our board of directors concerning our financial performance; and adjusted EBITDA provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.

Our use of non-GAAP financial measures has limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are as follows:

Adjusted EBITDA does not reflect: (a) changes in, or cash requirements for, our working capital needs; (b) the potentially dilutive impact of stock-based compensation; or (c) tax payments that may represent a reduction in cash available to us;
Although depreciation and amortization expense are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; and
Non-GAAP net income does not include: (a) unrealized losses resulting from our equity investment; (b) the potentially dilutive impact of stock-based compensation; (c) income tax effects for stock-based compensation and unrealized losses from our equity investment; or (d) acquisition-related and other expenses.

Because of these and other limitations, you should consider adjusted EBITDA and non-GAAP net income along with other GAAP-based financial performance measures, including net income and our GAAP financial results.

Forward Looking Statements

This press release contains “forward-looking statements” regarding our future business expectations, including our guidance relating to our revenue and adjusted EBITDA for the first quarter of 2025, our expectations regarding our adjusted EBITDA, free cash flow, capital expenditures, future hiring, future market growth, our long-term revenue growth, target revenue and our ability to gain market share. These forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions and may differ materially from actual results due to a variety of factors including: our dependency on the overall demand for advertising and the channels we rely on; our existing customers not expanding their usage of our platform, or our failure to attract new publishers and buyers; our ability to maintain and expand access to spend from buyers and valuable ad impressions from publishers; the rejection of the use of digital advertising by consumers through opt-in, opt-out or ad-blocking technologies or other means; our failure to innovate and develop new solutions that are adopted by publishers; the war between Ukraine and Russia and the resumption of conflict between Israel and Palestine, and the related measures taken in response by the global community; the impacts of inflation as well as fiscal tightening and volatile interest rates; public health crises, including the resulting global economic uncertainty; limitations imposed on our collection, use or disclosure of data about advertisements; the lack of similar or better alternatives to the use of third-party cookies, mobile device IDs or other tracking technologies if such uses are restricted; any failure to scale our platform infrastructure to support anticipated growth and transaction volume; liabilities or fines due to publishers, buyers, and data providers not obtaining consents from consumers for us to process their personal data; any failure to comply with laws and regulations related to data privacy, data protection, information security, and consumer protection; and our ability to manage our growth. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. For more information about risks and uncertainties associated with our business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of our SEC filings, including but not limited to, our annual report on Form 10-K and quarterly reports on From 10-Q, copies of are available on our investor relations website at https://investors.pubmatic.com and on the SEC website at www.sec.gov. All information in this press release is as of February 27, 2025. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

About PubMatic

PubMatic is an independent technology company maximizing customer value by delivering digital advertising’s supply chain of the future. PubMatic’s sell-side platform empowers the world’s leading digital content creators across the open internet to control access to their inventory and increase monetization by enabling marketers to drive return on investment and reach addressable audiences across ad formats and devices. Since 2006, PubMatic’s infrastructure-driven approach has allowed for the efficient processing and utilization of data in real time. By delivering scalable and flexible programmatic innovation, PubMatic improves outcomes for its customers while championing a vibrant and transparent digital advertising supply chain.



CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited)

	December 31, 2024			December 31, 2023
ASSETS
Current assets
Cash and cash equivalents	$	100,452		$	78,509
Marketable securities		40,135			96,835
Accounts receivable, net		424,814			375,468
Prepaid expenses and other current assets		10,145			11,143
Total current assets		575,546			561,955
Property, equipment and software, net		58,522			60,729
Operating lease right-of-use assets		44,402			21,102
Acquisition-related intangible assets, net		4,284			5,864
Goodwill		29,577			29,577
Deferred tax assets		24,864			13,880
Other assets, non-current		2,324			2,136
TOTAL ASSETS	$	739,519		$	695,243
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	386,602		$	347,673
Accrued liabilities		26,365			25,684
Operating lease liabilities, current		5,843			6,236
Total current liabilities		418,810			379,593
Operating lease liabilities, non-current		39,538			15,607
Other liabilities, non-current		3,908			3,844
TOTAL LIABILITIES		462,256			399,044
Stockholders’ Equity
Common stock		6			6
Treasury stock		(146,796	)		(71,103	)
Additional paid-in capital		275,304			230,419
Accumulated other comprehensive loss		(636	)		(4	)
Retained earnings		149,385			136,881
TOTAL STOCKHOLDERS’ EQUITY		277,263			296,199
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	739,519		$	695,243


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (unaudited)

	Three Months Ended December 31,				Year Ended December 31,
		2024		2023		2024		2023
Revenue	$	85,502	$	84,600	$	291,256	$	267,014
Cost of revenue⁽¹⁾		24,935		24,208		101,027		99,229
Gross profit		60,567		60,392		190,229		167,785
Operating expenses:⁽¹⁾
Technology and development		7,831		6,846		33,263		26,727
Sales and marketing		23,763		20,353		95,369		82,803
General and administrative⁽²⁾		14,171		12,780		57,670		56,219
Total operating expenses		45,765		39,979		186,302		165,749
Operating income		14,802		20,413		3,927		2,036
Total other income, net		3,618		2,632		13,847		8,469
Income before income taxes		18,420		23,045		17,774		10,505
Provision for income taxes		4,521		4,343		5,270		1,624
Net income	$	13,899	$	18,702	$	12,504	$	8,881
Net income per share attributable to common stockholders:
Basic	$	0.29	$	0.37	$	0.25	$	0.17
Diluted	$	0.26	$	0.34	$	0.23	$	0.16
Weighted-average shares used to compute net income per share attributable to common stockholders:
Basic		47,993		50,659		49,213		51,760
Diluted		52,623		54,940		54,294		56,027

⁽¹⁾Stock-based compensation expense includes the following:
STOCK BASED COMPENSATION EXPENSE (In thousands) (unaudited)

	Three Months Ended December 31,				Year Ended December 31,
		2024		2023		2024		2023
Cost of revenue	$	438	$	383	$	1,855	$	1,472
Technology and development		1,625		1,137		6,313		4,346
Sales and marketing		3,247		2,589		13,407		10,462
General and administrative		4,099		3,228		16,101		12,582
Total stock-based compensation	$	9,409	$	7,337	$	37,676	$	28,862

⁽²⁾On June 30, 2023, a Demand Side Platform buyer of our platform filed for Chapter 11 bankruptcy. As a result of this bankruptcy, we recorded incremental bad debt expense of $5.7 million which is reflected in our GAAP net income and adjusted EBITDA results for the year ended December 31, 2023.


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (In thousands) (unaudited)

	December 31,
		2024			2023
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income	$	12,504		$	8,881
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		45,352			44,770
Stock-based compensation		37,676			28,862
Provision for doubtful accounts		—			5,675
Deferred income taxes		(10,984	)		(13,406	)
Accretion of discount on marketable securities		(4,117	)		(4,093	)
Non-cash lease expense		6,801			6,145
Other		(25	)		45
Changes in operating assets and liabilities:
Accounts receivable		(49,345	)		(75,716	)
Prepaid expenses and other current assets		(5,826	)		3,918
Accounts payable		38,096			79,687
Accrued liabilities		9,627			3,035
Operating lease liabilities		(6,531	)		(5,789	)
Other liabilities, non-current		197			(893	)
Net cash provided by operating activities		73,425			81,121
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of and deposits on property and equipment		(17,592	)		(10,601	)
Capitalized software development costs		(20,936	)		(17,687	)
Purchases of marketable securities		(142,016	)		(140,603	)
Proceeds from sales of marketable securities		—			18,873
Proceeds from maturities of marketable securities		202,858			111,000
Net cash provided by (used in) investing activities		22,314			(39,018	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of business combination indemnification claims holdback		(2,148	)		—
Proceeds from issuance of common stock for employee stock purchase plan		2,368			1,869
Proceeds from exercise of stock options		1,765			1,549
Principal payments on finance lease obligations		(131	)		(126	)
Payments to acquire treasury stock		(75,332	)		(59,268	)
Net cash used in financing activities		(73,478	)		(55,976	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		22,261			(13,873	)
Effect of foreign currency on cash		(318	)		—
CASH AND CASH EQUIVALENTS – Beginning of year		78,509			92,382
CASH AND CASH EQUIVALENTS – End of year	$	100,452		$	78,509


RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDA AND NON-GAAP NET INCOME (In thousands, except per share amounts) (unaudited)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Reconciliation of net income:
Net income	$	13,899		$	18,702		$	12,504		$	8,881
Add back (deduct):
Stock-based compensation		9,409			7,337			37,676			28,862
Depreciation and amortization		11,421			11,039			45,352			44,770
Interest income		(1,604	)		(2,515	)		(8,477	)		(8,828	)
Provision for income taxes		4,521			4,343			5,270			1,624
Adjusted EBITDA¹	$	37,646		$	38,906		$	92,325		$	75,309

Revenue	$	85,502		$	84,600		$	291,256		$	267,014
Adjusted EBITDA margin		44	%		46	%		32	%		28	%

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Reconciliation of net income per share:
Net income	$	13,899		$	18,702		$	12,504		$	8,881
Add back (deduct):
Stock-based compensation		9,409			7,337			37,676			28,862
Adjustment for income taxes		(1,865	)		(1,590	)		(7,728	)		(5,695	)
Non-GAAP net income¹	$	21,443		$	24,449		$	42,452		$	32,048
GAAP diluted EPS	$	0.26		$	0.34		$	0.23		$	0.16
Non-GAAP diluted EPS	$	0.41		$	0.45		$	0.78		$	0.57
GAAP weighted average shares outstanding—diluted		52,623			54,940			54,294			56,027
Non-GAAP weighted average shares outstanding—diluted		52,623			54,940			54,294			56,027


SUPPLEMENTAL CASH FLOW INFORMATION COMPUTATION OF FREE CASH FLOW, A NON-GAAP MEASURE (In thousands) (unaudited)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Reconciliation of cash provided by operating activities:
Net cash provided by operating activities	$	18,048		$	28,674		$	73,425		$	81,121
Less: Purchases of property and equipment		(4,324	)		(5,177	)		(17,592	)		(10,601	)
Less: Capitalized software development costs		(4,868	)		(3,962	)		(20,936	)		(17,687	)
Free cash flow	$	8,856		$	19,535		$	34,897		$	52,833

¹ Net income, Adjusted EBITDA, and Non-GAAP net income for the twelve months ended December 31, 2024 include other income of $4.0 million related to our efforts to build and test integrations with the Google Privacy Sandbox.

¹ Net dollar-based retention is calculated by starting with the revenue from publishers in the trailing twelve months ended December 31, 2023 (“Prior Period Revenue”). We then calculate the revenue from these same publishers in the trailing twelve months ended December 31, 2024 (“Current Period Revenue”). Current Period Revenue includes any upsells and is net of contraction or attrition, but excludes revenue from new publishers. Our net dollar-based retention rate equals the Current Period Revenue divided by Prior Period Revenue. Net dollar-based retention rate is an important indicator of publisher satisfaction and usage of our platform, as well as potential revenue for future periods.
² Fiscal year 2023 GAAP net income includes approximately $5.7 million of incremental bad debt expense related to the bankruptcy of a Demand Side Platform buyer of our platform.
³ Omnichannel video spans across desktop, mobile and CTV devices.

Investors:
The Blueshirt Group for PubMatic
[email protected]

Press Contact:
Broadsheet Communications for PubMatic
[email protected]

February 27, 2025 4:28 pm

Lisata Therapeutics Reports Full Year 2024 Financial Results and Provides Business Update

Promising preliminary Phase 2b (ASCEND) pancreatic cancer data (Cohort A) reported with Cohort B data anticipated in the coming months

Enrollment completed in Qilu’s Phase 2 trial evaluating certepetide for the treatment of first-line mPDAC

Advancing development portfolio with multiple milestones projected over the next 12+ months

Cash runway extending into the second quarter of 2026 with no debt

Conference call scheduled for today at 4:30 p.m. Eastern Time

BASKING RIDGE, N.J., Feb. 27, 2025 (GLOBE NEWSWIRE) — Lisata Therapeutics, Inc. (Nasdaq: LSTA) (“Lisata” or the “Company”), a clinical-stage pharmaceutical company developing innovative therapies for the treatment of advanced solid tumors and other serious diseases, provides a business update and reports financial results for the twelve months ended December 31, 2024.

“Throughout 2024 and now into early 2025, we continue to advance our development portfolio centered around our novel product candidate, certepetide,” stated David J. Mazzo, Ph.D., President and Chief Executive Officer of Lisata. “Following the encouraging preliminary results from the ASCEND and iLSTA trials reported at this year’s ASCO-GI Symposium, we remain committed to exploring the broad application of certepetide’s unique mechanism of action. Our development portfolio encompasses multiple clinical and preclinical trials evaluating certepetide for the treatment of various solid tumors, including pancreatic cancer, cholangiocarcinoma, glioblastoma, colon cancer, appendiceal cancer, and melanoma. In addition, we are exploring certepetide’s versatility in non-cancerous settings such as endometriosis. For Lisata, we expect 2025 to be a data-rich year and we look forward to sharing key developments as they become available.”

Development Portfolio Highlights

Certepetide as a treatment for solid tumors in combination with other anti-cancer agents

Certepetide (formerly LSTA1) is an internalizing RGD, or iRGD, (arginylglycylaspartic acid) cyclic peptide designed to selectively activate the C-end rule active transport mechanism in a tumor specific manner, resulting in systemically co-administered anti-cancer agents more efficiently penetrating and accumulating in the tumor. Additionally, certepetide has been shown to modify the tumor microenvironment, diminishing its immunosuppressive nature, enhancing cytotoxic T cell concentration and inhibiting the metastatic cascade. Lisata and its collaborators have amassed significant non-clinical data demonstrating enhanced delivery of various existing and emerging anti-cancer therapies, including chemotherapies, immunotherapies, and RNA-based therapeutics. To date, certepetide has also demonstrated favorable safety, tolerability, and clinical activity in completed and ongoing clinical trials designed to demonstrate its ability to enhance the effectiveness of standard-of-care (SoC) chemotherapy for pancreatic cancer as well as the combination of chemotherapy and immunotherapy in a variety of solid tumors. Certepetide has been awarded Fast Track designation (U.S.) and Orphan Drug Designation for pancreatic cancer (U.S. and E.U.) as well as Orphan Drug Designation for glioma, osteosarcoma, and cholangiocarcinoma (U.S.). Additionally, certepetide has received Rare Pediatric Disease Designation for osteosarcoma (U.S.). Currently, certepetide is the subject of multiple ongoing or planned clinical studies being conducted globally across several solid tumor types in combination with a variety of anti-cancer regimens, including:

ASCEND: Phase 2b double-blind, randomized (2:1 ratio), placebo-controlled trial evaluating two dosing regimens of certepetide in combination with SoC chemotherapy (gemcitabine/nab-paclitaxel) in patients with previously untreated metastatic pancreatic ductal adenocarcinoma (mPDAC). The trial is being conducted across 25 sites in Australia and New Zealand led by the Australasian Gastro-Intestinal Trials Group (AGITG) and coordinated by the National Health and Medical Research Council Clinical Trial Centre at the University of Sydney. Cohort A, with 95 patients receiving a single intravenous (IV) dose of certepetide 3.2 mg/kg or placebo in combination with SoC, completed enrollment in the third quarter of 2023. Preliminary Cohort A data presented at the 2025 ASCO-GI Symposium showed a positive trend in overall survival, including four complete responses in the certepetide-treated group compared to none in the placebo treated group. Data from Cohort B, with 63 patients receiving two IV doses of certepetide 3.2 mg/kg or placebo administered 4 hours apart in combination with SoC, is expected in the coming months with a final analysis of both cohorts available thereafter. The exact timing is dependent on accumulating the requisite number of endpoint events in Cohort B and is not something that can be accurately predicted.
BOLSTER: Phase 2a double-blind, placebo-controlled, multi-center, randomized trial in the U.S. evaluating certepetide in combination with SoC chemotherapy in first- and second-line cholangiocarcinoma (CCA). The Company achieved complete enrollment in first-line CCA nearly six months ahead of plan, accelerating anticipated topline data readout to mid-2025. Based on this rapid enrollment rate and the pressing need to improve treatment outcomes in patients that have progressed after first-line CCA treatment, a second cohort has been added to the BOLSTER trial evaluating certepetide in combination with SoC in subjects with second-line CCA. In September 2024, Lisata announced first patient treated in the second-line CCA cohort, with enrollment completion targeted for later this year.
CENDIFOX: Phase 1b/2a open-label trial in the U.S. evaluating certepetide in combination with neoadjuvant FOLFIRINOX based therapies in pancreatic, colon and appendiceal cancers. In December 2024, the Company announced enrollment completion in all three cohorts. The single-center study, conducted solely at the University of Kansas Cancer Center, was designed with a 3-cycle run-in period to ensure patients met specific criteria before receiving treatment. Of the 66 patients enrolled, 50 patients met the criteria and were treated with certepetide across three cohorts, including 24 with resectable or borderline resectable pancreatic cancer, 15 with high-grade colon or appendiceal cancer and peritoneal metastasis, and 11 with oligometastatic colon cancer. The trial will provide Lisata with valuable pre- and post-treatment tumor tissue data for immune profiling, along with long-term patient outcome information. CENDIFOX data are expected in the coming months; however, given this is an investigator-initiated study, the exact timing is not in Lisata’s control. The trial is funded by the University of Kansas Cancer Center and Lisata is supplying certepetide.
Qilu Pharmaceutical, the licensee of certepetide in the Greater China territory, is currently evaluating certepetide in combination with gemcitabine and nab-paclitaxel as a treatment for first-line mPDAC. During the 2023 ASCO Annual Meeting, Qilu Pharmaceutical presented an abstract sharing preliminary data from the study which corroborated previously reported findings from the Phase 1b/2a trial of certepetide plus gemcitabine and nab-paclitaxel conducted in Australia in patients with first-line mPDAC. Qilu has completed enrollment in its Phase 2 trial and data are expected in the coming months.
iLSTA: Phase 1b/2a randomized, single-blind, single-center, safety and pharmacodynamic trial in Australia, funded by WARPNINE Inc., is evaluating certepetide in combination with SoC chemotherapy (nab-paclitaxel and gemcitabine) plus SoC immunotherapy (durvalumab) versus SoC alone in patients with locally advanced non-resectable PDAC. An interim analysis of the iLSTA trial, presented at the 2025 ASCO GI Symposium, showed preliminary results from the first 17 of the 30 targeted patients, corroborating preclinical data that certepetide enhances the effectiveness of immunotherapy. With 27 of the 30 patients enrolled, enrollment remains on track to be completed by the first half of 2025.
A Lisata-funded Phase 2a, double-blind, placebo-controlled, randomized, proof-of-concept study evaluating certepetide in combination with SoC temozolomide versus temozolomide alone in patients with newly diagnosed glioblastoma multiforme (GBM) is being conducted across multiple sites in Estonia and Latvia and is planned to also include a site in Lithuania. The study is targeted to enroll 30 patients with a randomization of 2:1 in favor of the certepetide treatment group. Enrollment completion is targeted for the second half of 2025.
FORTIFIDE: Phase 1b/2a, double-blind, placebo-controlled, three-arm, randomized study in the U.S. evaluating the safety, tolerability, and efficacy of a 4-hour continuous infusion of certepetide in combination with SoC in subjects with first-line mPDAC. As part of this study, Lisata has engaged Haystack Oncology to use its MRD™ technology to measure circulating tumor DNA levels at multiple timepoints in patients throughout the study as an exploratory endpoint for analyzing the early therapeutic effect of certepetide. The Company expects to enroll the first patient in the study in the first half of 2025. However, in parallel, management is investigating a potentially faster and more cost-effective approach to achieving the study objective, which may become the preferred strategy.

Lisata has entered into multiple research collaborations, including a sponsored research agreement with the University of Cincinnati to assess certepetide in combination with bevacizumab (a VEGF inhibitor) in a preclinical murine model for the treatment of endometriosis. Lisata is also partnering with Valo Therapeutics (ValoTx) to investigate the benefits of combining certepetide with ValoTx’s platform technology, PeptiCRAd, an oncolytic virus, and a checkpoint inhibitor in a preclinical murine model for the treatment of melanoma.

In November 2024, Lisata entered into an Exclusive License and Collaboration Agreement with Kuva Labs, Inc. (“Kuva”), in which Lisata granted Kuva an exclusive license to explore the synergistic potential of certepetide as a targeting and delivery agent for Kuva’s NanoMark™ imaging technology in solid tumors. Under the agreement, Kuva will assume full responsibility for research, development, and commercialization costs, while Lisata will be responsible for supplying certepetide pursuant to a Clinical Supply Agreement. As consideration for the license, the Company is to receive a $1.0 million upfront license fee and is eligible for certain development and commercial milestone payments of up to $19.0 million, as well as a single-digit percentage royalty on net sales.

Full Year 2024 Financial Highlights

For the year ended December 31, 2024, revenue totaled $1.0 million in connection with an upfront license fee related to the Exclusive License and Collaboration Agreement with Kuva Labs, Inc. The Company did not have any revenue for the year ended December 31, 2023.

For the year ended December 31, 2024, operating expenses totaled $23.4 million compared to $25.7 million for the year ended December 31, 2023, representing a decrease of $2.3 million or 8.9%.

Research and development expenses were approximately $11.3 million for the year ended December 31, 2024, compared to $12.7 million for the year ended December 31, 2023, representing a decrease of approximately $1.4 million, or 11.0%. This was primarily due to a reduction in expenses associated with the Phase 2b ASCEND trial which completed enrollment in the prior year, lower spend on chemistry, manufacturing and controls, and lower equity expense.

General and administrative expenses were approximately $12.1 million for the year ended December 31, 2024, compared to $13.0 for the year ended December 31, 2023, representing a decrease of approximately $0.9 million or 6.9%. This was primarily due to one-off related severance costs in the prior year associated with the elimination of the Chief Business Officer position on May 1, 2023, a reduction in equity expenses, a decrease in directors’ and officers’ insurance premiums, and a reduction in spend on legal fees partially offset by one-off settlement related costs and an increase in consulting expenses.

Overall, net losses were $20.0 million and $20.8 million for the years ended December 31, 2024 and 2023, respectively.

Balance Sheet Highlights

As of December 31, 2024, Lisata had cash, cash equivalents, and marketable securities of approximately $31.2 million. Based on its existing and planned activities, the Company believes available funds will support current operations into the second quarter of 2026.

Net Operating Loss Sale

Earlier this year Lisata received $0.9 million in non-dilutive funding as an approved participant of the Technology Business Tax Certificate Transfer Program (the “Program”) sponsored by the New Jersey Economic Development Authority (NJEDA). The Program enables qualifying New Jersey-based biotechnology or technology companies to sell a percentage of their New Jersey net operating losses and research and development tax credits to unrelated qualifying corporations with a lifetime cap on the tax benefit sales of $20.0 million. To date, under the Program, the Company has sold $19.6 million in tax benefits for net proceeds of $18.4 million.

Conference Call Information

Lisata will hold a live conference call today, February 27, 2025, at 4:30 p.m. Eastern Time to discuss financial results, provide a business update, and answer questions.

Those wishing to participate must register for the conference call by way of the following link: CLICK HERE TO REGISTER. Registered participants will receive an email containing conference call details with dial-in options. To avoid delays, the Company encourages participants to dial into the conference call 15 minutes ahead of the scheduled start time.

A live webcast of the call will also be accessible under the Investors & News section of Lisata’s website and will be available for replay beginning two hours after the conclusion of the call for 12 months.

About Lisata Therapeutics

Lisata Therapeutics is a clinical-stage pharmaceutical company dedicated to the discovery, development and commercialization of innovative therapies for the treatment of advanced solid tumors and other major diseases. Lisata’s cyclic peptide product candidate, certepetide, is an investigational drug designed to activate a novel uptake pathway that allows co-administered or tethered anti-cancer drugs to selectively target and penetrate solid tumors more effectively. Lisata has already established noteworthy commercial and R&D partnerships based on its CendR Platform® technology. The Company expects to announce numerous milestones over the next 1.5 years and believes that its projected capital will fund operations into the second quarter of 2026, encompassing anticipated data milestones from its ongoing and planned clinical trials. Learn more about certepetide’s mechanism of action in our short film. For more information on the Company, please visit www.lisata.com.

Forward-Looking Statements

This communication contains “forward-looking statements” that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this communication regarding the Company’s clinical development programs are forward-looking statements. In addition, when or if used in this communication, the words “may,” “could,” “should,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “predict” and similar expressions and their variants, as they relate to Lisata or its management, may identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, the potential efficacy of certepetide as a treatment for patients with metastatic pancreatic ductal adenocarcinoma and other solid tumors; our beliefs about the potential uses and benefits of certepetide; statements relating to Lisata’s continued listing on the Nasdaq Capital Market; expectations regarding the capitalization, resources and ownership structure of Lisata; the approach Lisata is taking to discover and develop novel therapeutics; the adequacy of Lisata’s capital to support its future operations and its ability to successfully initiate and complete clinical trials; and the difficulty in predicting the time and cost of development of Lisata’s product candidates. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: results observed from a single patient case study are not necessarily indicative of final results and one or more of the clinical outcomes may materially change following more comprehensive reviews of the data and as more patient data becomes available, including the risk that unconfirmed responses may not ultimately result in confirmed responses to treatment after follow-up evaluations; the risk that product candidates that appeared promising in early research and clinical trials do not demonstrate safety and/or efficacy in larger-scale or later clinical trials; the safety and efficacy of Lisata’s product candidates, decisions of regulatory authorities and the timing thereof, the duration and impact of regulatory delays in Lisata’s clinical programs, Lisata’s ability to finance its operations, the likelihood and timing of the receipt of future milestone and licensing fees, the future success of Lisata’s scientific studies, Lisata’s ability to successfully develop and commercialize drug candidates, the timing for starting and completing clinical trials, rapid technological change in Lisata’s markets, the ability of Lisata to protect its intellectual property rights; and legislative, regulatory, political and economic developments. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors included in Lisata’s Annual Report on Form 10-K filed with the SEC on February 27, 2025, and in other documents filed by Lisata with the Securities and Exchange Commission. Except as required by applicable law, Lisata undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events, or otherwise.

Lisata Therapeutics Contact:

Investors:
Lisata Therapeutics
John Menditto
Vice President, Investor Relations and Corporate Communications
Phone: 908-842-0084
Email: [email protected]

Media:
ICR Healthcare
Elizabeth Coleman
Account Supervisor
Phone: 203-682-4783
Email: [email protected]

– Tables to follow –


Lisata Therapeutics, Inc.
Selected Financial Data
(in thousands, except per share data)

	Year Ended December 31,
		2024			2023
(in thousands, except per share data)
Statement of Operations Data:
Revenue	$	1,000		$	–

Research and development		11,334			12,734
General and administrative		12,075			12,974
Total operating expenses		23,409			25,708
Operating loss		(22,409	)		(25,708	)
Investment income, net		1,883			2,724
Other expense, net		(257	)		(186	)
Net loss before benefit from income taxes and noncontrolling interests		(20,783	)		(23,170	)
Benefit from income taxes		(798	)		(2,330	)
Net loss		(19,985	)		(20,840	)
Less – net income (loss) attributable to noncontrolling interests		–			–
Net loss attributable to Lisata Therapeutics, Inc. common stockholders	$	(19,985	)	$	(20,840	)

Basic and diluted loss per share attributable to Lisata Therapeutics, Inc. common stockholders	$	(2.40	)	$	(2.58	)
Weighted average common shares outstanding		8,329			8,073



	December 31, 2024			December 31, 2023

Balance Sheet Data:
Cash, cash equivalents and marketable securities	$	31,245		$	50,535
Total assets		35,002			54,694
Total liabilities		5,685			6,800
Total equity		29,317			47,894

This press release was published by a CLEAR® Verified individual.

February 27, 2025 4:28 pm

Inuvo Reports Record Fourth Quarter 2024 Revenue of $26.2 Million, 26% Year-Over-Year Growth and Net Income

Q4 2024 Net Income of $141 thousand and Adjusted EBITDA of $1.2 million

Inuvo management to host conference call today at 4:15 PM ET

LITTLE ROCK, Ark., Feb. 27, 2025 (GLOBE NEWSWIRE) — Inuvo, Inc. (NYSE American: INUV), a leading provider of artificial intelligence AdTech solutions, today provided a business update and announced its financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights:

Revenue was a record $26.2 million, a 26% increase compared to $20.8 million in Q4 2023
Gross profit increased 20% to $21.8 million, compared to $18.2 million in Q4 2023
Net income was $141 thousand, compared to net loss of $2.4 million for Q4 2023
Adjusted EBITDA was $1.2 million, compared to a loss of $1.2 million for Q4 2023

Full Year 2024 Financial Highlights:

Revenue increased 13% to $83.8 million, compared to $73.9 million in 2023
Gross profit increased 13% to $71.8 million, compared to $63.4 million in 2023
Net loss decreased by 45% to a loss of $5.8 million, compared to a net loss of $10.4 million in 2023
Adjusted EBITDA loss improved sixfold to $816,000 compared to $5.3 million in 2023
$230,000 in Net Cash from Operating activities was generated in 2024

2024 Operational Highlights:

Secured a Master Services Agreement with one of the largest retailers in the world
Signed 33 new agencies/brands and one new platform during the year
Secured a $10.0 million credit line in July
Launched enhancements to the IntentKey Self-Serve Platform, an advanced AI agent specifically designed for audience modeling

Richard Howe, CEO of Inuvo, stated, “Q4 2024 was a record-breaking quarter, delivering 26% year-over-year growth and generating $26.2 million in revenue—our largest quarter ever. This strong performance contributed to a 13% revenue increase for the full fiscal year. Over the past 18 quarters, we have sustained an approximately 7% compounded quarterly growth rate. This year, all our key financial metrics had strong year-over-year improvements. Notably, in Q4, we achieved positive net income and adjusted EBITDA.”

Mr. Howe continued, “We made a number of significant technological advancements in 2024, most notably the enhancements to the IntentKey Self-Serve Platform. This groundbreaking innovation democratizes advertising by allowing anyone of any caliber to describe and then immediately execute targeting, giving the AI nothing other than some simple audience descriptions.”

Financial Results for the Fourth Quarter and Full Year Ended December 31, 2024

Net revenue for the fourth quarter of 2024 totaled $26.2 million, compared to $20.8 million for the same period last year, a 26% year-over-year increase. The higher revenue was due to increasing demand within both Platforms and Agencies & Brands. Net revenue for the year ended December 31, 2024 totaled $83.8 million, compared to $73.9 million during the same period in 2023, a 13% year-over-year increase.

Cost of revenue for the fourth quarter of 2024, totaled $4.4 million compared to $2.6 million for the same period last year. Cost of revenue for the full year ended December 31, 2024, totaled $12.0 million, as compared to $10.5 million for the same period last year. The increase in the cost of revenue for the three months and full year ended December 31, 2024, as compared to the same period last year, was due to higher revenue within a Platform client this year.

Gross profit for the fourth quarter of 2024 and full year ended December 31, 2024 totaled $21.8 million and $71.8 million, respectively, as compared $18.2 million and $63.4 million, respectively, for the same periods last year. Gross profit margin for the fourth quarter of 2024 and the full year ended December 31, 2024 was approximately 83.1% and 85.6%, respectively, as compared to 87.3% and 85.8%, respectively, for the same periods last year.

Operating expenses for the fourth quarter of 2024 totaled $21.5 million, compared to $20.6 million for the same period last year. Operating expenses for the full year ended December 31, 2024 totaled $77.3 million, compared to $73.8 million for the same period last year. The higher operating expenses for the year ended December 31, 2024 was primarily driven by a 14.8% increase in Marketing costs compared to the same period in 2023. This increase was largely attributable to higher revenue from Platform advertisers.

Net interest expense/income for the fourth quarter of 2024 and the full year ended December 31, 2024 was approximately an expense of $103 thousand and an income of $267 thousand, respectively, compared to an income of approximately $8 thousand and an expense of $30 thousand for the same periods last year, respectively. The higher interest expense this year was due to increased borrowing from our line of credit.

Other expense/income for both the fourth quarter of 2024 and the full year ended December 31, 2024 was income of approximately $27 thousand, respectively, compared to income of approximately $0 and $15 thousand for the same periods last year, respectively. The income for this year was due to setup charges for new Platform partners. Last year’s income was due to unrealized and realized gains on trading securities.

Net income for the fourth quarter of 2024 was $141 thousand, or $0.00 per basic and diluted share, as compared to net loss of $2.4 million, or $0.02 per basic and diluted share, for the same period last year. Net loss for the full year ended December 31, 2024 totaled $5.8 million, or $0.04 per basic and diluted share, as compared to net loss of $10.4 million, or $0.08 per basic and diluted share, for the same period last year.

Adjusted EBITDA [see reconciliation table below] was approximately $1.2 million in the fourth quarter of 2024, compared to an Adjusted EBITDA loss of approximately $1.2 million for the same period last year. Adjusted EBITDA was a loss of approximately $816 thousand for the full year ended December 31, 2024, compared to a loss of approximately $5.3 million for the same period last year.

Liquidity and Capital Resources:

On December 31, 2024, Inuvo had $2.5 million in cash and cash equivalents, an unused working capital facility of $10.0 million and no debt.

As of February 21, 2025, Inuvo had 142,795,483 common shares issued and outstanding.

Conference Call Details:

Date: Thursday, February 27, 2025
Time: 4:15 p.m. Eastern Standard Time
Toll-free Dial-in Number: 1-800-717-1738
International Dial-in Number: 1-646-307-1865
Conference ID: 11158080
Webcast Link: HERE

A telephone replay will be available through Thursday, March 13, 2025. To access the replay, please dial 1- 844-512-2921 (domestic) or 1-412-317-6671 (international). At the system prompt, please enter the code 11158080 followed by the # sign. You will then be prompted for your name, company, and phone number. Playback will then automatically begin.

About Inuvo

Inuvo^®, Inc. (NYSE American: INUV) is a market leader in Artificial Intelligence built for advertising. Its IntentKey AI solution is a first-of-its-kind proprietary and patented technology capable of identifying and actioning to the reasons why consumers are interested in products, services, or brands, not who those consumers are. To learn more, visitwww.inuvo.com.

Safe Harbor / Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, without limitation risks detailed from time to time in our filings with the Securities and Exchange Commission (the “SEC”), and represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in Inuvo, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 as filed on February 27, 2025, and our other filings with the SEC. Inuvo cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Inuvo does not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events or otherwise. Inuvo further expressly disclaims any written or oral statements made by a third-party regarding the subject matter of this press release. The information which appears on our websites and our social media platforms is not part of this press release.

Inuvo Company Contact:

Wally Ruiz
Chief Financial Officer
Tel (501) 205-8397
[email protected]

Investor Relations:

David Waldman / Natalya Rudman
Crescendo Communications, LLC
Tel: (212) 671-1020
[email protected]

(tables follow)

INUVO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended						Twelve Months Ended
	December 31			December 31			December 31			December 31
		2024			2023			2024			2023
Net revenue	$	26,189,924		$	20,842,095		$	83,793,859		$	73,911,528
Cost of revenue		4,433,905			2,643,543			12,033,777			10,477,272
Gross profit		21,756,019			18,198,552			71,760,082			63,434,256
Operating expenses:		83.1	%		87.3	%		85.6	%		85.8	%
Marketing costs		17,122,706			15,212,600			59,663,061			51,982,572
Compensation		2,703,309			3,591,109			12,065,783			13,793,309
General and administrative		1,709,887			1,821,821			5,545,049			8,050,590
Total operating expenses		21,535,902			20,625,530			77,273,893			73,826,771
Operating income (loss)		220,117			(2,426,978	)		(5,513,811	)		(10,392,515	)
Interest expense (income), net		102,910			(7,884	)		266,772			29,570
Other income		26,812			–			26,812			14,668
Income tax expense (benefit)		2,678			(17,764	)		8,030			(17,764	)
Net income (loss)		141,341			(2,401,330	)		(5,761,801	)		(10,389,653	)
Other comprehensive income:
Unrealized loss on marketable securities		–			–			–			84,868
Comprehensive income (loss)	$	141,341		$	(2,401,330	)	$	(5,761,801	)	$	(10,304,785	)

Net loss per share, basic and diluted	$0.00			($0.02		)	($0.04		)	($0.08		)
Weighted average shares outstanding:
Basic		140,494,192			127,381,051			139,968,374			131,116,370
Diluted		140,494,192			127,381,051			139,968,374			131,116,370

INUVO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS


	December 31		December 31
	2024		2023
Assets

Cash and cash equivalent	$	2,459,245	$	4,440,454
Accounts receivable, net		12,545,771		9,226,956
Prepaid expenses and other current assets		639,805		1,076,121
Total current assets		15,644,821		14,743,531

Property and equipment, net		1,792,903		1,680,788

Goodwill		9,853,342		9,853,342
Intangible assets, net of accumulated amortization		3,897,875		4,664,791
Other assets		1,006,990		1,431,692

Total assets	$	32,195,931	$	32,374,144

Liabilities and Stockholders’ Equity

Current liabilities
Accounts payable	$	8,422,351	$	6,432,120
Accrued expenses and other current liabilities		9,463,537		8,100,354
Total current liabilities		17,885,888		14,532,474

Long-term liabilities		835,271		859,484

Total stockholders’ equity		13,474,772		16,982,186
Total liabilities and stockholders’ equity	$	32,195,931	$	32,374,144

RECONCILIATION OF LOSS FROM CONTINUING OPERATIONS BEFORE TAXES TO ADJUSTED EBITDA
(unaudited)

	Three Months Ended					Twelve Months Ended
		December 31	December 31			December 31			December 31
		2024		2023			2024			2023
Net income (loss)		141,341		(2,401,330	)	$	(5,761,801	)	$	(10,389,653	)
Interest expense (income), net		102,910		(7,884	)		266,772			29,570
Income tax expense (benefit)		2,678		(17,764	)		8,030			(17,764	)
Depreciation and amortization on PP&E		446,608		425,106			1,745,261			1,670,868
Amortization		123,412		264,523			824,272			1,080,690
EBITDA		816,949		(1,737,349	)		(2,917,466	)		(7,626,289	)
Stock-based compensation		413,911		514,613			1,501,444			1,986,296
Non recurring items:
Unrealized loss on marketable securities										14,668
Doubtful account reserve										361,097
Impairment & amortization of services agreement							600,000
Adjusted EBITDA		1,230,860		(1,222,736	)		(816,022	)		(5,264,228	)

Reconciliation of Operating Loss to EBITDA and Adjusted EBITDA

We present EBITDA and Adjusted EBITDA as a supplemental measure of our performance. We defined EBITDA as Net loss plus (i) interest expense, (ii) income tax expense, (iii) depreciation, and (iv) amortization. We further define Adjusted EBITDA as EBITDA plus (v) stock-based compensation and (vi) certain identified expenses that are not expected to recur or be representative of future ongoing operation of the business. These adjustments are itemized above. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same or similar to some of the adjustments in the presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

February 27, 2025 4:28 pm

Crinetics Pharmaceuticals Reports Fourth Quarter and Full Year 2024 Financial Results and Provides Business Update

Commercial Preparations On-Track Ahead of September 25, 2025 PDUFA Date Including Regulatory Review Process, Organizational Build, and Key Stakeholder Engagement Efforts

Expecting to Initiate Four Late-Stage Trials and Additional Early-Stage Trials from Development Pipeline in 2025

Strong Financial Position with $1.4B Cash with Runway into 2029

Management Hosting Conference Call at 4:30 p.m. ET Today

SAN DIEGO, Feb. 27, 2025 (GLOBE NEWSWIRE) — Crinetics Pharmaceuticals, Inc. (Nasdaq: CRNX), a clinical stage pharmaceutical company focused on the discovery, development and commercialization of novel therapeutics for endocrine diseases and endocrine-related tumors, today reported financial results for the fourth quarter and full year ended December 31, 2024.

“2024 was a year of significant progress and execution across all fronts,” said Scott Struthers, Ph.D., founder and chief executive officer of Crinetics. “The acceptance of our NDA for paltusotine in acromegaly was a key achievement, and under the leadership of our new chief commercial officer, Isabel Kalofonos, our commercial team is preparing for the expected launch, which will be a truly significant milestone for the company. Our ongoing clinical programs continue to yield promising results, paving the way to initiate four late-stage trials this year. We’re also advancing four new candidates toward IND filing, underscoring the power of our internal research and development engine. Our balance sheet empowers us to execute our strategic vision over the next several years, and we are excited to bring on board a new chief financial officer, Toby Schilke, to provide financial leadership during this next stage of growth. Building on the strong foundation we’ve established, 2025 is positioned to be a transformative year for Crinetics.”

Full Year 2024 and Recent Highlights:

Strengthened leadership team with key appointments across finance, commercial, medical and clinical development to strengthen organization ahead of launch. In February 2025, Crinetics appointed Tobin “Toby” Schilke as Chief Financial Officer. In December 2024, Crinetics appointed Isabel Kalofonos as Chief Commercial Officer. In April 2024, Crinetics appointed Lise Kjems, M.D., Ph.D. as Senior Vice President of Endocrinology Clinical Research, and in October 2024, appointed Bin Zhang, M.D., M.Sc. as Senior Vice President of Oncology Clinical Development. In May 2024, Crinetics appointed Robert M. Cuddihy, M.D., as Senior Vice President of Medical Affairs.
New Drug Application (NDA) for paltusotine for the treatment of acromegaly filed and accepted for review by U.S. Food and Drug Administration (FDA). This submission was based on positive topline results from the PATHFNDR-1 trial reported in September 2023 and from the PATHFNDR-2 trial reported in March 2024.
European Medicines Agency
(EMA) granted paltusotine Orphan Drug Designation (ODD) for the treatment of acromegaly. Designation was given following a positive recommendation from the EMA Committee for Orphan Medicinal Products, highlighting the potential impact of paltusotine for acromegaly patients in the EU.
Phase 2 open-label study of paltusotine in carcinoid syndrome reported positive results. In March 2024, Crinetics reported positive topline results; paltusotine was shown to result in rapid and sustained reductions in frequency and severity of flushing episodes and bowel movements.
Phase 2 TouCAHn open-label study of atumelnant in congenital adrenal hyperplasia (CAH) reported positive results. In January 2025, Crinetics reported positive topline results. Atumelnant administration was shown to result in rapid, substantial and sustained statistically significant reduction in A4 levels, the key biomarker for disease control. Atumelnant was well-tolerated and treatment with atumelnant was associated with significant clinical improvements.
Debut of novel Nonpeptide Drug Conjugate (NDC) platform. Presented data from CRN09682 at the North American Neuroendocrine Tumor Society (NANETS) Annual Meeting in November 2024.
Development candidates nominated in multiple programs. Crinetics has identified an oral thyroid stimulating hormone (TSH) receptor antagonist development candidate for the potential treatment of Graves’ disease, including hyperthyroidism and thyroid eye disease (TED); an oral parathyroid hormone (PTH) antagonist development candidate for the treatment of hyperparathyroidism; and an SST3 agonist development candidate for the treatment of autosomal dominant polycystic kidney disease (ADPKD).
Strengthened balance sheet. Current cash position of $1.4B is expected to support our business activities into 2029.

Key Upcoming Milestones:

FDA Prescription Drug User Fee Act (PDUFA) target action date of September 25, 2025 for paltusotine NDA for the treatment and maintenance therapy of acromegaly.
Enrollment of the first patient in the pivotal Phase 3 trial of paltusotine in carcinoid syndrome is anticipated in the second quarter of 2025.
Crinetics expects to begin enrollment of patients in two pivotal studies of atumelnant in CAH: Phase 3 in adults and Phase 2b/3 in pediatrics.
Crinetics is also planning a study of atumelnant in Cushing’s disease. Enrollment of patients is expected to begin in late 2025 or early 2026.
Four novel IND filings expected in 2025 for the development candidates nominated in 2024.

Fourth Quarter and Full Year 2024 Financial Results:

Research and development expenses were $66.6 million and $240.2 million for the three months and full year ended December 31, 2024, compared to $45.6 million and $168.5 million for the same periods in 2023. The increases were primarily attributable to an increase in personnel costs of $12.6 million for the quarter ended December 31, 2024 and $43.4 million for the year ended December 31, 2024, and increased clinical and preclinical development activities of $5.1 million and $10.2 million for the quarter and year ended December 31, 2024, respectively.
General and administrative expenses were $28.2 million and $99.7 million for the three months and full year months ended December 31, 2024, compared to $17.1 million and $58.1 million for the same periods in 2023. The increases were primarily driven by an increase in personnel costs of $5.4 million for the quarter ended December 31, 2024 and $23.8 million for the year ended December 31, 2024.
Net loss for the three months ended December 31, 2024, was $80.6 million, compared to a net loss of $60.1 million for the same period in 2023. For the year ended December 31, 2024, the company’s net loss was $298.4 million compared to a net loss of $214.5 million for the year ended December 31, 2023.
There were no revenues for the three months ended December 31, 2024 or 2023. Revenues were $1.0 million for the full year ended December 31, 2024, compared to $4.0 million for the same period in 2023. Revenues for 2024 were primarily derived from the paltusotine licensing agreement with Sanwa Kagaku Kenkyusho Co., Ltd. License revenues for 2023 were derived from licensing agreements with Sanwa Kagaku Kenkyusho Co., Ltd. and Cellular Longevity, Inc.
Cash, cash equivalents, and investments totaled $1.4 billion as of December 31, 2024, compared to $558.6 million as of December 31, 2023. This includes gross proceeds of $350 million from the February 2024 private placement equity financing and $575 million from the October 2024 public offering. Based on current projections, Crinetics expects that its cash, cash equivalents and short-term investments will be sufficient to fund its current operating plan into 2029. For 2025, we anticipate our cash used in operations to be between $340 and $380 million.

Conference Call and Webcast Details

Management will hold a live conference call and webcast today, Thursday, February 27 at 4:30 p.m. ET. To participate, please dial 1-800-267-6316 (domestic) or 1-203-518-9783 (international) and refer to Conference ID CRNXQ4. To access the webcast, the direct link (HERE) or visit the Events section of the Crinetics website. Following the live event, the webcast will be archived on the Investor Relations section of www.crinetics.com.

About Crinetics Pharmaceuticals
Crinetics Pharmaceuticals is a clinical stage pharmaceutical company focused on the discovery, development, and commercialization of novel therapeutics for endocrine diseases and endocrine-related tumors. Crinetics’ lead development candidate, paltusotine, is the first investigational once-daily, oral, selective somatostatin receptor type 2 (SST2) nonpeptide agonist that is in clinical development for acromegaly and carcinoid syndrome associated with neuroendocrine tumors. Atumelnant is currently in development for congenital adrenal hyperplasia and ACTH-dependent Cushing’s syndrome. All of the company’s drug candidates are orally delivered, small molecule, new chemical entities resulting from in-house drug discovery efforts, including additional discovery programs addressing a variety of endocrine conditions such as hyperparathyroidism, polycystic kidney disease, Graves’ disease (including thyroid eye disease), diabetes, obesity and GPCR-targeted oncology indications.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release are forward-looking statements, including statements regarding the plans and timelines for the clinical development of atumelnant and paltusotine, including the therapeutic potential and clinical benefits or safety profile thereof; the expected timing of the PDUFA target action date for our NDA submission to the FDA for paltusotine for the treatment or maintenance of treatment of acromegaly in the United States, and the plans and timelines for the commercial launch paltusotine if approved; the expected timing of initiation of a Phase 3 program of paltusotine for carcinoid syndrome and FDA consultation; the expected timing of enrollment in two additional studies of atumelnant in CAH; the potential for and expected timing of further studies in Cushing’s disease; the therapeutic potential for our development candidates; the expected timing for IND-enabling studies and potential IND-filings in our development candidates to transition to clinical development; the expected timing of additional research pipeline updates; and the expected timing through which our cash, cash equivalents, and short-term investments will fund our operating plans. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “upcoming” or “continue” or the negative of these terms or other similar expressions. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, including, without limitation, initial or topline data that we report may change following completion or a more comprehensive review of the data related to the clinical studies and such data may not accurately reflect the complete results of a clinical study, and the FDA and other regulatory authorities may not agree with our interpretation of such results; we may not be able to obtain, maintain and enforce our patents and other intellectual property rights, and it may be prohibitively difficult or costly to protect such rights; geopolitical events may disrupt Crinetics’ business and that of the third parties on which it depends, including delaying or otherwise disrupting its clinical studies and preclinical studies, manufacturing and supply chain, or impairing employee productivity; unexpected adverse side effects or inadequate efficacy of the Company’s product candidates that may limit their development, regulatory approval and/or commercialization; the Company’s dependence on third parties in connection with product manufacturing, research and preclinical and clinical testing; the success of Crinetics’ clinical studies and nonclinical studies; regulatory developments in the United States and foreign countries; clinical studies and preclinical studies may not proceed at the time or in the manner expected, or at all; the timing and outcome of research, development and regulatory review is uncertain, and Crinetics’ drug candidates may not advance in development or be approved for marketing; Crinetics may use its capital resources sooner than expected; any future impacts to our business resulting from geopolitical developments outside our control; and the other risks and uncertainties described in the Company’s periodic filings with the Securities and Exchange Commission (SEC). The events and circumstances reflected in the company’s forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Additional information on risks facing Crinetics can be found under the heading “Risk Factors” in Crinetics’ periodic filings with the SEC, including its annual report on Form 10-K for the year ended December 31, 2024. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as required by applicable law, Crinetics does not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.


CRINETICS PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED FINANCIAL STATEMENT DATA (In thousands, except per share data) (Unaudited)

	Three months ended December 31,						Twelve months ended December 31,
STATEMENTS OF OPERATIONS DATA:	2024			2023			2024			2023

Revenues	$	—		$	—		$	1,039		$	4,013
Operating expenses:
Research and development		66,566			45,580			240,156			168,527
General and administrative		28,179			17,078			99,737			58,094
Total operating expenses		94,745			62,658			339,893			226,621
Loss from operations		(94,745	)		(62,658	)		(338,854	)		(222,608	)
Total other income, net		14,150			6,762			40,916			13,277
Loss before equity method investment		(80,595	)		(55,896	)		(297,938	)		(209,331	)
Loss on equity method investment		—			(4,201	)		(470	)		(5,198	)
Net loss	$	(80,595	)	$	(60,097	)	$	(298,408	)	$	(214,529	)
Net loss per share – basic and diluted	$	(0.88	)	$	(0.90	)	$	(3.69	)	$	(3.69	)
Weighted-average shares – basic and diluted		91,494			67,146			80,783			58,071

BALANCE SHEET DATA:	December 31, 2024			December 31, 2023

Cash, cash equivalents and investments	$	1,354,069		$	558,555
Working capital	$	1,315,704		$	530,211
Total assets	$	1,434,592		$	635,353
Total liabilities	$	109,787		$	96,247
Accumulated deficit	$	(952,110	)	$	(653,702	)
Total stockholders’ equity	$	1,324,805		$	539,106

Investors:

Gayathri Diwakar
Head of Investor Relations
[email protected]
(858) 345-6340

Media:

Natalie Badillo
Head of Corporate Communications
[email protected]
(858) 345-6075

February 27, 2025 4:28 pm

Organogenesis Holdings Inc. Reports Fourth Quarter 2024 Financial Results

CANTON, Mass., Feb. 27, 2025 (GLOBE NEWSWIRE) — Organogenesis Holdings Inc. (Nasdaq: ORGO), a leading regenerative medicine and tissue innovations company focused on empowering healing through the development, manufacturing, and sale of products for the advanced wound care, and surgical and sports medicine markets, today reported financial results for the fourth quarter and the year ended December 31, 2024.

Fourth Quarter 2024 Financial Results Summary:

Net revenue of $126.7 million for the fourth quarter of 2024, an increase of $27.0 million compared to net revenue of $99.7 million for the fourth quarter of 2023. Net revenue for the fourth quarter of 2024 consists of:
- Net revenue from Advanced Wound Care products of $118.6 million, an increase of 27% from the fourth quarter of 2023.
- Net revenue from Surgical & Sports Medicine products of $8.1 million, an increase of 24% from the fourth quarter of 2023.
Net income of $7.7 million for the fourth quarter of 2024, compared to net loss of $0.6 million for the fourth quarter of 2023, an increase in net income of $8.3 million.
Adjusted EBITDA of $18.2 million for the fourth quarter of 2024, compared to Adjusted EBITDA of $7.5 million for the fourth quarter of 2023, an increase of $10.7 million.
Adjusted net income of $8.8 million for the fourth quarter of 2024, compared to adjusted net income of $1.9 million for the fourth quarter of 2023, an increase of $6.8 million.

Fiscal Year 2024 Financial Results Summary:

Net revenue of $482.0 million for the year ended December 31, 2024, an increase of $48.9 million compared to net revenue of $433.1 million for the year ended December 31, 2023. Net revenue for the year ended December 31, 2024 consists of:
- Net revenue from Advanced Wound Care products of $453.6 million, an increase of 12% year over year.
- Net revenue from Surgical & Sports Medicine products of $28.4 million, an increase of 3% year over year.
Net income of $0.9 million for the year ended December 31, 2024, compared to net income of $4.9 million for the year ended December 31, 2023, a decrease of $4.0 million.
Adjusted EBITDA of $49.8 million for the year ended December 31, 2024, compared to Adjusted EBITDA of $42.6 million for the year ended December 31, 2023, an increase of $7.2 million.
Adjusted net income of $20.5 million for the year ended December 31, 2024, compared to adjusted net income of $12.7 million for the year ended December 31, 2023, an increase of $7.8 million.

“Our 2024 results exceeded expectations in a difficult environment, underscoring our strong execution, brand equity and the trust of our customers to help them navigate this complex market,” said Gary S. Gillheeney, Sr., President, Chief Executive Officer and Chair of the Board for Organogenesis. “In 2025, we will continue to focus on our customers while we collaborate with policy and law makers to craft a solution that addresses spending while ensuring access to safe and effective therapies for all patients.”

Mr. Gillheeney, Sr. continued: “We expect to meet a key strategic milestone in 2025 by delivering the ReNu BLA submission by the end of the year. We believe this is a transformational opportunity for Organogenesis in that, if approved, ReNu will potentially address an unmet clinical need for all patients suffering from knee OA. ”

Fourth Quarter 2024 Financial Results:

	Three Months Ended December 31,				Change
	2024		2023		$		%
	(in thousands, except for percentages)
Advanced Wound Care	$	118,585	$	93,165	$	25,420		27	%
Surgical & Sports Medicine		8,071		6,486		1,585		24	%
Net revenue	$	126,656	$	99,651	$	27,005		27	%

Net revenue for the fourth quarter of 2024 was $126.7 million, compared to $99.7 million for the fourth quarter of 2023, an increase of $27.0 million, or 27%. The increase in net revenue was driven by an increase of $25.4 million, or 27%, in net revenue for Advanced Wound Care products, and an increase of $1.6 million, or 24%, in net revenue for Surgical & Sports Medicine products.

Gross profit for the fourth quarter of 2024 was $95.6 million, or 75% of net revenue, compared to $71.9 million, or 72% of net revenue for the fourth quarter of 2023, an increase of $23.7 million, or 33%.

Operating expenses for the fourth quarter of 2024 were $85.4 million compared to $73.2 million for the fourth quarter of 2023, an increase of $12.2 million, or 17%. R&D expense was $11.5 million for the fourth quarter of 2024, compared to $11.8 million for the fourth quarter of 2023, a decrease of $0.3 million, or 3%. Selling, general and administrative expenses were $73.9 million for the fourth quarter of 2024, compared to $61.4 million for the fourth quarter of 2023, an increase of $12.5 million, or 20%.

Operating income for the fourth quarter of 2024 was $10.2 million, compared to an operating loss of $1.3 million for the fourth quarter of 2023, an increase in operating income of $11.5 million, or 905%.

Total other expense, net, for the fourth quarter of 2024 was less than $0.1 million, compared to $0.5 million for the fourth quarter of 2023, a decrease of $0.5 million, or 95%.

Net income for the fourth quarter of 2024 was $7.7 million, or $0.05 per share, compared to a net loss of $0.6 million, or $0.00 per share, for the fourth quarter of 2023, an increase in net income of $8.3 million, or $0.05 per share.

Adjusted EBITDA was $18.2 million for the fourth quarter of 2024, compared to $7.5 million for the fourth quarter of 2023, an increase of $10.7 million, or 143%.

Adjusted net income was $8.8 million for the fourth quarter of 2024, compared to $1.9 million for the fourth quarter of 2023, an increase of $6.8 million, or 354%.

As of December 31, 2024, the Company had $136.2 million in cash, cash equivalents and restricted cash and no outstanding debt obligations, compared to $104.3 million in cash, cash equivalents and restricted cash and $66.2 million in net debt obligations as of December 31, 2023.

Fiscal Year 2024 Financial Results:

	Year Ended December 31,				Change
	2024		2023		$		%
	(in thousands, except for percentages)
Advanced Wound Care	$	453,639	$	405,514	$	48,125		12	%
Surgical & Sports Medicine		28,404		27,626		778		3	%
Net revenue	$	482,043	$	433,140	$	48,903		11	%

Net revenue for the year ended December 31, 2024 was $482.0 million, compared to $433.1 million for the year ended December 31, 2023, an increase of $48.9 million, or 11%. The increase in net revenue was driven by an increase of $48.1 million, or 12%, in net revenue for Advanced Wound Care products and an increase of $0.8 million, or 3%, in net revenue for Surgical & Sports Medicine products.

Gross profit for the year ended December 31, 2024 was $366.3 million, or 76% of net revenue, compared to $326.7 million, or 75% of net revenue for the year ended December 31, 2023, an increase of $39.6 million, or 12%.

Operating expenses for the year ended December 31, 2024 were $367.6 million compared to $314.1 million for the year ended December 31, 2023, an increase of $53.5 million or 17%. R&D expense was $50.3 million for the year ended December 31, 2024, compared to $44.4 million for the year ended December 31, 2023, an increase of $5.9 million, or 13%. Selling, general and administrative expenses were $294.5 million for the year ended December 31, 2024, compared to $269.8 million for the year ended December 31, 2023, an increase of $24.8 million, or 9%. For the year ended December 31, 2024, the Company recorded impairment and write down expenses of $18.8 million and $4.0 million, respectively.

Operating loss for the year ended December 31, 2024 was $1.3 million, compared to operating income of $12.5 million for the year ended December 31, 2023, a decrease in operating income of $13.8 million, or 110%.

Total other expense, net, for the year ended December 31, 2024, was $1.5 million, compared to $2.1 million for the year ended December 31, 2023, a decrease of $0.6 million, or 29%.

Net income for the year ended December 31, 2024 was $0.9 million, or $(0.01) per share, compared to net income of $4.9 million or $0.04 per share, for the year ended December 31, 2023, a decrease in net income of $4.0 million, or $(0.05) per share.

Adjusted EBITDA was $49.8 million for the year ended December 31, 2024, compared to $42.6 million for the year ended December 31, 2023, an increase of $7.2 million, or 17%.

Adjusted net income was $20.5 million for the year ended December 31, 2024, compared to $12.7 million for the year ended December 31, 2023, an increase in adjusted net income of $7.8 million, or 61%.

Fiscal Year 2025 Guidance:

For the year ending December 31, 2025, the Company expects:

Net revenue between $480.0 million and $535.0 million, representing a range of roughly flat to an increase of approximately 11% year-over-year, as compared to net revenue of $482.0 million for the year ended December 31, 2024.
- The 2025 net revenue guidance range assumes:
  - Net revenue from Advanced Wound Care products between $450.0 million and $500.0 million, a decrease of 1% to an increase of 10% year-over-year as compared to net revenue of $453.6 million for the year ended December 31, 2024.
  - Net revenue from Surgical & Sports Medicine products between $30.0 million and $35.0 million, an increase of 6% to 23% year-over-year as compared to net revenue of $28.4 million for the year ended December 31, 2024.
Net income between $9.5 million and $38.8 million and adjusted net income between $15.3 million and $44.6 million.
EBITDA between $27.0 million and $66.6 million and Adjusted EBITDA between $43.6 million and $83.2 million.

Fourth Quarter Earnings Conference Call:

Management will host a conference call at 5:00 p.m. Eastern Time today to discuss the results of the quarter and fiscal year, and to provide a corporate update with a question and answer session. Those who would like to participate may access the live webcast here, or access the teleconference here. The live webcast can also be accessed via the company’s website at investors.organogenesis.com. The webcast will be archived on the company website for approximately one year.

ORGANOGENESIS HOLDINGS INC. UNAUDITED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share and per share data)

	December 31,
	2024			2023
Assets
Current assets:
Cash and cash equivalents	$	135,571		$	103,840
Restricted cash		580			498
Accounts receivable, net of allowance for credit losses of $9,576 and $6,860		109,861			81,999
Inventories, net		26,219			28,253
Prepaid expenses and other current assets		13,710			10,454
Total current assets		285,941			225,044
Property and equipment, net		89,128			116,228
Intangible assets, net		12,468			15,871
Goodwill		28,772			28,772
Operating lease right-of-use assets, net		37,110			40,118
Deferred tax asset, net		39,462			28,002
Other assets		5,005			5,990
Total assets	$	497,886		$	460,025

Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ Equity
Current liabilities:
Current portion of term loan	$	—		$	5,486
Current portion of finance lease obligations		1,170			1,081
Current portion of operating lease obligations – related party		3,671			8,413
Current portion of operating lease obligations		4,272			4,731
Accounts payable		28,911			30,724
Accrued expenses and other current liabilities		39,453			30,074
Total current liabilities		77,477			80,509
Term loan, net of current portion		—			60,745
Finance lease obligations, net of current portion		718			1,888
Operating lease obligations, net of current portion – related party		8,283			11,954
Operating lease obligations, net of current portion		25,198			25,053
Other liabilities		894			1,213
Total liabilities		112,570			181,362

Commitments and contingencies (Note 20)

Series A redeemable convertible preferred stock, $0.0001 par value; 130,000 and 0 shares authorized, issued and outstanding at December 31, 2024 and 2023, respectively; liquidation preference of $131,387 and $0 at December 31, 2024 and 2023, respectively.		122,419			—

Stockholders’ equity:
Preferred stock, $0.0001 par value; 870,000 and 1,000,000 shares authorized at December 31, 2024 and 2023, respectively; none issued or outstanding		—			—
Common stock, $0.0001 par value; 400,000,000 shares authorized; 126,458,784 and 132,044,944 shares issued; 125,730,236 and 131,316,396 shares outstanding at December 31, 2024 and 2023, respectively		13			13
Additional paid-in capital		302,994			319,621
Accumulated deficit		(40,110	)		(40,971	)
Total stockholders’ equity		262,897			278,663
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity	$	497,886		$	460,025

ORGANOGENESIS HOLDINGS INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (amounts in thousands, except share and per share data)

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Net revenue	$	126,656		$	99,651		$	482,043		$	433,140
Cost of goods sold		31,051			27,769			115,741			106,481
Gross profit		95,605			71,882			366,302			326,659
Operating expenses:
Selling, general and administrative		73,856			61,381			294,513			269,754
Research and development		11,530			11,770			50,271			44,380
Impairment of property and construction		—			—			18,842			—
Write down of capitalized internal-use software costs		—			—			3,959			—
Total operating expenses		85,386			73,151			367,585			314,134
Income (loss) from operations		10,219			(1,269	)		(1,283	)		12,525
Other expense, net:
Interest expense, net		61			(502	)		(1,544	)		(2,190	)
Other income (expense), net		(27	)		(25	)		20			57
Total other income (expense), net		34			(527	)		(1,524	)		(2,133	)
Net income (loss) before income taxes		10,253			(1,796	)		(2,807	)		10,392
Income tax (expense) benefit		(2,580	)		1,228			3,668			(5,447	)
Net income (loss) and comprehensive income (loss)	$	7,673		$	(568	)	$	861		$	4,945
Accretion of redeemable convertible preferred stock to redemption value		(412	)		—			(412	)		—
Cumulative dividend on redeemable convertible preferred stock		(1,386	)		—			(1,386	)		—
Net income (loss) attributable to common stockholders		5,875			(568	)		(937	)		4,945
Net income (loss), per share:
Basic	$	0.05		$	0.00		$	(0.01	)	$	0.04
Diluted	$	0.04		$	0.00		$	(0.01	)	$	0.04
Weighted-average common shares outstanding
Basic		129,679,843			130,916,950			131,673,278			131,231,317
Diluted		132,162,370			131,857,509			131,673,278			132,746,727

ORGANOGENESIS HOLDINGS INC. UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS (amounts in thousands, except share and per share data)

	Year Ended December 31,
	2024			2023			2022
Cash flows from operating activities:
Net income	$	861		$	4,945		$	15,532
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		13,623			10,448			5,845
Amortization of intangible assets		3,403			4,918			4,883
Reduction in the carrying value of right-of-use assets		8,348			8,083			7,303
Non-cash interest expense		394			427			434
Deferred interest expense		305			490			501
Deferred tax expense (benefit)		(10,719	)		2,012			1,980
Loss on disposal of property and equipment		1,140			235			4,482
Loss on lease termination		—			559			—
Loss on extinguishment of term loan		215			—			—
Provision recorded for credit losses		3,938			1,297			1,781
Adjustment for excess and obsolete inventories		8,210			6,580			9,648
Stock-based compensation		10,578			8,996			6,552
Impairment of property and construction (Note 8)		18,842			—			—
Write down of capitalized internal-use software costs (Note 8)		3,959			—			—
Changes in operating assets and liabilities:
Accounts receivable		(31,800	)		5,539			(8,770	)
Inventories		(6,204	)		(8,179	)		(9,410	)
Prepaid expenses and other current and other assets		(2,549	)		(10,115	)		(378	)
Operating leases		(14,066	)		(8,439	)		(7,006	)
Accounts payable		(2,372	)		(108	)		3,260
Accrued expenses and other current liabilities		9,164			3,138			(11,850	)
Other liabilities		(1,062	)		91			72
Net cash provided by operating activities		14,208			30,917			24,859
Cash flows from investing activities:
Purchases of property and equipment		(10,032	)		(24,364	)		(33,898	)
Net cash used in investing activities		(10,032	)		(24,364	)		(33,898	)
Cash flows from financing activities:
Term loan repayments under the 2021 Credit Agreement		(66,563	)		(4,688	)		(2,813	)
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs		120,688			—			—
Payments for the repurchase of common stock		(25,479	)		—			—
Principal repayments of finance lease obligations		(1,081	)		(485	)		(200	)
Proceeds from the exercise of stock options		1,247			—			2,070
Payments of withholding taxes in connection with RSUs vesting		(1,175	)		(332	)		(648	)
Payments of deferred acquisition consideration		—			—			(608	)
Net cash provided by (used in) financing activities		27,637			(5,505	)		(2,199	)
Change in cash, cash equivalents and restricted cash		31,813			1,048			(11,238	)
Cash, cash equivalents, and restricted cash, beginning of year		104,338			103,290			114,528
Cash, cash equivalents, and restricted cash, end of year	$	136,151		$	104,338		$	103,290
Supplemental disclosure of cash flow information:
Cash paid for interest	$	4,970		$	5,436		$	2,649
Cash paid for income taxes	$	6,965		$	3,052		$	1,201
Supplemental disclosure of non-cash investing and financing activities:
Cumulative effect adjustment for adoption of ASU No. 2016-13	$	—		$	615		$	—
Deferred acquisition consideration and earnout liability recorded for business acquisition	$	—		$	—		$	828
Change in purchases of property and equipment included in accounts payable and accrued expenses and other current liabilities	$	(432	)	$	841		$	1,928
Right-of-use assets obtained through operating lease obligations	$	5,109		$	5,869		$	1,350
Right-of-use assets obtained through finance lease obligations	$	—		$	3,454		$	—
Redeemable convertible preferred stock issuance costs included in accrued expenses	$	67		$	—		$	—
Prepaid rent reclassified to right-of-use assets	$	230		$	—		$	—
Accretion to redemption value and cumulative dividends on redeemable convertible preferred stock	$	1,798		$	—		$	—

Non-GAAP Financial Measures

Our management uses financial measures that are not in accordance with generally accepted accounting principles in the United States, or GAAP, in addition to financial measures in accordance with GAAP to evaluate our operating results. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP. Our management uses Adjusted EBITDA and Adjusted net income to evaluate our operating performance and trends and make planning decisions. Our management believes Adjusted EBITDA and Adjusted net income help identify underlying trends in our business that could otherwise be masked by the effect of the items that we exclude. Accordingly, we believe that Adjusted EBITDA and Adjusted net income provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and prospects, and allowing for greater transparency with respect to key financial metrics used by our management in its financial and operational decision-making.

Adjusted EBITDA

Adjusted EBITDA consists of GAAP net income excluding: (i) interest expense, net, (ii) income tax expense, (iii) depreciation and amortization, (iv) amortization of intangible assets, (v) stock-based compensation expense, and (vi) additional infrequently occurring adjustments described in more detail below.

The following table presents a reconciliation of GAAP net income to non-GAAP EBITDA and non-GAAP Adjusted EBITDA, for the periods presented:

	Three Months Ended December 31,						Year Ended December 31,
($, in thousands)	2024			2023			2024			2023
Net income (loss)	$	7,673		$	(568	)	$	861		$	4,945
Interest expense, net		(61	)		502			1,544			2,190
Income tax expense		2,580			(1,228	)		(3,668	)		5,447
Depreciation and amortization		3,615			2,982			13,623			10,448
Amortization of intangible assets		834			1,229			3,403			4,918
EBITDA		14,641			2,917			15,763			27,948
Stock-based compensation expense		2,891			2,366			10,578			8,996
Restructuring charge (1)		—			1,918			—			3,796
Legal fees (2)		—			—			—			1,182
Sales retention (3)		—			272			—			694
Impairment of property and construction (4)		—			—			18,842			—
Write down of capitalized internal-use software costs (5)		—			—			3,959			—
Disposal of construction in progress (6)		645			—			645			—
Adjusted EBITDA	$	18,177		$	7,473		$	49,787		$	42,616

(1) Amounts reflect employee retention and benefits as well as other exit costs associated with our restructuring activities.

(2) Amount reflects the legal and consulting fees incurred related to the published and subsequently withdrawn 2023 local coverage determinations, or LCDs.

(3) Amount reflects the compensation expenses related to retention for those sales employees impacted by the published and subsequently withdrawn 2023 LCDs.

(4) Amount reflects the impairment of a purchased building and associated unfinished construction work.

(5) Amount reflects the write-down of costs previously capitalized as construction in progress in the development of internal-use software, that we determined have no future value.

(6) Amount reflects construction in progress terminated and disposed of at one of our Canton, Massachusetts facilities, resulting from our decision to move certain operations to the Smithfield Facility.

Adjusted net income

Adjusted net income is defined as GAAP net income (loss) plus (i) amortization of intangible assets and (ii) additional infrequently occurring adjustments described in more detail below, less the estimated tax on these adjustments.

The following table presents a reconciliation of GAAP net income (loss) to non-GAAP Adjusted net income, for the periods presented:

	Three Months Ended December 31,						Year Ended December 31,
($, in thousands)	2024			2023			2024			2023
Net income (loss)	$	7,673		$	(568	)	$	861		$	4,945
Amortization of intangible assets		834			1,229			3,403			4,918
Restructuring charge (1)		—			1,918			—			3,796
Legal fees (2)		—			—			—			1,182
Sales retention (3)		—			272			—			694
Impairment of property and construction (4)		—			—			18,842			—
Write down of capitalized internal-use software costs (5)		—			—			3,959			—
Disposal of construction in progress (6)		645			—			645			—
Tax on above		(399	)		(923	)		(7,249	)		(2,859	)
Adjusted net income	$	8,753		$	1,928		$	20,461		$	12,676

(1) Amounts reflect employee retention and benefits as well as other exit costs associated with our restructuring activities.

(2) Amount reflects the legal and consulting fees incurred related to the published and subsequently withdrawn 2023 LCDs.

(3) Amount reflects the compensation expenses related to retention for those sales employees impacted by the published and subsequently withdrawn 2023 LCDs.

(4) Amount reflects the impairment of a purchased building and associated unfinished construction work.

(5) Amount reflects the write-down of costs previously capitalized as construction in progress in the development of internal-use software, that we determined have no future value.

Projected EBITDA and Adjusted EBITDA

The following table presents a reconciliation of projected GAAP net income (loss) to projected non-GAAP EBITDA and projected non-GAAP Adjusted EBITDA included in our guidance for the year ending December 31, 2025:

	Year Ended December 31,
($, in thousands)	2025L			2025H
Net income	$	9,500		$	38,800
Interest income		(4,000	)		(4,000	)
Income tax expense		3,400			13,600
Depreciation and amortization		14,800			14,800
Amortization of intangible assets		3,300			3,300
EBITDA		27,000			66,600
Stock-based compensation expense		12,000			12,000
BLA submission fee to the FDA		4,600			4,600
Adjusted EBITDA		43,600			83,200

Note: Numbers may not foot or recalculate due to rounding.

Projected Adjusted Net Income (Loss)

The following table presents a reconciliation of projected GAAP net loss to projected non-GAAP adjusted net income included in our guidance for the year ending December 31, 2025:

	Year Ended December 31,
($, in thousands)	2025L			2025H
Net income	$	9,500		$	38,800
Amortization of intangible assets		3,300			3,300
BLA submission fee to the FDA		4,600			4,600
Tax on above		(2,100	)		(2,100	)
Adjusted net (loss) income	$	15,300		$	44,600

Note: Numbers may not foot or recalculate due to rounding.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified by the use of words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include statements relating to the Company’s expected revenue, net income (loss), Adjusted net income, EBITDA, and Adjusted EBITDA for fiscal 2024 and the breakdown of expected revenue in both its Advanced Wound Care and Surgical & Sports Medicine categories. Forward-looking statements with respect to the operations of the Company, strategies, prospects, and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. These factors include, but are not limited to: (1) the impact of any changes to the coverage and reimbursement levels for the Company’s products (including as a result of the recently proposed LCDs scheduled to take effect in April 2025); (2) the Company faces significant and continuing competition, which could adversely affect its business, results of operations and financial condition; (3) rapid technological change could cause the Company’s products to become obsolete and if the Company does not enhance its product offerings through its research and development efforts, it may be unable to effectively compete; (4) to be commercially successful, the Company must convince physicians that its products are safe and effective alternatives to existing treatments and that its products should be used in their procedures; (5) the Company’s ability to raise funds to expand its business; (6) the Company has incurred losses in the current period and prior periods and may incur losses in the future; (7) changes in applicable laws or regulations; (8) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (9) the Company’s ability to maintain production or obtain supply of its products in sufficient quantities to meet demand; (10) the impact of the suspension of commercialization of: (a) ReNu and NuCel in connection with the expiration of the FDA’s enforcement grace period for HCT/Ps on May 31, 2021 and (b) Dermagraft in the second quarter of 2022 pending transition of manufacturing to a new manufacturing facility or a third-party manufacturer; (11) whether the Company is able to obtain regulatory approval for and successfully commercialize ReNu; and (12) other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including Item 1A (Risk Factors) of the Company’s Form 10-K for the year ended December 31, 2024 and its subsequently filed periodic reports. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Although it may voluntarily do so from time to time, the Company undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

About Organogenesis Holdings Inc.

Organogenesis Holdings Inc. is a leading regenerative medicine company focused on the development, manufacture, and commercialization of solutions for the advanced wound care and surgical and sports medicine markets. Organogenesis offers a comprehensive portfolio of innovative regenerative products to address patient needs across the continuum of care. For more information, visit www.organogenesis.com.

Investor Inquiries:
ICR Healthcare
Mike Piccinino, CFA
[email protected]
443-213-0500

Press and Media Inquiries:
Organogenesis
[email protected]