Recursion(RXRX) - 2024 Q4 - Annual Results

Financial Performance - Recursion reported total revenue of $58.8 million for the year ended December 31, 2024, an increase of 32% compared to $44.6 million for 2023[16]. - Pro forma revenue was $82.6 million for the year ended December 31, 2024, compared to $72.5 million for 2023, reflecting the impact of the Exscientia merger[16]. - Operating revenue decreased to $4,511,000 in Q4 2024 from $10,624,000 in Q4 2023, reflecting a 58% decline[21]. - Total assets increased significantly to $1,448,598,000 in 2024, compared to $653,699,000 in 2023, marking a 121% growth[23]. - Cash and cash equivalents improved to $594,350,000 in 2024 from $391,565,000 in 2023, representing a 52% increase[23]. - The net loss for the year was $463,661,000, compared to a net loss of $328,066,000 in 2023, indicating a 41% increase in losses[21]. - The company’s total operating costs and expenses surged to $537,843,000 in 2024, up 36% from $394,635,000 in 2023[21]. - Recursion's accumulated deficit reached $1,431,283,000 in 2024, increasing from $967,622,000 in 2023[23]. Mergers and Acquisitions - The company completed a transformative merger with Exscientia, enhancing its position as a leading TechBio company and expecting at least $100 million in synergies from the transaction[4][16]. - The company is focused on advancing its drug discovery platform and expects synergies from the Exscientia combination[24]. Research and Development - Research and development expenses increased to $314.4 million for the year ended December 31, 2024, up from $241.2 million in 2023, driven by platform and personnel costs[16]. - The company advanced three new clinical studies in 2024, including REC-1245 for advanced solid tumors and lymphoma, REC-4881 for familial adenomatous polyposis, and REC-3964 for recurrent C. difficile infection[8]. - Recursion reported promising early efficacy data for REC-617 and REC-994, with REC-617 showing a durable partial response in a late-stage metastatic ovarian cancer patient[8]. - Recursion's AI synthesis planning capability shows a 25% improved tractability assessment of AI-generated compounds over competitors, enhancing its drug discovery efforts[13]. Partnerships and Collaborations - Recursion generated $45 million in aggregate cash inflows from partner milestones, including a $30 million option exercised by Roche and Genentech[5][12]. - Recursion aims to enhance its technology and expand its partnerships, including ongoing collaborations with Roche-Genentech and Bayer[24].