MacroGenics (MGNX) Q4 2024 Earnings Call March 21, 2025 03:12 AM ET Company Participants James Karrels - Senior VP, CFO & Corporate SecretaryScott Koenig - President and CEOStephen Eck - Senior VP of Clinical Development & Chief Medical OfficerJonathan Chang - Senior Managing DirectorNick Lorusso - Vice PresidentJonathan Miller - Managing DirectorSilvan Türkcan - Managing DirectorMayank Mamtani - Senior Managing Director Conference Call Participants Peter Lawson - AnalystStephen Willey - Analyst Operator Go ...

Financial Data and Key Metrics Changes - For Q4 2024, total investment income was $33.8 million and net investment income was $14.6 million, compared to $36.7 million and $15.9 million in Q3 2024 [10][34] - The weighted average portfolio risk rating decreased to 2.33% in Q4 2024 from 2.48% in Q3 2024 [27] - The dollar-weighted loan-to-value ratio decreased from 29.3% to 26.6% [31] - Net assets increased to $514.9 million from $507.4 million in Q3 2024, with NAV per share rising to $13.79, a 3% increase [32] - Total operating expenses decreased to $19.2 million from $20.8 million in Q3 2024 [35] Business Line Data and Key Metrics Changes - In Q4 2024, the company executed two investments in new companies and five investments in existing companies, totaling $154 million in funded loans [16][27] - The loan portfolio is comprised almost exclusively of first-lien senior secured loans, with 97% being floating rate assets [32] Market Data and Key Metrics Changes - Venture debt deal value increased to over $53 billion in 2024, up from approximately $27 billion in 2023, driven by significant deals in the AI sector [23] - The company noted that the venture debt space experienced explosive growth in 2024, which is expected to continue [22] Company Strategy and Development Direction - The company aims to grow originations in the total loan size of $30 million to $150 million, with an ideal allocation to the BDC remaining at $20 million to $45 million [13][15] - The acquisition of Runway Growth Capital by BC Partners Credit is expected to enhance deal flow and diversify the portfolio [11][12] - The company maintains a credit-first investment philosophy and focuses on high-growth sectors such as technology, healthcare, and consumer products [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's performance and the ability of borrowers to operate effectively against the macro backdrop [17] - The company anticipates that the focus on high-growth sectors and senior loans will provide additional security for the portfolio [22] Other Important Information - The company declared aggregate distributions of $0.36 per share for Q1 2025, which includes a base dividend of $0.33 and a supplemental dividend of $0.03 [40] - The company extended its credit facility with KeyBank by three years, enhancing availability and lending verticals [38] Q&A Session Summary Question: Expectations for new originations in the first quarter - Management indicated that originations are typically back-ended and additional originations may close before the quarter ends [44] Question: Percentage of loan book trading at interest rate floors - The majority of loans are at or above their interest rate floors [46] Question: Impact of Fed cuts on yield - The decline in yield was primarily due to lower interest rates and fewer prepayment accelerations [50] Question: Discussion on dividend policy and capital allocation - The Board aims for a stable and predictable dividend while also considering building NAV [56][57] Question: Broader origination opportunities post-BC Partners acquisition - The integration is expected to expand the origination funnel and provide access to a broader set of products [62][66] Question: Size of equity portfolio and management strategy - The company is primarily a debt investor and will manage equity positions proactively, focusing on realizing gains when appropriate [88][90]

Financial Data and Key Metrics Changes - Total revenues grew 5% year-over-year to $2.7 billion, with adjusted EBITDA increasing by 12% to $298 million [21][34] - Adjusted EPS for the fourth quarter was $0.09, with an adjusted EBITDA margin of 10%, flat year-over-year [34][38] - Same center revenue increased by 5% to $2.4 billion, with average weekly full-time enrollments slightly up to 145,000 [21][22] Business Line Data and Key Metrics Changes - Early education centers saw a 4% revenue growth year-over-year to $593 million, with same center revenue up 3% [35] - Champions business revenue expanded by 12% in the fourth quarter, totaling $54 million, with 1,025 sites, an 8% increase from the previous year [36][20] Market Data and Key Metrics Changes - Demand for quality early childhood education in the US continues to exceed supply, presenting growth opportunities [9][10] - Occupancy rates improved by 90 basis points to 69.8%, with expectations for continued growth [22][40] Company Strategy and Development Direction - KinderCare aims to expand access to high-quality childcare through new centers and acquisitions, leveraging its scale and brand recognition [10][11] - The company is focused on enhancing its offerings to meet the needs of families and employers, including customized childcare benefits [14][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued bipartisan support for early childhood education funding, which is crucial for growth [16][62] - The outlook for 2025 includes revenue guidance of $2.75 billion to $2.85 billion, representing a 3% to 7% increase, with adjusted EBITDA expected to range from $310 million to $325 million [45][46] Other Important Information - Approximately 35% of total revenue in 2024 came from subsidy funding, with 20% from employer partnerships [26][27] - The company opened 77 new Champion sites in 2024 and plans to continue this momentum in 2025 [28] Q&A Session Summary Question: How is the first quarter trending relative to guidance? - Management indicated that the first quarter is tracking in line with annual guidance, with $4.6 million of revenue from acquisitions in Q4 [56][57] Question: What percentage of revenue is tied to US federal government funding? - Approximately 35% of revenue comes from the Child Care and Development Block Grant, with bipartisan support expected to continue [61][62] Question: What are the expectations for occupancy rates in lower quintiles? - Management noted that engagement with teachers and families is key to improving occupancy in lower-performing centers [68][69] Question: What factors could influence revenue and margin guidance? - Revenue growth will depend on occupancy rates and cost controls, with potential upside from acquisitions if market conditions remain favorable [70][74] Question: How is the B2B employer-sponsored business performing? - Occupancy rates in employer-sponsored centers are trending in the high 70s, with opportunities for further expansion [78][79] Question: What is the rationale for expecting flat occupancy in 2025? - Management emphasized the need for operational practices to gain traction before expecting significant occupancy increases [100][101] Question: Are acquisitions included in the revenue guidance? - The revenue guidance includes a 1% to 2% contribution from acquisitions, but specific volume guidance is not provided [102][103]

Financial Data and Key Metrics Changes - Research and development expenses for Q4 2024 were $7.8 million, up from $1.6 million in Q4 2023, primarily due to clinical and manufacturing costs associated with the Phase IIa CBeyond study for nimacimab [30] - For the year ended December 31, 2024, research and development expenses totaled $18.7 million, compared to $5.8 million in 2023, driven by increased clinical costs and employee-related benefits [31] - General and administrative expenses for Q4 2024 were $4.6 million, up from $2.5 million in Q4 2023, mainly due to stock-based compensation and professional services [32] - The net loss for the year ended December 31, 2024, was $26.6 million, a decrease from $37.6 million in 2023, attributed to the expensing of acquisition costs in 2023 [33] Business Line Data and Key Metrics Changes - The company has shifted focus from the development of SBI-100 to nimacimab, reallocating resources to achieve clinical milestones [11] - The CBeyond clinical trial for nimacimab saw over-enrollment, completing enrollment with 136 patients, exceeding the planned 120 patients [9] Market Data and Key Metrics Changes - The company views nimacimab as a differentiated alternative in the obesity treatment market, especially as the GLP-1 receptor agonist space becomes crowded [24] - Recent industry deals highlight the growing interest in non-incretin mechanisms for obesity treatment, validating the potential of CB1 inhibitors like nimacimab [81] Company Strategy and Development Direction - The company plans to engage with regulators for a Phase IIb dose-escalation study anticipated to start in Q2 2026, while also enhancing manufacturing capabilities [22] - The strategic decision to extend the CBeyond trial to 52 weeks aims to gather more comprehensive safety and efficacy data, which will support regulatory discussions [19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in nimacimab's safety profile, noting no neuropsychiatric side effects in the Phase I study and ongoing positive reviews from the Data Safety Monitoring Board [16][50] - The company anticipates that the additional data from the extended trial will enhance understanding of nimacimab's capabilities and support its regulatory package [19] Other Important Information - The company reported cash and cash equivalents of $68.4 million as of December 31, 2024, with an operating cash burn averaging $6.3 million per quarter [34][36] - The company has eliminated related party balances and remediated litigation matters during 2024, improving its financial position [35] Q&A Session Summary Question: What can be expected from the 26 and 52-week readouts? - Management indicated that the extension study was strategic to gather longer-term efficacy and safety data, which is crucial for regulatory discussions [42][43] Question: How does the removal of the interim analysis affect the study's power? - The removal of the interim analysis preserves the study's power, allowing for a more robust efficacy and safety analysis with a larger patient dataset [60][100] Question: What feedback has been received from investigators regarding the study? - Investigators have shown strong enthusiasm for the obesity trials, contributing to the rapid enrollment pace [96] Question: Will there be additional DEXA scans during the extended study? - Yes, there will be a DEXA scan at the midpoint of the extension and another at the end of the treatment period to assess body composition changes [99] Question: How does the company view the potential for nimacimab in diabetic patients? - The company is excited about testing nimacimab in diabetic populations, as its mechanism may improve insulin sensitivity and address inflammation [132]

Financial Data and Key Metrics Changes - In Q4 2024, total revenue for the group increased 7.8% year-over-year to RMB6 billion, exceeding guidance [45] - For the full-year 2024, total revenue increased 9.2% year-over-year to RMB23.9 billion [45] - Adjusted net income was RMB321 million in Q4 2024, with full-year adjusted net income increasing 5.8% year-over-year to RMB3.7 billion [54] - The group generated operational cash inflow of RMB7.5 billion in 2024 [54] Business Line Data and Key Metrics Changes - Legacy-Huazhu's revenue increased 9.2% year-over-year to RMB4.8 billion in Q4 2024, with full-year revenue growing 9.1% to RMB19 billion [45] - Legacy-DH's revenue rose 2.9% year-over-year to RMB1.2 billion in Q4 and increased 9.6% year-over-year to RMB4.9 billion for the full-year [46] - Legacy-Huazhu's blended RevPAR decreased slightly by 3% to RMB235, while occupancy rate improved by 0.2 percentage points to 81.2% [17][18] Market Data and Key Metrics Changes - The number of domestic tourists in China reached 5.6 billion, up 14.8% year-over-year, with total domestic tourism spending increasing 17.1% to RMB5.8 trillion [10] - The hotel turnover for the full-year 2024 was RMB93 billion, a 15% year-over-year increase [44] Company Strategy and Development Direction - The company aims to reach 20,000 hotels in 2,000 cities in the near future, focusing on high-quality development and brand positioning [16][32] - The asset-light model strategy is expected to generate stronger and healthier cash flow, with over 50% of revenue contribution from asset-light business [13][47] Management Comments on Operating Environment and Future Outlook - Management noted that while there are macro uncertainties, domestic travel demand continues to grow steadily, with leisure travel outpacing business travel [8][10] - For Q1 2025, management expects a low single-digit decline in RevPAR year-over-year, but remains confident about stabilization and potential growth for the full year [65] Other Important Information - The company revised its dividend payout policy to no less than 60% of net profit and announced a US$300 million final cash dividend for the second half of 2024 [56] - The company plans to open around 2,300 hotels in 2025 while closing around 600 hotels, representing a 15% year-over-year growth in hotel network [60] Q&A Session Summary Question: RevPAR outlook for Q1 and full-year - Management expects a low single-digit decline in Q1 RevPAR year-over-year but is confident about stabilization and potential growth for the full year [65] Question: Strategy change for Legacy-DH and earnings recovery - Management indicated that the focus for 2025 will be on stabilizing the business and performance while looking for growth opportunities through asset-light and organic growth [67][68] Question: Future dividend payout expectations - Management confirmed the commitment to the current shareholder return plan, aiming to return up to US$2 billion over three years, primarily through cash dividends [78]

Financial Data and Key Metrics Changes - The company reported total revenue of $10.6 million for Q4 2024, a 35% increase from Q3 2024 and a 170% increase from Q4 2023 [18][20] - Full-year revenue for 2024 reached $24.2 million, representing a 167% increase from $9.1 million in 2023 [20][36] - Product revenue in Q4 2024 was $10.3 million, a 71% sequential increase and nearly 1,000% increase year-over-year from $0.9 million in Q4 2023 [33][34] - Gross margin improved to negative 21% in Q4 2024 from negative 65% in Q3 2024 and negative 98% in Q4 2023 [38] - Operating expenses for Q4 2024 were $9.5 million, a 55% increase from Q3 2024 and a 62% increase year-over-year [40] Business Line Data and Key Metrics Changes - The company shipped to 98 customers in Q4 2024, with 53 being new to the Amprius platform [17] - The light electrical vehicle market contributed about 25% of Q4 revenue, with expectations for significant growth in this segment [22][116] - The company has a high-performance commercial battery portfolio with 14 different SKUs available [16][19] Market Data and Key Metrics Changes - 77% of Q4 revenue came from outside the United States, compared to 22% in the same period last year [18] - The light electrical vehicle market is projected to reach approximately $136 billion by 2029 [22] - The global drone market is expected to surge from $18 billion in 2023 to $213 billion by 2032 [28] Company Strategy and Development Direction - The company aims to lead in technology innovation and product performance while ensuring world-class manufacturing capability and sufficient production capacity [52] - Amprius plans to expand its customer pipeline and drive revenue growth through additional manufacturing partnerships [54] - The company is actively working on developing a global contract manufacturing network to mitigate geopolitical risks [30][64] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, expecting to deliver new high-performance batteries and engage with more customers [54] - The company is monitoring policy challenges and potential industry headwinds due to changes in federal administration [30] - Management highlighted the importance of customer qualification processes and the potential for significant revenue growth from existing customers [124][126] Other Important Information - The company ended 2024 with $55.2 million in net cash and no debt [46] - A total of $16 million in new customer purchase orders was added to the backlog in Q4 2024, providing visibility into growth for 2025 [25][88] Q&A Session Summary Question: Can you talk about the diversity of applications and customization required for customers? - Management noted three types of customers: those replacing existing batteries, those needing qualification, and those requiring certification, with confidence in converting many to purchase orders in 2025 [58][60] Question: Can you discuss your strategy for incremental contract manufacturing? - The company has successfully utilized contract manufacturing without significant capital expenditure and is exploring partnerships in Korea and Europe to diversify manufacturing locations [62][64] Question: Can you provide an update on the balance sheet activity? - The company entered a blackout period as of December 31 and has not been active in the market since then [68] Question: Can you walk us through the strategic decision to target many customers with smaller volumes? - Management emphasized that all customers have high volume potential, and engaging with more customers increases opportunities for success [72][74] Question: What is the expected revenue cadence for 2025? - Management anticipates sequential improvements in revenue throughout 2025, despite some headwinds in Q1 [135] Question: How should we think about gross margin progression for the year? - Management indicated that gross margins are expected to improve as SiCore sales contribute positively from day one [100]

Tenon Medical (TNON) Q4 2024 Earnings Call March 20, 2025 10:35 PM ET Company Participants Steven Foster - CEO, President & DirectorKevin Williamson - Chief Financial OfficerAnthony Vendetti - Executive Managing Director Operator Greetings, and welcome to the Tenon Medical Fourth Quarter and Full Year twenty twenty four Financial Results and Corporate Update Conference Call. As a reminder, this call is being recorded. Your hosts today are Steve Foster, President and Chief Executive Officer and Kevin William ...

Scholastic (SCHL) Q3 2025 Earnings Call March 20, 2025 10:31 PM ET Company Participants Jeffrey Mathews - Executive VP & Chief Growth OfficerPeter Warwick - President & CEOHaji Glover - CFO & Executive Vice President Conference Call Participants Brendan McCarthy - Equity Analyst Operator Good day and thank you for standing by. Welcome to the Scholastic Reports Third Quarter Fiscal Year twenty twenty five Results. At this time, all participants are in a listen only mode. Please be advised that today's confer ...

Financial Data and Key Metrics Changes - The company generated a record revenue of $244.4 million for the full year, representing an 11% year-over-year growth [12][41] - Non-GAAP gross margin for the year was a record 60%, up from 54% a year ago [12][51] - Adjusted EBITDA loss for the full year was approximately $10.6 million, significantly improved from a $55.3 million loss in the previous year [52] - Q4 revenue reached a record $61.6 million, with a 5% year-over-year growth [41] - The company achieved its first adjusted EBITDA profitable quarter in Q4 [11][52] Business Line Data and Key Metrics Changes - Revenue from the defense and intelligence sector grew more than 20% year-over-year [20][43] - Civil government revenue grew approximately 15% year-over-year [26][43] - The commercial sector faced a decline of more than 10% year-over-year but showed signs of stabilization [43] - Backlog increased to approximately $498.5 million, up 115% quarter-over-quarter [58] Market Data and Key Metrics Changes - EMEA revenue grew more than 15% year-over-year, while Latin America revenue grew approximately 30% [44] - Asia Pacific revenue grew nearly 15%, and North America revenue grew approximately 5% year-over-year [44] - The company anticipates significant growth potential across all regions, particularly in national security solutions [45][46] Company Strategy and Development Direction - The company shifted to a vertically-focused go-to-market structure, emphasizing selling solutions rather than just data [10][42] - A landmark $230 million commercial agreement with JSAT was signed, marking a significant step in the satellite services market [14][56] - The company aims to be a leading provider of geospatial data and solutions while expanding into satellite services [19] - The strategic focus for the upcoming year includes leveraging AI to enhance data accessibility and solution development [38][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve cash flow profitability within the next 24 months [66] - The geopolitical landscape is seen as a driver for increased demand for satellite services and solutions [18][109] - Management highlighted the importance of strategic partnerships and the potential for significant revenue growth from new contracts and AI-enabled solutions [66][80] Other Important Information - The company ended the fiscal year with approximately $222 million in cash and cash equivalents, significantly reducing cash burn [55] - The average contract length remains approximately two years, with 97% of the end-of-period ACV book consisting of recurring contracts [49] Q&A Session Summary Question: Focus on pre-cash flow dynamics and CapEx - Management discussed the peak CapEx investment cycle and the structure of the JSAT contract, which is front-end loaded to support working capital [71][72] Question: AI deal with Anthropic and monetization - The partnership with Anthropic is seen as an accelerant for delivering value through AI-enabled solutions, with a focus on immediate revenue opportunities [78][80] Question: Doubling growth rate and revenue opportunities - The doubling of the growth rate is based on secured contracts and potential upside from new satellite services and AI solutions [84][85] Question: Revenue guidance and impact of Washington's situation - Management indicated a conservative approach to guidance, factoring in macro pressures and potential delays in new business [102][103] Question: Space services and existing capabilities - The focus remains on existing satellite configurations, with potential for customization in future partnerships [111][112] Question: Strategy for larger customers and net dollar retention - The strategy involves building solutions that enhance customer value and retention, with a focus on larger accounts [132][125]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $17.6 million, representing a 3.8% increase compared to Q4 2023, marking the first instance of single-digit revenue growth since the COVID-19 pandemic [7][31] - Full-year revenue for 2024 reached $69.3 million, a 19% increase year-over-year [31] - Gross margin for Q4 was 64%, down from 68% in the prior year, primarily due to higher expenses related to excess and obsolete inventory [32] Business Line Data and Key Metrics Changes - OviTex revenue grew 17% for the full year, with unit sales increasing by 28% in Q4 and 33% for the year [31][32] - PRS revenue grew 21% for the full year, with unit sales increasing by 11% in Q4 and 31% for the year [31][32] Market Data and Key Metrics Changes - The company faced external headwinds, including a hurricane that impacted surgical volumes in key regions, particularly in the Southeast [10][11] - The shortage of IV fluids due to the hurricane affected elective surgeries, contributing to lower surgical volumes [10][11] Company Strategy and Development Direction - The company is implementing a revised commercial strategy, focusing on a team-based sales approach with territory managers and account specialists [12][14] - There is an emphasis on expanding the product portfolio and capturing market share in hernia repair and plastic reconstructive surgery (PRS) [18][19] - The company plans to launch larger-sized versions of existing products and a new long-term resorbable alternative for hernia products in 2025 [21][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in Q4 but expressed optimism for 2025, citing a strong commercial strategy and anticipated product launches [12][38] - The company expects revenue growth of 23% to 27% in 2025, with a target range of $85 million to $88 million [34][36] Other Important Information - The company ended 2024 with $52.7 million in cash and cash equivalents, indicating a strong liquidity position [34] - Management highlighted the importance of clinical validation and educational outreach to enhance product adoption [22][24] Q&A Session Summary Question: Follow-up on territory manager departures - Management reported losing 11 territory managers in Q4 due to unplanned departures, which significantly impacted performance [43][44] Question: Outlook for 2025 regarding unit versus ASP expectations - Management indicated that the introduction of new products may lead to lower average selling prices (ASP) in some areas, but they expect ASP stability in PRS [52][56] Question: Confidence in reaching breakeven with existing liquidity - Management expressed confidence in achieving profitability, citing flat operating expenses and revenue growth [60][62] Question: Revenue guidance and sales ramp for 2025 - Management expects a typical seasonal ramp-up in revenue throughout 2025, with a strong start in Q1 [68][70] Question: Compensation strategies to retain top performers - Management has enhanced the compensation plan to retain top talent and mitigate the risk of poaching [126][128]