CytomX Therapeutics, Inc. :CTMX-US: Earnings Analysis: Q2, 2016 By the Numbers : August 10, 2016

CytomX Therapeutics, Inc. reports financial results for the quarter ended June 30, 2016.

Highlights

  • Summary numbers: Revenues of USD 3.09 million, Net Earnings of USD -14.18 million.
  • Change in operating cash flow of 357.80% compared to same period last year is about the same as change in earnings, likely no significant movement in accruals or reserves.
  • Narrowing of operating margins contributed to decline in earnings.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2015-06-30 2015-09-30 2015-12-31 2016-03-31 2016-06-30
Relevant Numbers (Quarterly)
Revenues (mil) 2.04 1.94 1.99 2.22 3.09
Revenue Growth (%YOY) N/A N/A N/A 27.61 51.44
Earnings (mil) -5.81 -11.87 -11.49 -16.03 -14.18
Earnings Growth (%YOY) N/A N/A N/A -158.07 -144.16
Net Margin (%) -284.19 -612.17 -577.82 -721.05 -458.18
EPS -0.12 -14.26 -0.33 -0.44 -0.39
Return on Equity (%) -105.21 -101.72 -53.76 -53.67 -53
Return on Assets (%) -22.98 -36.61 -28.49 -32.9 -28.43

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Market Share Versus Profits

Revenues History
Earnings History

Compared to the same period last year, CTMX-US‘s change in revenue was close to the amount of its change in earnings. It remains to be seen how the rest of its peer group’s results will turn out and if CTMX-US‘s performance is a sign of any major shift in the composition of market share in this sector. Also, for comparison purposes, revenues changed by 39.18% and earnings by 11.56% compared to the previous period.

Cash Versus Earnings – Sustainable Performance?

CTMX-US‘s year-on-year change in operating cash flow of 357.80% is around its change in earnings. This suggests that there are likely no significant movement in accruals or reserves for managing earnings this period.

Margins

The company’s decline in earnings has been influenced by the following factors: (1) Decline in operating margins (EBIT margins) from -271.27% to -460.83% and (2) one-time items that contributed to a decrease in pretax margins from -283.95% to -458.08%

EBIT Margin History
PreTax Margin History

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Company Profile

CytomX Therapeutics, Inc. operates as an oncology-base biopharmaceutical company, which focuses on developing probody therapeutics for the treatment of cancer. The company was founded in September, 2010 and is headquartered in South San Francisco, CA.

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