Executive Summary
Aclaris Therapeutics posted modest quarterly revenue in Q2 2024, underscoring its status as a clinical-stage biotechnology company with a dual revenue model (Therapeutics pipeline development and Contract Research Organization (CRO) services). Revenue for the quarter was $2.766 million, up 15.3% QoQ and 48.0% YoY, while gross profit reached $0.857 million (gross margin ~31%), indicating improving product mix relative to earlier quarters. However, the company recorded a net loss of $10.986 million and an EBITDA of −$12.612 million, with operating expenses totaling $13.411 million, reflecting ongoing heavy investment in R&D and administrative activities typical of late-stage pre-commercial biotech programs.
Significant cash and investment holdings provided a robust liquidity buffer (cash and short-term investments of $111.093 million and cash at period end of $22.834 million), supporting the company’s long-run strategic pipeline and CRO capabilities. The balance sheet remains solid with total assets of $161.071 million and total stockholders’ equity of $133.822 million, while liabilities are modest ($27.249 million total). Net debt stands at approximately −$20.0 million, signaling a net cash position driven by sizable investments and favorable financing conditions.
The quarter’s results highlight a classic growth-and-investment phase: meaningful YoY and QoQ revenue growth, improving gross margins, and sustained cash runway, but with no near-term path to GAAP profitability given continued R&D intensity and pipeline development costs. Investors should monitor pipeline milestones (ATI1777, ATI2138, ATI2231), potential partnership or out-licensing opportunities, and any shifts in CRO revenue mix that could meaningfully alter cash burn and liquidity scenarios.
Key Performance Indicators
QoQ: 53.58% | YoY:209.39%
Key Insights
Revenue: $2.766 million in Q2 2024, up 47.99% YoY and 15.35% QoQ. Gross Profit: $0.857 million, gross margin ~31.0% (YoY +209.39%, QoQ +53.58%). Operating Income: −$12.854 million, operating margin −4.65% (YoY improved but remains negative; QoQ improvement modest at 5.70%). Net Income: −$10.986 million, net income margin −3.97% for the quarter; YoY improvement in net loss by ~63% given prior-year comparables; EPS: −$0.15, with YoY growth ~64.29% and QoQ ~37.50%. EBITDA: −$12.612 mill...
Financial Highlights
Revenue: $2.766 million in Q2 2024, up 47.99% YoY and 15.35% QoQ. Gross Profit: $0.857 million, gross margin ~31.0% (YoY +209.39%, QoQ +53.58%). Operating Income: −$12.854 million, operating margin −4.65% (YoY improved but remains negative; QoQ improvement modest at 5.70%). Net Income: −$10.986 million, net income margin −3.97% for the quarter; YoY improvement in net loss by ~63% given prior-year comparables; EPS: −$0.15, with YoY growth ~64.29% and QoQ ~37.50%. EBITDA: −$12.612 million (EBITDA margin −4.56%). Free Cash Flow: −$12.308 million. Cash from operating activities: −$12.322 million; Cash end of period: $22.834 million; Cash + short-term investments: $111.093 million; Net cash used in investing activities: −$0.674 million; Net cash used providing financing activities: −$0.011 million; Net change in cash: −$13.007 million.
Balance sheet health shows a strong liquidity profile: total current assets $117.635 million versus total current liabilities $15.682 million (current ratio 7.50x, quick ratio 7.50x, cash ratio 1.456x). Total assets $161.071 million; total liabilities $27.249 million; total stockholders’ equity $133.822 million. Net debt is negative (net cash ≈ −$20.018 million), reflecting substantial liquidity from investments. The company’s burn rate remains a key risk alongside ongoing R&D investments.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.77M |
47.99% |
15.35% |
| Gross Profit |
857.00K |
209.39% |
53.58% |
| Operating Income |
-12.85M |
59.60% |
5.70% |
| Net Income |
-10.99M |
62.85% |
35.15% |
| EPS |
-0.15 |
64.29% |
37.50% |
Key Financial Ratios
operatingProfitMargin
-465%
operatingCashFlowPerShare
$-0.17
freeCashFlowPerShare
$-0.17
Management Commentary
No earnings call transcript data provided in the input. Consequently, there are no management quotes or highlights to extract in this section. If you can supply the transcript, I can extract them by theme (strategy, operations, market conditions) with context and significance.
Forward Guidance
There is no explicit forward guidance disclosed in the QQ2 2024 10-Q data provided. Given Aclaris is a clinical-stage company with limited near-term licensing or commercial milestones, the outlook hinges on pipeline progress and potential strategic partnerships rather than near-term revenue upside. Investors should monitor:
- Pipeline milestones for ATI1777 (soft JAK1/3 inhibitor) and ATI2138 (ITK/TXK/JAK3 inhibitor) as potential inflection points for value realization or partnering discussions.
- ATI2231 (MK2 inhibitor) and GutBiased program opportunities for inflammatory bowel disease, which could unlock downstream collaborations if phase data is favorable.
- CRO services demand and any improvement in the mix between Therapeutics-related work and contract services.
- Financing developments or non-dilutive funding that could extend the runway without equity dilution.
Overall, the stock's investment thesis rests on successful clinical data and strategic partnerships that could unlock licensing deals or milestone payments, offsetting operating cash burn.