Exelixis (EXEL) Q4 2023 earnings summary

Executive summary

• Q4’23 revenue was $479.7M, up 13% YoY; GAAP net income was $85.5M versus a $30.2M loss in Q4’22.

• FY2023 revenue was $1,830.2M; GAAP net income was $207.8M and non-GAAP net income was $289.4M.

Financial highlights

• Q4’23 total revenue was $479.7M, up 13% YoY and 2% QoQ; net product revenue was $429.3M.

• FY2023 revenue was $1,830.2M versus $1,611.1M in 2022; collaboration revenue was $201.3M versus $209.8M.

• Q4’23 GAAP operating expenses were $397.9M, down 16% YoY; R&D was $244.7M and SG&A was $131.4M.

• FY2023 R&D expense was $1,044.1M versus $891.8M; SG&A was $542.7M versus $459.9M.

• Ending cash and investments were $1,724.0M, down 17% YoY and 10% QoQ.

Outlook and guidance

• FY2024 guidance: total revenue $1.825B–$1.925B and net product revenue $1.650B–$1.750B; includes a 2.2% U.S. wholesale acquisition cost increase for CABOMETYX and COMETRIQ effective Jan. 1.

• FY2024 COGS guidance is 4%–5% of net product revenue; R&D is $925M–$975M, including $40M non-cash stock-based compensation.

• FY2024 SG&A guidance is $425M–$475M, including $60M non-cash stock-based compensation; effective tax rate guidance is 20%–22%.

• Guidance excludes expenses related to the January 2024 restructuring.

• 2024 priorities include potential filings for cabozantinib in advanced NET and mCRPC, advancing zanzalintinib, XB002 and XL309, and filing INDs for up to three candidates.