Alector

ALEC Q4 2024 Earnings

Reported Feb 26, 2025 at 4:10 PM ET · SEC Source

Q4 24 EPS

$-0.02

BEAT +96.33%

Est. $-0.54

Q4 24 Revenue

$54.2M

BEAT +165.82%

Est. $20.4M

vs S&P Since Q4 24

-28.0%

TRAILING MARKET

ALEC -2.7% vs S&P +25.3%

Full Year 2024 Results

FY 24 EPS

$-1.23

FY 24 Revenue

$100.6M

Market Reaction

Did ALEC Beat Earnings? Q4 2024 Results

Alector delivered a striking beat across both top and bottom lines in the fourth quarter of 2024, with the clinical-stage neurodegeneration company posting a net loss of just $0.02 per share against a consensus estimate of $0.54, a 96.33% favorable s… Read more Alector delivered a striking beat across both top and bottom lines in the fourth quarter of 2024, with the clinical-stage neurodegeneration company posting a net loss of just $0.02 per share against a consensus estimate of $0.54, a 96.33% favorable surprise, while revenue of $54.24 million cleared the $20.40 million consensus by 165.82% and surged 257.1% year over year. The primary driver was a sharp acceleration in collaboration revenue under the AbbVie Agreement, which contributed heavily to Q4's $54.24 million total before being fully recognized as of December 31, 2024, a timing dynamic management was candid about. That conclusion creates a meaningful revenue step-down ahead, with 2025 collaboration revenue guided to just $5 million to $15 million, while R&D spending is projected at $175 million to $185 million, implying substantially wider losses. Investors will look to the pivotal INFRONT-3 Phase 3 trial of latozinemab in FTD-GRN, with topline data expected by Q4 2025, as the company's most consequential near-term catalyst, backed by a $413.40 million cash runway management says extends through 2026.

Key Takeaways

  • Significant increase in Q4 collaboration revenue driven by recognition of AL002 and latozinemab program revenue
  • Full recognition of AbbVie Agreement collaboration revenue by December 31, 2024
  • R&D expense reduction reflecting strategy to prioritize selected programs
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ALEC YoY Financials

Q4 2024 vs Q4 2023, source: SEC Filings

“Alector is entering a potentially transformative period for the company, as we continue to advance our clinical programs toward key milestones while also driving the development of our wholly owned, early-stage pipeline. We look forward to reporting topline data from the pivotal INFRONT-3 Phase 3 trial of latozinemab targeting frontotemporal dementia with a granulin gene mutation by the fourth quarter. Additionally, we expect to complete enrollment in the PROGRESS-AD Phase 2 trial of AL101/GSK4527226 in participants with early Alzheimer's disease by mid-2025.”

— Arnon Rosenthal, Q4 2024 Earnings Press Release