Why did ATAI's Q4 earnings shock investors?

Atai Life Sciences' Q4 earnings report disappointed investors due to several reasons:

1. **Significant Losses**: The company reported a net loss of $150.0 million for the quarter, which is a stark increase of 242% compared to the previous year. This substantial loss, coupled with a loss from operations of $(102.7) million, indicates a continuing struggle for profitability.
2. **Revenue Disappointment**: The actual revenue for the quarter was -$5000, which is significantly lower than the estimated revenue of $300,000. This substantial shortfall may have been a shock to investors who were expecting a more positive financial performance.

3. **Cash Burn and Unprofitability**: Despite the company's strong stock momentum and the recent capital raise, which extended its operational runway into 2027, investors may be concerned about the rapid cash burn and projected continued unprofitability this year. This suggests that while there is potential for growth, it may come at the cost of short-term financial health.
4. **Insider Trading Activities**: Recent insider transactions, such as the sales by CFO Anne Nagengast and COO Sahil Kirpekar, may raise questions about the confidence that key insiders have in the company's future performance. While these sales were partly to satisfy tax liabilities, they could still be interpreted as a bearish signal by some investors.

In summary, ATAI's Q4 earnings report likely shocked investors due to the company's continued losses, disappointing revenue, cash burn, and the actions of insiders selling shares, which may have signaled doubts about the company's short-term prospects.