Why did RLAY's Q1 2024 EPS surge beyond forecasts?

The EPS of RLAY for Q1 2024 was $0.09, which is quite surprising considering the company's financial reports for the previous quarters and the general market expectations. The surge in EPS can be attributed to the following factors:

1. **Recognition of Milestone Payments**: Relay Therapeutics recognized milestone payments under the company’s Collaboration and License Agreement with Genentech, Inc. This recognition significantly contributed to the increase in revenue and net income for the quarter.
2. **Revenue Increase**: The total revenue for Q1 2024 was $10.01 million. Although the company's full-year 2023 revenue was $25.5 million, the Q1 revenue was a substantial part of the annual total. The revenue growth, especially when compared to the previous quarter's revenue, could be a significant factor in the EPS surge.
3. **Cash Position**: The company's cash position was robust, with $750.1 million in cash, cash equivalents, and investments as of December 31, 2023. This financial stability allowed the company to invest in research and development without the pressure of financial constraints, which might have impacted the EPS negatively.

In conclusion, the surge in RLAY's Q1 2024 EPS can be attributed to the recognition of milestone payments, revenue increase, and a strong cash position. These factors combined to provide a positive impact on the company's financial performance for the quarter.