Why did ELEV's EPS stay flat in 2024?

Elevation Oncology's EPS remained flat in 2024 due to a combination of factors that balanced each other, resulting in no significant change in the company's earnings per share.

1. Decrease in G&A Expenses: ELEV managed to decrease General and Administrative (G&A) expenses, which was primarily due to reduced administrative costs, including directors' and officers' insurance, and decreased personnel costs, such as stock-based compensation. This reduction in G&A expenses would typically lead to a more favorable impact on net income and EPS.
2. Net Loss Improvement in Q4: The company reported a net loss of $10.44 million for Q4 2024, which was an improvement from the previous quarter's net loss of $17.1 million. This improvement in net loss, assuming no significant change in the number of shares outstanding, would contribute to a more stable or potentially even slightly increased EPS.

ELEV Net Income, Diluted EPS

3. Revenue Growth: Although ELEV's revenue growth rate, net income growth rate, and diluted EPS growth rate are not provided, the company has been actively managing its pipeline and clinical trials. For instance, they have presented preclinical proof-of-concept data for their HER3-ADC program and are advancing their EO-3021 clinical trial. These developments could potentially lead to future revenue growth and a positive impact on EPS.
4. Financial Strategic Moves: ELEV has been strategic in its financial management, reducing R&D expenses and G&A expenses, which has improved its net loss position. The company's cash position remains strong, with the ability to fund operations until 2026. This financial stability could contribute to a more stable EPS.

In conclusion, ELEV's flat EPS in 2024 can be attributed to a delicate balance of cost reductions, improved net losses, and strategic financial management, despite the potential for future revenue growth from its pipeline advancements.