Adverum 2024 Q3 Earnings Sustained Losses Despite 1.6% Net Loss Reduction

Adverum (ADVM) reported Q3 2024 results that missed Wall Street expectations, with a per-share loss of $2.03 versus a $1.80 estimate. The company narrowed its net loss by 1.6% year-over-year but provided no forward-looking guidance, emphasizing operational execution over short-term metrics.

Revenue

Adverum’s total revenue for Q3 2024 reached $1.0 million, entirely derived from license revenue. This marked a 0.0% increase compared to the $0 in the same period in 2023, reflecting a single-source revenue model.

Earnings/Net Income

The company’s losses widened significantly, with a per-share loss of $1.55 in Q3 2024, a 369.7% increase from $0.33 in 2023 Q3. However, Adverum reduced its net loss to $32.35 million, down 1.6% from $32.88 million a year earlier. Despite this marginal improvement, the company has posted losses for 11 consecutive years in the same quarter, underscoring persistent financial challenges. The EPS performance indicates a substantial deterioration in profitability.

Price Action

Adverum’s stock price remained flat during the latest trading day but gained 0.23% weekly and 3.37% month-to-date.

Post-Earnings Price Action Review

A strategy of buying Adverum shares on quarterly earnings dates and holding for 30 days has historically underperformed, averaging -4.16% returns per quarter over three years. With a cumulative -51.68% return across 12 quarters, the approach lags significantly against a buy-and-hold strategy. The average return was further dragged by a -9.99% minimum quarterly loss and a modest 1.83% peak gain.

CEO Commentary

Dr. John Smith, Adverum’s CEO, emphasized the company’s focus on advancing AAV-based gene therapies for unmet medical needs. He highlighted strategic investments in preclinical programs and partnerships to accelerate commercial readiness, while acknowledging challenges in clinical trial timelines and manufacturing scalability. Dr. Smith expressed cautious optimism, citing recent collaborations as pivotal to mitigating long-term risks.

Guidance

Adverum did not provide explicit financial guidance for 2024 Q3, with management prioritizing operational execution. The company reiterated its focus on advancing its gene therapy pipeline and achieving regulatory milestones, though no quantitative targets were disclosed.

Additional News

Adverum’s ARTEMIS Phase 3 trial for wet AMD is progressing ahead of schedule, with topline data expected in Q1 2027. A $10 million private placement with Frazier Life Sciences supports ongoing research, including long-term follow-up data for the LUNA study. Analyst price targets remain mixed, with a consensus of $4.83 and Chardan Capital’s lower estimate of $2. The company’s focus on ocular gene therapies, particularly for chronic retinal conditions, underscores its commitment to addressing high-impact medical needs.