Allogene 2024 Q1 Earnings Narrowed Net Loss by 35%

Allogene (ALLO) reported its fiscal 2024 Q1 earnings on May 13th, 2025. The company reported a narrowed net loss of $65 million, down from $99.97 million in 2023 Q1, marking a 35% improvement. Earnings per share improved to a loss of $0.38 from $0.69, reflecting a 44.9% enhancement. However, revenue fell by 26.7% compared to the previous year. The company’s guidance remains ambitious, with plans to execute its strategic priorities in upcoming trials.

Revenue
Allogene's revenue in the first quarter of 2024 decreased by 26.7% to $22,000, compared to $30,000 in the same quarter the previous year. The company’s revenue is derived entirely from collaboration revenue with related parties, which remained at $22,000.

Earnings/Net Income
Allogene narrowed its losses to $0.38 per share in 2024 Q1 from a loss of $0.69 per share in 2023 Q1, reflecting a 44.9% improvement. The company successfully reduced its net loss to $65 million in 2024 Q1, a 35% decrease from the $99.97 million net loss reported in 2023 Q1. The improvement in EPS signifies positive momentum for Allogene, even as it continues to face financial challenges.

Price Action
The stock price of Allogene has dropped 5.83% during the latest trading day, tumbled 11.72% over the recent full trading week, and plummeted 17.52% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing ALLO stocks when revenue exceeds expectations and holding them for 30 days has shown historical profitability upon backtesting. This approach has yielded a strong average return of 12.5% over two years, significantly outperforming the buy-and-hold strategy, which had a lower average return of 6.7% during the same period. The strategy's success is attributed to its ability to capitalize on positive earnings surprises, as evidenced by the backtest results. This demonstrates the potential for investors to gain an advantage by leveraging unexpected revenue beats.

CEO Commentary
"We are executing on a strategy that is grounded in science, shaped by real-world insights, and supported by a platform purpose-built to scale," said David Chang, M.D., Ph.D., President, Chief Executive Officer, and Co-Founder of Allogene. The company is focused on transforming CAR T therapy in first-line large B-cell lymphoma (LBCL), advancing therapies in autoimmune diseases, and exploring solid tumors. The commitment from partners and efficiencies of the allogeneic platform reinforce confidence in their approach. Chang emphasizes clarity in their path and certainty in delivering value to both patients and the field.

Guidance
Allogene anticipates that the lymphodepletion regimen selection and futility analysis for the ALPHA3 trial will occur in the first half of 2026, due to delays in site readiness. The company is strategically prioritizing clinical trials for Cema-Cel and ALLO-329 to key inflection points while maintaining a strong cash runway extending into the second half of 2027. Although milestones are being held off until further progress is made, the company remains committed to expanding its trial footprint internationally, which is expected to enhance enrollment and execution.

Additional News
In recent weeks, Allogene Therapeutics has not announced any major mergers or acquisitions. However, the company has been active in expanding its clinical trial footprint internationally, aiming to improve patient enrollment and trial execution. No changes in the executive management team have been reported, and the company has not declared any new dividends or stock buyback plans. The focus remains on advancing its core programs in Large B-Cell Lymphoma and Chronic Lymphocytic Leukemia, as well as exploring opportunities in autoimmune diseases and renal cell carcinoma.