Revenue Performance - Revenue for the three months ended March 31, 2022, was $38.62 million, a slight increase from $38.44 million for the same period in 2021, representing a growth of 0.5%[13] - Total revenue for the three months ended March 31, 2022, was $38,620 thousand, a slight increase of $178 thousand or 0.5% compared to $38,442 thousand for the same period in 2021[113] - Immune Medicine revenue for the three months ended March 31, 2022, was $20.82 million, compared to $20.10 million in the same period of 2021, representing a growth of 3.5%[40] - MRD revenue for the three months ended March 31, 2022, totaled $17.80 million, a decrease of 2.9% from $18.34 million in the same period of 2021[40] - The company recognized $12.3 million in Immune Medicine collaboration revenue related to the Genentech Agreement during the three months ended March 31, 2022[43] - The company expects to recognize the current deferred revenue within 12 months and the non-current amounts over approximately four to five years[46] Operating Expenses - Total operating expenses for the three months ended March 31, 2022, were $101.69 million, up from $79.72 million in the same period of 2021, indicating an increase of 27.5%[13] - Research and development expenses for the three months ended March 31, 2022, were $37.84 million, compared to $33.77 million for the same period in 2021, an increase of 12.3%[13] - Sales and marketing expenses increased to $26.09 million for the three months ended March 31, 2022, from $20.60 million in the same period of 2021, representing a growth of 26.6%[13] - General and administrative expenses rose to $24.14 million for the three months ended March 31, 2022, compared to $14.94 million for the same period in 2021, an increase of 61.5%[13] - General and administrative expenses increased by $9.2 million to $24.1 million, primarily due to a $4.2 million rise in building and facility-related expenses and a $2.7 million increase in personnel costs, representing a 62% increase year-over-year[121] Net Loss and Financial Position - The net loss attributable to Adaptive Biotechnologies Corporation for the three months ended March 31, 2022, was $62.74 million, compared to a net loss of $40.64 million for the same period in 2021, reflecting an increase of 54.3%[13] - The company reported a comprehensive loss of $66.38 million for the three months ended March 31, 2022, compared to a comprehensive loss of $40.90 million for the same period in 2021, an increase of 62.5%[16] - The accumulated deficit as of March 31, 2022, was $781.63 million, up from $718.89 million at the end of 2021, indicating a rise of 8.7%[9] - The total shareholders' equity as of March 31, 2022, was $553.26 million, down from $604.10 million at the end of 2021, a decrease of 8.4%[9] - Cash used in operating activities increased to $64,453 thousand in Q1 2022 from $58,245 thousand in Q1 2021[21] - Cash, cash equivalents, and marketable securities as of March 31, 2022, were $500.7 million, down from $570.2 million as of December 31, 2021[97] Cash Flow and Investments - Cash provided by investing activities was $37.7 million, mainly from maturities of marketable securities totaling $101.0 million, offset by $60.2 million in purchases of marketable securities[128] - Cash provided by financing activities was $2.7 million, primarily from stock option exercises, a decrease from $14.6 million in the same period of 2021[129] - The company plans to utilize existing cash for commercial activities, R&D initiatives, and capital expenditures related to laboratory space and equipment[123] Workforce and Restructuring - The company incurred approximately $2.0 million in restructuring costs in March 2022, primarily related to workforce reduction of about 100 employees[87] - The company reduced its workforce by approximately 100 employees as part of a restructuring plan aimed at reducing operating costs and aligning with strategic market opportunities[98] Future Outlook and Strategic Plans - The company has plans to expand its T-Detect product line with the goal of developing a multi-disease universal diagnostic test[5] - The company expects to launch T-Detect Lyme during the Lyme season of 2022, expanding its diagnostic product offerings[95] - The company anticipates revenue growth in the long term, particularly as the mix shifts towards clinical diagnostics and drug discovery[105] - The company expects research and development expenses to decrease as a percentage of revenue in the long term, although fluctuations may occur[108] Market and Customer Insights - Revenue from significant customers included 33.8% from Genentech and Roche Group in Q1 2022, down from 42.1% in Q1 2021[32] - The company has successfully expanded coverage for the clonoSEQ diagnostic test through agreements with Medicare and several major private health insurers in the U.S.[97] - clonoSEQ test volume reached 6,850 reports for the three months ended December 31, 2021, up from 5,300 reports for the same period in 2020, representing a year-over-year increase of 29.2%[103] - clonoSEQ test volume increased by 45% to 7,698 tests delivered in the three months ended March 31, 2022, compared to 5,300 tests in the same period in 2021[114]

Financial Data and Key Metrics Changes - Total revenue for 2021 was $154.3 million, a 57% increase from $98.4 million in 2020 [25] - Fourth quarter revenue was $37.9 million, representing a 26% increase from $30.2 million in the same period last year [21] - Net loss for Q4 2021 was $61.4 million compared to a net loss of $44.6 million in Q4 2020 [24] - Adjusted EBITDA for Q4 2021 was a loss of $44.9 million compared to a loss of $34.6 million in the same period last year [24] Business Line Data and Key Metrics Changes - The MRD business saw a 48% increase in tests delivered, totaling 22,516 tests in 2021 [13] - Sequencing revenue in 2021 was $78.9 million, a 90% increase from 2020 [25] - Development revenue for 2021 grew to $75.4 million, up 32% from the previous year [25] Market Data and Key Metrics Changes - The company reported that 28% of all tests were done in blood, indicating a significant market penetration [13] - The clonoSEQ assay is currently being used in 155 active trials by more than 60 pharma companies [15] Company Strategy and Development Direction - The company plans to report revenues based on two key business areas: MRD and immune medicine [8] - There is a focus on expanding the sales team to deepen penetration in academic centers and increase reach into the community [14] - The company aims to improve autoimmune signals and increase sensitivity while maintaining high specificity in diagnostics [19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming last year's headwinds and accelerating growth in 2022 [14] - The company expects full-year revenue for 2022 to be in the range of $185 million to $195 million, with a mid-40% growth in sequencing revenues [27] - Q1 2022 is expected to be the low watermark due to seasonality and Omicron impacts, with growth anticipated in the latter half of the year [28] Other Important Information - The company ended 2021 with approximately $570 million in cash and no debt [26] - The T-Detect COVID test received emergency use authorization from the FDA, marking a significant milestone [11] Q&A Session Summary Question: 2022 revenue guidance and its basis - Management indicated that the guidance reflects variability in revenues associated with milestones and the changing dynamics of the pandemic [32] Question: Demand for T-Detect COVID and its significance - Management acknowledged the importance of the T-Detect COVID test but noted it would not significantly impact the revenue profile for 2022 [34] Question: Internal structure changes regarding MRD and immune medicine - The company is aligning its organizational structure to better focus on MRD and immune medicine opportunities [39] Question: Clinical testing volumes and expectations - Management expects strong growth in clinical testing volumes in 2022, supported by an expanded sales team [44] Question: Progress on T-Detect for Crohn's and celiac diseases - The company is planning to launch a test for IBD next year, with a focus on high specificity and increasing sensitivity [62]

T-Detect - T-Detect COVID: Enhance product profile with semi-quant data and correlate of protection[6, 41] - T-Detect AI: Increase sensitivity/specificity in MS, IBD, RA for market readiness[6, 41] - T-Detect most advanced indications include COVID (Only FDA authorized test, Medicare coverage for immunocompromised patients), AUTOIMMUNE (Clinical signals in five diseases: Crohn's, colitis, celiac, MS, RA), and LYME (Study Completed, Lyme season readiness)[16] Drug Discovery - Advance lead shared candidate to development with GNE collaboration[6, 41] - Deliver 2 fully characterized additional shared candidates with GNE collaboration[6, 41] - Develop private product prototype with GNE collaboration[6, 41] - Phase 1/2 data from Nykode collaboration[6, 41] MRD (Minimal Residual Disease) - Obtain Medicare coverage of DLBCL[6, 41] - Read-out data for use in blood in MM/DLBCL[6, 41] - Expand adoption of MRD status as a co-/primary clinical endpoint[6, 41] - MRD has evolved into an essential clinical decision-making tool[37] - Broad coverage for clonoSEQ: >240 million lives[35] - >$330 million in future regulatory milestones for clonoSEQ[35]

Adaptive Biotechnologies Corporation (NASDAQ:ADPT) Q3 2021 Earnings Conference Call November 3, 2021 4:30 PM ET Company Participants Karina Calzadilla - Vice President of Investor Relations Chad Robins - Chairman, Co-Founder and Chief Executive Officer Chad Cohen - Chief Financial Officer Harlan Robins - Chief Scientific Officer Nitin Sood - Chief Commercial Officer Conference Call Participants Tycho Peterson - JPMorgan Chase & Co. Derik De Bruin - Bank of America Merrill Lynch Brian Weinstein - William Bla ...

Adaptive Biotechnologies Corporation (NASDAQ:ADPT) Q2 2021 Earnings Conference Call August 4, 2021 4:30 PM ET Company Participants Karina Calzadilla - Vice President of Investor Relations Chad Robins - Chief Executive Officer & Co-Founder Julie Rubinstein - President Chad Cohen - Chief Financial Officer Harlan Robins - Chief Scientific Officer Conference Call Participants Derik De Bruin - Bank of America Brian Weinstein - William Blair Doug Schenkel - Cowen Tycho Peterson - JPMorgan Mark Massaro - BTIG Davi ...

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited statements show significant revenue growth alongside a wider net loss and a decrease in total assets [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $1.03 billion, driven by a reduction in marketable securities and deferred revenue Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2021 (unaudited) | December 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $184,186 | $123,436 | | Short-term marketable securities | $414,227 | $564,833 | | **Total Assets** | **$1,033,374** | **$1,116,414** | | Total current liabilities | $116,648 | $105,197 | | **Total Liabilities** | **$340,064** | **$373,148** | | **Total Shareholders' Equity** | **$693,310** | **$743,266** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Quarterly revenue grew 83% year-over-year to $38.5 million, while the net loss widened to $49.3 million Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2021 | Q2 2020 | 6 Months 2021 | 6 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $38,505 | $20,988 | $76,947 | $41,898 | | Loss from Operations | $(49,765) | $(36,909) | $(91,045) | $(71,529) | | Net Loss | $(49,301) | $(33,535) | $(89,943) | $(64,938) | | Net Loss Per Share | $(0.35) | $(0.26) | $(0.64) | $(0.51) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities increased significantly to $95.5 million for the six-month period Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(95,458) | $(62,683) | | Net cash provided by investing activities | $135,266 | $320,251 | | Net cash provided by financing activities | $20,942 | $11,296 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail revenue recognition policies, significant customer concentration, and potential future milestone payments - Revenue is generated from Sequencing (clonoSEQ, T-Detect COVID, immunoSEQ) and Development services for biopharmaceutical customers[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) - The Genentech collaboration includes a **$300 million upfront payment** recognized over seven to eight years and over **$1.8 billion in potential future milestones**[48](index=48&type=chunk)[51](index=51&type=chunk) - The company could receive up to an additional **$327.0 million in milestone payments** from its MRD development agreements upon regulatory approvals[47](index=47&type=chunk) Significant Customer Revenue Concentration | Customer | % of Total Revenue (Q2 2021) | % of Total Revenue (6 Months 2021) | | :--- | :--- | :--- | | Genentech, Inc. and Roche Group | 46.0% | 44.1% | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management highlights 83% quarterly revenue growth, rising operating expenses, and a strong liquidity position [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Revenue growth was driven by increased sequencing volume and development milestones, offset by higher R&D and commercial investments - Clinical sequencing volume (excluding T-Detect COVID) **increased by 75%** to 5,475 tests, and research sequencing volume **increased by 65%** to 6,900 sequences in Q2 2021 compared to Q2 2020[118](index=118&type=chunk) Revenue Comparison (in thousands) | Revenue Type | Q2 2021 | Q2 2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Sequencing revenue | $18,555 | $7,985 | $10,570 | 132% | | Development revenue | $19,950 | $13,003 | $6,947 | 53% | | **Total revenue** | **$38,505** | **$20,988** | **$17,517** | **83%** | Operating Expense Comparison (in thousands) | Expense Category | Q2 2021 | Q2 2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of revenue | $10,765 | $4,912 | $5,853 | 119% | | Research and development | $37,800 | $25,992 | $11,808 | 45% | | Sales and marketing | $23,216 | $14,332 | $8,884 | 62% | | General and administrative | $16,066 | $12,238 | $3,828 | 31% | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity with $689.5 million in cash and marketable securities to fund operations for at least 12 months - As of June 30, 2021, the company had cash, cash equivalents, and marketable securities totaling **$689.5 million**[140](index=140&type=chunk) - Management believes **existing cash is sufficient** to fund operations and capital requirements for at least the next 12 months[140](index=140&type=chunk) Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(95,458) | $(62,683) | | Net cash provided by investing activities | $135,266 | $320,251 | | Net cash provided by financing activities | $20,942 | $11,296 | [Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure relates to interest rate changes affecting its cash and investment portfolio - The company is primarily exposed to market risk from **changes in interest rates** related to its cash and investment portfolio[151](index=151&type=chunk) [Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective as of June 30, 2021**[152](index=152&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect - As of the reporting date, the company is **not involved in any material legal proceedings**[153](index=153&type=chunk) [Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) No material changes have been made to the risk factors previously disclosed in the company's Annual Report on Form 10-K - There have been **no material changes** to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2020[154](index=154&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section is not applicable as there were no unregistered sales of equity securities during the reporting period - **No unregistered sales of equity securities** occurred during the period[155](index=155&type=chunk) [Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including required officer certifications and interactive data files - The report includes required **CEO and CFO certifications** pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)