Adaptive Biotechnologies(US:ADPT)2024-11-07 21:30Revenue Performance - Revenue for the three months ended September 30, 2024, was $46,435,000, representing a 22.5% increase from $37,919,000 for the same period in 2023[7]. - Total revenue for the three months ended September 30, 2024, was $46.4 million, a 22.5% increase from $37.9 million in the same period of 2023[24]. - MRD revenue for the three months ended September 30, 2024, was $37.5 million, up 51.6% from $24.7 million in the same period of 2023[24]. - Immune Medicine revenue for the three months ended September 30, 2024, was $9.0 million, a decrease of 32.5% from $13.3 million in the same period of 2023[24]. - For the nine months ended September 30, 2024, total revenue was $131,498,000, with MRD revenue at $105,380,000 and Immune Medicine revenue at $26,118,000[59]. - Total MRD revenue for the nine months ended September 30, 2024, was $105.4 million, representing a 46% increase compared to $71.9 million in 2023[85]. Expenses and Losses - Total operating expenses for the three months ended September 30, 2024, were $79,067,000, down from $88,875,000 in the same period of 2023, a decrease of 10.2%[7]. - Net loss attributable to Adaptive Biotechnologies Corporation for the three months ended September 30, 2024, was $(32,071,000), an improvement from $(50,300,000) in the same period of 2023, reflecting a 36.2% reduction in losses[7]. - The company reported a comprehensive loss of $(31,392,000) for the three months ended September 30, 2024, compared to $(49,657,000) for the same period in 2023, indicating a 36.8% improvement[8]. - The net loss for the nine months ended September 30, 2024, was $125,878,000, compared to a net loss of $155,837,000 for the same period in 2023, indicating a reduction in losses[12]. - The company recognized $9.1 million in restructuring costs during the nine months ended September 30, 2024, primarily related to one-time termination benefits and impairment charges[50]. Cash and Assets - Cash and cash equivalents decreased to $38,084,000 as of September 30, 2024, down from $65,064,000 at December 31, 2023, a decline of 41.5%[6]. - Total assets decreased to $558,506,000 as of September 30, 2024, compared to $661,134,000 at December 31, 2023, a reduction of 15.6%[6]. - Cash, cash equivalents, and marketable securities as of September 30, 2024, were $267.2 million, down from $346.4 million as of December 31, 2023[62]. - Cash used in operating activities for the nine months ended September 30, 2024, was $82.7 million, down from $129.4 million in the same period in 2023, representing a 36% decrease[102][103]. Shareholder Equity and Stock Options - The company’s additional paid-in capital increased to $1,493,394,000 as of September 30, 2024, compared to $1,452,502,000 at December 31, 2023, an increase of 2.8%[6]. - As of September 30, 2023, total shareholders' equity was $361,637,000, a decrease from $395,967,000 as of June 30, 2023, reflecting a net loss of $50,326,000 during the quarter[10]. - The balance of common shares increased from 144,772,751 as of September 30, 2023, to 147,561,586 as of September 30, 2024, indicating an increase in share issuance[11]. - The stock options outstanding decreased from 12,875,045 shares at December 31, 2023, to 12,411,036 shares at September 30, 2024, with a weighted average exercise price of $15.06[44]. Research and Development - Research and development expenses for the three months ended September 30, 2024, were $24,163,000, down from $28,533,000 in the same period of 2023, a decrease of 15.5%[7]. - Research and development expenses decreased by $4,370,000 to $24,163,000, primarily due to a $3.7 million reduction in personnel costs[78]. - Research and development expenses are expected to decrease in the short term and as a percentage of revenue in the long term[68]. Collaboration and Revenue Recognition - The company entered into a collaboration agreement with Genentech in December 2018, receiving an upfront payment of $300 million and a milestone payment of $10 million in 2023, with potential total payments of up to $1.8 billion[25]. - As of September 30, 2024, the company recognized $3.5 million in collaboration revenue for the quarter and $10 million for the nine months, compared to $8 million and $34.7 million for the same periods in 2023, respectively[26]. - Revenue recognition for the Genentech Agreement is expected to occur over a period of approximately nine years from the effective date[26]. Market and Future Outlook - The company expects long-term growth in MRD revenue through increased clinical testing volume and expanded patient populations[65]. - The Immune Medicine revenue is anticipated to grow as therapies advance toward commercialization, although it may fluctuate due to various factors[66]. - The company expects revenue from current and future products and services to grow over the long term, despite anticipated near-term revenue variability[99].