Adaptive Biotechnologies(US:ADPT)2025-05-01 20:30Financial Performance - Revenue for Q1 2025 was $52,443,000, representing a 25.5% increase from $41,873,000 in Q1 2024[13] - Net loss for Q1 2025 was $29,830,000, a reduction of 37.4% compared to a net loss of $47,533,000 in Q1 2024[21] - Operating expenses for Q1 2025 totaled $82,047,000, down 9.6% from $90,635,000 in Q1 2024[13] - Total shareholders' equity decreased to $190,221,000 as of March 31, 2025, down from $202,485,000 at the end of 2024, a decline of 6.0%[11] - Total revenue for the three months ended March 31, 2025, was $52.443 million, a 25.1% increase from $41.873 million in the same period of 2024[41] - The company reported a net cash used in operating activities of $28,484,000 for Q1 2025, compared to $38,353,000 in Q1 2024, a reduction of 25.7%[21] - Total share-based compensation expense for the three months ended March 31, 2025, was $12.1 million, down from $14.3 million in 2024, representing a 15% reduction[99] Revenue Breakdown - MRD revenue for the three months ended March 31, 2025, was $43.721 million, up from $32.626 million in the prior year, representing a 34.0% increase[41] - Immune Medicine revenue decreased to $8.722 million in Q1 2025 from $9.247 million in Q1 2024, a decline of 5.7%[41] - The company recognized $2.0 million in MRD service revenue related to Medicare reimbursements during Q1 2025, compared to $1.5 million in Q1 2024[41] - MRD revenue increased by $11,095,000 (34%) to $43,721,000, driven by a $9,900,000 increase in revenue from clonoSEQ reports and a $1,000,000 increase from MRD sample testing services[139] - clonoSEQ test volume rose by 36% to 23,117 tests delivered in Q1 2025, up from 17,040 tests in Q1 2024[139] Expenses and Costs - Research and development expenses were $24,203,000 in Q1 2025, a decrease of 19.9% from $30,245,000 in Q1 2024[13] - Cost of revenue decreased by $1,072,000 (6%) to $16,979,000, with cost of materials down by $1,200,000 and labor and overhead costs reduced by $1,400,000[141] - Research and development expenses decreased by $6,042,000 (20%) to $24,203,000, representing 46% of total revenue compared to 72% in the prior year[142] - General and administrative expenses decreased by $2.2 million, mainly due to a $2.2 million reduction in personnel costs[146] Assets and Liabilities - Total current assets decreased to $256,489,000 as of March 31, 2025, down from $283,752,000 at the end of 2024, a decline of 9.6%[11] - Cash and cash equivalents increased to $50,646,000 from $47,920,000, reflecting a growth of 5.1%[11] - Total liabilities decreased to $320,631,000 as of March 31, 2025, down from $336,891,000 at the end of 2024, a decrease of 4.8%[11] - The company reported a restricted cash balance of $2.7 million as of March 31, 2025[30] - Total financial assets as of March 31, 2025, amounted to $213.6 million, including $31.5 million in money market funds and $161.2 million in U.S. government treasury securities[56] Future Prospects and Collaborations - The company has the potential to receive up to $412.0 million in future milestone payments contingent on regulatory approvals for therapeutics related to MRD data[42] - Under the Genentech collaboration agreement, the company may receive up to $1.8 billion in additional payments, including $65.0 million for regulatory milestones and $300.0 million for development milestones[44] - The company anticipates long-term growth in MRD revenue through increased clinical testing volume and optimized payor coverage[123] - Immune Medicine revenue is expected to grow as therapies advance to commercialization, although it may fluctuate due to various factors including collaboration expenses[124] Stock and Equity - The weighted-average shares used in computing net loss per share increased to 149,195,028 in Q1 2025 from 145,787,527 in Q1 2024[13] - As of March 31, 2025, the total shares of common stock reserved for future issuance amounted to 45,862,767[80] - The total shares available for grant decreased from 18,018,312 at December 31, 2024 to 10,957,287 at March 31, 2025[83] - Stock options outstanding as of March 31, 2025 totaled 11,936,635, with a weighted average exercise price of $15.37[85] Accounting and Compliance - The company’s financial statements are prepared in accordance with GAAP, and interim results may not be indicative of full-year performance[28] - The company has prepared unaudited condensed consolidated financial statements in accordance with GAAP, requiring estimates and judgments that may differ materially from actual results[176] - The company's disclosure controls and procedures were deemed effective as of March 31, 2025, with no changes that materially affected internal control over financial reporting during the three months ended[180] - There have been no material changes to the critical accounting policies and estimates as previously disclosed in the Annual Report for the year ended December 31, 2024[177] Risks and Legal Matters - The company operates in a rapidly changing environment with various risks that could materially affect its business and financial condition, with no material changes to risk factors since the last report[184] - The company is not currently involved in any legal proceedings that would have a material adverse effect on its business or financial condition[183]