Adaptive Biotechnologies(US:ADPT)2022-05-03 16:00Revenue 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]