Adaptive Biotechnologies(US:ADPT)2023-05-02 16:00Financial Performance - Revenue for Q1 2023 was $37,647,000, a decrease of 2.5% compared to $38,620,000 in Q1 2022[10] - Total operating expenses for Q1 2023 were $94,840,000, down from $101,687,000 in Q1 2022, representing a reduction of approximately 6.7%[10] - Net loss for Q1 2023 was $57,700,000, compared to a net loss of $62,796,000 in Q1 2022, indicating an improvement of about 8.4%[10] - The company reported a comprehensive loss of $55,489,000 for Q1 2023, an improvement from a comprehensive loss of $66,442,000 in Q1 2022[12] - Net loss for the three months ended March 31, 2023, was $57.7 million, an improvement from a net loss of $62.8 million for the same period in 2022, representing a decrease of approximately 3.5%[16] - The net loss attributable to the company for the three months ended March 31, 2023, was $57.699 million, compared to a net loss of $62.736 million for the same period in 2022, indicating a reduction in loss of approximately 8%[76] - Adjusted EBITDA for the three months ended March 31, 2023, was $(37,098,000), an improvement from $(43,078,000) in the same period of 2022[102] Cash and Assets - Cash and cash equivalents increased to $94,612,000 as of March 31, 2023, up from $90,030,000 at the end of 2022[8] - Total assets decreased to $791,463,000 as of March 31, 2023, down from $856,617,000 at the end of 2022, reflecting a decline of approximately 7.6%[8] - Cash, cash equivalents, and restricted cash at the end of the period were $96.9 million, down from $117.2 million at the end of March 31, 2022, indicating a decrease of approximately 17.3%[16] - As of March 31, 2023, the company had cash, cash equivalents, and marketable securities totaling $440.7 million, down from $498.2 million as of December 31, 2022[80] Revenue Breakdown - Revenue from significant customers included Genentech, Inc. and Roche Group, contributing 26.6% of total revenue for the three months ended March 31, 2023, compared to 33.8% in the same period of 2022[25] - Immune Medicine revenue for Q1 2023 was $16.220 million, down 22.8% from $20.816 million in Q1 2022[29] - MRD service revenue increased significantly to $21.427 million in Q1 2023, compared to $14.804 million in Q1 2022, representing a growth of 44.7%[29] - The company recognized $9.1 million in collaboration revenue from the Genentech Agreement in Q1 2023, down from $12.3 million in Q1 2022[33] - Immune Medicine revenue decreased by $4,596,000, or 22%, primarily due to a $3,200,000 decrease from the Genentech Agreement and a $1,000,000 decrease from biopharmaceutical customers[93] - MRD revenue increased by $3,623,000, or 20%, driven by a $4,000,000 increase from clonoSEQ services and a $1,500,000 increase from MRD sample testing services[93] Expenses - Research and development expenses for Q1 2023 were $32,601,000, down from $37,839,000 in Q1 2022, a decrease of approximately 13.8%[10] - Research and development expenses decreased by $5,238,000, or 14%, mainly due to reduced investments in T-Detect and TCRAntigen Map development[95] - Sales and marketing expenses decreased by $3,785,000, or 15%, primarily due to lower personnel and marketing costs[98] - General and administrative expenses decreased by $3,313,000, or 14%, largely due to reduced building and facility-related expenses[99] - The company’s share-based compensation expense increased to $14.7 million for the three months ended March 31, 2023, compared to $12.9 million for the same period in 2022, reflecting an increase of approximately 14%[16] Future Outlook - The company expects revenue to increase over the long term, although fluctuations may occur due to the uncertain nature of product delivery and customer decisions[81] - The company expects revenue from current and future products and services to grow over the long term, despite potential near-term variability[104] - The company plans to utilize existing cash primarily for research and development initiatives, marketing activities, and streamlining laboratory operations[104] - The company is focused on expanding revenue in two growth areas: IM Pharma Services and Drug Discovery, leveraging its proprietary technologies[80] Liabilities and Agreements - Current liabilities decreased to $90,101,000 as of March 31, 2023, compared to $109,788,000 at the end of 2022, a reduction of about 18%[8] - The revenue interest liability increased from $125.360 million at December 31, 2022, to $127.008 million by March 31, 2023, with interest expense of $3.531 million recorded[49] - The company has a collaboration agreement with Genentech, which is a significant component of its revenue generation strategy[81] - The company has a responsibility to enter into a supply and manufacturing agreement for patient-specific TCRs related to Personalized Product therapies, which is contingent on Genentech's commercialization decisions[32] Stock and Equity - As of March 31, 2023, the company had reserved a total of 44,794,592 shares of common stock for future issuance under various equity incentive plans[54] - The company had 14,783,332 stock options outstanding with a weighted average exercise price of $15.97[61] - The total share-based compensation expense for the three months ended March 31, 2023, was $14.671 million, compared to $12.861 million for the same period in 2022, representing an increase of approximately 14%[71] - The weighted-average grant date fair value per share of stock options granted during the three months ended March 31, 2023, was $5.61, down from $7.81 in 2022[70] - The company granted 6,486,163 restricted stock units during the three months ended March 31, 2023, with 1,029,209 units vested during the same period[63]