Adaptive Biotechnologies(ADPT) - 2024 Q1 - Quarterly Results

Executive Summary & Recent Highlights Adaptive Biotechnologies reported Q1 2024 revenue of $41.9 million, driven by 52% MRD business growth, and strategically reorganized to separate MRD and Immune Medicine operations - Implemented a strategic reorganization to operate MRD and Immune Medicine businesses with dedicated resources, separate segment reporting, and disciplined capital allocation[1][2] - The FDA's Oncologic Drug Advisory Committee (ODAC) unanimously supported using MRD as a primary endpoint for accelerated approval of new multiple myeloma therapies[2] - Initiated antibody discovery campaigns in Immune Medicine for multiple sclerosis and type 1 diabetes to generate preclinical data in 2024[2] Q1 2024 Key Performance Indicators | Metric | Value | YoY Growth | | :--- | :--- | :--- | | Total Revenue | $41.9 million | 11% | | MRD Business Revenue | $32.6 million | 52% | | clonoSEQ Test Volume | 17,040 tests | 41% | Q1 2024 Financial Performance Q1 2024 total revenue increased 11% to $41.9 million, with operating expenses decreasing 4% to $90.6 million, resulting in a reduced net loss and improved Adjusted EBITDA loss Consolidated Results Q1 2024 total revenue increased to $41.9 million, while operating expenses decreased to $90.6 million, narrowing the net loss to $47.5 million or ($0.33) per share Q1 2024 Consolidated Statement of Operations Summary (in millions, except per share data) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $41.9 | $37.6 | +11% | | Total Operating Expenses | $90.6 | $94.8 | -4% | | Net Loss | ($47.5) | ($57.7) | Improved | | Net Loss Per Share | ($0.33) | ($0.40) | Improved | Non-GAAP Measures (Adjusted EBITDA) The company's non-GAAP Adjusted EBITDA loss for Q1 2024 improved to $28.2 million from $37.1 million in Q1 2023, reflecting better cost management Adjusted EBITDA (Non-GAAP) (in millions) | Period | Adjusted EBITDA Loss | | :--- | :--- | | Q1 2024 | ($28.2) | | Q1 2023 | ($37.1) | Segment Performance In Q1 2024, the MRD business achieved 52% revenue growth and narrowed its operating loss, while the Immune Medicine business saw a 43% revenue decline despite reduced expenses MRD Business The MRD business revenue surged 52% to $32.6 million in Q1 2024, driven by a 41% increase in clonoSEQ test volumes, and its Adjusted EBITDA loss improved to $17.3 million MRD Business Performance (in millions) | Metric | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $32.6 | $21.4 | +52% | | Operating Expenses | $59.9 | $56.0 | +7% | | Adjusted EBITDA Loss | ($17.3) | ($26.4) | +34% Improvement | Immune Medicine Business The Immune Medicine business revenue decreased 43% to $9.2 million in Q1 2024, with operating expenses reduced by 25% to $23.8 million, and its Adjusted EBITDA loss narrowed to $6.9 million Immune Medicine Business Performance (in millions) | Metric | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $9.2 | $16.2 | -43% | | Operating Expenses | $23.8 | $31.7 | -25% | | Adjusted EBITDA Loss | ($6.9) | ($7.4) | +7% Improvement | Financial Position As of March 31, 2024, Adaptive Biotechnologies maintained a solid liquidity position with $308.9 million in cash, cash equivalents, and marketable securities, with total assets at $620.3 million Key Balance Sheet Items (in millions) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash, cash equivalents & marketable securities | $308.9 | $346.4 | | Total Assets | $620.3 | $661.1 | | Total Liabilities | $345.6 | $352.9 | 2024 Updated Financial Guidance The company updated its full-year 2024 financial guidance, raising the lower end of MRD business revenue forecast and lowering total company operating expense expectations - MRD business full-year revenue guidance was updated to a range of $135 million to $140 million, from the previous range of $130 million to $140 million[5] - Full-year total company operating expenses are now expected to be between $350 million and $360 million, down from the previous range of $360 million to $370 million[5] - No revenue guidance is provided for the Immune Medicine business[5] Appendix: Financial Statements and Reconciliations This appendix provides detailed unaudited financial statements for Q1 2024, including consolidated statements of operations, balance sheets, and Adjusted EBITDA reconciliations Condensed Consolidated Statements of Operations Presents the company's unaudited condensed consolidated statements of operations for the period ended March 31, 2024 Condensed Consolidated Balance Sheets Details the company's unaudited condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023 Adjusted EBITDA Reconciliation Provides a reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA for the reported periods Segment Information Presents detailed financial information for the company's MRD and Immune Medicine business segments