Adaptive Biotechnologies(ADPT) - 2021 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for 2021 was $154.3 million, a 57% increase from $98.4 million in 2020 [25] - Fourth quarter revenue was $37.9 million, representing a 26% increase from $30.2 million in the same period last year [21] - Net loss for Q4 2021 was $61.4 million compared to a net loss of $44.6 million in Q4 2020 [24] - Adjusted EBITDA for Q4 2021 was a loss of $44.9 million compared to a loss of $34.6 million in the same period last year [24] Business Line Data and Key Metrics Changes - The MRD business saw a 48% increase in tests delivered, totaling 22,516 tests in 2021 [13] - Sequencing revenue in 2021 was $78.9 million, a 90% increase from 2020 [25] - Development revenue for 2021 grew to $75.4 million, up 32% from the previous year [25] Market Data and Key Metrics Changes - The company reported that 28% of all tests were done in blood, indicating a significant market penetration [13] - The clonoSEQ assay is currently being used in 155 active trials by more than 60 pharma companies [15] Company Strategy and Development Direction - The company plans to report revenues based on two key business areas: MRD and immune medicine [8] - There is a focus on expanding the sales team to deepen penetration in academic centers and increase reach into the community [14] - The company aims to improve autoimmune signals and increase sensitivity while maintaining high specificity in diagnostics [19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming last year's headwinds and accelerating growth in 2022 [14] - The company expects full-year revenue for 2022 to be in the range of $185 million to $195 million, with a mid-40% growth in sequencing revenues [27] - Q1 2022 is expected to be the low watermark due to seasonality and Omicron impacts, with growth anticipated in the latter half of the year [28] Other Important Information - The company ended 2021 with approximately $570 million in cash and no debt [26] - The T-Detect COVID test received emergency use authorization from the FDA, marking a significant milestone [11] Q&A Session Summary Question: 2022 revenue guidance and its basis - Management indicated that the guidance reflects variability in revenues associated with milestones and the changing dynamics of the pandemic [32] Question: Demand for T-Detect COVID and its significance - Management acknowledged the importance of the T-Detect COVID test but noted it would not significantly impact the revenue profile for 2022 [34] Question: Internal structure changes regarding MRD and immune medicine - The company is aligning its organizational structure to better focus on MRD and immune medicine opportunities [39] Question: Clinical testing volumes and expectations - Management expects strong growth in clinical testing volumes in 2022, supported by an expanded sales team [44] Question: Progress on T-Detect for Crohn's and celiac diseases - The company is planning to launch a test for IBD next year, with a focus on high specificity and increasing sensitivity [62]