Adaptive Biotechnologies (ADPT) Q2 2024 earnings summary

Executive summary

• MRD revenue grew 36% year-over-year in Q2 2024, reaching $35.3M and comprising 82% of total revenue, with strong clinical and pharma contributions.

• Operating expenses, excluding one-time items, declined 15% year-over-year and 8% sequentially, with reductions across all segments.

• Net loss narrowed to $46.2M from $47.8M year-over-year, with adjusted EBITDA loss improving to $21.4M from $24.8M.

• Cash, cash equivalents, and marketable securities totaled $291.9M as of June 30, 2024, with first-half cash burn reduced to ~$55M from $81M in the prior year.

• clonoSEQ test volume increased 36% year-over-year to 18,520 tests delivered.

Financial highlights

• Q2 2024 total revenue was $43.2M, down 12% year-over-year, with MRD revenue up 36% to $35.3M and Immune Medicine revenue down 66% to $7.9M.

• Adjusted EBITDA loss was $21.4M, improved from $24.8M year-over-year.

• Operating expenses were $90.5M, down 6% year-over-year; excluding $7.2M impairment, down 14%.

• Cost of revenue increased to $19.3M (45% of revenue) from $17.9M (37%) year-over-year.

• Net loss per share for Q2 2024 was $(0.31), compared to $(0.33) in Q2 2023.

Outlook and guidance

• Raised full-year MRD revenue guidance to $140M–$145M from $135M–$140M, reflecting Q2 outperformance.

• Lowered full-year operating expense guidance to $340M–$350M from $350M–$360M, excluding one-time costs.

• Full-year 2024 cash burn now projected at ~$115M, improved from previous estimate of $130M.

• Targeting EBITDA breakeven in the second half of 2025.

• Existing cash and marketable securities expected to fund operations for at least the next 12 months.