Adaptive Biotechnologies (ADPT) Q4 2024 earnings summary

Executive summary

• Achieved 42% year-over-year MRD revenue growth in 2024, with MRD contributing 81% of full-year revenue and strong execution in Immune Medicine programs.

• Reduced cash burn by 40% from 2023, ending 2024 with $256 million in cash and marketable securities.

• Signed exclusive strategic commercial partnership with NeoGenomics and expanded Medicare coverage for clonoSEQ.

• Completed restructuring and resource realignment, narrowing focus on key programs and reducing OPEX by up to 25%.

• ODAC vote supported MRD as a primary endpoint in multiple myeloma, driving pharma momentum.

Financial highlights

• FY 2024 total revenue was $179 million, up 5% year-over-year; Q4 revenue was $47.5 million, up 4% year-over-year.

• MRD revenue for 2024 was $145.5–$146 million, up 42%, with $12.5 million in milestone revenue; Immune Medicine revenue was $33.4 million.

• Sequencing gross margin improved to 59% in Q4 and 53% for the year; Q4 gross margin calculated at 62%.

• Adjusted EBITDA loss for 2024 was $80.4 million, improved from $116.4 million in 2023; Q4 Adjusted EBITDA loss was $16.4 million.

• Net loss for the year was $159.5–$159.6 million, improved from $225.3 million in 2023.

Outlook and guidance

• 2025 MRD revenue guidance is $175–$185 million, with 24% growth at the midpoint and 30% growth excluding milestones.

• Operating expenses for 2025 projected at $340–$350 million, similar to 2024.

• 2025 cash burn expected between $60 million and $70 million, targeting a 28% reduction year-over-year.

• Aiming for Adjusted EBITDA positivity in MRD in the second half of 2025 and cash flow break-even in 1H 2026.

• IM aims to reduce cash burn to $25–$30 million in 2025 while advancing cancer and autoimmunity programs.