Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

504c122db7c0bc695eaa3b6721d0298e37a93bb94ce8084342916df4d9c96c9a

Current Assets (USD, thousands)

Cash and Cash Equivalents (USD, thousands)

Accounts Receivable (USD, thousands)

Inventory (USD, thousands)

Non-Current Assets (USD, thousands)

Property, Plant, and Equipment (PP&E) (USD, thousands)

Goodwill (USD, thousands)

Intangible Assets (USD, thousands)

Current Liabilities (USD, thousands)

Accounts Payable (USD, thousands)

Short-term Debt (USD, thousands)

Accrued Expenses (USD, thousands)

Non-Current Liabilities (USD, thousands)

Long-term Debt (USD, thousands)

Lease Liabilities (USD, thousands)

Deferred Tax Liabilities (USD, thousands)

Shareholders' Equity (USD, thousands)

Retained Earnings (USD, thousands)

Common Stock (USD, thousands)

Additional Paid-in Capital (USD, thousands)

3bef9c7a1a2b3ea37b18a05cffb1a44051ec656e98d2be337877f4c093bdfa56

- Service Revenue

- Regulatory Milestones

Immune Medicine

- Collaboration Revenue

Sequencing Revenue

Development Revenue

Total Revenue

dd35f70770fc8cee3562b103507383f774ae679eda57dd9505317a47a79b3f39

3f314bbbc23e33f4229fc57035d2b07b82ba0e7a5d4f098b691a6181c3e3af8f

Revenue (USD, thousands)

Cost of Revenue (USD, thousands)

Research and Development Expenses (USD, thousands)

Sales and Marketing Expenses (USD, thousands)

General and Administrative Expenses (USD, thousands)

Amortization of Intangible Assets (USD, thousands)

Total Operating Expenses (USD, thousands)

Loss from Operations (USD, thousands)

Interest and Other Income, Net (USD, thousands)

Interest Expense (USD, thousands)

Net Loss (USD, thousands)

Net Loss Attributable to Noncontrolling Interest (USD, thousands)

Net Loss Attributable to Adaptive Biotechnologies Corporation (USD, thousands)

Net Loss per Share Attributable to Adaptive Biotechnologies Corporation Common Shareholders, Basic and Diluted (USD)

Weighted-average Shares Used in Computing Net Loss per Share Attributable to Adaptive Biotechnologies Corporation Common Shareholders, Basic and Diluted

e38e1fd1dfb134a0ac1dba8cfadd59a221e952bebb360502536e99b150176f19

69c2af66bc1c47938ce4c4cf029b2b8734ac664e8b362fd15d019097b4b40848

The sharp drop in **cash and cash equivalents** during Q3 2024 was primarily driven by a substantial **net cash outflow of $82.7 million** from operating activities, which was largely due to a **net loss of $125.9 million**. Non-cash adjustments such as **share-based compensation of $40.8 million** and **depreciation of $13.5 million** partially offset this loss, while some inflows from investing activities (notably, proceeds from maturities of marketable securities) and a minor financing inflow were not enough to offset the operating losses. Overall, these factors contributed to a **decrease of $26.9 million** in the combined balance of cash, cash equivalents, and restricted cash during the period.  **[0000950170-24-123423_adpt-20240930.htm:5]** 

Why did Cash and cash equivalents drop so sharply in Q3 2024?

The decline in Total assets in Q3 2024 was driven by several factors. **Cash and cash equivalents** dropped from **$65,064 thousand to $38,084 thousand**, and **short-term marketable securities** fell from **$281,337 thousand to $205,245 thousand**. Additionally, there was a reduction in **property and equipment, net** (from **$68,227 thousand to $51,314 thousand**), a decrease in **operating lease right-of-use assets** (from **$52,096 thousand to $46,530 thousand**), and a drop in **inventory** (from **$14,448 thousand to $11,955 thousand**), all contributing to a cumulative decline of **$102,628 thousand** in total assets.  **[0000950170-24-123423_adpt-20240930.htm:2]** **[0000950170-24-123369_adpt-ex99_1.htm:5]** 

What drove the decline in Total assets in Q3 2024?

The documents indicate that **accounts payable** surged in Q1 2024 because it increased from **$7,719 thousand** at the end of 2023 to **$12,170 thousand** at the end of Q1 2024.  **[0000950170-24-054604_adpt-20240331.htm:2]**  However, the documents do not provide specific details on the underlying factors causing this increase, although such changes are generally driven by the timing of supplier payments, shifts in purchasing activity, or deliberate cash flow management decisions.  **[0000950170-24-054604_adpt-20240331.htm:2]** 

What caused the surge in Accounts payable in Q1 2024?

The **Property and equipment, net** declined from **$68,227 thousand** at December 31, 2023 to **$51,314 thousand** as of September 30, 2024. However, the documents do not list any specific reasons for this decrease.  **[0000950170-24-123423_adpt-20240930.htm:2]** 

Why did Property and equipment decline so much in Q3 2024?

Several factors contributed to the reduction in short-term marketable securities in Q3 2024. The company appears to have **reallocated investments** away from short-term marketable securities, possibly to fund operational needs. Additionally, **operating cash needs** played a role, as evidenced by a reported **net loss of $32,071 thousand** during Q3 2024. There was also a **shift towards long-term marketable securities**, with the company reporting **$23,866 thousand** in long-term securities as of September 30, 2024—assets that were not present at the end of 2023. Finally, an overall decline in total assets from **$661,134 thousand** to **$558,506 thousand** further reflects the broader reduction in cash and marketable investments. These factors collectively explain the decrease in short-term marketable securities in Q3 2024.  **[0000950170-24-123423_adpt-20240930.htm:2]** 

What factors led to the reduction in Short-term marketable securities in Q3 2024?

afb28a3334ca539c6d0269136bf7c6c5688164ca8708c9e918a509bcd43c09e6

The **less negative operating cash flow** in Q2 2024 primarily resulted from a **smaller net loss** along with several **favorable noncash adjustments** and **improvements in operating assets and liabilities**. Specifically, the net loss decreased (from **$105.5 million** in the prior period to **$93.8 million** in 2024), and key noncash costs such as **share-based compensation**, **depreciation and amortization**, **noncash lease expense**, and **noncash interest expense** were all reduced. Additionally, more favorable changes in working capital—like smaller reductions in deferred revenue and accounts receivable—also contributed to the reduction in cash used in operating activities.  **[0000950170-24-089342_adpt-20240630.htm:50]** **[0000950170-24-089342_adpt-20240630.htm:5]** 

Why is operating cash flow much less negative in Q2 2024?

The documents do not provide specific details on the reasons for the huge spike in **Other adjustments to net loss** in Q3 2024.   

What caused the huge spike in other adjustments in Q3 2024?

Adaptive Biotechnologies’ significantly lower net loss in **Q3 2024** was driven by several key factors. The company experienced **revenue growth** of **22%**, with total revenue reaching **$46.4 million**, primarily due to the MRD business, which saw a **52%** revenue increase to **$37.5 million**. Furthermore, **operating expenses** were reduced by **11%** (from **$88.9 million** down to **$79.1 million**) owing to more targeted investments and improved efficiencies in research and development. The firm also benefited from an improved **adjusted EBITDA loss**, which narrowed from **$29.8 million** to **$14.3 million**. Despite a slight decrease in **interest and other income** (from **$4.3 million** to **$3.5 million**), these factors collectively contributed to the drop in net loss.  **[0000950170-24-123423_adpt-20240930.htm:30]** **[0000950170-24-123369_adpt-ex99_1.htm:0]** **[ADPT_3406968_3]** 

What factors led to the significantly lower net loss in Q3 2024?

The dramatic inventory change in Q4 2023 was driven primarily by a **49% increase in clonoSEQ test volumes**—requiring higher inventory levels to support increased production and delivery—and by the company's efforts to build inventory in anticipation of growing demand in blood-based testing and the commercialization of non-Hodgkin's lymphoma. Additionally, operational adjustments such as lab moves also played a role in this swing.  **[0000950170-24-015230_adpt-ex99_1.htm:0]** **[ADPT_3373435_3]** **[ADPT_3373435_1]** 

Why did inventory change swing so dramatically in Q4 2023?

bd97d89b53c77b5e7da43b0c61584205844227ed778418303451eeefb1be9d63

The loss from operations was elevated primarily due to several factors: **a significant revenue decrease** (notably, a 17% drop driven by a 45% decrease in Immune Medicine revenue partially offset by a 9% increase in MRD revenue), a **$25.4 million lease impairment charge** related to legacy lab and headquarters space, and a **24% rise in operating expenses** (with expenses increasing from $94.4 million to $116.9 million, although excluding the impairment charge, there was actually a slight 3% decrease).  **[0000950170-24-015230_adpt-ex99_1.htm:0]** 

Why was the loss from operations so high in Q4 2023?

In Q4 2023, the higher net loss was primarily driven by a **significant revenue decline**—including a **17% drop in total revenue** impacted by a **45% decrease in Immune Medicine revenue**—and an **increase in operating expenses** due to a substantial **lease impairment charge of $25.4 million**. Despite improvements in interest and other income and a decrease in interest expense, these factors were not enough to offset the revenue decline and added costs, leading to an overall expansion of the net loss.  **[0000950170-24-015230_adpt-ex99_1.htm:0]** **[ADPT_3373435_3]** 

What drove the higher net loss in Q4 2023?

The EPS worsened in **Q4 2023** primarily due to a combination of **increased operating expenses** and a **decline in revenue**. Specifically, there was a notable **$25.4 million lease impairment charge** that significantly raised operating expenses, and overall revenue dropped by **17%** with a **45% decline** in Immune Medicine revenue. These factors led to an increase in net loss from **$40.2 million** in Q4 2022 to **$69.5 million** in Q4 2023, resulting in the Net Loss per Share worsening from **$(0.28)** to **$(0.48)**.  **[0000950170-24-015230_adpt-ex99_1.htm:4]** **[0000950170-24-015230_adpt-ex99_1.htm:0]** 

Why did the EPS worsen in Q4 2023?

Adaptive Biotechnologies’ improved operating loss in Q3 2024 was driven by **three key factors**. First, **robust revenue growth** played a major role—with overall revenue increasing by **22%**, mainly fueled by a **52% increase** in the MRD business, which contributed **81% of total revenue**.  **[0000950170-24-123423_adpt-20240930.htm:3]** **[0000950170-24-123369_adpt-ex99_1.htm:0]**  Second, there was a significant **reduction in operating expenses**; total operating expenses dropped by **11%**, due to lower MRD (6% decrease) and Immune Medicine (22% decrease) operating costs.  **[0000950170-24-123423_adpt-20240930.htm:3]** **[0000950170-24-123369_adpt-ex99_1.htm:0]**  Lastly, the company’s **disciplined cost management strategies**, including reductions in **R&D expenses by 15%** and **G&A expenses by 14%**, contributed to the improved loss from operations.  **[0000950170-24-123423_adpt-20240930.htm:3]** **[0000950170-24-123369_adpt-ex99_1.htm:0]** 

What factors contributed to the improved operating loss in Q3 2024?

Adaptive Biotechnologies’ FY 2023 revenue drop was primarily due to a **31% decline in Immune Medicine revenue**, which dropped from **$98,164 thousand** in FY 2022 to **$67,537 thousand** in FY 2023. This decrease was driven by a **$20.2 million reduction** in revenue from the Genentech Agreement, along with additional declines from biopharmaceutical customers and T-Detect COVID clinical customers. Meanwhile, while MRD revenue grew by **18%** (from **$87,144 thousand** to **$102,739 thousand**), this gain was offset by the absence of regulatory milestone revenues in FY 2023 and compounded by macroeconomic challenges impacting pharma services revenue.  **[0000950170-24-023095_adpt-20231231.htm:130]** **[0000950170-24-023095_adpt-20231231.htm:161]** **[0000950170-24-023095_adpt-20231231.htm:8]** **[0000950170-24-015230_adpt-ex99_1.htm:0]** 

Adaptive Biotechnologies Corp (ADPT)

Financials