Adaptive Biotechnologies Corporation (NASDAQ:ADPT) Q1 2024 Earnings Call Transcript May 7, 2024
Adaptive Biotechnologies Corporation beats earnings expectations. Reported EPS is $-0.32586, expectations were $-0.35. ADPT isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good day and thank you for standing by. Welcome to the Adaptive Biotechnologies First Quarter 2024 Earnings Call. Please note, all participants are in listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised today’s conference is being recorded. I would now like to hand the conference over to your first speaker today, Karina Calzadilla, Head of Investor Relations. Please go ahead.
Karina Calzadilla: Thank you, Corey, and good afternoon, everyone. I would like to welcome you to Adaptive Biotechnologies first quarter 2024 earnings conference call. Earlier today, we issued a press release reporting Adaptive financial results for the first quarter of 2024. The press release is available at www.adaptivebiotech.com. We are conducting a live webcast of this call and we’ll be referencing to a slide presentation that has been posted to the Investors section on our corporate website. During the call, management will be making projections and other forward-looking statements within the meaning of federal securities laws regarding future events and the future financial performance of the Company. These statements reflect management’s current perspective of the business as of today.
Actual results may differ materially from today’s forward-looking statements, depending on a number of factors, which are set forth in our public filings with the SEC and listed in this presentation. In addition, non-GAAP financial measures will be discussed during the call, and a reconciliation from non-GAAP to GAAP metrics can be found in our earnings release. Joining the call today are Chad Robins, our CEO and Co-founder; and Kyle Piskel, our Chief Financial Officer. Additional members from management will be available for Q&A. With that, I will turn the call over to Chad Robins. Chad?
Chad Robins: Thank you for Karina. Good afternoon and thank you for joining us on our first quarter earnings call. As communicated last month and shown on slide three, moving forward, both our MRD and Immune Medicine businesses will remain under the Adaptive umbrella, each with its own dedicated resources and separate segment reporting. This will provide each business with the autonomy to execute on the respective focused strategies which are for MRD, marching towards profitability with a strengthened financial profile and for Immune Medicine, translating science and cancer and auto-immunity into breakthrough therapeutic programs with clear guardrails to guide investment. Importantly, we continue to preserve our strong capital position with approximately $309 million as of March 31st, which enables us to bridge the MRD business to profitability and to support targeted investments in Immune Medicine.
Our position is further strengthened by access to additional non-dilutive capital through our agreement with OncoEMR. Now let’s take a closer look at the MRD business on slide four. The MRD business has an impressive quarter with $32.6 million in revenue representing 52% growth versus prior year driven by both clinical and pharma. On the clinical side, volumes continue to grow quarter-over-quarter with over 17,000 tests delivered in Q1, representing a 41% increase for prior year and a 9% increase sequentially. Growth came from all market indications and multiple myeloma continues to be the largest contributor representing approximately 40% of volume. The few sludge [ph] diesel lymphoma is our fastest growing indication growing approximately 25% quarter-over-quarter and now contributing to 5% of total tests.
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