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Segment Information | 6 Months Ended
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Jun. 30, 2024
Segment Reporting [Abstract] |
Segment Information | 14. Segment Information In 2024, in connection with an organizational realignment, we began operating our business as two reporting segments: MRD and Immune Medicine. These segments are organized by market opportunity in commercial diagnostics and drug discovery, respectively. The MRD business focuses on the use of our highly sensitive, next-generation sequencing assay to measure MRD in patients with hematologic malignancies. It is comprised of our clonoSEQ clinical diagnostic test, offered to clinicians, and our clonoSEQ assay, offered to biopharmaceutical partners, to advance drug development efforts. Our MRD revenue consists of revenue generated from (1) providing our clonoSEQ report to clinical customers; (2) providing MRD sample testing services to biopharmaceutical customers and certain academic institutions, including investigator-led clinical trials; and (3) providing our clonoSEQ report or results to certain international laboratory sites through technology transfers. The Immune Medicine business leverages our proprietary ability to sequence, map, pair and characterize TCRs and B cell receptors (“BCRs”) at scale. We have created a powerful data engine to drive the development of novel therapies. Our Immune Medicine revenue consists of revenue generated from (1) providing sample testing services for our commercial research product, Adaptive Immunosequencing, to biopharmaceutical customers and academic institutions; and (2) our collaboration agreements with Genentech and other biopharmaceutical customers in areas of drug and target discovery. There are no inter-segment revenues. See Note 3, Revenue for more information about each segment's revenue. Our CODM evaluates performance of the MRD segment based on both revenue and Adjusted EBITDA and evaluates performance of the Immune Medicine segment based on Adjusted EBITDA. Adjusted EBITDA for each of our segments includes costs that are directly aligned to each segment, as well as certain allocated shared expenses. These shared expenses primarily relate to our general and administrative functions, our non-laboratory facility space in our corporate headquarters and our production laboratory. We use the relative direct headcount assigned to each of the respective segments and our production laboratory sample volume to allocate these expenses. We do not allocate certain expenses, such as our corporate insurance costs, external legal and audit costs and expenses related to our investor relations, chief executive officer and other related support functions. Additionally, we do not allocate costs related to our idle facility in Seattle, Washington, interest expense related to our Purchase Agreement nor interest and other income, net. Given these unallocated costs and income are not included in the measurements reviewed by the CODM to assess each segment's performance, they are included in "Unallocated Corporate" below. Our allocation methodology will be periodically evaluated and may change. Our CODM is not regularly provided nor reviews assets when assessing each segment's performance and to allocate resources. As such, assets for reportable segments are not disclosed. The following tables set forth our segment information for the three and six months ended June 30, 2024 and 2023, respectively (in thousands):
|  | Three Months Ended June 30, 2024 |
|  | MRD |  |  | Immune Medicine |  |  | Unallocated Corporate |  |  | Total |
Revenue |  | $ | 35,284 |  |  | $ | 7,906 |  |  | $ | — |  |  | $ | 43,190 |
Operating expenses |  |  | 58,361 |  |  |  | 26,133 |  |  |  | 6,014 |  |  |  | 90,508 |
Adjusted EBITDA(1) |  |  | (11,289 | ) |  |  | (7,033 | ) |  |  | (3,124 | ) |  |  | (21,446 | )
Reconciliation of Net Loss to Adjusted EBITDA: |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  | $ | (23,077 | ) |  | $ | (18,228 | ) |  | $ | (4,943 | ) |  | $ | (46,248 | )
Net loss attributable to noncontrolling interest |  |  | — |  |  |  | — |  |  |  | 26 |  |  |  | 26 |
Net loss attributable to Adaptive Biotechnologies Corporation |  |  | (23,077 | ) |  |  | (18,228 | ) |  |  | (4,917 | ) |  |  | (46,222 | )
Interest and other income, net |  |  | — |  |  |  | — |  |  |  | (3,766 | ) |  |  | (3,766 | )
Interest expense(2) |  |  | — |  |  |  | — |  |  |  | 2,696 |  |  |  | 2,696 |
Depreciation and amortization expense |  |  | 2,604 |  |  |  | 1,967 |  |  |  | 432 |  |  |  | 5,003 |
Impairment of long-lived assets(3) |  |  | 2,819 |  |  |  | 4,386 |  |  |  | — |  |  |  | 7,205 |
Restructuring expense(3) |  |  | 561 |  |  |  | 119 |  |  |  | — |  |  |  | 680 |
Share-based compensation expense(4) |  |  | 5,804 |  |  |  | 4,723 |  |  |  | 2,431 |  |  |  | 12,958 |
Adjusted EBITDA(1) |  | $ | (11,289 | ) |  | $ | (7,033 | ) |  | $ | (3,124 | ) |  | $ | (21,446 | )
|  | Three Months Ended June 30, 2023 |
|  | MRD |  |  | Immune Medicine |  |  | Unallocated Corporate |  |  | Total |
Revenue |  | $ | 25,882 |  |  | $ | 23,044 |  |  | $ | — |  |  | $ | 48,926 |
Operating expenses |  |  | 58,944 |  |  |  | 30,681 |  |  |  | 7,119 |  |  |  | 96,744 |
Adjusted EBITDA(1) |  |  | (23,079 | ) |  |  | 1,264 |  |  |  | (3,004 | ) |  |  | (24,819 | )
Reconciliation of Net Loss to Adjusted EBITDA: |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  | $ | (33,063 | ) |  | $ | (7,636 | ) |  | $ | (7,112 | ) |  | $ | (47,811 | )
Net loss attributable to noncontrolling interest |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 1 |
Net loss attributable to Adaptive Biotechnologies Corporation |  |  | (33,063 | ) |  |  | (7,636 | ) |  |  | (7,111 | ) |  |  | (47,810 | )
Interest and other income, net |  |  | — |  |  |  | — |  |  |  | (3,612 | ) |  |  | (3,612 | )
Interest expense(2) |  |  | — |  |  |  | — |  |  |  | 3,605 |  |  |  | 3,605 |
Depreciation and amortization expense |  |  | 2,267 |  |  |  | 2,608 |  |  |  | 778 |  |  |  | 5,653 |
Share-based compensation expense(4) |  |  | 7,717 |  |  |  | 6,292 |  |  |  | 3,336 |  |  |  | 17,345 |
Adjusted EBITDA(1) |  | $ | (23,079 | ) |  | $ | 1,264 |  |  | $ | (3,004 | ) |  | $ | (24,819 | )
|  | Six Months Ended June 30, 2024 |
|  | MRD |  |  | Immune Medicine |  |  | Unallocated Corporate |  |  | Total |
Revenue |  | $ | 67,910 |  |  | $ | 17,153 |  |  | $ | — |  |  | $ | 85,063 |
Operating expenses |  |  | 118,247 |  |  |  | 49,974 |  |  |  | 12,922 |  |  |  | 181,143 |
Adjusted EBITDA(1) |  |  | (28,548 | ) |  |  | (13,960 | ) |  |  | (7,118 | ) |  |  | (49,626 | )
Reconciliation of Net Loss to Adjusted EBITDA: |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  | $ | (50,337 | ) |  | $ | (32,821 | ) |  | $ | (10,623 | ) |  | $ | (93,781 | )
Net loss attributable to noncontrolling interest |  |  | — |  |  |  | — |  |  |  | 52 |  |  |  | 52 |
Net loss attributable to Adaptive Biotechnologies Corporation |  |  | (50,337 | ) |  |  | (32,821 | ) |  |  | (10,571 | ) |  |  | (93,729 | )
Interest and other income, net |  |  | — |  |  |  | — |  |  |  | (7,988 | ) |  |  | (7,988 | )
Interest expense(2) |  |  | — |  |  |  | — |  |  |  | 5,689 |  |  |  | 5,689 |
Depreciation and amortization expense |  |  | 5,305 |  |  |  | 4,049 |  |  |  | 863 |  |  |  | 10,217 |
Impairment of long-lived assets(3) |  |  | 2,819 |  |  |  | 4,386 |  |  |  | — |  |  |  | 7,205 |
Restructuring expense(3) |  |  | 1,028 |  |  |  | 696 |  |  |  | — |  |  |  | 1,724 |
Share-based compensation expense(4) |  |  | 12,637 |  |  |  | 9,730 |  |  |  | 4,889 |  |  |  | 27,256 |
Adjusted EBITDA(1) |  | $ | (28,548 | ) |  | $ | (13,960 | ) |  | $ | (7,118 | ) |  | $ | (49,626 | )
|  | Six Months Ended June 30, 2023 |
|  | MRD |  |  | Immune Medicine |  |  | Unallocated Corporate |  |  | Total |
Revenue |  | $ | 47,309 |  |  | $ | 39,264 |  |  | $ | — |  |  | $ | 86,573 |
Operating expenses |  |  | 114,969 |  |  |  | 62,353 |  |  |  | 14,262 |  |  |  | 191,584 |
Adjusted EBITDA(1) |  |  | (49,465 | ) |  |  | (6,163 | ) |  |  | (6,289 | ) |  |  | (61,917 | )
Reconciliation of Net Loss to Adjusted EBITDA: |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  | $ | (67,660 | ) |  | $ | (23,088 | ) |  | $ | (14,763 | ) |  | $ | (105,511 | )
Net loss attributable to noncontrolling interest |  |  | — |  |  |  | — |  |  |  | 2 |  |  |  | 2 |
Net loss attributable to Adaptive Biotechnologies Corporation |  |  | (67,660 | ) |  |  | (23,088 | ) |  |  | (14,761 | ) |  |  | (105,509 | )
Interest and other income, net |  |  | — |  |  |  | — |  |  |  | (6,636 | ) |  |  | (6,636 | )
Interest expense(2) |  |  | — |  |  |  | — |  |  |  | 7,136 |  |  |  | 7,136 |
Depreciation and amortization expense |  |  | 4,323 |  |  |  | 5,361 |  |  |  | 1,392 |  |  |  | 11,076 |
Share-based compensation expense(4) |  |  | 13,872 |  |  |  | 11,564 |  |  |  | 6,580 |  |  |  | 32,016 |
Adjusted EBITDA(1) |  | $ | (49,465 | ) |  | $ | (6,163 | ) |  | $ | (6,289 | ) |  | $ | (61,917 | )
(1) Adjusted EBITDA is a non-GAAP financial measure. See “Management's Discussion and Analysis of Financial Condition and Results of Operations—Adjusted EBITDA” for an explanation for how it is calculated and used by management. (2) Represents costs associated with our revenue interest liability and noncash interest costs associated with the amortization of the related deferred issuance costs. See Note 8, Revenue Interest Purchase Agreement for details on the Purchase Agreement. (3) Represents expenses recognized in conjunction with restructuring activities. See Note 12, Restructurings for details on our restructuring expenses. (4) Represents share-based compensation expense related to stock option, restricted stock unit and market-based restricted stock unit awards. See Note 11, Equity Incentive Plans for details on our share-based compensation expense. Segment information for the three and six months ended June 30, 2023 is presented on a comparable basis to that of the current periods and is based on judgments and allocation methods from our organizational changes implemented during the three months ended March 31, 2024.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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