10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____to _____

Commission File Number: 001-38957

ADAPTIVE BIOTECHNOLOGIES CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Washington	27-0907024
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1165 Eastlake Avenue East  Seattle, Washington	98109
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (206) 659-0067

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.0001 per share	ADPT	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of July 29, 2022, the registrant had 142,872,988 shares of common stock, $0.0001 par value per share, outstanding.

Table of Contents

		Page
PART I.	FINANCIAL INFORMATION	4
Item 1.	Financial Statements (Unaudited)	4
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Operations	5
	Condensed Consolidated Statements of Comprehensive Loss	6
	Condensed Consolidated Statements of Shareholders’ Equity	7
	Condensed Consolidated Statements of Cash Flows	9
	Notes to Unaudited Condensed Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	34
PART II.	OTHER INFORMATION	35
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3.	Defaults Upon Senior Securities	35
Item 4.	Mine Safety Disclosures	35
Item 5.	Other Information	35
Item 6.	Exhibits	36
Signatures		37

Adaptive Biotechnologies Corporation

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements that are based on management’s beliefs and assumptions and on information currently available to management. All statements contained in this report other than statements of historical fact are forward-looking statements, which include but are not limited to, statements about:

• our ability to leverage and extend our immune medicine platform to discover, develop and commercialize our products and services, including further commercialization and development of products and services related to our Immune Medicine and Minimal Residual Disease (“MRD”) market opportunities, particularly in light of the novelty of immune medicine and our methods;

• our ability to achieve and maintain commercial market acceptance of our current products and services, such as clonoSEQ, T-Detect and immunoSEQ, as well as our ability to achieve market acceptance for any additional products and services beyond our current portfolio, if developed;

• our collaboration with Genentech, Inc. (“Genentech”) and our ability to develop and commercialize cellular therapeutics, including our ability to achieve milestones and realize the intended benefits of the collaboration;

• our ability to develop a map of the interaction between the immune system and disease (“TCR-Antigen Map”) and yield insights from it that are commercially viable, including with respect to the T-Detect product line; and

• our expected reliance on collaborators and other third parties for development, clinical testing and regulatory approval of current products in new indications and potential product candidates, which may fail at any time due to a number of possible unforeseen events.

The forward-looking statements in this report also include statements regarding our ability to develop, commercialize and achieve market acceptance of our current and planned products and services, our research and development efforts and other matters regarding our business strategies, use of capital, results of operations and financial position and plans and objectives for future operations. In some cases, you can identify forward-looking statements by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under “Risk Factors,” “Management's Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this report and in other documents we file with the Securities and Exchange Commission (“SEC”) from time to time. We caution you that forward-looking statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. As a result, the forward-looking statements may not prove to be accurate. The forward-looking statements in this report represent our views as of the date of this report.

We undertake no obligation to update any forward-looking statements for any reason, except as required by law.

Unless otherwise stated or the context otherwise indicates, references to “we,” “us,” “our” and similar references refer to Adaptive Biotechnologies Corporation.

3

Adaptive Biotechnologies Corporation

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

Condensed Consolidated Balance Sheets

(in thousands, except share and per share amounts)

	June 30, 2022			December 31, 2021
	(unaudited)
Assets
Current assets
Cash and cash equivalents	$	76,412		$	139,065
Short-term marketable securities (amortized cost of $310,999 and $214,115, respectively)		307,326			213,996
Accounts receivable, net		23,712			17,409
Inventory		18,778			19,263
Prepaid expenses and other current assets		12,347			13,015
Total current assets		438,575			402,748
Long-term assets
Property and equipment, net		86,852			85,262
Operating lease right-of-use assets		84,398			87,678
Long-term marketable securities (amortized cost of $69,055 and $218,163, respectively)		66,928			217,145
Restricted cash		2,446			2,138
Intangible assets, net		7,684			8,526
Goodwill		118,972			118,972
Other assets		778			875
Total assets	$	806,633		$	923,344
Liabilities and shareholders’ equity
Current liabilities
Accounts payable	$	2,720		$	3,307
Accrued liabilities		9,447			9,343
Accrued compensation and benefits		9,772			15,642
Current portion of operating lease liabilities		8,615			5,055
Current portion of deferred revenue		80,914			80,460
Total current liabilities		111,468			113,807
Long-term liabilities
Operating lease liabilities, less current portion		102,727			106,685
Deferred revenue, less current portion		74,122			98,750
Total liabilities		288,317			319,242
Commitments and contingencies (Note 9)
Shareholders’ equity
Preferred stock: $0.0001 par value, 10,000,000 shares authorized at June 30, 2022 and December 31, 2021; no shares issued and outstanding at June 30, 2022 and December 31, 2021		—			—
Common stock: $0.0001 par value, 340,000,000 shares authorized at June 30, 2022 and December 31, 2021; 142,784,868 and 141,393,865 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively		14			14
Additional paid-in capital		1,357,763			1,324,006
Accumulated other comprehensive loss		(5,800	)		(1,137	)
Accumulated deficit		(833,673	)		(718,891	)
Total Adaptive Biotechnologies Corporation shareholders’ equity		518,304			603,992
Noncontrolling interest		12			110
Total shareholders’ equity		518,316			604,102
Total liabilities and shareholders’ equity	$	806,633		$	923,344

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

Adaptive Biotechnologies Corporation

Condensed Consolidated Statements of Operations

(in thousands, except share and per share amounts)

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Revenue	$	43,660		$	38,505		$	82,280		$	76,947
Operating expenses
Cost of revenue		13,221			10,765			26,413			20,756
Research and development		37,037			37,800			74,876			71,572
Sales and marketing		24,281			23,216			50,374			43,820
General and administrative		21,200			16,066			45,344			31,002
Amortization of intangible assets		423			423			842			842
Total operating expenses		96,162			88,270			197,849			167,992
Loss from operations		(52,502	)		(49,765	)		(115,569	)		(91,045	)
Interest and other income, net		418			464			689			1,102
Net loss		(52,084	)		(49,301	)		(114,880	)		(89,943	)
Add: Net loss attributable to noncontrolling interest		38			—			98			—
Net loss attributable to Adaptive Biotechnologies Corporation	$	(52,046	)	$	(49,301	)	$	(114,782	)	$	(89,943	)
Net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted	$	(0.37	)	$	(0.35	)	$	(0.81	)	$	(0.64	)
Weighted-average shares used in computing net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted		142,363,589			140,359,317			142,032,261			139,667,380

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

Adaptive Biotechnologies Corporation

Condensed Consolidated Statements of Comprehensive Loss

(in thousands)

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Net loss	$	(52,084	)	$	(49,301	)	$	(114,880	)	$	(89,943	)
Other comprehensive loss
Change in unrealized gains and losses on investments		(1,017	)		(415	)		(4,663	)		(677	)
Comprehensive loss		(53,101	)		(49,716	)		(119,543	)		(90,620	)
Add: Comprehensive loss attributable to noncontrolling interest		38			—			98			—
Comprehensive loss attributable to Adaptive Biotechnologies Corporation	$	(53,063	)	$	(49,716	)	$	(119,445	)	$	(90,620	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

Adaptive Biotechnologies Corporation

Condensed Consolidated Statements of Shareholders’ Equity

(in thousands, except share amounts)

(unaudited)

	Common Stock				Additional		Accumulated Other			Accumulated			Noncontrolling			Total
	Shares		Amount		Paid-In Capital		Comprehensive Gain (Loss)			Deficit			Interest			Shareholders’ Equity
Balance at March 31, 2021		139,884,698	$	14	$	1,277,197	$	631		$	(552,254	)	$	129		$	725,717
Issuance of common stock for cash upon exercise of stock options		766,557		—		6,060		—			—			—			6,060
Vesting of restricted stock units		12,500		—		—		—			—			—			—
Common stock option and restricted stock unit share-based compensation		—		—		11,249		—			—			—			11,249
Other comprehensive loss		—		—		—		(415	)		—			—			(415	)
Net loss		—		—		—		—			(49,301	)		—			(49,301	)
Balance at June 30, 2021		140,663,755	$	14	$	1,294,506	$	216		$	(601,555	)	$	129		$	693,310
Balance at March 31, 2022		142,183,258	$	14	$	1,339,601	$	(4,783	)	$	(781,627	)	$	50		$	553,255
Issuance of common stock for cash upon exercise of stock options		581,881		—		3,982		—			—			—			3,982
Vesting of restricted stock units		19,729		—		—		—			—			—			—
Common stock option, restricted stock unit and market-based restricted stock unit share-based compensation		—		—		14,180		—			—			—			14,180
Other comprehensive loss		—		—		—		(1,017	)		—			—			(1,017	)
Net loss		—		—		—		—			(52,046	)		(38	)		(52,084	)
Balance at June 30, 2022		142,784,868	$	14	$	1,357,763	$	(5,800	)	$	(833,673	)	$	12		$	518,316

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

Adaptive Biotechnologies Corporation

Condensed Consolidated Statements of Shareholders’ Equity (Continued)

(in thousands, except share amounts)

(unaudited)

	Common Stock				Additional		Accumulated Other			Accumulated			Noncontrolling			Total
	Shares		Amount		Paid-In Capital		Comprehensive Gain (Loss)			Deficit			Interest			Shareholders’ Equity
Balance at December 31, 2020		137,646,896	$	14	$	1,253,971	$	893		$	(511,612	)	$	—		$	743,266
Issuance of common stock upon exercise of common stock warrant		54,162		—		—		—			—			—			—
Issuance of common stock for cash upon exercise of stock options		2,950,197		—		20,502		—			—			—			20,502
Vesting of restricted stock units		12,500		—		—		—			—			—			—
Common stock option and restricted stock unit share-based compensation		—		—		19,733		—			—			—			19,733
Capital contributions for Digital Biotechnologies, Inc.		—		—		300		—			—			129			429
Other comprehensive loss		—		—		—		(677	)		—			—			(677	)
Net loss		—		—		—		—			(89,943	)		—			(89,943	)
Balance at June 30, 2021		140,663,755	$	14	$	1,294,506	$	216		$	(601,555	)	$	129		$	693,310
Balance at December 31, 2021		141,393,865	$	14	$	1,324,006	$	(1,137	)	$	(718,891	)	$	110		$	604,102
Issuance of common stock for cash upon exercise of stock options		1,230,089		—		6,716		—			—			—			6,716
Vesting of restricted stock units		160,914		—		—		—			—			—			—
Common stock option, restricted stock unit and market-based restricted stock unit share-based compensation		—		—		27,041		—			—			—			27,041
Other comprehensive loss		—		—		—		(4,663	)		—			—			(4,663	)
Net loss		—		—		—		—			(114,782	)		(98	)		(114,880	)
Balance at June 30, 2022		142,784,868	$	14	$	1,357,763	$	(5,800	)	$	(833,673	)	$	12		$	518,316

The accompanying notes are an integral part of these condensed consolidated financial statements.

8

Adaptive Biotechnologies Corporation

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

	Six Months Ended June 30,
	2022			2021
Operating activities
Net loss	$	(114,880	)	$	(89,943	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation expense		9,409			4,734
Noncash lease expense		3,597			3,489
Share-based compensation expense		27,041			19,733
Intangible assets amortization		842			842
Investment amortization		1,414			4,174
Research and development inventory reserve		2,769			—
Other		(19	)		(7	)
Changes in operating assets and liabilities
Accounts receivable, net		(6,303	)		(4,127	)
Inventory		(2,284	)		(4,549	)
Prepaid expenses and other current assets		644			1,995
Accounts payable and accrued liabilities		(8,956	)		(2,476	)
Operating lease right-of-use assets and liabilities		(715	)		4,539
Deferred revenue		(24,174	)		(33,742	)
Other		97			(120	)
Net cash used in operating activities		(111,518	)		(95,458	)
Investing activities
Purchases of property and equipment		(8,375	)		(37,882	)
Purchases of marketable securities		(85,191	)		(96,352	)
Proceeds from maturities of marketable securities		136,000			269,500
Net cash provided by investing activities		42,434			135,266
Financing activities
Proceeds from exercise of stock options		6,739			20,513
Proceeds from initial capital contributions for Digital Biotechnologies, Inc.		—			429
Net cash provided by financing activities		6,739			20,942
Net (decrease) increase in cash, cash equivalents and restricted cash		(62,345	)		60,750
Cash, cash equivalents and restricted cash at beginning of year		141,203			125,574
Cash, cash equivalents and restricted cash at end of period	$	78,858		$	186,324
Noncash investing activities
Purchases of equipment included in accounts payable and accrued liabilities	$	3,286		$	7,067

The accompanying notes are an integral part of these condensed consolidated financial statements.

9

Adaptive Biotechnologies Corporation

Notes to Unaudited Condensed Consolidated Financial Statements

(unaudited)

1. Organization and Description of Business

Adaptive Biotechnologies Corporation (“we,” “us” or “our”) is a commercial-stage company advancing the field of immune medicine by harnessing the inherent biology of the adaptive immune system to transform the diagnosis and treatment of disease. We believe the adaptive immune system is nature’s most finely tuned diagnostic and therapeutic for most diseases, but the inability to decode it has prevented the medical community from fully leveraging its capabilities. Our immune medicine platform applies our proprietary technologies to read the diverse genetic code of a patient’s immune system and aims to understand precisely how the immune system detects and treats disease in that patient. We capture these insights in our dynamic clinical immunomics database, which is underpinned by computational biology and machine learning, and use them to develop and commercialize clinical products and services that we are tailoring to each individual patient. We have commercial products and services and a robust pipeline of clinical products and services that we are designing to diagnose, monitor and enable the treatment of diseases, such as cancer, autoimmune disorders and infectious diseases.

We were incorporated in the State of Washington on September 8, 2009 under the name Adaptive TCR Corporation. On December 21, 2011, we changed our name to Adaptive Biotechnologies Corporation. We are headquartered in Seattle, Washington.

2. Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The unaudited condensed consolidated financial statements include the accounts of Adaptive Biotechnologies Corporation, our wholly-owned subsidiary and Digital Biotechnologies, Inc., a corporate subsidiary we have 70% ownership interest in. The remaining interest in Digital Biotechnologies, Inc., held by certain of our related parties and their related family trusts, are shown in the unaudited condensed consolidated financial statements as noncontrolling interest. All intercompany transactions and balances between Adaptive Biotechnologies Corporation, our wholly-owed subsidiary and Digital Biotechnologies, Inc. have been eliminated upon consolidation.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the periods presented. We base our estimates on historical experience and other relevant assumptions that we believe to be reasonable under the circumstances. Estimates are used in several areas including, but not limited to, estimates of progress to date for certain performance obligations and the transaction price for certain contracts with customers, share-based compensation, including the fair value of stock, the provision for income taxes, including related reserves, and goodwill, among others. These estimates generally involve complex issues and require judgments, involve the analysis of historical results and prediction of future trends, can require extended periods of time to resolve and are subject to change from period to period. Actual results may differ materially from management’s estimates.

Unaudited Interim Condensed Consolidated Financial Statements

In our opinion, the accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information. These unaudited condensed consolidated financial statements include all adjustments necessary to fairly state our financial position and the results of our operations and cash flows for interim periods in accordance with GAAP. All such adjustments were of a normal, recurring nature. Interim-period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period.

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 15, 2022.

Reclassification

We previously disclosed revenue bifurcated into sequencing and development financial statement captions. Beginning with the reporting period ended March 31, 2022, we changed how we classify revenue and now present total revenue on the unaudited condensed consolidated statements of operations. See Note 3, Revenue for additional disaggregation of revenue under our Immune Medicine and MRD market opportunities.

10

Adaptive Biotechnologies Corporation

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

(unaudited)

Restricted Cash

We had a restricted cash balance of $2.4 million and $2.1 million as of June 30, 2022 and December 31, 2021, respectively. Our restricted cash primarily relates to certain balances we are required to maintain under lease arrangements for some of our property and facility leases.

Concentrations of Risk

We are subject to a concentration of risk from a limited number of suppliers, or in certain cases single suppliers, for some of our laboratory instruments and materials. This risk is managed by targeting a quantity of surplus stock.

Cash, cash equivalents and marketable securities are financial instruments that potentially subject us to concentrations of credit risk. We invest in money market funds, United States (“U.S.”) government debt securities, U.S. government agency securities, commercial paper and corporate bonds with high-quality accredited financial institutions.

Significant customers are those that represent more than 10% of our total revenue or accounts receivable, net balances for the periods and as of each condensed consolidated balance sheet date presented, respectively.

For each significant customer, revenue as a percentage of total revenue for the periods presented and accounts receivable, net as a percentage of total accounts receivable, net as of the dates presented were as follows:

	Revenue				Accounts Receivable, Net
	Three Months Ended June 30,		Six Months Ended June 30,		June 30,	December 31,
	2022	2021	2022	2021	2022	2021
Customer B	12.3%	*%	14.9%	*%	23.6%	11.3%
Genentech and Roche Group	34.8	46.0	34.3	44.1	*	*
* less than 10%

Revenue Recognition

We recognize revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606 (“ASC 606”), Revenue from Contracts with Customers. Under ASC 606, for all revenue-generating contracts, we perform the following steps to determine the amount of revenue to be recognized: (1) identify the contract or contracts; (2) determine whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (3) measure the transaction price, including the constraint on variable consideration; (4) allocate the transaction price to the performance obligations based on estimated selling prices; and (5) recognize revenue when (or as) we satisfy each performance obligation.

We derive revenue by providing diagnostic and research services in our Immune Medicine and MRD market opportunities. Our Immune Medicine revenue consists of revenue generated from (1) providing sample testing services for our commercial research product, immunoSEQ, to biopharmaceutical customers and academic institutions; (2) providing our T-Detect COVID tests to clinical customers; and (3) our collaboration agreements with Genentech and other biopharmaceutical customers in areas of drug and target discovery. 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.

For research customers who utilize either immunoSEQ or our MRD services, contracts typically include an amount billed in advance of services (“upfront”) and subsequent billings as sample results are delivered to the customer. Upfront amounts received are recorded as deferred revenue, which we recognize as revenue upon satisfaction of performance obligations. We have identified two typical performance obligations under the terms of our research service contracts: (1) the delivery of our immunoSEQ or MRD data for customer provided samples; and (2) related data analysis. We recognize revenue for both identified performance obligations as sample results are delivered to the customer. In periods where our sample estimates are reduced or a customer project is cancelled and, in either case, we have remaining related deferred revenue, we recognize revenue using a cumulative catch-up approach based on the proportion of samples delivered to date relative to the remaining samples expected to be delivered.

For agreements where we provide our clonoSEQ report to ordering physicians, we have identified one performance obligation: the delivery of a clonoSEQ report. We bill and receive payments for these transactions from medical institutions and commercial and government third-party payors. As payment from the respective payors may vary based on the various reimbursement rates and patient responsibilities, we consider the transaction price to be variable and record an estimate of the transaction price, subject to the constraint for variable consideration, as revenue at the time of delivery. The estimate of transaction price is based on historical and expected reimbursement rates with the various payors, which are monitored in subsequent periods and adjusted as necessary based on actual collection experience.

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Adaptive Biotechnologies Corporation

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

(unaudited)

Regarding our clonoSEQ coverage under Medicare, we bill an episode of treatment when we deliver the first eligible test report. This billing contemplates all necessary tests required during a patient’s treatment cycle, which is currently estimated at approximately four tests per patient, including the initial sequence identification test. Revenue recognition commences at the time the initial billable test report is delivered and is based upon cumulative tests delivered to date. We estimate the number of tests we expect to deliver over a patient’s treatment cycle based on historical testing frequencies for patients by indication. These estimates are subject to change as we develop more information about utilization over time. Any unrecognized revenue from the initial billable test is recorded as deferred revenue and is recognized either as we deliver our estimate of the remaining tests in a patient’s treatment cycle or when the likelihood becomes remote that a patient will receive additional testing.

The contract transaction price for agreements we enter into with biopharmaceutical customers to further develop and commercialize their therapeutics may consist of a combination of non-refundable upfront fees, separately priced MRD testing fees and milestone fees earned upon our customers’ achievement of certain regulatory approvals. Depending on the contract, these agreements include single or multiple performance obligations. Such performance obligations include providing services to support our customers’ therapeutic development efforts, including regulatory support for our technology intended to be utilized as part of our customers’ registrational trials, developing analytical plans for our data, participating on joint research committees and assisting in completing a regulatory submission and providing MRD testing services related to customer-provided samples for their regulatory submissions. Generally, the support services, excluding MRD testing services, are not distinct within the context of the contract and thus are accounted for as a single performance obligation. The transaction price allocated to the respective performance obligations is estimated using an adjusted market assessment approach for the regulatory support services and a standalone selling price for the estimated MRD testing services. At contract inception, we fully constrain any consideration related to regulatory milestones, as the achievement of such milestones is subject to third-party regulatory approval and the customers’ own submission decision-making. When MRD sample testing services are separately priced customer options, we assess if a material right exists and, if not, the customer option to purchase additional MRD sample testing services is not considered part of the contract. We recognize revenue related to MRD testing services over time using an output method based on the proportion of sample results delivered relative to the total amount of sample results expected to be delivered, when expected to be a faithful depiction of progress. We use the same method to recognize the regulatory support services. When an output method based on the proportion of sample results delivered is not expected to be a faithful depiction of progress, we utilize an input method using a cost-based model based on estimates of effort completed. Selecting the measure of progress and estimating progress to date requires significant judgment. Except for any non-refundable upfront fees, the other forms of compensation represent variable consideration. Variable consideration related to regulatory milestones is estimated using the most likely amount method, where variable consideration is constrained until it is probable that a significant reversal of cumulative revenue recognized will not occur. Milestone payments for regulatory approvals, which are not within our customers’ control, are not considered probable of being achieved until those approvals are received. Determining whether regulatory milestone payments are probable is an area that requires significant judgment. In making this assessment, we evaluate scientific, clinical, regulatory and other risks, as well as the level of effort and investment required to achieve the respective milestone.

Net Loss Per Share Attributable to Adaptive Biotechnologies Corporation Common Shareholders

We calculate basic net loss per share attributable to our common shareholders by dividing net loss attributable to us by our weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share attributable to our common shareholders is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, outstanding common stock warrants, outstanding stock options, nonvested restricted stock units and the maximum nonvested market-based restricted stock units eligible to be earned are considered common stock equivalents but have been excluded from the calculation of diluted net loss per share attributable to our common shareholders, as their effect is anti-dilutive.

12

Adaptive Biotechnologies Corporation

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

(unaudited)

3. Revenue

We disaggregate our revenue from contracts with customers by market opportunity and type of arrangement, as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following table presents our disaggregated revenue for the periods presented (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Immune Medicine revenue
Service revenue	$	7,296	$	5,405	$	14,409	$	9,453
Collaboration revenue		15,082		17,634		28,785		33,691
Total Immune Medicine revenue		22,378		23,039		43,194		43,144
MRD revenue
Service revenue		20,282		13,966		35,086		25,303
Regulatory milestone revenue		1,000		1,500		4,000		8,500
Total MRD revenue		21,282		15,466		39,086		33,803
Total revenue	$	43,660	$	38,505	$	82,280	$	76,947

During the three months ended June 30, 2022, we recognized $1.4 million in revenue related to changes in estimates of total samples to be provided under certain of our agreements and Medicare reimbursements resulting from our determination that the likelihood of additional testing for specific patients was remote, all of which was recognized as MRD service revenue. During the three months ended June 30, 2021, we recognized $3.1 million in revenue related to changes in estimates of total samples to be provided under certain of our agreements, Medicare reimbursements resulting from our determination that the likelihood of additional testing for specific patients was remote and cancelled customer contracts, all of which was recognized as MRD service revenue.

During the six months ended June 30, 2022, we recognized $2.8 million in revenue related to Medicare reimbursements resulting from our determination that the likelihood of additional testing for specific patients was remote, changes in estimates of total samples to be provided under certain of our agreements and cancelled customer contracts, $0.2 million of which was recognized as Immune Medicine service revenue and $2.6 million of which was recognized as MRD service revenue. During the six months ended June 30, 2021, we recognized $4.1 million in revenue related to changes in estimates of total samples to be provided under certain of our agreements, Medicare reimbursements resulting from our determination that the likelihood of additional testing for specific patients was remote and cancelled customer contracts, $0.1 million of which was recognized as Immune Medicine service revenue and $4.0 million of which was recognized as MRD service revenue.

As of June 30, 2022, we could receive up to an additional $355.5 million in milestone payments in future periods if certain regulatory approvals are obtained by our customers’ therapeutics in connection with MRD data generated from our MRD product.

Genentech Collaboration Agreement

In December 2018, we entered into a worldwide collaboration and license agreement with Genentech (the “Genentech Agreement”) to leverage our capability to develop cellular therapies in oncology. Subsequent to receipt of regulatory approval in January 2019, we received a non-refundable, upfront payment of $300.0 million in February 2019 and may be eligible to receive more than $1.8 billion over time, including payments of up to $75.0 million upon the achievement of specified regulatory milestones, up to $300.0 million upon the achievement of specified development milestones and up to $1,430.0 million upon the achievement of specified commercial milestones. In addition, we are separately able to receive tiered royalties at a rate ranging from the mid-single digits to the mid-teens on aggregate worldwide net sales of products arising from the strategic collaboration, subject to certain reductions, with aggregate minimum floors. Under the agreement, we are pursuing two product development pathways for novel T cell immunotherapies in which Genentech intends to use T cell receptors (“TCRs”) screened by our immune medicine platform to engineer and manufacture cellular medicines:

• Shared Products. The shared products will use “off-the-shelf” TCRs identified against cancer antigens shared among patients (“Shared Products”).

• Personalized Product. The personalized product will use patient-specific TCRs identified by real-time screening of TCRs against cancer antigens in each patient (“Personalized Product”).

13

Adaptive Biotechnologies Corporation

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

(unaudited)

Under the terms of the agreement, we granted Genentech exclusive worldwide licenses to develop and commercialize TCR-based cellular therapies in the field of oncology, including licenses to existing shared antigen data packages. Additionally, Genentech has the right to determine which product candidates to further develop for commercialization purposes. We determined that this arrangement meets the criteria set forth in ASC Topic 808, Collaborative Arrangements (“ASC 808”), because both parties are active participants in the activity and are exposed to significant risks and rewards depending on the activity’s commercial failure or success. Because ASC 808 does not provide guidance on how to account for the activities under a collaborative arrangement, we applied the guidance in ASC 606 to account for the activities related to the Genentech Agreement.

In applying ASC 606, we identified the following performance obligations at the inception of the agreement:

1. License to utilize on an exclusive basis all TCR-specific platform intellectual property to develop and commercialize any licensed products in the field of oncology.

2. License to utilize all data and information within each shared antigen data package and any other know-how disclosed by us to Genentech in oncology.

3. License to utilize all private antigen TCR product data in connection with research and development activities in the field of use.

4. License to existing shared antigen data packages.

5. Research and development services for Shared Products development, including expansion of shared antigen data packages.

6. Research and development services for private product development.

7. Obligations to participate on various joint research, development and project committees.

We determined that none of the licenses, research and development services or obligations to participate on various committees were distinct within the context of the contract, given such rights and activities were highly interrelated and there was substantial additional research and development to further develop the licenses. We considered factors such as the stage of development of the respective existing antigen data packages, the subsequent development that would be required to both identify and submit a potential target for investigational new drug acceptance under both product pathways and the variability in research and development pathways given Genentech’s control of product commercialization. Specifically, under the agreement, Genentech is not required to pursue development or commercialization activities pertaining to both product pathways and may choose to proceed with one or the other. Accordingly, we determined that all of the identified performance obligations were attributable to one general performance obligation, which is to further the development of our TCR-specific platform, including data packages, and continue to make our TCR identification process available to Genentech to pursue either product pathway.

Separately, we have a responsibility to Genentech to enter into a supply and manufacturing agreement for patient-specific TCRs as it pertains to any Personalized Product therapeutic. We determined this was an option right of Genentech should they pursue commercialization of a Personalized Product therapy. Because of the uncertainty resulting from the early stage of development, the novel approach of our collaboration with Genentech and our rights to future commercial milestones and royalty payments, we determined that this option right was not a material right that should be accounted for at inception. As such, we will account for the supply and manufacturing agreement when entered into between the parties.

We determined the initial transaction price shall be made up of only the $300.0 million upfront, non-refundable payment, as all potential regulatory and development milestone payments were probable of significant revenue reversal given their achievement was highly dependent on factors outside our control. As a result, these payments were fully constrained and were not included in the transaction price as of June 30, 2022. We excluded the commercial milestones and potential royalties from the transaction price, as those items relate predominantly to the license rights granted to Genentech and will be assessed when and if such events occur.

As there are potential substantive developments necessary, which Genentech may be able to direct, we determined that we would apply a proportional performance model to recognize revenue for our performance obligation. We measure proportional performance using an input method based on costs incurred relative to the total estimated costs of research and development efforts to pursue both the Shared Products and Personalized Product pathways. When any of the potential regulatory and development milestones are no longer fully constrained and are included in the transaction price, such amounts will be recognized using the cumulative catch-up method based on proportional performance at such time. We currently expect to recognize the revenue over a period of approximately seven to eight years from the effective date. This estimate of the research and development period considers pursuit options of development activities supporting both the Shared Products and the Personalized Product, but may be reduced or increased based on the various activities as directed by the joint committees, decisions made by Genentech, regulatory feedback or other factors not currently known.

14

Adaptive Biotechnologies Corporation

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

(unaudited)

We recognized $13.8 million and $17.2 million in Immune Medicine collaboration revenue during the three months ended June 30, 2022 and 2021, respectively, and $26.0 million and $32.8 million in Immune Medicine collaboration revenue during the six months ended June 30, 2022 and 2021, respectively, related to the Genentech Agreement. Costs related to the Genentech Agreement are included in research and development expenses.

4. Deferred Revenue

Deferred revenue from our Genentech Agreement represents $53.9 million and $70.1 million of the current and non-current deferred revenue balances, respectively, as of June 30, 2022 and $56.1 million and $94.0 million of the current and non-current deferred revenue balances, respectively, as of December 31, 2021. We expect our current deferred revenue to be recognized as revenue within 12 months. We expect the majority of our non-current deferred revenue to be recognized as revenue over a period of approximately four to five years from June 30, 2022. This period of time represents an estimate of the research and development period to develop cellular therapies in oncology, which may be reduced or increased based on the various research and development activities.

Changes in deferred revenue during the six months ended June 30, 2022 were as follows (in thousands):

Deferred revenue balance at December 31, 2021	$	179,210
Additions to deferred revenue during the period		19,379
Revenue recognized during the period		(43,553	)
Deferred revenue balance at June 30, 2022	$	155,036

As of June 30, 2022, $34.5 million was recognized as revenue that was included in the deferred revenue balance at December 31, 2021.

5. Fair Value Measurements

The following tables set forth the fair value of financial assets as of June 30, 2022 and December 31, 2021 that were measured at fair value on a recurring basis (in thousands):

	June 30, 2022
	Level 1		Level 2		Level 3		Total
Financial assets
Money market funds	$	70,358	$	—	$	—	$	70,358
U.S. government debt securities		—		334,857		—		334,857
Corporate bonds		—		39,397		—		39,397
Total financial assets	$	70,358	$	374,254	$	—	$	444,612

	December 31, 2021
	Level 1		Level 2		Level 3		Total
Financial assets
Money market funds	$	131,946	$	—	$	—	$	131,946
U.S. government debt securities		—		391,145		—		391,145
Corporate bonds		—		39,996		—		39,996
Total financial assets	$	131,946	$	431,141	$	—	$	563,087

Level 1 securities include highly liquid money market funds, for which we measure the fair value based on quoted prices in active markets for identical assets or liabilities. Level 2 securities consist of U.S. government debt securities and corporate bonds, and are valued based on recent trades of securities in inactive markets or on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data.

15

Adaptive Biotechnologies Corporation

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

(unaudited)

6. Investments

Available-for-sale investments consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands):

	June 30, 2022
	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
Short-term marketable securities
U.S. government debt securities	$	271,337	$	—	$	(3,408	)	$	267,929
Corporate bonds		39,662		—		(265	)		39,397
Total short-term marketable securities	$	310,999	$	—	$	(3,673	)	$	307,326
Long-term marketable securities
U.S. government debt securities	$	69,055	$	—	$	(2,127	)	$	66,928
Total long-term marketable securities	$	69,055	$	—	$	(2,127	)	$	66,928

	December 31, 2021
	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
Short-term marketable securities
U.S. government debt securities	$	186,752	$	4	$	(109	)	$	186,647
Corporate bonds		27,363		—		(14	)		27,349
Total short-term marketable securities	$	214,115	$	4	$	(123	)	$	213,996
Long-term marketable securities
U.S. government debt securities	$	205,472	$	—	$	(974	)	$	204,498
Corporate bonds		12,691		—		(44	)		12,647
Total long-term marketable securities	$	218,163	$	—	$	(1,018	)	$	217,145

All the U.S. government debt securities and corporate bonds designated as short-term marketable securities have an effective maturity date that is equal to or less than one year from the respective condensed consolidated balance sheet date. Those that are designated as long-term marketable securities have an effective maturity date that is more than one year from the respective condensed consolidated balance sheet date.

Accrued interest receivable is excluded from the amortized cost and estimated fair value of our marketable securities. Accrued interest receivable of $0.8 million and $1.4 million is presented separately within the prepaid expenses and other current assets balance on the unaudited condensed consolidated balance sheet as of June 30, 2022 and on the condensed consolidated balance sheet as of December 31, 2021, respectively.

The following table presents the gross unrealized holding losses and fair value for investments in an unrealized loss position, and the length of time individual securities have been in a continuous loss position, as of June 30, 2022 (in thousands):

	Less Than 12 Months					12 Months Or Greater
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. government debt securities	$	334,857	$	(5,535	)	$	—	$	—
Corporate bonds		39,397		(265	)		—		—
Total available-for-sale securities	$	374,254	$	(5,800	)	$	—	$	—

We periodically review our available-for-sale securities to assess for credit impairment. Some of the factors considered in assessing impairment include the extent to which the fair value is less than the amortized cost basis, adverse conditions related to the security, an industry or geographic area, changes to security ratings or sector credit ratings and other relevant market data.

As of June 30, 2022, we did not intend, nor were we more likely than not to be required, to sell our available-for-sale investments before the recovery of their amortized cost basis, which may be maturity. Based on our assessment, we concluded all impairment as of June 30, 2022 to be due to factors other than credit loss, such as changes in interest rates. A credit allowance was not recognized and the impairment of our available-for-sale securities was recorded in other comprehensive loss.

16

Adaptive Biotechnologies Corporation

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

(unaudited)

7. Goodwill and Intangible Assets

There have been no changes in the carrying amount of goodwill since its recognition in 2015.

Intangible assets subject to amortization as of June 30, 2022 and December 31, 2021 consisted of the following (in thousands):

	June 30, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Acquired developed technology	$	20,000	$	(12,464	)	$	7,536
Purchased intellectual property		325		(177	)		148
Balance at June 30, 2022	$	20,325	$	(12,641	)	$	7,684

	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Acquired developed technology	$	20,000	$	(11,638	)	$	8,362
Purchased intellectual property		325		(161	)		164
Balance at December 31, 2021	$	20,325	$	(11,799	)	$	8,526

The developed technology was acquired in connection with our acquisition of Sequenta, Inc. in 2015. The remaining balance of the acquired developed technology and the purchased intellectual property is expected to be amortized over the next 4.5 years.

As of June 30, 2022, expected future amortization expense for intangible assets was as follows (in thousands):

2022 (excluding the six months ended June 30, 2022)	$	857
2023		1,699
2024		1,703
2025		1,699
2026		1,699
Thereafter		27
Total future amortization expense	$	7,684

8. Leases

We have operating lease agreements for laboratory, office and warehouse facilities in Seattle, Washington, Bothell, Washington, South San Francisco, California and New York City, New York. As of June 30, 2022, we were not party to any finance leases.

The following table reconciles our undiscounted operating lease cash flows to our operating lease liabilities, less current portion balance as of June 30, 2022 (in thousands):

2022 (excluding the six months ended June 30, 2022)	$	7,053
2023		13,964
2024		13,692
2025		14,098
2026		12,330
Thereafter		81,188
Total undiscounted lease payments		142,325
Less:
Imputed interest rate		(29,789	)
Tenant improvement receivables		(1,194	)
Total operating lease liabilities		111,342
Less: Current portion		(8,615	)
Operating lease liabilities, less current portion	$	102,727

17

Adaptive Biotechnologies Corporation

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

(unaudited)

During the six months ended June 30, 2022, cash paid for amounts included in the measurement of lease liabilities was $3.3 million, net of $4.0 million of cash received for tenant improvement allowances. Cash paid for amounts included in the measurement of lease liabilities was $3.5 million and cash received for tenant improvement allowances was $5.4 million during the six months ended June 30, 2021.

We previously entered into a $2.1 million letter of credit with one of our financial institutions in connection with one of our leases.

9. Commitments and Contingencies

Legal Proceedings

We are subject to claims and assessments from time to time in the ordinary course of business. We will accrue a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. We were not party to any material legal proceedings as of June 30, 2022.

Indemnification Agreements

In the ordinary course of business, we may provide indemnification of varying scope and terms to vendors, lessors, customers and other parties with respect to certain matters including, but not limited to, losses arising out of breach of our agreements with them or from intellectual property infringement claims made by third parties. In addition, we have entered into indemnification agreements with members of our board of directors and certain of our executive officers that will require us to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments that we could be required to make under these indemnification agreements is, in many cases, unlimited. We have not incurred any material costs as a result of such indemnifications and are not currently aware of any indemnification claims.

10. Shareholders’ Equity

Common Stock

Our common stock has no preferences or privileges and is not redeemable. Holders of our common stock are entitled to one vote for each share of common stock held. The holders of record of outstanding shares of common stock shall be entitled to receive, when, as and if declared, out of funds legally available, such cash and other dividends as may be declared from time to time.

As of June 30, 2022, we had reserved shares of common stock for the following:

Shares issuable upon the exercise of outstanding stock options granted	14,338,119
Shares issuable upon the vesting of outstanding restricted stock units granted and the maximum outstanding market-based restricted stock units eligible to be earned	6,044,821
Shares available for future grant under the 2019 Equity Incentive Plan	14,516,155
Shares available for future grant under the Employee Stock Purchase Plan	2,804,298
Total shares of common stock reserved for future issuance	37,703,393

Our 2019 Equity Incentive Plan (“2019 Plan”) provides for annual increases in the number of shares that may be issued under the 2019 Plan on January 1, 2020 and on each subsequent January 1, thereafter, by a number of shares equal to the lesser of (a) 5% of the number of shares of common stock issued and outstanding on the immediately preceding December 31, or (b) an amount determined by our board of directors.

Furthermore, our Employee Stock Purchase Plan (“ESPP”) provides for annual increases in the number of shares available for issuance under our ESPP on January 1, 2020 and on each January 1, thereafter, by a number of shares equal to the smallest of (a) 1% of the number of shares of common stock issued and outstanding on the immediately preceding December 31, or (b) an amount determined by our board of directors.

Our board of directors determined not to increase the 2019 Plan and ESPP reserves in 2022.

18

Adaptive Biotechnologies Corporation

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

(unaudited)

11. Equity Incentive Plans

2009 Equity Incentive Plan

We adopted an equity incentive plan in 2009 (“2009 Plan”) that provided for the issuance of incentive and nonqualified common stock options and other share-based awards for employees, directors and consultants. Under the 2009 Plan, the exercise price for incentive and nonqualified stock options were not to be less than the fair market value of our common stock at the date of grant. Stock options granted under this plan expire no later than ten years from the grant date and vesting was established at the time of grant. Pursuant to the terms of the 2019 Plan, any shares subject to outstanding stock options originally granted under the 2009 Plan that terminate, expire or lapse for any reason without the delivery of shares to the holder thereof shall become available for issuance pursuant to awards granted under the 2019 Plan. While no shares are available for future issuance under the 2009 Plan, it continues to govern outstanding equity awards granted thereunder.

2019 Equity Incentive Plan

The 2019 Plan became effective immediately prior to the closing of our initial public offering in July 2019. The 2019 Plan provides for the issuance of awards in the form of stock options and other share-based awards for employees, directors and consultants. Under the 2019 Plan, the stock option exercise price per share shall not be less than the fair market value of a share of stock on the effective date of grant, as defined by the 2019 Plan, unless explicitly qualified under the provisions of Section 409A or Section 424(a) of the Internal Revenue Code of 1986. Additionally, unless otherwise specified, stock options granted under this plan expire no later than ten years from the grant date and vesting is established at the time of grant. Except for certain stock option and restricted stock unit grants made to non-employee directors, stock options and restricted stock units granted under the 2019 Plan generally vest over a four-year period, subject to continuous service through each applicable vesting date. As of June 30, 2022, we had 29,279,180 shares of common stock authorized for issuance under the 2019 Plan.

Changes in shares available for grant during the six months ended June 30, 2022 were as follows:

	Shares Available for Grant
Shares available for grant at December 31, 2021		22,299,923
Stock options and restricted stock units granted and the maximum market-based restricted stock units granted eligible to be earned		(10,460,587	)
Stock options and restricted stock units forfeited, cancelled or expired		2,676,819
Shares available for grant at June 30, 2022		14,516,155

Stock Options

Stock option activity under the 2009 Plan and 2019 Plan during the six months ended June 30, 2022 was as follows:

	Shares Subject to Outstanding Stock Options			Weighted-Average Exercise Price per Share		Aggregate Intrinsic Value (in thousands)
Stock options outstanding at December 31, 2021		12,778,984		$	19.72
Stock options granted		4,397,538			11.66
Stock options forfeited or cancelled		(1,240,578	)		29.13
Stock options expired		(367,736	)		32.41
Stock options exercised		(1,230,089	)		5.46
Stock options outstanding at June 30, 2022		14,338,119		$	17.33	$	9,550
Stock options vested and exercisable at June 30, 2022		6,985,837		$	13.90	$	8,807

The weighted-average remaining contractual life for stock options outstanding as of June 30, 2022 was 7.4 years. The weighted-average remaining contractual life for vested and exercisable stock options as of June 30, 2022 was 5.7 years.

Of the $20.5 million proceeds from the exercise of stock options included on the unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2021, $0.3 million related to options exercised prior to but settled during the six months ended June 30, 2021. As of June 30, 2021, there was $0.2 million in unsettled cash proceeds related to options exercised during the six months ended June 30, 2021.

19

Adaptive Biotechnologies Corporation

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

(unaudited)

Restricted Stock Units

Restricted stock unit activity under the 2019 Plan during the six months ended June 30, 2022 was as follows:

	Restricted Stock Units Outstanding			Weighted-Average Grant Date Fair Value per Share
Nonvested restricted stock units outstanding at December 31, 2021		1,211,191		$	37.41
Restricted stock units granted		5,568,815			11.66
Restricted stock units forfeited or cancelled		(1,068,505	)		16.80
Restricted stock units vested		(160,914	)		43.19
Nonvested restricted stock units outstanding at June 30, 2022		5,550,587		$	15.38

Market-Based Restricted Stock Units

In addition to the restricted stock units described above, our board of directors approved an award of market-based restricted stock units to our chief executive officer in March 2022. The shares of common stock that may be earned under the award, ranging from zero shares to 494,234 shares, are calculated based upon our total shareholder return during a three-year performance period as measured against that of the group of companies comprising the S&P Biotechnology Select Industry Index as of the grant date, subject to certain adjustments to such index group. Except as expressly provided in the terms of the award agreement, vesting is subject to our chief executive officer's continuous service through the end of the three-year performance period.

Grant Date Fair Value of Stock Options, Restricted Stock Units and Market-Based Restricted Stock Units Granted

The estimated grant date fair values of stock options granted during the six months ended June 30, 2022 and 2021 were estimated using the Black-Scholes option-pricing model with the following assumptions:

	Six Months Ended June 30,
	2022		2021
Fair value of common stock	$7.30 - $14.95		$34.41 - $66.50
Expected term (in years)	5.27 - 6.08		5.27 - 6.08
Risk-free interest rate	1.7% - 3.0%		0.5% - 1.1%
Expected volatility	68.2% - 71.0%		67.1% - 68.7%
Expected dividend yield		—		—

The determination of the grant date fair value of stock options granted using a Black-Scholes option-pricing model is affected by the fair value of our common stock, as well as assumptions regarding a number of variables that are complex, subjective and generally require significant judgment to determine. The valuation assumptions were determined as follows:

Fair value of common stock—The fair value of each share of common stock is based on the closing price of our common stock on the date of grant, or other relevant determination date, as reported on The Nasdaq Global Select Market.

Expected term—The expected term of stock options granted to employees and non-employee directors is determined using the “simplified” method, as illustrated in ASC Topic 718, Compensation—Stock Compensation, as we do not have sufficient exercise history to determine a better estimate of expected term. Under this approach, the expected term is based on the midpoint between the vesting date and the end of the contractual term of the stock option.

Risk-free interest rate—We utilize a risk-free interest rate in the option valuation model based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected terms of the stock options.

Expected volatility—As we do not have sufficient trading history for our common stock, expected volatility is based on the historical volatility of our publicly traded industry peers utilizing a period of time consistent with our estimate of expected term.

Expected dividend yield—We do not anticipate paying any cash dividends in the foreseeable future and, therefore, use an expected dividend yield of zero in the option valuation model.

The weighted-average grant date fair value per share of stock options granted during the six months ended June 30, 2022 and 2021 was $7.36 and $26.52, respectively.

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Adaptive Biotechnologies Corporation

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

(unaudited)

The grant date fair value of restricted stock units granted is based on the closing price of our common stock on the date of grant, or other relevant determination date, as reported on The Nasdaq Global Select Market. The weighted-average grant date fair value per share of restricted stock units granted during the six months ended June 30, 2022 and 2021 was $11.66 and $42.93, respectively.

The grant date fair value of the market-based restricted stock units granted in March 2022 is $18.89 and was determined using a Monte Carlo valuation model, which uses assumptions such as volatility, risk-free interest rate and dividend estimated for the performance period. The related share-based compensation expense of $4.7 million is recognized on a straight-line basis over the three-year performance period, which is also the requisite service period. Attainment of the market condition and the number of shares earned and vested does not impact the related share-based compensation expense recognized. Share-based compensation expense will be reversed only if our chief executive officer does not provide continuous service through the performance period for reasons other than those expressly provided in the terms of the award.

The compensation cost related to stock options, restricted stock units and market-based restricted stock units for the three and six months ended June 30, 2022 and 2021, respectively, are included on the unaudited condensed consolidated statements of operations as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Cost of revenue	$	954	$	408	$	1,749	$	736
Research and development		4,643		3,791		8,988		6,674
Sales and marketing		3,584		3,302		6,813		5,797
General and administrative		4,999		3,748		9,491		6,526
Total share-based compensation expense	$	14,180	$	11,249	$	27,041	$	19,733

As of June 30, 2022, unrecognized share-based compensation expense and the remaining weighted-average recognition period were as follows:

	Unrecognized Share-Based Compensation Expense (in thousands)		Remaining Weighted-Average Recognition Period (in years)
Nonvested stock options	$	88,549		2.85
Nonvested restricted stock units		75,935		3.42
Nonvested market-based restricted stock units		4,165		2.68

12. Restructuring

In March 2022, we began implementing a restructuring plan to reduce operating costs and drive future growth aligned with the strategic reorganization of our business around our MRD and Immune Medicine market opportunities. Under this restructuring plan, we reduced our workforce by approximately 100 employees.

We incurred aggregate restructuring costs of $2.0 million, all of which was recognized in the six months ended June 30, 2022. These costs primarily related to one-time termination benefits and ongoing benefit arrangements, both of which included severance payments and extended benefits coverage support and were contingent upon the impacted employees’ execution and non-revocation of separation agreements. Our aggregate restructuring costs also included certain contract termination costs.

The activities related to our reduction in workforce were primarily completed in March 2022 and the $2.0 million aggregate restructuring costs were paid as of June 30, 2022.

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Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

(unaudited)

13. Net Loss Per Share Attributable to Adaptive Biotechnologies Corporation Common Shareholders

The following table sets forth the computation of the basic and diluted net loss per share attributable to our common shareholders for the three and six months ended June 30, 2022 and 2021, respectively (in thousands, except share and per share amounts):

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Net loss attributable to Adaptive Biotechnologies Corporation	$	(52,046	)	$	(49,301	)	$	(114,782	)	$	(89,943	)
Weighted-average shares used in computing net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted		142,363,589			140,359,317			142,032,261			139,667,380
Net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted	$	(0.37	)	$	(0.35	)	$	(0.81	)	$	(0.64	)

Given the loss position for all periods presented, basic net loss per share attributable to our common shareholders is the same as diluted net loss per share attributable to our common shareholders, as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. The following weighted-average common stock equivalents were excluded from the calculation of diluted net loss per share attributable to our common shareholders for the three and six months ended June 30, 2022 and 2021, respectively, as they had an anti-dilutive effect:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Stock options outstanding		14,693,276		13,204,775		13,978,339		13,360,000
Nonvested restricted stock units		5,364,447		676,411		3,983,640		458,707
Maximum nonvested market-based restricted stock units eligible to be earned		494,234		—		324,938		—
Common stock warrant outstanding		—		—		—		17,282
Total		20,551,957		13,881,186		18,286,917		13,835,989

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Adaptive Biotechnologies Corporation

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations together with the unaudited condensed consolidated financial statements and related notes and the other financial information appearing elsewhere in this report, as well as the other financial information we file with the SEC from time to time. Some of the information contained in this discussion and analysis or set forth elsewhere in this report, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks and uncertainties relating to our future plans, objectives, expectations, intentions and financial performance and the assumptions that underlie these statements.

As a result of many factors, including those factors set forth in the “Risk Factors” section of this report, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

Overview

We are advancing the field of immune medicine by harnessing the inherent biology of the adaptive immune system to transform the diagnosis and treatment of disease. We believe the adaptive immune system is nature’s most finely tuned diagnostic and therapeutic for most diseases, but the inability to decode it has prevented the medical community from fully leveraging its capabilities. Our immune medicine platform applies our proprietary technologies to read the diverse genetic code of a patient’s immune system and aims to understand precisely how the immune system detects and treats disease in that patient. We capture these insights in our dynamic clinical immunomics database, which is underpinned by computational biology and machine learning, and use them to develop and commercialize clinical products and services that we are tailoring to each individual patient. We have commercial products and services and a robust pipeline of clinical products and services that we are designing to diagnose, monitor and enable the treatment of diseases, such as cancer, autoimmune disorders and infectious diseases.

Our immune medicine platform is the foundation for our expanding suite of products and services. The cornerstone of our platform and core immunosequencing product, immunoSEQ, serves as our underlying research and development engine and generates revenue from biopharmaceutical and academic customers.

Leveraging our collaboration with Microsoft, we are creating the TCR-Antigen Map. We are using this map to develop research solutions by disease, called immunoSEQ T-MAP, and a diagnostic product for many diseases from a single blood test, called T-Detect.

Regarding our specific products and pipeline, T-Detect COVID, for which we have received Emergency Use Authorization, is designed to confirm past SARS-CoV-2 infection, the virus that causes COVID-19. It is the first indication for the T-Detect product line. In June 2022, we launched a second indication, T-Detect Lyme, which is designed to help diagnose early Lyme disease. In addition, we have confirmed signals in Crohn’s disease, celiac disease and multiple sclerosis, and we have identified signals in ulcerative colitis and rheumatoid arthritis. In the future, we intend to sell other diagnostic products and services, including other indications for T-Detect.

Our therapeutic product candidates, being developed under the Genentech Agreement, leverage our platform to identify specific receptors on immune cells to develop into cellular therapies in oncology. We also extended our platform to identify highly potent neutralizing antibodies against SARS-CoV-2 and we believe this differentiated approach may be leveraged across multiple disease states.

Our first clinical diagnostic product, clonoSEQ, is the first test authorized by the Food and Drug Administration for the detection and monitoring of MRD in patients with multiple myeloma, B cell acute lymphoblastic leukemia and chronic lymphocytic leukemia, and is also available as a CLIA-validated laboratory developed test for patients with other lymphoid cancers. We disclose our clonoSEQ test volume, which includes the number of clonoSEQ reports and results we have provided to ordering physicians in the United States and international technology transfer sites. These volumes do not include sample results from our biopharmaceutical customers or academic institutions utilizing our MRD services.

Historically, we have sold immunoSEQ as a fee-for-service offering. These research offerings have comprised the majority of our revenue to date, although our business is pursuing broader opportunities. As we continue to expand the use of our clonoSEQ diagnostic tests, develop T-Detect and develop and commercialize therapeutic product candidates with our drug discovery collaborator, we expect our mix of revenue to shift to clinical products and services, which we believe will become our largest sources of revenue.

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We are actively pursuing opportunities to deepen our relationships with current customers and initiate relationships with new customers. We have an experienced, specialty salesforce that is targeting department heads, laboratory directors, principal investigators, core facility directors, clinicians, payors, research scientists and pathologists at leading academic and research institutions, biopharmaceutical companies and contract research organizations. As MRD assessment becomes standard practice for patient management across a range of blood cancers, we believe it will be essential for clinicians and patients to have access to a highly accurate, sensitive and standardized MRD assessment tool. We are focused on establishing and maintaining collaborative relationships with payors, developing health economic evidence and building billing and patient access infrastructure to expand reimbursement coverage for our clinical diagnostics. We continue to seek expanded coverage of our clonoSEQ diagnostic test and have successfully expanded coverage through contractual agreements or positive medical policies with Medicare and several of the largest national private health insurers in the United States.

We recognized revenue of $43.7 million and $38.5 million for the three months ended June 30, 2022 and 2021, respectively, and $82.3 million and $76.9 million for the six months ended June 30, 2022 and 2021, respectively. Net loss attributable to Adaptive Biotechnologies Corporation was $52.0 million and $49.3 million for the three months ended June 30, 2022 and 2021, respectively, and $114.8 million and $89.9 million for the six months ended June 30, 2022 and 2021, respectively. We have funded our operations to date principally from the sale of convertible preferred stock and common stock and, to a lesser extent, revenue. As of June 30, 2022 and December 31, 2021, we had cash, cash equivalents and marketable securities of $450.7 million and $570.2 million, respectively.

Reduction in Workforce

In March 2022, we began implementing a restructuring plan to reduce operating costs and drive future growth aligned with the strategic reorganization of our business around our MRD and Immune Medicine market opportunities. Under this restructuring plan, we reduced our workforce by approximately 100 employees.

We incurred aggregate restructuring costs of $2.0 million, all of which was recognized in the six months ended June 30, 2022. These costs primarily related to one-time termination benefits and ongoing benefit arrangements, both of which included severance payments and extended benefits coverage support and were contingent upon the impacted employees’ execution and non-revocation of separation agreements. Our aggregate restructuring costs also included certain contract termination costs.

The activities related to our reduction in workforce were primarily completed in March 2022 and the $2.0 million aggregate restructuring costs were paid as of June 30, 2022.

Revenue Reclassification and clonoSEQ Test Volume

We previously disclosed revenue bifurcated into sequencing and development financial statement captions. Beginning with the reporting period ended March 31, 2022, we changed how we classify revenue and now present total revenue on the unaudited condensed consolidated statements of operations included elsewhere in this report. We disaggregate revenue under our Immune Medicine and MRD market opportunities in Note 3 of the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report.

The following table presents the amount of sequencing revenue and development revenue recognized under our Immune Medicine and MRD market opportunities for the periods presented (in thousands):

	Three Months Ended
	December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021
Immune Medicine revenue
Sequencing revenue	$	6,860	$	8,170	$	5,404	$	4,048
Development revenue		14,514		15,445		17,635		16,057
Total Immune Medicine revenue		21,374		23,615		23,039		20,105
MRD revenue
Sequencing revenue		16,201		13,936		13,151		11,126
Development revenue		355		1,916		2,315		7,211
Total MRD revenue		16,556		15,852		15,466		18,337
Total revenue	$	37,930	$	39,467	$	38,505	$	38,442

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Adaptive Biotechnologies Corporation

	Three Months Ended
	December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020
Immune Medicine revenue
Sequencing revenue	$	3,310	$	3,691	$	2,036	$	3,170
Development revenue		17,155		12,438		12,856		11,077
Total Immune Medicine revenue		20,465		16,129		14,892		14,247
MRD revenue
Sequencing revenue		9,399		7,585		5,949		6,299
Development revenue		321		2,585		147		364
Total MRD revenue		9,720		10,170		6,096		6,663
Total revenue	$	30,185	$	26,299	$	20,988	$	20,910

We also previously disclosed the number of clonoSEQ reports provided to ordering physicians in the United States, referred to as “clinical sequencing volume” or “clinical sequencing volume, excluding T-Detect COVID volume” in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of certain of our SEC filings. Beginning with the reporting period ended March 31, 2022, we changed our disclosures related to volume metrics and now present the number of clonoSEQ reports and results we have provided to ordering physicians in the United States and international technology transfer sites, collectively referred to as “clonoSEQ test volume.” Our clonoSEQ test volume does not include sample results from our biopharmaceutical customers or academic institutions utilizing our MRD services.

The following table presents our clonoSEQ test volume for the periods presented:

	Three Months Ended
	December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021
Clinical sequencing volume, excluding T-Detect COVID volume		6,356		5,928		5,475		4,757
clonoSEQ reports or results provided to international technology transfer sites		494		413		422		543
clonoSEQ test volume		6,850		6,341		5,897		5,300

	Three Months Ended
	December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020
Clinical sequencing volume		4,509		4,023		3,136		3,518
clonoSEQ reports or results provided to international technology transfer sites		704		375		310		238
clonoSEQ test volume		5,213		4,398		3,446		3,756

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Adaptive Biotechnologies Corporation

Components of Results of Operations

Revenue

We derive revenue by providing diagnostic and research services in our Immune Medicine and MRD market opportunities. Our Immune Medicine revenue consists of revenue generated from (1) providing sample testing services for our commercial research product, immunoSEQ, to biopharmaceutical customers and academic institutions; (2) providing our T-Detect COVID tests to clinical customers; and (3) our collaboration agreements with Genentech and other biopharmaceutical customers in areas of drug and target discovery. 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.

For our research customers, which include biopharmaceutical customers and academic institutions for both our immunoSEQ and MRD services, delivery of the respective test results may include some level of professional support and analysis. Terms with biopharmaceutical customers generally include non-refundable upfront payments, which we record as deferred revenue. For all research customers, we recognize revenue as we deliver sequencing results. From time to time, we offer discounts in order to gain rights and access to certain datasets. Revenue is recognized net of these discounts and costs associated with these services are reflected in cost of revenue. In periods where our sample estimates are reduced or a customer project is cancelled and, in either case, we have remaining related deferred revenue, we recognize revenue using a cumulative catch-up approach based on the proportion of samples delivered to date relative to the remaining samples expected to be delivered. Certain of our MRD revenue arrangements with biopharmaceutical customers include consideration in the form of regulatory milestones upon regulatory approval of the respective biopharmaceutical partners’ therapeutics. Such revenue is constrained from recognition until it becomes probable that such milestone will be achieved.

Under certain agreements with our biopharmaceutical customers who seek access to our platform to support their therapeutic development activities, revenues are generated from research and development support services that we provide. These agreements may include substantial non-refundable upfront payments, which we recognize over time as we perform the respective services. Revenue recognized from these activities relate primarily to our Genentech Agreement.

For our clinical customers, we primarily derive revenue from providing our clonoSEQ report to ordering physicians. We bill medical institutions and commercial and government payors based on reports delivered to ordering physicians. Amounts paid for clonoSEQ by medical institutions and commercial and government payors vary based on respective reimbursement rates and patient responsibilities, which may differ from our targeted list price. We recognize clinical revenue by evaluating customer payment history, contracted reimbursement rates, if applicable, and other adjustments to estimate the amount of revenue that is collectible.

For our clonoSEQ coverage under Medicare, we bill an episode of treatment when we deliver the first eligible test report. This billing contemplates all necessary tests required during a patient’s treatment cycle, which is currently estimated at approximately four tests per patient, including the initial sequence identification test. Revenue recognition commences at the time the initial billable test report is delivered and is based upon cumulative tests delivered to date. Any unrecognized revenue from the initial billable test is recorded as deferred revenue and recognized either as we deliver our estimate of the remaining tests in a patient’s treatment cycle or when the likelihood becomes remote that a patient will receive additional testing.

We expect revenue to increase over the long term, particularly as the mix of revenue migrates to clinical diagnostics and drug discovery. The pace by which this mix migrates will be determined by the level of customer adoption and frequency of use of our products and services. Our revenue may fluctuate from period to period due to the uncertain nature of delivery of our products and services, the achievement of milestones by our customers, timing of expenses incurred, changes in estimates of total anticipated costs related to our Genentech Agreement and other events not within our control, such as the delivery of customer samples or customer decisions to no longer pursue their development initiatives.

Due to the ongoing uncertainties related to the COVID-19 pandemic, we may experience variability in revenue in the near term as our customers’ abilities to procure samples for their research initiatives change, as customer initiatives evolve and as clinical testing is impacted by the pandemic.

Cost of Revenue

Cost of revenue includes the cost of materials, personnel-related expenses (including salaries, benefits and share-based compensation), shipping and handling expenses, equipment costs and allocated facility costs associated with processing samples and professional support for our service revenue activities. Allocated facility costs include depreciation of laboratory equipment, as well as allocated facility occupancy and information technology costs. Costs associated with processing samples are recorded as expense, regardless of the timing of revenue recognition. As such, cost of revenue and related volume does not always trend in the same direction as revenue recognition and related volume. Additionally, costs to support our Genentech Agreement are a component of our research and development expenses.

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We expect cost of revenue to increase in absolute dollars as we grow our sample testing volume and make investments in laboratory automation and facilities, but the cost per sample to decrease over the long term due to the efficiencies we may gain as assay volume increases from improved utilization of our laboratory capacity, automation and other value engineering initiatives. If our sample volume throughput is reduced as a result of the COVID-19 pandemic or otherwise, cost of revenue as a percentage of total revenue may be adversely impacted due to fixed overhead costs.

Research and Development Expenses

Research and development expenses consist of laboratory materials costs, personnel-related expenses, equipment costs, allocated facility costs, information technology expenses and contract service expenses. Research and development activities support further development and refinement of existing assays and products, discovery of new technologies and investments in our immune medicine platform. We also include in research and development expenses the costs associated with software development of applications to support future commercial opportunities, as well as development activities to support laboratory scaling and workflow. We are currently conducting research and development activities for several products and services and we typically use our laboratory materials, personnel, facilities, information technology and other development resources across multiple development programs. Additionally, certain of these research and development activities benefit more than one of our product opportunities. We do not track research and development expenses by specific product candidates.

A component of our research and development expenses are costs supporting clinical and analytical validations to obtain regulatory approval for future clinical products and services. Additionally, the costs to support our Genentech Agreement are a component of our research and development expenses. Some of these activities have generated and may in the future generate Immune Medicine collaboration revenue.

We expect research and development expenses to experience modest increases in the short term. However, we expect research and development expenses to decrease as a percentage of revenue in the long term, although the percentage may fluctuate from period to period due to the timing and extent of our development and commercialization efforts.

Sales and Marketing Expenses

Sales and marketing expenses include personnel-related expenses for commercial sales, product and account management, marketing, reimbursement, medical education and business development personnel that support commercialization of our platform products. In addition, these expenses include external costs, such as advertising expenses, customer education and promotional expenses, market analysis expenses, conference fees, travel expenses and allocated facility costs.

We expect our sales and marketing expenses to experience modest increases in the short term. In the long term, we expect sales and marketing expenses to increase in absolute dollars as we increase marketing activities to drive awareness and adoption of our products and services. However, we expect sales and marketing expenses to decrease as a percentage of revenue in the long term, subject to fluctuations from period to period due to the timing and magnitude of these expenses.

General and Administrative Expenses

General and administrative expenses include personnel-related expenses (including salaries, benefits and share-based compensation) for our personnel in executive, legal, finance and accounting, human resources and other administrative functions, including third-party billing services. In addition, these expenses include insurance costs, external legal costs, accounting and tax service expenses, consulting fees and allocated facility costs.

We expect minimal growth in our general and administrative expenses in the short term. In the long term, we expect these expenses to decrease as a percentage of revenue as revenue increases.

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Adaptive Biotechnologies Corporation

Statements of Operations Data

The following table sets forth our statements of operations data for the periods presented (in thousands, except share and per share amounts):

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Revenue	$	43,660		$	38,505		$	82,280		$	76,947
Operating expenses
Cost of revenue		13,221			10,765			26,413			20,756
Research and development		37,037			37,800			74,876			71,572
Sales and marketing		24,281			23,216			50,374			43,820
General and administrative		21,200			16,066			45,344			31,002
Amortization of intangible assets		423			423			842			842
Total operating expenses		96,162			88,270			197,849			167,992
Loss from operations		(52,502	)		(49,765	)		(115,569	)		(91,045	)
Interest and other income, net		418			464			689			1,102
Net loss		(52,084	)		(49,301	)		(114,880	)		(89,943	)
Add: Net loss attributable to noncontrolling interest		38			—			98			—
Net loss attributable to Adaptive Biotechnologies Corporation	$	(52,046	)	$	(49,301	)	$	(114,782	)	$	(89,943	)
Net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted	$	(0.37	)	$	(0.35	)	$	(0.81	)	$	(0.64	)
Weighted-average shares used in computing net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted		142,363,589			140,359,317			142,032,261			139,667,380

Comparison of the Three Months Ended June 30, 2022 and 2021

Revenue

	Three Months Ended June 30,				Change						Percent of Revenue
(in thousands, except percentages)	2022		2021		$			%			2022			2021
Immune Medicine revenue
Service revenue	$	7,296	$	5,405	$	1,891			35	%
Collaboration revenue		15,082		17,634		(2,552	)		(14	)
Total Immune Medicine revenue		22,378		23,039		(661	)		(3	)		51	%		60	%
MRD revenue
Service revenue		20,282		13,966		6,316			45
Regulatory milestone revenue		1,000		1,500		(500	)		(33	)
Total MRD revenue		21,282		15,466		5,816			38			49	%		40	%
Total revenue	$	43,660	$	38,505	$	5,155			13			100	%		100	%

The $0.7 million decrease in Immune Medicine revenue was primarily due to a $3.4 million decrease in revenue generated from the Genentech Agreement due to reduced collaboration expenses and a $1.0 million decrease in revenue generated from our T-Detect COVID clinical customers, which were partially offset by a $3.7 million increase in revenue generated from our biopharmaceutical and academic customers.

The $5.8 million increase in MRD revenue was primarily due to a $3.8 million increase in revenue generated from providing our clonoSEQ report to clinical customers and a $2.7 million increase in revenue generated from providing MRD sample testing services to biopharmaceutical customers. These increases were partially offset by a $0.5 million decrease in revenue recognized upon the achievement of certain regulatory milestones by our biopharmaceutical customers’ therapeutics and a $0.3 million decrease in revenue generated from providing MRD sample testing services to investigator-led clinical trials. Our clonoSEQ test volume increased by 53% to 8,998 tests delivered in the three months ended June 30, 2022 from 5,897 tests delivered in the three months ended June 30, 2021.

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Cost of Revenue

	Three Months Ended June 30,				Change					Percent of Revenue
(in thousands, except percentages)	2022		2021		$		%			2022			2021
Cost of revenue	$	13,221	$	10,765	$	2,456		23	%		30	%		28	%

The $2.5 million increase in cost of revenue was primarily attributable to a $0.8 million increase in cost of materials related to mix to higher cost assays, a $0.8 million increase related to higher usage of our production laboratory to process revenue samples versus research and development samples, a $0.8 million increase in labor, overhead and facility costs and a $0.2 million increase in materials cost resulting from increased revenue sample volume. These increases were partially offset by a $0.2 million decrease in certain sample collection costs.

Research and Development

	Three Months Ended June 30,				Change				Percent of Revenue
(in thousands, except percentages)	2022		2021		$			%	2022			2021
Research and development	$	37,037	$	37,800	$	(763	)	(2)%		85	%		98	%

The following table presents disaggregated research and development expenses by cost classification for the periods presented:

	Three Months Ended June 30,
(in thousands)	2022		2021		Change
Research and development materials and allocated production laboratory expenses	$	13,330	$	15,066	$	(1,736	)
Personnel expenses		16,654		15,248		1,406
Allocable facilities and information technology expenses		2,014		1,664		350
Software and cloud services expenses		762		1,023		(261	)
Depreciation and other expenses		4,277		4,799		(522	)
Total	$	37,037	$	37,800	$	(763	)

The $0.8 million decrease in research and development expenses was primarily attributable to a $1.7 million decrease in cost of materials and allocated production laboratory expenses, partially offset by a $1.4 million increase in personnel costs. The $1.7 million decrease in cost of materials and allocated production laboratory expenses was driven primarily by decreased investments in drug discovery and T-Detect and TCR-Antigen Map development activities, partially offset by a $2.8 million inventory reserve charge recognized in the three months ended June 30, 2022. There was also a $0.5 million decrease in depreciation and other expenses, driven primarily by a $1.0 million decrease in collaboration and medical advisory costs, which was partially offset by a $0.5 million increase in depreciation expense.

Sales and Marketing

	Three Months Ended June 30,				Change					Percent of Revenue
(in thousands, except percentages)	2022		2021		$		%			2022			2021
Sales and marketing	$	24,281	$	23,216	$	1,065		5	%		56	%		60	%

The $1.1 million increase in sales and marketing expenses was primarily attributable to a $2.0 million increase in travel and customer event related expenses and a $1.6 million increase in personnel costs, which were partially offset by a $2.5 million decrease in marketing expenses driven primarily by reduced clonoSEQ, T-Detect and corporate marketing efforts.

General and Administrative

	Three Months Ended June 30,				Change					Percent of Revenue
(in thousands, except percentages)	2022		2021		$		%			2022			2021
General and administrative	$	21,200	$	16,066	$	5,134		32	%		49	%		42	%

The $5.1 million increase in general and administrative expenses was primarily attributable to a $3.5 million increase in building, facility and depreciation related expenses, as well as a $1.3 million increase in personnel costs and a $0.7 million increase in computer and software expenses. These increases were partially offset by a $0.7 million decrease in legal and accounting fees.

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Interest and Other Income, Net

	Three Months Ended June 30,				Change
(in thousands, except percentages)	2022		2021		$			%
Interest and other income, net	$	418	$	464	$	(46	)	(10)%

The modest decrease in interest and other income, net was primarily attributable to a slight decrease in net interest income and investment amortization resulting from a smaller portfolio.

Comparison of the Six Months Ended June 30, 2022 and 2021

Revenue

	Six Months Ended June 30,				Change						Percent of Revenue
(in thousands, except percentages)	2022		2021		$			%			2022			2021
Immune Medicine revenue
Service revenue	$	14,409	$	9,453	$	4,956			52	%
Collaboration revenue		28,785		33,691		(4,906	)		(15	)
Total Immune Medicine revenue		43,194		43,144		50		*				52	%		56	%
MRD revenue
Service revenue		35,086		25,303		9,783			39
Regulatory milestone revenue		4,000		8,500		(4,500	)		(53	)
Total MRD revenue		39,086		33,803		5,283			16			48	%		44	%
Total revenue	$	82,280	$	76,947	$	5,333			7			100	%		100	%
* Less than 0%

The $0.1 million increase in Immune Medicine revenue was primarily due to a $7.1 million increase in revenue generated from our biopharmaceutical and academic customers, which was mostly offset by a $6.8 million decrease in revenue generated from the Genentech Agreement resulting from reduced collaboration expenses and a $0.3 million decrease in revenue generated from our T-Detect COVID clinical customers.

The $5.3 million increase in MRD revenue was primarily due to a $7.4 million increase in revenue generated from providing our clonoSEQ report to clinical customers and a $2.8 million increase in revenue generated from providing MRD sample testing services to biopharmaceutical customers. These increases were partially offset by a $4.5 million decrease in revenue recognized upon the achievement of certain regulatory milestones by our biopharmaceutical customers’ therapeutics and a $0.6 million decrease in revenue generated from providing MRD sample testing services to investigator-led clinical trials. Our clonoSEQ test volume increased by 47% to 16,471 tests delivered in the six months ended June 30, 2022 from 11,197 tests delivered in the six months ended June 30, 2021.

Cost of Revenue

	Six Months Ended June 30,				Change					Percent of Revenue
(in thousands, except percentages)	2022		2021		$		%			2022			2021
Cost of revenue	$	26,413	$	20,756	$	5,657		27	%		32	%		27	%

The $5.7 million increase in cost of revenue was primarily attributable to a $2.0 million increase in labor, overhead and facility costs and a $1.8 million increase in materials cost resulting from increased revenue sample volume. Additionally, there was a $0.9 million increase related to higher usage of our production laboratory to process revenue samples versus research and development samples, a $0.5 million increase in cost of materials related to mix to higher cost assays and a $0.2 million increase in shipping costs.

Research and Development

	Six Months Ended June 30,				Change					Percent of Revenue
(in thousands, except percentages)	2022		2021		$		%			2022			2021
Research and development	$	74,876	$	71,572	$	3,304		5	%		91	%		93	%

30

Adaptive Biotechnologies Corporation

The following table presents disaggregated research and development expenses by cost classification for the periods presented:

	Six Months Ended June 30,
(in thousands)	2022		2021		Change
Research and development materials and allocated production laboratory expenses	$	25,485	$	27,833	$	(2,348	)
Personnel expenses		35,292		29,923		5,369
Allocable facilities and information technology expenses		3,879		3,190		689
Software and cloud services expenses		1,403		1,857		(454	)
Depreciation and other expenses		8,817		8,769		48
Total	$	74,876	$	71,572	$	3,304

The $3.3 million increase in research and development expenses was primarily attributable to a $5.4 million increase in personnel costs, of which $0.7 million related to our restructuring activities, partially offset by a $2.3 million decrease in cost of materials and allocated production laboratory expenses, which was driven primarily by decreased investments in drug discovery and clonoSEQ efforts, partially offset by a $2.8 million inventory reserve charge recognized in the three months ended June 30, 2022. There was also a $1.2 million decrease in collaboration and medical advisory costs, which was largely offset by a $1.1 million increase in depreciation expense.

Sales and Marketing

	Six Months Ended June 30,				Change					Percent of Revenue
(in thousands, except percentages)	2022		2021		$		%			2022			2021
Sales and marketing	$	50,374	$	43,820	$	6,554		15	%		61	%		57	%

The $6.6 million increase in sales and marketing expenses was primarily attributable to $7.1 million in additional personnel costs, of which $0.9 million related to our restructuring activities, as well as a $2.4 million increase in travel and customer event related expenses. These increases were partially offset by a $3.2 million decrease in marketing expenses driven primarily by reduced clonoSEQ, T-Detect and corporate marketing efforts.

General and Administrative

	Six Months Ended June 30,				Change					Percent of Revenue
(in thousands, except percentages)	2022		2021		$		%			2022			2021
General and administrative	$	45,344	$	31,002	$	14,342		46	%		55	%		40	%

The $14.3 million increase in general and administrative expenses was primarily attributable to a $7.8 million increase in building, facility and depreciation related expenses, as well as a $4.0 million increase in personnel costs, a $1.4 million increase in computer and software expenses and a $1.2 million increase in consultant costs. These increases were partially offset by a $1.0 million decrease in legal and accounting fees.

Interest and Other Income, Net

	Six Months Ended June 30,				Change
(in thousands, except percentages)	2022		2021		$			%
Interest and other income, net	$	689	$	1,102	$	(413	)	(37)%

The $0.4 million decrease in interest and other income, net was primarily attributable to a decrease in net interest income and investment amortization resulting from a smaller portfolio.

Liquidity and Capital Resources

We have incurred losses since inception and have incurred negative cash flows from operations since inception through June 30, 2022, with the exception of certain 2019 periods for which we had positive cash flows from operations. As of June 30, 2022, we had an accumulated deficit of $833.7 million.

We have funded our operations to date principally from the sale of convertible preferred stock and common stock and, to a lesser extent, revenue. As of June 30, 2022, we had cash, cash equivalents and marketable securities of $450.7 million.

31

Adaptive Biotechnologies Corporation

We believe our existing cash, cash equivalents and marketable securities will be sufficient to fund our operating expenses and capital expenditure requirements through at least the next 12 months. We may consider raising additional capital to expand our business, to pursue strategic investments, to take advantage of financing opportunities or for other reasons.

If our available cash, cash equivalents and marketable securities balances and anticipated cash flows from operations are insufficient to satisfy our liquidity requirements, we may seek to sell additional equity or convertible debt securities, enter into a credit facility or another form of third-party funding or seek other debt financing. The sale of equity and convertible debt securities may result in dilution to our shareholders and, in the case of preferred equity securities or convertible debt, those securities could provide for rights, preferences or privileges senior to those of our common stock. The terms of debt securities issued or borrowings pursuant to a credit agreement could impose significant restrictions on our operations. This additional capital may not be available on reasonable terms, or at all.

We plan to utilize the existing cash, cash equivalents and marketable securities on hand primarily to fund our continued research and development initiatives for our pipeline candidates and drug discovery initiatives, our ongoing investments in our immune medicine platform and our commercial and marketing activities associated with our clinical products and services. We also expect to make capital expenditures in the near term related to our laboratory space and expect to continue investing in laboratory equipment and operations to support our anticipated growth. Cash in excess of immediate requirements is invested in accordance with our investment policy, primarily with a view to capital preservation and liquidity. Currently, our funds are held in money market funds and marketable securities consisting of U.S. government debt securities and corporate bonds.

There have been no material changes outside the ordinary course of business to our contractual obligations and commitments as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 15, 2022. See Note 8 of the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report for more information regarding our contractual obligations relating to lease agreements.

While we may experience variability in revenue in the near term, as long-term revenue from sales of our current and future products and services is expected to grow, we expect our accounts receivable and inventory balances to increase. Any increase in accounts receivable and inventory may not be completely offset by increases in accounts payable and accrued expenses, which could result in greater working capital requirements.

Cash Flows

The following table summarizes our uses and sources of cash for the six months ended June 30, 2022 and 2021 (in thousands):

	Six Months Ended June 30,
	2022			2021
Net cash used in operating activities	$	(111,518	)	$	(95,458	)
Net cash provided by investing activities		42,434			135,266
Net cash provided by financing activities		6,739			20,942

Operating Activities

Cash used in operating activities during the six months ended June 30, 2022 was $111.5 million, which was primarily attributable to a net loss of $114.9 million and a net change in our operating assets and liabilities of $41.7 million, partially offset by noncash share-based compensation of $27.0 million, noncash depreciation and amortization of $11.7 million, noncash lease expense of $3.6 million and a research and development inventory reserve charge of $2.8 million. The net change in our operating assets and liabilities was primarily due to a $24.2 million reduction in deferred revenue primarily related to revenue recognized from the Genentech Agreement, a reduction in accounts payable and accrued liabilities of $9.0 million driven largely by the payout of our corporate bonus during the three months ended March 31, 2022, an increase in accounts receivable of $6.3 million, which includes the $1.0 million regulatory milestone recognized during the three months ended June 30, 2022, and an increase in inventory of $2.3 million.

Cash used in operating activities during the six months ended June 30, 2021 was $95.5 million, which was primarily attributable to a net loss of $89.9 million and a net change in our operating assets and liabilities of $38.5 million, partially offset by noncash share-based compensation of $19.7 million, noncash depreciation and amortization of $9.8 million and noncash lease expense of $3.5 million. The net change in our operating assets and liabilities was primarily due to a $33.7 million reduction in deferred revenue primarily related to revenue recognized from the Genentech Agreement, an increase in inventory of $4.5 million, an increase in accounts receivable of $4.1 million and a reduction in accounts payable and accrued liabilities of $2.5 million, all of which were partially offset by an increase in operating lease liabilities of $4.5 million and reductions in prepaid expenses and other assets of $2.0 million.

32

Adaptive Biotechnologies Corporation

Investing Activities

Cash provided by investing activities during the six months ended June 30, 2022 was $42.4 million, which was primarily attributable to proceeds from maturities of marketable securities of $136.0 million, partially offset by purchases of marketable securities of $85.2 million and purchases of property and equipment of $8.4 million.

Cash provided by investing activities during the six months ended June 30, 2021 was $135.3 million, which was primarily attributable to proceeds from maturities of marketable securities of $269.5 million, partially offset by purchases of marketable securities of $96.4 million and purchases of property and equipment of $37.9 million.

Financing Activities

Cash provided by financing activities during the six months ended June 30, 2022 was $6.7 million, which was attributable to proceeds from the exercise of stock options.

Cash provided by financing activities during the six months ended June 30, 2021 was $20.9 million, which was primarily attributable to proceeds from the exercise of stock options of $20.5 million.

Net Operating Loss Carryforwards

Utilization of our net operating loss (“NOL”) carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by Section 382 of the Internal Revenue Code of 1986 (“Section 382”) and similar state provisions. The annual limitation may result in the expiration of NOL carryforwards and credits before utilization. If there should be an ownership change, our ability to utilize our NOL carryforwards and credits could be limited. We have completed a Section 382 analysis for changes in ownership through December 31, 2020 and continue to monitor for changes that could trigger a limitation. Based on this analysis, we do not expect to have any permanent limitations on the utilization of our federal NOLs. Under the Tax Cuts and Jobs Act of 2017, federal NOLs incurred in 2018 and future years may be carried forward indefinitely, but the deductibility of such federal NOLs is subject to an annual limitation. NOLs generated prior to 2018 are eligible to be carried forward up to 20 years. Based on the available objective evidence, management determined that it was more likely than not that the net deferred tax assets would not be realizable as of December 31, 2021. Accordingly, management applied a full valuation allowance against net deferred tax assets as of December 31, 2021.

Critical Accounting Policies and Estimates

We have prepared the unaudited condensed consolidated financial statements in accordance with GAAP. Our preparation of these unaudited condensed consolidated financial statements requires us to make estimates, assumptions and judgments that affect the reported amounts of assets, liabilities and related disclosures at the date of the unaudited condensed consolidated financial statements, as well as revenue and expense recorded during the reporting periods. We evaluate our estimates and judgments on an ongoing basis. We base our estimates on historical experience and or other relevant assumptions that we believe to be reasonable under the circumstances. Estimates are used in several areas, including, but not limited to, estimates of progress to date for certain performance obligations and the transaction price for certain contracts with customers, the provision for income taxes, including related reserves, and goodwill, among others. These estimates generally involve complex issues and require judgments, involve the analysis of historical results and prediction of future trends, can require extended periods of time to resolve and are subject to change from period to period. Actual results may differ materially from management’s estimates.

While our significant accounting policies are described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 15, 2022, as well as in Note 2 of the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report, we believe the following accounting policies are critical to the judgments and estimates used in the preparation of the unaudited condensed consolidated financial statements:

• revenue recognition; and

• goodwill.

There have been no material changes to our critical accounting policies and estimates as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 15, 2022.

33

Adaptive Biotechnologies Corporation

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

We are exposed to market risk for changes in interest rates related primarily to our cash, cash equivalents and marketable securities. As of June 30, 2022, there have been no material changes to our market risks as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 15, 2022. We do not enter into investments for trading purposes and have not used any derivative financial instruments to manage our interest rate risk exposure.

Item 4. Controls and Procedures

Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of the end of the period covered by this report. Based on that evaluation, our chief executive officer and chief financial officer have concluded that our disclosure controls and procedures were effective as of June 30, 2022. There was not any change in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) during the three months ended June 30, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

34

Adaptive Biotechnologies Corporation

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we may be subject to legal proceedings. We are not currently a party to or aware of any proceedings that we believe will have, individually or in the aggregate, a material adverse effect on our business, financial condition or results of operations. Regardless of outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

Item 1A. Risk Factors

Investing in our common stock involves a high degree of risk. We operate in a rapidly changing environment that involves a number of risks that could materially affect our business, financial condition or future results, some of which are beyond our control. In addition to the other information set forth in this report, the risks and uncertainties that we believe are most important for you to consider are discussed in Part I, Item 1A under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 15, 2022. The risk factors may be important to understanding other statements in this report and should be read in conjunction with the unaudited condensed consolidated financial statements and related notes in this report. The occurrence of any single risk or any combination of risks could materially and adversely affect our business, operations, product pipeline, operating results, financial condition or liquidity, and consequently, the value of our securities. Further, additional risks that we currently do not know about or that we currently believe to be immaterial may also impair our business, financial condition, operating results and prospects.

There have been no material changes to the risk factors described in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 15, 2022.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

35

Adaptive Biotechnologies Corporation

Item 6. Exhibits

		Incorporated by Reference
Exhibit Number	Exhibit Title	Form	File No.	Exhibit	Filing Date	Filed/ Furnished with This Report
3.1	Amended and Restated Articles of Incorporation	8-K	001-38957	3.1	7/1/2019
3.2	Amended and Restated Bylaws	8-K	001-38957	3.2	7/1/2019
4.1	Seventh Amended and Restated Investors' Rights Agreement among the Registrant and certain of its shareholders, dated May 30, 2019	S-1	333-231838	4.1	5/30/2019
31.1	Certification of Principal Executive Officer pursuant to Rule 13a‑14(a) or Rule 15d‑14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002					X
31.2	Certification of Principal Financial Officer pursuant to Rule 13a‑14(a) or Rule 15d‑14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002					X
32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002					X
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002					X
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.					X
101.SCH	Inline XBRL Taxonomy Extension Schema Document					X
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document					X
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document					X
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document					X
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document					X
104	Cover Page Interactive Data File (formatted in Inline XBRL and included in Exhibit 101)					X

36

Adaptive Biotechnologies Corporation

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Adaptive Biotechnologies Corporation
Date: August 3, 2022	By:	/s/ Chad Robins
		Chad Robins
		Chief Executive Officer and Director (Principal Executive Officer)
Date: August 3, 2022	By:	/s/ Tycho Peterson
		Tycho Peterson
		Chief Financial Officer (Principal Financial Officer)

37

EX-31.1

Exhibit 31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Chad Robins, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Adaptive Biotechnologies Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Exhibit 31.1

Date: August 3, 2022	By:	/s/ Chad Robins
		Chad Robins
		Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Tycho Peterson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Adaptive Biotechnologies Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Exhibit 31.2

Date: August 3, 2022	By:	/s/ Tycho Peterson
		Tycho Peterson
		Chief Financial Officer
		(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Adaptive Biotechnologies Corporation (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: August 3, 2022	By:	/s/ Chad Robins
		Chad Robins
		Chief Executive Officer
		(Principal Executive Officer)

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Adaptive Biotechnologies Corporation (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: August 3, 2022	By:	/s/ Tycho Peterson
		Tycho Peterson
		Chief Financial Officer
		(Principal Financial Officer)

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

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	Jun. 30, 2022	Jul. 29, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Trading Symbol	ADPT
Entity Registrant Name	ADAPTIVE BIOTECHNOLOGIES CORPORATION
Entity Central Index Key	0001478320
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common stock, par value $0.0001 per share
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		142,872,988
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity File Number	001-38957
Entity Tax Identification Number	27-0907024
Entity Address, Address Line One	1165 Eastlake Avenue East
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
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Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 76,412,000	$ 139,065,000
Short-term marketable securities (amortized cost of $310,999 and $214,115, respectively)	307,326,000	213,996,000
Accounts receivable, net	23,712,000	17,409,000
Inventory	18,778,000	19,263,000
Prepaid expenses and other current assets	12,347,000	13,015,000
Total current assets	438,575,000	402,748,000
Long-term assets
Property and equipment, net	86,852,000	85,262,000
Operating lease right-of-use assets	84,398,000	87,678,000
Long-term marketable securities (amortized cost of $69,055 and $218,163, respectively)	66,928,000	217,145,000
Restricted cash	2,446,000	2,138,000
Intangible assets, net	7,684,000	8,526,000
Goodwill	118,972,000	118,972,000
Other assets	778,000	875,000
Total assets	806,633,000	923,344,000
Current liabilities
Accounts payable	2,720,000	3,307,000
Accrued liabilities	9,447,000	9,343,000
Accrued compensation and benefits	9,772,000	15,642,000
Current portion of operating lease liabilities	8,615,000	5,055,000
Current portion of deferred revenue	80,914,000	80,460,000
Total current liabilities	111,468,000	113,807,000
Long-term liabilities
Operating lease liabilities, less current portion	102,727,000	106,685,000
Deferred revenue, less current portion	74,122,000	98,750,000
Total liabilities	288,317,000	319,242,000
Commitments and contingencies (Note 9)
Shareholders’ equity
Preferred stock: $0.0001 par value, 10,000,000 shares authorized at June 30, 2022 and December 31, 2021; no shares issued and outstanding at June 30, 2022 and December 31, 2021
Common stock: $0.0001 par value, 340,000,000 shares authorized at June 30, 2022 and December 31, 2021; 142,784,868 and 141,393,865 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	14,000	14,000
Additional paid-in capital	1,357,763,000	1,324,006,000
Accumulated other comprehensive loss	(5,800,000)	(1,137,000)
Accumulated deficit	(833,673,000)	(718,891,000)
Total Adaptive Biotechnologies Corporation shareholders’ equity	518,304,000	603,992,000
Noncontrolling interest	12,000	110,000
Total shareholders’ equity	518,316,000	604,102,000
Total liabilities and shareholders’ equity	$ 806,633,000	$ 923,344,000

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Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Statement Of Financial Position [Abstract]
Amortized cost of short-term marketable securities	$ 310,999	$ 214,115
Amortized cost of long-term marketable securities	$ 69,055	$ 218,163
Preferred stock par value	$ 0.0001	$ 0.0001
Preferred stock authorized	10,000,000	10,000,000
Preferred stock issued	0	0
Preferred stock outstanding	0	0
Common stock par value	$ 0.0001	$ 0.0001
Common stock authorized	340,000,000	340,000,000
Common stock issued	142,784,868	141,393,865
Common stock outstanding	142,784,868	141,393,865

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Revenue	$ 43,660	$ 38,505	$ 82,280	$ 76,947
Operating expenses
Cost of revenue	13,221	10,765	26,413	20,756
Research and development	37,037	37,800	74,876	71,572
Sales and marketing	24,281	23,216	50,374	43,820
General and administrative	21,200	16,066	45,344	31,002
Amortization of intangible assets	423	423	842	842
Total operating expenses	96,162	88,270	197,849	167,992
Loss from operations	(52,502)	(49,765)	(115,569)	(91,045)
Interest and other income, net	418	464	689	1,102
Net loss	(52,084)	(49,301)	(114,880)	(89,943)
Add: Net loss attributable to noncontrolling interest	38		98
Net loss attributable to Adaptive Biotechnologies Corporation	$ (52,046)	$ (49,301)	$ (114,782)	$ (89,943)
Net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic	$ (0.37)	$ (0.35)	$ (0.81)	$ (0.64)
Weighted-average shares used in computing net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic	142,363,589	140,359,317	142,032,261	139,667,380
Net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, diluted	$ (0.37)	$ (0.35)	$ (0.81)	$ (0.64)
Weighted-average shares used in computing net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, diluted	142,363,589	140,359,317	142,032,261	139,667,380

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Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement Of Financial Position [Abstract]
Net loss	$ (52,084)	$ (49,301)	$ (114,880)	$ (89,943)
Other comprehensive loss
Change in unrealized gains and losses on investments	(1,017)	(415)	(4,663)	(677)
Comprehensive loss	(53,101)	(49,716)	(119,543)	(90,620)
Add: Comprehensive loss attributable to noncontrolling interest	38		98
Comprehensive loss attributable to Adaptive Biotechnologies Corporation	$ (53,063)	$ (49,716)	$ (119,445)	$ (90,620)

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Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid In Capital	Accumulated Other Comprehensive Gain (Loss)	Accumulated Deficit	Noncontrolling Interest
Beginning Balance at Dec. 31, 2020	$ 743,266	$ 14	$ 1,253,971	$ 893	$ (511,612)
Beginning Balance, Shares at Dec. 31, 2020		137,646,896
Issuance of common stock upon exercise of common stock warrant, Shares		54,162
Issuance of common stock for cash upon exercise of stock options	20,502		20,502
Issuance of common stock for cash upon exercise of stock options, Shares		2,950,197
Vesting of restricted stock units		12,500
Common stock option, restricted stock unit and market-based restricted stock unit share-based compensation	19,733		19,733
Capital contributions for Digital Biotechnologies, Inc.	429		300			$ 129
Other comprehensive loss	(677)			(677)
Net loss	(89,943)				(89,943)
Ending Balance at Jun. 30, 2021	693,310	$ 14	1,294,506	216	(601,555)	129
Ending Balance, Shares at Jun. 30, 2021		140,663,755
Beginning Balance at Mar. 31, 2021	725,717	$ 14	1,277,197	631	(552,254)	129
Beginning Balance, Shares at Mar. 31, 2021		139,884,698
Issuance of common stock for cash upon exercise of stock options	6,060		6,060
Issuance of common stock for cash upon exercise of stock options, Shares		766,557
Vesting of restricted stock units		12,500
Common stock option, restricted stock unit and market-based restricted stock unit share-based compensation	11,249		11,249
Other comprehensive loss	(415)			(415)
Net loss	(49,301)				(49,301)
Ending Balance at Jun. 30, 2021	693,310	$ 14	1,294,506	216	(601,555)	129
Ending Balance, Shares at Jun. 30, 2021		140,663,755
Beginning Balance at Dec. 31, 2021	604,102	$ 14	1,324,006	(1,137)	(718,891)	110
Beginning Balance, Shares at Dec. 31, 2021		141,393,865
Issuance of common stock for cash upon exercise of stock options	$ 6,716		6,716
Issuance of common stock for cash upon exercise of stock options, Shares	1,230,089	1,230,089
Vesting of restricted stock units		160,914
Common stock option, restricted stock unit and market-based restricted stock unit share-based compensation	$ 27,041		27,041
Other comprehensive loss	(4,663)			(4,663)
Net loss	(114,880)				(114,782)	(98)
Ending Balance at Jun. 30, 2022	518,316	$ 14	1,357,763	(5,800)	(833,673)	12
Ending Balance, Shares at Jun. 30, 2022		142,784,868
Beginning Balance at Mar. 31, 2022	553,255	$ 14	1,339,601	(4,783)	(781,627)	50
Beginning Balance, Shares at Mar. 31, 2022		142,183,258
Issuance of common stock for cash upon exercise of stock options	3,982		3,982
Issuance of common stock for cash upon exercise of stock options, Shares		581,881
Vesting of restricted stock units		19,729
Common stock option, restricted stock unit and market-based restricted stock unit share-based compensation	14,180		14,180
Other comprehensive loss	(1,017)			(1,017)
Net loss	(52,084)				(52,046)	(38)
Ending Balance at Jun. 30, 2022	$ 518,316	$ 14	$ 1,357,763	$ (5,800)	$ (833,673)	$ 12
Ending Balance, Shares at Jun. 30, 2022		142,784,868

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating activities
Net loss	$ (114,880)	$ (89,943)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation expense	9,409	4,734
Noncash lease expense	3,597	3,489
Share-based compensation expense	27,041	19,733
Intangible assets amortization	842	842
Investment amortization	1,414	4,174
Research and development inventory reserve	2,769
Other	(19)	(7)
Changes in operating assets and liabilities
Accounts receivable, net	(6,303)	(4,127)
Inventory	(2,284)	(4,549)
Prepaid expenses and other current assets	644	1,995
Accounts payable and accrued liabilities	(8,956)	(2,476)
Operating lease right-of-use assets and liabilities	(715)	4,539
Deferred revenue	(24,174)	(33,742)
Other	97	(120)
Net cash used in operating activities	(111,518)	(95,458)
Investing activities
Purchases of property and equipment	(8,375)	(37,882)
Purchases of marketable securities	(85,191)	(96,352)
Proceeds from maturities of marketable securities	136,000	269,500
Net cash provided by investing activities	42,434	135,266
Financing activities
Proceeds from exercise of stock options	6,739	20,513
Proceeds from initial capital contributions for Digital Biotechnologies, Inc.		429
Net cash provided by financing activities	6,739	20,942
Net (decrease) increase in cash, cash equivalents and restricted cash	(62,345)	60,750
Cash, cash equivalents and restricted cash at beginning of year	141,203	125,574
Cash, cash equivalents and restricted cash at end of period	78,858	186,324
Noncash investing activities
Purchases of equipment included in accounts payable and accrued liabilities	$ 3,286	$ 7,067

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Organization and Description of Business

6 Months Ended

Jun. 30, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Description of Business

1. Organization and Description of Business

Adaptive Biotechnologies Corporation (“we,” “us” or “our”) is a commercial-stage company advancing the field of immune medicine by harnessing the inherent biology of the adaptive immune system to transform the diagnosis and treatment of disease. We believe the adaptive immune system is nature’s most finely tuned diagnostic and therapeutic for most diseases, but the inability to decode it has prevented the medical community from fully leveraging its capabilities. Our immune medicine platform applies our proprietary technologies to read the diverse genetic code of a patient’s immune system and aims to understand precisely how the immune system detects and treats disease in that patient. We capture these insights in our dynamic clinical immunomics database, which is underpinned by computational biology and machine learning, and use them to develop and commercialize clinical products and services that we are tailoring to each individual patient. We have commercial products and services and a robust pipeline of clinical products and services that we are designing to diagnose, monitor and enable the treatment of diseases, such as cancer, autoimmune disorders and infectious diseases.

We were incorporated in the State of Washington on September 8, 2009 under the name Adaptive TCR Corporation. On December 21, 2011, we changed our name to Adaptive Biotechnologies Corporation. We are headquartered in Seattle, Washington.

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Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The unaudited condensed consolidated financial statements include the accounts of Adaptive Biotechnologies Corporation, our wholly-owned subsidiary and Digital Biotechnologies, Inc., a corporate subsidiary we have 70% ownership interest in. The remaining interest in Digital Biotechnologies, Inc., held by certain of our related parties and their related family trusts, are shown in the unaudited condensed consolidated financial statements as noncontrolling interest. All intercompany transactions and balances between Adaptive Biotechnologies Corporation, our wholly-owed subsidiary and Digital Biotechnologies, Inc. have been eliminated upon consolidation.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the periods presented. We base our estimates on historical experience and other relevant assumptions that we believe to be reasonable under the circumstances. Estimates are used in several areas including, but not limited to, estimates of progress to date for certain performance obligations and the transaction price for certain contracts with customers, share-based compensation, including the fair value of stock, the provision for income taxes, including related reserves, and goodwill, among others. These estimates generally involve complex issues and require judgments, involve the analysis of historical results and prediction of future trends, can require extended periods of time to resolve and are subject to change from period to period. Actual results may differ materially from management’s estimates.

Unaudited Interim Condensed Consolidated Financial Statements

In our opinion, the accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information. These unaudited condensed consolidated financial statements include all adjustments necessary to fairly state our financial position and the results of our operations and cash flows for interim periods in accordance with GAAP. All such adjustments were of a normal, recurring nature. Interim-period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period.

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 15, 2022.

Reclassification

We previously disclosed revenue bifurcated into sequencing and development financial statement captions. Beginning with the reporting period ended March 31, 2022, we changed how we classify revenue and now present total revenue on the unaudited condensed consolidated statements of operations. See Note 3, Revenue for additional disaggregation of revenue under our Immune Medicine and MRD market opportunities.

Restricted Cash

We had a restricted cash balance of $2.4 million and $2.1 million as of June 30, 2022 and December 31, 2021, respectively. Our restricted cash primarily relates to certain balances we are required to maintain under lease arrangements for some of our property and facility leases.

Concentrations of Risk

We are subject to a concentration of risk from a limited number of suppliers, or in certain cases single suppliers, for some of our laboratory instruments and materials. This risk is managed by targeting a quantity of surplus stock.

Cash, cash equivalents and marketable securities are financial instruments that potentially subject us to concentrations of credit risk. We invest in money market funds, United States (“U.S.”) government debt securities, U.S. government agency securities, commercial paper and corporate bonds with high-quality accredited financial institutions.

Significant customers are those that represent more than 10% of our total revenue or accounts receivable, net balances for the periods and as of each condensed consolidated balance sheet date presented, respectively.

For each significant customer, revenue as a percentage of total revenue for the periods presented and accounts receivable, net as a percentage of total accounts receivable, net as of the dates presented were as follows:

	Revenue				Accounts Receivable, Net
	Three Months Ended June 30,		Six Months Ended June 30,		June 30,	December 31,
	2022	2021	2022	2021	2022	2021
Customer B	12.3%	*%	14.9%	*%	23.6%	11.3%
Genentech and Roche Group	34.8	46.0	34.3	44.1	*	*
* less than 10%

Revenue Recognition

We recognize revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606 (“ASC 606”), Revenue from Contracts with Customers. Under ASC 606, for all revenue-generating contracts, we perform the following steps to determine the amount of revenue to be recognized: (1) identify the contract or contracts; (2) determine whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (3) measure the transaction price, including the constraint on variable consideration; (4) allocate the transaction price to the performance obligations based on estimated selling prices; and (5) recognize revenue when (or as) we satisfy each performance obligation.

We derive revenue by providing diagnostic and research services in our Immune Medicine and MRD market opportunities. Our Immune Medicine revenue consists of revenue generated from (1) providing sample testing services for our commercial research product, immunoSEQ, to biopharmaceutical customers and academic institutions; (2) providing our T-Detect COVID tests to clinical customers; and (3) our collaboration agreements with Genentech and other biopharmaceutical customers in areas of drug and target discovery. 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.

For research customers who utilize either immunoSEQ or our MRD services, contracts typically include an amount billed in advance of services (“upfront”) and subsequent billings as sample results are delivered to the customer. Upfront amounts received are recorded as deferred revenue, which we recognize as revenue upon satisfaction of performance obligations. We have identified two typical performance obligations under the terms of our research service contracts: (1) the delivery of our immunoSEQ or MRD data for customer provided samples; and (2) related data analysis. We recognize revenue for both identified performance obligations as sample results are delivered to the customer. In periods where our sample estimates are reduced or a customer project is cancelled and, in either case, we have remaining related deferred revenue, we recognize revenue using a cumulative catch-up approach based on the proportion of samples delivered to date relative to the remaining samples expected to be delivered.

For agreements where we provide our clonoSEQ report to ordering physicians, we have identified one performance obligation: the delivery of a clonoSEQ report. We bill and receive payments for these transactions from medical institutions and commercial and government third-party payors. As payment from the respective payors may vary based on the various reimbursement rates and patient responsibilities, we consider the transaction price to be variable and record an estimate of the transaction price, subject to the constraint for variable consideration, as revenue at the time of delivery. The estimate of transaction price is based on historical and expected reimbursement rates with the various payors, which are monitored in subsequent periods and adjusted as necessary based on actual collection experience.

Regarding our clonoSEQ coverage under Medicare, we bill an episode of treatment when we deliver the first eligible test report. This billing contemplates all necessary tests required during a patient’s treatment cycle, which is currently estimated at approximately four tests per patient, including the initial sequence identification test. Revenue recognition commences at the time the initial billable test report is delivered and is based upon cumulative tests delivered to date. We estimate the number of tests we expect to deliver over a patient’s treatment cycle based on historical testing frequencies for patients by indication. These estimates are subject to change as we develop more information about utilization over time. Any unrecognized revenue from the initial billable test is recorded as deferred revenue and is recognized either as we deliver our estimate of the remaining tests in a patient’s treatment cycle or when the likelihood becomes remote that a patient will receive additional testing.

The contract transaction price for agreements we enter into with biopharmaceutical customers to further develop and commercialize their therapeutics may consist of a combination of non-refundable upfront fees, separately priced MRD testing fees and milestone fees earned upon our customers’ achievement of certain regulatory approvals. Depending on the contract, these agreements include single or multiple performance obligations. Such performance obligations include providing services to support our customers’ therapeutic development efforts, including regulatory support for our technology intended to be utilized as part of our customers’ registrational trials, developing analytical plans for our data, participating on joint research committees and assisting in completing a regulatory submission and providing MRD testing services related to customer-provided samples for their regulatory submissions. Generally, the support services, excluding MRD testing services, are not distinct within the context of the contract and thus are accounted for as a single performance obligation. The transaction price allocated to the respective performance obligations is estimated using an adjusted market assessment approach for the regulatory support services and a standalone selling price for the estimated MRD testing services. At contract inception, we fully constrain any consideration related to regulatory milestones, as the achievement of such milestones is subject to third-party regulatory approval and the customers’ own submission decision-making. When MRD sample testing services are separately priced customer options, we assess if a material right exists and, if not, the customer option to purchase additional MRD sample testing services is not considered part of the contract. We recognize revenue related to MRD testing services over time using an output method based on the proportion of sample results delivered relative to the total amount of sample results expected to be delivered, when expected to be a faithful depiction of progress. We use the same method to recognize the regulatory support services. When an output method based on the proportion of sample results delivered is not expected to be a faithful depiction of progress, we utilize an input method using a cost-based model based on estimates of effort completed. Selecting the measure of progress and estimating progress to date requires significant judgment. Except for any non-refundable upfront fees, the other forms of compensation represent variable consideration. Variable consideration related to regulatory milestones is estimated using the most likely amount method, where variable consideration is constrained until it is probable that a significant reversal of cumulative revenue recognized will not occur. Milestone payments for regulatory approvals, which are not within our customers’ control, are not considered probable of being achieved until those approvals are received. Determining whether regulatory milestone payments are probable is an area that requires significant judgment. In making this assessment, we evaluate scientific, clinical, regulatory and other risks, as well as the level of effort and investment required to achieve the respective milestone.

Net Loss Per Share Attributable to Adaptive Biotechnologies Corporation Common Shareholders

We calculate basic net loss per share attributable to our common shareholders by dividing net loss attributable to us by our weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share attributable to our common shareholders is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, outstanding common stock warrants, outstanding stock options, nonvested restricted stock units and the maximum nonvested market-based restricted stock units eligible to be earned are considered common stock equivalents but have been excluded from the calculation of diluted net loss per share attributable to our common shareholders, as their effect is anti-dilutive.

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Revenue

6 Months Ended

Jun. 30, 2022

Revenue From Contract With Customer [Abstract]

Revenue

3. Revenue

We disaggregate our revenue from contracts with customers by market opportunity and type of arrangement, as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following table presents our disaggregated revenue for the periods presented (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Immune Medicine revenue
Service revenue	$	7,296	$	5,405	$	14,409	$	9,453
Collaboration revenue		15,082		17,634		28,785		33,691
Total Immune Medicine revenue		22,378		23,039		43,194		43,144
MRD revenue
Service revenue		20,282		13,966		35,086		25,303
Regulatory milestone revenue		1,000		1,500		4,000		8,500
Total MRD revenue		21,282		15,466		39,086		33,803
Total revenue	$	43,660	$	38,505	$	82,280	$	76,947

During the three months ended June 30, 2022, we recognized $1.4 million in revenue related to changes in estimates of total samples to be provided under certain of our agreements and Medicare reimbursements resulting from our determination that the likelihood of additional testing for specific patients was remote, all of which was recognized as MRD service revenue. During the three months ended June 30, 2021, we recognized $3.1 million in revenue related to changes in estimates of total samples to be provided under certain of our agreements, Medicare reimbursements resulting from our determination that the likelihood of additional testing for specific patients was remote and cancelled customer contracts, all of which was recognized as MRD service revenue.

During the six months ended June 30, 2022, we recognized $2.8 million in revenue related to Medicare reimbursements resulting from our determination that the likelihood of additional testing for specific patients was remote, changes in estimates of total samples to be provided under certain of our agreements and cancelled customer contracts, $0.2 million of which was recognized as Immune Medicine service revenue and $2.6 million of which was recognized as MRD service revenue. During the six months ended June 30, 2021, we recognized $4.1 million in revenue related to changes in estimates of total samples to be provided under certain of our agreements, Medicare reimbursements resulting from our determination that the likelihood of additional testing for specific patients was remote and cancelled customer contracts, $0.1 million of which was recognized as Immune Medicine service revenue and $4.0 million of which was recognized as MRD service revenue.

As of June 30, 2022, we could receive up to an additional $355.5 million in milestone payments in future periods if certain regulatory approvals are obtained by our customers’ therapeutics in connection with MRD data generated from our MRD product.

Genentech Collaboration Agreement

In December 2018, we entered into a worldwide collaboration and license agreement with Genentech (the “Genentech Agreement”) to leverage our capability to develop cellular therapies in oncology. Subsequent to receipt of regulatory approval in January 2019, we received a non-refundable, upfront payment of $300.0 million in February 2019 and may be eligible to receive more than $1.8 billion over time, including payments of up to $75.0 million upon the achievement of specified regulatory milestones, up to $300.0 million upon the achievement of specified development milestones and up to $1,430.0 million upon the achievement of specified commercial milestones. In addition, we are separately able to receive tiered royalties at a rate ranging from the mid-single digits to the mid-teens on aggregate worldwide net sales of products arising from the strategic collaboration, subject to certain reductions, with aggregate minimum floors. Under the agreement, we are pursuing two product development pathways for novel T cell immunotherapies in which Genentech intends to use T cell receptors (“TCRs”) screened by our immune medicine platform to engineer and manufacture cellular medicines:

• Shared Products. The shared products will use “off-the-shelf” TCRs identified against cancer antigens shared among patients (“Shared Products”).

• Personalized Product. The personalized product will use patient-specific TCRs identified by real-time screening of TCRs against cancer antigens in each patient (“Personalized Product”).

Under the terms of the agreement, we granted Genentech exclusive worldwide licenses to develop and commercialize TCR-based cellular therapies in the field of oncology, including licenses to existing shared antigen data packages. Additionally, Genentech has the right to determine which product candidates to further develop for commercialization purposes. We determined that this arrangement meets the criteria set forth in ASC Topic 808, Collaborative Arrangements (“ASC 808”), because both parties are active participants in the activity and are exposed to significant risks and rewards depending on the activity’s commercial failure or success. Because ASC 808 does not provide guidance on how to account for the activities under a collaborative arrangement, we applied the guidance in ASC 606 to account for the activities related to the Genentech Agreement.

In applying ASC 606, we identified the following performance obligations at the inception of the agreement:

1. License to utilize on an exclusive basis all TCR-specific platform intellectual property to develop and commercialize any licensed products in the field of oncology.

2. License to utilize all data and information within each shared antigen data package and any other know-how disclosed by us to Genentech in oncology.

3. License to utilize all private antigen TCR product data in connection with research and development activities in the field of use.

4. License to existing shared antigen data packages.

5. Research and development services for Shared Products development, including expansion of shared antigen data packages.

6. Research and development services for private product development.

7. Obligations to participate on various joint research, development and project committees.

We determined that none of the licenses, research and development services or obligations to participate on various committees were distinct within the context of the contract, given such rights and activities were highly interrelated and there was substantial additional research and development to further develop the licenses. We considered factors such as the stage of development of the respective existing antigen data packages, the subsequent development that would be required to both identify and submit a potential target for investigational new drug acceptance under both product pathways and the variability in research and development pathways given Genentech’s control of product commercialization. Specifically, under the agreement, Genentech is not required to pursue development or commercialization activities pertaining to both product pathways and may choose to proceed with one or the other. Accordingly, we determined that all of the identified performance obligations were attributable to one general performance obligation, which is to further the development of our TCR-specific platform, including data packages, and continue to make our TCR identification process available to Genentech to pursue either product pathway.

Separately, we have a responsibility to Genentech to enter into a supply and manufacturing agreement for patient-specific TCRs as it pertains to any Personalized Product therapeutic. We determined this was an option right of Genentech should they pursue commercialization of a Personalized Product therapy. Because of the uncertainty resulting from the early stage of development, the novel approach of our collaboration with Genentech and our rights to future commercial milestones and royalty payments, we determined that this option right was not a material right that should be accounted for at inception. As such, we will account for the supply and manufacturing agreement when entered into between the parties.

We determined the initial transaction price shall be made up of only the $300.0 million upfront, non-refundable payment, as all potential regulatory and development milestone payments were probable of significant revenue reversal given their achievement was highly dependent on factors outside our control. As a result, these payments were fully constrained and were not included in the transaction price as of June 30, 2022. We excluded the commercial milestones and potential royalties from the transaction price, as those items relate predominantly to the license rights granted to Genentech and will be assessed when and if such events occur.

As there are potential substantive developments necessary, which Genentech may be able to direct, we determined that we would apply a proportional performance model to recognize revenue for our performance obligation. We measure proportional performance using an input method based on costs incurred relative to the total estimated costs of research and development efforts to pursue both the Shared Products and Personalized Product pathways. When any of the potential regulatory and development milestones are no longer fully constrained and are included in the transaction price, such amounts will be recognized using the cumulative catch-up method based on proportional performance at such time. We currently expect to recognize the revenue over a period of approximately seven to eight years from the effective date. This estimate of the research and development period considers pursuit options of development activities supporting both the Shared Products and the Personalized Product, but may be reduced or increased based on the various activities as directed by the joint committees, decisions made by Genentech, regulatory feedback or other factors not currently known.

We recognized $13.8 million and $17.2 million in Immune Medicine collaboration revenue during the three months ended June 30, 2022 and 2021, respectively, and $26.0 million and $32.8 million in Immune Medicine collaboration revenue during the six months ended June 30, 2022 and 2021, respectively, related to the Genentech Agreement. Costs related to the Genentech Agreement are included in research and development expenses.

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Deferred Revenue

6 Months Ended

Jun. 30, 2022

Revenue From Contract With Customer [Abstract]

Deferred Revenue

4. Deferred Revenue

Deferred revenue from our Genentech Agreement represents $53.9 million and $70.1 million of the current and non-current deferred revenue balances, respectively, as of June 30, 2022 and $56.1 million and $94.0 million of the current and non-current deferred revenue balances, respectively, as of December 31, 2021. We expect our current deferred revenue to be recognized as revenue within 12 months. We expect the majority of our non-current deferred revenue to be recognized as revenue over a period of approximately four to five years from June 30, 2022. This period of time represents an estimate of the research and development period to develop cellular therapies in oncology, which may be reduced or increased based on the various research and development activities.

Changes in deferred revenue during the six months ended June 30, 2022 were as follows (in thousands):

Deferred revenue balance at December 31, 2021	$	179,210
Additions to deferred revenue during the period		19,379
Revenue recognized during the period		(43,553	)
Deferred revenue balance at June 30, 2022	$	155,036

As of June 30, 2022, $34.5 million was recognized as revenue that was included in the deferred revenue balance at December 31, 2021.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

5. Fair Value Measurements

The following tables set forth the fair value of financial assets as of June 30, 2022 and December 31, 2021 that were measured at fair value on a recurring basis (in thousands):

	June 30, 2022
	Level 1		Level 2		Level 3		Total
Financial assets
Money market funds	$	70,358	$	—	$	—	$	70,358
U.S. government debt securities		—		334,857		—		334,857
Corporate bonds		—		39,397		—		39,397
Total financial assets	$	70,358	$	374,254	$	—	$	444,612

	December 31, 2021
	Level 1		Level 2		Level 3		Total
Financial assets
Money market funds	$	131,946	$	—	$	—	$	131,946
U.S. government debt securities		—		391,145		—		391,145
Corporate bonds		—		39,996		—		39,996
Total financial assets	$	131,946	$	431,141	$	—	$	563,087

Level 1 securities include highly liquid money market funds, for which we measure the fair value based on quoted prices in active markets for identical assets or liabilities. Level 2 securities consist of U.S. government debt securities and corporate bonds, and are valued based on recent trades of securities in inactive markets or on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data.

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Investments

6 Months Ended

Jun. 30, 2022

Investments Debt And Equity Securities [Abstract]

Investments

6. Investments

Available-for-sale investments consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands):

	June 30, 2022
	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
Short-term marketable securities
U.S. government debt securities	$	271,337	$	—	$	(3,408	)	$	267,929
Corporate bonds		39,662		—		(265	)		39,397
Total short-term marketable securities	$	310,999	$	—	$	(3,673	)	$	307,326
Long-term marketable securities
U.S. government debt securities	$	69,055	$	—	$	(2,127	)	$	66,928
Total long-term marketable securities	$	69,055	$	—	$	(2,127	)	$	66,928

	December 31, 2021
	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
Short-term marketable securities
U.S. government debt securities	$	186,752	$	4	$	(109	)	$	186,647
Corporate bonds		27,363		—		(14	)		27,349
Total short-term marketable securities	$	214,115	$	4	$	(123	)	$	213,996
Long-term marketable securities
U.S. government debt securities	$	205,472	$	—	$	(974	)	$	204,498
Corporate bonds		12,691		—		(44	)		12,647
Total long-term marketable securities	$	218,163	$	—	$	(1,018	)	$	217,145

All the U.S. government debt securities and corporate bonds designated as short-term marketable securities have an effective maturity date that is equal to or less than one year from the respective condensed consolidated balance sheet date. Those that are designated as long-term marketable securities have an effective maturity date that is more than one year from the respective condensed consolidated balance sheet date.

Accrued interest receivable is excluded from the amortized cost and estimated fair value of our marketable securities. Accrued interest receivable of $0.8 million and $1.4 million is presented separately within the prepaid expenses and other current assets balance on the unaudited condensed consolidated balance sheet as of June 30, 2022 and on the condensed consolidated balance sheet as of December 31, 2021, respectively.

The following table presents the gross unrealized holding losses and fair value for investments in an unrealized loss position, and the length of time individual securities have been in a continuous loss position, as of June 30, 2022 (in thousands):

	Less Than 12 Months					12 Months Or Greater
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. government debt securities	$	334,857	$	(5,535	)	$	—	$	—
Corporate bonds		39,397		(265	)		—		—
Total available-for-sale securities	$	374,254	$	(5,800	)	$	—	$	—

We periodically review our available-for-sale securities to assess for credit impairment. Some of the factors considered in assessing impairment include the extent to which the fair value is less than the amortized cost basis, adverse conditions related to the security, an industry or geographic area, changes to security ratings or sector credit ratings and other relevant market data.

As of June 30, 2022, we did not intend, nor were we more likely than not to be required, to sell our available-for-sale investments before the recovery of their amortized cost basis, which may be maturity. Based on our assessment, we concluded all impairment as of June 30, 2022 to be due to factors other than credit loss, such as changes in interest rates. A credit allowance was not recognized and the impairment of our available-for-sale securities was recorded in other comprehensive loss.

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Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

7. Goodwill and Intangible Assets

There have been no changes in the carrying amount of goodwill since its recognition in 2015.

Intangible assets subject to amortization as of June 30, 2022 and December 31, 2021 consisted of the following (in thousands):

	June 30, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Acquired developed technology	$	20,000	$	(12,464	)	$	7,536
Purchased intellectual property		325		(177	)		148
Balance at June 30, 2022	$	20,325	$	(12,641	)	$	7,684

	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Acquired developed technology	$	20,000	$	(11,638	)	$	8,362
Purchased intellectual property		325		(161	)		164
Balance at December 31, 2021	$	20,325	$	(11,799	)	$	8,526

The developed technology was acquired in connection with our acquisition of Sequenta, Inc. in 2015. The remaining balance of the acquired developed technology and the purchased intellectual property is expected to be amortized over the next 4.5 years.

As of June 30, 2022, expected future amortization expense for intangible assets was as follows (in thousands):

2022 (excluding the six months ended June 30, 2022)	$	857
2023		1,699
2024		1,703
2025		1,699
2026		1,699
Thereafter		27
Total future amortization expense	$	7,684

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Leases

6 Months Ended

Jun. 30, 2022

Lessee Disclosure [Abstract]

Leases

8. Leases

We have operating lease agreements for laboratory, office and warehouse facilities in Seattle, Washington, Bothell, Washington, South San Francisco, California and New York City, New York. As of June 30, 2022, we were not party to any finance leases.

The following table reconciles our undiscounted operating lease cash flows to our operating lease liabilities, less current portion balance as of June 30, 2022 (in thousands):

2022 (excluding the six months ended June 30, 2022)	$	7,053
2023		13,964
2024		13,692
2025		14,098
2026		12,330
Thereafter		81,188
Total undiscounted lease payments		142,325
Less:
Imputed interest rate		(29,789	)
Tenant improvement receivables		(1,194	)
Total operating lease liabilities		111,342
Less: Current portion		(8,615	)
Operating lease liabilities, less current portion	$	102,727

During the six months ended June 30, 2022, cash paid for amounts included in the measurement of lease liabilities was $3.3 million, net of $4.0 million of cash received for tenant improvement allowances. Cash paid for amounts included in the measurement of lease liabilities was $3.5 million and cash received for tenant improvement allowances was $5.4 million during the six months ended June 30, 2021.

We previously entered into a $2.1 million letter of credit with one of our financial institutions in connection with one of our leases.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

Legal Proceedings

We are subject to claims and assessments from time to time in the ordinary course of business. We will accrue a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. We were not party to any material legal proceedings as of June 30, 2022.

Indemnification Agreements

In the ordinary course of business, we may provide indemnification of varying scope and terms to vendors, lessors, customers and other parties with respect to certain matters including, but not limited to, losses arising out of breach of our agreements with them or from intellectual property infringement claims made by third parties. In addition, we have entered into indemnification agreements with members of our board of directors and certain of our executive officers that will require us to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments that we could be required to make under these indemnification agreements is, in many cases, unlimited. We have not incurred any material costs as a result of such indemnifications and are not currently aware of any indemnification claims.

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Shareholders' Equity

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Shareholders' Equity

10. Shareholders’ Equity

Common Stock

Our common stock has no preferences or privileges and is not redeemable. Holders of our common stock are entitled to one vote for each share of common stock held. The holders of record of outstanding shares of common stock shall be entitled to receive, when, as and if declared, out of funds legally available, such cash and other dividends as may be declared from time to time.

As of June 30, 2022, we had reserved shares of common stock for the following:

Shares issuable upon the exercise of outstanding stock options granted	14,338,119
Shares issuable upon the vesting of outstanding restricted stock units granted and the maximum outstanding market-based restricted stock units eligible to be earned	6,044,821
Shares available for future grant under the 2019 Equity Incentive Plan	14,516,155
Shares available for future grant under the Employee Stock Purchase Plan	2,804,298
Total shares of common stock reserved for future issuance	37,703,393

Our 2019 Equity Incentive Plan (“2019 Plan”) provides for annual increases in the number of shares that may be issued under the 2019 Plan on January 1, 2020 and on each subsequent January 1, thereafter, by a number of shares equal to the lesser of (a) 5% of the number of shares of common stock issued and outstanding on the immediately preceding December 31, or (b) an amount determined by our board of directors.

Furthermore, our Employee Stock Purchase Plan (“ESPP”) provides for annual increases in the number of shares available for issuance under our ESPP on January 1, 2020 and on each January 1, thereafter, by a number of shares equal to the smallest of (a) 1% of the number of shares of common stock issued and outstanding on the immediately preceding December 31, or (b) an amount determined by our board of directors.

Our board of directors determined not to increase the 2019 Plan and ESPP reserves in 2022.

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Equity Incentive Plans

6 Months Ended

Jun. 30, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity Incentive Plans

11. Equity Incentive Plans

2009 Equity Incentive Plan

We adopted an equity incentive plan in 2009 (“2009 Plan”) that provided for the issuance of incentive and nonqualified common stock options and other share-based awards for employees, directors and consultants. Under the 2009 Plan, the exercise price for incentive and nonqualified stock options were not to be less than the fair market value of our common stock at the date of grant. Stock options granted under this plan expire no later than ten years from the grant date and vesting was established at the time of grant. Pursuant to the terms of the 2019 Plan, any shares subject to outstanding stock options originally granted under the 2009 Plan that terminate, expire or lapse for any reason without the delivery of shares to the holder thereof shall become available for issuance pursuant to awards granted under the 2019 Plan. While no shares are available for future issuance under the 2009 Plan, it continues to govern outstanding equity awards granted thereunder.

2019 Equity Incentive Plan

The 2019 Plan became effective immediately prior to the closing of our initial public offering in July 2019. The 2019 Plan provides for the issuance of awards in the form of stock options and other share-based awards for employees, directors and consultants. Under the 2019 Plan, the stock option exercise price per share shall not be less than the fair market value of a share of stock on the effective date of grant, as defined by the 2019 Plan, unless explicitly qualified under the provisions of Section 409A or Section 424(a) of the Internal Revenue Code of 1986. Additionally, unless otherwise specified, stock options granted under this plan expire no later than ten years from the grant date and vesting is established at the time of grant. Except for certain stock option and restricted stock unit grants made to non-employee directors, stock options and restricted stock units granted under the 2019 Plan generally vest over a four-year period, subject to continuous service through each applicable vesting date. As of June 30, 2022, we had 29,279,180 shares of common stock authorized for issuance under the 2019 Plan.

Changes in shares available for grant during the six months ended June 30, 2022 were as follows:

	Shares Available for Grant
Shares available for grant at December 31, 2021		22,299,923
Stock options and restricted stock units granted and the maximum market-based restricted stock units granted eligible to be earned		(10,460,587	)
Stock options and restricted stock units forfeited, cancelled or expired		2,676,819
Shares available for grant at June 30, 2022		14,516,155

Stock Options

Stock option activity under the 2009 Plan and 2019 Plan during the six months ended June 30, 2022 was as follows:

	Shares Subject to Outstanding Stock Options			Weighted-Average Exercise Price per Share		Aggregate Intrinsic Value (in thousands)
Stock options outstanding at December 31, 2021		12,778,984		$	19.72
Stock options granted		4,397,538			11.66
Stock options forfeited or cancelled		(1,240,578	)		29.13
Stock options expired		(367,736	)		32.41
Stock options exercised		(1,230,089	)		5.46
Stock options outstanding at June 30, 2022		14,338,119		$	17.33	$	9,550
Stock options vested and exercisable at June 30, 2022		6,985,837		$	13.90	$	8,807

The weighted-average remaining contractual life for stock options outstanding as of June 30, 2022 was 7.4 years. The weighted-average remaining contractual life for vested and exercisable stock options as of June 30, 2022 was 5.7 years.

Of the $20.5 million proceeds from the exercise of stock options included on the unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2021, $0.3 million related to options exercised prior to but settled during the six months ended June 30, 2021. As of June 30, 2021, there was $0.2 million in unsettled cash proceeds related to options exercised during the six months ended June 30, 2021.

Restricted Stock Units

Restricted stock unit activity under the 2019 Plan during the six months ended June 30, 2022 was as follows:

	Restricted Stock Units Outstanding			Weighted-Average Grant Date Fair Value per Share
Nonvested restricted stock units outstanding at December 31, 2021		1,211,191		$	37.41
Restricted stock units granted		5,568,815			11.66
Restricted stock units forfeited or cancelled		(1,068,505	)		16.80
Restricted stock units vested		(160,914	)		43.19
Nonvested restricted stock units outstanding at June 30, 2022		5,550,587		$	15.38

Market-Based Restricted Stock Units

In addition to the restricted stock units described above, our board of directors approved an award of market-based restricted stock units to our chief executive officer in March 2022. The shares of common stock that may be earned under the award, ranging from zero shares to 494,234 shares, are calculated based upon our total shareholder return during a three-year performance period as measured against that of the group of companies comprising the S&P Biotechnology Select Industry Index as of the grant date, subject to certain adjustments to such index group. Except as expressly provided in the terms of the award agreement, vesting is subject to our chief executive officer's continuous service through the end of the three-year performance period.

Grant Date Fair Value of Stock Options, Restricted Stock Units and Market-Based Restricted Stock Units Granted

The estimated grant date fair values of stock options granted during the six months ended June 30, 2022 and 2021 were estimated using the Black-Scholes option-pricing model with the following assumptions:

	Six Months Ended June 30,
	2022		2021
Fair value of common stock	$7.30 - $14.95		$34.41 - $66.50
Expected term (in years)	5.27 - 6.08		5.27 - 6.08
Risk-free interest rate	1.7% - 3.0%		0.5% - 1.1%
Expected volatility	68.2% - 71.0%		67.1% - 68.7%
Expected dividend yield		—		—

The determination of the grant date fair value of stock options granted using a Black-Scholes option-pricing model is affected by the fair value of our common stock, as well as assumptions regarding a number of variables that are complex, subjective and generally require significant judgment to determine. The valuation assumptions were determined as follows:

Fair value of common stock—The fair value of each share of common stock is based on the closing price of our common stock on the date of grant, or other relevant determination date, as reported on The Nasdaq Global Select Market.

Expected term—The expected term of stock options granted to employees and non-employee directors is determined using the “simplified” method, as illustrated in ASC Topic 718, Compensation—Stock Compensation, as we do not have sufficient exercise history to determine a better estimate of expected term. Under this approach, the expected term is based on the midpoint between the vesting date and the end of the contractual term of the stock option.

Risk-free interest rate—We utilize a risk-free interest rate in the option valuation model based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected terms of the stock options.

Expected volatility—As we do not have sufficient trading history for our common stock, expected volatility is based on the historical volatility of our publicly traded industry peers utilizing a period of time consistent with our estimate of expected term.

Expected dividend yield—We do not anticipate paying any cash dividends in the foreseeable future and, therefore, use an expected dividend yield of zero in the option valuation model.

The weighted-average grant date fair value per share of stock options granted during the six months ended June 30, 2022 and 2021 was $7.36 and $26.52, respectively.

The grant date fair value of restricted stock units granted is based on the closing price of our common stock on the date of grant, or other relevant determination date, as reported on The Nasdaq Global Select Market. The weighted-average grant date fair value per share of restricted stock units granted during the six months ended June 30, 2022 and 2021 was $11.66 and $42.93, respectively.

The grant date fair value of the market-based restricted stock units granted in March 2022 is $18.89 and was determined using a Monte Carlo valuation model, which uses assumptions such as volatility, risk-free interest rate and dividend estimated for the performance period. The related share-based compensation expense of $4.7 million is recognized on a straight-line basis over the three-year performance period, which is also the requisite service period. Attainment of the market condition and the number of shares earned and vested does not impact the related share-based compensation expense recognized. Share-based compensation expense will be reversed only if our chief executive officer does not provide continuous service through the performance period for reasons other than those expressly provided in the terms of the award.

The compensation cost related to stock options, restricted stock units and market-based restricted stock units for the three and six months ended June 30, 2022 and 2021, respectively, are included on the unaudited condensed consolidated statements of operations as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Cost of revenue	$	954	$	408	$	1,749	$	736
Research and development		4,643		3,791		8,988		6,674
Sales and marketing		3,584		3,302		6,813		5,797
General and administrative		4,999		3,748		9,491		6,526
Total share-based compensation expense	$	14,180	$	11,249	$	27,041	$	19,733

As of June 30, 2022, unrecognized share-based compensation expense and the remaining weighted-average recognition period were as follows:

	Unrecognized Share-Based Compensation Expense (in thousands)		Remaining Weighted-Average Recognition Period (in years)
Nonvested stock options	$	88,549		2.85
Nonvested restricted stock units		75,935		3.42
Nonvested market-based restricted stock units		4,165		2.68

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Restructuring

6 Months Ended

Jun. 30, 2022

Restructuring And Related Activities [Abstract]

Restructuring

12. Restructuring

In March 2022, we began implementing a restructuring plan to reduce operating costs and drive future growth aligned with the strategic reorganization of our business around our MRD and Immune Medicine market opportunities. Under this restructuring plan, we reduced our workforce by approximately 100 employees.

We incurred aggregate restructuring costs of $2.0 million, all of which was recognized in the six months ended June 30, 2022. These costs primarily related to one-time termination benefits and ongoing benefit arrangements, both of which included severance payments and extended benefits coverage support and were contingent upon the impacted employees’ execution and non-revocation of separation agreements. Our aggregate restructuring costs also included certain contract termination costs.

The activities related to our reduction in workforce were primarily completed in March 2022 and the $2.0 million aggregate restructuring costs were paid as of June 30, 2022.

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Net Loss Per Share Attributable to Adaptive Biotechnologies Corporation Common Shareholders

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Net Loss Per Share Attributable to Adaptive Biotechnologies Corporation Common Shareholders

13. Net Loss Per Share Attributable to Adaptive Biotechnologies Corporation Common Shareholders

The following table sets forth the computation of the basic and diluted net loss per share attributable to our common shareholders for the three and six months ended June 30, 2022 and 2021, respectively (in thousands, except share and per share amounts):

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Net loss attributable to Adaptive Biotechnologies Corporation	$	(52,046	)	$	(49,301	)	$	(114,782	)	$	(89,943	)
Weighted-average shares used in computing net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted		142,363,589			140,359,317			142,032,261			139,667,380
Net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted	$	(0.37	)	$	(0.35	)	$	(0.81	)	$	(0.64	)

Given the loss position for all periods presented, basic net loss per share attributable to our common shareholders is the same as diluted net loss per share attributable to our common shareholders, as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. The following weighted-average common stock equivalents were excluded from the calculation of diluted net loss per share attributable to our common shareholders for the three and six months ended June 30, 2022 and 2021, respectively, as they had an anti-dilutive effect:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Stock options outstanding		14,693,276		13,204,775		13,978,339		13,360,000
Nonvested restricted stock units		5,364,447		676,411		3,983,640		458,707
Maximum nonvested market-based restricted stock units eligible to be earned		494,234		—		324,938		—
Common stock warrant outstanding		—		—		—		17,282
Total		20,551,957		13,881,186		18,286,917		13,835,989

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of Consolidation

The unaudited condensed consolidated financial statements include the accounts of Adaptive Biotechnologies Corporation, our wholly-owned subsidiary and Digital Biotechnologies, Inc., a corporate subsidiary we have 70% ownership interest in. The remaining interest in Digital Biotechnologies, Inc., held by certain of our related parties and their related family trusts, are shown in the unaudited condensed consolidated financial statements as noncontrolling interest. All intercompany transactions and balances between Adaptive Biotechnologies Corporation, our wholly-owed subsidiary and Digital Biotechnologies, Inc. have been eliminated upon consolidation.

Use of Estimates

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the periods presented. We base our estimates on historical experience and other relevant assumptions that we believe to be reasonable under the circumstances. Estimates are used in several areas including, but not limited to, estimates of progress to date for certain performance obligations and the transaction price for certain contracts with customers, share-based compensation, including the fair value of stock, the provision for income taxes, including related reserves, and goodwill, among others. These estimates generally involve complex issues and require judgments, involve the analysis of historical results and prediction of future trends, can require extended periods of time to resolve and are subject to change from period to period. Actual results may differ materially from management’s estimates.

Unaudited Interim Condensed Consolidated Financial Statements

Unaudited Interim Condensed Consolidated Financial Statements

In our opinion, the accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information. These unaudited condensed consolidated financial statements include all adjustments necessary to fairly state our financial position and the results of our operations and cash flows for interim periods in accordance with GAAP. All such adjustments were of a normal, recurring nature. Interim-period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period.

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 15, 2022.

Reclassification

Reclassification

We previously disclosed revenue bifurcated into sequencing and development financial statement captions. Beginning with the reporting period ended March 31, 2022, we changed how we classify revenue and now present total revenue on the unaudited condensed consolidated statements of operations. See Note 3, Revenue for additional disaggregation of revenue under our Immune Medicine and MRD market opportunities.

Restricted Cash

Restricted Cash

We had a restricted cash balance of $2.4 million and $2.1 million as of June 30, 2022 and December 31, 2021, respectively. Our restricted cash primarily relates to certain balances we are required to maintain under lease arrangements for some of our property and facility leases.

Concentrations of Risk

Concentrations of Risk

We are subject to a concentration of risk from a limited number of suppliers, or in certain cases single suppliers, for some of our laboratory instruments and materials. This risk is managed by targeting a quantity of surplus stock.

Cash, cash equivalents and marketable securities are financial instruments that potentially subject us to concentrations of credit risk. We invest in money market funds, United States (“U.S.”) government debt securities, U.S. government agency securities, commercial paper and corporate bonds with high-quality accredited financial institutions.

Significant customers are those that represent more than 10% of our total revenue or accounts receivable, net balances for the periods and as of each condensed consolidated balance sheet date presented, respectively.

For each significant customer, revenue as a percentage of total revenue for the periods presented and accounts receivable, net as a percentage of total accounts receivable, net as of the dates presented were as follows:

	Revenue				Accounts Receivable, Net
	Three Months Ended June 30,		Six Months Ended June 30,		June 30,	December 31,
	2022	2021	2022	2021	2022	2021
Customer B	12.3%	*%	14.9%	*%	23.6%	11.3%
Genentech and Roche Group	34.8	46.0	34.3	44.1	*	*
* less than 10%

Revenue Recognition

Revenue Recognition

We recognize revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606 (“ASC 606”), Revenue from Contracts with Customers. Under ASC 606, for all revenue-generating contracts, we perform the following steps to determine the amount of revenue to be recognized: (1) identify the contract or contracts; (2) determine whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (3) measure the transaction price, including the constraint on variable consideration; (4) allocate the transaction price to the performance obligations based on estimated selling prices; and (5) recognize revenue when (or as) we satisfy each performance obligation.

We derive revenue by providing diagnostic and research services in our Immune Medicine and MRD market opportunities. Our Immune Medicine revenue consists of revenue generated from (1) providing sample testing services for our commercial research product, immunoSEQ, to biopharmaceutical customers and academic institutions; (2) providing our T-Detect COVID tests to clinical customers; and (3) our collaboration agreements with Genentech and other biopharmaceutical customers in areas of drug and target discovery. 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.

For research customers who utilize either immunoSEQ or our MRD services, contracts typically include an amount billed in advance of services (“upfront”) and subsequent billings as sample results are delivered to the customer. Upfront amounts received are recorded as deferred revenue, which we recognize as revenue upon satisfaction of performance obligations. We have identified two typical performance obligations under the terms of our research service contracts: (1) the delivery of our immunoSEQ or MRD data for customer provided samples; and (2) related data analysis. We recognize revenue for both identified performance obligations as sample results are delivered to the customer. In periods where our sample estimates are reduced or a customer project is cancelled and, in either case, we have remaining related deferred revenue, we recognize revenue using a cumulative catch-up approach based on the proportion of samples delivered to date relative to the remaining samples expected to be delivered.

For agreements where we provide our clonoSEQ report to ordering physicians, we have identified one performance obligation: the delivery of a clonoSEQ report. We bill and receive payments for these transactions from medical institutions and commercial and government third-party payors. As payment from the respective payors may vary based on the various reimbursement rates and patient responsibilities, we consider the transaction price to be variable and record an estimate of the transaction price, subject to the constraint for variable consideration, as revenue at the time of delivery. The estimate of transaction price is based on historical and expected reimbursement rates with the various payors, which are monitored in subsequent periods and adjusted as necessary based on actual collection experience.

Regarding our clonoSEQ coverage under Medicare, we bill an episode of treatment when we deliver the first eligible test report. This billing contemplates all necessary tests required during a patient’s treatment cycle, which is currently estimated at approximately four tests per patient, including the initial sequence identification test. Revenue recognition commences at the time the initial billable test report is delivered and is based upon cumulative tests delivered to date. We estimate the number of tests we expect to deliver over a patient’s treatment cycle based on historical testing frequencies for patients by indication. These estimates are subject to change as we develop more information about utilization over time. Any unrecognized revenue from the initial billable test is recorded as deferred revenue and is recognized either as we deliver our estimate of the remaining tests in a patient’s treatment cycle or when the likelihood becomes remote that a patient will receive additional testing.

The contract transaction price for agreements we enter into with biopharmaceutical customers to further develop and commercialize their therapeutics may consist of a combination of non-refundable upfront fees, separately priced MRD testing fees and milestone fees earned upon our customers’ achievement of certain regulatory approvals. Depending on the contract, these agreements include single or multiple performance obligations. Such performance obligations include providing services to support our customers’ therapeutic development efforts, including regulatory support for our technology intended to be utilized as part of our customers’ registrational trials, developing analytical plans for our data, participating on joint research committees and assisting in completing a regulatory submission and providing MRD testing services related to customer-provided samples for their regulatory submissions. Generally, the support services, excluding MRD testing services, are not distinct within the context of the contract and thus are accounted for as a single performance obligation. The transaction price allocated to the respective performance obligations is estimated using an adjusted market assessment approach for the regulatory support services and a standalone selling price for the estimated MRD testing services. At contract inception, we fully constrain any consideration related to regulatory milestones, as the achievement of such milestones is subject to third-party regulatory approval and the customers’ own submission decision-making. When MRD sample testing services are separately priced customer options, we assess if a material right exists and, if not, the customer option to purchase additional MRD sample testing services is not considered part of the contract. We recognize revenue related to MRD testing services over time using an output method based on the proportion of sample results delivered relative to the total amount of sample results expected to be delivered, when expected to be a faithful depiction of progress. We use the same method to recognize the regulatory support services. When an output method based on the proportion of sample results delivered is not expected to be a faithful depiction of progress, we utilize an input method using a cost-based model based on estimates of effort completed. Selecting the measure of progress and estimating progress to date requires significant judgment. Except for any non-refundable upfront fees, the other forms of compensation represent variable consideration. Variable consideration related to regulatory milestones is estimated using the most likely amount method, where variable consideration is constrained until it is probable that a significant reversal of cumulative revenue recognized will not occur. Milestone payments for regulatory approvals, which are not within our customers’ control, are not considered probable of being achieved until those approvals are received. Determining whether regulatory milestone payments are probable is an area that requires significant judgment. In making this assessment, we evaluate scientific, clinical, regulatory and other risks, as well as the level of effort and investment required to achieve the respective milestone.

Net Loss Per Share Attributable to Adaptive Biotechnologies Corporation Common Shareholders

Net Loss Per Share Attributable to Adaptive Biotechnologies Corporation Common Shareholders

We calculate basic net loss per share attributable to our common shareholders by dividing net loss attributable to us by our weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share attributable to our common shareholders is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, outstanding common stock warrants, outstanding stock options, nonvested restricted stock units and the maximum nonvested market-based restricted stock units eligible to be earned are considered common stock equivalents but have been excluded from the calculation of diluted net loss per share attributable to our common shareholders, as their effect is anti-dilutive.

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Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Schedule of Concentrations of Risk Percentage

For each significant customer, revenue as a percentage of total revenue for the periods presented and accounts receivable, net as a percentage of total accounts receivable, net as of the dates presented were as follows:

	Revenue				Accounts Receivable, Net
	Three Months Ended June 30,		Six Months Ended June 30,		June 30,	December 31,
	2022	2021	2022	2021	2022	2021
Customer B	12.3%	*%	14.9%	*%	23.6%	11.3%
Genentech and Roche Group	34.8	46.0	34.3	44.1	*	*
* less than 10%

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Revenue (Tables)

6 Months Ended

Jun. 30, 2022

Revenue From Contract With Customer [Abstract]

Schedule of Disaggregated Revenue

The following table presents our disaggregated revenue for the periods presented (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Immune Medicine revenue
Service revenue	$	7,296	$	5,405	$	14,409	$	9,453
Collaboration revenue		15,082		17,634		28,785		33,691
Total Immune Medicine revenue		22,378		23,039		43,194		43,144
MRD revenue
Service revenue		20,282		13,966		35,086		25,303
Regulatory milestone revenue		1,000		1,500		4,000		8,500
Total MRD revenue		21,282		15,466		39,086		33,803
Total revenue	$	43,660	$	38,505	$	82,280	$	76,947

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Deferred Revenue (Tables)

6 Months Ended

Jun. 30, 2022

Revenue From Contract With Customer [Abstract]

Schedule of Changes in Deferred Revenue

Changes in deferred revenue during the six months ended June 30, 2022 were as follows (in thousands):

Deferred revenue balance at December 31, 2021	$	179,210
Additions to deferred revenue during the period		19,379
Revenue recognized during the period		(43,553	)
Deferred revenue balance at June 30, 2022	$	155,036

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables set forth the fair value of financial assets as of June 30, 2022 and December 31, 2021 that were measured at fair value on a recurring basis (in thousands):

	June 30, 2022
	Level 1		Level 2		Level 3		Total
Financial assets
Money market funds	$	70,358	$	—	$	—	$	70,358
U.S. government debt securities		—		334,857		—		334,857
Corporate bonds		—		39,397		—		39,397
Total financial assets	$	70,358	$	374,254	$	—	$	444,612

	December 31, 2021
	Level 1		Level 2		Level 3		Total
Financial assets
Money market funds	$	131,946	$	—	$	—	$	131,946
U.S. government debt securities		—		391,145		—		391,145
Corporate bonds		—		39,996		—		39,996
Total financial assets	$	131,946	$	431,141	$	—	$	563,087

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Investments (Tables)

6 Months Ended

Jun. 30, 2022

Investments Debt And Equity Securities [Abstract]

Schedule of Available-for-sale Investments

Available-for-sale investments consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands):

	June 30, 2022
	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
Short-term marketable securities
U.S. government debt securities	$	271,337	$	—	$	(3,408	)	$	267,929
Corporate bonds		39,662		—		(265	)		39,397
Total short-term marketable securities	$	310,999	$	—	$	(3,673	)	$	307,326
Long-term marketable securities
U.S. government debt securities	$	69,055	$	—	$	(2,127	)	$	66,928
Total long-term marketable securities	$	69,055	$	—	$	(2,127	)	$	66,928

	December 31, 2021
	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
Short-term marketable securities
U.S. government debt securities	$	186,752	$	4	$	(109	)	$	186,647
Corporate bonds		27,363		—		(14	)		27,349
Total short-term marketable securities	$	214,115	$	4	$	(123	)	$	213,996
Long-term marketable securities
U.S. government debt securities	$	205,472	$	—	$	(974	)	$	204,498
Corporate bonds		12,691		—		(44	)		12,647
Total long-term marketable securities	$	218,163	$	—	$	(1,018	)	$	217,145

Schedule of Gross Unrealized Holding Losses and Fair Value for Investments in Unrealized Loss Position

The following table presents the gross unrealized holding losses and fair value for investments in an unrealized loss position, and the length of time individual securities have been in a continuous loss position, as of June 30, 2022 (in thousands):

	Less Than 12 Months					12 Months Or Greater
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. government debt securities	$	334,857	$	(5,535	)	$	—	$	—
Corporate bonds		39,397		(265	)		—		—
Total available-for-sale securities	$	374,254	$	(5,800	)	$	—	$	—

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets Subject to Amortization

Intangible assets subject to amortization as of June 30, 2022 and December 31, 2021 consisted of the following (in thousands):

	June 30, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Acquired developed technology	$	20,000	$	(12,464	)	$	7,536
Purchased intellectual property		325		(177	)		148
Balance at June 30, 2022	$	20,325	$	(12,641	)	$	7,684

	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Acquired developed technology	$	20,000	$	(11,638	)	$	8,362
Purchased intellectual property		325		(161	)		164
Balance at December 31, 2021	$	20,325	$	(11,799	)	$	8,526

Schedule of Future Amortization Expense for Intangible Assets

As of June 30, 2022, expected future amortization expense for intangible assets was as follows (in thousands):

2022 (excluding the six months ended June 30, 2022)	$	857
2023		1,699
2024		1,703
2025		1,699
2026		1,699
Thereafter		27
Total future amortization expense	$	7,684

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Leases (Tables)

6 Months Ended

Jun. 30, 2022

Lessee Disclosure [Abstract]

Summary of Reconciles Undiscounted Operating Lease Cash Flows

The following table reconciles our undiscounted operating lease cash flows to our operating lease liabilities, less current portion balance as of June 30, 2022 (in thousands):

2022 (excluding the six months ended June 30, 2022)	$	7,053
2023		13,964
2024		13,692
2025		14,098
2026		12,330
Thereafter		81,188
Total undiscounted lease payments		142,325
Less:
Imputed interest rate		(29,789	)
Tenant improvement receivables		(1,194	)
Total operating lease liabilities		111,342
Less: Current portion		(8,615	)
Operating lease liabilities, less current portion	$	102,727

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Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Summary of Reserved Shares of Common Stock

As of June 30, 2022, we had reserved shares of common stock for the following:

Shares issuable upon the exercise of outstanding stock options granted	14,338,119
Shares issuable upon the vesting of outstanding restricted stock units granted and the maximum outstanding market-based restricted stock units eligible to be earned	6,044,821
Shares available for future grant under the 2019 Equity Incentive Plan	14,516,155
Shares available for future grant under the Employee Stock Purchase Plan	2,804,298
Total shares of common stock reserved for future issuance	37,703,393

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Equity Incentive Plans (Tables)

6 Months Ended

Jun. 30, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Changes in Shares Available for Grant

Changes in shares available for grant during the six months ended June 30, 2022 were as follows:

	Shares Available for Grant
Shares available for grant at December 31, 2021		22,299,923
Stock options and restricted stock units granted and the maximum market-based restricted stock units granted eligible to be earned		(10,460,587	)
Stock options and restricted stock units forfeited, cancelled or expired		2,676,819
Shares available for grant at June 30, 2022		14,516,155

Summary of Stock Option Activity Under 2009 Plan and 2019 Plan

Stock option activity under the 2009 Plan and 2019 Plan during the six months ended June 30, 2022 was as follows:

	Shares Subject to Outstanding Stock Options			Weighted-Average Exercise Price per Share		Aggregate Intrinsic Value (in thousands)
Stock options outstanding at December 31, 2021		12,778,984		$	19.72
Stock options granted		4,397,538			11.66
Stock options forfeited or cancelled		(1,240,578	)		29.13
Stock options expired		(367,736	)		32.41
Stock options exercised		(1,230,089	)		5.46
Stock options outstanding at June 30, 2022		14,338,119		$	17.33	$	9,550
Stock options vested and exercisable at June 30, 2022		6,985,837		$	13.90	$	8,807

Summary of Restricted Stock Unit Activity

Restricted stock unit activity under the 2019 Plan during the six months ended June 30, 2022 was as follows:

	Restricted Stock Units Outstanding			Weighted-Average Grant Date Fair Value per Share
Nonvested restricted stock units outstanding at December 31, 2021		1,211,191		$	37.41
Restricted stock units granted		5,568,815			11.66
Restricted stock units forfeited or cancelled		(1,068,505	)		16.80
Restricted stock units vested		(160,914	)		43.19
Nonvested restricted stock units outstanding at June 30, 2022		5,550,587		$	15.38

Summary of Estimated Grant Date Fair Value of Stock Options Granted

The estimated grant date fair values of stock options granted during the six months ended June 30, 2022 and 2021 were estimated using the Black-Scholes option-pricing model with the following assumptions:

	Six Months Ended June 30,
	2022		2021
Fair value of common stock	$7.30 - $14.95		$34.41 - $66.50
Expected term (in years)	5.27 - 6.08		5.27 - 6.08
Risk-free interest rate	1.7% - 3.0%		0.5% - 1.1%
Expected volatility	68.2% - 71.0%		67.1% - 68.7%
Expected dividend yield		—		—

Summary of Compensation Costs Related to Stock Options and RSUs Included on Unaudited Condensed Consolidated Statements of Operations

The compensation cost related to stock options, restricted stock units and market-based restricted stock units for the three and six months ended June 30, 2022 and 2021, respectively, are included on the unaudited condensed consolidated statements of operations as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Cost of revenue	$	954	$	408	$	1,749	$	736
Research and development		4,643		3,791		8,988		6,674
Sales and marketing		3,584		3,302		6,813		5,797
General and administrative		4,999		3,748		9,491		6,526
Total share-based compensation expense	$	14,180	$	11,249	$	27,041	$	19,733

Schedule of Unrecognized Share-Based Compensation Expense and the Remaining Weighted-Average Recognition Period

As of June 30, 2022, unrecognized share-based compensation expense and the remaining weighted-average recognition period were as follows:

	Unrecognized Share-Based Compensation Expense (in thousands)		Remaining Weighted-Average Recognition Period (in years)
Nonvested stock options	$	88,549		2.85
Nonvested restricted stock units		75,935		3.42
Nonvested market-based restricted stock units		4,165		2.68

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Net Loss Per Share Attributable to Adaptive Biotechnologies Corporation Common Shareholders (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Computation of the Basic and Diluted Net Loss Per Share Attributable to Common Shareholders

The following table sets forth the computation of the basic and diluted net loss per share attributable to our common shareholders for the three and six months ended June 30, 2022 and 2021, respectively (in thousands, except share and per share amounts):

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Net loss attributable to Adaptive Biotechnologies Corporation	$	(52,046	)	$	(49,301	)	$	(114,782	)	$	(89,943	)
Weighted-average shares used in computing net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted		142,363,589			140,359,317			142,032,261			139,667,380
Net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted	$	(0.37	)	$	(0.35	)	$	(0.81	)	$	(0.64	)

Weighted-Average Common Stock Equivalents were Excluded From Calculation of Diluted Net Loss Per Share

The following weighted-average common stock equivalents were excluded from the calculation of diluted net loss per share attributable to our common shareholders for the three and six months ended June 30, 2022 and 2021, respectively, as they had an anti-dilutive effect:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Stock options outstanding		14,693,276		13,204,775		13,978,339		13,360,000
Nonvested restricted stock units		5,364,447		676,411		3,983,640		458,707
Maximum nonvested market-based restricted stock units eligible to be earned		494,234		—		324,938		—
Common stock warrant outstanding		—		—		—		17,282
Total		20,551,957		13,881,186		18,286,917		13,835,989

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Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Significant Accounting Policies [Line Items]
Restricted cash	$ 2,446	$ 2,138
Digital Biotechnologies Inc
Significant Accounting Policies [Line Items]
Ownership interest percentage	70.00%

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Significant Accounting Policies - Schedule of Concentrations of Risk Percentage (Details) - Customer Concentration Risk	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Customer B | Revenue
Significant Accounting Policies [Line Items]
Concentration risk, percentage	12.30%		14.90%
Customer B | Accounts Receivable, Net
Significant Accounting Policies [Line Items]
Concentration risk, percentage			23.60%		11.30%
Genentech Inc And Roche Group | Revenue
Significant Accounting Policies [Line Items]
Concentration risk, percentage	34.80%	46.00%	34.30%	44.10%

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Revenue - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation Of Revenue [Line Items]
Revenue	$ 43,660	$ 38,505	$ 82,280	$ 76,947
Immune Medicine Revenue
Disaggregation Of Revenue [Line Items]
Revenue	22,378	23,039	43,194	43,144
Immune Medicine Revenue | Service Revenue
Disaggregation Of Revenue [Line Items]
Revenue	7,296	5,405	14,409	9,453
Immune Medicine Revenue | Collaboration Revenue
Disaggregation Of Revenue [Line Items]
Revenue	15,082	17,634	28,785	33,691
MRD Revenue
Disaggregation Of Revenue [Line Items]
Revenue	21,282	15,466	39,086	33,803
MRD Revenue | Service Revenue
Disaggregation Of Revenue [Line Items]
Revenue	20,282	13,966	35,086	25,303
MRD Revenue | Regulatory Milestone Revenue
Disaggregation Of Revenue [Line Items]
Revenue	$ 1,000	$ 1,500	$ 4,000	$ 8,500

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Revenue - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 28, 2019	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation Of Revenue [Line Items]
Revenue from collaboration agreement		$ 43,660,000	$ 38,505,000	$ 82,280,000	$ 76,947,000
Medicare Reimbursements
Disaggregation Of Revenue [Line Items]
Revenue from collaboration agreement		1,400,000	3,100,000	2,800,000	4,100,000
Medicare Reimbursements | Immune Medicine Service Revenue
Disaggregation Of Revenue [Line Items]
Revenue from collaboration agreement				200,000	100,000
Medicare Reimbursements | MRD Service Revenue
Disaggregation Of Revenue [Line Items]
Revenue from collaboration agreement				2,600,000	4,000,000.0
M R D Development Agreements | Maximum
Disaggregation Of Revenue [Line Items]
Additional milestone payment receivable		355,500,000		355,500,000
Genentech Collaboration Agreement
Disaggregation Of Revenue [Line Items]
Revenue from collaboration agreement		13,800,000	$ 17,200,000	26,000,000.0	$ 32,800,000
Non-refundable upfront payments received	$ 300,000,000.0			$ 300,000,000.0
Genentech Collaboration Agreement | Maximum
Disaggregation Of Revenue [Line Items]
Revenue recognition expected period				8 years
Genentech Collaboration Agreement | Maximum | Regulatory Milestones
Disaggregation Of Revenue [Line Items]
Expected revenue through milestone payments		75,000,000.0		$ 75,000,000.0
Genentech Collaboration Agreement | Maximum | Development Milestones
Disaggregation Of Revenue [Line Items]
Expected revenue through milestone payments		300,000,000.0		300,000,000.0
Genentech Collaboration Agreement | Maximum | Commercial Milestones
Disaggregation Of Revenue [Line Items]
Expected revenue through milestone payments		1,430,000,000.0		1,430,000,000.0
Genentech Collaboration Agreement | Minimum
Disaggregation Of Revenue [Line Items]
Expected revenue through milestone payments		$ 1,800,000,000		$ 1,800,000,000
Revenue recognition expected period				7 years

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Deferred Revenue - Additional Information (Details) - USD ($) $ in Thousands		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Disaggregation Of Revenue [Line Items]
Current deferred revenue	$ 80,914	$ 80,914	$ 80,460
Non-current deferred revenue	74,122	74,122	98,750
Revenue recognized	34,500	(43,553)
Development Revenue | Genentech, Inc.
Disaggregation Of Revenue [Line Items]
Current deferred revenue	53,900	53,900	56,100
Non-current deferred revenue	$ 70,100	$ 70,100	$ 94,000

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Deferred Revenue - Additional Information (Details1) - Genentech, Inc. - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-07-01	Jun. 30, 2022
Disaggregation Of Revenue [Line Items]
Deferred revenue, expected to be recognized	12 months
Minimum
Disaggregation Of Revenue [Line Items]
Deferred revenue, expected to be recognized	4 years
Maximum
Disaggregation Of Revenue [Line Items]
Deferred revenue, expected to be recognized	5 years

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Deferred Revenue - Schedule of Changes in Deferred Revenue (Details) - USD ($) $ in Thousands		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Revenue From Contract With Customer [Abstract]
Deferred revenue balance at December 31, 2021		$ 179,210
Additions to deferred revenue during the period		19,379
Revenue recognized during the period	$ 34,500	(43,553)
Deferred revenue balance at June 30, 2022	$ 155,036	$ 155,036

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Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring basis - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financial assets
Total financial assets	$ 444,612	$ 563,087
Level 1
Financial assets
Total financial assets	70,358	131,946
Level 2
Financial assets
Total financial assets	374,254	431,141
Money Market Funds
Financial assets
Total financial assets	70,358	131,946
Money Market Funds | Level 1
Financial assets
Total financial assets	70,358	131,946
U.S. Government Debt Securities
Financial assets
Total financial assets	334,857	391,145
U.S. Government Debt Securities | Level 2
Financial assets
Total financial assets	334,857	391,145
Corporate Bonds
Financial assets
Total financial assets	39,397	39,996
Corporate Bonds | Level 2
Financial assets
Total financial assets	$ 39,397	$ 39,996

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Investments - Schedule of Available-for-sale Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Short-Term Marketable Securities
Schedule of Available-for-Sale Securities [Line Items]
Amortized Cost	$ 310,999	$ 214,115
Unrealized Gain		4
Unrealized Loss	(3,673)	(123)
Estimated Fair Value	307,326	213,996
Long-Term Marketable Securities
Schedule of Available-for-Sale Securities [Line Items]
Amortized Cost	69,055	218,163
Unrealized Loss	(2,127)	(1,018)
Estimated Fair Value	66,928	217,145
U.S. Government Debt Securities | Short-Term Marketable Securities
Schedule of Available-for-Sale Securities [Line Items]
Amortized Cost	271,337	186,752
Unrealized Gain		4
Unrealized Loss	(3,408)	(109)
Estimated Fair Value	267,929	186,647
U.S. Government Debt Securities | Long-Term Marketable Securities
Schedule of Available-for-Sale Securities [Line Items]
Amortized Cost	69,055	205,472
Unrealized Loss	(2,127)	(974)
Estimated Fair Value	66,928	204,498
Corporate Bonds | Short-Term Marketable Securities
Schedule of Available-for-Sale Securities [Line Items]
Amortized Cost	39,662	27,363
Unrealized Loss	(265)	(14)
Estimated Fair Value	$ 39,397	27,349
Corporate Bonds | Long-Term Marketable Securities
Schedule of Available-for-Sale Securities [Line Items]
Amortized Cost		12,691
Unrealized Loss		(44)
Estimated Fair Value		$ 12,647

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Investments - Additional Information (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Prepaid Expenses and Other Current Assets
Schedule of Available-for-Sale Securities [Line Items]
Accrued interest receivable	$ 0.8	$ 1.4

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Investments - Schedule of Gross Unrealized Holding Losses and Fair Value for Investments in Unrealized Loss Position (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Schedule of Available-for-Sale Securities [Line Items]
Less than 12 months, Fair value	$ 374,254
Less than 12 months, Unrealized loss	(5,800)
U.S. Government Debt Securities
Schedule of Available-for-Sale Securities [Line Items]
Less than 12 months, Fair value	334,857
Less than 12 months, Unrealized loss	(5,535)
Corporate Bonds
Schedule of Available-for-Sale Securities [Line Items]
Less than 12 months, Fair value	39,397
Less than 12 months, Unrealized loss	$ (265)

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Goodwill and Intangible Assets - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2015
Goodwill [Line Items]
Goodwill	$ 118,972,000	$ 118,972,000	$ 0
Purchased Intellectual Property
Goodwill [Line Items]
Amortization period of intangible assets	4 years 6 months

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Goodwill and Intangible Assets - Summary of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 20,325	$ 20,325
Accumulated Amortization	(12,641)	(11,799)
Net Carrying Amount	7,684	8,526
Acquired Developed Technology
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	20,000	20,000
Accumulated Amortization	(12,464)	(11,638)
Net Carrying Amount	7,536	8,362
Purchased Intellectual Property
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	325	325
Accumulated Amortization	(177)	(161)
Net Carrying Amount	$ 148	$ 164

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Goodwill and Intangible Assets - Schedule of Future Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
2022 (excluding the six months ended June 30, 2022)	$ 857
2023	1,699
2024	1,703
2025	1,699
2026	1,699
Thereafter	27
Net Carrying Amount	$ 7,684	$ 8,526

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Leases - Summary of Reconciles Undiscounted Operating Lease Cash Flows (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Lessee Disclosure [Abstract]
2022 (excluding the six months ended June 30, 2022)	$ 7,053
2023	13,964
2024	13,692
2025	14,098
2026	12,330
Thereafter	81,188
Total undiscounted lease payments	142,325
Imputed interest rate	(29,789)
Tenant improvement receivables	(1,194)
Total operating lease liabilities	111,342
Less: Current portion	(8,615)	$ (5,055)
Operating lease liabilities, less current portion	$ 102,727	$ 106,685

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Leases - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Lessee Disclosure [Abstract]
Cash paid for amounts included in measurement of lease liabilities, net of tenant improvement allowances received	$ 3.3	$ 3.5
Cash received for tenant improvement allowances	4.0	$ 5.4
Letter of credit	$ 2.1

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Shareholders' Equity - Additional Information (Details) - Vote		6 Months Ended
	Jan. 01, 2020	Jun. 30, 2022
Class Of Stock [Line Items]
Common stock voting rights description		Holders of our common stock are entitled to one vote for each share of common stock held
Number of vote for each share		1
Maximum | Employee Stock Purchase Plan
Class Of Stock [Line Items]
Percentage of annual increases in number of shares	1.00%
2019 Equity Incentive Plan | Maximum
Class Of Stock [Line Items]
Percentage of annual increases in number of shares	5.00%

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Shareholders' Equity - Summary of Reserved Shares of Common Stock (Details)	Jun. 30, 2022 shares
Class Of Stock [Line Items]
Total shares of common stock reserved for future issuance	37,703,393
Shares Issuable Upon the Exercise of Outstanding Stock Options Granted
Class Of Stock [Line Items]
Total shares of common stock reserved for future issuance	14,338,119
Shares Issuable Upon the Vesting of Outstanding Restricted Stock Units and the Maximum Outstanding Market-based Restricted Stock Units Granted
Class Of Stock [Line Items]
Total shares of common stock reserved for future issuance	6,044,821
Common Stock Options Granted | 2019 Equity Incentive Plan
Class Of Stock [Line Items]
Total shares of common stock reserved for future issuance	14,516,155
Common Stock Options Granted | Employee Stock Purchase Plan
Class Of Stock [Line Items]
Total shares of common stock reserved for future issuance	2,804,298

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Equity Incentive Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average remaining contractual life stock options outstanding			7 years 4 months 24 days
Weighted-average remaining contractual life vested and exercisable stock options			5 years 8 months 12 days
Proceeds from exercise of stock options			$ 6,739	$ 20,513
Proceeds from settlement of stock option exercised in prior periods				300
Unsettled cash proceeds related to stock options exercised		$ 200		$ 200
Grant date fair value			$ 7.36	$ 26.52
Recognized share-based compensation expense	$ 14,180	$ 11,249	$ 27,041	$ 19,733
Option Valuation Model
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected dividend yield			0.00%
Monte Carlo Valuation Model
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Recognized share-based compensation expense			$ 4,700
Requisite service period term			3 years
Market-Based Restricted Stock Units | Monte Carlo Valuation Model
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant date fair value			$ 18.89
Market-Based Restricted Stock Units | Chief Executive Officer
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance period term			3 years
Market-Based Restricted Stock Units | Minimum | Chief Executive Officer
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock that may be earned under the award	0		0
Market-Based Restricted Stock Units | Maximum | Chief Executive Officer
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock that may be earned under the award	494,234		494,234
2009 Equity Incentive Plan | Grant
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for future issuance	0		0
2009 Equity Incentive Plan | Grant | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Option expiration period			10 years
2019 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for future issuance	14,516,155		14,516,155		22,299,923
2019 Equity Incentive Plan | Grant
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares authorized for issuance	29,279,180		29,279,180
2019 Equity Incentive Plan | Grant | Non Employee Directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			4 years
2019 Equity Incentive Plan | Grant | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Option expiration period			10 years
2019 Equity Incentive Plan | Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant date fair value			$ 11.66	$ 42.93

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Equity Incentive Plans - Summary of Changes in Shares Available for Grant (Details) - 2019 Equity Incentive Plan	6 Months Ended
	Jun. 30, 2022 shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Available for Grant, Outstanding, Beginning Balance	22,299,923
Stock options and restricted stock units granted and the maximum market-based restricted stock units granted eligible to be earned	(10,460,587)
Shares Available for Grant,Stock Options and restricted stock units forfeited, cancelled or expired	2,676,819
Shares Available for Grant, Outstanding, Ending Balance	14,516,155

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Equity Incentive Plans - Summary of Stock Option Activity Under 2009 Plan and 2019 Plan (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Shares Subject to Outstanding Stock Options, Stock Options outstanding, Beginning Balance	12,778,984
Shares Subject to Outstanding Stock Options, Stock Options granted	4,397,538
Shares Subject to Outstanding Stock Options, Stock Options forfeited or cancelled	(1,240,578)
Shares Subject to Outstanding Stock Options, Stock Options expired	(367,736)
Shares Subject to Outstanding Stock Options, Stock Options exercised	(1,230,089)
Shares Subject to Outstanding Stock Options, Stock Options outstanding, Ending Balance	14,338,119
Shares Subject to Outstanding Stock Options, Stock Options vested and exercisable	6,985,837
Weighted Average Exercise Price per Share, Stock Options outstanding, Beginning Balance	$ 19.72
Weighted Average Exercise Price per Share, Stock Options granted	11.66
Weighted Average Exercise Price per Share, Stock Options forfeited or cancelled	29.13
Weighted Average Exercise Price per Share, Stock Options expired	32.41
Weighted Average Exercise Price per Share, Stock Options exercised	5.46
Weighted Average Exercise Price per Share, Stock Options outstanding, Ending Balance	17.33
Weighted Average Exercise Price per Share, Stock Options vested and exercisable	$ 13.90
Aggregate Intrinsic Value, Stock Option outstanding	$ 9,550
Aggregate Intrinsic Value, Stock Options vested and exercisable	$ 8,807

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Equity Incentive Plans - Summary of Restricted Stock Unit Activity (Details) - $ / shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Weighted-Average Grant Date Fair Value per Share
Weighted-Average Grant Date Fair Value per Share, Nonvested Outstanding, Granted	$ 7.36	$ 26.52
Restricted Stock Units (RSUs) | 2019 Equity Incentive Plan
Restricted Stock Units Outstanding
Restricted Stock Units Outstanding, Nonvested Outstanding, Beginning Balance	1,211,191
Restricted Stock Units Outstanding, Granted	5,568,815
Restricted Stock Units Outstanding, Forfeited or cancelled	(1,068,505)
Restricted Stock Units Outstanding, Vested	(160,914)
Restricted Stock Units Outstanding, Nonvested Outstanding, Beginning Balance	5,550,587
Weighted-Average Grant Date Fair Value per Share
Weighted-Average Grant Date Fair Value per Share, Nonvested Outstanding, Beginning Balance	$ 37.41
Weighted-Average Grant Date Fair Value per Share, Nonvested Outstanding, Granted	11.66	$ 42.93
Weighted-Average Grant Date Fair Value per Share, Nonvested Outstanding, Forfeited or cancelled	16.80
Weighted-Average Grant Date Fair Value per Share, Nonvested Outstanding, Vested	43.19
Weighted-Average Grant Date Fair Value per Share, Nonvested Outstanding, Ending Balance	$ 15.38

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Equity Incentive Plans - Summary of Estimated Grant Date Fair Value of Stock Options Granted (Details) - $ / shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rate, minimum	1.70%	0.50%
Risk-free interest rate, maximum	3.00%	1.10%
Expected volatility, minimum	68.20%	67.10%
Expected volatility, maximum	71.00%	68.70%
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Fair value of common stock	$ 7.30	$ 34.41
Expected term (in years)	5 years 3 months 7 days	5 years 3 months 7 days
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Fair value of common stock	$ 14.95	$ 66.50
Expected term (in years)	6 years 29 days	6 years 29 days

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Equity incentive Plans - Summary of Compensation Costs Related to Stock Options and RSUs Included on Unaudited Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	$ 14,180	$ 11,249	$ 27,041	$ 19,733
Cost of Revenue
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	954	408	1,749	736
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	4,643	3,791	8,988	6,674
Sales and Marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	3,584	3,302	6,813	5,797
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	$ 4,999	$ 3,748	$ 9,491	$ 6,526

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Equity incentive Plans - Schedule of Unrecognized Share-Based Compensation Expense and the Remaining Weighted-Average Recognition Period (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Nonvested Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized Share-Based Compensation Expense	$ 88,549
Remaining Weighted-Average Recognition Period (in years)	2 years 10 months 6 days
Nonvested Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized Share-Based Compensation Expense	$ 75,935
Remaining Weighted-Average Recognition Period (in years)	3 years 5 months 1 day
Nonvested Market-Based Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized Share-Based Compensation Expense	$ 4,165
Remaining Weighted-Average Recognition Period (in years)	2 years 8 months 4 days

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Restructuring - Additional Information (Details) $ in Millions	3 Months Ended	6 Months Ended
	Mar. 31, 2022 Employee	Jun. 30, 2022 USD ($)
Restructuring And Related Activities [Abstract]
Restructuring, reduction in workforce | Employee	100
Estimated aggregate restructuring costs recognized		$ 2.0
Restructuring costs paid		$ 2.0

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Net Loss Per Share Attributable to Adaptive Biotechnologies Corporation Common Shareholders - Computation of the Basic and Diluted Net Loss Per Share Attributable to Common Shareholders (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Net loss attributable to Adaptive Biotechnologies Corporation	$ (52,046)	$ (49,301)	$ (114,782)	$ (89,943)
Weighted-average shares used in computing net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic	142,363,589	140,359,317	142,032,261	139,667,380
Net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic	$ (0.37)	$ (0.35)	$ (0.81)	$ (0.64)
Weighted-average shares used in computing net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, diluted	142,363,589	140,359,317	142,032,261	139,667,380
Net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, diluted	$ (0.37)	$ (0.35)	$ (0.81)	$ (0.64)

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Net Loss Per Share Attributable to Adaptive Biotechnologies Corporation Common Shareholders - Weighted-Average Common Stock Equivalents were Excluded From Calculation of Diluted Net Loss Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	20,551,957	13,881,186	18,286,917	13,835,989
Common Stock Options Granted
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	14,693,276	13,204,775	13,978,339	13,360,000
Nonvested Restricted Stock Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	5,364,447	676,411	3,983,640	458,707
Nonvested Market-based Restricted Stock Units Granted
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	494,234		324,938
Common Stock Warrant Outstanding
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities				17,282