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Equity Incentive Plans (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Changes in Shares Available for Grant

Changes in shares available for grant during the year ended December 31, 2019 were as follows:

	Shares Available for Grant
Shares available for grant at December 31, 2018		6,827,996
2009 Plan reserve cancelled		(3,155,968	)
2019 Plan reserve established		15,519,170
Options and restricted stock units granted		(4,207,301	)
Options and restricted stock units forfeited or cancelled		412,357
Shares available for grant at December 31, 2019		15,396,254

Summary of Stock Option Activity Under 2008 Plan 2009 Plan and 2019 Plan

Stock option activity under the 2008 Plan, 2009 Plan and 2019 Plan during the year ended December 31, 2019, 2018 and 2017 was as follows:

	Shares Subject to Outstanding Options			Weighted- Average Exercise Price per Share		Aggregate Intrinsic Value (in thousands)
Options outstanding at December 31, 2016		12,919,342		$	3.28	$	41,952
Options granted		1,604,496			6.27
Options forfeited or cancelled		(2,207,933	)		5.51
Options exercised		(226,211	)		0.98
Options outstanding at December 31, 2017		12,089,694			3.56		36,165
Options granted		4,764,625			6.55
Options forfeited or cancelled		(929,519	)		4.86
Options exercised		(766,870	)		1.66
Options outstanding at December 31, 2018		15,157,930			4.52		41,690
Options granted		4,194,491			9.72
Options forfeited or cancelled		(412,357	)		6.24
Options exercised		(2,293,410	)		1.97
Options outstanding at December 31, 2019		16,646,654		$	6.14	$	398,379
Options vested and exercisable at December 31, 2019		10,101,496		$	4.58	$	255,939

Summary of Estimated Fair Value of Options Granted

The estimated fair value of options granted during the year ended December 31, 2019, 2018 and 2017 was estimated using the Black-Scholes option-pricing model with the following assumptions:

	Year Ended December 31,
	2019		2018		2017
Grant date fair value	$7.80 - $47.81		$6.55		$6.27 - $6.32
Expected term (in years)	5.27 - 6.08		6.08 - 10.00		6.08 - 10.00
Risk-free interest rate	1.4% - 2.5%		2.6% - 3.0%		1.9% - 2.4%
Expected volatility	64.3% - 72.9%		65.0% - 69.2%		67.3% - 70.5%
Expected dividend yield		—		—		—

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

The compensation costs related to stock options and RSUs for the year ended December 31, 2019, 2018 and 2017, respectively, are included on our statements of operations as follows (in thousands):

	Year Ended December 31,
	2019		2018		2017
Cost of revenue	$	555	$	398	$	237
Research and development		3,934		2,896		2,375
Sales and marketing		3,480		2,891		1,344
General and administration		5,155		4,964		3,053
Total share-based compensation expense	$	13,124	$	11,149	$	7,009

Balance Sheets - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 96,576,000	$ 55,030,000
Short-term marketable securities	480,290,000	109,988,000
Accounts receivable, net	12,676,000	4,807,000
Inventory	9,069,000	7,838,000
Prepaid expenses and other current assets	14,079,000	3,055,000
Total current assets	612,690,000	180,718,000
Long-term assets
Property and equipment, net	60,355,000	19,125,000
Long-term marketable securities	105,435,000
Restricted cash	2,138,000	61,000
Intangible assets, net	11,928,000	13,626,000
Goodwill	118,972,000	118,972,000
Other assets	784,000	186,000
Total assets	912,302,000	332,688,000
Current liabilities
Accounts payable	4,453,000	1,793,000
Accrued liabilities	4,371,000	2,562,000
Accrued compensation and benefits	8,124,000	4,641,000
Current portion of deferred rent	371,000	1,109,000
Current deferred revenue	60,994,000	12,695,000
Total current liabilities	78,313,000	22,800,000
Long-term liabilities
Convertible preferred stock warrant liability		336,000
Deferred rent liability, less current portion	6,918,000	6,102,000
Financing obligation	36,607,000
Deferred revenue, less current portion	219,332,000	704,000
Other long-term liabilities	93,000
Total liabilities	341,263,000	29,942,000
Commitments and contingencies (Note 10)
Convertible preferred stock: $0.0001 par value, no and 93,762,517 shares authorized at December 31, 2019 and 2018, respectively; no and 92,790,094 shares issued and outstanding at December 31, 2019 and 2018, respectively; aggregate liquidation preference of $0 and $572,866 at December 31, 2019 and 2018, respectively		560,858,000
Shareholders’ equity (deficit)
Preferred stock: $0.0001 par value, 10,000,000 and no shares authorized at December 31, 2019 and 2018, respectively; no shares issued and outstanding at December 31, 2019 and 2018
Common stock: $0.0001 par value, 340,000,000 and 131,000,000 shares authorized at December 31, 2019 and 2018, respectively; 125,238,142 and 12,841,536 shares issued and outstanding at December 31, 2019 and 2018, respectively	12,000	1,000
Additional paid-in capital	935,834,000	37,902,000
Accumulated other comprehensive gain (loss)	671,000	(107,000)
Accumulated deficit	(365,478,000)	(295,908,000)
Total shareholders’ equity (deficit)	571,039,000	(258,112,000)
Total liabilities, convertible preferred stock and shareholders’ equity (deficit)	$ 912,302,000	$ 332,688,000

Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
Statements of Comprehensive Loss - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Net loss	$ (68,606)	$ (46,447)	$ (42,831)
Change in unrealized gain (loss) on investments	778	59	(84)
Comprehensive loss	$ (67,828)	$ (46,388)	$ (42,915)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Goodwill and Intangible Assets - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	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	7 years

Income Taxes - Schedule of Reconciliation of Effective Tax Rate of Provision for Income Taxes Differs from Federal Statutory Rate (Detail)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Statutory rate	21.00%	21.00%	34.00%
State tax	8.10%	5.50%	1.80%
Stock compensation	9.80%	0.50%	(1.70%)
Permanent items	(1.00%)	0.50%	(0.10%)
Credits	6.10%	2.70%	2.70%
TCJA change in federal rate			(58.40%)
Other	0.30%	0.10%	(0.60%)
Change in valuation allowance	(44.30%)	(30.30%)	22.30%
Total	0.00%	0.00%	0.00%

Organization and Description of Business

12 Months Ended

Dec. 31, 2019

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-driven 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 is the foundation for our expanding suite of products and services. The cornerstone of our immune medicine platform and core immunosequencing product, immunoSEQ, serves as our underlying research and development engine and generates revenue from academic and biopharmaceutical customers. Our first clinical diagnostic product, clonoSEQ, is the first test authorized by the Food and Drug Administration (“FDA”) for the detection and monitoring of minimal residual disease (“MRD”) in patients with select blood cancers.

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.

Initial Public Offering

Our registration statement on Form S-1 related to our initial public offering was declared effective on June 26, 2019, and our common stock began trading on the Nasdaq Global Select Market on June 27, 2019. On July 1, 2019, we completed our initial public offering in which we issued and sold 17,250,000 shares of common stock, including shares issued upon the exercise in full of the underwriters’ over-allotment option, at a public offering price of $20.00 per share. We received $315.9 million in net proceeds, after deducting underwriting discounts and commissions of $24.1 million and offering expenses of $5.0 million.

Immediately prior to the completion of our initial public offering on July 1, 2019, 93,039,737 shares of convertible preferred stock then outstanding converted into an equivalent number of shares of common stock. On July 1, 2019, in connection with the closing of our initial public offering, our amended and restated articles of incorporation, as filed with the Secretary of State of the State of Washington, and our amended and restated bylaws became effective. Also on July 1, 2019, an initial reserve of 15,519,170 shares under our new 2019 Equity Incentive Plan (“2019 Plan”) became effective.

Equity Incentive Plans - Summary of Stock Option Activity Under 2008 Plan 2009 Plan and 2019 Plan (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Shares Subject to Outstanding Options, Options outstanding, Beginning Balance	15,157,930	12,089,694	12,919,342
Shares Subject to Outstanding Options, Options granted	4,194,491	4,764,625	1,604,496
Shares Subject to Outstanding Options, Options forfeited or cancelled	(412,357)	(929,519)	(2,207,933)
Shares Subject to Outstanding Options, Options exercised	(2,293,410)	(766,870)	(226,211)
Shares Subject to Outstanding Options, Options outstanding, Ending Balance	16,646,654	15,157,930	12,089,694
Shares Subject to Outstanding Options, Options vested and exercisable	10,101,496
Weighted Average Exercise Price per Share, Options outstanding, Beginning Balance	$ 4.52	$ 3.56	$ 3.28
Weighted Average Exercise Price per Share, Options granted	9.72	6.55	6.27
Weighted Average Exercise Price per Share, Options forfeited or cancelled	6.24	4.86	5.51
Weighted Average Exercise Price per Share, Options exercised	1.97	1.66	0.98
Weighted Average Exercise Price per Share, Options outstanding, Ending Balance	6.14	$ 4.52	$ 3.56
Weighted Average Exercise Price per Share, Options vested and exercisable	$ 4.58
Aggregate Intrinsic Value, Option outstanding	$ 398,379	$ 41,690	$ 36,165	$ 41,952
Aggregate Intrinsic Value, Options vested and exercisable	$ 255,939

Investments - Schedule of Gross Unrealized Holding Losses and Fair Value for Investments in Unrealized Loss Position (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Schedule of Available-for-Sale Securities [Line Items]
Less than 12 months, Fair value	$ 35,206
Less than 12 months, Unrealized loss	(13)
Corporate Bonds
Schedule of Available-for-Sale Securities [Line Items]
Less than 12 months, Fair value	5,010
Less than 12 months, Unrealized loss	(3)
U.S. Government Debt and Agency Securities
Schedule of Available-for-Sale Securities [Line Items]
Less than 12 months, Fair value	30,196
Less than 12 months, Unrealized loss	$ (10)

Accrued Liabilities

12 Months Ended

Dec. 31, 2019

Payables And Accruals [Abstract]

Accrued Liabilities

8.	Accrued Liabilities

Accrued liabilities as of December 31, 2019 and 2018 consisted of the following (in thousands):

	December 31,
	2019		2018
Accrued legal and professional fees	$	1,041	$	1,634
Accrued royalties		78		31
Accrued travel and entertainment		157		73
Accrued tax liabilities		2,062		111
Purchases of property and equipment		555		165
Other		478		548
Total accrued liabilities	$	4,371	$	2,562

The accrued tax liabilities balance as of December 31, 2019 includes a $1.9 million tax withholding liability related to unsettled option exercises as of December 31, 2019.

Equity Incentive Plans - Additional Information (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) Option $ / shares shares	Dec. 31, 2017 USD ($) $ / shares	Jul. 01, 2019 shares	Dec. 31, 2016 shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Initial share reserve	33,656,200
Weighted-average remaining contractual life options outstanding	6 years 9 months 18 days
Weighted-average remaining contractual life vested and exercisable options outstanding	5 years 6 months
Weighted-average grant date fair value \| $ / shares	$ 6.87	$ 4.15	$ 4.00
Total intrinsic value of options exercised \| $	$ 39,100	$ 3,800	$ 1,300
Weighted-average volatility	68.10%	68.10%	70.20%
Share-based compensation expense \| $	$ 13,124	$ 11,149	$ 7,009
Number of employee option modification \| Option		1
Incremental stock compensation \| $		$ 500
Unrecognized share-based compensation expense related to unvested stock options \| $	$ 33,300
Unrecognized share-based compensation expense related to unvested stock options, weighted-average period for recognition	2 years 10 months 24 days
Option Valuation Model
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected dividend yield	0.00%
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized share-based compensation expense related to unvested stock options, weighted-average period for recognition	6 months
Unrecognized share-based compensation expense related to unvested RSUs \| $	$ 200
Sequenta 2008 Stock Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for future issuance	0
2009 Equity Incentive Plan \| Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for future issuance	0
2009 Equity Incentive Plan \| Options \| Non Employee Directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period	4 years
2009 Equity Incentive Plan \| Options \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Option expiration period	10 years
2019 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for future issuance	15,396,254,000	6,827,996,000
Initial share reserve				15,519,170
2019 Plan \| Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Initial share reserve	15,519,170
Number of shares authorized for issuance	15,704,914
2019 Plan \| Options \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Option expiration period	10 years
2019 Plan \| Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average grant date fair value \| $ / shares	$ 41.63
Share-based compensation outstanding shares	4,500				880,487
Share-based compensation granted shares	12,810
Share-based compensation granted shares vested	8,310
Weighted-average grant date fair value per share vested \| $ / shares	$ 41.63
Weighted-average grant date fair value per share nonvested and outstanding \| $ / shares	$ 41.63
2019 Plan \| Restricted Stock Units \| Prepaid Expenses and Other Current Assets
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unsettled cash proceeds related to stock options exercised \| $	$ 500

Goodwill and Intangible Assets - Summary of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 20,325	$ 20,325
Accumulated Amortization	(8,397)	(6,699)
Net Carrying Amount	11,928	13,626
Acquired Developed Technology
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	20,000	20,000
Accumulated Amortization	(8,301)	(6,636)
Net Carrying Amount	11,699	13,364
Purchased Intellectual Property
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	325	325
Accumulated Amortization	(96)	(63)
Net Carrying Amount	$ 229	$ 262

Equity incentive Plans - Summary of Compensation Costs Related to Stock Options and RSUS Included on Statements of Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	$ 13,124	$ 11,149	$ 7,009
Cost of Revenue
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	555	398	237
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	3,934	2,896	2,375
Sales and Marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	3,480	2,891	1,344
General and Administration
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	$ 5,155	$ 4,964	$ 3,053

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation and Use of Estimates

The preparation of 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 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.

Reclassifications

In the accompanying balance sheets, certain prior year amounts have been reclassified to conform to the current period presentation. Specifically, “restricted cash” and “other assets” were included together in the restricted cash and other assets line item and are now separately stated. There was no change to total assets as a result of the reclassification.

Cash and Cash Equivalents

Cash and cash equivalents are stated at fair value. Cash equivalents include only securities having an original maturity of three months or less at the time of purchase. We limit our credit risk associated with cash and cash equivalents by placing our investments with banks that we believe are highly creditworthy and with highly rated money market funds. Cash and cash equivalents primarily consist of bank deposits and investments in money market funds.

Restricted Cash

We are required to maintain certain balances under lease arrangements for our property and facility leases. We had restricted cash of $2.1 million and $0.1 million as of December 31, 2019 and 2018, respectively.

Investments in Marketable Securities

Marketable securities are classified as available-for-sale and primarily consist of U.S. government debt securities, U.S. government agency securities, commercial paper and corporate bonds, and are reported at fair value. Unrealized holding gains and losses are reflected as a separate component of shareholders’ equity (deficit) in accumulated other comprehensive gain (loss) until realized. Realized gains and losses on the sale of these securities are recognized in net income or loss. The cost of marketable securities sold is based on the specific identification method.

Concentrations of Risk

We are subject to a concentration of risk from a limited number of suppliers, or in some 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, 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 which represent more than 10% of our total revenue or accounts receivable, net balances for the periods and as of each balance sheet date presented, respectively. Revenue from these customers reflects their purchase of our products and services and our collaboration efforts with Genentech.

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 periods presented were as follows:

	Revenue			Accounts Receivable, Net
	Year Ended December 31,			December 31,
	2019	2018	2017	2019	2018
Customer A	13.9%	18.4%	31.4%	41.8%	*%
Customer B	*	13.5	*	*	15.1
Customer C	*	15.4	*	*	13.2
Genentech, Inc.	42.1	*	*	*	*
* less than 10%

Accounts Receivable

Accounts receivable consists of amounts due from customers for services performed. We review our accounts receivable regularly by analyzing the status of significant past due receivables to determine if any receivable will potentially be uncollectible and to estimate the amount of allowance for doubtful accounts necessary to reduce accounts receivable to its estimated net realizable value.

Additionally, we had $2.4 million and $0.4 million of unbilled receivables as of December 31, 2019 and 2018, respectively. The unbilled receivables are amounts that will become due for which we have an unconditional right to consideration.

Inventory

Inventory consists of laboratory materials and supplies used in lab analysis. We capitalize inventory when purchased and record expense upon order fulfillment for servicing revenue or utilization in our research and development laboratories. Inventory is valued at the lower of cost or market on a first-in, first-out basis. We periodically perform obsolescence assessments and write off any inventory that is no longer usable.

Property and Equipment

Property and equipment consists of computer equipment, computer software, laboratory equipment, leasehold improvements and furniture and office equipment. Property and equipment are recorded at cost and depreciation is recognized using the straight-line method based on estimated useful life. Maintenance and repairs are charged to expense as incurred, and costs of improvements are capitalized.

Useful lives assigned to property and equipment are as follows:


Laboratory equipment		3 to 7 years
Leasehold improvements		Shorter of estimated useful life or remaining lease term
Computer equipment and software		3 years
Furniture and office equipment		5 to 10 years

We review long-lived assets for impairment whenever events or circumstances indicate the carrying amount of an asset group may not be recoverable. Gains and losses from asset disposals and impairment losses are classified within the statements of operations in accordance with the use of the asset.

Goodwill

Goodwill represents the excess of the purchase price over the net amount of identifiable assets acquired and liabilities assumed in a business combination measured at fair value. We assess goodwill for impairment annually on October 1, or more frequently if events or changes in circumstances would more likely than not reduce the fair value of our single reporting unit below its carrying value. We evaluate goodwill for impairment by first assessing qualitative factors to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. If we so determine, or if we choose to bypass the qualitative assessment, we perform a quantitative goodwill impairment test. Goodwill impairment exists when the estimated fair value of our one reporting unit is less than its carrying value. If impairment exists, the carrying value of the goodwill is reduced to fair value through an impairment charge recorded in our statements of operations. To date, we have not recognized any impairment of goodwill.

Intangible Assets

Intangible assets acquired in a business combination are recognized separately from goodwill and are initially recognized at their fair value at the acquisition date, which is regarded as their cost.

Intangible assets may also result from the purchase of assets and intellectual property in a transaction that does not qualify as a business combination. Intangible assets are amortized over their estimated useful lives on a straight-line basis which approximates their usage pattern. Intangible assets are reviewed for impairment at least annually or if indicators of potential impairment exist. We have not recognized any impairment losses on intangible assets.

Restructuring

We recognize a liability for costs associated with an exit or disposal activity under a restructuring project when the plan has been finalized. Employee termination benefits considered as post-employment benefits are accrued when the obligation is probable and estimable, such as benefits stipulated by human resource policies and practices or statutory requirements. One-time termination benefits are recognized at the date the employee is notified. If the employee must provide future service greater than 60 days, such benefits are recognized ratably over the future service period.

Asset impairments associated with a restructuring project are determined at the asset group level. An impairment may be recognized for assets that are to be abandoned or are to be sold for less than net book value. We may also recognize impairment on an asset group, which is held and used, when the carrying value is not recoverable and exceeds the asset group’s fair value. If the sale of an asset group under a restructuring project results in proceeds that exceed the net book value of the asset group, the resulting gain is recognized within restructuring expense in the statements of operations.

On June 17, 2016, we announced that we were consolidating our South San Francisco, California laboratory operations into our Seattle, Washington location to recognize cost savings. The transition of activities was completed in April 2017.

Leases

Operating Lease Arrangements

We have operating lease agreements for the laboratory and office facilities that we occupy. Rent expense is recognized on a straight-line basis over the terms of the leases. Incentives granted under our facilities leases, including rent holidays, are capitalized and are recognized as adjustments to rent expense on a straight-line basis over the terms of the leases.

Lease Financing Arrangements

Due to our significant involvement during the construction process of a leased building, we qualify as the deemed owner of the building under build-to-suit lease accounting guidance. The cost of the related building is recorded in property and equipment, net and the offsetting lease financing obligation is recorded as a long-term financing obligation on our balance sheet. As of December 31, 2019, $36.6 million of building costs have been recorded in property and equipment, net.

Fair Value of Financial Instruments

The Financial Accounting Standards Board (“FASB”) has defined fair value as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for that asset or liability in an orderly transaction between market participants on the measurement date. The FASB established a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. The hierarchy defines three levels of inputs that may be used to measure fair value:

•

Level 1: Quoted prices in active markets for identical assets or liabilities.

•

Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

A financial instrument categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Our financial instruments consist of Level 1 and Level 2 assets, and has included Level 3 liabilities in the past. In certain cases, where there is limited activity or less transparency around inputs to valuation, financial instruments are classified as Level 3 within the valuation hierarchy. The carrying amounts of certain financial instruments approximate fair value due to their short maturities.

We did not have any nonfinancial assets or liabilities that were measured or disclosed at fair value on a recurring basis as of December 31, 2019 or 2018.

Convertible Preferred Stock Warrant Liability

We had issued a freestanding warrant to a venture capital firm to purchase 56,875 shares of Series C convertible preferred stock with an exercise price of $2.64 in connection with a $5.0 million credit facility entered into in 2014. Immediately prior to and in connection with the completion of our initial public offering, the convertible preferred stock warrant converted to a common stock warrant.

Prior to the conversion, the fair value of this warrant was classified as a non-current liability in the balance sheets, since the underlying convertible preferred stock had been classified as temporary equity instead of shareholders’ deficit in accordance with authoritative guidance for the classification and measurement of potentially redeemable securities. Upon certain change in control events that were outside of our control, including liquidation, sale or transfer of control, holders of the convertible preferred stock may have caused its redemption. Prior to conversion, the warrant was subject to remeasurement at each balance sheet date, with changes in estimated fair value recognized as a component of interest and other income, net on the statements of operations. During the year ended December 31, 2019, we recognized $2.3 million of expense related to the revaluation of the convertible preferred stock warrant liability in the interest and other income, net line item on our statements of operations.

When the convertible preferred stock warrant converted to a common stock warrant immediately prior to and in connection with the completion of the initial public offering, the $2.6 million financial liability was reclassified to the additional paid-in capital line item on our December 31, 2019 balance sheet, thereby concluding the need for revaluation.

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. The following is a summary of the application of the respective model to each of our revenue classifications.

Overview

Our revenue is generated from immunosequencing (“sequencing”) products and services (“sequencing revenue”) and from regulatory or development support services leveraging our immune medicine platform (“development revenue”). When revenue generating contracts have elements of both sequencing revenue and development revenue, we allocate revenue based on the nature of the performance obligation and the allocated transaction price.

Sequencing Revenue

Sequencing revenue reflects the amounts generated from providing sequencing services and testing through our immunoSEQ and clonoSEQ products and services to our research and clinical customers, respectively.

For research customers, 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: sequencing services and related data analysis. We recognize revenue for both identified performance obligations as sample results are delivered to the customer.

For other research customers who choose to purchase a research use only kit, the kits are sold on a price per kit basis with amounts payable upon delivery of the kit. Payments received are recorded as deferred revenue. For these customers, we have identified one performance obligation: the delivery of sample results. We recognize revenue as the results are delivered to the customer based on a proportion of the estimated samples that can be reported on for each kit.

For clinical customers, we derive revenues from providing our clonoSEQ test report to ordering physicians, and we bill and receive payments from commercial third-party payors and medical institutions. In these transactions, we have identified one performance obligation: the delivery of a clonoSEQ report. 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.

In January 2019, clonoSEQ received Medicare coverage aligned with the FDA label and National Comprehensive Cancer Network (“NCCN”) guidelines for longitudinal monitoring in multiple myeloma (“MM”) and B cell acute lymphoblastic leukemia (“ALL”). We bill Medicare for an episode of treatment when we deliver the first eligible test results. 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 is recognized at the time the initial billable test result 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. During the year ended December 31, 2019, we recognized $1.6 million relating to the coverage policy; $0.4 million of this revenue was related to tests delivered in periods prior to the year ended December 31, 2019. Any unrecognized revenue from the initial billable test is recorded as deferred revenue and is recognized as we deliver the remaining tests in a patient’s treatment cycle.

Development Revenue

We derive revenue by providing services through development agreements to biopharmaceutical customers who seek access to our immune medicine platform technologies. We generate revenues from the delivery of professional support activities pertaining to the use of our proprietary immunoSEQ and clonoSEQ services in the development of the respective customers’ initiatives. The transaction price for these contracts may consist of a combination of non-refundable upfront fees, separately priced sequencing fees, progress based milestones and regulatory milestones. The development agreements may include single or multiple performance obligations depending on the contract. For certain contracts, we may perform services to support the biopharmaceutical customers’ regulatory submission as part of their registrational trials. These services include regulatory support pertaining to our technology intended to be utilized as part of the submission, development of analytical plans for our sequencing data, participation on joint research committees and assistance in completing a regulatory submission. Generally, these services are not distinct within the context of the contract, and they are accounted for as a single performance obligation.

When sequencing services are separately priced customer options, we assess if a material right exists and, if not, the customer option to purchase additional sequencing services is not considered part of the contract. Except for any non-refundable upfront fees, the other forms of compensation represent variable consideration. Variable consideration related to progress based and 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. Progress milestones such as the first sample result delivered or final patient enrollment in a customer trial are customer dependent and are included in the transaction price when the respective milestone is probable of occurring. Milestone payments that are not within our customers’ control, such as regulatory approvals, 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 that must be managed, as well as the level of effort and investment required to achieve the respective milestone.

The primary method used to estimate standalone selling price for performance obligations is the adjusted market assessment approach. Using this approach, we evaluate the market in which we sell our services and estimate the price that a customer in that market would be willing to pay for our services. We recognize revenue using either an input or output measure of progress that faithfully depicts performance on a contract, depending on the contract. The measure used is dependent on the nature of the service to be provided in each contract. Selecting the measure of progress and estimating progress to date requires significant judgment.

Deferred Offering Costs

Deferred offering costs consist of fees and expenses incurred in connection with the sale of our common stock in the initial public offering, including legal, accounting, printing and other initial public offering-related costs. Prior to the completion of our initial public offering, deferred offering costs were presented in the restricted cash and other assets line item on our balance sheets. In connection with and as of the closing of our initial public offering, these costs were reclassified to additional paid-in capital, representing a reduction to the initial public offering proceeds. As of December 31, 2019, $5.0 million of these initial public offering-related costs are included in the additional paid-in capital line item on our balance sheet.

Contract Balances

In certain circumstances, billing may occur prior to services being performed. Upfront payments are recorded as deferred revenue, contract liabilities. We classify deferred revenue as current for sequencing revenue, as we expect our performance obligations will be completed within the next twelve months; however, we do not control the timing of customer provided samples. For development services, we assess the performance obligations and recognize deferred revenue as current or non-current based upon forecasted delivery times, which are customer coordinated. In certain circumstances, the customer project may be cancelled or terminated prior to the delivery of all related services covered by a customer’s upfront payment. In these circumstances, we recognize revenue when sufficient evidence is obtained that a reversal of revenue is not probable.

Share-Based Compensation

Share-based compensation includes compensation expense for stock option and restricted stock unit (“RSU”) grants to employees and non-employees. It represents the grant date fair value of the grants and is recognized over the requisite service period of the awards, usually the vesting period, on a straight-line basis, net of actual forfeitures. We estimate the fair value of stock option grants using the Black-Scholes option-pricing model.

Advertising

Advertising costs are expensed as incurred. Advertising expenses were $6.6 million, $3.5 million and $1.8 million for the year ended December 31, 2019, 2018 and 2017, respectively.

Cost of Revenue

Cost of revenue includes the cost of materials, personnel-related expenses (comprised of salaries, benefits and share-based compensation), shipping and handling, equipment and allocated facility costs associated with processing samples and professional support for our sequencing revenue. Allocated facility costs include depreciation of laboratory equipment, allocated facility occupancy and information technology costs. Costs associated with processing samples are recorded as expense, regardless of the timing of revenue recognition.

Research and Development Expenses

Research and development expenses are comprised of laboratory materials costs, personnel-related expenses, allocated facility costs, information technology and contract service expenses. Research and development costs are expensed as incurred. Upfront payments for goods or services that will be used or rendered for future research and development activities are deferred and capitalized, then are recognized as an expense as the goods are consumed or the related services are performed.

Sales and Marketing Expenses

Sales and marketing expenses consist primarily of personnel-related expenses for commercial sales, 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.

Income Taxes

Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and the operating loss and tax credit carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

Deferred tax assets and liabilities are measured at the balance sheet date using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in the period such tax rate changes are enacted. Our net deferred tax assets are fully offset by a valuation allowance, because of our history of losses.

We recognize interest and penalties related to income tax matters as a component of tax expense.

Net Loss Per Share Attributable to Common Shareholders

We calculate our basic and diluted net loss per share attributable to common shareholders in conformity with the two-class method required for companies with participating securities. Prior to the conversion of our convertible preferred stock into common stock in connection with our initial public offering, we considered our convertible preferred stock to be participating securities. In the event a dividend is declared or paid on common stock, holders of convertible preferred stock were entitled to a share of such dividend in proportion to the holders of common stock on an as-if converted basis. Under the two-class method, basic net loss per share attributable to common shareholders is calculated by dividing the net loss attributable to common shareholders by the weighted-average number of shares of common stock outstanding for the period. Net loss attributable to common shareholders is determined by allocating undistributed earnings between common and preferred shareholders. The net loss attributable to common shareholders was not allocated to the convertible preferred stock under the two-class method, as the convertible preferred stock did not have a contractual obligation to share in our losses. The diluted net loss per share attributable to 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, convertible preferred stock, common stock warrants and stock options are considered common stock equivalents but have been excluded from the calculation of diluted net loss per share attributable to common shareholders, as their effect is anti-dilutive.

Segment Information

We have determined that our chief executive officer is the chief operating decision maker (“CODM”). The CODM reviews financial information presented on a regular basis at the entity level. Resource allocation decisions are made by the CODM based on the results at the entity level, which is determined to be a single reporting unit. There are no segment managers who are held accountable by the CODM for operations, operating results or planning for levels or components below the entity. As such, we have concluded that we operate as one segment. We present disaggregated revenue from contracts with customers by type of service. See Note 3, Revenue.

Recently Adopted Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation—Stock Compensation (Topic 718), intended to simplify the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statements of cash flows. This guidance also allowed for an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. We adopted this guidance as of January 1, 2018 and elected to account for forfeitures as they occur. We utilized a modified retrospective transition method, recorded the cumulative impact of applying this guidance and recognized a cumulative increase to additional paid-in capital and an increase to accumulated deficit of $0.1 million.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, intended to simplify the goodwill impairment test. Under the new guidance, goodwill impairment is measured by the amount by which the carrying value of a reporting unit exceeds its fair value, without exceeding the carrying amount of goodwill allocated to that reporting unit. This guidance is effective January 1, 2022 and is required to be adopted on a prospective basis, with early adoption permitted. We adopted this guidance as of January 1, 2018 and the adoption did not have any impact on our financial statements.

In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The guidance is effective for us beginning in 2019, with early adoption permitted. We adopted the guidance effective January 1, 2019 and the adoption did not have any impact on our financial statements.

New Accounting Pronouncements Not Yet Adopted

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheets and disclosing key information about leasing arrangements. This guidance is effective for us in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We have the transition option of retrospectively adjusting prior periods presented or adopting with a cumulative adjustment to retained earnings on the date of adoption. Although we are currently determining the incremental borrowing rate to use and evaluating the impact that adopting this guidance will have on our financial statements, we expect to recognize the right-of-use assets and related lease liabilities related to our operating leases on the balance sheets, which will be based largely on the present value of future minimum lease payments of approximately $54.1 million, excluding our to-be-constructed building lease. Additionally, assuming we do not control the leased building currently being constructed at the date of adoption, we will derecognize the existing asset and liability created in accordance with build-to-suit lease accounting guidance under ASC 840, Leases. We will then classify the lease as of the lease commencement date in accordance with the adopted guidance.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables and available-for-sale debt securities. The guidance is effective for us beginning in 2020, with early adoption permitted. Although we are currently evaluating the impact that adopting this guidance prospectively will have on our financial statements, we do not expect the adoption to have a material impact on our financial statements.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other: Internal-Use Software (Subtopic 350-40), to provide additional guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement. This guidance is effective for fiscal years beginning after December 15, 2019 and early adoption of the amendments in this update are permitted. Furthermore, it can be applied either retrospectively or prospectively. We do not expect the adoption of this guidance to have a material impact on our financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which eliminates certain exceptions to the guidance in Accounting Standards Codification 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. Among other things, this guidance also clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. This guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted, and the guidance is to be applied prospectively, except for certain amendments. We do not expect the adoption of this guidance to have a material impact on our financial statements.

Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring basis - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financial assets
Total financial assets	$ 674,408	$ 155,986
Financial liabilities
Total financial liabilities		336
Convertible Preferred Stock Warrant Liability
Financial liabilities
Total financial liabilities		336
Level 1
Financial assets
Total financial assets	88,683	45,998
Level 2
Financial assets
Total financial assets	585,725	109,988
Level 3
Financial liabilities
Total financial liabilities		336
Level 3 \| Convertible Preferred Stock Warrant Liability
Financial liabilities
Total financial liabilities		336
Money Market Funds
Financial assets
Total financial assets	88,683	45,998
Money Market Funds \| Level 1
Financial assets
Total financial assets	88,683	45,998
Commercial Paper
Financial assets
Total financial assets	121,867	16,887
Commercial Paper \| Level 2
Financial assets
Total financial assets	121,867	16,887
U.S. Government Debt and Agency Securities
Financial assets
Total financial assets	377,243	85,623
U.S. Government Debt and Agency Securities \| Level 2
Financial assets
Total financial assets	377,243	85,623
Corporate Bonds
Financial assets
Total financial assets	86,615	7,478
Corporate Bonds \| Level 2
Financial assets
Total financial assets	$ 86,615	$ 7,478

Equity Incentive Plans - Summary of Changes in Shares Available for Grant (Details)	12 Months Ended
	Dec. 31, 2019 shares
2019 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Available for Grant, Outstanding, Beginning Balance	6,827,996,000
Shares Available for Grant, 2019 Plan reserve established	15,519,170,000
Shares Available for Grant, Options and restricted stock units granted	(4,207,301,000)
Shares Available for Grant, Options and restricted stock units forfeited or cancelled	412,357,000
Shares Available for Grant, Outstanding, Ending Balance	15,396,254,000
2009 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Available for Grant, 2009 Plan reserve cancelled	(3,155,968,000)

Retirement Plan

12 Months Ended

Dec. 31, 2019

Compensation And Retirement Disclosure [Abstract]

Retirement Plan

16.	Retirement Plan

We maintain a salary deferral 401(k) plan (“401(k) Plan”), covering employees who have met certain eligibility requirements. Employees may defer up to 100% of their compensation to the 401(k) Plan, subject to federal limits. We did not make any discretionary contributions during the years ended December 31, 2019, 2018 and 2017.

Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Property Plant And Equipment [Line Items]
Property and equipment, at cost	$ 78,471	$ 31,577
Less: accumulated depreciation	(18,116)	(12,452)
Property and equipment, net	60,355	19,125
Laboratory Equipment
Property Plant And Equipment [Line Items]
Property and equipment, at cost	20,773	14,009
Computer Equipment
Property Plant And Equipment [Line Items]
Property and equipment, at cost	2,450	1,819
Furniture and Office Equipment
Property Plant And Equipment [Line Items]
Property and equipment, at cost	1,568	1,300
Computer Software
Property Plant And Equipment [Line Items]
Property and equipment, at cost	505	429
Construction in Progress
Property Plant And Equipment [Line Items]
Property and equipment, at cost	1,852	3,942
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, at cost	14,716	$ 10,078
Build-to-suit Asset Cost
Property Plant And Equipment [Line Items]
Property and equipment, at cost	$ 36,607

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Payables And Accruals [Abstract]
Accrued legal and professional fees	$ 1,041	$ 1,634
Accrued royalties	78	31
Accrued travel and entertainment	157	73
Accrued tax liabilities	2,062	111
Purchases of property and equipment	555	165
Other	478	548
Total accrued liabilities	$ 4,371	$ 2,562

Accrued Liabilities - Additional Information (Details) $ in Millions	Dec. 31, 2019 USD ($)
Payables And Accruals [Abstract]
Accrued tax withholding liability related to unsettled option exercises	$ 1.9

Fair Value Measurements - Summary of Fair Value of Convertible Preferred Stock Warrant Liability Estimated Using Black-Scholes Option Pricing Model (Details) - Convertible Preferred Stock Warrant Liability	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value liability valuation technique [Extensible List]	us-gaap:ValuationTechniqueOptionPricingModelMember	us-gaap:ValuationTechniqueOptionPricingModelMember
Fair Value Estimate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value liability, measurement input	48.30	8.27
Measurement Input, Expected Term
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Expected term (in years)	1 year 9 months 18 days	2 years 3 months 21 days
Measurement Input, Risk Free Interest Rate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value liability, measurement input	0.018	0.025
Measurement Input, Price Volatility
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value liability, measurement input	0.611	0.553
Measurement Input, Expected Dividend Rate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value liability, measurement input	0

Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Operating Leases (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Operating Leases Future Minimum Payments Due [Abstract]
2020	$ 4,352
2021	7,805
2022	11,638
2023	11,320
2024	11,641
Thereafter	97,147
Total future minimum lease payments	$ 143,903

Income Taxes - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes [Line Items]
Increase in valuation allowance	$ 30,200,000	$ 14,000,000.0
U.S. statutory income tax rate	21.00%	21.00%	34.00%
Changes in deferred tax assets related to Tax Cuts and Jobs Act of 2017	$ 25,000,000.0
Federal net operating loss carryforwards	$ 225,400,000
Maturity period for net operating loss carryovers	20 years
unrecognized tax benefits	$ 2,100,000
Accrued interest or penalties related to uncertain tax positions	0	$ 0
Domestic Tax Authority [Member]
Income Taxes [Line Items]
U.S. federal net operating losses	65,100,000
U.S. federal tax credits	$ 11,000,000.0
Tax credit carryforwards expiration year	2028
Net operating loss expiration year	2028
Maximum
Income Taxes [Line Items]
U.S. statutory income tax rate			35.00%

Shareholders' Equity

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Shareholders' Equity

11.	Shareholders’ Equity

Convertible Preferred Stock

Preferred Stock

We are authorized to issue 10,000,000 shares of preferred stock, par value $0.0001 per share. As of December 31, 2019, no shares of preferred stock were outstanding.

Common Stock

We are authorized to issue 340,000,000 shares of common stock. Our common stock has a par value of $0.0001, 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 December 31, 2019, we had 125,238,142 shares of common stock outstanding.

We have reserved shares of common stock for the following as of December 31, 2019:

Shares issuable upon the exercise of outstanding common stock options and the vesting of outstanding common restricted stock units granted			16,651,154
Shares available for future grant under the 2019 Plan			15,396,254
Shares available for future grant under the Employee Stock Purchase Plan			1,551,917
Shares to be issued upon conversion of a common stock warrant			56,875
Total shares of common stock reserved for future issuance			33,656,200

Our 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) 1.0% of the number of shares of common stock issued and outstanding on the immediately preceding December 31, or (b) an amount determined by the board of directors.

On January 1, 2020, our 2019 Plan and ESPP reserves automatically increased by 6,261,907 shares and 1,252,381 shares, respectively.

Common Stock Warrants

In connection with two transactions in 2012 and 2013, we granted warrants to purchase up to 55,032 shares of common stock. These warrants were exercisable at any time for a period of ten years from the date of issuance at a weighted-average exercise price of $0.37, except in the case of a warrant to purchase 20,000 shares of common stock at an exercise price of $0.45 per share that would have expired if unexercised prior to the closing of our initial public offering. On July 1, 2019, we issued 54,792 shares of common stock through both a cash and cashless exercise of the warrants. The impact of these exercises was immaterial to the financial statements.

Separately, in 2014, we issued a warrant to purchase 56,875 shares of Series C convertible preferred stock at an exercise price of $2.64. The warrant was exercisable at any time for a period of seven years from the date of issuance. Immediately prior to and in connection with the completion of our initial public offering, this convertible preferred stock warrant, which was recorded as a financial liability, was converted to a warrant to purchase the same number of shares of common stock. Upon conversion, the financial liability was reclassified to the additional paid-in capital line item on our December 31, 2019 balance sheet. The warrant to purchase 56,875 shares of common stock remains outstanding as of December 31, 2019.

Investments - Schedule of Available-for-sale Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Short-Term Marketable Securities
Schedule of Available-for-Sale Securities [Line Items]
Amortized Cost	$ 479,791	$ 110,095
Unrealized Gain	503
Unrealized Loss	(4)	(107)
Estimated Fair Value	480,290	109,988
Long-Term Marketable Securities
Schedule of Available-for-Sale Securities [Line Items]
Amortized Cost	105,263
Unrealized Gain	181
Unrealized Loss	(9)
Estimated Fair Value	105,435
Commercial Paper \| Short-Term Marketable Securities
Schedule of Available-for-Sale Securities [Line Items]
Amortized Cost	121,866	16,887
Estimated Fair Value	121,866	16,887
U.S. Government Debt and Agency Securities \| Short-Term Marketable Securities
Schedule of Available-for-Sale Securities [Line Items]
Amortized Cost	285,963	85,722
Unrealized Gain	394
Unrealized Loss	(1)	(99)
Estimated Fair Value	286,356	85,623
U.S. Government Debt and Agency Securities \| Long-Term Marketable Securities
Schedule of Available-for-Sale Securities [Line Items]
Amortized Cost	90,750
Unrealized Gain	146
Unrealized Loss	(9)
Estimated Fair Value	90,887
Corporate Bonds \| Short-Term Marketable Securities
Schedule of Available-for-Sale Securities [Line Items]
Amortized Cost	71,962	7,486
Unrealized Gain	109
Unrealized Loss	(3)	(8)
Estimated Fair Value	72,068	$ 7,478
Corporate Bonds \| Long-Term Marketable Securities
Schedule of Available-for-Sale Securities [Line Items]
Amortized Cost	14,513
Unrealized Gain	35
Estimated Fair Value	$ 14,548

Property and Equipment, Net

12 Months Ended

Dec. 31, 2019

Property Plant And Equipment [Abstract]

Property and Equipment, Net

6.	Property and Equipment, Net

Property and equipment as of December 31, 2019 and 2018 consisted of the following (in thousands):

	December 31,
	2019			2018
Laboratory equipment	$	20,773		$	14,009
Computer equipment		2,450			1,819
Furniture and office equipment		1,568			1,300
Computer software		505			429
Construction in progress		1,852			3,942
Leasehold improvements		14,716			10,078
Build-to-suit asset cost		36,607			—
Property and equipment, at cost		78,471			31,577
Less: accumulated depreciation		(18,116	)		(12,452	)
Property and equipment, net	$	60,355		$	19,125

Depreciation expense was $6.1 million, $4.3 million and $4.1 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

14.	Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of our deferred tax assets and liabilities for the periods presented are as follows (in thousands):

	December 31,
	2019			2018
Deferred tax assets
Net operating losses	$	79,035		$	56,555
Tax credit carryforward		11,152			6,709
Non qualifying stock options		9,150			7,861
Deferred rent		11,755			1,925
Other		3,598			2,598
Total deferred tax assets		114,690			75,648
Valuation allowance		(100,906	)		(70,722	)
Deferred tax assets, net of valuation allowance		13,784			4,926
Deferred tax liabilities
Tangible and intangible assets		(13,784	)		(4,926	)
Net deferred taxes	$	—		$	—

ASC Topic 740, Income Taxes, requires that the tax benefit of net operating losses, temporary differences and credit carryforwards be recorded as an asset to the extent that management assesses that realization is “more likely than not.” Realization of the future tax benefits is dependent on our ability to generate sufficient taxable income within the carryforward period. Because of our history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has provided a valuation allowance. The valuation allowance increased by $30.2 million and $14.0 million during the years ended December 31, 2019 and 2018, respectively.

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“TCJA”) was signed into law, making significant changes to the Internal Revenue Code, including a decrease in the federal corporate tax rate from 35% to 21%. Taxpayers are required to recognize the effect of tax law changes in the period of enactment. The re-measurement resulted in a total decrease in these net assets equal to $25.0 million, which was fully offset by a corresponding reduction in the valuation allowance. By December 31, 2018, we completed our assessment of the impact of the changes due to the TCJA and the provisional amounts recorded are final.

Federal tax laws impose substantial restrictions on the utilization of net operating loss and credit carryforwards in the event of an ownership change, as defined in Section 382 of the Internal Revenue Code. Accordingly, our ability to utilize these carryforwards may be limited due to such ownership change. We have completed a Section 382 analysis for approximately $225.4 million of our federal operating losses and there are no permanent limitations on the utilization of our federal net operating losses as of December 31, 2018. Under the newly enacted federal income tax law, federal net operating losses incurred in 2018 and in future years may be carried forward indefinitely, but the deductibility of such federal net operating losses is limited. Net operating losses generated prior to 2018 are eligible to be carried forward up to 20 years. As of December 31, 2019, we had U.S. federal net operating losses of $65.1 million and U.S. federal tax credits of $11.0 million. The tax credit and net operating loss carryforwards will begin to expire in 2028.

The effective tax rate of our provision for income taxes differs from the federal statutory rate for the periods presented as follows:

	Year Ended December 31,
	2019			2018			2017
Statutory rate		21.0	%		21.0	%		34.0	%
State tax		8.1			5.5			1.8
Stock compensation		9.8			0.5			(1.7	)
Permanent items		(1.0	)		0.5			(0.1	)
Credits		6.1			2.7			2.7
TCJA change in federal rate		—			—			(58.4	)
Other		0.3			0.1			(0.6	)
Change in valuation allowance		(44.3	)		(30.3	)		22.3
Total		0.0	%		0.0	%		0.0	%

We recognize, in our financial statements, the effect of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. We had unrecognized tax benefits of approximately $2.1 million as of December 31, 2019. A reconciliation of the beginning and ending amounts of unrecognized tax benefits during the years ended December 31, 2019, 2018 and 2017 are as follows (in thousands):

Balance at December 31, 2016	$	844
Additions in 2017		187
Balance at December 31, 2017		1,031
Additions in 2018		229
Balance at December 31, 2018		1,260
Additions in 2019		792
Balance at December 31, 2019	$	2,052

Unrecognized tax benefits may change during the next twelve months for items that arise in the ordinary course of business. We do not anticipate a material change to our unrecognized tax benefits over the next twelve months that would have an adverse effect on our operating results.

We recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. We had no accrued interest or penalties related to uncertain tax positions as of December 31, 2019 and 2018.

We file federal and certain state income tax returns, which provide varying statutes of limitations on assessments. However, because of net operating loss carryforwards, substantially all tax years since inception remain open to federal and state tax examination.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2019

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 December 31, 2019 and 2018 consisted of the following (in thousands):

	December 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Acquired developed technology	$	20,000	$	(8,301	)	$	11,699
Purchased intellectual property		325		(96	)		229
Balance at December 31, 2019	$	20,325	$	(8,397	)	$	11,928

	December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Acquired developed technology	$	20,000	$	(6,636	)	$	13,364
Purchased intellectual property		325		(63	)		262
Balance at December 31, 2018	$	20,325	$	(6,699	)	$	13,626

The developed technology was acquired in connection with our acquisition of Sequenta, Inc. (“Sequenta”) in 2015. The remaining balance of the acquired technology and the purchased intellectual property is expected to be amortized over the next 7.0 years.

As of December 31, 2019, expected future amortization expense for intangible assets was as follows (in thousands):

2020	$	1,703
2021		1,699
2022		1,699
2023		1,699
2024		1,703
Thereafter		3,425
Total future amortization expense	$	11,928

Net Loss Per Share Attributable to Common Shareholders - Weighted-Average Common Stock Equivalents were Excluded From Calculation of Diluted Net Loss Per Share Attributable to Common Shareholders (Details) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	63,377,132	107,597,400	101,230,264
Convertible Preferred Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	46,104,469	92,783,867	88,473,431
Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	17,183,546	14,701,626	12,644,926
Unvested Restricted Stock Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	4,952
Common Stock Warrants
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	55,961	55,032	55,032
Convertible Preferred Stock Warrants
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	28,204	56,875	56,875

Goodwill and Intangible Assets - Schedule of Future Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
2020	$ 1,703
2021	1,699
2022	1,699
2023	1,699
2024	1,703
Thereafter	3,425
Net Carrying Amount	$ 11,928	$ 13,626

Significant Accounting Policies - Additional Information (Details)	12 Months Ended
	Dec. 31, 2019 USD ($) Performance_Obligation Segment shares	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2014 USD ($) $ / shares shares
Significant Accounting Policies [Line Items]
Restricted cash	$ 2,138,000	$ 61,000
Unbilled receivables	2,400,000	400,000
Impairment of goodwill	0
Impairment losses on intangible assets	$ 0
Warrants issued to purchase stock \| shares	56,875
Fair value adjustment of warrants	$ 2,266,000	(6,000)	$ (23,000)
Advertising expenses	$ 6,600,000	$ 3,500,000	$ 1,800,000
Number of operating segment \| Segment	1
Accounting Standards Update 2016-09
Significant Accounting Policies [Line Items]
Cumulative impact to accumulated deficit	$ 100,000
Accounting Standards Update 2016-02
Significant Accounting Policies [Line Items]
Operating leases future minimum lease payments	$ 54,100,000
Sequencing Revenue
Significant Accounting Policies [Line Items]
Number of revenue performance obligations \| Performance_Obligation	2
Sequencing Revenue From Coverage Policy
Significant Accounting Policies [Line Items]
Revenue recognized	$ 1,600,000
Sequencing Revenue From Test Deliver
Significant Accounting Policies [Line Items]
Revenue recognized	400,000
Series C Convertible Preferred Stock
Significant Accounting Policies [Line Items]
Warrants issued to purchase stock \| shares				56,875
Weighted-average exercise price of warrants \| $ / shares				$ 2.64
Line of credit facility				$ 5,000,000.0
Fair value adjustment of warrants	2,300,000
Financial liabilities	2,600,000
Property and Equipment, Net
Significant Accounting Policies [Line Items]
Building costs	36,600,000
Additional Paid In Capital
Significant Accounting Policies [Line Items]
Deferred offering costs	$ 5,000,000.0

Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Summary of Reserved Shares of Common Stock

We have reserved shares of common stock for the following as of December 31, 2019:

Shares issuable upon the exercise of outstanding common stock options and the vesting of outstanding common restricted stock units granted			16,651,154
Shares available for future grant under the 2019 Plan			15,396,254
Shares available for future grant under the Employee Stock Purchase Plan			1,551,917
Shares to be issued upon conversion of a common stock warrant			56,875
Total shares of common stock reserved for future issuance			33,656,200

Significant Accounting Policies - Summary of Useful Lives Assigned to Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2019
Laboratory Equipment \| Minimum
Property Plant And Equipment [Line Items]
Property and equipment, useful lives	3 years
Laboratory Equipment \| Maximum
Property Plant And Equipment [Line Items]
Property and equipment, useful lives	7 years
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, useful lives	Shorter of estimated useful life or remaining lease term
Computer Equipment and Software
Property Plant And Equipment [Line Items]
Property and equipment, useful lives	3 years
Furniture and Office Equipment \| Minimum
Property Plant And Equipment [Line Items]
Property and equipment, useful lives	5 years
Furniture and Office Equipment \| Maximum
Property Plant And Equipment [Line Items]
Property and equipment, useful lives	10 years

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2019	Feb. 21, 2020	Jun. 28, 2019
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Trading Symbol	ADPT
Entity Registrant Name	ADAPTIVE BIOTECHNOLOGIES CORPORATION
Entity Central Index Key	0001478320
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Public Float			$ 2,009,000,000
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Title of 12(b) Security	Common stock, par value $0.0001 per share
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		126,317,893
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	1551 Eastlake Avenue East
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98102
City Area Code	(206)
Local Phone Number	659-0067
Document Annual Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	WA
Documents Incorporated by Reference	The information required by Part III of this Annual Report on Form 10-K, to the extent not set forth herein, is incorporated herein by reference from the registrant’s definitive proxy statement relating to the Annual Meeting of Shareholders to be held in 2020.

Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Payables And Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities as of December 31, 2019 and 2018 consisted of the following (in thousands):

	December 31,
	2019		2018
Accrued legal and professional fees	$	1,041	$	1,634
Accrued royalties		78		31
Accrued travel and entertainment		157		73
Accrued tax liabilities		2,062		111
Purchases of property and equipment		555		165
Other		478		548
Total accrued liabilities	$	4,371	$	2,562

Microsoft Collaboration Agreement

12 Months Ended

Dec. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Microsoft Collaboration Agreement

13.	Microsoft Collaboration Agreement

Summary of Agreement

In December 2017, we entered into a collaboration agreement with Microsoft Corporation (“Microsoft Agreement”) to computationally derive a comprehensive TCR antigen map for purposes of developing a universal diagnostic based on a single blood test.

Contemporaneously with the Microsoft Agreement, we entered into a separate agreement to use Microsoft’s Azure cloud services at standard volume pricing with a minimum Azure consumption requirement of $12.0 million over the seven-year term of the Microsoft Agreement, which we expect to meet in the ordinary course of business.

In addition, contemporaneously with entering into the Microsoft Agreement, Microsoft made a preferred stock investment of approximately $45.0 million as a part of our Series F-1 convertible preferred stock issuance.

Summary of Accounting

The terms of the Microsoft Agreement meet the criteria under ASC Topic 808, Collaborative Arrangements (“ASC 808”), as both parties are active participants in the activity and are exposed to significant risks and rewards dependent on the commercial success of the activity. ASC 808 does not provide guidance on how to account for the activities under the collaboration, and we determined that Microsoft did not meet the definition of a customer under ASC 606. Accordingly, we looked to other guidance to determine the accounting for the respective elements.

We determined that the preferred stock issuance and commitment to use Microsoft’s Azure cloud services were made at terms consistent with market rates. All consideration received as part of the Series F-1 convertible preferred stock issuance was accounted for as part of the Series F-1 preferred stock issuance. Since the commitment to use Microsoft’s Azure cloud services was at market terms and we expect to meet the commitment in the ordinary course of business during the seven-year term, we record the expenses in the period in which the services are consumed. These costs are recorded in the statement of operations based on the underlying activities for which they support.

The remaining elements of the agreement were highly interrelated, so we evaluated them in the aggregate to determine the appropriate accounting application. Specifically, we determined that the transfer of license rights between the parties, our commitment to provide data and immunomics, diagnostic and bioinformatics expertise to Microsoft and Microsoft’s commitment to provide machine learning software and related development services to us were highly interrelated because they were necessary for the parties to perform the activities under the Microsoft Agreement and, therefore, should be evaluated as one unit of account.

We accounted for these collaboration activities by analogy to ASC Topic 845, Nonmonetary Transactions, and determined that major uncertainties exist about the realizability of the value that would be assigned to an asset received from or provided to Microsoft under the collaboration and, therefore, fair value could not be reliably measured. As a result, we did not recognize any non-monetary assets or corresponding non-monetary income or expenses pertaining to the rights provided to us or to be received by us under the Microsoft Agreement.

Retirement Plan - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Compensation And Retirement Disclosure [Abstract]
Employees maximum annual contribution of their compensation	100.00%
Employer discretionary contribution amount	$ 0	$ 0	$ 0

Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Convertible preferred stock par value	$ 0.0001	$ 0.0001
Convertible preferred stock authorized	0	93,762,517
Convertible preferred stock issued	0	92,790,094
Convertible preferred stock outstanding	0	92,790,094
Convertible preferred stock aggregate liquidation preference	$ 0	$ 572,866
Preferred stock par value	$ 0.0001	$ 0.0001
Preferred stock authorized	10,000,000	0
Preferred stock issued	0	0
Preferred stock outstanding	0	0
Common stock par value	$ 0.0001	$ 0.0001
Common stock authorized	340,000,000	131,000,000
Common stock issued	125,238,142	12,841,536
Common stock outstanding	125,238,142	12,841,536

Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
Statements of Cash Flows - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating activities
Net loss	$ (68,606)	$ (46,447)	$ (42,831)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation expense	6,093	4,301	4,102
Share-based compensation expense	13,124	11,149	7,009
Intangible assets amortization	1,698	1,699	1,694
Investment amortization	(4,463)	(1,214)	342
Asset impairment		17	193
Loss (gain) on equipment disposals	316	(40)	125
Fair value adjustment of convertible preferred stock warrant	2,266	(6)	(23)
Other	43	5	6
Changes in operating assets and liabilities:
Accounts receivable, net	(7,817)	775	(2,427)
Inventory	(1,231)	(3,046)	(2,697)
Prepaid expenses and other current assets	(8,576)	(318)	(327)
Accounts payable and accrued liabilities	6,149	2,185	(1,517)
Deferred rent	78	(488)	(1,058)
Deferred revenue	266,927	(649)	2,527
Other	(597)	(182)	24
Net cash provided by (used in) operating activities	205,404	(32,259)	(34,858)
Investing activities
Purchases of property and equipment	(11,200)	(6,318)	(2,421)
Proceeds from sales of equipment		19	207
Purchases of intangible assets			85
Purchases of marketable securities	(884,217)	(146,503)	(125,182)
Proceeds from sales and maturities of marketable securities	413,720	153,538	163,913
Net cash (used in) provided by investing activities	(481,697)	736	36,432
Financing activities
Proceeds from issuance of convertible preferred stock, net of issuance costs			49,827
Proceeds from exercise of stock options	4,055	1,268	222
Proceeds from initial public offering, net of underwriting discounts and commissions	320,850
Payment of deferred initial public offering costs	(4,986)
Proceeds from issuance of common stock upon the exercise of a common stock warrant	9
Other	(12)	(20)	(15)
Net cash provided by financing activities	319,916	1,248	50,034
Net increase (decrease) in cash, cash equivalents and restricted cash	43,623	(30,275)	51,608
Cash, cash equivalents and restricted cash at beginning of year	55,091	85,366	33,758
Cash, cash equivalents and restricted cash at end of year	98,714	55,091	85,366
Noncash investing and financing activities
Purchases of equipment included in accounts payable and accrued liabilities	773	832	$ 41
Landlord-funded leasehold improvements		$ 2,419
Noncash additions to property through lease financing arrangements	36,607
Conversion of convertible preferred stock to common stock upon closing of initial public offering	561,931
Conversion of convertible preferred stock warrant to common stock warrant upon closing of initial public offering	$ 2,602

Organization and Description of Business - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Jul. 01, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Subsidiary Or Equity Method Investee [Line Items]
Convertible preferred stock outstanding		0	92,790,094
Initial share reserve		33,656,200
2019 Plan
Subsidiary Or Equity Method Investee [Line Items]
Initial share reserve	15,519,170
Convertible Preferred Stock
Subsidiary Or Equity Method Investee [Line Items]
Convertible preferred stock outstanding		93,039,737	92,790,094	92,656,029	87,797,854
Initial Public Offering
Subsidiary Or Equity Method Investee [Line Items]
Shares issued	17,250,000
Public offering price	$ 20.00
Net proceeds	$ 315.9
Underwriting discounts, commissions and other costs	24.1
Offering expenses	$ 5.0

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Schedule of Concentrations of Risk Percentage

	Revenue			Accounts Receivable, Net
	Year Ended December 31,			December 31,
	2019	2018	2017	2019	2018
Customer A	13.9%	18.4%	31.4%	41.8%	*%
Customer B	*	13.5	*	*	15.1
Customer C	*	15.4	*	*	13.2
Genentech, Inc.	42.1	*	*	*	*
* less than 10%

Summary of Useful Lives Assigned to Property and Equipment

Useful lives assigned to property and equipment are as follows:


Laboratory equipment		3 to 7 years
Leasehold improvements		Shorter of estimated useful life or remaining lease term
Computer equipment and software		3 years
Furniture and office equipment		5 to 10 years

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments And Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

As of December 31, 2019, future minimum lease payments, exclusive of operating and maintenance costs and inclusive of payments to be made under the financing obligation, were as follows (in thousands):

2020	$	4,352
2021		7,805
2022		11,638
2023		11,320
2024		11,641
Thereafter		97,147
Total future minimum lease payments	$	143,903

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

10.	Commitments and Contingencies

Operating Leases

We have entered into various non-cancelable lease agreements for our office and laboratory spaces.

In July 2011, we entered into a non-cancelable lease agreement with an, at the time, minority shareholder for our current headquarters in Seattle, Washington. The lease terms were subsequently amended multiple times, most recently in August 2019, when we expanded the existing premises. Rent obligations of the expanded premises commence four months after the landlord delivers the expanded premises to us for construction of certain tenant improvements, and the lease term for both the existing premises and the expanded premises ends 142 months after the commencement date of the new lease mentioned below, subject to our option to twice extend the lease for five years. If the new lease mentioned below does not commence, the lease term for the existing premises and the expanded premises ends March 31, 2024. The amended lease also requires us to pay additional amounts for operating and maintenance expenses.

In August 2019, we entered into an operating lease to rent 100,000 square feet in a to-be-constructed building in Seattle, Washington. Shell construction is expected to be completed in 2020. The lease term commences on the date that the landlord delivers the premises to us for construction of certain tenant improvements. Rent obligations commence 10 months thereafter, and the lease term ends 142 months from the date rent commences, subject to our option to twice extend the lease for five years. The lease is cancellable under certain circumstances if the landlord fails to deliver the premises to us by May 1, 2021. We plan to occupy the new building in 2021, once interior construction is finished. In connection with the lease, the landlord agreed to fund $20.0 million in improvements. The lease also requires us to pay additional amounts for operating and maintenance expenses. Furthermore, in connection with the lease, we entered into a letter of credit of $2.1 million with one of our existing financial institutions.

In October 2019, we entered into an agreement to lease approximately 14,750 square feet in a separate Seattle, Washington location, pursuant to a lease expiring in October 2029, which is subject to our ability to exercise an early termination right after the third year. In connection with the lease, the landlord has agreed to provide a tenant improvement allowance in the maximum amount of $0.7 million. The lease also requires us to pay additional amounts for operating expenses.

In October 2016, we entered into an agreement to sublease certain laboratory and office space in South San Francisco, California. The lease commenced in October 2016 and terminated in March 2019. The lease required us to pay additional amounts for operating and maintenance expenses.

In April 2018, we entered into a lease agreement to lease space in South San Francisco, California. The lease term is through March 2026 and provides for one five-year option. We will be responsible for our share of allocable operating expenses, tax expenses and utilities cost during the duration of the lease term. In connection with the lease, the landlord funded agreed-upon improvements prior to the lease commencement date of December 12, 2018. The landlord was solely responsible for the $2.4 million cost of such improvements, which we recognized as a leasehold improvement asset that depreciates beginning from the commencement date of the initial lease term, and a corresponding leasehold incentive obligation, which is amortized over the life of the lease.

2020	$	4,352
2021		7,805
2022		11,638
2023		11,320
2024		11,641
Thereafter		97,147
Total future minimum lease payments	$	143,903

Rent expenses, inclusive of operating and maintenance costs, were $5.3 million, $4.1 million and $3.7 million during the year ended December 31, 2019, 2018 and 2017, respectively.

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 are not currently party to any material legal proceedings.

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.

Revenue (Tables)

12 Months Ended

Dec. 31, 2019

Revenue From Contract With Customer [Abstract]

Schedule of Revenue Disaggregated by Type of Products and Services

The following table presents our revenue disaggregated by type of products and services for the periods presented (in thousands):

	Year Ended December 31,
	2019		2018		2017
Sequencing revenue	$	43,519	$	32,978	$	22,759
Development revenue
Development support		39,552		12,685		15,689
Regulatory milestones		2,000		10,000		—
Total development revenue		41,552		22,685		15,689
Total revenue	$	85,071	$	55,663	$	38,448

Deferred Revenue

12 Months Ended

Dec. 31, 2019

Revenue From Contract With Customer [Abstract]

Deferred Revenue

9.	Deferred Revenue

Deferred revenue by revenue classification as of December 31, 2019 and 2018 was as follows (in thousands):

	December 31,
	2019		2018
Current deferred revenue
Sequencing	$	12,482	$	11,238
Development		48,512		1,457
Total current deferred revenue		60,994		12,695
Non-current deferred revenue
Sequencing		1,459		516
Development		217,873		188
Total non-current deferred revenue		219,332		704
Total current and non-current deferred revenue	$	280,326	$	13,399

Genentech deferred revenue represents $48.1 million and $216.8 million of the current and non-current development deferred revenue balances, respectively, at December 31, 2019. In general, the current amounts will be recognized as revenue within 12 months and the non-current amounts will be recognized as revenue over a period of approximately seven to eight years. 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 development activities.

Changes in deferred revenue during the year ended December 31, 2019 were as follows (in thousands):

Deferred revenue balance at December 31, 2018	$	13,399
Additions to deferred revenue during the period		317,551
Revenue recognized during the period		(50,624	)
Deferred revenue balance at December 31, 2019	$	280,326

As of December 31, 2019, $8.5 million was recognized that was included in the deferred revenue balance at December 31, 2018. As a result of cancelled customer sequencing contracts, we recognized $1.9 million of sequencing revenue during the year ended December 31, 2019.

Net Loss Per Share Attributable to Common Shareholders

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Net Loss Per Share Attributable to Common Shareholders

15.	Net Loss Per Share Attributable to Common Shareholders

Net Loss Per Share

The following table sets forth the computation of the basic and diluted net loss per share attributable to common shareholders for the year ended December 31, 2019, 2018 and 2017, respectively (in thousands, except share and per share amounts):

	Year Ended December 31,
	2019			2018			2017
Net loss	$	(68,606	)	$	(46,447	)	$	(42,831	)
Fair value adjustments to redemption value for Series E-1 convertible preferred stock options		(964	)		102			135
Net loss attributable to common shareholders, basic and diluted	$	(69,570	)	$	(46,345	)	$	(42,696	)
Weighted-average shares used in computing net loss per share		69,165,315			12,629,778			12,196,998
Net loss per share attributable to common shareholders, basic and diluted	$	(1.01	)	$	(3.67	)	$	(3.50	)

Since we were in a loss position for all periods presented, basic net loss per share attributable to common shareholders is the same as diluted net loss per share attributable to 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 common shareholders for the year ended December 31, 2019, 2018 and 2017, respectively, as they had an anti-dilutive effect:

	Year Ended December 31,
	2019		2018		2017
Convertible preferred stock (on as if converted basis)		46,104,469		92,783,867		88,473,431
Stock options issued and outstanding		17,183,546		14,701,626		12,644,926
Unvested restricted stock units		4,952		—		—
Common stock warrants		55,961		55,032		55,032
Convertible preferred stock warrants		28,204		56,875		56,875
Total		63,377,132		107,597,400		101,230,264

Statements of Operations - USD ($) $ in Thousands	12 Months Ended
Statements of Operations - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenue
Total revenue	$ 85,071	$ 55,663	$ 38,448
Operating expenses
Cost of revenue	22,274	19,668	15,680
Research and development	70,705	39,157	31,995
Sales and marketing	38,453	24,486	16,765
General and administrative	30,332	20,409	15,949
Amortization of intangible assets	1,698	1,699	1,694
Restructuring			840
Total operating expenses	163,462	105,419	82,923
Loss from operations	(78,391)	(49,756)	(44,475)
Interest and other income, net	9,785	3,309	1,644
Net loss	(68,606)	(46,447)	(42,831)
Fair value adjustment to Series E-1 convertible preferred stock options	(964)	102	135
Net loss attributable to common shareholders	$ (69,570)	$ (46,345)	$ (42,696)
Net loss per share attributable to common shareholders, basic and diluted	$ (1.01)	$ (3.67)	$ (3.50)
Weighted-average shares used in computing net loss per share attributable to common shareholders, basic and diluted	69,165,315	12,629,778	12,196,998
Sequencing Revenue
Revenue
Total revenue	$ 43,519	$ 32,978	$ 22,759
Development Revenue
Revenue
Total revenue	$ 41,552	$ 22,685	$ 15,689

Deferred Revenue - Additional Information (Details) - USD ($) $ in Thousands		12 Months Ended
	Dec. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Disaggregation Of Revenue [Line Items]
Current deferred revenue	$ 60,994	$ 60,994	$ 12,695
Deferred revenue, less current portion	219,332	219,332	704
Revenue recognized	8,500	(50,624)
Development Revenue
Disaggregation Of Revenue [Line Items]
Current deferred revenue	48,512	48,512	1,457
Deferred revenue, less current portion	217,873	217,873	188
Development Revenue \| Genentech, Inc.
Disaggregation Of Revenue [Line Items]
Current deferred revenue	48,100	48,100
Deferred revenue, less current portion	216,800	216,800
Sequencing Revenue
Disaggregation Of Revenue [Line Items]
Current deferred revenue	12,482	12,482	11,238
Deferred revenue, less current portion	$ 1,459	1,459	$ 516
Revenue recognized		$ 1,900

Net Loss Per Share Attributable to Common Shareholders - Computation of the Basic and Diluted Net Loss Per Share Attributable to Common Shareholders (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Net loss	$ (68,606)	$ (46,447)	$ (42,831)
Fair value adjustments to redemption value for Series E-1 convertible preferred stock options	(964)	102	135
Net loss attributable to common shareholders	$ (69,570)	$ (46,345)	$ (42,696)
Weighted-average shares used in computing net loss per share	69,165,315	12,629,778	12,196,998
Net loss per share attributable to common shareholders, basic and diluted	$ (1.01)	$ (3.67)	$ (3.50)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Microsoft Collaboration Agreement - Additional Information (Details) - USD ($)	1 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
preferred stock investment
Microsoft Collaboration Agreement
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Minimum service consumption requirement amount	$ 12,000,000.0
Minimum service consumption requirement term	7 years
Microsoft Collaboration Agreement \| Series F-1 Convertible Preferred Stock
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
preferred stock investment	$ 45,000,000.0

Equity Incentive Plans

12 Months Ended

Dec. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity Incentive Plans

12.	Equity Incentive Plans

Sequenta 2008 Stock Plan, as amended

In connection with our acquisition of Sequenta in January 2015, we assumed Sequenta’s Equity Incentive Plan (“2008 Plan”), including all outstanding options and shares available for future issuance under the 2008 Plan, which, prior to the completion of our initial public offering, were all exercisable for Series E-1 convertible preferred stock. Upon completion of our initial public offering, outstanding options are now exercisable for common stock. While no shares are available for future issuance under this plan, the 2008 Plan continues to govern outstanding equity awards granted thereunder.

Adaptive 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 option 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 as determined by our board of directors. 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 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 was approved by our shareholders on June 13, 2019 and, pursuant to the resolutions adopted by our board of directors, became effective with an initial reserve of 15,519,170 shares immediately prior to and contingent upon the closing of our initial public offering. The 2019 Plan provides for the issuance of awards in the form of options and other share-based awards for employees, directors and consultants. Under the 2019 Plan, the option exercise price per share shall not be less than the fair market value of a share of stock on the grant date of the option, 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, 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 option grants made to non-employee directors, stock options granted under the 2019 Plan generally vest over a four-year period, subject to continuous service through each applicable vesting date. As of December 31, 2019, we have authorized 15,704,914 shares of common stock for issuance under the 2019 Plan.

Changes in shares available for grant during the year ended December 31, 2019 were as follows:

	Shares Available for Grant
Shares available for grant at December 31, 2018		6,827,996
2009 Plan reserve cancelled		(3,155,968	)
2019 Plan reserve established		15,519,170
Options and restricted stock units granted		(4,207,301	)
Options and restricted stock units forfeited or cancelled		412,357
Shares available for grant at December 31, 2019		15,396,254

Stock option activity under the 2008 Plan, 2009 Plan and 2019 Plan during the year ended December 31, 2019, 2018 and 2017 was as follows:

	Shares Subject to Outstanding Options			Weighted- Average Exercise Price per Share		Aggregate Intrinsic Value (in thousands)
Options outstanding at December 31, 2016		12,919,342		$	3.28	$	41,952
Options granted		1,604,496			6.27
Options forfeited or cancelled		(2,207,933	)		5.51
Options exercised		(226,211	)		0.98
Options outstanding at December 31, 2017		12,089,694			3.56		36,165
Options granted		4,764,625			6.55
Options forfeited or cancelled		(929,519	)		4.86
Options exercised		(766,870	)		1.66
Options outstanding at December 31, 2018		15,157,930			4.52		41,690
Options granted		4,194,491			9.72
Options forfeited or cancelled		(412,357	)		6.24
Options exercised		(2,293,410	)		1.97
Options outstanding at December 31, 2019		16,646,654		$	6.14	$	398,379
Options vested and exercisable at December 31, 2019		10,101,496		$	4.58	$	255,939

The weighted-average remaining contractual life for options outstanding at December 31, 2019 was 6.8 years. The weighted-average remaining contractual life for vested and exercisable options outstanding at December 31, 2019 was 5.5 years.

The weighted-average grant date fair value of options granted was $6.87, $4.15 and $4.00 during the years ended December 31, 2019, 2018 and 2017, respectively. The total intrinsic value of options exercised was $39.1 million, $3.8 million and $1.3 million during the years ended December 31, 2019, 2018 and 2017, respectively.

As of December 31, 2019, $0.5 million was included in the prepaid expenses and other current assets line item on our balance sheet for unsettled cash proceeds related to options exercised during the year ended December 31, 2019.

As of December 31, 2016, there were 880,487 RSUs outstanding. During the year ended December 31, 2017, these RSUs were forfeited due to the related employee’s termination prior to the occurrence of both a service and an event condition. During the year ended December 31, 2019, we granted 12,810 shares of RSUs at a weighted-average grant date fair value per share of $41.63; 8,310 of those shares, with a weighted-average grant date fair value per share of $41.63, vested. As of December 31, 2019, 4,500 shares of RSUs, with a weighted-average grant date fair value per share of $41.63, remain nonvested and outstanding.

For valuations of RSU grants made after the closing of our initial public offering, our board of directors determines the fair value of each share of common stock 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.

Fair Value of Options Granted

The estimated fair value of options granted during the year ended December 31, 2019, 2018 and 2017 was estimated using the Black-Scholes option-pricing model with the following assumptions:

	Year Ended December 31,
	2019		2018		2017
Grant date fair value	$7.80 - $47.81		$6.55		$6.27 - $6.32
Expected term (in years)	5.27 - 6.08		6.08 - 10.00		6.08 - 10.00
Risk-free interest rate	1.4% - 2.5%		2.6% - 3.0%		1.9% - 2.4%
Expected volatility	64.3% - 72.9%		65.0% - 69.2%		67.3% - 70.5%
Expected dividend yield		—		—		—

The weighted-average volatility used in the fair value calculations of options granted during the year ended December 31, 2019, 2018 and 2017 was 68.1%, 68.1% and 70.2%, respectively.

The determination of the fair value of stock options on the date of grant using a Black-Scholes option-pricing model is affected by the estimated 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—Prior to the closing of our initial public offering, the grant date fair value of our common stock was determined by our board of directors with input from management using valuation methodologies which utilize certain assumptions, including probability weighting of events, volatility, time to liquidation, a risk-free interest rate and an assumption for a discount for lack of marketability (Level 3 inputs). In determining the fair value of our common stock, the methodologies used to estimate the enterprise value were performed using methodologies, approaches and assumptions consistent with the American Institute of Certified Public Accountants Accounting and Valuation Guide, Valuation of Privately-Held-Company Equity Securities Issued as Compensation. For valuations of grants made after the closing of our initial public offering, our board of directors determines the fair value of each share of common stock 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 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 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 term of the options.

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

Share-based compensation expense of $13.1 million, $11.1 million and $7.0 million was recognized during the year ended December 31, 2019, 2018 and 2017, respectively.

The compensation costs related to stock options and RSUs for the year ended December 31, 2019, 2018 and 2017, respectively, are included on our statements of operations as follows (in thousands):

	Year Ended December 31,
	2019		2018		2017
Cost of revenue	$	555	$	398	$	237
Research and development		3,934		2,896		2,375
Sales and marketing		3,480		2,891		1,344
General and administration		5,155		4,964		3,053
Total share-based compensation expense	$	13,124	$	11,149	$	7,009

During the year ended December 31, 2018, there was one employee option modification to extend the option exercise period which resulted in incremental stock compensation of $0.5 million. The total grant date fair value of the stock options and RSUs that vested during the years ended December 31, 2019, 2018 and 2017, excluding the impact of modifications, approximated the share-based compensation expense recorded during the respective periods.

At December 31, 2019, unrecognized share-based compensation expense related to unvested stock options was $33.3 million, which is expected to be recognized over a remaining weighted-average period of 2.9 years. Additionally, at December 31, 2019, unrecognized share-based compensation expense related to unvested RSUs was $0.2 million, which is expected to be recognized over a remaining weighted-average period of 0.5 years.

Deferred Revenue - Schedule of Changes in Deferred Revenue (Details) - USD ($) $ in Thousands		12 Months Ended
	Dec. 31, 2019	Dec. 31, 2019
Revenue From Contract With Customer [Abstract]
Deferred revenue balance at December 31, 2018		$ 13,399
Additions to deferred revenue during the period		317,551
Revenue recognized during the period	$ 8,500	(50,624)
Deferred revenue balance at December 31, 2019	$ 280,326	$ 280,326

Investments (Tables)

12 Months Ended

Dec. 31, 2019

Investments Debt And Equity Securities [Abstract]

Schedule of Available-for-sale Investments

Available-for-sale investments consisted of the following as of December 31, 2019 and 2018 (in thousands):

	December 31, 2019
	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
Short-term marketable securities
Commercial paper	$	121,866	$	—	$	—		$	121,866
U.S. government debt and agency securities		285,963		394		(1	)		286,356
Corporate bonds		71,962		109		(3	)		72,068
Total short-term marketable securities	$	479,791	$	503	$	(4	)	$	480,290
Long-term marketable securities
U.S. government debt and agency securities	$	90,750	$	146	$	(9	)	$	90,887
Corporate bonds		14,513		35		—			14,548
Total long-term marketable securities	$	105,263	$	181	$	(9	)	$	105,435

	December 31, 2018
	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
Short-term marketable securities
Commercial paper	$	16,887	$	—	$	—		$	16,887
U.S. government debt and agency securities		85,722		—		(99	)		85,623
Corporate bonds		7,486		—		(8	)		7,478
Total short-term marketable securities	$	110,095	$	—	$	(107	)	$	109,988

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

All the commercial paper, U.S. government debt and agency securities and corporate bonds designated as short-term marketable securities have an effective maturity date that is less than one year from the respective 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 balance sheet date.

The following table presents the gross unrealized holding losses and fair value for investments in an unrealized loss position, and the length of time that individual securities have been in a continuous loss position, as of December 31, 2019 (in thousands):

	Less Than 12 Months					12 Months Or Greater
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. government debt and agency securities	$	30,196	$	(10	)	$	—	$	—
Corporate bonds		5,010		(3	)		—		—
Total available-for-sale securities	$	35,206	$	(13	)	$	—	$	—

Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Significant Accounting Policies

2.	Significant Accounting Policies

Basis of Presentation and Use of Estimates

Reclassifications

Cash and Cash Equivalents

Restricted Cash

Investments in Marketable Securities

Concentrations of Risk

	Revenue			Accounts Receivable, Net
	Year Ended December 31,			December 31,
	2019	2018	2017	2019	2018
Customer A	13.9%	18.4%	31.4%	41.8%	*%
Customer B	*	13.5	*	*	15.1
Customer C	*	15.4	*	*	13.2
Genentech, Inc.	42.1	*	*	*	*
* less than 10%

Accounts Receivable

Inventory

Property and Equipment

Useful lives assigned to property and equipment are as follows:


Laboratory equipment		3 to 7 years
Leasehold improvements		Shorter of estimated useful life or remaining lease term
Computer equipment and software		3 years
Furniture and office equipment		5 to 10 years

Goodwill

Intangible Assets

Intangible assets acquired in a business combination are recognized separately from goodwill and are initially recognized at their fair value at the acquisition date, which is regarded as their cost.

Restructuring

Leases

Operating Lease Arrangements

Lease Financing Arrangements

Fair Value of Financial Instruments

•

Level 1: Quoted prices in active markets for identical assets or liabilities.

•

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

A financial instrument categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

We did not have any nonfinancial assets or liabilities that were measured or disclosed at fair value on a recurring basis as of December 31, 2019 or 2018.

Convertible Preferred Stock Warrant Liability

Revenue Recognition

Overview

Sequencing Revenue

Development Revenue

Deferred Offering Costs

Contract Balances

Share-Based Compensation

Advertising

Advertising costs are expensed as incurred. Advertising expenses were $6.6 million, $3.5 million and $1.8 million for the year ended December 31, 2019, 2018 and 2017, respectively.

Cost of Revenue

Research and Development Expenses

Sales and Marketing Expenses

Income Taxes

We recognize interest and penalties related to income tax matters as a component of tax expense.

Net Loss Per Share Attributable to Common Shareholders

Segment Information

Recently Adopted Accounting Pronouncements

New Accounting Pronouncements Not Yet Adopted

Fair Value Measurements

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

4.	Fair Value Measurements

The following tables set forth the fair value of financial assets and liabilities as of December 31, 2019 and 2018 that were measured at fair value on a recurring basis (in thousands):

	December 31, 2019
	Level 1		Level 2		Level 3		Total
Financial assets
Money market funds	$	88,683	$	—	$	—	$	88,683
Commercial paper		—		121,867		—		121,867
U.S. government debt and agency securities		—		377,243		—		377,243
Corporate bonds		—		86,615		—		86,615
Total financial assets	$	88,683	$	585,725	$	—	$	674,408

	December 31, 2018
	Level 1		Level 2		Level 3		Total
Financial assets
Money market funds	$	45,998	$	—	$	—	$	45,998
Commercial paper		—		16,887		—		16,887
U.S. government debt and agency securities		—		85,623		—		85,623
Corporate bonds		—		7,478		—		7,478
Total financial assets	$	45,998	$	109,988	$	—	$	155,986
Financial liabilities
Convertible preferred stock warrant liability	$	—	$	—	$	336	$	336
Total financial liabilities	$	—	$	—	$	336	$	336

Level 1 securities include highly liquid money market funds, 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, U.S. government agency securities, commercial paper and corporate bonds, and are valued based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. Level 3 liabilities that were measured at fair value on a recurring basis consisted of a convertible preferred stock warrant liability.

The fair value of the convertible preferred stock warrant liability was last calculated as of June 30, 2019, prior to reclassification to shareholders’ equity in connection with the completion of our initial public offering on July 1, 2019. The fair value was estimated using the Black-Scholes option-pricing model with the following inputs: (1) a fair value estimate of $48.30, (2) an expected term of 1.8 years, (3) a risk-free interest rate of 1.8%, (4) an expected volatility of 61.1% and (5) an expected dividend yield of zero. As of December 31, 2018, the fair value of the convertible preferred stock warrant liability was estimated using the Black-Scholes option-pricing model with the following inputs:


	December 31, 2018
Fair value estimate	$	8.27
Expected term (in years)		2.31
Risk-free interest rate		2.5	%
Expected volatility		55.3	%
Expected dividend yield		—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Deferred Revenue - Additional Information (Details1) - Genentech, Inc. - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01	Dec. 31, 2019
Minimum
Disaggregation Of Revenue [Line Items]
Deferred revenue, expected to be recognized	12 months
Maximum
Disaggregation Of Revenue [Line Items]
Deferred revenue, expected to be recognized	8 years

Fair Value Measurements - Additional Information (Details) - Convertible Preferred Stock Warrant Liability	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value liability valuation technique [Extensible List]	us-gaap:ValuationTechniqueOptionPricingModelMember	us-gaap:ValuationTechniqueOptionPricingModelMember
Fair Value Estimate
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value liability, measurement input	48.30	8.27
Measurement Input, Expected Term
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Expected term (in years)	1 year 9 months 18 days	2 years 3 months 21 days
Measurement Input, Risk Free Interest Rate
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value liability, measurement input	0.018	0.025
Measurement Input, Price Volatility
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value liability, measurement input	0.611	0.553
Measurement Input, Expected Dividend Rate
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Fair value liability, measurement input	0

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2019

Property Plant And Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment as of December 31, 2019 and 2018 consisted of the following (in thousands):

	December 31,
	2019			2018
Laboratory equipment	$	20,773		$	14,009
Computer equipment		2,450			1,819
Furniture and office equipment		1,568			1,300
Computer software		505			429
Construction in progress		1,852			3,942
Leasehold improvements		14,716			10,078
Build-to-suit asset cost		36,607			—
Property and equipment, at cost		78,471			31,577
Less: accumulated depreciation		(18,116	)		(12,452	)
Property and equipment, net	$	60,355		$	19,125

Deferred Revenue - Schedule of Deferred Revenue by Revenue Classification (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Current deferred revenue
Total current deferred revenue	$ 60,994	$ 12,695
Non-current deferred revenue
Total non-current deferred revenue	219,332	704
Total current and non-current deferred revenue	280,326	13,399
Sequencing Revenue
Current deferred revenue
Total current deferred revenue	12,482	11,238
Non-current deferred revenue
Total non-current deferred revenue	1,459	516
Development Revenue
Current deferred revenue
Total current deferred revenue	48,512	1,457
Non-current deferred revenue
Total non-current deferred revenue	$ 217,873	$ 188

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

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 and liabilities as of December 31, 2019 and 2018 that were measured at fair value on a recurring basis (in thousands):

	December 31, 2019
	Level 1		Level 2		Level 3		Total
Financial assets
Money market funds	$	88,683	$	—	$	—	$	88,683
Commercial paper		—		121,867		—		121,867
U.S. government debt and agency securities		—		377,243		—		377,243
Corporate bonds		—		86,615		—		86,615
Total financial assets	$	88,683	$	585,725	$	—	$	674,408

	December 31, 2018
	Level 1		Level 2		Level 3		Total
Financial assets
Money market funds	$	45,998	$	—	$	—	$	45,998
Commercial paper		—		16,887		—		16,887
U.S. government debt and agency securities		—		85,623		—		85,623
Corporate bonds		—		7,478		—		7,478
Total financial assets	$	45,998	$	109,988	$	—	$	155,986
Financial liabilities
Convertible preferred stock warrant liability	$	—	$	—	$	336	$	336
Total financial liabilities	$	—	$	—	$	336	$	336

Summary of Fair Value of Convertible Preferred Stock Warrant Liability Estimated Using Black-Scholes Option Pricing Model

As of December 31, 2018, the fair value of the convertible preferred stock warrant liability was estimated using the Black-Scholes option-pricing model with the following inputs:


	December 31, 2018
Fair value estimate	$	8.27
Expected term (in years)		2.31
Risk-free interest rate		2.5	%
Expected volatility		55.3	%
Expected dividend yield		—

Statements of Convertible Preferred Stock and Shareholders' (Deficit) Equity - USD ($) $ in Thousands	Total	Convertible Preferred Stock	Common Stock	Additional Paid In Capital	Accumulated Other Comprehensive (Loss) Gain	Accumulated Deficit
Beginning Balance at Dec. 31, 2016	$ (189,734)		$ 1	$ 17,559	$ (82)	$ (207,212)
Beginning Balance, Shares at Dec. 31, 2016			12,154,046
Convertible preferred stock, Beginning Balance at Dec. 31, 2016		$ 511,823
Convertible preferred stock, Beginning Balance, Shares at Dec. 31, 2016		87,797,854
Adjustments to accumulated deficit for adoption of guidance on accounting principle	485					485
Issuance of common stock for cash upon exercise of stock options	$ 95			95
Issuance of common stock for cash upon exercise of stock options, Shares	226,211		54,685
Issuance of Series F-1 convertible preferred stock for cash, net of issuance costs		$ 49,827
Issuance of Series F-1 convertible preferred stock for cash, net of issuance costs, Shares		4,686,649
Issuance of Series E-1 convertible preferred stock for cash upon exercise of Series E-1 convertible preferred stock options at fair value		$ 127
Issuance of Series E-1 convertible preferred stock for cash upon exercise of Series E-1 convertible preferred stock options at fair value, Shares		171,526
Vested Series E-1 convertible preferred stock option forfeitures	$ 644			398		246
Vested Series E-1 convertible preferred stock option forfeitures		$ (644)
Series E-1 convertible preferred stock option share-based compensation	89			89
Adjustment to redemption value for vested Series E-1 convertible preferred stock options	(89)			(89)
Adjustment to redemption value for vested Series E-1 convertible preferred stock options		89
Change in redemption value for vested Series E-1 convertible preferred stock options	(111)					(111)
Change in redemption value for vested Series E-1 convertible preferred stock options		111
Common stock option share-based compensation	6,920			6,920
Other comprehensive income (loss)	(84)				(84)
Net loss	(42,831)					(42,831)
Convertible preferred stock, Ending Balance at Dec. 31, 2017		$ 561,333
Convertible preferred stock, Ending Balance, Shares at Dec. 31, 2017		92,656,029
Ending Balance at Dec. 31, 2017	(224,616)		$ 1	24,972	(166)	(249,423)
Ending Balance, Shares at Dec. 31, 2017			12,208,731
Adjustments to accumulated deficit for adoption of guidance on accounting principle				140		(140)
Issuance of common stock for cash upon exercise of stock options	$ 1,168			1,168
Issuance of common stock for cash upon exercise of stock options, Shares	766,870		632,805
Issuance of Series E-1 convertible preferred stock for cash upon exercise of Series E-1 convertible preferred stock options at fair value		$ 100
Issuance of Series E-1 convertible preferred stock for cash upon exercise of Series E-1 convertible preferred stock options at fair value, Shares		134,065
Vested Series E-1 convertible preferred stock option forfeitures	$ 767			476		291
Vested Series E-1 convertible preferred stock option forfeitures		$ (767)
Series E-1 convertible preferred stock option share-based compensation	3			3
Adjustment to redemption value for vested Series E-1 convertible preferred stock options	(3)			(3)
Adjustment to redemption value for vested Series E-1 convertible preferred stock options		3
Change in redemption value for vested Series E-1 convertible preferred stock options	(189)					(189)
Change in redemption value for vested Series E-1 convertible preferred stock options		189
Common stock option share-based compensation	11,146			11,146
Other comprehensive income (loss)	59				59
Net loss	(46,447)					(46,447)
Convertible preferred stock, Ending Balance at Dec. 31, 2018	$ 560,858	$ 560,858
Convertible preferred stock, Ending Balance, Shares at Dec. 31, 2018	92,790,094	92,790,094
Ending Balance at Dec. 31, 2018	$ (258,112)		$ 1	37,902	(107)	(295,908)
Ending Balance, Shares at Dec. 31, 2018			12,841,536
Proceeds from initial public offering, net of underwriters' discounts and commissions	320,850		$ 2	320,848
Proceeds from initial public offering, net of underwriters' discounts and commissions, Shares			17,250,000
Initial public offering costs	(4,986)			(4,986)
Conversion of convertible preferred stock to common stock	561,931	$ (561,931)	$ 9	561,922
Conversion of convertible preferred stock to common stock, Shares		(93,039,737)	93,039,737
Conversion of convertible preferred stock warrant to common stock warrant	2,602			2,602
Issuance of common stock upon exercise of common stock warrants	9			9
Issuance of common stock upon exercise of common stock warrants, Shares			54,792
Issuance of common stock for cash upon exercise of stock options	$ 4,413			4,413
Issuance of common stock for cash upon exercise of stock options, Shares	2,293,410		2,043,767
Issuance of Series E-1 convertible preferred stock for cash upon exercise of Series E-1 convertible preferred stock options at fair value		$ 109
Issuance of Series E-1 convertible preferred stock for cash upon exercise of Series E-1 convertible preferred stock options at fair value, Shares		249,643
Vesting of restricted stock units			8,310
Change in redemption value for vested Series E-1 convertible preferred stock options	$ (964)					(964)
Change in redemption value for vested Series E-1 convertible preferred stock options		$ 964
Common stock option and restricted stock unit share-based compensation	13,124			13,124
Other comprehensive income (loss)	778				778
Net loss	$ (68,606)					(68,606)
Convertible preferred stock, Ending Balance, Shares at Dec. 31, 2019	0	93,039,737
Ending Balance at Dec. 31, 2019	$ 571,039		$ 12	$ 935,834	$ 671	$ (365,478)
Ending Balance, Shares at Dec. 31, 2019			125,238,142

Significant Accounting Policies - Schedule of Concentrations of Risk Percentage (Details) - Customer Concentration Risk	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Customer A \| Revenue
Significant Accounting Policies [Line Items]
Concentration risk, percentage	13.90%	18.40%	31.40%
Customer A \| Accounts Receivable, Net
Significant Accounting Policies [Line Items]
Concentration risk, percentage	41.80%
Customer B \| Revenue
Significant Accounting Policies [Line Items]
Concentration risk, percentage		13.50%
Customer B \| Accounts Receivable, Net
Significant Accounting Policies [Line Items]
Concentration risk, percentage		15.10%
Customer C \| Revenue
Significant Accounting Policies [Line Items]
Concentration risk, percentage		15.40%
Customer C \| Accounts Receivable, Net
Significant Accounting Policies [Line Items]
Concentration risk, percentage		13.20%
Genentech, Inc. \| Revenue
Significant Accounting Policies [Line Items]
Concentration risk, percentage	42.10%

Deferred Revenue (Tables)

12 Months Ended

Dec. 31, 2019

Revenue From Contract With Customer [Abstract]

Schedule of Deferred Revenue by Revenue Classification

Deferred revenue by revenue classification as of December 31, 2019 and 2018 was as follows (in thousands):

	December 31,
	2019		2018
Current deferred revenue
Sequencing	$	12,482	$	11,238
Development		48,512		1,457
Total current deferred revenue		60,994		12,695
Non-current deferred revenue
Sequencing		1,459		516
Development		217,873		188
Total non-current deferred revenue		219,332		704
Total current and non-current deferred revenue	$	280,326	$	13,399

Schedule of Changes in Deferred Revenue

Changes in deferred revenue during the year ended December 31, 2019 were as follows (in thousands):

Deferred revenue balance at December 31, 2018	$	13,399
Additions to deferred revenue during the period		317,551
Revenue recognized during the period		(50,624	)
Deferred revenue balance at December 31, 2019	$	280,326

Revenue - Schedule of Revenue Disaggregated by Type of Products and Services (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation Of Revenue [Line Items]
Total revenue	$ 85,071	$ 55,663	$ 38,448
Sequencing Revenue
Disaggregation Of Revenue [Line Items]
Total revenue	43,519	32,978	22,759
Development Support Revenue
Disaggregation Of Revenue [Line Items]
Total revenue	39,552	12,685	15,689
Development Revenue Regulatory Milestones
Disaggregation Of Revenue [Line Items]
Total revenue	2,000	10,000
Development Revenue
Disaggregation Of Revenue [Line Items]
Total revenue	$ 41,552	$ 22,685	$ 15,689

Shareholders' Equity - Summary of Reserved Shares of Common Stock (Details)	Dec. 31, 2019 shares
Class Of Stock [Line Items]
Total shares of common stock reserved for future issuance	33,656,200
Exercise of Outstanding Common Stock Options and Vesting of Outstanding Common Restricted Stock Units Granted
Class Of Stock [Line Items]
Total shares of common stock reserved for future issuance	16,651,154
Grant \| 2019 Plan
Class Of Stock [Line Items]
Total shares of common stock reserved for future issuance	15,396,254
Grant \| Employee Stock Purchase Plan
Class Of Stock [Line Items]
Total shares of common stock reserved for future issuance	1,551,917
Conversion of Common Stock Warrant
Class Of Stock [Line Items]
Total shares of common stock reserved for future issuance	56,875

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Deferred Tax Assets and Liabilities

The significant components of our deferred tax assets and liabilities for the periods presented are as follows (in thousands):

	December 31,
	2019			2018
Deferred tax assets
Net operating losses	$	79,035		$	56,555
Tax credit carryforward		11,152			6,709
Non qualifying stock options		9,150			7,861
Deferred rent		11,755			1,925
Other		3,598			2,598
Total deferred tax assets		114,690			75,648
Valuation allowance		(100,906	)		(70,722	)
Deferred tax assets, net of valuation allowance		13,784			4,926
Deferred tax liabilities
Tangible and intangible assets		(13,784	)		(4,926	)
Net deferred taxes	$	—		$	—

Schedule of Reconciliation of Effective Tax Rate of Provision for Income Taxes Differs from Federal Statutory Rate

The effective tax rate of our provision for income taxes differs from the federal statutory rate for the periods presented as follows:

	Year Ended December 31,
	2019			2018			2017
Statutory rate		21.0	%		21.0	%		34.0	%
State tax		8.1			5.5			1.8
Stock compensation		9.8			0.5			(1.7	)
Permanent items		(1.0	)		0.5			(0.1	)
Credits		6.1			2.7			2.7
TCJA change in federal rate		—			—			(58.4	)
Other		0.3			0.1			(0.6	)
Change in valuation allowance		(44.3	)		(30.3	)		22.3
Total		0.0	%		0.0	%		0.0	%

Schedule of Change in Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits during the years ended December 31, 2019, 2018 and 2017 are as follows (in thousands):

Balance at December 31, 2016	$	844
Additions in 2017		187
Balance at December 31, 2017		1,031
Additions in 2018		229
Balance at December 31, 2018		1,260
Additions in 2019		792
Balance at December 31, 2019	$	2,052

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property Plant And Equipment [Abstract]
Depreciation	$ 6,093	$ 4,301	$ 4,102

Commitments and Contingencies - Additional Information (Details)	1 Months Ended		12 Months Ended
	Oct. 31, 2019 USD ($) ft²	Aug. 31, 2019 USD ($) ft²	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Commitments And Contingencies [Line Items]
Lease expiration date	Oct. 31, 2029	Mar. 31, 2024
Number of square feet \| ft²	14,750	100,000
Lessee operating lease, rent obligations to commence period		10 months
Lessee, operating lease, term of contract		142 months
Lessee, operating lease, option to extend		Rent obligations commence 10 months thereafter, and the lease term ends 142 months from the date rent commences, subject to our option to twice extend the lease for five years.
Lessee, Operating Lease, Existence of Option to Extend [true false]		true
Lessee, operating lease, extended term of contract		5 years
Landlord contribution for leasehold improvements		$ 20,000,000.0
Letter of credit		$ 2,100,000
Lease term description			The lease term is through March 2026 and provides for one five-year option.
Payments for tenant improvements			$ 2,400,000
Rent expenses			$ 5,300,000	$ 4,100,000	$ 3,700,000
Maximum
Commitments And Contingencies [Line Items]
Tenant improvement allowance	$ 700,000

Revenue

12 Months Ended

Dec. 31, 2019

Revenue From Contract With Customer [Abstract]

Revenue

We disaggregate our revenue from contracts with customers by type of service, 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 revenue disaggregated by type of products and services for the periods presented (in thousands):

	Year Ended December 31,
	2019		2018		2017
Sequencing revenue	$	43,519	$	32,978	$	22,759
Development revenue
Development support		39,552		12,685		15,689
Regulatory milestones		2,000		10,000		—
Total development revenue		41,552		22,685		15,689
Total revenue	$	85,071	$	55,663	$	38,448

Translational Development Agreements

On December 18, 2015, we entered into a translational development agreement with a biopharmaceutical customer for access to certain of our oncology immunosequencing research datasets, including full-time employee support, to accelerate the customer’s preclinical, nonclinical and clinical trial testing. Under the initial terms of the agreement, we could be entitled to up to $40.0 million over a period of four years, which does not include any separately negotiated research sequencing contracts. If the biopharmaceutical customer terminates the agreement prior to the end of the initial four-year research term for any reason other than a material uncured breach by us, then the biopharmaceutical partner has agreed to pay us $0.8 million. In May 2019, the agreement was subsequently amended to reduce the services provided, which in turn reduced the fourth year of eligible payments to $2.3 million.

We identified one performance obligation under this agreement, as the services were determined to be highly interrelated. We determined that any separately negotiated sequencing contracts are not performance obligations under the contract, as the contract did not contain any material rights related to such sequencing contracts. For the identified performance obligation, we assessed the work to be performed over the duration of the contract and determined that it is a consistent level of support throughout the period, and therefore, revenue has been recognized on a straight-line basis over the contract term.

Revenue recognized from this translational development agreement, excluding separately negotiated research sequencing contracts, was $2.3 million, $9.3 million and $10.0 million during the year ended December 31, 2019, 2018 and 2017, respectively.

MRD Development Agreements

We have entered into agreements with biopharmaceutical customers to further develop and commercialize clonoSEQ and the biopharmaceutical customers’ therapeutics. Under each of the agreements, we received or will receive non-refundable upfront payments and could receive substantial additional payments upon reaching certain progress milestones or achievement of certain regulatory milestones pertaining to the customers’ therapeutic and our clonoSEQ test.

Under the contracts, we identify performance obligations, which may include: (1) obligations to provide services supporting the customer’s regulatory submission activities as they relate to our clonoSEQ test; and (2) sequencing services for customer-provided samples for their regulatory submissions. 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 immunosequencing services. At contract inception, we fully constrained any consideration related to the regulatory milestones, as the achievement of such milestones is subject to third-party regulatory approval and the customers’ own submission decision-making. We recognize revenue relating to the sequencing services as sequencing revenue 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 and 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 based on estimates of effort completed using a cost-based model.

We earned $2.0 million and $10.0 million during the year ended December 31, 2019 and 2018, respectively, in regulatory milestones upon the achievement of regulatory milestones by us and our respective customers’ therapeutics. We recognized $3.7 million, $12.8 million and $5.1 million in development revenue related to these contracts, inclusive of the milestones, during the year ended December 31, 2019, 2018 and 2017, respectively.

As of December 31, 2019, in future periods we could receive up to an additional $220.0 million in milestone payments if certain regulatory approvals are obtained by our customers’ therapeutics in connection with MRD data generated from our clonoSEQ test.

Genentech Collaboration Agreement

In December 2018, we entered into a worldwide collaboration and license agreement (“Genentech Agreement”) with Genentech, Inc. (“Genentech”) 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 collaboration.

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

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.

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.

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

License to existing shared antigen data packages.

Research and development services for shared product development including expansion of shared antigen data packages.

Research and development services for private product development.

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 as opposed to both. 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 as a result of 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 since 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 December 31, 2019. 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 Product and Personalized Product pathways. 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 Product 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 revenue of $35.1 million during the year ended December 31, 2019 related to the Genentech collaboration. Costs related to the Genentech collaboration are included in research and development expenses.

Net Loss Per Share Attributable to Common Shareholders (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

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

	Year Ended December 31,
	2019			2018			2017
Net loss	$	(68,606	)	$	(46,447	)	$	(42,831	)
Fair value adjustments to redemption value for Series E-1 convertible preferred stock options		(964	)		102			135
Net loss attributable to common shareholders, basic and diluted	$	(69,570	)	$	(46,345	)	$	(42,696	)
Weighted-average shares used in computing net loss per share		69,165,315			12,629,778			12,196,998
Net loss per share attributable to common shareholders, basic and diluted	$	(1.01	)	$	(3.67	)	$	(3.50	)

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

The following weighted-average common stock equivalents were excluded from the calculation of diluted net loss per share attributable to common shareholders for the year ended December 31, 2019, 2018 and 2017, respectively, as they had an anti-dilutive effect:

	Year Ended December 31,
	2019		2018		2017
Convertible preferred stock (on as if converted basis)		46,104,469		92,783,867		88,473,431
Stock options issued and outstanding		17,183,546		14,701,626		12,644,926
Unvested restricted stock units		4,952		—		—
Common stock warrants		55,961		55,032		55,032
Convertible preferred stock warrants		28,204		56,875		56,875
Total		63,377,132		107,597,400		101,230,264

Equity Incentive Plans - Summary of Estimated Fair Value of Options Granted (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant date fair value		$ 6.55
Risk-free interest rate, minimum	1.40%	2.60%	1.90%
Risk-free interest rate, maximum	2.50%	3.00%	2.40%
Expected volatility, minimum	64.30%	65.00%	67.30%
Expected volatility, maximum	72.90%	69.20%	70.50%
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant date fair value	$ 7.80		$ 6.27
Expected term, minimum (in years)	5 years 3 months 7 days	6 years 29 days	6 years 29 days
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant date fair value	$ 47.81		$ 6.32
Expected term, minimum (in years)	6 years 29 days	10 years	10 years

Shareholders' Equity - Additional Information (Details)				12 Months Ended
Shareholders' Equity - Additional Information (Details)	Jan. 01, 2020 shares	Jul. 01, 2019 shares	Jun. 30, 2019 shares	Dec. 31, 2019 Vote $ / shares shares	Dec. 31, 2014 $ / shares shares	Dec. 31, 2018 $ / shares shares	Dec. 31, 2017 shares	Dec. 31, 2016 shares
Class Of Stock [Line Items]
Convertible preferred stock outstanding				0		92,790,094
Preferred stock, shares authorized				10,000,000		0
Preferred stock, par value \| $ / shares				$ 0.0001		$ 0.0001
Preferred stock, shares outstanding				0		0
Common stock authorized				340,000,000		131,000,000
Common stock par value \| $ / shares				$ 0.0001		$ 0.0001
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 \| Vote				1
Common stock outstanding				125,238,142		12,841,536
Warrants issued to purchase stock				56,875
Common Stock
Class Of Stock [Line Items]
Warrants issued to purchase stock				20,000
Warrant exercisable term				10 years
Weighted-average exercise price of warrants \| $ / shares				$ 0.37
Exercise price of warrants \| $ / shares				$ 0.45
Stock issued during period, common stock		54,792		54,792
Series C Convertible Preferred Stock
Class Of Stock [Line Items]
Warrants issued to purchase stock					56,875
Warrant exercisable term					7 years
Weighted-average exercise price of warrants \| $ / shares					$ 2.64
Subsequent Event \| Employee Stock Purchase Plan
Class Of Stock [Line Items]
Increase in share reserve	1,252,381
Maximum \| Common Stock
Class Of Stock [Line Items]
Warrants issued to purchase stock				55,032
Maximum \| Subsequent Event \| Employee Stock Purchase Plan
Class Of Stock [Line Items]
Percentage of annual increases in number of shares	1.00%
2019 Plan \| Subsequent Event
Class Of Stock [Line Items]
Increase in share reserve	6,261,907
2019 Plan \| Maximum \| Subsequent Event
Class Of Stock [Line Items]
Percentage of annual increases in number of shares	5.00%
Convertible Preferred Stock
Class Of Stock [Line Items]
Conversion of convertible preferred stock			93,039,737
Convertible preferred stock outstanding				93,039,737		92,790,094	92,656,029	87,797,854

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets Subject to Amortization

Intangible assets subject to amortization as of December 31, 2019 and 2018 consisted of the following (in thousands):

	December 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Acquired developed technology	$	20,000	$	(8,301	)	$	11,699
Purchased intellectual property		325		(96	)		229
Balance at December 31, 2019	$	20,325	$	(8,397	)	$	11,928

	December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Acquired developed technology	$	20,000	$	(6,636	)	$	13,364
Purchased intellectual property		325		(63	)		262
Balance at December 31, 2018	$	20,325	$	(6,699	)	$	13,626

Schedule of Future Amortization Expense for Intangible Assets

As of December 31, 2019, expected future amortization expense for intangible assets was as follows (in thousands):

2020	$	1,703
2021		1,699
2022		1,699
2023		1,699
2024		1,703
Thereafter		3,425
Total future amortization expense	$	11,928

Investments

12 Months Ended

Dec. 31, 2019

Investments Debt And Equity Securities [Abstract]

Investments

5.	Investments

Available-for-sale investments consisted of the following as of December 31, 2019 and 2018 (in thousands):

	December 31, 2019
	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
Short-term marketable securities
Commercial paper	$	121,866	$	—	$	—		$	121,866
U.S. government debt and agency securities		285,963		394		(1	)		286,356
Corporate bonds		71,962		109		(3	)		72,068
Total short-term marketable securities	$	479,791	$	503	$	(4	)	$	480,290
Long-term marketable securities
U.S. government debt and agency securities	$	90,750	$	146	$	(9	)	$	90,887
Corporate bonds		14,513		35		—			14,548
Total long-term marketable securities	$	105,263	$	181	$	(9	)	$	105,435

	December 31, 2018
	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
Short-term marketable securities
Commercial paper	$	16,887	$	—	$	—		$	16,887
U.S. government debt and agency securities		85,722		—		(99	)		85,623
Corporate bonds		7,486		—		(8	)		7,478
Total short-term marketable securities	$	110,095	$	—	$	(107	)	$	109,988

	Less Than 12 Months					12 Months Or Greater
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. government debt and agency securities	$	30,196	$	(10	)	$	—	$	—
Corporate bonds		5,010		(3	)		—		—
Total available-for-sale securities	$	35,206	$	(13	)	$	—	$	—

We evaluated our securities for other-than-temporary impairment and considered the decline in market value for the securities to be primarily attributable to current economic and market conditions. It is not more likely than not that we will be required to sell the securities, and we do not intend to do so prior to the recovery of the amortized cost basis. Based on this analysis, these marketable securities were not considered to be other-than-temporarily impaired as of December 31, 2019.

Revenue - Additional Information (Details) - USD ($)			1 Months Ended	12 Months Ended
Revenue - Additional Information (Details) - USD ($)	Dec. 31, 2019	Dec. 18, 2015	Feb. 28, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation Of Revenue [Line Items]
Revenue recognized	$ 8,500,000			$ (50,624,000)
Revenue from collaboration agreement				85,071,000	$ 55,663,000	$ 38,448,000
Translational Development Agreements
Disaggregation Of Revenue [Line Items]
Term of agreement		4 years
Agreement termination amount receivable		$ 800,000
Eligible payments receivable		2,300,000
Revenue recognized excluding separately negotiated research sequencing contracts				2,300,000	9,300,000	10,000,000.0
Translational Development Agreements \| Maximum
Disaggregation Of Revenue [Line Items]
Expected revenue through milestone payments		$ 40,000,000.0
MRD Development Agreements
Disaggregation Of Revenue [Line Items]
Milestone revenue recognized				2,000,000.0	10,000,000.0
Revenue recognized				3,700,000	$ 12,800,000	$ 5,100,000
MRD Development Agreements \| Maximum
Disaggregation Of Revenue [Line Items]
Additional milestone payment receivable	220,000,000.0			220,000,000.0
Genentech Collaboration Agreement
Disaggregation Of Revenue [Line Items]
Non-refundable upfront payments received			$ 300,000,000.0	300,000,000.0
Revenue from collaboration agreement				$ 35,100,000
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			$ 1,800,000
Revenue recognition expected period				7 years

Income Taxes - Schedule of Change In Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Balance	$ 1,260	$ 1,031	$ 844
Additions	792	229	187
Balance	$ 2,052	$ 1,260	$ 1,031

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets
Net operating losses	$ 79,035	$ 56,555
Tax credit carryforward	11,152	6,709
Non qualifying stock options	9,150	7,861
Deferred rent	11,755	1,925
Other	3,598	2,598
Total deferred tax assets	114,690	75,648
Valuation allowance	(100,906)	(70,722)
Deferred tax assets, net of valuation allowance	13,784	4,926
Deferred tax liabilities
Tangible and intangible assets	(13,784)	(4,926)
Net deferred taxes	$ 0	$ 0