Segment Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has two operating segments for which it recognizes revenue; Clinical Services and Pharma Services. The Company's Clinical Services segment provides various clinical testing services to community-based pathology practices, hospital pathology labs and academic centers with reimbursement from various payers including client direct billing, commercial insurance, Medicare and other government payers, and patients. The Company's Pharma Services segment supports pharmaceutical firms in their drug development programs by supporting various clinical trials and research as well as providing informatics related services often supporting Pharma commercialization efforts.

The financial information reviewed by the Chief Operating Decision Maker (“CODM”) includes revenues, cost of revenue and gross margin for each of the Company’s operating segments. Assets are not presented at the segment level as that information is not used by the CODM.

The following table summarizes segment information for the years ended December 31, 2020, 2019 and 2018 (in thousands).

	For the Years Ended December 31,
	2020		2019		2018
Net revenues:
Clinical Services	$	382,337	$	361,161	$	241,873
Pharma Services	62,111		47,669		34,868
Total revenue	444,448		408,830		276,741
Cost of revenue:
Clinical Services	215,529		185,612		128,297
Pharma Services	43,026		26,382		21,179
Total cost of revenue	258,555		211,994		149,476
Gross Profit:
Clinical Services	166,808		175,549		113,576
Pharma Services	19,085		21,287		13,689
Total gross profit	185,893		196,836		127,265
Operating expenses:
General and administrative	143,794		127,993		84,822
Research and development	8,229		8,487		3,001
Sales and marketing	47,862		47,350		29,402
Total operating expenses	199,885		183,830		117,225
(Loss) income from operations	(13,992)		13,006		10,040
Interest expense, net	7,019		3,713		6,230
Other (income) expense, net	(11,861)		4,630		(14)
Loss on extinguishment of debt	1,400		1,018		—
Loss on termination of cash flow hedge	3,506		—		—
(Loss) income before taxes	(14,056)		3,645		3,824
Income tax (benefit) expense	(18,228)		(4,361)		1,184
Net income	$	4,172	$	8,006	$	2,640