Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company recognizes revenue under two reportable segments, (1) Clinical Services and (2) Pharma Services. The Clinical Services segment provides various clinical testing services to community-based pathology and oncology practices, hospital pathology labs, and academic centers with reimbursement from various payers including client direct billing, commercial insurance, Medicare and other government payers, and self-pay patients. The Pharma Services segment supports pharmaceutical firms’ drug development programs by assisting with various clinical trials and research as well as providing informatics related services often supporting pharmaceutical commercialization efforts.

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

The following table summarizes the segment information (in thousands):

	Three Months Ended March 31,
	2022		2021
Net revenues:
Clinical Services	$	98,791	$	96,487
Pharma Services	18,378		19,046
Total revenue	117,169		115,533
Cost of revenue:
Clinical Services(1)	65,267		61,565
Pharma Services(2)	13,670		12,394
Total cost of revenue	78,937		73,959
Gross Profit:
Clinical Services	33,524		34,922
Pharma Services	4,708		6,652
Total gross profit	38,232		41,574
Operating expenses:
General and administrative	66,248		40,476
Research and development	7,713		2,456
Sales and marketing	16,299		13,749
Total operating expenses	90,260		56,681
Loss from operations	(52,028)		(15,107)
Interest (income) expense, net	1,301		1,177
Other (income) expenses, net	(168)		4,854
Loss before taxes	(53,161)		(21,138)
Income tax (benefit) expense	(3,753)		976
Net loss	$	(49,408)	$	(22,114)

(1) Clinical Services cost of revenue includes $4.3 million of amortization of acquired Inivata developed technology for the three months ended March 31, 2022. Clinical Services cost of revenue includes write-offs of $5.3 million for COVID-19 PCR testing inventory for the three months ended March 31, 2021.

(2) Pharma Services cost of revenue for the three months ended March 31, 2022 includes $0.6 million of amortization of acquired Inivata developed technology intangible assets. There were no such amounts for the three months ended March 31, 2021.