XML 36 R20.htm IDEA: XBRL DOCUMENT v3.23.1
Segment Information
 3 Months Ended
Mar. 31, 2023
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 segment information for the three months ended March 31, 2023 and 2022 (in thousands):

Three Months Ended March 31,
20232022
Net revenues:
Clinical Services$114,869 $98,791 
Pharma Services22,351 18,378 
Total revenue137,220 117,169 
Cost of revenue:
Clinical Services(1)
67,292 65,267 
Pharma Services(2)
15,114 13,670 
Total cost of revenue82,406 78,937 
Gross Profit:
Clinical Services47,577 33,524 
Pharma Services7,237 4,708 
Total gross profit54,814 38,232 
Operating expenses:
General and administrative61,549 66,248 
Research and development7,395 7,713 
Sales and marketing16,259 16,299 
Restructuring charges4,684 — 
Total operating expenses89,887 90,260 
Loss from operations(35,073)(52,028)
Interest (income) expense, net(1,467)1,301 
Other (income) expense, net114 (168)
Loss before taxes(33,720)(53,161)
Income tax benefit(2,925)(3,753)
Net loss$(30,795)$(49,408)
(1) Clinical Services cost of revenue for both the three months ended March 31, 2023 and 2022 includes $4.3 million of amortization of acquired Inivata developed technology intangible assets.
(2) Pharma Services cost of revenue for both the three months ended March 31, 2023 and 2022 include $0.6 million of amortization of acquired Inivata developed technology intangible assets.