Segment Information

3 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company currently operates in two reporting segments: (1) Consumer and Research Services, and (2) Therapeutics. The Consumer and Research Services segment consists of revenue and expenses from PGS and telehealth, as well as research services revenue and expenses from certain collaboration agreements (including the original GSK Agreement). The Therapeutics segment consists of revenues from the out-licensing of intellectual property associated with identified drug targets and expenses related to therapeutic product candidates under clinical development. Substantially all of the Company’s revenues are derived from the Consumer and Research Services segment. See Note 3, “Revenue — Revenue Recognition,” for additional information. There are no inter-segment sales.

Certain department expenses such as Finance, Legal, Regulatory and Supplier Quality, Corporate Communications, Corporate Development, and CEO Office are not reported as part of the reporting segments as reviewed by the CODM (as defined below). These amounts are included in Unallocated Corporate in the reconciliations below. The chief operating decision-maker (“CODM”) is the Chief Executive Officer (“CEO”). The CODM evaluates the performance of each segment based on Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure that is defined as net income (loss) before net interest income (expense), net other income (expense), income tax expenses (benefit), depreciation and amortization, impairment charges, stock-based compensation expense, and other items that are considered unusual or not representative of underlying trends of the Company’s business, including but not limited to: litigation settlements, gains or losses on dispositions of subsidiaries, transaction-related costs, and cyber security incident expenses, net of probable insurance recoveries, if applicable for the periods presented.

Adjusted EBITDA is a key measure used by the Company’s management and Board of Directors to understand and evaluate the Company’s operating performance and trends, to prepare and approve the annual budget, and to develop short-term and long-term operating plans.

The Company’s revenue and Adjusted EBITDA by segment is as follows:

	Three Months Ended June 30,
	2024		2023
	(in thousands)
Segment Revenue: (1)
Consumer and Research Services	$	40,414	$	60,864
Total revenue	$	40,414	$	60,864
Segment Adjusted EBITDA:
Consumer and Research Services Adjusted EBITDA	$	(8,841)	$	(5,602)
Therapeutics Adjusted EBITDA	(12,417)		(31,138)
Unallocated Corporate	(13,904)		(13,060)
Total Adjusted EBITDA	$	(35,162)	$	(49,800)
Reconciliation of net loss to Adjusted EBITDA:
Net loss	$	(69,400)	$	(104,624)
Adjustments:
Interest income, net	(2,574)		(4,307)
Other (income) expense, net	19		(333)
Depreciation and amortization	4,011		4,478
Amortization of acquired intangible assets	1,776		3,638
Stock-based compensation expense	21,577		51,100
Transaction costs related to disposition of Lemonaid Health (2)	—		248
Cyber security incident expenses, net of probable insurance recoveries (3)	9,429		—
Total Adjusted EBITDA	$	(35,162)	$	(49,800)

(1)There was no Therapeutics revenue for the three months ended June 30, 2024 and 2023.

(2)Refer to Note 17, “Disposition of Subsidiary” for additional information.

(3)Refer to Note 11, “Cyber Security Incident” for additional information.

Customers accounting for 10% or more of segment revenues were as follows:

	Three Months Ended June 30,
	2024				2023
	(in thousands)
Consumer and Research Services Segment Revenue:
Customer C (1)(2)	$	7,577	19	%	$	9,711	16	%
Customer B (3)	$	1	—	%	$	10,670	18	%

(1)Customer C is a reseller.

(2)Customer C revenues are primarily in the United States.

(3)Customer B revenues are in the U.K.

Revenue from customers by service and by geographical region can be found in the revenue recognition disclosures in Note 3, “Revenue.” Substantially all of the Company’s property and equipment, net of depreciation and amortization, was located in the United States during the periods presented. The reporting segments do not present total assets as they are not reviewed by the CODM when evaluating their performance.