Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.19.3.a.u2
Segment Information
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Reporting Disclosure Segment Information
We have two primary types of customers, Clinical and Pharma. Our Clinical customers include community based pathology practices, oncology groups, hospitals and academic centers. Our Pharma customers include pharmaceutical companies to whom we provide testing and other services to support their studies and clinical trials.
We have presented the financial information reviewed by the Chief Operating Decision Maker (“CODM”) including revenues, cost of revenue and gross profit for each of our operating segments. The segment information presented in these financial statements has been conformed to present segments on this revised basis for all prior periods. Balance sheet accounts 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, 2019, 2018 and 2017 (in thousands).
  For the Years Ended December 31,
  2019 2018 2017
Net revenues:
Clinical Services $ 361,161    $ 241,873    $ 213,097   
Pharma Services 47,669    34,868    27,154   
Total Revenue 408,830    276,741    240,251   
Cost of revenue:
Clinical Services 185,612    128,297    121,785   
Pharma Services 26,382    21,179    16,510   
Total Cost of Revenue 211,994    149,476    138,295   
Gross Profit:
Clinical Services 175,549    113,576    91,313   
Pharma Services 21,287    13,689    10,643   
Total Gross Profit 196,836    127,265    101,956   
Operating expenses:
General and administrative 127,993    84,822    70,359   
Research and development 8,487    3,001    3,636   
Sales and marketing 47,350    29,402    24,001   
Loss on sale of Path Logic —    —    1,058   
Total operating expenses 183,830    117,225    99,054   
Income from Operations 13,006    10,040    2,902   
Interest expense, net 3,713    6,230    5,540   
Other expense (income), net 4,630    (14)   12   
Loss on extinguishment of debt 1,018    —    —   
Income (loss) before taxes 3,645    3,824    (2,650)  
Income tax (benefit) expense (4,361)   1,184    (2,254)  
Net income (loss) $ 8,006    $ 2,640    $ (396)