Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.20.4
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