Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.21.2
Segment Information
6 Months Ended
Jun. 30, 2021
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 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 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 profit 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 the segment information (in thousands):
Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Net revenues:
Clinical Services $ 101,405  $ 73,884  $ 197,892  $ 166,866 
Pharma Services 20,319  13,093  39,365  26,141 
Total revenue 121,724  86,977  237,257  193,007 
Cost of revenue:
Clinical Services(1)
57,233  48,757  118,798  97,680 
Pharma Services 11,501  10,214  23,895  20,952 
Total cost of revenue 68,734  58,971  142,693  118,632 
Gross Profit:
Clinical Services 44,172  25,127  79,094  69,186 
Pharma Services 8,818  2,879  15,470  5,189 
Total gross profit 52,990  28,006  94,564  74,375 
Operating expenses:
General and administrative 54,638  34,613  95,114  70,957 
Research and development 3,495  2,105  5,951  4,165 
Sales and marketing 17,224  10,195  30,973  23,453 
Total operating expenses 75,357  46,913  132,038  98,575 
Loss from operations (22,367) (18,907) (37,474) (24,200)
Interest expense, net 902  1,548  2,079  2,367 
Other income, net (171) (7,405) (341) (7,628)
Gain on investment in and loan receivable from non-consolidated affiliate, net (96,534) —  (91,510) — 
Loss on extinguishment of debt —  1,400  —  1,400 
Loss on termination of cash flow hedge —  3,506  —  3,506 
Income (loss) before taxes 73,436  (17,956) 52,298  (23,845)
Income tax benefit (2,437) (11,132) (1,461) (10,043)
Net income (loss) $ 75,873  $ (6,824) $ 53,759  $ (13,802)

(1) Clinical cost of revenue for the three months ended June 30, 2021 includes $0.7 million amortization of acquired intangible assets. Clinical cost of revenue for the six months ended June 30, 2021 includes $0.7 million amortization of acquired intangible assets and write-offs of $5.3 million for COVID-19 PCR testing inventory.