Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.21.1
Segment Information
3 Months Ended
Mar. 31, 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 March 31,
2021 2020
Net revenues:
Clinical Services $ 96,487  $ 92,982 
Pharma Services 19,046  13,048 
Total revenue 115,533  106,030 
Cost of revenue:
Clinical Services(1)
61,565  48,923 
Pharma Services 12,394  10,738 
Total cost of revenue 73,959  59,661 
Gross Profit:
Clinical Services 34,922  44,059 
Pharma Services 6,652  2,310 
Total gross profit 41,574  46,369 
Operating expenses:
General and administrative 40,476  36,344 
Research and development 2,456  2,060 
Sales and marketing 13,749  13,258 
Total operating expenses 56,681  51,662 
Loss from operations (15,107) (5,293)
Interest expense, net 1,177  819 
Other expense (income), net 4,854  (223)
Loss before taxes (21,138) (5,889)
Income tax expense 976  1,089 
Net loss $ (22,114) $ (6,978)

(1) Clinical Services cost of revenue includes write-offs of $5.3 million for COVID-19 PCR testing inventory for the three months ended March 31, 2021.