Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.22.1
Segment Information
3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company recognizes revenue under two reportable segments, (1) Clinical Services and (2) Pharma Services. The 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 self-pay patients. The Pharma Services segment supports pharmaceutical firms’ drug development programs by assisting with various clinical trials and research as well as providing informatics related services often supporting pharmaceutical commercialization efforts.
The financial information reviewed by the Chief Operating Decision Maker (“CODM”) includes revenues, cost of revenue, and gross profit for both reportable 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,
2022 2021
Net revenues:
Clinical Services $ 98,791  $ 96,487 
Pharma Services 18,378  19,046 
Total revenue 117,169  115,533 
Cost of revenue:
Clinical Services(1)
65,267  61,565 
Pharma Services(2)
13,670  12,394 
Total cost of revenue 78,937  73,959 
Gross Profit:
Clinical Services 33,524  34,922 
Pharma Services 4,708  6,652 
Total gross profit 38,232  41,574 
Operating expenses:
General and administrative 66,248  40,476 
Research and development 7,713  2,456 
Sales and marketing 16,299  13,749 
Total operating expenses 90,260  56,681 
Loss from operations (52,028) (15,107)
Interest (income) expense, net 1,301  1,177 
Other (income) expenses, net (168) 4,854 
Loss before taxes (53,161) (21,138)
Income tax (benefit) expense (3,753) 976 
Net loss $ (49,408) $ (22,114)
(1) Clinical Services cost of revenue includes $4.3 million of amortization of acquired Inivata developed technology for the three months ended March 31, 2022. 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.
(2) Pharma Services cost of revenue for the three months ended March 31, 2022 includes $0.6 million of amortization of acquired Inivata developed technology intangible assets. There were no such amounts for the three months ended March 31, 2021.