Segment Information

12 Months Ended

Dec. 31, 2019

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)