Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

        The Company operates as a single reportable segment. The Company has one sales force that sells the Company’s nCounter and GeoMx DSP instruments, consumables and related services.

Disaggregated Revenues

        The following table of total revenue is based on the geographic location of end users or distributors who purchase products and services, and of our collaborators. For sales to distributors, their geographic location may be different from the geographic location of the ultimate end user. For collaboration agreements, revenues are derived from partners located primarily in the United States. Americas consists of the United States, Canada, Mexico, and South America; and Asia Pacific includes Japan, China, South Korea, Singapore, Malaysia, India, and Australia.

        The following table provides information about disaggregated revenue by major product line and primary geographic market (in thousands):

	Three Months Ended June 30, 2020								Six Months Ended June 30, 2020
	Americas		Europe and Middle East		Asia Pacific		Total		Americas		Europe and Middle East		Asia Pacific		Total
Product revenue:
Instruments	$	6,577	$	2,475	$	748	$	9,800	$	13,658	$	4,263	$	1,713	$	19,634
Consumables	5,375		2,406		588		8,369		13,747		4,909		1,213		19,869
Total product revenue	11,952		4,881		1,336		18,169		27,405		9,172		2,926		39,503
Service revenue	1,922		878		175		2,975		3,960		1,752		425		6,137
Total product and service revenue	13,874		5,759		1,511		21,144		31,365		10,924		3,351		45,640
Collaboration revenue	1,460		—		—		1,460		3,569		—		—		3,569
Total revenues	$	15,334	$	5,759	$	1,511	$	22,604	$	34,934	$	10,924	$	3,351	$	49,209

	Three Months Ended June 30, 2019								Six Months Ended June 30, 2019
	Americas		Europe and Middle East		Asia Pacific		Total		Americas		Europe and Middle East		Asia Pacific		Total
Product revenue:
Instruments	$	3,596	$	960	$	384	$	4,940	$	5,786	$	2,490	$	982	$	9,258
Consumables	8,840		4,666		882		14,388		17,444		9,723		1,681		28,848
Total product revenue	12,436		5,626		1,266		19,328		23,230		12,213		2,663		38,106
Service revenue	2,167		682		193		3,042		3,962		1,295		357		5,614
Total product and service revenue	14,603		6,308		1,459		22,370		27,192		13,508		3,020		43,720
Collaboration revenue	7,975		—		—		7,975		14,313		—		—		14,313
Total revenues	$	22,578	$	6,308	$	1,459	$	30,345	$	41,505	$	13,508	$	3,020	$	58,033

        Total revenue in the United States was $33.8 million and $40.4 million for the six months ended June 30, 2020 and 2019, respectively. The Company’s assets are primarily located in the United States and not allocated to any specific geographic region. Substantially all of the Company’s long-lived assets are located in the United States.

Contract balances and remaining performance obligations

        Contract liabilities are comprised of the current and long-term portions of deferred revenue of $6.0 million and $5.0 million as of June 30, 2020 and December 31, 2019, respectively, and customer deposits of $3.3 million and $6.4 million as of June 30, 2020 and December 31, 2019, respectively, included within the condensed consolidated balance sheets. Total contract liabilities decreased by $2.0 million for the six months ended June 30, 2020 as a result of the recognition of previously deferred revenue and customer deposits of $6.8 million for the completion of certain performance obligations during the period, partially offset by an increase of $4.8 million related to additional deferred revenue associated primarily with new or extended service contracts. The Company did not record any contract assets as of June 30, 2020.

        As of June 30, 2020, unsatisfied or partially unsatisfied performance obligations related to the collaboration agreement with Lam Research Corporation (“Lam”) were $1.9 million. Performance obligations related to undelivered products and

service contracts as of June 30, 2020 were $7.5 million and are expected to be completed over the term of the related contract or as products are delivered.