Revenue from Contracts with Customers

9 Months Ended

Sep. 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 customer. 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 September 30, 2020								Nine Months Ended September 30, 2020
	Americas		Europe and Middle East		Asia Pacific		Total		Americas		Europe and Middle East		Asia Pacific		Total
Product revenue:
Instruments	$	7,315	$	4,145	$	1,418	$	12,878	$	20,973	$	8,408	$	3,131	$	32,512
Consumables	9,838		3,058		754		13,650		23,585		7,966		1,968		33,519
Total product revenue	17,153		7,203		2,172		26,528		44,558		16,374		5,099		66,031
Service revenue	2,368		874		320		3,562		6,328		2,625		746		9,699
Total product and service revenue	19,521		8,077		2,492		30,090		50,886		18,999		5,845		75,730
Collaboration revenue	1,755		—		—		1,755		5,324		—		—		5,324
Total revenues	$	21,276	$	8,077	$	2,492	$	31,845	$	56,210	$	18,999	$	5,845	$	81,054

	Three Months Ended September 30, 2019								Nine Months Ended September 30, 2019
	Americas		Europe and Middle East		Asia Pacific		Total		Americas		Europe and Middle East		Asia Pacific		Total
Product revenue:
Instruments	$	5,823	$	1,577	$	637	$	8,037	$	11,609	$	4,066	$	1,620	$	17,295
Consumables	9,648		4,710		895		15,253		27,093		14,434		2,574		44,101
Total product revenue	15,471		6,287		1,532		23,290		38,702		18,500		4,194		61,396
Service revenue	2,004		841		214		3,059		5,965		2,136		572		8,673
Total product and service revenue	17,475		7,128		1,746		26,349		44,667		20,636		4,766		70,069
Collaboration revenue	4,255		—		—		4,255		18,568		—		—		18,568
Total revenues	$	21,730	$	7,128	$	1,746	$	30,604	$	63,235	$	20,636	$	4,766	$	88,637

    Total revenue in the United States was $20.5 million, $54.3 million, $21.3 million, and $61.7 million for the three and nine month periods ended September 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 $6.7 million and $5.0 million as of September 30, 2020 and December 31, 2019, respectively, and customer deposits of $1.5 million and $6.4 million as of September 30, 2020 and December 31, 2019, respectively, included within the condensed consolidated balance sheets. Total contract liabilities decreased by $3.2 million as of September 30, 2020 as a result of the recognition of previously deferred revenue and customer deposits of $11.0 million for the completion of certain performance obligations during the period, partially offset by an increase of $7.8 million related to additional deferred revenue associated primarily with new or extended service contracts. The Company did not record any contract assets as of September 30, 2020.

    As of September 30, 2020, unsatisfied or partially unsatisfied performance obligations related to the collaboration agreement with Lam Research Corporation (“Lam”) were $0.5 million. Performance obligations related to undelivered products and service contracts as of September 30, 2020 were $7.7 million and are expected to be completed over the term of the related contract or as products are delivered.