Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2021

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 instruments 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, 2021								Nine Months Ended September 30, 2021
	Americas		Europe and Middle East		Asia Pacific		Total		Americas		Europe and Middle East		Asia Pacific		Total
Product revenue:
Instruments	$	8,514	$	3,827	$	2,154	$	14,495	$	21,650	$	10,230	$	6,176	$	38,056
Consumables	13,120		3,682		1,226		18,028		36,928		11,538		3,506		51,972
Total product revenue	21,634		7,509		3,380		32,523		58,578		21,768		9,682		90,028
Service revenue	2,957		1,149		295		4,401		8,138		3,010		774		11,922
Total product and service revenue	24,591		8,658		3,675		36,924		66,716		24,778		10,456		101,950
Collaboration revenue	226		—		—		226		680		—		—		680
Total revenues	$	24,817	$	8,658	$	3,675	$	37,150	$	67,396	$	24,778	$	10,456	$	102,630

	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

Total revenue in the United States was $23.9 million, $20.5 million for the three month periods ended September 30, 2021 and 2020, respectively. Total revenue in the United States was $65.0 million, and $54.3 million for the nine month periods ended September 30, 2021 and 2020, respectively. The Company’s assets are primarily located in the United States and therefore are not allocated to any specific geographic region.

Contract balances and remaining performance obligations

Contract liabilities are comprised of the current and long-term portions of deferred revenue of $8.5 million and $7.0 million as of September 30, 2021 and December 31, 2020, respectively, and customer deposits of $1.3 million and $1.6 million as of September 30, 2021 and December 31, 2020, respectively, included within the condensed consolidated balance sheets. Total contract liabilities increased by $1.2 million as of September 30, 2021 as a result of additional deferred revenue of $11.1 million associated primarily with new or extended service contracts, partially offset by the recognition of previously deferred revenue and customer deposits of $9.9 million for the completion of certain performance obligations during the period. The Company recorded contract assets of $0.6 million as of September 30, 2021 related to revenues recognized, but not yet invoiced to customers. The Company did not record any contract assets as of December 31, 2020. The Company’s contractual payment terms for its contracts with customers approximate 45 days on average.

As of September 30, 2021, unsatisfied or partially unsatisfied performance obligations related to undelivered products and service contracts were $9.9 million and are expected to be completed over the term of the related contract or as products are delivered.