Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2023

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 spatial biology and its nCounter Analysis systems and the consumables and services related to these platforms.

Disaggregated Revenues

The following table of total revenue is based on the geographic location of end users or distributors who purchase products and services. 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 June 30, 2023								Six Months Ended June 30, 2023
	Americas		Europe and Middle East		Asia Pacific		Total		Americas		Europe and Middle East		Asia Pacific		Total
Instruments	$	11,536	$	3,509	$	2,584	$	17,629	$	17,555	$	7,631	$	3,813	$	28,999
Consumables	13,882		5,956		1,419		21,257		26,631		11,327		3,075		41,033
Service and other revenue	3,616		1,280		375		5,271		6,861		2,303		766		9,930
Total revenue	$	29,034	$	10,745	$	4,378	$	44,157	$	51,047	$	21,261	$	7,654	$	79,962

	Three Months Ended June 30, 2022								Six Months Ended June 30, 2022
	Americas		Europe and Middle East		Asia Pacific		Total		Americas		Europe and Middle East		Asia Pacific		Total
Instruments	$	5,810	$	2,214	$	1,514	$	9,538	$	11,509	$	3,960	$	3,172	$	18,641
Consumables	12,699		4,085		1,063		17,847		24,974		8,090		2,251		35,315
Service and other revenue	3,400		1,229		205		4,834		6,687		2,227		429		9,343
Total revenue	$	21,909	$	7,528	$	2,782	$	32,219	$	43,170	$	14,277	$	5,852	$	63,299

Total revenue in the United States was $28.5 million, $21.5 million, $49.8 million and $41.9 million for the three and six month periods ended June 30, 2023 and 2022, 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 $16.9 million and $13.0 million as of June 30, 2023 and December 31, 2022, respectively, and customer deposits of $2.1 million and $1.8 million as of June 30, 2023 and December 31, 2022, respectively, included within the condensed consolidated balance sheets. Total contract liabilities increased by $4.2 million as of June 30, 2023 as a result of additional deferred revenue of $12.4 million associated primarily with new or extended service contracts partially offset by the recognition of previously deferred revenue and customer deposits of $8.2 million for the completion of certain performance obligations during the period. The Company recorded contract assets of $0.9 million and $1.1 million as of June 30, 2023 and December 31, 2022, respectively, related to revenues recognized, but not yet invoiced to customers. The Company’s contractual payment terms for its contracts with customers approximates 40 days on average.

As of June 30, 2023, unsatisfied or partially unsatisfied performance obligations related to undelivered products and service contracts were $19.0 million and are expected to be completed over the term of the related contract or as products are delivered.