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Revenue
3 Months Ended
Mar. 31, 2018
Revenue From Contract With Customer [Abstract]  
Revenue

4.

Revenue

Refer to Note 2: Summary of Significant Accounting Policies and Note 7: Contract Balances for a complete description of our revenue recognition policy under ASC 606, as well as comparative information demonstrating the impact of ASC 606 on our consolidated financial statements.

 

We disaggregate our revenue from contracts with customers by type of service, as we believe this best depicts how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors. The following tables present our revenue disaggregated by type of service.

By Service Offering – Third Party:

 

 

Three Months Ended March 31,

 

 

 

 

2018

 

 

 

2017

 

Clinical sample profiling services

 

$

15,589

 

 

$

10,649

 

Pharma sample profiling services

 

 

13,106

 

 

 

2,454

 

Other molecular information services

 

 

3,248

 

 

 

2,491

 

Total molecular information services

 

 

31,943

 

 

 

15,594

 

R&D and regulatory services

 

 

4,782

 

 

 

1,087

 

Total pharma research and development services

 

 

4,782

 

 

 

1,087

 

Total revenue

 

$

36,725

 

 

$

16,681

 

 

By Service Offering – Related Party:

 

 

Three Months Ended March 31,

 

 

 

 

2018

 

 

 

2017

 

Clinical sample profiling services

 

$

3,198

 

 

$

970

 

Pharma sample profiling services

 

 

10,450

 

 

 

3,534

 

Other molecular information services

 

 

1,000

 

 

 

1,000

 

Total molecular information services

 

 

14,648

 

 

 

5,504

 

R&D and regulatory services

 

 

1,467

 

 

 

4,143

 

Total pharma research and development services

 

 

1,467

 

 

 

4,143

 

Total revenue

 

$

16,115

 

 

$

9,647

 

 

On March 31, 2018, we had $96.1 million of remaining transaction price allocated to performance obligations which are unsatisfied or partially unsatisfied, of which $51.4 million is associated with related parties. For the $51.4 million associated with related parties, we expect to recognize approximately 58 percent of our remaining transaction price as revenue within the next 12 months following March 31, 2018 and an additional 42 percent in the 12 months thereafter. For the remaining $44.7 million, we expect to recognize approximately 23 percent of our remaining transaction price as revenue within the next 12 months following March 31, 2018, an additional 30 percent in the 12 months thereafter, and the remaining 47 percent thereafter. We have elected to utilize the practical expedient of excluding contracts with an original duration of one year or less. As a result, the majority of our molecular information services contracts are excluded from the calculation and the balance is primarily comprised of transaction price associated with our long-term pharma R&D service contracts, as well as the molecular information platform program within the R&D Collaboration Agreement with Roche.

During the three months ended March 31, 2018, we recognized $1.2 million of revenue from performance obligations satisfied in prior periods, as a result of changes in the estimation of the transaction price for certain arrangements. Changes in the estimation of the transaction price for our clinical molecular information services revenue occur when we adjust our initial estimate based on actual cash collection experience from payors. Changes in the estimation of the transaction price for our pharma research and development services revenue occur based on revisions to our estimate of the constraint for variable consideration of performance-based milestones.