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Revenue
6 Months Ended
Jun. 30, 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 June 30,

 

 

Six Months Ended June 30,

 

 

 

 

2018

 

 

 

2017

 

 

 

2018

 

 

 

2017

 

Clinical sample profiling services

 

$

20,709

 

 

$

11,977

 

 

$

36,298

 

 

$

22,626

 

Pharma sample profiling services

 

 

15,746

 

 

 

10,697

 

 

 

28,852

 

 

 

13,151

 

Other molecular information services

 

 

2,247

 

 

 

2,103

 

 

 

5,328

 

 

 

4,594

 

Total molecular information services

 

 

38,702

 

 

 

24,777

 

 

 

70,478

 

 

 

40,371

 

R&D and regulatory services

 

 

3,732

 

 

 

1,215

 

 

 

8,514

 

 

 

2,302

 

Total pharma research and development services

 

 

3,732

 

 

 

1,215

 

 

 

8,514

 

 

 

2,302

 

Total revenue

 

$

42,434

 

 

$

25,992

 

 

$

78,992

 

 

$

42,673

 

 

By Service Offering – Related Party:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

 

2018

 

 

 

2017

 

 

 

2018

 

 

 

2017

 

Clinical sample profiling services

 

$

3,089

 

 

$

964

 

 

$

6,287

 

 

$

1,934

 

Pharma sample profiling services

 

 

6,277

 

 

 

3,556

 

 

 

16,727

 

 

 

7,090

 

Other molecular information services

 

 

2,639

 

 

 

1,000

 

 

 

3,806

 

 

 

2,000

 

Total molecular information services

 

 

12,005

 

 

 

5,520

 

 

 

26,820

 

 

 

11,024

 

R&D and regulatory services

 

 

2,567

 

 

 

3,492

 

 

 

4,034

 

 

 

7,635

 

Total pharma research and development services

 

 

2,567

 

 

 

3,492

 

 

 

4,034

 

 

 

7,635

 

Total revenue

 

$

14,572

 

 

$

9,012

 

 

$

30,854

 

 

$

18,659

 

On June 30, 2018, we had $138.6 million of remaining transaction price allocated to performance obligations which are unsatisfied or partially unsatisfied, of which $57.4 million is associated with related parties. For the $57.4 million associated with related parties, we expect to recognize approximately 64 percent of our remaining transaction price as revenue within the next 12 months following June 30, 2018 and an additional 34 percent in the 12 months thereafter, and the remaining 2 percent thereafter. For the remaining $81.2 million, we expect to recognize approximately 39 percent of our remaining transaction price as revenue within the next 12 months following June 30, 2018, an additional 26 percent in the 12 months thereafter, and the remaining 35 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 research and development service contracts, as well as the molecular information platform program within the R&D Collaboration Agreement with Roche.

During the three and six months ended June 30, 2018, we recognized $1.7 million and $3.0 million, respectively, 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.