Segment Reporting

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Reporting

(15) Segment Reporting

The Company has determined that its chief executive officer (“CEO”) is its chief operating decision maker (“CODM”). The Company’s CEO evaluates the financial performance of the Company based on two reportable segments: Software and Drug Discovery. The Software segment is focused on licensing the Company’s software to transform molecular discovery. The Drug Discovery segment is focused on building a portfolio of preclinical and clinical drug programs, internally and through collaborations. 

The CODM reviews segment performance and allocates resources based upon segment revenue and segment gross profit of the Software and Drug Discovery reportable segments.  Segment gross profit is derived by deducting operational expenditures, with the exception of research and development, sales and marketing, and general and administrative activities from U.S. GAAP revenue. Operational expenditures are expenditures made that are directly attributable to the reportable segment. These expenditures are allocated to the segments based on headcount. The reportable segment expenditures include compensation, supplies, and services from contract research organizations.

Certain cost items are not allocated to the Company’s reportable segments. These cost items primarily consist of compensation and general operational expenses associated with the Company’s research and development, sales and marketing, and general and administrative.  These costs are incurred by both segments and due to the integrated nature of the Company’s Software and Drug Discovery segments, any allocation methodology would be arbitrary and provide no meaningful analysis.

All segment revenue is earned in the United States and there are no intersegment revenues. Additionally, the Company reports assets on a consolidated basis and does not allocate assets to its reportable segments for purposes of assessing segment performance or allocating resources. Presented below is financial information with respect to the Company’s reportable segments for the periods presented:

	Year Ended December 31,
	2021			2020			2019
Segment revenues:
Software	$	113,236		$	92,530		$	66,735
Drug discovery		24,695			15,565			18,808
Total segment revenues	$	137,931		$	108,095		$	85,543
Segment gross profit:
Software	$	86,741		$	74,527		$	53,089
Drug discovery		(21,121	)		(11,055	)		(3,996	)
Total segment gross profit		65,620			63,472			49,093
Unallocated:
Research and development		(90,904	)		(64,695	)		(39,404	)
Sales and marketing		(22,150	)		(17,795	)		(21,364	)
General and administrative		(64,009	)		(41,898	)		(27,040	)
(Loss) gain on equity investments		(1,781	)		4,108			943
Change in fair value		11,359			28,263			9,922
Interest income		1,057			2,253			1,878
Income tax (expense) benefit		(411	)		(345	)		291
Consolidated net loss	$	(101,219	)	$	(26,637	)	$	(25,681	)

The following table sets forth revenues by geographic area for the years ended December 31, 2021, 2020, and 2019:

	Year Ended December 31,
	2021		2020		2019
United States	$	90,398	$	60,737	$	47,622
Europe		27,810		24,370		17,504
Japan		8,565		14,558		14,367
Rest of World		11,158		8,430		6,050
	$	137,931	$	108,095	$	85,543