Revenue

3 Months Ended

Mar. 31, 2024

Revenue From Contract With Customer [Abstract]

Revenue

Note 3. Revenue

The Company disaggregates revenue by the following four customer types:

•Pharma tests and services includes sales of testing services and data analytics for clinical trials and research to pharmaceutical companies in support of their drug development programs. Contracts typically contemplate a single project and involve a range of tests and analytics to fulfill the requirements of each particular project.

•Enterprise sales includes sales of tumor profiling and diagnostic tests directly to another business as an input to their products. The Company is typically contracted to deliver specified tests and analytics in high volume over time. Revenue from the Company's partnership with Natera to provide advanced tumor analysis for use in Natera's molecular residual disease ("MRD") test makes up substantially all of the revenue in this category.

•Population sequencing includes sales of genomic sequencing services and data analytics to support large-scale genetic research programs. The Company is typically contracted to perform whole genome sequencing and provide data that can be used for analysis across a large volume of samples. All of the revenue within this category is from the Company's partnership with the VA MVP.

•Other includes sales of genomic tests and analytics to universities and non-profits. Other also includes sales of diagnostics tests ordered by healthcare providers for cancer patients.

The following table presents the Company’s revenue disaggregated by customer type (in thousands):

	Three Months Ended March 31,
	2024		2023
Pharma tests and services	$	9,812	$	6,333
Enterprise sales		7,972		9,458
Population sequencing		1,500		3,005
Other		241		64
Total revenue	$	19,525	$	18,860

Revenue from countries outside of the United States, based on the billing addresses of customers, represented approximately 4% and 13% of the Company’s revenue for the three months ended March 31, 2024 and 2023, respectively.

Contract Assets and Liabilities

The opening and closing balances of receivables and contract liabilities from contracts with customers are shown below (in thousands). Contract assets were immaterial for all periods presented.

	March 31, 2024		December 31, 2023
Opening balances:
Accounts receivable, net	$	17,730	$	16,642
Short-term contract liabilities	$	3,288	$	1,264
Long-term contract liabilities (included in other long-term liabilities)		3,928		—
Total contract liabilities		7,216		1,264
Closing balances:
Accounts receivable, net	$	11,345	$	17,730
Short-term contract liabilities	$	3,526	$	3,288
Long-term contract liabilities (included in other long-term liabilities)		2,097		3,928
Total contract liabilities		5,623		7,216

Amounts collected in advance of services being provided are deferred as contract liabilities in the condensed consolidated balance sheets. The associated revenue is recognized, and the contract liability is reduced, as the services are subsequently performed. As of March 31, 2024, amounts related to unfulfilled services under contracts with an original expected duration of more than one year was $4.5 million. The Company expects to recognize approximately $2.4 million of this amount in the next 12 months, and the remaining $2.1 million in the 12 months after that. Revenue recognized that was included in the contract liability balance at the beginning of each reporting period was $2.0 million for the three months ended March 31, 2024, and was immaterial for the three months ended March 31, 2023.