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Revenue
3 Months Ended
Jun. 30, 2023
Disaggregation of Revenue [Abstract]  
Revenue

3. Revenue

Disaggregation of Revenue

The following table presents revenue by category:

 

 

 

Three Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

 

Amount

 

 

% of Revenue

 

 

Amount

 

 

% of Revenue

 

 

 

(in thousands, except percentages)

 

Point in Time

 

 

 

 

 

 

 

 

 

 

 

 

PGS

 

$

31,759

 

 

 

52

%

 

$

39,691

 

 

 

61

%

Telehealth

 

 

8,285

 

 

 

14

%

 

 

9,361

 

 

 

15

%

Consumer services

 

 

40,044

 

 

 

66

%

 

 

49,052

 

 

 

76

%

Research services

 

 

2,353

 

 

 

3

%

 

 

 

 

 

0

%

Total

 

$

42,397

 

 

 

69

%

 

$

49,052

 

 

 

76

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Over Time

 

 

 

 

 

 

 

 

 

 

 

 

PGS

 

$

5,270

 

 

 

9

%

 

$

4,484

 

 

 

7

%

Telehealth

 

 

2,238

 

 

 

4

%

 

 

2,523

 

 

 

4

%

Consumer services

 

 

7,508

 

 

 

13

%

 

 

7,007

 

 

 

11

%

Research services

 

 

10,959

 

 

 

18

%

 

 

8,454

 

 

 

13

%

Total

 

$

18,467

 

 

 

31

%

 

$

15,461

 

 

 

24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by Category

 

 

 

 

 

 

 

 

 

 

 

 

PGS

 

$

37,029

 

 

 

61

%

 

$

44,175

 

 

 

68

%

Telehealth

 

 

10,523

 

 

 

18

%

 

 

11,884

 

 

 

19

%

Consumer services

 

 

47,552

 

 

 

79

%

 

 

56,059

 

 

 

87

%

Research services

 

 

13,312

 

 

 

21

%

 

 

8,454

 

 

 

13

%

Total

 

$

60,864

 

 

 

100

%

 

$

64,513

 

 

 

100

%

The following table summarizes revenue by region based on the shipping address of customers or the location where the services are delivered:

 

 

Three Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

 

Amount

 

 

% of Revenue

 

 

Amount

 

 

% of Revenue

 

 

 

(in thousands, except percentages)

 

United States

 

$

43,326

 

 

 

71

%

 

$

48,108

 

 

 

75

%

United Kingdom

 

 

14,355

 

 

 

24

%

 

 

11,975

 

 

 

19

%

Canada

 

 

2,170

 

 

 

3

%

 

 

3,039

 

 

 

4

%

Other regions

 

 

1,013

 

 

 

2

%

 

 

1,391

 

 

 

2

%

Total

 

$

60,864

 

 

 

100

%

 

$

64,513

 

 

 

100

%

Breakage Revenue

The Company sells through multiple channels, including direct-to-consumer via the Company’s website and through online retailers. If the customer does not return the Kit for processing, services cannot be completed by the Company, potentially resulting in unexercised rights (“breakage”) revenue. The Company recognized breakage revenue from unreturned Kits of $4.6 million and $5.0 million for the three months ended June 30, 2023 and 2022, respectively.

Contract Balances

Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts associated with contractual rights related to consideration for performance obligations and are included in prepaid expenses and other current assets on the condensed consolidated balance sheets. The amount of contract assets was immaterial as of June 30, 2023 and March 31, 2023.

Contract liabilities consist of deferred revenue. As of June 30, 2023 and March 31, 2023, deferred revenue for consumer services was $45.9 million and $48.6 million, respectively. Of the $48.6 million of deferred revenue for consumer services as of March 31, 2023, the Company recognized $22.5 million as revenue during the three months ended June 30, 2023.

As of June 30, 2023 and March 31, 2023, deferred revenue for research services was $2.2 million and $14.0 million, respectively, which included related party deferred revenue amounts of $1.1 million and $11.8 million, respectively. Of the $14.0 million of deferred revenue for research services as of March 31, 2023, the Company recognized $12.4 million as revenue during the three months ended June 30, 2023, which included related party revenue amounts of $10.7 million.

Remaining Performance Obligations

The transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that are expected to be billed and recognized as revenue in future periods. The Company has utilized the practical expedient available under Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”) to not disclose the value of unsatisfied performance obligations for PGS and telehealth as those contracts have an expected length of one year or less. As of June 30, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations for research services was $3.1 million. The Company expects to recognize revenue of approximately 81% of this amount over the next 12 months and the remainder thereafter. During the three months ended June 30, 2023 and 2022, the Company did not recognize any revenue for performance obligations satisfied in prior periods.