Segment Information

6 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Information

5. Segment Information

The Company currently operates in two reporting segments: Consumer and Research Services, and Therapeutics. The Consumer and Research Services segment consists of revenue and expenses from PGS and telehealth, as well as research services revenue and expenses from certain collaboration agreements (including the GSK Agreement). The Therapeutics segment consists of revenues from the out-licensing of intellectual property associated with identified drug targets and expenses related to therapeutic product candidates under clinical development. Substantially all of the Company’s revenues are derived from the Consumer and Research Services segment. See Revenue Recognition in Note 3, “Revenue,” for additional information regarding revenue. There are no inter-segment sales.

Certain department expenses such as Finance, Legal, Regulatory and Supplier Quality, Corporate Communications, Corporate Development, and CEO Office are not reported as part of the reporting segments as reviewed by the CODM (as defined below). These amounts are included in Unallocated Corporate in the reconciliations below. The chief operating decision-maker (“CODM”) is the Chief Executive Officer (“CEO”). The CODM evaluates the performance of each segment based on Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure that is defined as net income (loss) before net interest income (expense), net other income (expense), income tax expenses (benefit), depreciation and amortization, impairment charges, stock-based compensation expense, and other items that are considered unusual or not representative of underlying trends of our business, including but not limited to: changes in fair value of warrant liabilities and litigation settlements, gains or losses on dispositions of subsidiaries, and transaction-related costs, if applicable for the periods presented.

Adjusted EBITDA is a key measure used by the Company’s management and Board of Directors to understand and evaluate the Company’s operating performance and trends, to prepare and approve the annual budget, and to develop short-term and long-term operating plans.

The Company’s revenue and Adjusted EBITDA by segment is as follows:

	Three Months Ended September 30,						Six Months Ended September 30,
	2023			2022			2023			2022
	(in thousands)						(in thousands)
Segment Revenue: (1)
Consumer and Research Services	$	49,999		$	75,659		$	110,863		$	140,172
Total revenue	$	49,999		$	75,659		$	110,863		$	140,172
Segment Adjusted EBITDA:
Consumer and Research Services Adjusted EBITDA	$	(6,673	)	$	2,324		$	(12,275	)	$	(14,673	)
Therapeutics Adjusted EBITDA		(26,224	)		(18,663	)		(57,363	)		(37,128	)
Unallocated Corporate (2)		(12,156	)		(13,316	)		(25,215	)		(27,568	)
Total Adjusted EBITDA	$	(45,053	)	$	(29,655	)	$	(94,853	)	$	(79,369	)
Reconciliation of net loss to Adjusted EBITDA:
Net loss	$	(75,270	)	$	(66,065	)	$	(179,894	)	$	(155,597	)
Adjustments:
Interest income, net		(3,752	)		(1,392	)		(8,059	)		(1,637	)
Other (income) expense, net		(145	)		687			(477	)		1,122
Provision for (benefit from) income taxes		36			(1,271	)		36			(1,525	)
Depreciation and amortization		4,474			5,152			8,951			10,256
Amortization of acquired intangible assets		3,638			4,267			7,277			8,582
Stock-based compensation expense		23,741			28,967			74,840			59,430
Loss on disposition of Lemonaid Health Limited and transaction-related costs (3)		2,127			—			2,375			—
Litigation settlement cost		98			—			98			—
Total Adjusted EBITDA	$	(45,053	)	$	(29,655	)	$	(94,853	)	$	(79,369	)

(1)There was no Therapeutics revenue for the three and six months ended September 30, 2023 and 2022.

(2)Certain department expenses such as Finance, Legal, Regulatory and Supplier Quality, Corporate Communications, Corporate Development, and CEO Office are not reported as part of the reporting segments as reviewed by the CODM. These amounts are included in Unallocated Corporate.

(3)Refer to Note 17, “Disposition of Subsidiary” for additional information.

Customers accounting for 10% or more of segment revenues were as follows:

	Three Months Ended September 30,									Six Months Ended September 30,
	2023					2022				2023				2022
	(in thousands)									(in thousands)
Consumer and Research Services Segment Revenue:
Customer C (1) (2)	$	13,040		26	%	$	17,057	23	%	$	22,751	21	%	$	26,684	19	%
Customer B (3)	*		*			$	14,925	20	%	$	11,753	11	%	$	23,190	17	%

* less than 10%

(1)Customer C is a reseller.

(2)Customer C revenues are primarily in the United States.

(3)Customer B revenues are in the U.K.

Revenue by geographical region can be found in the revenue recognition disclosures in Note 3, “Revenue.” Substantially all of the Company’s property and equipment, net of depreciation and amortization, was located in the United States during the periods presented. The reporting segments do not present total assets as they are not reviewed by the CODM when evaluating their performance.