Segment Information

12 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company currently operates in two reporting segments: (1) Consumer and Research Services, and (2) 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 original 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 Note 5 “Revenue” for additional information. 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 the Company’s business, including but not limited to: changes in fair value of warrant liabilities, litigation settlements, gains or losses on dispositions of subsidiaries, acquisition transaction-related costs, and cybersecurity incident expenses, net of probable insurance recoveries, 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:

	Year Ended March 31,
	2024		2023		2022
	(in thousands)
Segment Revenue: (1)
Consumer and Research Services	$	219,638	$	299,489	$	271,893
Total revenue	$	219,638	$	299,489	$	271,893
Segment Adjusted EBITDA:
Consumer and Research Services Adjusted EBITDA	$	(36,769)	$	(17,997)	$	(30,112)
Therapeutics Adjusted EBITDA	(91,025)		(88,503)		(76,944)
Unallocated Corporate (2)	(48,002)		(54,801)		(43,684)
Total Adjusted EBITDA	$	(175,796)	$	(161,301)	$	(150,740)
Reconciliation of net loss to Adjusted EBITDA:
Net loss	$	(666,704)	$	(311,656)	$	(217,490)
Adjustments
Interest income, net	(14,331)		(9,676)		(277)
Other (income) expense, net	(506)		93		83
Change in fair value of warrant liabilities	—		—		(32,989)
Provision for (benefit from) income taxes	73		(2,772)		(3,480)
Depreciation and amortization	18,033		20,239		18,899
Amortization of acquired intangible assets	11,448		16,486		7,269
Impairment of acquired intangible assets	—		9,968		—
Stock-based compensation expense	120,209		116,017		57,933
Acquisition-related costs (3)	—		—		9,362
Litigation settlement, net (4)	98		—		9,950
Loss on disposition of Lemonaid Health Limited and transaction-related costs (5)	2,375		—		—
Goodwill impairment (6)	351,744		—		—
Cybersecurity incident expenses, net of probable insurance recoveries (7)	1,765		—		—
Total Adjusted EBITDA	$	(175,796)	$	(161,301)	$	(150,740)

(1)All product and service revenue is associated with the Consumer and Research Services segment and there was no Therapeutics revenue for the fiscal years ended March 31, 2024, 2023 and 2022.

(2)Certain 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)For the fiscal year ended March 31, 2022, acquisition-related costs primarily consisted of advisory, legal and consulting fees.

(4)Litigation settlement, net is litigation cost net of probable insurance recoveries, which is not expected to occur on a recurring basis and not part of the Company's normal and continued business activity.

(5)Refer to Note 19, “Disposition of Subsidiary” for additional information.

(6)Refer to Note 10, “Balance Sheet Components — Goodwill” for additional information.

(7)Refer to Note 13, “Commitments and Contingencies — Cybersecurity Incident” for additional information.

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

	Year Ended March 31,
	2024				2023				2022
	(in thousands, except percentages)
Consumer and Research Services Segment Revenue:
Customer C (1) (2)	$	48,325	22	%	$	65,721	22	%	$	53,875	20	%
Customer B (3)	$	11,753	5	%	$	47,448	16	%	$	46,064	17	%

(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 from customers by service and by geographical region can be found in the revenue recognition disclosures in Note 5, “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.