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Segment Reporting
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Reporting

(13)

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:

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Segment revenues:

 

 

 

 

 

 

 

 

Software

 

$

26,340

 

 

$

23,812

 

Drug discovery

 

 

5,787

 

 

 

2,362

 

Total segment revenues

 

$

32,127

 

 

$

26,174

 

Segment gross profit:

 

 

 

 

 

 

 

 

Software

 

$

20,434

 

 

$

19,811

 

Drug discovery

 

 

(4,270

)

 

 

(4,186

)

Total segment gross profit

 

 

16,164

 

 

 

15,625

 

Unallocated:

 

 

 

 

 

 

 

 

Research and development

 

 

(21,448

)

 

 

(13,700

)

Sales and marketing

 

 

(5,239

)

 

 

(4,789

)

General and administrative

 

 

(13,389

)

 

 

(8,936

)

Loss on equity investments

 

 

(1,781

)

 

 

—

 

Change in fair value

 

 

24,824

 

 

 

(3,079

)

Interest income

 

 

420

 

 

 

699

 

Income tax expense

 

 

(74

)

 

 

(91

)

Consolidated net loss

 

$

(523

)

 

$

(14,271

)

The following table sets forth revenues by geographic area for the three months ended March 31, 2021 and 2020:

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

United States

 

$

16,905

 

 

$

13,486

 

Europe

 

 

10,545

 

 

 

8,281

 

Japan

 

 

1,535

 

 

 

1,970

 

Rest of World

 

 

3,142

 

 

 

2,437

 

 

 

$

32,127

 

 

$

26,174