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Segment Reporting
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting 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 non-drug discovery program related 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.
Segment revenue is primarily 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 September 30,Nine Months Ended September 30,
2024202320242023
Segment revenues:
Software$31,884 $28,904 $100,703 $90,469 
Drug discovery3,406 13,665 18,519 52,071 
Total segment revenues$35,290 $42,569 $119,222 $142,540 
Segment gross profit:    
Software$23,405 $21,870 $77,081 $69,625 
Drug discovery(5,677)1,769 (9,128)13,517 
Total segment gross profit17,728 23,639 67,953 83,142 
Unallocated:    
Research and development(50,977)(46,833)(152,423)(130,279)
Sales and marketing(10,349)(9,109)(30,213)(27,276)
General and administrative(24,824)(23,890)(73,901)(73,414)
Gain on equity investments— — — 147,322 
Change in fair value25,459 (14,522)27,763 61,869 
Other income4,737 5,804 14,363 13,067 
Income tax benefit (expense)90 2,887 (449)(3,041)
Consolidated net (loss) income$(38,136)$(62,024)$(146,907)$71,390 
Revenues by geographic area are determined based on the address provided by the Company's customers and partners. The following table sets forth revenues by geographic area for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
United States$24,622 $33,127 $78,617 $107,435 
APAC5,280 5,567 19,490 18,877 
EMEA5,145 3,758 20,147 15,418 
Rest of World243 117 968 810 
$35,290 $42,569 $119,222 $142,540