0001299130-23-000098 | 10-Q | XBRL Viewer | Pacific Biosciences OF California INC

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BALANCE SHEET COMPONENTS - Narrative (Details) - USD ($)		3 Months Ended		6 Months Ended
	Sep. 30, 2021	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Balance Sheet Components [Line Items]
Goodwill, impairment loss		$ 0
Deferred revenue		30,000,000		$ 30,000,000
Deferred revenue, current		24,983,000		24,983,000		$ 30,498,000
Deferred revenue, non-current		4,992,000		4,992,000		$ 1,794,000
Revenue recognized		4,500,000		8,000,000
Revenue recognized		47,573,000	$ 35,467,000	$ 86,473,000	$ 68,640,000
Standard product warranty, period				1 year
Product revenue
Balance Sheet Components [Line Items]
Revenue recognized		43,655,000	$ 30,175,000	$ 78,309,000	$ 58,419,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Balance Sheet Components [Line Items]
Remaining performance obligation		$ 5,000,000		$ 5,000,000
Remaining performance obligation period		6 years		6 years
Term Loans
Balance Sheet Components [Line Items]
Short- and long-term debt		$ 1,400,000		$ 1,400,000
Interest expense, debt		100,000		200,000
Term Loans \| Minimum
Balance Sheet Components [Line Items]
Debt instrument, term loan, elective option	24 months
Term Loans \| Maximum
Balance Sheet Components [Line Items]
Debt instrument, term loan, elective option	43 months
Term Loans \| Secured Debt
Balance Sheet Components [Line Items]
Debt instrument, term	43 months
Debt instrument, stated interest rate	17.00%
Percentage of fee to prepay debt	4.00%
Omniome, Inc
Balance Sheet Components [Line Items]
Short term debt acquired	$ 1,300,000
Long-term debt acquired	3,000,000
Omniome, Inc \| In Process Research and Development
Balance Sheet Components [Line Items]
Indefinite-lived intangible assets	$ 400,000,000
Invitae Corporation
Balance Sheet Components [Line Items]
Deferred revenue, non-current		3,000,000		3,000,000
Invitae Corporation \| Product revenue
Balance Sheet Components [Line Items]
Revenue recognized		$ 2,100,000		$ 2,100,000

REVENUE

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

REVENUE

A summary of our revenue by geographic location is as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Americas	$	23,960	$	21,722	$	43,031	$	40,804
Europe, Middle East and Africa	10,730		5,735		18,600		11,435
Asia-Pacific	12,883		8,010		24,842		16,401
Total	$	47,573	$	35,467	$	86,473	$	68,640

A summary of our revenue by category is as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Instrument revenue	$	29,923	$	15,619	$	50,623	$	31,169
Consumable revenue	13,732		14,556		27,686		27,250
Product revenue	43,655		30,175		78,309		58,419
Service and other revenue	3,918		5,292		8,164		10,221
Total revenue	$	47,573	$	35,467	$	86,473	$	68,640

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES	ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES We are a life science technology company that is designing, developing, and manufacturing advanced sequencing solutions that enable scientists and clinical researchers to improve their understanding of the genome and ultimately, resolve genetically complex problems. Our products and technology under development stem from two highly differentiated core technologies focused on accuracy, quality, and completeness, which include our existing HiFi long-read sequencing technology and our emerging short-read Sequencing by Binding (SBBTM) technology. Our products address solutions across a broad set of applications including human genomics, plant and animal sciences, infectious disease and microbiology, oncology, and other emerging applications. Our focus is on providing our customers with advanced sequencing solutions with higher throughput and improved workflows that we believe will enable dramatic advancements in routine healthcare. Our customers include academic and governmental research institutions, commercial testing and service laboratories, genome centers, public health labs, hospitals and clinical research institutes, contract research organizations ("CROs"), pharmaceutical companies, and agricultural companies. References in this report to “PacBio,” “we,” “us,” the “Company,” and “our” refer to Pacific Biosciences of California, Inc. and its consolidated subsidiaries. Basis of Presentation and Consolidation Our unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States, or U.S. GAAP, as set forth in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC. The unaudited condensed consolidated financial statements include the accounts of Pacific Biosciences and our wholly owned subsidiaries. Certain information and footnote disclosures typically included in our audited financial statements have been condensed or omitted. The accompanying unaudited condensed consolidated financial statements have been prepared on a consistent basis with the December 31, 2022 audited consolidated financial statements and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state our financial position, results of operations, comprehensive loss, and cash flows for the period, but are not necessarily indicative of the results to be expected for the entire year or any future periods. All intercompany transactions and balances have been eliminated. Certain prior period amounts have been reclassified to conform to current period presentation. The financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2022. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes to the financial statements. On an ongoing basis, we evaluate our significant estimates including, but not limited to, the valuation of inventory, the determination of stand-alone selling prices for revenue recognition, the fair value of contingent consideration, the valuation of acquired intangible assets, the fair value of certain equity awards, the useful lives assigned to long-lived assets, the computation of provisions for income taxes, the borrowing rate used in calculating the operating lease right-of-use assets and operating lease liabilities, the probability associated with variable payments under partnership development agreements, and the valuations related to our convertible senior notes. While the extent of the potential impact of the current macroeconomic conditions on our business is highly uncertain, we considered information available related to assumptions and estimates used to determine the results reported and asset valuations as of June 30, 2023. Actual results could differ materially from these estimates. Cash, Cash Equivalents, Restricted Cash and Investments We consider all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents may be comprised of money market funds, certificates of deposit, commercial paper, corporate bonds and notes, and government agencies’ securities. We classify our investments in debt securities as available-for sale and report the investments at fair value in current assets. We evaluate our available-for-sale investments in unrealized loss positions and assess whether the unrealized loss is credit-related. Unrealized gains and losses that are not credit-related are recognized in accumulated other comprehensive loss in stockholders’ equity. Realized gains and losses, expected credit losses, as well as interest income, on available-for-sale securities are also reported in other income (expense), net. The cost used in the determination of gains and losses of securities sold is based on the specific identification method. The cost of marketable securities is adjusted for the amortization of premiums and discounts to expected maturity. Premium and discount amortization is recorded in other income (expense), net. Our investment portfolio at any point in time contains investments in cash deposits, money market funds, commercial paper, corporate debt securities and U.S. government and agency securities with high credit ratings. We have established guidelines regarding diversification and maturities of investments with the objectives of maintaining safety and liquidity, while maximizing yield. Restricted cash includes cash that is not readily available for use in the Company’s operating activities. Restricted cash is primarily comprised of cash pledged under letters of credit. Concentration and Other Risks For the three months ended June 30, 2023, one customer accounted for approximately 10% of total revenue during the period. For the three months ended June 30, 2022, one customer accounted for approximately 11% of total revenue during the period. For the six months ended June 30, 2023 and 2022, no customers accounted for approximately 10% or greater of total revenue during the respective periods. No other customers exceeded 10% during those periods. As of June 30, 2023, 45% of our accounts receivable were from domestic customers, compared to 57% as of December 31, 2022. As of June 30, 2023, no customer represented 10% or greater of our accounts receivable, while one customer represented approximately 10% of our net accounts receivable as of December 31, 2022. Recent Accounting Pronouncements Recently Adopted Accounting Standards In October 2021, the FASB issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU provides specific guidance on how to recognize contract assets and contract liabilities related to revenue contracts with customers acquired in a business combination. This amendment improves comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. We adopted this ASU on January 1, 2023. The adoption of this guidance did not have a material effect on our consolidated financial statements. Significant Accounting Policies There have been no changes to our significant accounting policies as disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

STOCKHOLDERS’ EQUITY - Summary of Stock Option Activity (Details) - Performance Stock Units (PSU)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Number of shares
Outstanding, beginning (in shares) \| shares	258,000
Granted (in shares) \| shares	0
Exercised (in shares) \| shares	(251,000)
Canceled (in shares) \| shares	(4,000)
Outstanding, ending (in shares) \| shares	3,000
Weighted average exercise price
Beginning, outstanding (in dollars per share) \| $ / shares	$ 4.71
Granted (in dollars per share) \| $ / shares	0
Exercised (in dollars per share) \| $ / shares	4.71
Canceled (in dollars per share) \| $ / shares	4.71
Ending, outstanding (in dollars per share) \| $ / shares	$ 4.74

BALANCE SHEET COMPONENTS - Components of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Balance Sheet Components [Abstract]
Purchased materials	$ 25,225	$ 24,139
Work in process	22,598	14,062
Finished goods	19,785	12,180
Inventory, net	$ 67,608	$ 50,381

CONVERTIBLE SENIOR NOTES (Narrative) (Details) $ / shares in Units, $ in Thousands			3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) $ / shares	Feb. 16, 2021 USD ($) $ / shares	Jun. 30, 2023 USD ($) $ / shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) $ / shares	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Loss on extinguishment of debt			$ (2,033)	$ 0	$ (2,033)	$ 0
2030 Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount	$ 441,000		441,000		441,000		$ 0
Debt issuance costs	7,200		7,200		7,200
Aggregate outstanding balance	$ 434,328		$ 434,328		$ 434,328		0
2030 Convertible Senior Notes \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, stated interest rate	1.375%		1.375%		1.375%
Principal amount of notes	$ 441,000		$ 441,000		$ 441,000
Debt instrument, convertible, conversion ratio	0.046512
Conversion price per share (in dollars per share) \| $ / shares	$ 21.50		$ 21.50		$ 21.50
Debt redemption, percentage of conversion price	150.00%
Debt redemption, trading days	20 days
Debt redemption, consecutive trading days	30 days
Redemption price, percentage	100.00%
Debt instrument, debt default, calendar days	360 days
Debt instrument, interest in the event of default	0.25%
Additional interest in the event of default	0.50%
Debt instrument, effective interest rate	1.60%		1.60%		1.60%
Fair value of convertible debt	$ 441,600		$ 441,600		$ 441,600
2030 Convertible Senior Notes \| Convertible Debt \| Maximum
Debt Instrument [Line Items]
Debt instrument, debt default, calendar days	360 days
2030 Convertible Senior Notes \| Convertible Debt \| Minimum
Debt Instrument [Line Items]
Debt instrument, debt default, calendar days	181 days
2030 Convertible Senior Notes \| Debt Conversion Terms One \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, debt default, calendar days	180 days
2030 Convertible Senior Notes \| Debt Conversion Terms Two \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, debt default, calendar days	361 days
2028 Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount	$ 459,000		459,000		459,000		900,000
Debt issuance costs	1,500		1,500		1,500
Aggregate outstanding balance	457,467		457,467		457,467		$ 896,683
2028 Convertible Senior Notes \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, stated interest rate		1.50%
Principal amount of notes	441,000	$ 900,000	441,000		441,000
Principal amount	$ 459,000		$ 459,000		$ 459,000
Debt instrument, convertible, conversion ratio		0.0229885
Conversion price per share (in dollars per share) \| $ / shares		$ 43.50
Debt redemption, percentage of conversion price		150.00%
Debt redemption, trading days		20 days
Debt redemption, consecutive trading days		30 days
Redemption price, percentage		100.00%
Debt instrument, debt default, calendar days		360 days
Debt instrument, interest in the event of default		0.25%
Additional interest in the event of default		0.50%
Debt issuance costs		$ 4,500
Debt instrument, effective interest rate	1.60%		1.60%		1.60%
Aggregate outstanding balance	$ 459,000		$ 459,000		$ 459,000
Fair value of convertible debt	388,000		388,000		388,000
2028 Convertible Senior Notes \| Convertible Debt \| Maximum
Debt Instrument [Line Items]
Debt instrument, debt default, calendar days		360 days
2028 Convertible Senior Notes \| Convertible Debt \| Minimum
Debt Instrument [Line Items]
Debt instrument, debt default, calendar days		181 days
2028 Convertible Senior Notes \| Debt Conversion Terms One \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, debt default, calendar days		180 days
2028 Convertible Senior Notes \| Debt Conversion Terms Two \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, debt default, calendar days		361 days
Exchange Transaction
Debt Instrument [Line Items]
Loss on extinguishment of debt			2,000		2,000
Exchange Transaction \| Convertible Debt
Debt Instrument [Line Items]
Principal amount of notes	$ 441,000		$ 441,000		441,000
Paid accrued but unpaid interest					$ 2,500

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net loss	$ (69,833)	$ (71,394)	$ (157,848)	$ (152,893)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Reference 29: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

STOCKHOLDERS’ EQUITY (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Stock Option Activity

The following table summarizes stock option activity for time-based awards (shares in thousands):


	Number of shares	Weighted average exercise price
Outstanding at December 31, 2022	14,618	$	10.60
Granted	232	11.94
Exercised	(707)	4.76
Canceled	(581)	18.99
Outstanding at June 30, 2023	13,562	$	10.57

The following table summarizes stock option activity for performance-based awards (shares in thousands):


	Number of shares	Weighted average exercise price
Outstanding at December 31, 2022	258	$	4.71
Granted	—	—
Exercised	(251)	4.71
Canceled	(4)	4.71
Outstanding at June 30, 2023	3	$	4.74

Summary of Time-Based RSUs Activity

The following table summarizes the time-based RSUs and PSUs activity (shares in thousands):


	Restricted Stock Units (RSU)	Performance Stock Units (PSU)	Weighted average grant date fair value
			RSU		PSU
Outstanding at December 31, 2022	8,535	—	$	15.16	$	—
Granted	6,626	564	9.59		9.43
Vested	(1,831)	—	15.99		—
Forfeited	(687)	—	16.89		—
Outstanding at June 30, 2023	12,643	564	$	12.03	$	9.43

Schedule of Stock-Based Compensation Expense

The following table summarizes share-based compensation expense (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cost of revenue	$	1,177	$	988	$	3,126	$	2,746
Research and development	5,423		7,748		12,128		16,713
Sales, general and administrative	11,291		10,283		20,589		22,263
Total share-based compensation expense	$	17,891	$	19,019	$	35,843	$	41,722

Schedule of Fair Value of Employee Stock Options

The fair value of employee stock options was estimated using the following assumptions:


	Six Months Ended June 30,
		2023	2022
Expected term in years		4.9	4.6
Expected volatility		78%	70% — 72%
Risk-free interest rate		3.73%	1.76% — 2.77%
Dividend yield		—	—
Weighted average grant date fair value per share		$7.76	$6.05

Schedule of Fair Value of Employee Stock Purchase Plan

The fair value of shares to be issued under the ESPP was estimated using the following assumptions:


	Six Months Ended June 30,
		2023	2022
Expected term in years		0.5 — 2.0	0.5 — 2.0
Expected volatility		97%	70%
Risk-free interest rate		4.89% — 5.20%	0.60% — 1.31%
Dividend yield		—	—
Weighted average grant date fair value per share		$5.00	$5.42

COMMITMENTS AND CONTINGENCIES	6 Months Ended
COMMITMENTS AND CONTINGENCIES	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES The Company has entered into various operating lease agreements, primarily relating to our corporate offices. See Note 8 – Commitments and Contingencies, subsection titled “Leases”, in Part II, Item 8 of the Annual Report on Form 10-K for the year ended December 31, 2022 for information regarding the Company’s maturity of lease liabilities under its lease agreements. Contingencies We may become involved in legal proceedings, claims and assessments from time to time in the ordinary course of business. We accrue liabilities for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. We do not believe that the ultimate outcome of any such pending matters is probable or reasonably estimable, or that these matters will have a material adverse effect on our business; however, the results of litigation and claims are inherently unpredictable. Regardless of the outcome, litigation can have an adverse impact on us because of litigation and settlement costs, diversion of management resources, and other factors. Please see subsection titled Legal Proceedings, in Part II, Item 1 of this Quarterly Report on Form 10-Q. Indemnification Pursuant to Delaware law and agreements entered into with each of our directors and officers, we may have obligations, under certain circumstances, to hold harmless and indemnify each of our directors and officers against losses suffered or incurred by the indemnified party in connection with their service to us, and judgements, fines, settlements and expenses related to claims arising against such directors and officers to the fullest extent permitted under Delaware law, our bylaws and our certificate of incorporation. We also enter and have entered into indemnification agreements with our directors and officers that may require us to indemnify them against liabilities that arise by reason of their status or service as directors or officers, except as prohibited by applicable law. In addition, we may have obligations to hold harmless and indemnify third parties involved with our fundraising efforts and their respective affiliates, directors, officers, employees, agents or other representatives against any and all losses, claims, damages and liabilities related to claims arising against such parties pursuant to the terms of agreements entered into between such third parties and us in connection with such fundraising efforts. To the extent that any such indemnification obligations apply to the lawsuits described above, any associated expenses incurred are included within the related accrued litigation expense amounts. No additional liability associated with such indemnification obligations has been recorded as of June 30, 2023 and December 31, 2022.

- Definition

The entire disclosure for loss and gain contingencies. Describes any existing condition, situation, or set of circumstances involving uncertainty as of the balance sheet date (or prior to issuance of the financial statements) as to a probable or reasonably possible loss incurred by an entity that will ultimately be resolved when one or more future events occur or fail to occur, and typically discloses the amount of loss recorded or a range of possible loss, or an assertion that no reasonable estimate can be made.

+ References + Details

REVENUE - Schedule of Revenue by Geographic Location (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 47,573	$ 35,467	$ 86,473	$ 68,640
Americas
Disaggregation of Revenue [Line Items]
Total revenue	23,960	21,722	43,031	40,804
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total revenue	10,730	5,735	18,600	11,435
Asia-Pacific
Disaggregation of Revenue [Line Items]
Total revenue	$ 12,883	$ 8,010	$ 24,842	$ 16,401

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

STOCKHOLDERS’ EQUITY - Schedule of Fair Value of Employee Stock Purchase Plan (Details) - $ / shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Dividend yield	0.00%
ESPP
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility	97.00%	70.00%
Risk-free interest rate, minimum	4.89%	0.60%
Risk-free interest rate, maximum	5.20%	1.31%
Dividend yield	0.00%	0.00%
Weighted average grant date fair value per share (in dollars per share)	$ 5.00	$ 5.42
ESPP \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected term in years	6 months	6 months
ESPP \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected term in years	2 years	2 years

CONVERTIBLE SENIOR NOTES

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

CONVERTIBLE SENIOR NOTES

2030 Convertible Senior Notes

In June, 2023, we entered into a privately negotiated exchange agreement with a holder of our outstanding 1.50% Convertible Senior Notes due 2028 (the “2028 Notes”), pursuant to which we issued $441.0 million in aggregate principal amount of our 1.375% Convertible Senior Notes due 2030 (the “2030 Notes”) in exchange for $441.0 million principal amount of the 2028 Notes (the “Exchange Transaction”), pursuant to exemptions from registration under the Securities Act of 1933, as amended, and the rules and regulations thereunder. The 2030 Notes were issued on June 30, 2023.

The 2030 Notes are governed by an indenture (the “2030 Indenture”) between the Company and U.S. Bank Trust Company, National Association, as trustee. The 2030 Notes bear interest at a rate of 1.375% per annum. Interest on the 2030 Notes is payable semi-annually in arrears on June 15 and December 15, commencing on December 15, 2023. The 2030 Notes will mature on December 15, 2030, subject to earlier conversion, redemption or repurchase.

The 2030 Notes are convertible at the option of the holder at any time until the second scheduled trading day prior to the maturity date, including in connection with a redemption by the Company. The 2030 Notes are convertible into shares of our common stock based on an initial conversion rate of 46.5116 shares of common stock per $1,000 principal amount of the 2030 Notes (which is equal to an initial conversion price of $21.50 per share of common stock), in each case subject to customary anti-dilution and other adjustments as a result of certain extraordinary transactions. Upon conversion of the 2030 Notes, we may elect to settle such conversion obligation in shares of our common stock, cash or a combination of shares of our common stock and cash.

On or after June 20, 2028, the 2030 Notes will be redeemable by the Company in the event that the closing sale price of our common stock has been at least 150% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide the redemption notice at a redemption price of 100% of the principal amount of such 2030 Notes, plus accrued and unpaid interest up to, but excluding, the redemption date.

Upon the occurrence of a Fundamental Change (as defined in the 2030 Indenture), the holders of the 2030 Notes may require that we repurchase all or part of the principal amount of the 2030 Notes at a purchase price equal to 100% of the principal amount of the notes to be repurchased, plus any accrued and unpaid interest up to, but excluding, the fundamental change repurchase date, and all unpaid interest from the fundamental change repurchase date thereon, but excluding, the maturity date.

The 2030 Indenture includes customary “events of default,” which may result in the acceleration of the maturity of the 2030 Notes under the 2030 Indenture. The 2030 Indenture also includes customary covenants for convertible notes of this type.

To the extent we elect, the sole remedy for an event of default relating to our failure to comply with certain of our reporting obligations shall, for the first 360 calendar days after the occurrence of such an event of default, consist exclusively of the right to receive additional interest on the 2030 Notes at a rate equal to (i) 0.25% per annum of the principal amount of the 2030 Notes outstanding for each day during the first 180 calendar days of the 360-day period after the occurrence of such an event of default during which such event of default is continuing (or, if earlier, the date on which such event of default is cured or waived) and (ii) 0.50% per annum of the principal amount of the 2030 Notes outstanding for each day from, and including, the 181st calendar day to, and including, the 360th calendar day after the occurrence of such an event of default during which such event of default is continuing (or, if earlier, the date on which such event of default is cured or waived as provided for in the 2030 Indenture). On the 361st day after such event of default (if the event of default relating to our failure to comply with its obligations is not cured or waived prior to such 361st day), the 2030 Notes shall be subject to acceleration as provided for in the 2030 Indenture.

The 2030 Notes are accounted for in accordance with the authoritative guidance for convertible debt instruments that may be settled in cash upon conversion. Under ASU 2020-06, the guidance requires that debt with an embedded conversion feature is accounted for in its entirety as a liability and no portion of the proceeds from the issuance of the convertible debt instrument is accounted for as attributable to the conversion feature unless the conversion feature is required to be accounted for separately as an embedded derivative or the conversion feature results in a substantial premium. The conversion feature of the 2030 Notes is not accounted for as an embedded derivative because it is considered to be indexed to our common stock, and the 2030 Notes were not issued at a substantial premium; therefore, the 2030 Notes are accounted for in their entirety as a liability. Because we may elect to settle any conversions entirely in shares, and because settlement in shares is the default settlement method, the liability is classified as non-current.

The requirement to repurchase the 2030 Notes, including unpaid interest to the maturity date in the event of a Fundamental Change, is considered a put option for certain periods requiring bifurcation under ASC 815 – Derivatives and Hedging. However, given the low probability of such a Fundamental Change occurring during the applicable periods, the value of the embedded derivative is immaterial.

The additional interest feature in the event of our failure to comply with certain reporting obligations is also considered an embedded derivative requiring bifurcation under ASC 815. However, due to the nature and terms of the reporting obligations, the value of the embedded derivative is immaterial.

The Exchange Transaction was accounted for as an extinguishment driven by the change in fair value of the embedded conversion option. We recorded a loss on extinguishment of debt of approximately $2.0 million in connection with the Exchange Transaction during the three and six months ended June 30, 2023, which represents the difference between the fair value and the principal amount of the 2030 Notes of the debt at the modification date, plus unamortized debt issuance costs of $1.5 million related to the respective portion of the 2028 Notes.

We incurred issuance costs related to the 2030 Notes of approximately $7.2 million, which were recorded as debt issuance costs and are presented as a reduction to the 2030 Notes on our Consolidated Balance Sheets and are amortized to interest expense using the effective interest method over the term of the 2030 Notes, resulting in an effective interest rate of 1.6%. We also paid accrued but unpaid interest of $2.5 million on the 2028 Notes in connection with the Exchange Transaction on June 30, 2023.

We did not receive any cash proceeds from the Exchange Transaction. In exchange for issuing the 2030 Notes pursuant to the Exchange Transaction, we received and cancelled the exchanged 2028 Notes. Following the closing of the Exchange Transaction, $459.0 million in aggregate principal amount of 2028 Notes remained outstanding with terms unchanged.

The net carrying amount of the liability for the 2030 Notes is included as convertible senior notes, net, non-current in the Condensed Consolidated Balance Sheets as follows (in thousands):


	June 30, 2023		December 31, 2022
Principal amount	$	441,000	$	—
Unamortized debt premium	560		—
Unamortized debt issuance costs	(7,232)		—
Net carrying amount	$	434,328	$	—

For the three and six months ended June 30, 2023 and 2022, interest expense for the 2030 Notes was not material.

As of June 30, 2023, the estimated fair value (Level 2) of the 2030 Notes was $441.6 million. The fair value of the 2030 Notes is estimated using a binomial lattice model that is primarily affected by the trading price of our common stock, market interest rates and volatility.

2028 Convertible Senior Notes

On February 9, 2021, we entered into an investment agreement (the “Investment Agreement”) with SB Northstar LP (the “Purchaser”), a subsidiary of SoftBank Group Corp., relating to the issuance and sale to the Purchaser of $900.0 million in aggregate principal amount of the 2028 Notes. The 2028 Notes were issued on February 16, 2021. As discussed above, in June 2023 we completed an exchange of $441.0 million in aggregate principal amount of our 2028 Notes for $441.0 million aggregate principal amount of the 2030 Notes, leaving approximately $459.0 million in aggregate principal amount of 2028 Notes outstanding

The 2028 Notes are governed by an indenture (the “2028 Indenture”) between the Company and U.S. Bank National Association, as trustee. The 2028 Notes bear interest at a rate of 1.50% per annum. Interest on the 2028 Notes is payable semi-annually in arrears on February 15 and August 15 and commenced on August 15, 2021. The 2028 Notes will mature on February 15, 2028, subject to earlier conversion, redemption or repurchase.

The 2028 Notes are convertible at the option of the holder at any time until the second scheduled trading day prior to the maturity date, including in connection with a redemption by the Company. The 2028 Notes are convertible into shares of our common stock based on an initial conversion rate of 22.9885 shares of common stock per $1,000 principal amount of the 2028 Notes (which is equal to an initial conversion price of $43.50 per share of common stock), in each case subject to customary anti-dilution and other adjustments as a result of certain extraordinary transactions. Upon conversion of the 2028 Notes, we may elect to settle such conversion obligation in shares of our common stock, cash or a combination of shares of our common stock and cash.

On or after February 20, 2026, the 2028 Notes will be redeemable by the Company in the event that the closing sale price of our common stock has been at least 150% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide the redemption notice at a redemption price of 100% of the principal amount of such 2028 Notes, plus accrued and unpaid interest up to, but excluding, the redemption date.

Upon the occurrence of a Fundamental Change (as defined in the 2028 Indenture), the holders of the 2028 Notes may require that we repurchase all or part of the principal amount of the 2028 Notes at a purchase price of par plus unpaid interest up to, but excluding, the maturity date.

The 2028 Indenture includes customary “events of default,” which may result in the acceleration of the maturity of the 2028 Notes under the 2028 Indenture. The 2028 Indenture also includes customary covenants for convertible notes of this type.

To the extent we elect, the sole remedy for an event of default relating to our failure to comply with certain of our reporting obligations shall, for the first 360 calendar days after the occurrence of such an event of default, consist exclusively of the right to receive additional interest on the 2028 Notes at a rate equal to (i) 0.25% per annum of the principal amount of the 2028 Notes outstanding for each day during the first 180 calendar days of the 360-day period after the occurrence of such an event of default during which such event of default is continuing (or, if earlier, the date on which such event of default is cured or waived) and (ii) 0.50% per annum of the principal amount of the 2028 Notes outstanding for each day from, and including, the 181st calendar day to, and including, the 360th calendar day after the occurrence of such an event of default during which such event of default is continuing (or, if earlier, the date on which such event of default is cured or waived as provided for in the 2028 Indenture). On the 361st day after such event of default (if the event of default relating to our failure to comply with its obligations is not cured or waived prior to such 361st day), the 2028 Notes shall be subject to acceleration as provided for in the 2028 Indenture.

The 2028 Notes are accounted for in accordance with the authoritative guidance for convertible debt instruments that may be settled in cash upon conversion. Under ASU 2020-06, the guidance requires that debt with an embedded conversion feature is accounted for in its entirety as a liability and no portion of the proceeds from the issuance of the convertible debt instrument is accounted for as attributable to the conversion feature unless the conversion feature is required to be accounted for separately as an embedded derivative or the conversion feature results in a substantial premium. The conversion feature of the 2028 Notes is not accounted for as an embedded derivative because it is considered to be indexed to our common stock, and the 2028 Notes were not issued at a premium; therefore, the 2028 Notes are accounted for in their entirety as a liability. Because we may elect to settle any conversions entirely in shares, and because settlement in shares is the default settlement method, the liability is classified as non-current.

The requirement to repurchase the 2028 Notes, including unpaid interest to the maturity date in the event of a Fundamental Change, is considered a put option for certain periods requiring bifurcation under ASC 815 – Derivatives and Hedging. However, given the low probability of such a Fundamental Change occurring during the applicable periods, the value of the embedded derivative is immaterial.

We incurred issuance costs related to the 2028 Notes of approximately $4.5 million, which were recorded as debt issuance costs and are presented as a reduction to the 2028 Notes on our Consolidated Balance Sheets and are amortized to interest expense using the effective interest method over the term of the 2028 Notes, resulting in an effective interest rate of 1.6%.

The net carrying amount of the liability for the 2028 Notes is included as convertible senior notes, net, non-current in the Condensed Consolidated Balance Sheets as follows (in thousands):


	June 30, 2023		December 31, 2022
Principal amount	$	459,000	$	900,000
Unamortized debt issuance costs	(1,533)		(3,317)
Net carrying amount	$	457,467	$	896,683

For the three and six months ended June 30, 2023 and 2022, interest expense for the 2028 Notes was as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Contractual interest expense	$	3,319	$	3,375	$	6,694	$	6,750
Amortization of debt issuance costs	155		154		311		307
Total interest expense	$	3,474	$	3,529	$	7,005	$	7,057

As of June 30, 2023, the estimated fair value (Level 2) of the 2028 Notes was $388.0 million. The fair value of the 2028 Notes is estimated using a binomial lattice model that is primarily affected by the trading price of our common stock, market interest rates and volatility.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
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+ Details

FINANCIAL INSTRUMENTS - Summary of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 832,548	$ 777,083
Gross unrealized gains	80	16
Gross unrealized losses	(2,766)	(4,781)
Fair Value	829,862	772,318
Short-term restricted cash	300	300
Long-term restricted cash	2,422	2,922
Cash and cash equivalents
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	209,279	325,144
Gross unrealized gains	17	6
Gross unrealized losses	(9)	(61)
Fair Value	209,287	325,089
Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	94,247	127,626
Gross unrealized gains	0	9
Gross unrealized losses	(123)	(333)
Fair Value	94,124	127,302
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	74,930	49,998
Gross unrealized gains	6	0
Gross unrealized losses	(352)	(507)
Fair Value	74,584	49,491
U.S. government & agency securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	454,092	274,315
Gross unrealized gains	57	1
Gross unrealized losses	(2,282)	(3,880)
Fair Value	451,867	270,436
Investments:
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	623,269	451,939
Gross unrealized gains	63	10
Gross unrealized losses	(2,757)	(4,720)
Fair Value	$ 620,575	$ 447,229

FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2023

Investments, All Other Investments [Abstract]

FINANCIAL INSTRUMENTS

Fair Value of Financial Instruments

Fair value is the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy established under GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are as follows:

•Level 1: quoted prices in active markets for identical assets or liabilities;

•Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

•Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

We consider an active market as one in which transactions for the asset or liability occurs with sufficient frequency and volume to provide pricing information on an ongoing basis. Conversely, we view an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, our non-performance risk, or that of our counterparty, is considered in determining the fair values of liabilities and assets, respectively.

We classify our cash deposits and money market funds within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. We classify our investments as Level 2 instruments based on market pricing and other observable inputs. We did not classify any of our investments within Level 3 of the fair value hierarchy.

Assets and liabilities measured at fair value are classified in their entirety based on the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the entire fair value measurement requires management to make judgments and consider factors specific to the asset or liability.

The carrying amount of our accounts receivable, prepaid expenses, other current assets, accounts payable, accrued expenses and other liabilities, current, approximate fair value due to their short maturities.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table sets forth the fair value of our financial assets and liabilities that were measured on a recurring basis (in thousands):


	June 30, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents	$	93,902	$	115,385	$	—	$	209,287	$	137,636	$	187,453	$	—	$	325,089
Investments:
Commercial paper	—		94,124		—		94,124		—		127,302		—		127,302
Corporate debt securities	—		74,584		—		74,584		—		49,491		—		49,491
U.S. government & agency securities	—		451,867		—		451,867		—		270,436		—		270,436
Total investments	—		620,575		—		620,575		—		447,229		—		447,229

Short-term restricted cash	300		—		—		300		300		—		—		300
Long-term restricted cash	2,422		—		—		2,422		2,922		—		—		2,922
Total assets measured at fair value	$	96,624	$	735,960	$	—	$	832,584	$	140,858	$	634,682	$	—	$	775,540

Liabilities
Contingent consideration	$	—	$	—	$	186,325	$	186,325	$	—	$	—	$	172,094	$	172,094
Total liabilities measured at fair value	$	—	$	—	$	186,325	$	186,325	$	—	$	—	$	172,094	$	172,094

We classify contingent consideration, which was incurred in connection with the acquisition of Omniome, within Level 3 as factors used to develop the estimate of fair value include unobservable inputs that are not supported by market activity and are significant to the fair value.

We estimate the fair value of the contingent consideration liability by discounting the probability-weighted outcomes to present value using an estimate of our borrowing rate and the risk-free rate. The potential outcomes of milestone achievement dates are within the period from September 30, 2023 to June 30, 2024. A decrease in the probability of an earlier scenario within this range would result in a decrease in the fair value of the liability. The discount rates used are the sum of the U.S. risk-free rate and the estimated subordinated credit spread for B- and B credit rating, which ranges from 10.1% to 10.2%. Changes in our estimated subordinated credit spread can result in changes in the fair value of the contingent consideration liability, where a lower credit spread may result in an increased liability valuation.

Changes in the estimated fair value of the contingent consideration liability for the six months ended June 30, 2023 were as follows (in thousands):


	Level 3
Beginning balance as of December 31, 2022	$	172,094
Change in estimated fair value	14,231
Ending balance as of June 30, 2023	$	186,325

Changes to the fair value are recorded as change in fair value of contingent consideration in the Condensed Consolidated Statement of Operations and Comprehensive Loss.

In August 2023, we commenced customer shipments of the Onso short-read sequencing instrument, with shipments of related consumables expected to occur later in August 2023. The milestone payment associated with PacBio’s acquisition of Omniome will be triggered once both the Onso instrument and related consumables have shipped to one customer.

For the six months ended June 30, 2023, there were no transfers between Level 1, Level 2, or Level 3 assets or liabilities reported at fair value on a recurring basis, and our valuation techniques did not change compared to the prior year.

The following tables summarize our cash, cash equivalents and investments (in thousands):


	As of June 30, 2023
	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Fair Value

Cash and cash equivalents	209,279		17		(9)		209,287
Investments:
Commercial paper	94,247		—		(123)		94,124
Corporate debt securities	74,930		6		(352)		74,584
U.S. government & agency securities	454,092		57		(2,282)		451,867
Total investments	623,269		63		(2,757)		620,575
Total cash, cash equivalents and investments	$	832,548	$	80	$	(2,766)	$	829,862

Short-term restricted cash	$	300	$	—	$	—	$	300
Long-term restricted cash	$	2,422	$	—	$	—	$	2,422


	As of December 31, 2022
	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Fair Value

Cash and cash equivalents	325,144		6		(61)		325,089
Investments:
Commercial paper	127,626		9		(333)		127,302
Corporate debt securities	49,998		—		(507)		49,491
U.S. government & agency securities	274,315		1		(3,880)		270,436
Total investments	451,939		10		(4,720)		447,229
Total cash, cash equivalents and investments	$	777,083	$	16	$	(4,781)	$	772,318

Short-term restricted cash	$	300	$	—	$	—	$	300
Long-term restricted cash	$	2,922	$	—	$	—	$	2,922

The following table summarizes the contractual maturities of our cash equivalents and available-for-sale investments, excluding money market funds, as of June 30, 2023 (in thousands):


	Fair Value
Due in one year or less	$	652,574
Due after one year through five years	83,386
Total	$	735,960

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities
Net loss	$ (157,848)	$ (152,893)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	5,584	4,591
Amortization of intangible assets	466	456
Amortization of right-of-use assets	3,330	3,412
Amortization of debt discount and financing costs	324	319
Share-based compensation expense	35,843	41,722
Accretion of discount and amortization of premium on marketable securities, net	(6,113)	1,143
Change in the estimated fair value of contingent consideration	14,231	(6,501)
Loss on extinguishment of debt	2,033	0
Inventory provision	4,295	1,789
Loss on disposition of equipment	45	77
Changes in assets and liabilities
Accounts receivable, net	(5,248)	(2,817)
Inventory	(19,703)	(14,955)
Prepaid expenses and other assets	(6,085)	(340)
Accounts payable	4,262	1,331
Accrued expenses	(5,956)	(11,357)
Deferred revenue	(2,317)	(2,115)
Operating lease liabilities	(4,114)	(3,833)
Other liabilities	539	379
Net cash used in operating activities	(136,432)	(139,592)
Cash flows from investing activities
Purchase of property and equipment	(5,989)	(7,657)
Purchases of investments	(476,879)	(241,086)
Sales of investments	595	0
Maturities of investments	311,129	230,515
Net cash used in investing activities	(171,144)	(18,228)
Cash flows from financing activities
Proceeds from issuance of common stock under equity offerings, net of issuance costs	189,200	0
Proceeds from issuance of common stock from equity plans	9,821	6,440
Payment of debt issuance costs	(6,836)	0
Notes payable principal payoff	(911)	(770)
Net cash provided by financing activities	191,274	5,670
Net decrease in cash, cash equivalents, and restricted cash	(116,302)	(152,150)
Cash, cash equivalents, and restricted cash at beginning of period	328,311	465,817
Cash, cash equivalents, and restricted cash at end of period	212,009	313,667
Cash and cash equivalents at end of period	209,287	310,445
Restricted cash at end of period	2,722	3,222
Cash, cash equivalents, and restricted cash at end of period	$ 212,009	$ 313,667

Subsequent Events (Details) $ / shares in Units, shares in Millions, $ in Millions	Aug. 02, 2023 USD ($) $ / shares shares	Jun. 30, 2023 $ / shares	Jan. 31, 2023 $ / shares	Dec. 31, 2022 $ / shares
Subsequent Event [Line Items]
Common stock, par value (in dollars per share) \| $ / shares		$ 0.001	$ 0.001	$ 0.001
Apton \| Subsequent Event
Subsequent Event [Line Items]
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001
Shares issuable (in shares) \| shares	6.3
Milestone revenue \| $	$ 50.0
Milestone payment \| $	$ 25.0
Maximum equity beneficial ownership ratio	0.199

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Consolidation	Our unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States, or U.S. GAAP, as set forth in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC. The unaudited condensed consolidated financial statements include the accounts of Pacific Biosciences and our wholly owned subsidiaries. Certain information and footnote disclosures typically included in our audited financial statements have been condensed or omitted. The accompanying unaudited condensed consolidated financial statements have been prepared on a consistent basis with the December 31, 2022 audited consolidated financial statements and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state our financial position, results of operations, comprehensive loss, and cash flows for the period, but are not necessarily indicative of the results to be expected for the entire year or any future periods. All intercompany transactions and balances have been eliminated. Certain prior period amounts have been reclassified to conform to current period presentation.
Use of Estimates	The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes to the financial statements. On an ongoing basis, we evaluate our significant estimates including, but not limited to, the valuation of inventory, the determination of stand-alone selling prices for revenue recognition, the fair value of contingent consideration, the valuation of acquired intangible assets, the fair value of certain equity awards, the useful lives assigned to long-lived assets, the computation of provisions for income taxes, the borrowing rate used in calculating the operating lease right-of-use assets and operating lease liabilities, the probability associated with variable payments under partnership development agreements, and the valuations related to our convertible senior notes. While the extent of the potential impact of the current macroeconomic conditions on our business is highly uncertain, we considered information available related to assumptions and estimates used to determine the results reported and asset valuations as of June 30, 2023. Actual results could differ materially from these estimates.
Cash, Cash Equivalents	We consider all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents may be comprised of money market funds, certificates of deposit, commercial paper, corporate bonds and notes, and government agencies’ securities.
Investments	We classify our investments in debt securities as available-for sale and report the investments at fair value in current assets. We evaluate our available-for-sale investments in unrealized loss positions and assess whether the unrealized loss is credit-related. Unrealized gains and losses that are not credit-related are recognized in accumulated other comprehensive loss in stockholders’ equity. Realized gains and losses, expected credit losses, as well as interest income, on available-for-sale securities are also reported in other income (expense), net. The cost used in the determination of gains and losses of securities sold is based on the specific identification method. The cost of marketable securities is adjusted for the amortization of premiums and discounts to expected maturity. Premium and discount amortization is recorded in other income (expense), net. Our investment portfolio at any point in time contains investments in cash deposits, money market funds, commercial paper, corporate debt securities and U.S. government and agency securities with high credit ratings. We have established guidelines regarding diversification and maturities of investments with the objectives of maintaining safety and liquidity, while maximizing yield.
Restricted Cash	Restricted cash includes cash that is not readily available for use in the Company’s operating activities. Restricted cash is primarily comprised of cash pledged under letters of credit.
Recent Accounting Pronouncements	Recently Adopted Accounting Standards In October 2021, the FASB issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU provides specific guidance on how to recognize contract assets and contract liabilities related to revenue contracts with customers acquired in a business combination. This amendment improves comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. We adopted this ASU on January 1, 2023. The adoption of this guidance did not have a material effect on our consolidated financial statements.
Fair Value of Financial Instruments	We consider an active market as one in which transactions for the asset or liability occurs with sufficient frequency and volume to provide pricing information on an ongoing basis. Conversely, we view an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, our non-performance risk, or that of our counterparty, is considered in determining the fair values of liabilities and assets, respectively. We classify our cash deposits and money market funds within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. We classify our investments as Level 2 instruments based on market pricing and other observable inputs. We did not classify any of our investments within Level 3 of the fair value hierarchy. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the entire fair value measurement requires management to make judgments and consider factors specific to the asset or liability. The carrying amount of our accounts receivable, prepaid expenses, other current assets, accounts payable, accrued expenses and other liabilities, current, approximate fair value due to their short maturities. Assets and Liabilities Measured at Fair Value on a Recurring Basis

STOCKHOLDERS’ EQUITY - Narrative (Details) $ / shares in Units, $ in Millions		1 Months Ended		6 Months Ended
	Jan. 31, 2023 USD ($) $ / shares shares	Feb. 28, 2023 shares	Jan. 31, 2023 USD ($) $ / shares	Jun. 30, 2023 $ / shares shares	Jun. 30, 2022 shares	Dec. 31, 2022 $ / shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Public offering (in shares)	17,500,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001		$ 0.001	$ 0.001		$ 0.001
Offering share amount maximum (in dollars per share) \| $ / shares	$ 10.00		$ 10.00
Public offering, option to purchase additional shares, period	30 days
Public offering, option to purchase additional shares (in shares)	2,600,000
Percentage commission of gross proceeds on sale of common stock under at-the-market offering	5.75%
Proceeds from issuance of stock \| $	$ 189.7
Offering expenses \| $			$ 0.5
Dividend yield				0.00%
Time Based Restricted Stock Units PSU
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Amount eligible to vest upon achievement of goal				2
Shelf Offering
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares issued (in shares)	20,100,000
2020 Plan, Inducement Plan, And The Omniome Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock remain available for issuance (in shares)				12,200,000
ESPP
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares issued (in shares)				1,052,908	1,316,923
Additional common stock reserved for issuance (in shares)		4,000,000
Common stock remain available for issuance (in shares)				12,900,000
Dividend yield				0.00%	0.00%

NET LOSS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Loss per Share

The following table presents the calculation of the basic and diluted net loss per share amounts presented in the Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands, except per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net loss	$	(69,833)	$	(71,394)	$	(157,848)	$	(152,893)

Denominator:
Basic
Weighted average shares used in computing basic net loss	250,070		224,499		246,074		223,400
Basic net loss per share	$	(0.28)	$	(0.32)	$	(0.64)	$	(0.68)

Diluted




Weighted average shares used in computing diluted net loss per share	250,070		224,499		246,074		223,400
Diluted net loss per share	$	(0.28)	$	(0.32)	$	(0.64)	$	(0.68)

Antidilutive Shares Excluded from Computation of Diluted Net Loss per Share

The following shares issuable upon conversion of the convertible senior notes and outstanding equity awards were excluded from the computation of diluted net loss per share for the periods presented because the effect of including such shares would have been antidilutive (in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Shares issuable upon conversion of convertible senior notes	31,063	20,690	31,063	20,690




Equity Awards	29,773	25,925	29,773	25,925

STOCKHOLDERS’ EQUITY

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

STOCKHOLDERS’ EQUITY

Underwritten Public Equity Offering

In January 2023, we entered into an underwriting agreement, relating to the public offering of 17.5 million shares of our common stock, $0.001 par value per share, at a price to the public of $10.00 per share. Under the terms of the underwriting agreement, we also granted the underwriters a 30-day option to purchase up to an additional 2.6 million shares of our common stock, which was subsequently exercised in full, and the offering, including the sale of shares of common stock subject to the underwriters' option, closed in January 2023. In total, we sold 20.1 million shares of our common stock. We paid a commission equal to 5.75% of the gross proceeds from the sale of shares of our common stock. The total net proceeds to us from the offering after deducting the underwriting discount were approximately $189.7 million, excluding approximately $0.5 million of offering expenses.

Refer to Note 10 – Stockholders' Equity, in Part II, Item 8 of the Annual Report on Form 10-K for the year ended December 31, 2022 for more information on the Company's underwritten public equity offerings and private placement of common stock.

Equity Plans

At June 30, 2023, the Company had share-based compensation awards outstanding under the 2020 Equity Incentive Plan (the “2020 Plan”), the 2020 Inducement Equity Incentive Plan (the “Inducement Plan”), the 2021 adopted Omniome Equity Incentive Plan of Pacific Biosciences of California, Inc. (the “Omniome Plan”) and the 2010 Employee Stock Purchase Plan, from which we issued equity awards and employee stock.

As of June 30, 2023, we had 12.2 million shares remaining and available for future issuance under the 2020 Plan, Inducement Plan, and the Omniome Plan. Shares remaining and available for future issuance reflect shares that may become eligible to vest upon the achievement of maximum targets for certain equity awards.

Refer to Note 10 – Stockholders' Equity, in Part II, Item 8 of the Annual Report on Form 10-K for the year ended December 31, 2022 for more information on the Company's equity plans.

Stock Options

Time-based Stock Options

The following table summarizes stock option activity for time-based awards (shares in thousands):


	Number of shares	Weighted average exercise price
Outstanding at December 31, 2022	14,618	$	10.60
Granted	232	11.94
Exercised	(707)	4.76
Canceled	(581)	18.99
Outstanding at June 30, 2023	13,562	$	10.57

Performance-based Stock Options

The following table summarizes stock option activity for performance-based awards (shares in thousands):


	Number of shares	Weighted average exercise price
Outstanding at December 31, 2022	258	$	4.71
Granted	—	—
Exercised	(251)	4.71
Canceled	(4)	4.71
Outstanding at June 30, 2023	3	$	4.74

Restricted Stock Units (“RSU”) and Performance Stock Units ("PSU")

We issue RSUs for which the respective shares vest when the requisite service period is achieved. We issue PSUs for which the number of shares issuable in the third year of the performance period based on performance relative to specified revenue targets and continued employment through the vesting period. Maximum achievement of the revenue goal under the PSUs will result in up to 200% of the target number of shares subject to the PSUs to become eligible to vest, while not meeting the minimum achievement of the revenue goal under the PSUs will result in no shares subject to the PSUs becoming eligible to vest. The following table summarizes the time-based RSUs and PSUs activity (shares in thousands):


	Restricted Stock Units (RSU)	Performance Stock Units (PSU)	Weighted average grant date fair value
			RSU		PSU
Outstanding at December 31, 2022	8,535	—	$	15.16	$	—
Granted	6,626	564	9.59		9.43
Vested	(1,831)	—	15.99		—
Forfeited	(687)	—	16.89		—
Outstanding at June 30, 2023	12,643	564	$	12.03	$	9.43

Employee Stock Purchase Plan (“ESPP”)

Shares issued under our ESPP were 1,052,908 and 1,316,923 during the six months ended June 30, 2023 and 2022, respectively. In February 2023, an additional 4.0 million shares were reserved under the ESPP. As of June 30, 2023, 12.9 million shares of our common stock remain available for issuance under our ESPP.

Share-Based Compensation

The following table summarizes share-based compensation expense (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cost of revenue	$	1,177	$	988	$	3,126	$	2,746
Research and development	5,423		7,748		12,128		16,713
Sales, general and administrative	11,291		10,283		20,589		22,263
Total share-based compensation expense	$	17,891	$	19,019	$	35,843	$	41,722

Determining Fair Value

We estimate the fair value of stock options granted using the Black-Scholes valuation method and a single option award approach. When determining the current share prices underlying the stock options for calculating the grant-date fair value, we reference the observable market prices of our stock. This fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. The fair market value of RSUs and PSUs granted is the closing price of our shares on the date of grant and is generally recognized as compensation expense on a straight-line basis over the respective vesting period. For shares purchased under our ESPP, we estimate the grant-date fair value, and the resulting share-based compensation expense, using the Black-Scholes option-pricing model. We estimate forfeitures of stock options, RSUs and shares purchased under our ESPP which is utilized to determine the compensation expense to be recorded over the requisite service period.

•Expected Term - The expected term used in the Black-Scholes valuation method represents the period that the stock options are expected to be outstanding and is determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock options and vesting schedules.

•Expected Volatility - The expected volatility used in the Black-Scholes valuation method is derived from the implied volatility related to our share price over the expected term.

•Expected Dividend - We have never paid dividends on our shares and, accordingly, the dividend yield percentage is zero for all periods.

•Risk-Free Interest Rate - The risk-free interest rate used in the Black-Scholes valuation method is the implied yield currently available on U.S. Treasury constant maturities issued with a term equivalent to the expected terms.

The fair value of employee stock options was estimated using the following assumptions:


	Six Months Ended June 30,
		2023	2022
Expected term in years		4.9	4.6
Expected volatility		78%	70% — 72%
Risk-free interest rate		3.73%	1.76% — 2.77%
Dividend yield		—	—
Weighted average grant date fair value per share		$7.76	$6.05

The fair value of shares to be issued under the ESPP was estimated using the following assumptions:


	Six Months Ended June 30,
		2023	2022
Expected term in years		0.5 — 2.0	0.5 — 2.0
Expected volatility		97%	70%
Risk-free interest rate		4.89% — 5.20%	0.60% — 1.31%
Dividend yield		—	—
Weighted average grant date fair value per share		$5.00	$5.42

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue:
Total revenue	$ 47,573	$ 35,467	$ 86,473	$ 68,640
Cost of Revenue:
Amortization of intangible assets	183	183	366	366
Total cost of revenue	32,027	19,274	61,166	38,292
Gross profit	15,546	16,193	25,307	30,348
Operating Expense:
Research and development	46,173	50,348	95,112	103,285
Sales, general and administrative	40,573	39,252	80,391	79,056
Change in fair value of contingent consideration	1,975	(5,438)	14,231	(6,501)
Total operating expense	88,721	84,162	189,734	175,840
Operating loss	(73,175)	(67,969)	(164,427)	(145,492)
Loss on extinguishment of debt	(2,033)	0	(2,033)	0
Interest expense	(3,554)	(3,681)	(7,184)	(7,378)
Other income (expense), net	8,929	256	15,796	(23)
Loss before expense (benefit) from income taxes	(69,833)	(71,394)	(157,848)	(152,893)
Expense (benefit) from income taxes	0	0	0	0
Net loss	(69,833)	(71,394)	(157,848)	(152,893)
Other comprehensive (loss) income:
Unrealized (loss) gain on investments	(762)	(1,372)	2,079	(4,370)
Comprehensive loss	$ (70,595)	$ (72,766)	$ (155,769)	$ (157,263)
Net loss per share:
Basic (in dollars per share)	$ (0.28)	$ (0.32)	$ (0.64)	$ (0.68)
Diluted (in dollars per share)	$ (0.28)	$ (0.32)	$ (0.64)	$ (0.68)
Weighted average shares outstanding used in calculating net loss per share:
Basic (in shares)	250,070	224,499	246,074	223,400
Diluted (in shares)	250,070	224,499	246,074	223,400
Product revenue
Revenue:
Total revenue	$ 43,655	$ 30,175	$ 78,309	$ 58,419
Cost of Revenue:
Cost of revenue	28,432	15,499	53,596	30,319
Service and other revenue
Revenue:
Total revenue	3,918	5,292	8,164	10,221
Cost of Revenue:
Cost of revenue	$ 3,412	$ 3,592	$ 7,204	$ 7,607

STOCKHOLDERS’ EQUITY - Summary of Time Based Options (Details) - Time-based stock option shares in Thousands	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Number of shares
Outstanding, beginning (in shares) \| shares	14,618
Granted (in shares) \| shares	232
Exercised (in shares) \| shares	(707)
Canceled (in shares) \| shares	(581)
Outstanding, ending (in shares) \| shares	13,562
Weighted average exercise price
Beginning, outstanding (in dollars per share) \| $ / shares	$ 10.60
Granted (in dollars per share) \| $ / shares	11.94
Exercised (in dollars per share) \| $ / shares	4.76
Canceled (in dollars per share) \| $ / shares	18.99
Ending, outstanding (in dollars per share) \| $ / shares	$ 10.57

REVENUE (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Revenue by Geographic Location

A summary of our revenue by geographic location is as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Americas	$	23,960	$	21,722	$	43,031	$	40,804
Europe, Middle East and Africa	10,730		5,735		18,600		11,435
Asia-Pacific	12,883		8,010		24,842		16,401
Total	$	47,573	$	35,467	$	86,473	$	68,640

Summary of Revenue by Category

A summary of our revenue by category is as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Instrument revenue	$	29,923	$	15,619	$	50,623	$	31,169
Consumable revenue	13,732		14,556		27,686		27,250
Product revenue	43,655		30,175		78,309		58,419
Service and other revenue	3,918		5,292		8,164		10,221
Total revenue	$	47,573	$	35,467	$	86,473	$	68,640

NET LOSS PER SHARE - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net loss	$ (69,833)	$ (71,394)	$ (157,848)	$ (152,893)
Basic
Basic (in shares)	250,070	224,499	246,074	223,400
Basic net loss per share (in dollars per share)	$ (0.28)	$ (0.32)	$ (0.64)	$ (0.68)
Diluted
Diluted (in shares)	250,070	224,499	246,074	223,400
Diluted net loss per share (in dollars per share)	$ (0.28)	$ (0.32)	$ (0.64)	$ (0.68)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

CONVERTIBLE SENIOR NOTES (Schedule of Net Carrying Amount) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
2030 Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount	$ 441,000	$ 0
Unamortized debt premium	560	0
Unamortized debt issuance costs	(7,232)	0
Total	434,328	0
2028 Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount	459,000	900,000
Unamortized debt issuance costs	(1,533)	(3,317)
Total	$ 457,467	$ 896,683

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

CONVERTIBLE SENIOR NOTES (Schedule of Interest Expense) (Details) - 2028 Convertible Senior Notes - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Debt Instrument [Line Items]
Contractual interest expense	$ 3,319	$ 3,375	$ 6,694	$ 6,750
Amortization of debt issuance costs	155	154	311	307
Total interest expense	$ 3,474	$ 3,529	$ 7,005	$ 7,057

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

FINANCIAL INSTRUMENTS - Summary of Contractual Maturities of Cash Equivalents and Available-for-Sale Investments (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Investments, All Other Investments [Abstract]
Due in one year or less	$ 652,574
Due after one year through five years	83,386
Total	$ 735,960

FINANCIAL INSTRUMENTS - Narrative (Details) - Measurement Input, Discount Rate	Jun. 30, 2023
Minimum
Financial Instruments [Line Items]
Debt instrument, stated interest rate	0.101
Maximum
Financial Instruments [Line Items]
Debt instrument, stated interest rate	0.102

BALANCE SHEET COMPONENTS - Estimated Future Amortization Expense of Acquisition-Related Intangible Assets with Definite Lives (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Balance Sheet Components [Abstract]
Remainder of 2023	$ 387
2024	745
2025	745
2026	745
2027	746
2028 and thereafter	6,411
Total	$ 9,779	$ 10,245

Condensed Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 209,287	$ 325,089
Investments	620,575	447,229
Accounts receivable, net	24,034	18,786
Inventory, net	67,608	50,381
Prepaid expenses and other current assets	13,748	10,289
Short-term restricted cash	300	300
Total current assets	935,552	852,074
Property and equipment, net	40,317	41,580
Operating lease right-of-use assets, net	36,444	39,763
Long-term restricted cash	2,422	2,922
Intangible assets, net	409,779	410,245
Goodwill	409,974	409,974
Other long-term assets	13,143	10,528
Total assets	1,847,631	1,767,086
Current liabilities
Accounts payable	16,512	12,028
Accrued expenses	27,010	32,596
Deferred revenue, current	24,983	30,498
Operating lease liabilities, current	9,243	8,886
Other liabilities, current	7,336	7,233
Contingent consideration liability, current	186,325	172,094
Total current liabilities	271,409	263,335
Deferred revenue, non-current	4,992	1,794
Operating lease liabilities, non-current	36,599	41,070
Convertible senior notes, net, non-current	891,795	896,683
Other liabilities, non-current	837	1,300
Total liabilities	1,205,632	1,204,182
Commitments and contingencies
Stockholders’ equity
Authorized 50,000 shares; No shares issued or outstanding	0	0
Authorized 1,000,000 shares; issued and outstanding 250,473 and 226,505 shares at June 30, 2023 and December 31, 2022, respectively	250	227
Additional paid-in capital	2,334,623	2,099,782
Accumulated other comprehensive loss	(2,686)	(4,765)
Accumulated deficit	(1,690,188)	(1,532,340)
Total stockholders’ equity	641,999	562,904
Total liabilities and stockholders’ equity	$ 1,847,631	$ 1,767,086

NET LOSS PER SHARE

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

NET LOSS PER SHARE

Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed using the weighted-average number of shares of common stock outstanding and potential shares assuming the dilutive effect of the convertible senior notes, using the if-converted method, and outstanding equity awards using the treasury stock method.


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net loss	$	(69,833)	$	(71,394)	$	(157,848)	$	(152,893)

Denominator:
Basic
Weighted average shares used in computing basic net loss	250,070		224,499		246,074		223,400
Basic net loss per share	$	(0.28)	$	(0.32)	$	(0.64)	$	(0.68)

Diluted




Weighted average shares used in computing diluted net loss per share	250,070		224,499		246,074		223,400
Diluted net loss per share	$	(0.28)	$	(0.32)	$	(0.64)	$	(0.68)


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Shares issuable upon conversion of convertible senior notes	31,063	20,690	31,063	20,690




Equity Awards	29,773	25,925	29,773	25,925

As described in Note 2 – Business Acquisitions in Part II, Item 8 of the Annual Report on Form 10-K for the year ended December 31, 2022, the contingently issuable shares would be due upon the achievement of a milestone.

REVENUE - Summary of Revenue by Category (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 47,573	$ 35,467	$ 86,473	$ 68,640
Instrument revenue
Disaggregation of Revenue [Line Items]
Total revenue	29,923	15,619	50,623	31,169
Consumable revenue
Disaggregation of Revenue [Line Items]
Total revenue	13,732	14,556	27,686	27,250
Product revenue
Disaggregation of Revenue [Line Items]
Total revenue	43,655	30,175	78,309	58,419
Service and other revenue
Disaggregation of Revenue [Line Items]
Total revenue	$ 3,918	$ 5,292	$ 8,164	$ 10,221

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

+ References

+ Details

BALANCE SHEET COMPONENTS (Tables)

6 Months Ended

Jun. 30, 2023

Balance Sheet Components [Abstract]

Components of Inventory

Our inventory, net, consisted of the following components (in thousands):


	June 30, 2023		December 31, 2022
Purchased materials	$	25,225	$	24,139
Work in process	22,598		14,062
Finished goods	19,785		12,180
Inventory, net	$	67,608	$	50,381

Schedule of Definite-lived Intangible Assets from Business Acquisitions

In addition to IPR&D, definite-lived intangible assets included the following (in thousands, except years):


		As of June 30, 2023						As of December 31, 2022
	Estimated Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Developed technology	15	$	11,179	$	(1,415)	$	9,764	$	11,179	$	(1,039)	$	10,140
Customer relationships	2	360		(345)		15		360		(255)		105
Total		$	11,539	$	(1,760)	$	9,779	$	11,539	$	(1,294)	$	10,245

Estimated Future Amortization Expense of Acquisition-Related Intangible Assets With Definite Lives

The estimated future amortization expense of intangible assets with definite lives is as follows (in thousands):


Remainder of 2023	$	387
2024	745
2025	745
2026	745
2027	746
2028 and thereafter	6,411
Total	$	9,779

Changes in Reserve for Product Warranties

Changes in the reserve for product warranties were as follows for the periods indicated (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Balance at beginning of period	$	1,624	$	1,174	$	1,651	$	594
Additions charged to cost of product revenue	2,247		912		2,851		1,865
Repairs and replacements	(1,009)		(477)		(1,640)		(850)
Balance at end of period	$	2,862	$	1,609	$	2,862	$	1,609

Future Principal Payments, Fiscal Year Maturity

The following table presents the future principal payments on the term loans (in thousands):


Remainder of 2023	$	930
2024	490
Total	$	1,420

STOCKHOLDERS’ EQUITY - Schedule of Fair Value of Employee Stock Options (Details) - $ / shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Dividend yield	0.00%
Options to purchase common stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected term in years	4 years 10 months 24 days	4 years 7 months 6 days
Expected volatility	78.00%
Risk-free interest rate	3.73%
Risk-free interest rate, minimum		1.76%
Risk-free interest rate, maximum		2.77%
Dividend yield	0.00%	0.00%
Weighted average grant date fair value per share (in dollars per share)	$ 7.76	$ 6.05
Options to purchase common stock \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility		70.00%
Options to purchase common stock \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility		72.00%

FINANCIAL INSTRUMENTS - Changes in estimated fair value of contingent consideration (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 172,094
Change in estimated fair value	14,231
Ending balance	$ 186,325

STOCKHOLDERS’ EQUITY - Summary of RSUs and PSUs Activity (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Restricted Stock Units (RSU)
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding, beginning (in shares) \| shares	8,535,000
Granted (in shares) \| shares	6,626,000
Vested (in shares) \| shares	(1,831,000)
Forfeited (in shares) \| shares	(687,000)
Outstanding, ending (in shares) \| shares	12,643,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Beginning, outstanding (in dollars per share) \| $ / shares	$ 15.16
Weighted average grant date fair value per share (in dollars per share) \| $ / shares	9.59
Vested (in dollars per share) \| $ / shares	15.99
Forfeited (in dollars per share) \| $ / shares	16.89
Ending, outstanding (in dollars per share) \| $ / shares	$ 12.03
Performance Stock Units (PSU)
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding, beginning (in shares) \| shares	0
Granted (in shares) \| shares	564,000
Vested (in shares) \| shares	0
Forfeited (in shares) \| shares	0
Outstanding, ending (in shares) \| shares	564,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Beginning, outstanding (in dollars per share) \| $ / shares	$ 0
Weighted average grant date fair value per share (in dollars per share) \| $ / shares	9.43
Vested (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	0
Ending, outstanding (in dollars per share) \| $ / shares	$ 9.43

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTSOn August 2, 2023, we entered into an agreement and plan of reorganization (the “Merger Agreement”), pursuant to which we acquired Apton Biosystems, Inc., a privately held genomics company (“Apton”). The transaction closed on August 2, 2023.Pursuant to the Merger Agreement, upon the closing of the acquisition, we will, among other things, issue to holders of Apton’s outstanding equity interests (“Apton Securityholders”) approximately 6.3 million shares of the Company’s common stock, par value $0.001 per share (“Common Stock”). Additionally, subject to the terms and conditions of the Merger Agreement and the achievement of $50 million in revenue associated with a high throughput sequencer using Apton's technology, Apton Securityholders will also be entitled to receive $25.0 million, which we may elect to pay in cash, shares of Common Stock or a combination of cash and shares of Common Stock. At this time, the number of shares, if any, to be issued in connection with the achievement of the specified milestone is not known, and will be calculated based on the daily volume-weighted average price of the Common Stock for the twenty trading days ending on and including the fifth trading day immediately prior to the occurrence of the specified milestone. Under the terms of the Merger Agreement, we may pay cash in lieu of Common Stock to ensure that the issuance of Common Stock as contemplated by the Merger Agreement does not exceed 19.9% of the shares of Common Stock then outstanding.

STOCKHOLDERS’ EQUITY - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 17,891	$ 19,019	$ 35,843	$ 41,722
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	1,177	988	3,126	2,746
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	5,423	7,748	12,128	16,713
Sales, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 11,291	$ 10,283	$ 20,589	$ 22,263

BALANCE SHEET COMPONENTS - Future Principal Payments (Details) - Term Loans $ in Thousands	Jun. 30, 2023 USD ($)
Long-Term Debt, Fiscal Year Maturity [Abstract]
Remainder of 2023	$ 930
2024	490
Total	$ 1,420

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

BALANCE SHEET COMPONENTS

6 Months Ended

Jun. 30, 2023

Balance Sheet Components [Abstract]

BALANCE SHEET COMPONENTS

Inventory, net

Our inventory, net, consisted of the following components (in thousands):


	June 30, 2023		December 31, 2022
Purchased materials	$	25,225	$	24,139
Work in process	22,598		14,062
Finished goods	19,785		12,180
Inventory, net	$	67,608	$	50,381

Intangible Assets and Goodwill

Intangible assets include acquired in-process research and development ("IPR&D") of $400 million as a result of the Omniome acquisition in September 2021. The IPR&D will remain on our Consolidated Balance Sheet as an indefinite-lived intangible asset until the completion or abandonment of the associated research and development activities. During the development period following the acquisition, IPR&D will not be amortized, but instead will be tested for impairment annually and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. Upon completion of the development, we will begin to amortize the asset over the life of the product or record an impairment charge if the asset is determined to be impaired.

In addition to IPR&D, definite-lived intangible assets included the following (in thousands, except years):


		As of June 30, 2023						As of December 31, 2022
	Estimated Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Developed technology	15	$	11,179	$	(1,415)	$	9,764	$	11,179	$	(1,039)	$	10,140
Customer relationships	2	360		(345)		15		360		(255)		105
Total		$	11,539	$	(1,760)	$	9,779	$	11,539	$	(1,294)	$	10,245

The estimated future amortization expense of intangible assets with definite lives is as follows (in thousands):


Remainder of 2023	$	387
2024	745
2025	745
2026	745
2027	746
2028 and thereafter	6,411
Total	$	9,779

We review definite-lived intangible assets for impairment when indication of potential impairment exists, such as a significant reduction in cash flows associated with the assets.

Goodwill is reviewed for impairment at least annually during the second quarter, or more frequently if an event occurs indicating the potential for impairment. We performed our annual assessment for goodwill impairment in the second quarter of 2023, noting no impairment.

Deferred Revenue

As of June 30, 2023, we had a total of $30.0 million of deferred revenue, $25.0 million of which was recorded as deferred revenue, current, and primarily relates to future performance obligations under the Amended and Restated Agreement with Invitae Corporation ("Invitae") and deferred service contract revenues. The deferred revenue, non-current balance of $5.0 million primarily relates to future performance obligations under the Amended and Restated Agreement with Invitae and deferred service contract revenues and is scheduled to be recognized in the next 6 years. The deferred revenue, non-current balance includes $3.0 million that was reclassified from deferred revenue, current to deferred revenue, non-current following receipt of a non-cancellable order from Invitae during the three months ended June 30, 2023 for partial utilization of the available credits, which is expected to be recognized in revenue after 12 months from June 30, 2023. Revenue recorded in the three and six months ended June 30, 2023 includes $4.5 million and $8.0 million, respectively, that was included in deferred revenue as of December 31, 2022, of which $2.1 million was product revenue recognized from the partial utilization of available credits by Invitae during the three and six months ended June 30, 2023. Refer to Note 3 – Invitae Collaboration, in Part II, Item 8 of the Annual Report on Form 10-K for the year ended December 31, 2022 for more information.

Product Warranties

We generally provide a one-year warranty on instruments. In addition, we provide a limited warranty on consumables. At the time revenue is recognized, an accrual is established for estimated warranty costs based on historical experience as well as anticipated product performance. We periodically review the warranty reserve for adequacy and adjust the warranty accrual, if necessary, based on actual experience and estimated costs to be incurred. Warranty expense is recorded as a component of cost of product revenue. There were no material changes in estimates for the periods presented below.

Changes in the reserve for product warranties were as follows for the periods indicated (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Balance at beginning of period	$	1,624	$	1,174	$	1,651	$	594
Additions charged to cost of product revenue	2,247		912		2,851		1,865
Repairs and replacements	(1,009)		(477)		(1,640)		(850)
Balance at end of period	$	2,862	$	1,609	$	2,862	$	1,609

Term loans

In connection with the acquisition of Omniome, we acquired $1.3 million in short-term debt and $3.0 million in long-term debt relating to a term loan facility that Omniome obtained in April 2020. Borrowings on the term loan facility were used to fund Omniome’s purchases of equipment, which serves as collateral. Each term loan has a term of 43 months and bears a fixed interest rate of approximately 17% annually. The fee for the elective option to prepay all, but not less than all, of the borrowed amounts at any time after the 24th month and before the 43rd month after the commencement date, is 4% of the outstanding loan balance. Payments are made in equal monthly installments including principal and interest.

As of June 30, 2023, the carrying value of term loans outstanding was $1.4 million, recorded as part of other liabilities, current on the Condensed Consolidated Balance Sheet. The interest expense was $0.1 million and $0.2 million for the three and six months ended June 30, 2023, which was included as part of interest expense in the Condensed Consolidated Statement of Operations and Comprehensive Loss.

The following table presents the future principal payments on the term loans (in thousands):


Remainder of 2023	$	930
2024	490
Total	$	1,420

CONVERTIBLE SENIOR NOTES (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Net Carrying Amount

The net carrying amount of the liability for the 2030 Notes is included as convertible senior notes, net, non-current in the Condensed Consolidated Balance Sheets as follows (in thousands):


	June 30, 2023		December 31, 2022
Principal amount	$	441,000	$	—
Unamortized debt premium	560		—
Unamortized debt issuance costs	(7,232)		—
Net carrying amount	$	434,328	$	—

The net carrying amount of the liability for the 2028 Notes is included as convertible senior notes, net, non-current in the Condensed Consolidated Balance Sheets as follows (in thousands):


	June 30, 2023		December 31, 2022
Principal amount	$	459,000	$	900,000
Unamortized debt issuance costs	(1,533)		(3,317)
Net carrying amount	$	457,467	$	896,683

Schedule of Interest Expense

For the three and six months ended June 30, 2023 and 2022, interest expense for the 2028 Notes was as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Contractual interest expense	$	3,319	$	3,375	$	6,694	$	6,750
Amortization of debt issuance costs	155		154		311		307
Total interest expense	$	3,474	$	3,529	$	7,005	$	7,057

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-7

+ Details

BALANCE SHEET COMPONENTS - Changes in Reserve for Product Warranties (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Balance at beginning of period	$ 1,624	$ 1,174	$ 1,651	$ 594
Additions charged to cost of product revenue	2,247	912	2,851	1,865
Repairs and replacements	(1,009)	(477)	(1,640)	(850)
Balance at end of period	$ 2,862	$ 1,609	$ 2,862	$ 1,609

FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2023

Investments, All Other Investments [Abstract]

Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table sets forth the fair value of our financial assets and liabilities that were measured on a recurring basis (in thousands):


	June 30, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents	$	93,902	$	115,385	$	—	$	209,287	$	137,636	$	187,453	$	—	$	325,089
Investments:
Commercial paper	—		94,124		—		94,124		—		127,302		—		127,302
Corporate debt securities	—		74,584		—		74,584		—		49,491		—		49,491
U.S. government & agency securities	—		451,867		—		451,867		—		270,436		—		270,436
Total investments	—		620,575		—		620,575		—		447,229		—		447,229

Short-term restricted cash	300		—		—		300		300		—		—		300
Long-term restricted cash	2,422		—		—		2,422		2,922		—		—		2,922
Total assets measured at fair value	$	96,624	$	735,960	$	—	$	832,584	$	140,858	$	634,682	$	—	$	775,540

Liabilities
Contingent consideration	$	—	$	—	$	186,325	$	186,325	$	—	$	—	$	172,094	$	172,094
Total liabilities measured at fair value	$	—	$	—	$	186,325	$	186,325	$	—	$	—	$	172,094	$	172,094

Changes in the Estimated Fair Value of Contingent Consideration Liability

Changes in the estimated fair value of the contingent consideration liability for the six months ended June 30, 2023 were as follows (in thousands):


	Level 3
Beginning balance as of December 31, 2022	$	172,094
Change in estimated fair value	14,231
Ending balance as of June 30, 2023	$	186,325

Summary of Cash, Cash Equivalents and Investments

The following tables summarize our cash, cash equivalents and investments (in thousands):


	As of June 30, 2023
	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Fair Value

Cash and cash equivalents	209,279		17		(9)		209,287
Investments:
Commercial paper	94,247		—		(123)		94,124
Corporate debt securities	74,930		6		(352)		74,584
U.S. government & agency securities	454,092		57		(2,282)		451,867
Total investments	623,269		63		(2,757)		620,575
Total cash, cash equivalents and investments	$	832,548	$	80	$	(2,766)	$	829,862

Short-term restricted cash	$	300	$	—	$	—	$	300
Long-term restricted cash	$	2,422	$	—	$	—	$	2,422


	As of December 31, 2022
	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Fair Value

Cash and cash equivalents	325,144		6		(61)		325,089
Investments:
Commercial paper	127,626		9		(333)		127,302
Corporate debt securities	49,998		—		(507)		49,491
U.S. government & agency securities	274,315		1		(3,880)		270,436
Total investments	451,939		10		(4,720)		447,229
Total cash, cash equivalents and investments	$	777,083	$	16	$	(4,781)	$	772,318

Short-term restricted cash	$	300	$	—	$	—	$	300
Long-term restricted cash	$	2,922	$	—	$	—	$	2,922

The following table summarizes the contractual maturities of our cash equivalents and available-for-sale investments, excluding money market funds, as of June 30, 2023 (in thousands):


	Fair Value
Due in one year or less	$	652,574
Due after one year through five years	83,386
Total	$	735,960

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

FINANCIAL INSTRUMENTS - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 209,287	$ 325,089
Short-term restricted cash	300	300
Long-term restricted cash	2,422	2,922
Total assets measured at fair value	832,584	775,540
Liabilities
Contingent consideration	186,325	172,094
Total liabilities measured at fair value	186,325	172,094
Investments:
Assets
Investments:	620,575	447,229
Commercial paper
Assets
Investments:	94,124	127,302
Corporate debt securities
Assets
Investments:	74,584	49,491
U.S. government & agency securities
Assets
Investments:	451,867	270,436
Level 1
Assets
Cash and cash equivalents	93,902	137,636
Short-term restricted cash	300	300
Long-term restricted cash	2,422	2,922
Total assets measured at fair value	96,624	140,858
Liabilities
Contingent consideration	0	0
Total liabilities measured at fair value	0	0
Level 1 \| Investments:
Assets
Investments:	0	0
Level 1 \| Commercial paper
Assets
Investments:	0	0
Level 1 \| Corporate debt securities
Assets
Investments:	0	0
Level 1 \| U.S. government & agency securities
Assets
Investments:	0	0
Level 2
Assets
Cash and cash equivalents	115,385	187,453
Short-term restricted cash	0	0
Long-term restricted cash	0	0
Total assets measured at fair value	735,960	634,682
Liabilities
Contingent consideration	0	0
Total liabilities measured at fair value	0	0
Level 2 \| Investments:
Assets
Investments:	620,575	447,229
Level 2 \| Commercial paper
Assets
Investments:	94,124	127,302
Level 2 \| Corporate debt securities
Assets
Investments:	74,584	49,491
Level 2 \| U.S. government & agency securities
Assets
Investments:	451,867	270,436
Level 3
Assets
Cash and cash equivalents	0	0
Short-term restricted cash	0	0
Long-term restricted cash	0	0
Total assets measured at fair value	0	0
Liabilities
Contingent consideration	186,325	172,094
Total liabilities measured at fair value	186,325	172,094
Level 3 \| Investments:
Assets
Investments:	0	0
Level 3 \| Commercial paper
Assets
Investments:	0	0
Level 3 \| Corporate debt securities
Assets
Investments:	0	0
Level 3 \| U.S. government & agency securities
Assets
Investments:	$ 0	$ 0

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss) Income	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2021		220,978
Beginning balance at Dec. 31, 2021	$ 790,987	$ 221	$ 2,009,945	$ (1,087)	$ (1,218,092)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(152,893)				(152,893)
Other comprehensive income (loss)	(4,370)			(4,370)
Issuance of common stock in conjunction with equity plans (in shares)		3,778
Issuance of common stock in conjunction with equity plans	6,440	$ 4	6,436
Share-based compensation expense	41,722		41,722
Ending balance (in shares) at Jun. 30, 2022		224,756
Ending balance at Jun. 30, 2022	681,886	$ 225	2,058,103	(5,457)	(1,370,985)
Beginning balance (in shares) at Mar. 31, 2022		224,329
Beginning balance at Mar. 31, 2022	734,578	$ 224	2,038,030	(4,085)	(1,299,591)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(71,394)				(71,394)
Other comprehensive income (loss)	(1,372)			(1,372)
Issuance of common stock in conjunction with equity plans (in shares)		427
Issuance of common stock in conjunction with equity plans	848	$ 1	847
Share-based compensation expense	19,226		19,226
Ending balance (in shares) at Jun. 30, 2022		224,756
Ending balance at Jun. 30, 2022	$ 681,886	$ 225	2,058,103	(5,457)	(1,370,985)
Beginning balance (in shares) at Dec. 31, 2022	226,505	226,505
Beginning balance at Dec. 31, 2022	$ 562,904	$ 227	2,099,782	(4,765)	(1,532,340)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(157,848)				(157,848)
Other comprehensive income (loss)	2,079			2,079
Issuance of common stock from Underwritten Public Equity Offering, net of issuance costs (in shares)		20,125
Issuance of common stock from Underwritten Public Equity Offering, net of issuance costs	189,200	$ 20	189,180
Issuance of common stock in conjunction with equity plans (in shares)		3,843
Issuance of common stock in conjunction with equity plans	9,821	$ 3	9,818
Share-based compensation expense	$ 35,843		35,843
Ending balance (in shares) at Jun. 30, 2023	250,473	250,473
Ending balance at Jun. 30, 2023	$ 641,999	$ 250	2,334,623	(2,686)	(1,690,188)
Beginning balance (in shares) at Mar. 31, 2023		249,803
Beginning balance at Mar. 31, 2023	692,117	$ 250	2,314,146	(1,924)	(1,620,355)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(69,833)				(69,833)
Other comprehensive income (loss)	(762)			(762)
Issuance of common stock in conjunction with equity plans (in shares)		670
Issuance of common stock in conjunction with equity plans	2,586		2,586
Share-based compensation expense	$ 17,891		17,891
Ending balance (in shares) at Jun. 30, 2023	250,473	250,473
Ending balance at Jun. 30, 2023	$ 641,999	$ 250	$ 2,334,623	$ (2,686)	$ (1,690,188)

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Customer Concentration Risk	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Dec. 31, 2022
Sales Revenue, Net \| Customer One
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	10.00%
Sales Revenue, Net \| Customer Two
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage		11.00%
Accounts Receivable \| Customer One
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage				10.00%
Accounts Receivable \| Domestic Customers
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage			45.00%	57.00%

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2023	Jul. 31, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-34899
Entity Registrant Name	Pacific Biosciences of California, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	16-1590339
Entity Address, Address Line One	1305 O’Brien Drive
Entity Address, City or Town	Menlo Park
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94025
City Area Code	650
Local Phone Number	521-8000
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	PACB
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		250,558,293
Entity Central Index Key	0001299130
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in share)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	250,473,000	226,505,000
Common stock, shares outstanding (in shares)	250,473,000	226,505,000

BALANCE SHEET COMPONENTS - Definite-lived Intangible Assets from Business Acquisitions (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 11,539	$ 11,539
Accumulated Amortization	(1,760)	(1,294)
Total	$ 9,779	10,245
Developed Technology
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (in years)	15 years
Gross Carrying Amount	$ 11,179	11,179
Accumulated Amortization	(1,415)	(1,039)
Total	$ 9,764	10,140
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (in years)	2 years
Gross Carrying Amount	$ 360	360
Accumulated Amortization	(345)	(255)
Total	$ 15	$ 105

NET LOSS PER SHARE - Antidilutive Shares Excluded from Computation of Diluted Earnings per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Shares issuable upon conversion of convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of earnings per share (in shares)	31,063	20,690	31,063	20,690
Equity Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of earnings per share (in shares)	29,773	25,925	29,773	25,925

Insider Trading Arrangements	3 Months Ended	6 Months Ended
Insider Trading Arrangements	Jun. 30, 2023 shares	Jun. 30, 2023 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Christian Henry [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On May 18, 2023, Christian Henry, our President and Chief Executive Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 139,858 shares of our common stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until August 20, 2024, or earlier if all transactions under the trading arrangement are completed.
Name	Christian Henry
Title	President and Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	May 18, 2023
Arrangement Duration	460 days
Aggregate Available	139,858	139,858
Susan Kim [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On May 19, 2023, Susan Kim, our Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 90,155 shares of our common stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until September 30, 2024, or earlier if all transactions under the trading arrangement are completed.
Name	Susan Kim
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	May 19, 2023
Arrangement Duration	500 days
Aggregate Available	90,155	90,155