0001299130-24-000111 | 10-Q | XBRL Viewer | Pacific Biosciences OF California INC

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Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
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)	272,280,000	267,744,000
Common stock, shares outstanding (in shares)	272,280,000	267,744,000

NET LOSS PER SHARE

3 Months Ended

Mar. 31, 2024

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.

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:


	Three Months Ended March 31,
(in thousands, except per share amounts)	2024		2023
Numerator:
Net loss	$	(78,178)	$	(88,015)

Denominator:
Basic
Weighted average shares used in computing basic net loss per share	269,578		242,032
Basic net loss per share	$	(0.29)	$	(0.36)

Diluted




Weighted average shares used in computing diluted net loss per share	269,578		242,032
Diluted net loss per share	$	(0.29)	$	(0.36)

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:


	Three Months Ended March 31,
(in thousands)	2024	2023
Shares issuable upon conversion of convertible senior notes	31,063	20,690




Equity Awards	36,924	30,366

See Note 2. Business Acquisitions for detailed information on contingently issuable shares due upon achievement of a milestone. See Note 7 . Stockholders’ Equity for detailed information on equity awards.

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2024
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, 2023 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 those relating to the valuation of inventory, fair value of contingent consideration, valuation of acquired intangible assets, useful lives assigned to long-lived assets, asset impairment assessments, computation of provisions for income taxes, and valuations related to our convertible senior notes. While the extent of the potential impact of 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 March 31, 2024. 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. We have the ability to hold, and do not intend to sell investments in unrealized loss positions before the recovery of their amortized cost bases. 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	Accounting Pronouncements Pending Adoption In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires entities to expand its existing income tax disclosures, specifically related to the rate reconciliation and income taxes paid. This authoritative guidance will be effective for us in fiscal year 2025, with early adoption permitted. The Company is currently evaluating the impact of the ASU but does not expect any material impact upon adoption.
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

REVENUE - Summary of Revenue by Category (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 38,810	$ 38,900
Instrument revenue
Disaggregation of Revenue [Line Items]
Total revenue	19,025	20,700
Consumable revenue
Disaggregation of Revenue [Line Items]
Total revenue	15,984	13,954
Product revenue
Disaggregation of Revenue [Line Items]
Total revenue	35,009	34,654
Service and other revenue
Disaggregation of Revenue [Line Items]
Total revenue	$ 3,801	$ 4,246

- 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
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+ Details

BUSINESS ACQUISITIONS (Details) - USD ($) $ in Thousands		12 Months Ended
BUSINESS ACQUISITIONS (Details) - USD ($) $ in Thousands	Aug. 02, 2023	Dec. 31, 2023	Mar. 31, 2024
Business Acquisition [Line Items]
Contingent consideration		$ 19,550	$ 19,480
Apton
Business Acquisition [Line Items]
Stock issued for payment	$ 76,600
Cash payments	200
Contingent consideration	18,500
Stock-based compensation expense excluded from consideration transferred	$ 1,300
Issuance of common stock in acquisition (in shares)	6,121,571	6,300,000
Milestone revenue	$ 50,000
Anniversary	5 years
Average trading period	20 days
Merger-related expenses		$ 9,000
Merger-related expenses		2,800
Issuance of common stock in connection with liquidity event bonus plan		2,100
Increase in goodwill		$ 52,300
In-process research and development	$ 55,000
Apton \| Maximum
Business Acquisition [Line Items]
Percentage of outstanding shares of common to be issued in merger	19.90%
Apton \| Common Stock
Business Acquisition [Line Items]
Issuance of common stock in connection with liquidity event bonus plan (in shares)		168,621
Apton \| Achievement of milestone
Business Acquisition [Line Items]
Contingent consideration	$ 25,000

FINANCIAL INSTRUMENTS - Summary of Contractual Maturities of Cash Equivalents and Available-for-Sale Investments (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Investments, All Other Investments [Abstract]
Due in one year or less	$ 380,422
Due after one year through five years	109,840
Total	$ 490,262

FINANCIAL INSTRUMENTS - Changes in Estimated Fair Value of Contingent Consideration (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 19,550
Change in estimated fair value	(70)
Ending balance	$ 19,480

BALANCE SHEET COMPONENTS - Future Principal Payments (Details) - Term Loans $ in Thousands	Mar. 31, 2024 USD ($)
Long-Term Debt, Fiscal Year Maturity [Abstract]
Remainder of 2024	$ 152
Total	$ 152

- Definition

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

+ References + Details

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue:
Total revenue	$ 38,810	$ 38,900
Cost of Revenue:
Amortization of acquired intangible assets	1,343	183
Total cost of revenue	27,528	29,139
Gross profit	11,282	9,761
Operating Expense:
Research and development	43,455	48,939
Sales, general and administrative	43,753	39,818
Amortization of acquired intangible assets	5,506	0
Change in fair value of contingent consideration	(70)	12,256
Total operating expense	92,644	101,013
Operating loss	(81,362)	(91,252)
Interest expense	(3,575)	(3,630)
Other income, net	6,759	6,867
Loss before benefit from income taxes	(78,178)	(88,015)
Benefit from income taxes	0	0
Net loss	(78,178)	(88,015)
Other comprehensive (loss) income:
Unrealized (loss) gain on investments	(525)	2,841
Comprehensive loss	$ (78,703)	$ (85,174)
Net loss per share:
Basic (in dollars per share)	$ (0.29)	$ (0.36)
Diluted (in dollars per share)	$ (0.29)	$ (0.36)
Weighted average shares outstanding used in calculating net loss per share:
Basic (in shares)	269,578	242,032
Diluted (in shares)	269,578	242,032
Product revenue
Revenue:
Total revenue	$ 35,009	$ 34,654
Cost of Revenue:
Cost of revenue	22,447	25,164
Service and other revenue
Revenue:
Total revenue	3,801	4,246
Cost of Revenue:
Cost of revenue	$ 3,738	$ 3,792

CONVERTIBLE SENIOR NOTES (Narrative) (Details) $ / shares in Units, $ in Thousands			12 Months Ended
	Jun. 30, 2023 USD ($) $ / shares	Feb. 16, 2021 USD ($) $ / shares	Dec. 31, 2023 USD ($)	Mar. 31, 2024 USD ($)
2028 Convertible Senior Notes
Debt Instrument [Line Items]
Debt issuance costs	$ 1,500
Aggregate outstanding balance			$ 457,626	$ 457,708
Principal amount			459,000	$ 459,000
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
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%
Aggregate outstanding balance	459,000
Fair value of convertible debt				$ 381,700
Principal amount	459,000
2028 Convertible Senior Notes \| Convertible Debt \| Minimum
Debt Instrument [Line Items]
Debt instrument, debt default, calendar days		181 days
2028 Convertible Senior Notes \| Convertible Debt \| Maximum
Debt Instrument [Line Items]
Debt instrument, debt default, calendar days		360 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
2030 Convertible Senior Notes
Debt Instrument [Line Items]
Debt issuance costs	$ 7,300
Aggregate outstanding balance			434,617	434,837
Principal amount			441,000	$ 441,000
2030 Convertible Senior Notes \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, stated interest rate	1.375%
Principal amount of notes	$ 441,000
Debt instrument, convertible, conversion ratio	0.046512
Conversion price per share (in dollars per share) \| $ / shares	$ 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%
Fair value of convertible debt				$ 343,600
2030 Convertible Senior Notes \| Convertible Debt \| Minimum
Debt Instrument [Line Items]
Debt instrument, debt default, calendar days	181 days
2030 Convertible Senior Notes \| Convertible Debt \| Maximum
Debt Instrument [Line Items]
Debt instrument, debt default, calendar days	360 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
Exchange Transaction
Debt Instrument [Line Items]
Loss on extinguishment of debt			2,000
Exchange Transaction \| Convertible Debt
Debt Instrument [Line Items]
Principal amount of notes	$ 441,000
Paid accrued but unpaid interest			$ 2,500

NET LOSS PER SHARE - Antidilutive Shares Excluded from Computation of Diluted Earnings per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
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
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)	36,924	30,366

REVENUE

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

REVENUE

A summary of our revenue by geographic location is as follows:


	Three Months Ended March 31,
(in thousands)	2024		2023
Americas	$	17,678	$	19,071
Europe, Middle East and Africa	8,356		7,870
Asia-Pacific	12,776		11,959
Total	$	38,810	$	38,900

A summary of our revenue by category is as follows:


	Three Months Ended March 31,
(in thousands)	2024		2023
Instrument revenue	$	19,025	$	20,700
Consumable revenue	15,984		13,954
Product revenue	35,009		34,654
Service and other revenue	3,801		4,246
Total revenue	$	38,810	$	38,900

- 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

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+ Details

BALANCE SHEET COMPONENTS - Definite-lived Intangible Assets from Business Acquisitions (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 411,539	$ 411,539
Accumulated Amortization	(16,408)	(9,555)
Total	$ 395,131	401,984
Developed Technology
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (in years)	15 years
Gross Carrying Amount	$ 411,179	411,179
Accumulated Amortization	(16,048)	(9,195)
Total	$ 395,131	401,984
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (in years)	2 years
Gross Carrying Amount	$ 360	360
Accumulated Amortization	(360)	(360)
Total	$ 0	$ 0

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES	Mar. 31, 2024
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 HiFi long-read sequencing technology and our Sequencing by Binding (SBBTM) short-read sequencing technology. Our products address solutions across a broad set of applications including human genetics, plant and animal sciences, infectious disease and microbiology, oncology, and other emerging applications. Our focus is on creating some of the world's most advanced sequencing systems to provide our customers with the most complete and accurate view of genomes, transcriptomes, and epigenomes. 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, 2023 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, 2023. 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 those relating to the valuation of inventory, fair value of contingent consideration, valuation of acquired intangible assets, useful lives assigned to long-lived assets, asset impairment assessments, computation of provisions for income taxes, and valuations related to our convertible senior notes. While the extent of the potential impact of 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 March 31, 2024. 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. We have the ability to hold, and do not intend to sell investments in unrealized loss positions before the recovery of their amortized cost bases. 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 March 31, 2024, no customer exceeded 10% of total revenue during the period. For the three months ended March 31, 2023, no customer exceeded 10% of total revenue during the period. As of March 31, 2024, 42% of our accounts receivable were from domestic customers, compared to 49% as of December 31, 2023. As of March 31, 2024, no customer represented 10% or greater of our net accounts receivable, while one customer represented approximately 10% of our net accounts receivable as of December 31, 2023. Recent Accounting Pronouncements Accounting Pronouncements Pending Adoption In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires entities to expand its existing income tax disclosures, specifically related to the rate reconciliation and income taxes paid. This authoritative guidance will be effective for us in fiscal year 2025, with early adoption permitted. The Company is currently evaluating the impact of the ASU but does not expect any material impact upon adoption. 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, 2023.

STOCKHOLDERS’ EQUITY - Summary of RSUs and PSUs Activity (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2024 $ / 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	11,308
Granted (in shares) \| shares	12,194
Vested (in shares) \| shares	(2,827)
Forfeited (in shares) \| shares	(587)
Outstanding, ending (in shares) \| shares	20,088
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	$ 12.06
Weighted average grant date fair value per share (in dollars per share) \| $ / shares	5.15
Vested (in dollars per share) \| $ / shares	12.96
Forfeited (in dollars per share) \| $ / shares	9.92
Ending, outstanding (in dollars per share) \| $ / shares	$ 7.80
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	541
Granted (in shares) \| shares	0
Vested (in shares) \| shares	0
Forfeited (in shares) \| shares	0
Outstanding, ending (in shares) \| shares	541
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	$ 9.43
Weighted average grant date fair value per share (in dollars per share) \| $ / shares	0
Vested (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	0
Ending, outstanding (in dollars per share) \| $ / shares	$ 9.43

BALANCE SHEET COMPONENTS (Tables)

3 Months Ended

Mar. 31, 2024

Balance Sheet Components [Abstract]

Components of Inventory

Our inventory, net, consisted of the following components:


(in thousands)	March 31, 2024		December 31, 2023
Purchased materials	$	24,632	$	20,168
Work in process	26,298		23,436
Finished goods	16,413		13,072
Inventory, net	$	67,343	$	56,676

Schedule of Definite-lived Intangible Assets from Business Acquisitions

In addition to IPR&D, definite-lived intangible assets included the following:


		As of March 31, 2024						As of December 31, 2023
(in thousands, except years)	Estimated Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Developed technology	15	$	411,179	$	(16,048)	$	395,131	$	411,179	$	(9,195)	$	401,984
Customer relationships	2	360		(360)		—		360		(360)		—
Total		$	411,539	$	(16,408)	$	395,131	$	411,539	$	(9,555)	$	401,984

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 2024	$	20,559
2025	27,412
2026	27,412
2027	27,412
2028	27,412
2029 and thereafter	264,924
Total	$	395,131

Changes in Reserve for Product Warranties

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


	Three Months Ended March 31,
(in thousands)	2024		2023
Balance at beginning of period	$	4,681	$	1,651
Additions charged to cost of product revenue	1,600		604
Repairs and replacements	(2,161)		(631)
Balance at end of period	$	4,120	$	1,624

Future Principal Payments, Fiscal Year Maturity

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


Remainder of 2024	$	152
Total	$	152

FINANCIAL INSTRUMENTS - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Cash and cash equivalents	$ 76,646	$ 179,911
Short-term restricted cash	300	300
Long-term restricted cash	2,422	2,422
Total assets measured at fair value	564,636	634,138
Liabilities
Contingent consideration	19,480	19,550
Total liabilities measured at fair value	19,480	19,550
Investments:
Assets
Investments:	485,268	451,505
Commercial paper
Assets
Investments:	10,078	9,947
Corporate debt securities
Assets
Investments:	88,802	88,579
U.S. government & agency securities
Assets
Investments:	386,388	352,979
Level 1
Assets
Cash and cash equivalents	71,652	70,172
Short-term restricted cash	300	300
Long-term restricted cash	2,422	2,422
Total assets measured at fair value	74,374	72,894
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	4,994	109,739
Short-term restricted cash	0	0
Long-term restricted cash	0	0
Total assets measured at fair value	490,262	561,244
Liabilities
Contingent consideration	0	0
Total liabilities measured at fair value	0	0
Level 2 \| Investments:
Assets
Investments:	485,268	451,505
Level 2 \| Commercial paper
Assets
Investments:	10,078	9,947
Level 2 \| Corporate debt securities
Assets
Investments:	88,802	88,579
Level 2 \| U.S. government & agency securities
Assets
Investments:	386,388	352,979
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	19,480	19,550
Total liabilities measured at fair value	19,480	19,550
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

BUSINESS ACQUISITIONS (Tables)

3 Months Ended

Mar. 31, 2024

Business Combination and Asset Acquisition [Abstract]

Schedule of Business Combination

The major classes of assets and liabilities to which we have allocated the total fair value of the consideration transferred, based on the preliminary estimated fair values were as follows (in thousands):


Cash and cash equivalents	$	97
In-process research and development	55,000
Goodwill	52,287
Other assets, current	153
Deferred income tax liability	(11,338)
Liabilities assumed	(2,191)
Total consideration transferred	$	94,008

FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2024

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:


	March 31, 2024								December 31, 2023
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents	$	71,652	$	4,994	$	—	$	76,646	$	70,172	$	109,739	$	—	$	179,911
Investments:
Commercial paper	—		10,078		—		10,078		—		9,947		—		9,947
Corporate debt securities	—		88,802		—		88,802		—		88,579		—		88,579
U.S. government & agency securities	—		386,388		—		386,388		—		352,979		—		352,979
Total investments	—		485,268		—		485,268		—		451,505		—		451,505

Short-term restricted cash	300		—		—		300		300		—		—		300
Long-term restricted cash	2,422		—		—		2,422		2,422		—		—		2,422
Total assets measured at fair value	$	74,374	$	490,262	$	—	$	564,636	$	72,894	$	561,244	$	—	$	634,138

Liabilities
Contingent consideration	$	—	$	—	$	19,480	$	19,480	$	—	$	—	$	19,550	$	19,550
Total liabilities measured at fair value	$	—	$	—	$	19,480	$	19,480	$	—	$	—	$	19,550	$	19,550

We classify contingent consideration, which was incurred in connection with the acquisition of Apton, 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. Estimates and assumptions used in the Monte Carlo simulation include risk-adjusted forecasted revenues for products and services leveraging Apton's technology and an estimated credit spread.

We estimate the fair value of the contingent consideration liability based on the simulated revenue of the Company through the 5-year anniversary of the closing date of the acquisition. As of March 31, 2024, the key input used in the determination of the fair value included projected revenues of the high-throughput short-read products and services leveraging Apton's technology. A decrease in the projected revenues 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- credit rating, which ranges from 7.4% to 7.7%. 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 three months ended March 31, 2024 were as follows:


(in thousands)	Level 3
Beginning balance as of December 31, 2023	$	19,550

Change in estimated fair value	(70)

Ending balance as of March 31, 2024	$	19,480

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.

For the three months ended March 31, 2024, 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:


	As of March 31, 2024
(in thousands)	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Fair Value
Cash and cash equivalents	$	76,646	$	—	$	—	$	76,646
Investments:
Commercial paper	10,078		—		—		10,078
Corporate debt securities	88,755		133		(86)		88,802
U.S. government & agency securities	386,741		75		(428)		386,388
Total investments	485,574		208		(514)		485,268
Total cash, cash equivalents and investments	$	562,220	$	208	$	(514)	$	561,914

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


	As of December 31, 2023
(in thousands)	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Fair Value
Cash and cash equivalents	$	179,958	$	13	$	(60)	$	179,911
Investments:
Commercial paper	9,947		—		—		9,947
Corporate debt securities	88,263		373		(57)		88,579
U.S. government & agency securities	353,029		478		(528)		352,979
Total investments	451,239		851		(585)		451,505
Total cash, cash equivalents and investments	$	631,197	$	864	$	(645)	$	631,416

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

The following table summarizes the contractual maturities of our cash equivalents and available-for-sale investments, excluding money market funds, as of March 31, 2024:


(in thousands)	Fair Value
Due in one year or less	$	380,422
Due after one year through five years	109,840
Total	$	490,262

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

Investment income included in other income, net on the Condensed Consolidated Statement of Operations and Comprehensive Loss was $7.2 million for the three months ended March 31, 2024 and $6.8 million for the three months ended March 31, 2023.

SUBSEQUENT EVENTS	3 Months Ended
SUBSEQUENT EVENTS	Mar. 31, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS On April 16, 2024, we announced plans to reduce operating costs. In connection with our expense reduction initiatives, we began implementing a reduction of our global workforce and will close our San Diego office. As a result of these actions, we expect to record a restructuring charge, comprised primarily of compensation and benefits afforded to terminated employees and lease-related costs. At this time, we are unable to make a determination of the estimated amount or range of amounts for charges to be incurred in connection with these actions.

CONVERTIBLE SENIOR NOTES (Tables)

3 Months Ended

Mar. 31, 2024

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)	March 31, 2024		December 31, 2023
Principal amount	$	441,000	$	441,000
Unamortized debt premium	507		524
Unamortized debt issuance costs	(6,670)		(6,907)
Net carrying amount	$	434,837	$	434,617

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)	March 31, 2024		December 31, 2023
Principal amount	$	459,000	$	459,000
Unamortized debt issuance costs	(1,292)		(1,374)
Net carrying amount	$	457,708	$	457,626

Schedule of Interest Expense

For the three months ended March 31, 2024 and 2023, interest expense for the 2030 Notes was as follows:


	Three Months Ended March 31,
(in thousands)	2024		2023
Contractual interest expense	$	1,533	$	—
Amortization of debt issuance costs	239		—
Total interest expense	$	1,772	$	—

For the three months ended March 31, 2024 and 2023, interest expense for the 2028 Notes was as follows:


	Three Months Ended March 31,
(in thousands)	2024		2023
Contractual interest expense	$	1,721	$	3,375
Amortization of debt issuance costs	81		156
Total interest expense	$	1,802	$	3,531

- 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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+ Details

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2024
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, 2023 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 March 31, 2024 and December 31, 2023.

- 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

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Additional liability associated with indemnification obligations	$ 0	$ 0

BALANCE SHEET COMPONENTS - Estimated Future Amortization Expense of Acquisition-Related Intangible Assets with Definite Lives (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Balance Sheet Components [Abstract]
Remainder of 2024	$ 20,559
2025	27,412
2026	27,412
2027	27,412
2028	27,412
2029 and thereafter	264,924
Total	$ 395,131	$ 401,984

STOCKHOLDERS’ EQUITY - Summary of Time Based Options (Details) - Time-based stock option shares in Thousands	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Number of shares
Outstanding, beginning (in shares) \| shares	13,011
Granted (in shares) \| shares	80
Exercised (in shares) \| shares	(515)
Canceled (in shares) \| shares	(239)
Expired (in shares) \| shares	(100)
Outstanding, ending (in shares) \| shares	12,237
Weighted average exercise price
Beginning, outstanding (in dollars per share) \| $ / shares	$ 10.63
Granted (in dollars per share) \| $ / shares	3.67
Exercised (in dollars per share) \| $ / shares	3.15
Canceled (in dollars per share) \| $ / shares	11.87
Expired (in dollars per share) \| $ / shares	7.05
Ending, outstanding (in dollars per share) \| $ / shares	$ 10.90

BUSINESS ACQUISITIONS - Schedule of Business Acquisition (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Aug. 02, 2023
Business Acquisition [Line Items]
Goodwill	$ 462,261	$ 462,261
Apton
Business Acquisition [Line Items]
Cash and cash equivalents			$ 97
In-process research and development			55,000
Goodwill			52,287
Other assets, current			153
Deferred income tax liability			(11,338)
Liabilities assumed			(2,191)
Total consideration transferred			$ 94,008

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

STOCKHOLDERS’ EQUITY (Tables)

3 Months Ended

Mar. 31, 2024

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, 2023	13,011	$	10.63
Granted	80	3.67
Exercised	(515)	3.15
Canceled	(239)	11.87
Expired	(100)	7.05
Outstanding at March 31, 2024	12,237	$	10.90

Summary of Time-Based RSUs Activity

The following table summarizes the time-based RSUs and PSUs activity:


	Restricted Stock Units (RSU)	Performance Stock Units (PSU)	Weighted average grant date fair value
(Shares in thousands)			RSU		PSU
Outstanding at December 31, 2023	11,308	541	$	12.06	$	9.43
Granted	12,194	—	5.15		—
Vested	(2,827)	—	12.96		—
Forfeited	(587)	—	9.92		—
Outstanding at March 31, 2024	20,088	541	$	7.80	$	9.43

Schedule of Stock-Based Compensation Expense

The following table summarizes share-based compensation expense:


	Three Months Ended March 31,
(in thousands)	2024		2023
Cost of revenue	$	2,106	$	1,948
Research and development	5,788		6,705
Sales, general and administrative	11,631		9,299
Total share-based compensation expense	$	19,525	$	17,952

Schedule of Fair Value of Employee Stock Options

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


			Three Months Ended March 31,
			2024
Expected term in years			4.9
Expected volatility			81%
Risk-free interest rate			4.32%
Dividend yield			—
Weighted average grant date fair value per share			$2.45

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:


	Three Months Ended March 31,
	2024	2023
Expected term in years	0.5 — 2.0	0.5 — 2.0
Expected volatility	81%	97%
Risk-free interest rate	4.54% — 5.27%	4.89% — 5.20%
Dividend yield	—	—
Weighted average grant date fair value per share	$2.78	$5.00

FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2024

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:


	March 31, 2024								December 31, 2023
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents	$	71,652	$	4,994	$	—	$	76,646	$	70,172	$	109,739	$	—	$	179,911
Investments:
Commercial paper	—		10,078		—		10,078		—		9,947		—		9,947
Corporate debt securities	—		88,802		—		88,802		—		88,579		—		88,579
U.S. government & agency securities	—		386,388		—		386,388		—		352,979		—		352,979
Total investments	—		485,268		—		485,268		—		451,505		—		451,505

Short-term restricted cash	300		—		—		300		300		—		—		300
Long-term restricted cash	2,422		—		—		2,422		2,422		—		—		2,422
Total assets measured at fair value	$	74,374	$	490,262	$	—	$	564,636	$	72,894	$	561,244	$	—	$	634,138

Liabilities
Contingent consideration	$	—	$	—	$	19,480	$	19,480	$	—	$	—	$	19,550	$	19,550
Total liabilities measured at fair value	$	—	$	—	$	19,480	$	19,480	$	—	$	—	$	19,550	$	19,550

Changes in the Estimated Fair Value of Contingent Consideration Liability

Changes in the estimated fair value of the contingent consideration liability for the three months ended March 31, 2024 were as follows:


(in thousands)	Level 3
Beginning balance as of December 31, 2023	$	19,550

Change in estimated fair value	(70)

Ending balance as of March 31, 2024	$	19,480

Summary of Cash, Cash Equivalents and Investments

The following tables summarize our cash, cash equivalents and investments:


	As of March 31, 2024
(in thousands)	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Fair Value
Cash and cash equivalents	$	76,646	$	—	$	—	$	76,646
Investments:
Commercial paper	10,078		—		—		10,078
Corporate debt securities	88,755		133		(86)		88,802
U.S. government & agency securities	386,741		75		(428)		386,388
Total investments	485,574		208		(514)		485,268
Total cash, cash equivalents and investments	$	562,220	$	208	$	(514)	$	561,914

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


	As of December 31, 2023
(in thousands)	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Fair Value
Cash and cash equivalents	$	179,958	$	13	$	(60)	$	179,911
Investments:
Commercial paper	9,947		—		—		9,947
Corporate debt securities	88,263		373		(57)		88,579
U.S. government & agency securities	353,029		478		(528)		352,979
Total investments	451,239		851		(585)		451,505
Total cash, cash equivalents and investments	$	631,197	$	864	$	(645)	$	631,416

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

The following table summarizes the contractual maturities of our cash equivalents and available-for-sale investments, excluding money market funds, as of March 31, 2024:


(in thousands)	Fair Value
Due in one year or less	$	380,422
Due after one year through five years	109,840
Total	$	490,262

- 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
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-Name Accounting Standards Codification
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-Subparagraph (b)
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Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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+ Details

STOCKHOLDERS’ EQUITY

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

STOCKHOLDERS’ EQUITY

Equity Plans

As of March 31, 2024, 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 March 31, 2024, we had 1.5 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, 2023 for more information on the Company's equity plans.

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, 2023	13,011	$	10.63
Granted	80	3.67
Exercised	(515)	3.15
Canceled	(239)	11.87
Expired	(100)	7.05
Outstanding at March 31, 2024	12,237	$	10.90

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 is based on performance relative to specified revenue targets and continued employment through the vesting period. These PSU shares are issuable following the third year of the performance 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:


	Restricted Stock Units (RSU)	Performance Stock Units (PSU)	Weighted average grant date fair value
(Shares in thousands)			RSU		PSU
Outstanding at December 31, 2023	11,308	541	$	12.06	$	9.43
Granted	12,194	—	5.15		—
Vested	(2,827)	—	12.96		—
Forfeited	(587)	—	9.92		—
Outstanding at March 31, 2024	20,088	541	$	7.80	$	9.43

Employee Stock Purchase Plan (“ESPP”)

Shares issued under our ESPP were 1,194,436 and 1,052,908 during the three months ended March 31, 2024 and 2023, respectively. In the first quarter of 2024, an additional 4.0 million shares were reserved under the ESPP. As of March 31, 2024, 15.0 million shares of our common stock remain available for issuance under our ESPP.

Share-Based Compensation

The following table summarizes share-based compensation expense:


	Three Months Ended March 31,
(in thousands)	2024		2023
Cost of revenue	$	2,106	$	1,948
Research and development	5,788		6,705
Sales, general and administrative	11,631		9,299
Total share-based compensation expense	$	19,525	$	17,952

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, considering 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.

For the three months ended March 31, 2023, there were no employee stock options granted. The fair value of employee stock options was estimated using the following assumptions:


			Three Months Ended March 31,
			2024
Expected term in years			4.9
Expected volatility			81%
Risk-free interest rate			4.32%
Dividend yield			—
Weighted average grant date fair value per share			$2.45

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


	Three Months Ended March 31,
	2024	2023
Expected term in years	0.5 — 2.0	0.5 — 2.0
Expected volatility	81%	97%
Risk-free interest rate	4.54% — 5.27%	4.89% — 5.20%
Dividend yield	—	—
Weighted average grant date fair value per share	$2.78	$5.00

CONVERTIBLE SENIOR NOTES (Schedule of Net Carrying Amount) (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
2030 Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount	$ 441,000	$ 441,000
Unamortized debt premium	507	524
Unamortized debt issuance costs	(6,670)	(6,907)
Total	434,837	434,617
2028 Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount	459,000	459,000
Unamortized debt issuance costs	(1,292)	(1,374)
Total	$ 457,708	$ 457,626

- 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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Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

FINANCIAL INSTRUMENTS - Summary of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 562,220	$ 631,197
Gross unrealized gains	208	864
Gross unrealized losses	(514)	(645)
Fair Value	561,914	631,416
Short-term restricted cash	300	300
Long-term restricted cash	2,422	2,422
Cash and cash equivalents
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	76,646	179,958
Gross unrealized gains	0	13
Gross unrealized losses	0	(60)
Fair Value	76,646	179,911
Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	10,078	9,947
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Fair Value	10,078	9,947
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	88,755	88,263
Gross unrealized gains	133	373
Gross unrealized losses	(86)	(57)
Fair Value	88,802	88,579
U.S. government & agency securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	386,741	353,029
Gross unrealized gains	75	478
Gross unrealized losses	(428)	(528)
Fair Value	386,388	352,979
Investments:
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	485,574	451,239
Gross unrealized gains	208	851
Gross unrealized losses	(514)	(585)
Fair Value	$ 485,268	$ 451,505

BUSINESS ACQUISITIONS

3 Months Ended

Mar. 31, 2024

Business Combination and Asset Acquisition [Abstract]

BUSINESS ACQUISITIONS

Apton Biosystems

On August 2, 2023, we acquired Apton Biosystems, Inc. (“Apton”), a California-based genomics company focused on developing a high throughput short-read sequencer using highly differentiated optics and image processing, paired with novel clustering and chemistry (the “Apton acquisition”).

In connection with the Apton acquisition, all outstanding equity securities of Apton were cancelled in exchange for shares of our common stock with a fair value of $76.6 million, cash of $0.2 million, and contingent consideration with a preliminary estimated fair value of $18.5 million. Excluded from consideration transferred was $1.3 million attributable to accelerated share-based compensation expense. The fair value of the 6,121,571 common shares issued was determined based on the closing market price of our common stock on the acquisition date.

In connection with the Apton acquisition, contingent consideration of $25.0 million, which we may elect to pay in cash, shares of our common stock or a combination of cash and shares of our common stock, is due upon the achievement of a milestone, defined as the achievement of $50.0 million in revenue associated with Apton's technology, provided that the milestone event occurs prior to the 5-year anniversary of the closing date of the acquisition. 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 our common stock for the twenty trading days ending on and including the fifth trading day immediately prior to the occurrence of the specified milestone. Upon achievement of the milestone, we may pay cash in lieu of our common stock to ensure that the issuance of our common stock does not exceed 19.9% of our outstanding shares of common stock then outstanding.

The contingent consideration is accounted for as a liability at fair value, with changes during each reporting period recognized in our Consolidated Statements of Operations and Comprehensive Loss. The fair value of the contingent consideration liability is calculated, with the assistance from a third-party valuation firm, using a Monte Carlo Simulation to estimate the volatility and systematic relative risk of revenues subject to sales milestone payments and discounting the associated cash payment amounts to their present values using a credit-risk-adjusted interest rate.

We allocated the consideration transferred to the identifiable assets acquired and liabilities assumed based on preliminary estimates of their respective fair values at the date of the completion of the Apton acquisition, and such allocation is subject to adjustment for up to one year after the close of the acquisition as additional information is obtained. The major classes of assets and liabilities to which we have allocated the total fair value of the consideration transferred, based on the preliminary estimated fair values were as follows (in thousands):


Cash and cash equivalents	$	97
In-process research and development	55,000
Goodwill	52,287
Other assets, current	153
Deferred income tax liability	(11,338)
Liabilities assumed	(2,191)
Total consideration transferred	$	94,008

The purchase price allocation is preliminary, primarily due to the pending finalization of the review of various tax attributes. We expect to finalize the purchase price allocation within 12 months of the acquisition date. We will recognize adjustments to the preliminary amounts with a corresponding adjustment to goodwill in the reporting period in which the adjustments to the preliminary amounts are determined.

We incurred costs related to the Apton acquisition of approximately $9.0 million during the year ended December 31, 2023. Merger-related expenses include $2.8 million relating to a liquidity event bonus plan that was treated as a separate transaction and included the issuance of 168,621 shares of common stock that were issued with a fair value of $2.1 million based on the closing market price of our common stock on the acquisition date. As a result, the total shares issued in connection with the Apton acquisition were 6.3 million shares of common stock.

The excess of the value of consideration paid over the aggregate fair value of those net assets has been recorded as goodwill. We recognized goodwill of $52.3 million, based on preliminary estimates, which is primarily attributable to the synergies expected to occur from the integration of Apton and is not deductible for income tax purposes. We preliminarily allocated $55.0 million of the purchase price to acquired in-process research and development ("IPR&D"). The fair value of the IPR&D was determined, with the assistance of a third-party valuation firm, using an income approach based on a forecast of expected future cash flows. Expected future cash flows utilize significant assumptions such as assumed revenue growth, discount rate and obsolescence factors.

CONVERTIBLE SENIOR NOTES

3 Months Ended

Mar. 31, 2024

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 year ended December 31, 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 $7.3 million, which were recorded as debt issuance costs and are presented as a reduction to the 2030 Notes on our Consolidated Balance Sheets. The debt issuance costs 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)	March 31, 2024		December 31, 2023
Principal amount	$	441,000	$	441,000
Unamortized debt premium	507		524
Unamortized debt issuance costs	(6,670)		(6,907)
Net carrying amount	$	434,837	$	434,617

For the three months ended March 31, 2024 and 2023, interest expense for the 2030 Notes was as follows:


	Three Months Ended March 31,
(in thousands)	2024		2023
Contractual interest expense	$	1,533	$	—
Amortization of debt issuance costs	239		—
Total interest expense	$	1,772	$	—

As of March 31, 2024, the estimated fair value (Level 2) of the 2030 Notes was $343.6 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. The debt issuance costs 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)	March 31, 2024		December 31, 2023
Principal amount	$	459,000	$	459,000
Unamortized debt issuance costs	(1,292)		(1,374)
Net carrying amount	$	457,708	$	457,626

For the three months ended March 31, 2024 and 2023, interest expense for the 2028 Notes was as follows:


	Three Months Ended March 31,
(in thousands)	2024		2023
Contractual interest expense	$	1,721	$	3,375
Amortization of debt issuance costs	81		156
Total interest expense	$	1,802	$	3,531

As of March 31, 2024, the estimated fair value (Level 2) of the 2028 Notes was $381.7 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
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net loss	$ (78,178)	$ (88,015)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	3,240	2,755
Amortization of intangible assets	6,853	234
Amortization of right-of-use assets	1,921	1,527
Share-based compensation expense	19,525	17,952
Accretion of discount and amortization of premium on marketable securities, net	(4,031)	(2,155)
Change in the estimated fair value of contingent consideration	(70)	12,256
Inventory provision	3	3,521
Other	403	363
Changes in assets and liabilities
Accounts receivable, net	6,292	(10,803)
Inventory, net	(11,655)	(13,319)
Prepaid expenses and other assets	3,051	(6,888)
Accounts payable	6,644	5,068
Accrued expenses	(23,753)	(13,186)
Deferred revenue	1,601	423
Operating lease liabilities	(2,376)	(1,969)
Other liabilities	(5,152)	(2,455)
Net cash used in operating activities	(75,682)	(94,691)
Cash flows from investing activities
Purchase of property and equipment	(3,879)	(3,721)
Purchases of investments	(191,907)	(233,291)
Sales of investments	0	595
Maturities of investments	161,650	163,864
Net cash used in investing activities	(34,136)	(72,553)
Cash flows from financing activities
Proceeds from issuance of common stock under equity offerings, net of issuance costs	0	189,200
Proceeds from issuance of common stock from equity plans	6,891	7,235
Notes payable principal payoff	(338)	(446)
Net cash provided by financing activities	6,553	195,989
Net (decrease) increase in cash, cash equivalents, and restricted cash	(103,265)	28,745
Cash, cash equivalents, and restricted cash at beginning of period	182,633	328,311
Cash, cash equivalents, and restricted cash at end of period	79,368	357,056
Cash and cash equivalents at end of period	76,646	353,834
Restricted cash at end of period	2,722	3,222
Cash, cash equivalents, and restricted cash at end of period	$ 79,368	$ 357,056

REVENUE (Tables)

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Revenue by Geographic Location

A summary of our revenue by geographic location is as follows:


	Three Months Ended March 31,
(in thousands)	2024		2023
Americas	$	17,678	$	19,071
Europe, Middle East and Africa	8,356		7,870
Asia-Pacific	12,776		11,959
Total	$	38,810	$	38,900

Summary of Revenue by Category

A summary of our revenue by category is as follows:


	Three Months Ended March 31,
(in thousands)	2024		2023
Instrument revenue	$	19,025	$	20,700
Consumable revenue	15,984		13,954
Product revenue	35,009		34,654
Service and other revenue	3,801		4,246
Total revenue	$	38,810	$	38,900

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Accounts Receivable - Customer Concentration Risk	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Domestic Customers
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	42.00%	49.00%
Customer One
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage		10.00%

BALANCE SHEET COMPONENTS - Narrative (Details) - USD ($)		3 Months Ended
	Sep. 20, 2021	Mar. 31, 2024	Jun. 30, 2023	Dec. 31, 2023	Aug. 02, 2023
Balance Sheet Components [Line Items]
Goodwill		$ 462,261,000		$ 462,261,000
Goodwill, impairment loss			$ 0
Deferred revenue		23,400,000
Deferred revenue, current		17,346,000		16,342,000
Deferred revenue, non-current		6,127,000		$ 5,530,000
Revenue recognized		$ 3,200,000
Standard product warranty, period		1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Balance Sheet Components [Line Items]
Remaining performance obligation		$ 6,100,000
Remaining performance obligation period		6 years
Term Loans
Balance Sheet Components [Line Items]
Short- and long-term debt		$ 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
Apton
Balance Sheet Components [Line Items]
Goodwill					$ 52,287,000
In-process research and development					$ 55,000,000

BALANCE SHEET COMPONENTS - Changes in Reserve for Product Warranties (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Balance at beginning of period	$ 4,681	$ 1,651
Additions charged to cost of product revenue	1,600	604
Repairs and replacements	(2,161)	(631)
Balance at end of period	$ 4,120	$ 1,624

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2022		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	(88,015)				(88,015)
Other comprehensive income (loss)	2,841			2,841
Issuance of common stock in conjunction with equity plans (in shares)		3,173
Issuance of common stock in conjunction with equity plans	7,235	$ 3	7,232
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
Share-based compensation expense	17,952		17,952
Ending balance (in shares) at Mar. 31, 2023		249,803
Ending balance at Mar. 31, 2023	$ 692,117	$ 250	2,314,146	(1,924)	(1,620,355)
Beginning balance (in shares) at Dec. 31, 2023	267,744	267,744
Beginning balance at Dec. 31, 2023	$ 701,304	$ 268	2,539,892	219	(1,839,075)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(78,178)				(78,178)
Other comprehensive income (loss)	(525)			(525)
Issuance of common stock in conjunction with equity plans (in shares)		4,536
Issuance of common stock in conjunction with equity plans	6,891	$ 4	6,887
Share-based compensation expense	$ 19,525		19,525
Ending balance (in shares) at Mar. 31, 2024	272,280	272,280
Ending balance at Mar. 31, 2024	$ 649,017	$ 272	$ 2,566,304	$ (306)	$ (1,917,253)

FINANCIAL INSTRUMENTS - Narrative (Details) $ in Millions	3 Months Ended
FINANCIAL INSTRUMENTS - Narrative (Details) $ in Millions	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)
Business Acquisition [Line Items]
Investment income, net	$ 7.2	$ 6.8
Business acquisition, anniversary	5 years
Minimum \| Measurement Input, Risk Free Interest Rate \| Valuation, Income Approach
Business Acquisition [Line Items]
Discount rates	0.074
Maximum \| Measurement Input, Risk Free Interest Rate \| Valuation, Income Approach
Business Acquisition [Line Items]
Discount rates	0.077

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net loss	$ (78,178)	$ (88,015)

- Definition

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

+ References

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+ Details

CONVERTIBLE SENIOR NOTES (Schedule of Interest Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
2030 Convertible Senior Notes
Debt Instrument [Line Items]
Contractual interest expense	$ 1,533	$ 0
Amortization of debt issuance costs	239	0
Total interest expense	1,772	0
2028 Convertible Senior Notes
Debt Instrument [Line Items]
Contractual interest expense	1,721	3,375
Amortization of debt issuance costs	81	156
Total interest expense	$ 1,802	$ 3,531

- 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

BALANCE SHEET COMPONENTS

3 Months Ended

Mar. 31, 2024

Balance Sheet Components [Abstract]

BALANCE SHEET COMPONENTS

Inventory, net

Our inventory, net, consisted of the following components:


(in thousands)	March 31, 2024		December 31, 2023
Purchased materials	$	24,632	$	20,168
Work in process	26,298		23,436
Finished goods	16,413		13,072
Inventory, net	$	67,343	$	56,676

Goodwill and Intangible Assets

Goodwill

We had goodwill of $462.3 million as of March 31, 2024 and December 31, 2023. 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.

Intangible Assets

Intangible assets include acquired in-process research and development ("IPR&D") of $55.0 million as a result of the Apton acquisition in August 2023. 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 is not amortized, but instead is 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 amortize the asset over the life of the product or record an impairment charge if the asset is determined to be impaired. We performed our annual assessment of IPR&D in the third quarter of 2023 in connection with the completion of the IPR&D acquired through the acquisition of Omniome, noting no impairment.

In addition to IPR&D, definite-lived intangible assets included the following:


		As of March 31, 2024						As of December 31, 2023
(in thousands, except years)	Estimated Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Developed technology	15	$	411,179	$	(16,048)	$	395,131	$	411,179	$	(9,195)	$	401,984
Customer relationships	2	360		(360)		—		360		(360)		—
Total		$	411,539	$	(16,408)	$	395,131	$	411,539	$	(9,555)	$	401,984

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


Remainder of 2024	$	20,559
2025	27,412
2026	27,412
2027	27,412
2028	27,412
2029 and thereafter	264,924
Total	$	395,131

Amortization of intangible assets is included within our cost of revenue if the costs and expenses related to the intangible assets are attributable to revenue generating activities. Amortization expense for intangible assets that are not directly related to sales generating activities are amortized to operating expenses. For developed technology intangible assets that are utilized in both revenue generating activities and in research and development activities, we allocate the amortization expense between cost of revenue and operating expenses. The definite-lived intangible assets are amortized using the straight-line method over their estimated useful lives.

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.

Deferred Revenue

As of March 31, 2024, we had a total of $23.4 million of deferred revenue, $17.3 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. 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, 2023 for more information. The deferred revenue, non-current balance of $6.1 million primarily relates to deferred service contract revenues and is scheduled to be recognized in the next 6 years. Revenue recorded in the three months ended March 31, 2024 includes $3.2 million that was included in deferred revenue as of December 31, 2023.

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. Warranties are recorded as part of accrued expenses on the Condensed Consolidated Balance Sheets and warranty expense is recorded as a component of cost of product revenue in the Condensed Consolidated Statements of Operations and Comprehensive Loss. 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:


	Three Months Ended March 31,
(in thousands)	2024		2023
Balance at beginning of period	$	4,681	$	1,651
Additions charged to cost of product revenue	1,600		604
Repairs and replacements	(2,161)		(631)
Balance at end of period	$	4,120	$	1,624

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 March 31, 2024, the carrying value of term loans outstanding was $0.2 million, recorded as part of other liabilities, current on the Condensed Consolidated Balance Sheet. Interest expense was not material for the three months ended March 31, 2024, and 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 2024	$	152
Total	$	152

NET LOSS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2024

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:


	Three Months Ended March 31,
(in thousands, except per share amounts)	2024		2023
Numerator:
Net loss	$	(78,178)	$	(88,015)

Denominator:
Basic
Weighted average shares used in computing basic net loss per share	269,578		242,032
Basic net loss per share	$	(0.29)	$	(0.36)

Diluted




Weighted average shares used in computing diluted net loss per share	269,578		242,032
Diluted net loss per share	$	(0.29)	$	(0.36)

Antidilutive Shares Excluded From Computation of Diluted Net Loss Per Share


	Three Months Ended March 31,
(in thousands)	2024	2023
Shares issuable upon conversion of convertible senior notes	31,063	20,690




Equity Awards	36,924	30,366

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2024	Apr. 30, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
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		272,355,892
Entity Central Index Key	0001299130
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

STOCKHOLDERS’ EQUITY - Schedule of Fair Value of Employee Stock Options (Details) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Dividend yield	0.00%	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
Expected volatility	81.00%
Risk-free interest rate	4.32%
Weighted average grant date fair value per share (in dollars per share)	$ 2.45

- 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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+ Details

STOCKHOLDERS’ EQUITY - Schedule of Fair Value of Employee Stock Purchase Plan (Details) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Dividend yield	0.00%	0.00%
ESPP
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility	81.00%	97.00%
Risk-free interest rate, minimum	4.54%	4.89%
Risk-free interest rate, maximum	5.27%	5.20%
Weighted average grant date fair value per share (in dollars per share)	$ 2.78	$ 5.00
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

REVENUE - Schedule of Revenue by Geographic Location (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 38,810	$ 38,900
Americas
Disaggregation of Revenue [Line Items]
Total revenue	17,678	19,071
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total revenue	8,356	7,870
Asia-Pacific
Disaggregation of Revenue [Line Items]
Total revenue	$ 12,776	$ 11,959

- 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

STOCKHOLDERS’ EQUITY - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 19,525	$ 17,952
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	2,106	1,948
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	5,788	6,705
Sales, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 11,631	$ 9,299

STOCKHOLDERS’ EQUITY - Narrative (Details)	3 Months Ended
STOCKHOLDERS’ EQUITY - Narrative (Details)	Mar. 31, 2024 $ / shares shares	Mar. 31, 2023 shares	Dec. 31, 2023 $ / shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001		$ 0.001
Dividend yield	0.00%	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
Employee Stock Option
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares)		0
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)	1,500,000
ESPP
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock remain available for issuance (in shares)	15,000,000
Shares issued (in shares)	1,194,436	1,052,908
Additional common stock reserved for issuance (in shares)	4,000,000

BALANCE SHEET COMPONENTS - Components of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Balance Sheet Components [Abstract]
Purchased materials	$ 24,632	$ 20,168
Work in process	26,298	23,436
Finished goods	16,413	13,072
Inventory, net	$ 67,343	$ 56,676

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
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net loss	$ (78,178)	$ (88,015)
Basic
Weighted average shares used in computing basic net loss per share (in shares)	269,578	242,032
Basic net loss per share (in dollars per share)	$ (0.29)	$ (0.36)
Diluted
Weighted average shares used in computing diluted net loss per share (in shares)	269,578	242,032
Diluted net loss per share (in dollars per share)	$ (0.29)	$ (0.36)

- 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

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 76,646	$ 179,911
Investments	485,268	451,505
Accounts receivable, net	30,323	36,615
Inventory, net	67,343	56,676
Prepaid expenses and other current assets	17,144	17,040
Short-term restricted cash	300	300
Total current assets	677,024	742,047
Property and equipment, net	37,291	36,432
Operating lease right-of-use assets, net	30,672	32,593
Long-term restricted cash	2,422	2,422
Intangible assets, net	450,131	456,984
Goodwill	462,261	462,261
Other long-term assets	10,119	13,274
Total assets	1,669,920	1,746,013
Current liabilities
Accounts payable	21,006	15,062
Accrued expenses	21,991	45,708
Deferred revenue, current	17,346	16,342
Operating lease liabilities, current	9,772	9,591
Other liabilities, current	2,836	8,326
Total current liabilities	72,951	95,029
Deferred revenue, non-current	6,127	5,530
Contingent consideration liability, non-current	19,480	19,550
Operating lease liabilities, non-current	29,049	31,606
Convertible senior notes, net, non-current	892,545	892,243
Other liabilities, non-current	751	751
Total liabilities	1,020,903	1,044,709
Commitments and contingencies
Stockholders’ equity
Authorized 50,000 shares; No shares issued or outstanding	0	0
Authorized 1,000,000 shares; issued and outstanding 272,280 and 267,744 shares at March 31, 2024 and December 31, 2023, respectively	272	268
Additional paid-in capital	2,566,304	2,539,892
Accumulated other comprehensive (loss) income	(306)	219
Accumulated deficit	(1,917,253)	(1,839,075)
Total stockholders’ equity	649,017	701,304
Total liabilities and stockholders’ equity	$ 1,669,920	$ 1,746,013