Pacific Biosciences of California (PACB) 10-Q 3 Nov 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2023	Oct. 31, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-34899
Entity Registrant Name	Pacific Biosciences of California, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	16-1590339
Entity Address, Address Line One	1305 O’Brien Drive
Entity Address, City or Town	Menlo Park
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94025
City Area Code	650
Local Phone Number	521-8000
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	PACB
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		267,443,887
Entity Central Index Key	0001299130
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 385,648	$ 325,089
Investments	382,141	447,229
Accounts receivable, net	30,486	18,786
Inventory, net	68,256	50,381
Prepaid expenses and other current assets	15,466	10,289
Short-term restricted cash	300	300
Total current assets	882,297	852,074
Property and equipment, net	40,340	41,580
Operating lease right-of-use assets, net	34,610	39,763
Long-term restricted cash	2,422	2,922
Intangible assets, net	461,838	410,245
Goodwill	463,843	409,974
Other long-term assets	13,004	10,528
Total assets	1,898,354	1,767,086
Current liabilities
Accounts payable	16,106	12,028
Accrued expenses	34,660	32,596
Deferred revenue, current	22,372	30,498
Operating lease liabilities, current	9,460	8,886
Other liabilities, current	5,170	7,233
Contingent consideration liability, current	96,193	172,094
Total current liabilities	183,961	263,335
Deferred revenue, non-current	5,053	1,794
Contingent consideration liability, non-current	18,450	0
Operating lease liabilities, non-current	34,100	41,070
Convertible senior notes, net, non-current	891,996	896,683
Other liabilities, non-current	1,051	1,300
Total liabilities	1,134,611	1,204,182
Commitments and contingencies
Stockholders’ equity
Authorized 50,000 shares; No shares issued or outstanding	0	0
Authorized 1,000,000 shares; issued and outstanding 258,374 and 226,505 shares at September 30, 2023 and December 31, 2022, respectively	258	227
Additional paid-in capital	2,522,382	2,099,782
Accumulated other comprehensive loss	(1,840)	(4,765)
Accumulated deficit	(1,757,057)	(1,532,340)
Total stockholders’ equity	763,743	562,904
Total liabilities and stockholders’ equity	$ 1,898,354	$ 1,767,086

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in share)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	258,374,000	226,505,000
Common stock, shares outstanding (in shares)	258,374,000	226,505,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue:
Total revenue	$ 55,691	$ 32,311	$ 142,164	$ 100,951
Cost of Revenue:
Total cost of revenue	37,789	18,764	98,955	57,056
Gross profit	17,902	13,547	43,209	43,895
Operating Expense:
Research and development	47,514	47,092	142,626	150,377
Sales, general and administrative	43,431	36,795	123,822	115,851
Merger-related expenses	8,979	0	8,979	0
Amortization of acquired intangible assets	741	0	741	0
Change in fair value of contingent consideration	(271)	4,280	13,960	(2,221)
Total operating expense	100,394	88,167	290,128	264,007
Operating loss	(82,492)	(74,620)	(246,919)	(220,112)
Loss on extinguishment of debt	0	0	(2,033)	0
Interest expense	(3,588)	(3,664)	(10,772)	(11,042)
Other income, net	8,505	1,313	24,301	1,290
Loss before benefit from income taxes	(77,575)	(76,971)	(235,423)	(229,864)
Benefit from income taxes	(10,706)	0	(10,706)	0
Net loss	(66,869)	(76,971)	(224,717)	(229,864)
Other comprehensive income (loss):
Unrealized gain (loss) on investments	846	(803)	2,925	(5,173)
Comprehensive loss	$ (66,023)	$ (77,774)	$ (221,792)	$ (235,037)
Net loss per share:
Basic (in dollars per share)	$ (0.26)	$ (0.34)	$ (0.90)	$ (1.03)
Diluted (in dollars per share)	$ (0.26)	$ (0.34)	$ (0.90)	$ (1.03)
Weighted average shares outstanding used in calculating net loss per share:
Basic (in shares)	255,001	225,123	249,082	223,981
Diluted (in shares)	255,001	225,123	249,082	223,981
Product revenue
Revenue:
Total revenue	$ 51,562	$ 27,509	$ 129,871	$ 85,928
Cost of Revenue:
Cost of revenue	33,735	15,752	87,697	46,437
Service and other revenue
Revenue:
Total revenue	4,129	4,802	12,293	15,023
Cost of Revenue:
Cost of revenue	$ 4,054	$ 3,012	$ 11,258	$ 10,619

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss) Income	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2021		220,978
Beginning balance at Dec. 31, 2021	$ 790,987	$ 221	$ 2,009,945	$ (1,087)	$ (1,218,092)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(229,864)				(229,864)
Other comprehensive income (loss)	(5,173)			(5,173)
Issuance of common stock in conjunction with equity plans (in shares)		4,938
Issuance of common stock in conjunction with equity plans	9,983	$ 5	9,978
Share-based compensation expense	60,658		60,658
Ending balance (in shares) at Sep. 30, 2022		225,916
Ending balance at Sep. 30, 2022	626,591	$ 226	2,080,581	(6,260)	(1,447,956)
Beginning balance (in shares) at Jun. 30, 2022		224,756
Beginning balance at Jun. 30, 2022	681,886	$ 225	2,058,103	(5,457)	(1,370,985)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(76,971)				(76,971)
Other comprehensive income (loss)	(803)			(803)
Issuance of common stock in conjunction with equity plans (in shares)		1,160
Issuance of common stock in conjunction with equity plans	3,543	$ 1	3,542
Share-based compensation expense	18,936		18,936
Ending balance (in shares) at Sep. 30, 2022		225,916
Ending balance at Sep. 30, 2022	$ 626,591	$ 226	2,080,581	(6,260)	(1,447,956)
Beginning balance (in shares) at Dec. 31, 2022	226,505	226,505
Beginning balance at Dec. 31, 2022	$ 562,904	$ 227	2,099,782	(4,765)	(1,532,340)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(224,717)				(224,717)
Other comprehensive income (loss)	2,925			2,925
Shares issuable following milestone achievement	84,761		84,761
Issuance of common stock in acquisition of Apton (in shares)		6,121
Issuance of common stock in acquisition of Apton	76,642	$ 6	76,636
Issuance of common stock in connection with liquidity event bonus plan (in shares)		169
Issuance of common stock in connection with liquidity event bonus plan	2,111		2,111
Issuance of common stock from Underwritten Public Equity Offering, net of issuance costs (in shares)		20,125
Issuance of common stock from Underwritten Public Equity Offering, net of issuance costs	189,200	$ 20	189,180
Issuance of common stock in conjunction with equity plans (in shares)		5,454
Issuance of common stock in conjunction with equity plans	14,383	$ 5	14,378
Share-based compensation expense	$ 55,534		55,534
Ending balance (in shares) at Sep. 30, 2023	258,374	258,374
Ending balance at Sep. 30, 2023	$ 763,743	$ 258	2,522,382	(1,840)	(1,757,057)
Beginning balance (in shares) at Jun. 30, 2023		250,473
Beginning balance at Jun. 30, 2023	641,999	$ 250	2,334,623	(2,686)	(1,690,188)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(66,869)				(66,869)
Other comprehensive income (loss)	846			846
Shares issuable following milestone achievement	84,761		84,761
Issuance of common stock in acquisition of Apton (in shares)		6,121
Issuance of common stock in acquisition of Apton	76,642	$ 6	76,636
Issuance of common stock in connection with liquidity event bonus plan (in shares)		169
Issuance of common stock in connection with liquidity event bonus plan	2,111		2,111
Issuance of common stock in conjunction with equity plans (in shares)		1,611
Issuance of common stock in conjunction with equity plans	4,562	$ 2	4,560
Share-based compensation expense	$ 19,691		19,691
Ending balance (in shares) at Sep. 30, 2023	258,374	258,374
Ending balance at Sep. 30, 2023	$ 763,743	$ 258	$ 2,522,382	$ (1,840)	$ (1,757,057)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities
Net loss	$ (224,717)	$ (229,864)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	8,487	6,937
Amortization of intangible assets	1,408	685
Amortization of right-of-use assets	4,940	5,152
Share-based compensation expense	55,534	60,658
Merger-related compensation expense	3,395	0
Accretion of discount and amortization of premium on marketable securities, net	(10,088)	1,069
Change in the estimated fair value of contingent consideration	13,960	(2,221)
Loss on extinguishment of debt	2,033	0
Inventory provision	4,691	2,667
Deferred income taxes	(10,706)	0
Other	667	562
Changes in assets and liabilities
Accounts receivable, net	(11,700)	1,485
Inventory	(22,849)	(23,367)
Prepaid expenses and other assets	(7,287)	(5,685)
Accounts payable	1,706	1,511
Accrued expenses	2,055	(11,054)
Deferred revenue	(4,867)	(3,575)
Operating lease liabilities	(6,396)	(5,905)
Contingent consideration liability	(732)	0
Other liabilities	(1,147)	(1,700)
Net cash used in operating activities	(201,613)	(202,645)
Cash flows from investing activities
Purchase of property and equipment	(6,819)	(11,846)
Cash paid for purchase of Apton, net of cash acquired	(102)	0
Purchases of investments	(553,748)	(307,899)
Sales of investments	595	0
Maturities of investments	631,253	355,425
Net cash provided by investing activities	71,179	35,680
Cash flows from financing activities
Proceeds from issuance of common stock under equity offerings, net of issuance costs	189,200	0
Proceeds from issuance of common stock from equity plans	14,383	9,983
Payment of debt issuance costs	(7,325)	0
Payment of contingent consideration	(4,368)	0
Notes payable principal payoff	(1,397)	(1,180)
Net cash provided by financing activities	190,493	8,803
Net increase (decrease) in cash, cash equivalents, and restricted cash	60,059	(158,162)
Cash, cash equivalents, and restricted cash at beginning of period	328,311	465,817
Cash, cash equivalents, and restricted cash at end of period	388,370	307,655
Cash and cash equivalents at end of period	385,648	304,433
Restricted cash at end of period	2,722	3,222
Cash, cash equivalents, and restricted cash at end of period	$ 388,370	$ 307,655

ORGANIZATION AND SIGNIFICANT AC

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES	ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES We are a life science technology company that is designing, developing, and manufacturing advanced sequencing solutions that enable scientists and clinical researchers to improve their understanding of the genome and ultimately, resolve genetically complex problems. Our products and technology under development stem from two highly differentiated core technologies focused on accuracy, quality, and completeness, which include our existing HiFi long-read sequencing technology and our emerging short-read Sequencing by Binding (SBB TM ) technology. Our products address solutions across a broad set of applications including human genomics, plant and animal sciences, infectious disease and microbiology, oncology, and other emerging applications. Our focus is on providing our customers with advanced sequencing solutions with higher throughput and improved workflows that we believe will enable dramatic advancements in routine healthcare. Our customers include academic and governmental research institutions, commercial testing and service laboratories, genome centers, public health labs, hospitals and clinical research institutes, contract research organizations ("CROs"), pharmaceutical companies, and agricultural companies. References in this report to “PacBio,” “we,” “us,” the “Company,” and “our” refer to Pacific Biosciences of California, Inc. and its consolidated subsidiaries. Basis of Presentation and Consolidation Our unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States, or U.S. GAAP, as set forth in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC. The unaudited condensed consolidated financial statements include the accounts of Pacific Biosciences and our wholly owned subsidiaries. Certain information and footnote disclosures typically included in our audited financial statements have been condensed or omitted. The accompanying unaudited condensed consolidated financial statements have been prepared on a consistent basis with the December 31, 2022 audited consolidated financial statements and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state our financial position, results of operations, comprehensive loss, and cash flows for the period, but are not necessarily indicative of the results to be expected for the entire year or any future periods. All intercompany transactions and balances have been eliminated. Certain prior period amounts have been reclassified to conform to current period presentation. The financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2022. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes to the financial statements. On an ongoing basis, we evaluate our significant estimates including, but not limited to, the valuation of inventory, the determination of stand-alone selling prices for revenue recognition, the fair value of contingent consideration, the valuation of acquired intangible assets, the fair value of certain equity awards, the useful lives assigned to long-lived assets, the computation of provisions for income taxes, the borrowing rate used in calculating the operating lease right-of-use assets and operating lease liabilities, the probability associated with variable payments under partnership development agreements, and the valuations related to our convertible senior notes. While the extent of the potential impact of the current macroeconomic conditions on our business is highly uncertain, we considered information available related to assumptions and estimates used to determine the results reported and asset valuations as of September 30, 2023. Actual results could differ materially from these estimates. Cash, Cash Equivalents, Restricted Cash and Investments We consider all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents may be comprised of money market funds, certificates of deposit, commercial paper, corporate bonds and notes, and government agencies’ securities. We classify our investments in debt securities as available-for sale and report the investments at fair value in current assets. We evaluate our available-for-sale investments in unrealized loss positions and assess whether the unrealized loss is credit-related. Unrealized gains and losses that are not credit-related are recognized in accumulated other comprehensive loss in stockholders’ equity. Realized gains and losses, expected credit losses, as well as interest income, on available-for-sale securities are also reported in other income (expense), net. The cost used in the determination of gains and losses of securities sold is based on the specific identification method. The cost of marketable securities is adjusted for the amortization of premiums and discounts to expected maturity. Premium and discount amortization is recorded in other income (expense), net. Our investment portfolio at any point in time contains investments in cash deposits, money market funds, commercial paper, corporate debt securities and U.S. government and agency securities with high credit ratings. We have established guidelines regarding diversification and maturities of investments with the objectives of maintaining safety and liquidity, while maximizing yield. Restricted cash includes cash that is not readily available for use in the Company’s operating activities. Restricted cash is primarily comprised of cash pledged under letters of credit. Concentration and Other Risks For the three and nine months ended September 30, 2023, no customer exceeded 10% of total revenue during each of the respective periods. For the three and nine months ended September 30, 2022, one customer accounted for approximately 13% and 11% of total revenue during the period. As of September 30, 2023, 45% of our accounts receivable were from domestic customers, compared to 57% as of December 31, 2022. As of September 30, 2023, no customer represented 10% or greater of our accounts receivable, while one customer represented approximately 10% of our net accounts receivable as of December 31, 2022. Recent Accounting Pronouncements Recently Adopted Accounting Standards In October 2021, the FASB issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU provides specific guidance on how to recognize contract assets and contract liabilities related to revenue contracts with customers acquired in a business combination. This amendment improves comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. We adopted this ASU on January 1, 2023. The adoption of this guidance did not have a material effect on our consolidated financial statements. Significant Accounting Policies There have been no changes to our significant accounting policies as disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

BUSINESS ACQUISITIONS

BUSINESS ACQUISITIONS	9 Months Ended
	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
BUSINESS ACQUISITIONS	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 s hares 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 53,000 Goodwill 53,869 Other assets, current 153 Deferred income tax liability (10,920) Liabilities assumed (2,191) Total consideration transferred $ 94,008 The purchase price allocation is preliminary, primarily due to the pending finalization of the valuation analysis and review of various tax attributes. We continue to collect information regarding certain estimates and assumptions, including potential liabilities and contingencies. We will record adjustments to the fair value of the assets acquired, liabilities assumed and goodwill within the twelve months measurement period, if necessary. We incurred costs related to the Apton acquisition of approximately $9.0 million during the nine months ended September 30, 2023, which are included in merger-related expenses on the Condensed Consolidated Statement of Operations and Comprehensive Loss. 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.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2023
Investments, All Other Investments [Abstract]
FINANCIAL INSTRUMENTS	FINANCIAL INSTRUMENTS Fair Value of Financial Instruments Fair value is the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy established under GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are as follows: • Level 1: quoted prices in active markets for identical assets or liabilities; • Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We consider an active market as one in which transactions for the asset or liability occurs with sufficient frequency and volume to provide pricing information on an ongoing basis. Conversely, we view an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, our non-performance risk, or that of our counterparty, is considered in determining the fair values of liabilities and assets, respectively. We classify our cash deposits and money market funds within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. We classify our investments as Level 2 instruments based on market pricing and other observable inputs. We did not classify any of our investments within Level 3 of the fair value hierarchy. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the entire fair value measurement requires management to make judgments and consider factors specific to the asset or liability. The carrying amount of our accounts receivable, prepaid expenses, other current assets, accounts payable, accrued expenses and other liabilities, current, approximate fair value due to their short maturities. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table sets forth the fair value of our financial assets and liabilities that were measured on a recurring basis (in thousands): September 30, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents $ 196,621 $ 189,027 $ — $ 385,648 $ 137,636 $ 187,453 $ — $ 325,089 Investments: Commercial paper — 16,771 — 16,771 — 127,302 — 127,302 Corporate debt securities — 75,853 — 75,853 — 49,491 — 49,491 U.S. government & agency securities — 289,517 — 289,517 — 270,436 — 270,436 Total investments — 382,141 — 382,141 — 447,229 — 447,229 Short-term restricted cash 300 — — 300 300 — — 300 Long-term restricted cash 2,422 — — 2,422 2,922 — — 2,922 Total assets measured at fair value $ 199,343 $ 571,168 $ — $ 770,511 $ 140,858 $ 634,682 $ — $ 775,540 Liabilities Contingent consideration $ — $ — $ 18,450 $ 18,450 $ — $ — $ 172,094 $ 172,094 Total liabilities measured at fair value $ — $ — $ 18,450 $ 18,450 $ — $ — $ 172,094 $ 172,094 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. On September 20, 2023, we achieved the commercial milestone in connection with the acquisition of Omniome. Consequently, former Omniome securityholders were entitled to receive as milestone consideration, among other things, an aggregate of approximately $100.9 million in cash and approximately 9.0 million shares of our common stock, representing $95.9 million divided by the volume-weighted average of the trading prices of our common stock for the twenty two Following the achievement of the commercial milestone, $5.1 million of the contingent consideration was paid during the three and nine months ended September 30, 2023. Additionally, as the shares payable pursuant to the commercial milestone became fixed, and the contingency was resolved, the value attributable to the shares to be issued of $84.8 million was reclassified to additional paid-in capital on the Condensed Consolidated Balance Sheets. Such shares were issued to the former Omniome securityholders and the remainder of the cash payment was in October 2023. The remaining liability balance attributable to the achievement of the commercial milestone in September 2023 of $96.2 million is included in contingent consideration liability, current, in the Condensed Consolidated Balance Sheets as of September 30, 2023. As a result of the achievement of the milestone, the contingent consideration liability incurred in connection with the acquisition of Omniome was no longer considered a Level 3 liability at September 30, 2023. There were no other transfers between Level 1, Level 2, or Level 3 assets or liabilities reported at fair value on a recurring basis for the nine months ended September 30, 2023, and our valuation techniques did not change compared to the prior year. Changes in the estimated fair value of the contingent consideration liability for the nine months ended September 30, 2023 were as follows (in thousands): Level 3 Beginning balance as of December 31, 2022 $ 172,094 Additions 18,450 Change in estimated fair value 13,960 Achievement of milestone $ (186,054) Ending balance as of September 30, 2023 $ 18,450 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. The following tables summarize our cash, cash equivalents and investments (in thousands): As of September 30, 2023 Amortized Gross Gross Fair Cash and cash equivalents 385,619 29 — 385,648 Investments: Commercial paper 16,771 — — 16,771 Corporate debt securities 76,161 3 (311) 75,853 U.S. government & agency securities 291,078 7 (1,568) 289,517 Total investments 384,010 10 (1,879) 382,141 Total cash, cash equivalents and investments $ 769,629 $ 39 $ (1,879) $ 767,789 Short-term restricted cash $ 300 $ — $ — $ 300 Long-term restricted cash $ 2,422 $ — $ — $ 2,422 As of December 31, 2022 Amortized Gross Gross Fair Cash and cash equivalents 325,144 6 (61) 325,089 Investments: Commercial paper 127,626 9 (333) 127,302 Corporate debt securities 49,998 — (507) 49,491 U.S. government & agency securities 274,315 1 (3,880) 270,436 Total investments 451,939 10 (4,720) 447,229 Total cash, cash equivalents and investments $ 777,083 $ 16 $ (4,781) $ 772,318 Short-term restricted cash $ 300 $ — $ — $ 300 Long-term restricted cash $ 2,922 $ — $ — $ 2,922 The following table summarizes the contractual maturities of our cash equivalents and available-for-sale investments, excluding money market funds, as of September 30, 2023 (in thousands): Fair Value Due in one year or less $ 498,366 Due after one year through five years 72,802 Total $ 571,168 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 $9.2 million and $25.0 million for the three and nine months ended September 30, 2023, respectively, and $2.8 million and $4.3 million for the three and nine months ended September 30, 2022, respectively.

BALANCE SHEET COMPONENTS

BALANCE SHEET COMPONENTS	9 Months Ended
	Sep. 30, 2023
Balance Sheet Components [Abstract]
BALANCE SHEET COMPONENTS	BALANCE SHEET COMPONENTS Inventory, net Our inventory, net, consisted of the following components (in thousands): September 30, December 31, Purchased materials $ 23,333 $ 24,139 Work in process 27,883 14,062 Finished goods 17,040 12,180 Inventory, net $ 68,256 $ 50,381 Intangible Assets and Goodwill Intangible assets include acquired in-process research and development ("IPR&D") of $53.0 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 will not be amortized, but instead will be tested for impairment annually and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. Upon completion of the development, we will begin to amortize the asset over the life of the product or record an impairment charge if the asset is determined to be impaired. In addition to IPR&D, definite-lived intangible assets included the following (in thousands, except years): As of September 30, 2023 As of December 31, 2022 Estimated Gross Accumulated Net Gross Accumulated Net Developed technology 15 $ 411,179 $ (2,341) $ 408,838 $ 11,179 $ (1,039) $ 10,140 Customer relationships 2 360 (360) — 360 (255) 105 Total $ 411,539 $ (2,701) $ 408,838 $ 11,539 $ (1,294) $ 10,245 The developed technology as of September 30, 2023 includes the completed IPR&D from the Omniome acquisition that was completed in September 2023. The estimated future amortization expense of intangible assets with definite lives is as follows (in thousands): Remainder of 2023 $ 6,854 2024 27,412 2025 27,412 2026 27,412 2027 27,412 2028 and thereafter 292,337 Total $ 408,838 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. 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. We had goodwill of $463.8 million as of September 30, 2023, which preliminarily increased by $53.9 million, due to the Apton acquisition, of which $10.9 million relates to a deferred income tax liability, as compared to $410.0 million as of December 31, 2022. Goodwill is reviewed for impairment at least annually during the second quarter, or more frequently if an event occurs indicating the potential for impairment. We performed our annual assessment for goodwill impairment in the second quarter of 2023, noting no impairment. Deferred Revenue As of September 30, 2023, we had a total of $27.5 million of deferred revenue, $22.4 million of which was recorded as deferred revenue, current, and primarily relates to future performance obligations under the Amended and Restated Agreement with Invitae Corporation ("Invitae") and deferred service contract revenues. The deferred revenue, non-current balance of $5.1 million primarily relates to future performance obligations under the Amended and Restated Agreement with Invitae and deferred service contract revenues and is scheduled to be recognized in the next 5 years. The deferred revenue, non-current balance includes $3.0 million that was reclassified from deferred revenue, current to deferred revenue, non-current following receipt of a non-cancellable order from Invitae during the nine months ended September 30, 2023 for partial utilization of the available credits, which is expected to be recognized in revenue after 12 months from September 30, 2023. Revenue recorded in the three and nine months ended September 30, 2023 includes $3.7 million and $11.7 million, respectively, that was included in deferred revenue as of December 31, 2022, of which $2.1 million and $4.2 million was included in product revenue recognized from the partial utilization of available credits by Invitae during the three and nine months ended September 30, 2023, respectively. Refer to Note 3 – Invitae Collaboration , in Part II, Item 8 of the Annual Report on Form 10-K for the year ended December 31, 2022 for more information . Product Warranties We generally provide a one-year warranty on instruments. In addition, we provide a limited warranty on consumables. At the time revenue is recognized, an accrual is established for estimated warranty costs based on historical experience as well as anticipated product performance. We periodically review the warranty reserve for adequacy and adjust the warranty accrual, if necessary, based on actual experience and estimated costs to be incurred. Warranty expense is recorded as a component of cost of product revenue. There were no material changes in estimates for the periods presented below. Changes in the reserve for product warranties were as follows for the periods indicated (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Balance at beginning of period $ 2,862 $ 1,609 $ 1,651 $ 594 Additions charged to cost of product revenue 2,825 779 5,675 2,644 Repairs and replacements (1,722) (622) (3,361) (1,472) Balance at end of period $ 3,965 $ 1,766 $ 3,965 $ 1,766 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 24 th month and before the 43 rd 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 September 30, 2023, the carrying value of term loans outstanding was $0.9 million, recorded as part of other liabilities, current on the Condensed Consolidated Balance Sheet. The interest expense was $0.1 million and $0.2 million for the three and nine months ended September 30, 2023, which was included as part of interest expense in the Condensed Consolidated Statement of Operations and Comprehensive Loss. The following table presents the future principal payments on the term loans (in thousands): Remainder of 2023 $ 444 2024 490 Total $ 934

CONVERTIBLE SENIOR NOTES

CONVERTIBLE SENIOR NOTES	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
CONVERTIBLE SENIOR NOTES	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 nine months ended September 30, 2023, which represents the difference between the fair value and the principal amount of the 2030 Notes of the debt at the modification date, plus unamortized debt issuance costs of $1.5 million related to the respective portion of the 2028 Notes. We incurred issuance costs related to the 2030 Notes of approximately $7.3 million, which were recorded as debt issuance costs and are presented as a reduction to the 2030 Notes on our Consolidated Balance Sheets and are amortized to interest expense using the effective interest method over the term of the 2030 Notes, resulting in an effective interest rate of 1.6%. We also paid accrued but unpaid interest of $2.5 million on the 2028 Notes in connection with the Exchange Transaction on June 30, 2023. We did not receive any cash proceeds from the Exchange Transaction. In exchange for issuing the 2030 Notes pursuant to the Exchange Transaction, we received and cancelled the exchanged 2028 Notes. Following the closing of the Exchange Transaction, $459.0 million in aggregate principal amount of 2028 Notes remained outstanding with terms unchanged. The net carrying amount of the liability for the 2030 Notes is included as convertible senior notes, net, non-current in the Condensed Consolidated Balance Sheets as follows (in thousands): September 30, December 31, Principal amount $ 441,000 $ — Unamortized debt premium 542 — Unamortized debt issuance costs (7,093) — Net carrying amount $ 434,449 $ — For the three and nine months ended September 30, 2023 and 2022, interest expense for the 2030 Notes was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Contractual interest expense $ 1,516 $ — $ 1,516 $ — Amortization of debt issuance costs 229 — 229 — Total interest expense $ 1,745 $ — $ 1,745 $ — As of September 30, 2023, the estimated fair value (Level 2) of the 2030 Notes was $356.6 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. 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. We incurred issuance costs related to the 2028 Notes of approximately $4.5 million, which were recorded as debt issuance costs and are presented as a reduction to the 2028 Notes on our Consolidated Balance Sheets and are amortized to interest expense using the effective interest method over the term of the 2028 Notes, resulting in an effective interest rate of 1.6%. The net carrying amount of the liability for the 2028 Notes is included as convertible senior notes, net, non-current in the Condensed Consolidated Balance Sheets as follows (in thousands): September 30, December 31, Principal amount $ 459,000 $ 900,000 Unamortized debt issuance costs (1,453) (3,317) Net carrying amount $ 457,547 $ 896,683 For the three and nine months ended September 30, 2023 and 2022, interest expense for the 2028 Notes was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Contractual interest expense $ 1,721 $ 3,375 $ 8,415 $ 10,125 Amortization of debt issuance costs 80 154 392 462 Total interest expense $ 1,801 $ 3,529 $ 8,807 $ 10,587

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES The Company has entered into various operating lease agreements, primarily relating to our corporate offices. See Note 8 – Commitments and Contingencies , subsection titled “Leases”, in Part II, Item 8 of the Annual Report on Form 10-K for the year ended December 31, 2022 for information regarding the Company’s maturity of lease liabilities under its lease agreements. Contingencies We may become involved in legal proceedings, claims and assessments from time to time in the ordinary course of business. We accrue liabilities for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. We do not believe that the ultimate outcome of any such pending matters is probable or reasonably estimable, or that these matters will have a material adverse effect on our business; however, the results of litigation and claims are inherently unpredictable. Regardless of the outcome, litigation can have an adverse impact on us because of litigation and settlement costs, diversion of management resources, and other factors. Please see subsection titled Legal Proceedings, in Part II, Item 1 of this Quarterly Report on Form 10-Q. Indemnification Pursuant to Delaware law and agreements entered into with each of our directors and officers, we may have obligations, under certain circumstances, to hold harmless and indemnify each of our directors and officers against losses suffered or incurred by the indemnified party in connection with their service to us, and judgements, fines, settlements and expenses related to claims arising against such directors and officers to the fullest extent permitted under Delaware law, our bylaws and our certificate of incorporation. We also enter and have entered into indemnification agreements with our directors and officers that may require us to indemnify them against liabilities that arise by reason of their status or service as directors or officers, except as prohibited by applicable law. In addition, we may have obligations to hold harmless and indemnify third parties involved with our fundraising efforts and their respective affiliates, directors, officers, employees, agents or other representatives against any and all losses, claims, damages and liabilities related to claims arising against such parties pursuant to the terms of agreements entered into between such third parties and us in connection with such fundraising efforts. To the extent that any such indemnification obligations apply to the lawsuits described above, any associated expenses incurred are included within the related accrued litigation expense amounts. No additional liability associated with such indemnification obligations has been recorded as of September 30, 2023 and December 31, 2022.

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
STOCKHOLDERS’ EQUITY	STOCKHOLDERS’ EQUITY Underwritten Public Equity Offering In January 2023, we entered into an underwriting agreement, relating to the public offering of 17.5 million shares of our common stock, $0.001 par value per share, at a price to the public of $10.00 per share. Under the terms of the underwriting agreement, we also granted the underwriters a 30-day option to purchase up to an additional 2.6 million shares of our common stock, which was subsequently exercised in full, and the offering, including the sale of shares of common stock subject to the underwriters' option, closed in January 2023. In total, we sold 20.1 million shares of our common stock. We paid a commission equal to 5.75% of the gross proceeds from the sale of shares of our common stock. The total net proceeds to us from the offering after deducting the underwriting discount were approximately $189.7 million, excluding approximately $0.5 million of offering expenses. Refer to Note 10 – Stockholders' Equity , in Part II, Item 8 of the Annual Report on Form 10-K for the year ended December 31, 2022 for more information on the Company's underwritten public equity offerings and private placement of common stock . Equity Plans As of September 30, 2023, the Company had share-based compensation awards outstanding under the 2020 Equity Incentive Plan (the “2020 Plan”), the 2020 Inducement Equity Incentive Plan (the “Inducement Plan”), the 2021 adopted Omniome Equity Incentive Plan of Pacific Biosciences of California, Inc. (the “Omniome Plan”) and the 2010 Employee Stock Purchase Plan, from which we issued equity awards and employee stock. As of September 30, 2023, we had 12.3 million shares remaining and available for future issuance under the 2020 Plan, Inducement Plan, and the Omniome Plan. Shares remaining and available for future issuance reflect shares that may become eligible to vest upon the achievement of maximum targets for certain equity awards. Refer to Note 10 – Stockholders' Equity , in Part II, Item 8 of the Annual Report on Form 10-K for the year ended December 31, 2022 for more information on the Company's equity plans . Stock Options Time-based Stock Options The following table summarizes stock option activity for time-based awards (shares in thousands): Number Weighted Outstanding at December 31, 2022 14,618 $ 10.60 Granted 332 12.11 Exercised (929) 4.70 Canceled (810) 18.05 Outstanding at September 30, 2023 13,211 $ 10.60 Performance-based Stock Options The following table summarizes stock option activity for performance-based awards (shares in thousands): Number Weighted Outstanding at December 31, 2022 258 $ 4.71 Granted — — Exercised (251) 4.71 Canceled (4) 4.71 Outstanding at September 30, 2023 3 $ 4.74 Restricted Stock Units (“RSU”) and Performance Stock Units ("PSU") We issue RSUs for which the respective shares vest when the requisite service period is achieved. We issue PSUs for which the number of shares issuable in the third year of the performance period based on performance relative to specified revenue targets and continued employment through the vesting period. Maximum achievement of the revenue goal under the PSUs will result in up to 200% of the target number of shares subject to the PSUs to become eligible to vest, while not meeting the minimum achievement of the revenue goal under the PSUs will result in no shares subject to the PSUs becoming eligible to vest. The following table summarizes the time-based RSUs and PSUs activity (shares in thousands): Restricted Stock Units (RSU) Performance Stock Units (PSU) Weighted average grant date RSU PSU Outstanding at December 31, 2022 8,535 — $ 15.16 $ — Granted 6,970 564 9.71 9.43 Vested (2,538) — 14.19 — Forfeited (1,008) (23) 14.73 9.43 Outstanding at September 30, 2023 11,959 541 $ 12.23 $ 9.43 Employee Stock Purchase Plan (“ESPP”) Shares issued under our ESPP wer e 1,735,058 and 1,878,168 during the nine months ended September 30, 2023 and 2022, respectively. In February 2023, an additional 4.0 million shares were reserved under the ESPP. As of September 30, 2023, 12.2 million shares of our common stock remain available for issuance under our ESPP. Share-Based Compensation The following table summarizes share-based compensation expense (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 1,125 $ 934 $ 4,251 $ 3,680 Research and development 6,182 7,519 18,310 24,232 Sales, general and administrative 12,384 10,483 32,973 32,746 Total share-based compensation expense $ 19,691 $ 18,936 $ 55,534 $ 60,658 Determining Fair Value We estimate the fair value of stock options granted using the Black-Scholes valuation method and a single option award approach. When determining the current share prices underlying the stock options for calculating the grant-date fair value, we reference the observable market prices of our stock. This fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. The fair market value of RSUs and PSUs granted is the closing price of our shares on the date of grant and is generally recognized as compensation expense on a straight-line basis over the respective vesting period. For shares purchased under our ESPP, we estimate the grant-date fair value, and the resulting share-based compensation expense, using the Black-Scholes option-pricing model. We estimate forfeitures of stock options, RSUs and shares purchased under our ESPP which is utilized to determine the compensation expense to be recorded over the requisite service period. • Expected Term - The expected term used in the Black-Scholes valuation method represents the period that the stock options are expected to be outstanding and is determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock options and vesting schedules. • Expected Volatility - The expected volatility used in the Black-Scholes valuation method is derived from the implied volatility related to our share price over the expected term. • Expected Dividend - We have never paid dividends on our shares and, accordingly, the dividend yield percentage is zero for all periods. • Risk-Free Interest Rate - The risk-free interest rate used in the Black-Scholes valuation method is the implied yield currently available on U.S. Treasury constant maturities issued with a term equivalent to the expected terms. The fair value of employee stock options was estimated using the following assumptions: Nine Months Ended September 30, 2023 2022 Expected term in years 4.9 4.6 Expected volatility 78% 70% — 76% Risk-free interest rate 3.73% - 4.21% 0.41% — 3.66% Dividend yield — — Weighted average grant date fair value per share $7.89 $5.93 The fair value of shares to be issued under the ESPP was estimated using the following assumptions: Nine Months Ended September 30, 2023 2022 Expected term in years 0.5 — 2.0 0.5 — 2.0 Expected volatility 79% — 97% 70% — 97% Risk-free interest rate 4.87% — 5.47% 0.60% — 3.51% Dividend yield — — Weighted average grant date fair value per share $5.34 $4.28

NET LOSS PER SHARE

NET LOSS PER SHARE	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
NET LOSS PER SHARE	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 (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Numerator: Net loss $ (66,869) $ (76,971) $ (224,717) $ (229,864) Denominator: Basic Weighted average shares used in computing basic net loss 255,001 225,123 249,082 223,981 Basic net loss per share $ (0.26) $ (0.34) $ (0.90) $ (1.03) Diluted Weighted average shares used in computing diluted net loss per share 255,001 225,123 249,082 223,981 Diluted net loss per share $ (0.26) $ (0.34) $ (0.90) $ (1.03) The following shares issuable upon conversion of the convertible senior notes and outstanding equity awards were excluded from the computation of diluted net loss per share for the periods presented because the effect of including such shares would have been antidilutive (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Shares issuable upon conversion of convertible senior notes 31,063 20,690 31,063 20,690 Equity Awards 28,100 28,087 28,100 28,087

REVENUE

REVENUE	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE A summary of our revenue by geographic location is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Americas $ 28,978 $ 16,743 $ 71,480 $ 57,547 Europe, Middle East and Africa 10,994 5,997 29,594 17,432 Asia-Pacific 15,719 9,571 41,090 25,972 Total $ 55,691 $ 32,311 $ 142,164 $ 100,951 A summary of our revenue by category is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Instrument revenue $ 34,694 $ 11,442 $ 85,317 $ 42,611 Consumable revenue 16,868 16,067 44,554 43,317 Product revenue 51,562 27,509 129,871 85,928 Service and other revenue 4,129 4,802 12,293 15,023 Total revenue $ 55,691 $ 32,311 $ 142,164 $ 100,951

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net loss	$ (66,869)	$ (76,971)	$ (224,717)	$ (229,864)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
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

ORGANIZATION AND SIGNIFICANT _2

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Consolidation	Our unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States, or U.S. GAAP, as set forth in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC. The unaudited condensed consolidated financial statements include the accounts of Pacific Biosciences and our wholly owned subsidiaries. Certain information and footnote disclosures typically included in our audited financial statements have been condensed or omitted. The accompanying unaudited condensed consolidated financial statements have been prepared on a consistent basis with the December 31, 2022 audited consolidated financial statements and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state our financial position, results of operations, comprehensive loss, and cash flows for the period, but are not necessarily indicative of the results to be expected for the entire year or any future periods. All intercompany transactions and balances have been eliminated. Certain prior period amounts have been reclassified to conform to current period presentation.
Use of Estimates	The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes to the financial statements. On an ongoing basis, we evaluate our significant estimates including, but not limited to, the valuation of inventory, the determination of stand-alone selling prices for revenue recognition, the fair value of contingent consideration, the valuation of acquired intangible assets, the fair value of certain equity awards, the useful lives assigned to long-lived assets, the computation of provisions for income taxes, the borrowing rate used in calculating the operating lease right-of-use assets and operating lease liabilities, the probability associated with variable payments under partnership development agreements, and the valuations related to our convertible senior notes. While the extent of the potential impact of the current macroeconomic conditions on our business is highly uncertain, we considered information available related to assumptions and estimates used to determine the results reported and asset valuations as of September 30, 2023. Actual results could differ materially from these estimates.
Cash, Cash Equivalents	We consider all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents may be comprised of money market funds, certificates of deposit, commercial paper, corporate bonds and notes, and government agencies’ securities.
Investments	We classify our investments in debt securities as available-for sale and report the investments at fair value in current assets. We evaluate our available-for-sale investments in unrealized loss positions and assess whether the unrealized loss is credit-related. Unrealized gains and losses that are not credit-related are recognized in accumulated other comprehensive loss in stockholders’ equity. Realized gains and losses, expected credit losses, as well as interest income, on available-for-sale securities are also reported in other income (expense), net. The cost used in the determination of gains and losses of securities sold is based on the specific identification method. The cost of marketable securities is adjusted for the amortization of premiums and discounts to expected maturity. Premium and discount amortization is recorded in other income (expense), net. Our investment portfolio at any point in time contains investments in cash deposits, money market funds, commercial paper, corporate debt securities and U.S. government and agency securities with high credit ratings. We have established guidelines regarding diversification and maturities of investments with the objectives of maintaining safety and liquidity, while maximizing yield.
Restricted Cash	Restricted cash includes cash that is not readily available for use in the Company’s operating activities. Restricted cash is primarily comprised of cash pledged under letters of credit.
Recent Accounting Pronouncements	Recently Adopted Accounting Standards In October 2021, the FASB issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU provides specific guidance on how to recognize contract assets and contract liabilities related to revenue contracts with customers acquired in a business combination. This amendment improves comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. We adopted this ASU on January 1, 2023. The adoption of this guidance did not have a material effect on our consolidated financial statements.
Fair Value of Financial Instruments	We consider an active market as one in which transactions for the asset or liability occurs with sufficient frequency and volume to provide pricing information on an ongoing basis. Conversely, we view an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, our non-performance risk, or that of our counterparty, is considered in determining the fair values of liabilities and assets, respectively. We classify our cash deposits and money market funds within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. We classify our investments as Level 2 instruments based on market pricing and other observable inputs. We did not classify any of our investments within Level 3 of the fair value hierarchy. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the entire fair value measurement requires management to make judgments and consider factors specific to the asset or liability. The carrying amount of our accounts receivable, prepaid expenses, other current assets, accounts payable, accrued expenses and other liabilities, current, approximate fair value due to their short maturities.

BUSINESS ACQUISITIONS (Tables)

BUSINESS ACQUISITIONS (Tables)	9 Months Ended
	Sep. 30, 2023
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 53,000 Goodwill 53,869 Other assets, current 153 Deferred income tax liability (10,920) Liabilities assumed (2,191) Total consideration transferred $ 94,008

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2023
Investments, All Other Investments [Abstract]
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis	The following table sets forth the fair value of our financial assets and liabilities that were measured on a recurring basis (in thousands): September 30, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents $ 196,621 $ 189,027 $ — $ 385,648 $ 137,636 $ 187,453 $ — $ 325,089 Investments: Commercial paper — 16,771 — 16,771 — 127,302 — 127,302 Corporate debt securities — 75,853 — 75,853 — 49,491 — 49,491 U.S. government & agency securities — 289,517 — 289,517 — 270,436 — 270,436 Total investments — 382,141 — 382,141 — 447,229 — 447,229 Short-term restricted cash 300 — — 300 300 — — 300 Long-term restricted cash 2,422 — — 2,422 2,922 — — 2,922 Total assets measured at fair value $ 199,343 $ 571,168 $ — $ 770,511 $ 140,858 $ 634,682 $ — $ 775,540 Liabilities Contingent consideration $ — $ — $ 18,450 $ 18,450 $ — $ — $ 172,094 $ 172,094 Total liabilities measured at fair value $ — $ — $ 18,450 $ 18,450 $ — $ — $ 172,094 $ 172,094
Changes in the Estimated Fair Value of Contingent Consideration Liability	Changes in the estimated fair value of the contingent consideration liability for the nine months ended September 30, 2023 were as follows (in thousands): Level 3 Beginning balance as of December 31, 2022 $ 172,094 Additions 18,450 Change in estimated fair value 13,960 Achievement of milestone $ (186,054) Ending balance as of September 30, 2023 $ 18,450
Summary of Cash, Cash Equivalents and Investments	The following tables summarize our cash, cash equivalents and investments (in thousands): As of September 30, 2023 Amortized Gross Gross Fair Cash and cash equivalents 385,619 29 — 385,648 Investments: Commercial paper 16,771 — — 16,771 Corporate debt securities 76,161 3 (311) 75,853 U.S. government & agency securities 291,078 7 (1,568) 289,517 Total investments 384,010 10 (1,879) 382,141 Total cash, cash equivalents and investments $ 769,629 $ 39 $ (1,879) $ 767,789 Short-term restricted cash $ 300 $ — $ — $ 300 Long-term restricted cash $ 2,422 $ — $ — $ 2,422 As of December 31, 2022 Amortized Gross Gross Fair Cash and cash equivalents 325,144 6 (61) 325,089 Investments: Commercial paper 127,626 9 (333) 127,302 Corporate debt securities 49,998 — (507) 49,491 U.S. government & agency securities 274,315 1 (3,880) 270,436 Total investments 451,939 10 (4,720) 447,229 Total cash, cash equivalents and investments $ 777,083 $ 16 $ (4,781) $ 772,318 Short-term restricted cash $ 300 $ — $ — $ 300 Long-term restricted cash $ 2,922 $ — $ — $ 2,922 The following table summarizes the contractual maturities of our cash equivalents and available-for-sale investments, excluding money market funds, as of September 30, 2023 (in thousands): Fair Value Due in one year or less $ 498,366 Due after one year through five years 72,802 Total $ 571,168

BALANCE SHEET COMPONENTS (Table

BALANCE SHEET COMPONENTS (Tables)	9 Months Ended
	Sep. 30, 2023
Balance Sheet Components [Abstract]
Components of Inventory	Our inventory, net, consisted of the following components (in thousands): September 30, December 31, Purchased materials $ 23,333 $ 24,139 Work in process 27,883 14,062 Finished goods 17,040 12,180 Inventory, net $ 68,256 $ 50,381
Schedule of Definite-lived Intangible Assets from Business Acquisitions	In addition to IPR&D, definite-lived intangible assets included the following (in thousands, except years): As of September 30, 2023 As of December 31, 2022 Estimated Gross Accumulated Net Gross Accumulated Net Developed technology 15 $ 411,179 $ (2,341) $ 408,838 $ 11,179 $ (1,039) $ 10,140 Customer relationships 2 360 (360) — 360 (255) 105 Total $ 411,539 $ (2,701) $ 408,838 $ 11,539 $ (1,294) $ 10,245
Estimated Future Amortization Expense of Acquisition-Related Intangible Assets with Definite Lives	The estimated future amortization expense of intangible assets with definite lives is as follows (in thousands): Remainder of 2023 $ 6,854 2024 27,412 2025 27,412 2026 27,412 2027 27,412 2028 and thereafter 292,337 Total $ 408,838
Changes in Reserve for Product Warranties	Changes in the reserve for product warranties were as follows for the periods indicated (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Balance at beginning of period $ 2,862 $ 1,609 $ 1,651 $ 594 Additions charged to cost of product revenue 2,825 779 5,675 2,644 Repairs and replacements (1,722) (622) (3,361) (1,472) Balance at end of period $ 3,965 $ 1,766 $ 3,965 $ 1,766
Future Principal Payments, Fiscal Year Maturity	The following table presents the future principal payments on the term loans (in thousands): Remainder of 2023 $ 444 2024 490 Total $ 934

CONVERTIBLE SENIOR NOTES (Table

CONVERTIBLE SENIOR NOTES (Tables)	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Schedule of Net Carrying Amount	The net carrying amount of the liability for the 2030 Notes is included as convertible senior notes, net, non-current in the Condensed Consolidated Balance Sheets as follows (in thousands): September 30, December 31, Principal amount $ 441,000 $ — Unamortized debt premium 542 — Unamortized debt issuance costs (7,093) — Net carrying amount $ 434,449 $ — 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): September 30, December 31, Principal amount $ 459,000 $ 900,000 Unamortized debt issuance costs (1,453) (3,317) Net carrying amount $ 457,547 $ 896,683
Schedule of Interest Expense	For the three and nine months ended September 30, 2023 and 2022, interest expense for the 2030 Notes was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Contractual interest expense $ 1,516 $ — $ 1,516 $ — Amortization of debt issuance costs 229 — 229 — Total interest expense $ 1,745 $ — $ 1,745 $ — For the three and nine months ended September 30, 2023 and 2022, interest expense for the 2028 Notes was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Contractual interest expense $ 1,721 $ 3,375 $ 8,415 $ 10,125 Amortization of debt issuance costs 80 154 392 462 Total interest expense $ 1,801 $ 3,529 $ 8,807 $ 10,587

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Stock Option Activity	The following table summarizes stock option activity for time-based awards (shares in thousands): Number Weighted Outstanding at December 31, 2022 14,618 $ 10.60 Granted 332 12.11 Exercised (929) 4.70 Canceled (810) 18.05 Outstanding at September 30, 2023 13,211 $ 10.60 The following table summarizes stock option activity for performance-based awards (shares in thousands): Number Weighted Outstanding at December 31, 2022 258 $ 4.71 Granted — — Exercised (251) 4.71 Canceled (4) 4.71 Outstanding at September 30, 2023 3 $ 4.74
Summary of Time-Based RSUs Activity	The following table summarizes the time-based RSUs and PSUs activity (shares in thousands): Restricted Stock Units (RSU) Performance Stock Units (PSU) Weighted average grant date RSU PSU Outstanding at December 31, 2022 8,535 — $ 15.16 $ — Granted 6,970 564 9.71 9.43 Vested (2,538) — 14.19 — Forfeited (1,008) (23) 14.73 9.43 Outstanding at September 30, 2023 11,959 541 $ 12.23 $ 9.43
Schedule of Stock-Based Compensation Expense	The following table summarizes share-based compensation expense (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 1,125 $ 934 $ 4,251 $ 3,680 Research and development 6,182 7,519 18,310 24,232 Sales, general and administrative 12,384 10,483 32,973 32,746 Total share-based compensation expense $ 19,691 $ 18,936 $ 55,534 $ 60,658
Schedule of Fair Value of Employee Stock Options	The fair value of employee stock options was estimated using the following assumptions: Nine Months Ended September 30, 2023 2022 Expected term in years 4.9 4.6 Expected volatility 78% 70% — 76% Risk-free interest rate 3.73% - 4.21% 0.41% — 3.66% Dividend yield — — Weighted average grant date fair value per share $7.89 $5.93
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: Nine Months Ended September 30, 2023 2022 Expected term in years 0.5 — 2.0 0.5 — 2.0 Expected volatility 79% — 97% 70% — 97% Risk-free interest rate 4.87% — 5.47% 0.60% — 3.51% Dividend yield — — Weighted average grant date fair value per share $5.34 $4.28

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Loss Per Share	The following table presents the calculation of the basic and diluted net loss per share amounts presented in the Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Numerator: Net loss $ (66,869) $ (76,971) $ (224,717) $ (229,864) Denominator: Basic Weighted average shares used in computing basic net loss 255,001 225,123 249,082 223,981 Basic net loss per share $ (0.26) $ (0.34) $ (0.90) $ (1.03) Diluted Weighted average shares used in computing diluted net loss per share 255,001 225,123 249,082 223,981 Diluted net loss per share $ (0.26) $ (0.34) $ (0.90) $ (1.03)
Antidilutive Shares Excluded From Computation of Diluted Net Loss Per Share	The following shares issuable upon conversion of the convertible senior notes and outstanding equity awards were excluded from the computation of diluted net loss per share for the periods presented because the effect of including such shares would have been antidilutive (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Shares issuable upon conversion of convertible senior notes 31,063 20,690 31,063 20,690 Equity Awards 28,100 28,087 28,100 28,087

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Revenue by Geographic Location	A summary of our revenue by geographic location is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Americas $ 28,978 $ 16,743 $ 71,480 $ 57,547 Europe, Middle East and Africa 10,994 5,997 29,594 17,432 Asia-Pacific 15,719 9,571 41,090 25,972 Total $ 55,691 $ 32,311 $ 142,164 $ 100,951
Summary of Revenue by Category	A summary of our revenue by category is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Instrument revenue $ 34,694 $ 11,442 $ 85,317 $ 42,611 Consumable revenue 16,868 16,067 44,554 43,317 Product revenue 51,562 27,509 129,871 85,928 Service and other revenue 4,129 4,802 12,293 15,023 Total revenue $ 55,691 $ 32,311 $ 142,164 $ 100,951

ORGANIZATION AND SIGNIFICANT _3

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Customer Concentration Risk	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Sales Revenue, Net | Customer One
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	13%		11%
Accounts Receivable | Domestic Customers
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage		45%		57%

BUSINESS ACQUISITIONS (Details)

BUSINESS ACQUISITIONS (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Aug. 02, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Business Acquisition [Line Items]
Contingent consideration		$ 18,450		$ 18,450		$ 172,094
Merger-related expenses		8,979	$ 0	8,979	$ 0
Issuance of common stock in connection with liquidity event bonus plan		$ 2,111		$ 2,111
Common Stock
Business Acquisition [Line Items]
Issuance of common stock in acquisition (in shares)		6,121,000		6,121,000
Issuance of common stock in connection with liquidity event bonus plan (in shares)		169,000		169,000
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
Merger-related expenses		$ 9,000		$ 9,000
Merger-related expenses				2,800
Issuance of common stock in connection with liquidity event bonus plan				2,100
Increase in goodwill				$ 53,900
In-process research and development	$ 53,000
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

BUSINESS ACQUISITIONS - Schedul

BUSINESS ACQUISITIONS - Schedule of Business Acquisition (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Aug. 02, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill	$ 463,843		$ 409,974
Apton
Business Acquisition [Line Items]
Cash and cash equivalents		$ 97
In-process research and development		53,000
Goodwill		53,869
Other assets, current		153
Deferred income tax liability	$ (10,900)	(10,920)
Liabilities assumed		(2,191)
Total consideration transferred		$ 94,008

FINANCIAL INSTRUMENTS - Summary

FINANCIAL INSTRUMENTS - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 385,648	$ 325,089
Short-term restricted cash	300	300
Long-term restricted cash	2,422	2,922
Total assets measured at fair value	770,511	775,540
Liabilities
Contingent consideration	18,450	172,094
Total liabilities measured at fair value	18,450	172,094
Investments:
Assets
Investments:	382,141	447,229
Commercial paper
Assets
Investments:	16,771	127,302
Corporate debt securities
Assets
Investments:	75,853	49,491
U.S. government & agency securities
Assets
Investments:	289,517	270,436
Level 1
Assets
Cash and cash equivalents	196,621	137,636
Short-term restricted cash	300	300
Long-term restricted cash	2,422	2,922
Total assets measured at fair value	199,343	140,858
Liabilities
Contingent consideration	0	0
Total liabilities measured at fair value	0	0
Level 1 | Investments:
Assets
Investments:	0	0
Level 1 | Commercial paper
Assets
Investments:	0	0
Level 1 | Corporate debt securities
Assets
Investments:	0	0
Level 1 | U.S. government & agency securities
Assets
Investments:	0	0
Level 2
Assets
Cash and cash equivalents	189,027	187,453
Short-term restricted cash	0	0
Long-term restricted cash	0	0
Total assets measured at fair value	571,168	634,682
Liabilities
Contingent consideration	0	0
Total liabilities measured at fair value	0	0
Level 2 | Investments:
Assets
Investments:	382,141	447,229
Level 2 | Commercial paper
Assets
Investments:	16,771	127,302
Level 2 | Corporate debt securities
Assets
Investments:	75,853	49,491
Level 2 | U.S. government & agency securities
Assets
Investments:	289,517	270,436
Level 3
Assets
Cash and cash equivalents	0	0
Short-term restricted cash	0	0
Long-term restricted cash	0	0
Total assets measured at fair value	0	0
Liabilities
Contingent consideration	18,450	172,094
Total liabilities measured at fair value	18,450	172,094
Level 3 | Investments:
Assets
Investments:	0	0
Level 3 | Commercial paper
Assets
Investments:	0	0
Level 3 | Corporate debt securities
Assets
Investments:	0	0
Level 3 | U.S. government & agency securities
Assets
Investments:	$ 0	$ 0

FINANCIAL INSTRUMENTS - Narrati

FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands, shares in Millions			3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 20, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Financial Instruments [Line Items]
Issuance of common stock in acquisition			$ 76,642		$ 76,642
Shares issuable following milestone achievement			84,761		84,761
Contingent consideration liability, current	$ 96,193		96,193		96,193		$ 172,094
Investment income, net			9,200	$ 2,800	25,000	$ 4,300
Additional Paid-in Capital
Financial Instruments [Line Items]
Issuance of common stock in acquisition			76,636		76,636
Shares issuable following milestone achievement			84,761		84,761
Omniome, Inc
Financial Instruments [Line Items]
Cash payments		$ 100,900
Issuance of common stock in acquisition (in shares)		9
Issuance of common stock in acquisition		$ 95,900
Average trading period		20 days
Trading period prior to achievement of milestone		2 days
Milestone revenue			5,100		5,100
Contingent consideration liability, current	96,200		$ 96,200		$ 96,200
Omniome, Inc | Additional Paid-in Capital
Financial Instruments [Line Items]
Shares issuable following milestone achievement	$ 84,800
Omniome, Inc | Common Stock
Financial Instruments [Line Items]
Issuance of common stock in acquisition		$ 100,000
Omniome, Inc | Employee Stock Option
Financial Instruments [Line Items]
Issuance of common stock in acquisition		$ 4,100

FINANCIAL INSTRUMENTS - Changes

FINANCIAL INSTRUMENTS - Changes in Estimated Fair Value of Contingent Consideration (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 172,094
Additions	18,450
Change in estimated fair value	13,960
Achievement of milestone	(186,054)
Ending balance	$ 18,450

FINANCIAL INSTRUMENTS - Summa_2

FINANCIAL INSTRUMENTS - Summary of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 769,629	$ 777,083
Gross unrealized gains	39	16
Gross unrealized losses	(1,879)	(4,781)
Fair Value	767,789	772,318
Short-term restricted cash	300	300
Long-term restricted cash	2,422	2,922
Cash and cash equivalents
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	385,619	325,144
Gross unrealized gains	29	6
Gross unrealized losses	0	(61)
Fair Value	385,648	325,089
Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	16,771	127,626
Gross unrealized gains	0	9
Gross unrealized losses	0	(333)
Fair Value	16,771	127,302
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	76,161	49,998
Gross unrealized gains	3	0
Gross unrealized losses	(311)	(507)
Fair Value	75,853	49,491
U.S. government & agency securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	291,078	274,315
Gross unrealized gains	7	1
Gross unrealized losses	(1,568)	(3,880)
Fair Value	289,517	270,436
Investments:
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	384,010	451,939
Gross unrealized gains	10	10
Gross unrealized losses	(1,879)	(4,720)
Fair Value	$ 382,141	$ 447,229

FINANCIAL INSTRUMENTS - Summa_3

FINANCIAL INSTRUMENTS - Summary of Contractual Maturities of Cash Equivalents and Available-for-Sale Investments (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Investments, All Other Investments [Abstract]
Due in one year or less	$ 498,366
Due after one year through five years	72,802
Total	$ 571,168

BALANCE SHEET COMPONENTS - Comp

BALANCE SHEET COMPONENTS - Components of Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Balance Sheet Components [Abstract]
Purchased materials	$ 23,333	$ 24,139
Work in process	27,883	14,062
Finished goods	17,040	12,180
Inventory, net	$ 68,256	$ 50,381

BALANCE SHEET COMPONENTS - Narr

BALANCE SHEET COMPONENTS - Narrative (Details) - USD ($)		3 Months Ended			9 Months Ended
	Sep. 30, 2021	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Aug. 02, 2023	Dec. 31, 2022
Balance Sheet Components [Line Items]
Goodwill		$ 463,843,000			$ 463,843,000			$ 409,974,000
Goodwill, impairment loss			$ 0
Deferred revenue		27,500,000			27,500,000
Deferred revenue, current		22,372,000			22,372,000			30,498,000
Deferred revenue, non-current		5,053,000			5,053,000			$ 1,794,000
Revenue recognized		3,700,000			11,700,000
Revenue recognized		55,691,000		$ 32,311,000	$ 142,164,000	$ 100,951,000
Standard product warranty, period					1 year
Product revenue
Balance Sheet Components [Line Items]
Revenue recognized		51,562,000		$ 27,509,000	$ 129,871,000	$ 85,928,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Balance Sheet Components [Line Items]
Remaining performance obligation		$ 5,100,000			$ 5,100,000
Remaining performance obligation period		5 years			5 years
Term Loans
Balance Sheet Components [Line Items]
Short- and long-term debt		$ 900,000			$ 900,000
Interest expense, debt		100,000			200,000
Term Loans | Minimum
Balance Sheet Components [Line Items]
Debt instrument, term loan, elective option	24 months
Term Loans | Maximum
Balance Sheet Components [Line Items]
Debt instrument, term loan, elective option	43 months
Term Loans | Secured Debt
Balance Sheet Components [Line Items]
Debt instrument, term	43 months
Debt instrument, stated interest rate	17%
Percentage of fee to prepay debt	4%
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]
In-process research and development							$ 53,000,000
Goodwill							$ 53,869,000
Increase in goodwill					53,900,000
Invitae Corporation
Balance Sheet Components [Line Items]
Deferred revenue, non-current		3,000,000			3,000,000
Invitae Corporation | Product revenue
Balance Sheet Components [Line Items]
Revenue recognized		$ 2,100,000			$ 4,200,000

BALANCE SHEET COMPONENTS - Defi

BALANCE SHEET COMPONENTS - Definite-lived Intangible Assets from Business Acquisitions (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 411,539	$ 11,539
Accumulated Amortization	(2,701)	(1,294)
Total	$ 408,838	10,245
Developed Technology
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (in years)	15 years
Gross Carrying Amount	$ 411,179	11,179
Accumulated Amortization	(2,341)	(1,039)
Total	$ 408,838	10,140
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (in years)	2 years
Gross Carrying Amount	$ 360	360
Accumulated Amortization	(360)	(255)
Total	$ 0	$ 105

BALANCE SHEET COMPONENTS - Esti

BALANCE SHEET COMPONENTS - Estimated Future Amortization Expense of Acquisition-Related Intangible Assets with Definite Lives (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Balance Sheet Components [Abstract]
Remainder of 2023	$ 6,854
2024	27,412
2025	27,412
2026	27,412
2027	27,412
2028 and thereafter	292,337
Total	$ 408,838	$ 10,245

BALANCE SHEET COMPONENTS - Chan

BALANCE SHEET COMPONENTS - Changes in Reserve for Product Warranties (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Balance at beginning of period	$ 2,862	$ 1,609	$ 1,651	$ 594
Additions charged to cost of product revenue	2,825	779	5,675	2,644
Repairs and replacements	(1,722)	(622)	(3,361)	(1,472)
Balance at end of period	$ 3,965	$ 1,766	$ 3,965	$ 1,766

BALANCE SHEET COMPONENTS - Futu

BALANCE SHEET COMPONENTS - Future Principal Payments (Details) - Term Loans $ in Thousands	Sep. 30, 2023 USD ($)
Long-Term Debt, Fiscal Year Maturity [Abstract]
Remainder of 2023	$ 444
2024	490
Total	$ 934

CONVERTIBLE SENIOR NOTES (Narra

CONVERTIBLE SENIOR NOTES (Narrative) (Details) $ / shares in Units, $ in Thousands			3 Months Ended		9 Months Ended
	Jun. 30, 2023 USD ($) $ / shares	Feb. 16, 2021 USD ($) $ / shares	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Loss on extinguishment of debt			$ 0	$ 0	$ 2,033	$ 0
2028 Convertible Senior Notes
Debt Instrument [Line Items]
Debt issuance costs			1,500		1,500
Aggregate outstanding balance			457,547		457,547		$ 896,683
Principal amount			459,000		459,000		900,000
2028 Convertible Senior Notes | Convertible Debt
Debt Instrument [Line Items]
Debt instrument, stated interest rate		1.50%
Principal amount of notes		$ 900,000	$ 441,000		$ 441,000
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%
Debt redemption, trading days		20 days
Debt redemption, consecutive trading days		30 days
Redemption price, percentage		100%
Debt instrument, debt default, calendar days		360 days
Debt instrument, interest in the event of default		0.25%
Additional interest in the event of default		0.50%
Debt issuance costs		$ 4,500
Debt instrument, effective interest rate			1.60%		1.60%
Aggregate outstanding balance			$ 459,000		$ 459,000
Fair value of convertible debt			358,600		358,600
Principal amount			459,000		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		7,300
Aggregate outstanding balance			434,449		434,449		0
Principal amount			441,000		441,000		$ 0
2030 Convertible Senior Notes | Convertible Debt
Debt Instrument [Line Items]
Debt instrument, stated interest rate	1.375%
Principal amount of notes	$ 441,000		$ 441,000		$ 441,000
Debt instrument, convertible, conversion ratio	0.046512
Conversion price per share (in dollars per share) | $ / shares	$ 21.50
Debt redemption, percentage of conversion price	150%
Debt redemption, trading days	20 days
Debt redemption, consecutive trading days	30 days
Redemption price, percentage	100%
Debt instrument, debt default, calendar days	360 days
Debt instrument, interest in the event of default	0.25%
Additional interest in the event of default	0.50%
Debt instrument, effective interest rate			1.60%		1.60%
Fair value of convertible debt			$ 356,600		$ 356,600
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

CONVERTIBLE SENIOR NOTES (Sched

CONVERTIBLE SENIOR NOTES (Schedule of Net Carrying Amount) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
2030 Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount	$ 441,000	$ 0
Unamortized debt premium	542	0
Unamortized debt issuance costs	(7,093)	0
Total	434,449	0
2028 Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount	459,000	900,000
Unamortized debt issuance costs	(1,453)	(3,317)
Total	$ 457,547	$ 896,683

CONVERTIBLE SENIOR NOTES (Sch_2

CONVERTIBLE SENIOR NOTES (Schedule of Interest Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
2030 Convertible Senior Notes
Debt Instrument [Line Items]
Contractual interest expense	$ 1,516	$ 0	$ 1,516	$ 0
Amortization of debt issuance costs	229	0	229	0
Total interest expense	1,745	0	1,745	0
2028 Convertible Senior Notes
Debt Instrument [Line Items]
Contractual interest expense	1,721	3,375	8,415	10,125
Amortization of debt issuance costs	80	154	392	462
Total interest expense	$ 1,801	$ 3,529	$ 8,807	$ 10,587

STOCKHOLDERS_ EQUITY - Narrativ

STOCKHOLDERS’ EQUITY - Narrative (Details) $ / shares in Units, $ in Millions		1 Months Ended		9 Months Ended
	Jan. 31, 2023 USD ($) $ / shares shares	Feb. 28, 2023 shares	Jan. 31, 2023 USD ($) $ / shares	Sep. 30, 2023 $ / shares shares	Sep. 30, 2022 shares	Dec. 31, 2022 $ / shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Public offering (in shares)	17,500,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.001		$ 0.001	$ 0.001		$ 0.001
Offering share amount maximum (in dollars per share) | $ / shares	$ 10		$ 10
Public offering, option to purchase additional shares, period	30 days
Public offering, option to purchase additional shares (in shares)	2,600,000
Percentage commission of gross proceeds on sale of common stock under at-the-market offering	5.75%
Proceeds from issuance of stock | $	$ 189.7
Offering expenses | $			$ 0.5
Dividend yield				0%	0%
Time Based Restricted Stock Units PSU
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Amount eligible to vest upon achievement of goal				2
Shelf Offering
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares issued (in shares)	20,100,000
2020 Plan, Inducement Plan, And The Omniome Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock remain available for issuance (in shares)				12,300,000
ESPP
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock remain available for issuance (in shares)				12,200,000
Shares issued (in shares)				1,735,058	1,878,168
Additional common stock reserved for issuance (in shares)		4,000,000
Dividend yield				0%	0%

STOCKHOLDERS_ EQUITY - Summary

STOCKHOLDERS’ EQUITY - Summary of Time Based Options (Details) - Time-based stock option shares in Thousands	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Number of shares
Outstanding, beginning (in shares) | shares	14,618
Granted (in shares) | shares	332
Exercised (in shares) | shares	(929)
Canceled (in shares) | shares	(810)
Outstanding, ending (in shares) | shares	13,211
Weighted average exercise price
Beginning, outstanding (in dollars per share) | $ / shares	$ 10.60
Granted (in dollars per share) | $ / shares	12.11
Exercised (in dollars per share) | $ / shares	4.70
Canceled (in dollars per share) | $ / shares	18.05
Ending, outstanding (in dollars per share) | $ / shares	$ 10.60

STOCKHOLDERS_ EQUITY - Summar_2

STOCKHOLDERS’ EQUITY - Summary of Stock Option Activity (Details) - Performance Stock Units (PSU) shares in Thousands	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Number of shares
Outstanding, beginning (in shares) | shares	258
Granted (in shares) | shares	0
Exercised (in shares) | shares	(251)
Canceled (in shares) | shares	(4)
Outstanding, ending (in shares) | shares	3
Weighted average exercise price
Beginning, outstanding (in dollars per share) | $ / shares	$ 4.71
Granted (in dollars per share) | $ / shares	0
Exercised (in dollars per share) | $ / shares	4.71
Canceled (in dollars per share) | $ / shares	4.71
Ending, outstanding (in dollars per share) | $ / shares	$ 4.74

STOCKHOLDERS_ EQUITY - Summar_3

STOCKHOLDERS’ EQUITY - Summary of RSUs and PSUs Activity (Details) shares in Thousands	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Restricted Stock Units (RSU)
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding, beginning (in shares) | shares	8,535
Granted (in shares) | shares	6,970
Vested (in shares) | shares	(2,538)
Forfeited (in shares) | shares	(1,008)
Outstanding, ending (in shares) | shares	11,959
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Beginning, outstanding (in dollars per share) | $ / shares	$ 15.16
Weighted average grant date fair value per share (in dollars per share) | $ / shares	9.71
Vested (in dollars per share) | $ / shares	14.19
Forfeited (in dollars per share) | $ / shares	14.73
Ending, outstanding (in dollars per share) | $ / shares	$ 12.23
Performance Stock Units (PSU)
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding, beginning (in shares) | shares	0
Granted (in shares) | shares	564
Vested (in shares) | shares	0
Forfeited (in shares) | shares	(23)
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	$ 0
Weighted average grant date fair value per share (in dollars per share) | $ / shares	9.43
Vested (in dollars per share) | $ / shares	0
Forfeited (in dollars per share) | $ / shares	9.43
Ending, outstanding (in dollars per share) | $ / shares	$ 9.43

STOCKHOLDERS_ EQUITY - Schedule

STOCKHOLDERS’ EQUITY - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 19,691	$ 18,936	$ 55,534	$ 60,658
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	1,125	934	4,251	3,680
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	6,182	7,519	18,310	24,232
Sales, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 12,384	$ 10,483	$ 32,973	$ 32,746

STOCKHOLDERS_ EQUITY - Schedu_2

STOCKHOLDERS’ EQUITY - Schedule of Fair Value of Employee Stock Options (Details) - $ / shares	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Dividend yield	0%	0%
Options to purchase common stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected term in years	4 years 10 months 24 days	4 years 7 months 6 days
Expected volatility	78%
Risk-free interest rate, minimum	3.73%	0.41%
Risk-free interest rate, maximum	4.21%	3.66%
Dividend yield	0%	0%
Weighted average grant date fair value per share (in dollars per share)	$ 7.89	$ 5.93
Options to purchase common stock | Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility		70%
Options to purchase common stock | Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility		76%

STOCKHOLDERS_ EQUITY - Schedu_3

STOCKHOLDERS’ EQUITY - Schedule of Fair Value of Employee Stock Purchase Plan (Details) - $ / shares	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Dividend yield	0%	0%
ESPP
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate, minimum	4.87%	0.60%
Risk-free interest rate, maximum	5.47%	3.51%
Dividend yield	0%	0%
Weighted average grant date fair value per share (in dollars per share)	$ 5.34	$ 4.28
ESPP | Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected term in years	6 months	6 months
Expected volatility	79%	70%
ESPP | Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected term in years	2 years	2 years
Expected volatility	97%	97%

NET LOSS PER SHARE - Computatio

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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net loss	$ (66,869)	$ (76,971)	$ (224,717)	$ (229,864)
Basic
Basic (in shares)	255,001	225,123	249,082	223,981
Basic net loss per share (in dollars per share)	$ (0.26)	$ (0.34)	$ (0.90)	$ (1.03)
Diluted
Diluted (in shares)	255,001	225,123	249,082	223,981
Diluted net loss per share (in dollars per share)	$ (0.26)	$ (0.34)	$ (0.90)	$ (1.03)

NET LOSS PER SHARE - Antidiluti

NET LOSS PER SHARE - Antidilutive Shares Excluded from Computation of Diluted Earnings per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Shares issuable upon conversion of convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of earnings per share (in shares)	31,063	20,690	31,063	20,690
Equity Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of earnings per share (in shares)	28,100	28,087	28,100	28,087

REVENUE - Schedule of Revenue b

REVENUE - Schedule of Revenue by Geographic Location (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 55,691	$ 32,311	$ 142,164	$ 100,951
Americas
Disaggregation of Revenue [Line Items]
Total revenue	28,978	16,743	71,480	57,547
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total revenue	10,994	5,997	29,594	17,432
Asia-Pacific
Disaggregation of Revenue [Line Items]
Total revenue	$ 15,719	$ 9,571	$ 41,090	$ 25,972

REVENUE - Summary of Revenue by

REVENUE - Summary of Revenue by Category (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 55,691	$ 32,311	$ 142,164	$ 100,951
Instrument revenue
Disaggregation of Revenue [Line Items]
Total revenue	34,694	11,442	85,317	42,611
Consumable revenue
Disaggregation of Revenue [Line Items]
Total revenue	16,868	16,067	44,554	43,317
Product revenue
Disaggregation of Revenue [Line Items]
Total revenue	51,562	27,509	129,871	85,928
Service and other revenue
Disaggregation of Revenue [Line Items]
Total revenue	$ 4,129	$ 4,802	$ 12,293	$ 15,023