Outset Medical (OM) 10-Q 4 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 22, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Entity File Number	001-39513
Entity Registrant Name	Outset Medical, Inc.
Entity Central Index Key	0001484612
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-0514392
Entity Address, Address Line One	3052 Orchard Dr.
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95134
City Area Code	669
Local Phone Number	231-8200
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	OM
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		47,794,265

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 114,346	$ 182,348
Short-term investments	187,921	157,140
Accounts receivable, net	26,899	25,600
Inventories	42,873	39,185
Prepaid expenses and other current assets	5,387	5,529
Total current assets	377,426	409,802
Restricted cash	33,311	33,311
Property and equipment, net	13,882	12,964
Operating lease right-of-use assets	6,962	7,231
Other assets	161	156
Total assets	431,742	463,464
Current liabilities:
Accounts payable	5,149	1,763
Accrued compensation and related benefits	13,478	24,948
Accrued expenses and other current liabilities	18,610	13,789
Accrued warranty liability	3,628	3,704
Deferred revenue, current	6,833	6,340
Operating lease liabilities, current	1,192	1,151
Total current liabilities	48,890	51,695
Accrued interest, noncurrent	840	721
Deferred revenue, noncurrent	194	312
Operating lease liabilities, noncurrent	6,581	6,893
Term loan, noncurrent	29,784	29,762
Total liabilities	86,289	89,383
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock, $0.001 par value; 5,000 shares authorized, and no shares issued and outstanding as of March 31, 2022 and December 31, 2021	0	0
Common stock, $0.001 par value; 300,000 shares authorized as of March 31, 2022 and December 31, 2021; 47,712 and 42,241 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	48	47
Additional paid-in capital	1,008,940	1,000,212
Accumulated other comprehensive (loss) income	(649)	(184)
Accumulated deficit	(662,886)	(625,994)
Total stockholders' equity	345,453	374,081
Total liabilities and stockholders' equity	$ 431,742	$ 463,464

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	47,712,000	47,241,000
Common stock, shares outstanding	47,712,000	47,241,000

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue:
Revenue	$ 30,550	$ 22,916
Cost of revenue:
Cost of revenue	26,108	22,627
Gross profit	4,442	289
Operating expenses:
Research and development	10,831	7,570
Sales and marketing	20,377	13,149
General and administrative	9,709	9,246
Total operating expenses	40,917	29,965
Loss from operations	(36,475)	(29,676)
Interest income and other income, net	120	112
Interest expense	(422)	(422)
Loss before provision for income taxes	(36,777)	(29,986)
Provision for income taxes	115	39
Net loss	$ (36,892)	$ (30,025)
Net loss per share, basic and diluted	$ (0.78)	$ (0.70)
Shares used in computing net loss per share, basic and diluted	47,487	42,760
Product Revenue
Revenue:
Revenue	$ 25,664	$ 18,210
Cost of revenue:
Cost of revenue	23,110	20,577
Service and Other Revenue
Revenue:
Revenue	4,886	4,706
Cost of revenue:
Cost of revenue	$ 2,998	$ 2,050

Condensed Statements of Compreh

Condensed Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (36,892)	$ (30,025)
Other comprehensive loss:
Unrealized loss on available-for-sale securities	(465)	(9)
Comprehensive loss	$ (37,357)	$ (30,034)

Condensed Statement of Redeemab

Condensed Statement of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning Balance at Dec. 31, 2020	$ 328,609	$ 43	$ 822,624	$ 1	$ (494,059)
Beginning Balance (shares) at Dec. 31, 2020		42,722
Issuance of common stock through employee stock purchase plan	1,838		1,838
Issuance of common stock through employee stock purchase plan (shares)		80
Stock option exercises	380		380
Stock option exercises (shares)		86
Stock-based compensation expense	5,852		5,852
Unrealized loss on available-for-sale securities	(9)			(9)
Net loss	(30,025)				(30,025)
Ending Balance at Mar. 31, 2021	306,645	$ 43	830,694	(8)	(524,084)
Ending Balance (shares) at Mar. 31, 2021		42,888
Beginning Balance at Dec. 31, 2021	374,081	$ 47	1,000,212	(184)	(625,994)
Beginning Balance (shares) at Dec. 31, 2021		47,241
Issuance of common stock through employee stock purchase plan	2,063		2,063
Issuance of common stock through employee stock purchase plan (shares)		55
Issuance of common stock for settlement of RSUs (shares)		88
Stock option exercises	1,660	$ 1	1,659
Stock option exercises (shares)		328
Stock-based compensation expense	5,006		5,006
Unrealized loss on available-for-sale securities	(465)			(465)
Net loss	(36,892)				(36,892)
Ending Balance at Mar. 31, 2022	$ 345,453	$ 48	$ 1,008,940	$ (649)	$ (662,886)
Ending Balance (shares) at Mar. 31, 2022		47,712

Condensed Statement of Cash Flo

Condensed Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net loss	$ (36,892)	$ (30,025)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	5,006	5,852
Depreciation and amortization	1,262	1,246
Non-cash lease expense	269	249
Non-cash interest expense	140	140
Accretion of discount on investments, net	(667)	(60)
Other non-cash items	3	5
Provision for inventories	496	115
Changes in operating assets and liabilities:
Accounts receivable	(1,299)	(5,646)
Inventories	(4,184)	(7,247)
Prepaid expenses and other assets	137	(981)
Accounts payable	3,276	1,613
Accrued payroll and related benefits	(11,470)	(4,244)
Accrued expenses and other current liabilities	4,226	164
Accrued warranty liability	(76)	(53)
Deferred revenue	375	305
Operating lease liabilities	(271)	(169)
Net cash used in operating activities	(38,335)	(38,616)
Cash flows from investing activities:
Purchases of property and equipment	(1,478)	(919)
Purchases of investment securities	(64,712)	(25,788)
Sales and maturities of investment securities	32,800	19,900
Net cash used in investing activities	(33,390)	(6,807)
Cash flows from financing activities:
Proceeds from stock option exercises and employee stock purchase plan purchases	3,723	2,218
Net cash provided by financing activities	3,723	2,218
Net decrease in cash, cash equivalents and restricted cash	(68,002)	(43,205)
Cash, cash equivalents and restricted cash as of beginning of period	215,659	328,283
Cash, cash equivalents and restricted cash as of end of period	147,657	285,078
Supplemental cash flow disclosures:
Cash paid for income taxes	205
Cash paid for interest	282	282
Cash paid for amounts included in the measurement of operating lease liabilities	271	169
Supplemental non-cash investing and financing activities:
Capital expenditures included in accounts payable and accrued expenses	907	238
Transfer of inventories to property and equipment		$ 962

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	1. Description of Business Outset Medical, Inc. (the Company) is a medical technology company pioneering a first-of-its-kind technology to reduce the cost and complexity of dialysis. The Tablo® Hemodialysis System (Tablo), cleared by the U.S. Food and Drug Administration (FDA) for use from the hospital to the home, represents a significant technological advancement designed to transform the dialysis experience for patients and operationally simplify it for providers. Tablo serves as a single enterprise solution designed to be utilized across the continuum of care, allowing dialysis to be delivered anytime, anywhere, and by virtually anyone. The integration of water purification and on-demand dialysate production in a single 35-inch compact console enables Tablo to serve as a dialysis clinic on wheels. With a simple-to-use touchscreen interface, two-way wireless data transmission and a proprietary data analytics platform, Tablo is a new holistic approach to dialysis care. The Company’s headquarters are located in San Jose, CA. Liquidity Since inception, the Company has incurred net losses and negative cash flows from operations. During the three months ended March 31, 2022 and 2021, the Company incurred a net loss of $ 36.9 million and $ 30.0 million , respectively. As of March 31, 2022, the Company had an accumulated deficit of $ 662.9 million . As of March 31, 2022, the Company had cash, cash equivalents and short-term investments of $ 302.3 million , which are available to fund future operations, and restricted cash of $ 33.3 million , for a total cash, cash equivalents, restricted cash and short-term investments balance of $ 335.6 million . Management expects to continue to incur significant expenses for the foreseeable future and to incur operating losses in the near term while the Company makes investments to support its anticipated growth. Management believes that the Company’s existing cash, cash equivalents, short-term investments and cash generated from sales, will be sufficient to meet its anticipated needs for at least the next 12 months from the issuance date of the accompanying condensed financial statements. Basis of Presentation The accompanying condensed financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, that are necessary for the fair statement of the Company’s financial position, results of operations, comprehensive loss, and cash flows for the interim periods presented. The financial data and the other financial information disclosed in these notes to the condensed financial statements related to the three-month period are also unaudited. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results of operations to be anticipated for any other future annual or interim period. The condensed balance sheet as of December 31, 2021 included herein was derived from the audited financial statements as of that date. These unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements and related notes for the year ended December 31, 2021, which are included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the Securities and Exchange Commission (SEC) on February 23, 2022 (2021 Annual Report). All share amounts disclosed in the notes to the condensed financial statements are rounded to the nearest thousand except for per share data.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies During the three months ended March 31, 2022, there have been no material changes to the Company’s significant accounting policies as described in its 2021 Annual Report that have had a material impact on the Company’s condensed financial statements and related notes. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which requires an entity to utilize a new impairment model known as the current expected credit loss (CECL) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial assets and certain other instruments, including but not limited to available-for-sale debt securities. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. ASU 2016-13 requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842): Effective Dates , which defers the effective date of ASU 2016-13 to fiscal years beginning after December 15, 2022 for all entities except SEC reporting companies that are not smaller reporting companies. ASU 2016-13 will be effective for the Company beginning January 1, 2023. The Company is currently evaluating the impact of the adoption of ASU 2016-13 on its financial statements.

Revenue and Deferred Revenue

Revenue and Deferred Revenue	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue and Deferred Revenue	3. Revenue and Deferred Revenue Disaggregation of Revenue Revenue by source consists of the following (in thousands): Three Months Ended March 31, 2022 2021 Consoles $ 18,051 $ 14,766 Consumables 7,613 3,444 Total product revenue 25,664 18,210 Service and other revenue 4,886 4,706 Total revenue $ 30,550 $ 22,916 For the three months ended March 31, 2022, $ 0.7 million of consoles revenue was from console operating lease arrangements, compared to $ 1.3 million for the three months ended March 31, 2021. Remaining Performance Obligations and Contract Liabilities As of March 31, 2022, the aggregate amount of the transaction price allocated to the remaining performance obligations related to customer service contracts that are unsatisfied or partially unsatisfied was $ 7.0 million , which is recorded as deferred revenue on the Company’s condensed balance sheets. Of that amount, $ 6.8 million will be recognized as revenue during the next 12 months and $ 0.2 million thereafter. The contract liabilities consist of deferred revenue which represents payments received in advance of revenue recognition. Revenue under these agreements is recognized over the related service period. During the three months ended March 31, 2022, the Company recognized $ 2.5 million of previously deferred revenue.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	4. Fair Value Measurements The following tables summarize the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): March 31, 2022 Valuation Amortized Gross Gross Aggregate Assets: Cash equivalents: Money market funds Level 1 $ 32,747 $ — $ — $ 32,747 Short-term investments: U.S. Treasury securities Level 1 68,129 2 ( 275 ) 67,856 Corporate debt Level 2 109,752 2 ( 378 ) 109,376 Commercial paper Level 2 10,689 — — 10,689 Total cash equivalents and $ 221,317 $ 4 $ ( 653 ) $ 220,668 December 31, 2021 Valuation Amortized Gross Gross Aggregate Assets: Cash equivalents: Money market funds Level 1 $ 60,844 $ — $ — $ 60,844 Short-term investments: U.S. Treasury securities Level 1 18,064 — ( 60 ) 18,004 Corporate debt Level 2 124,178 2 ( 125 ) 124,055 Commercial paper Level 2 15,081 — — 15,081 Total cash equivalents and $ 218,167 $ 2 $ ( 185 ) $ 217,984 As of March 31, 2022 , the remaining contractual maturities for available-for-sale securities were between one month to twelve months . Impairment assessments are made at the individual security level at each reporting period. When the fair value of an available-for-sale security is less than its cost at the balance sheet date, a determination is made as to whether the impairment is other-than-temporary and, if it is other-than-temporary, an impairment loss is recognized in earnings equal to the difference between the investment’s amortized cost and fair value at such date. There were no unrealized losses for securities in an unrealized loss position for more than 12 months as of March 31, 2022. During the three months ended March 31, 2022 and 2021 , the Company did no t recognize other-than-temporary impairment losses related to its investment securities.

Balance Sheet Components

Balance Sheet Components	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Components	5. Balance Sheet Components As of March 31, 2022 and December 31, 2021, the restricted cash balance of $ 33.3 million primarily relates to contractual obligations under the SVB Loan and Security Agreement (see Note 7) and collateral for building leases in San Jose, CA and Tijuana Mexico. The following table provides a reconciliation of cash, cash equivalents and restricted cash that sum to the total of the amounts shown in the accompanying condensed statements of cash flows (in thousands): March 31, 2022 2021 Cash and cash equivalents $ 114,346 $ 251,767 Restricted cash 33,311 33,311 Total cash, cash equivalents and restricted cash $ 147,657 $ 285,078 Inventories Inventories consist of the following (in thousands): March 31, December 31, 2022 2021 Raw materials $ 15,970 $ 18,114 Work in process 9,501 6,054 Finished goods 17,402 15,017 Total inventories $ 42,873 $ 39,185 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in thousands): March 31, December 31, 2022 2021 Accrued inventory $ 6,730 $ 4,808 Accrued research and development expenses 802 574 Accrued professional services 1,510 1,269 Accrued rebate 3,449 3,121 Other 6,119 4,017 Total accrued expenses and other current liabilities $ 18,610 $ 13,789

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies Litigation From time to time, the Company may become involved in legal proceedings or investigations, which could have an adverse impact on its reputation, business and financial condition and divert the attention of the Company’s management from the operation of the Company’s business. The Company is not presently a party to any legal proceedings that, if determined adversely to the Company, would individually or taken together have a material adverse effect on its business, results of operations, financial condition or cash flows. Indemnification In the ordinary course of business, the Company often includes standard indemnification provisions in its arrangements with its partners, customers and suppliers. Pursuant to these provisions, the Company may be obligated to indemnify such parties for losses or claims suffered or incurred in connection with its service, breach of representations or covenants, intellectual property infringement or other claims made against such parties. These provisions may limit the time within which an indemnification claim can be made. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. To date, the Company has not incurred any material costs as a result of such indemnification obligations and has not accrued any liabilities related to such obligations in these financial statements.

Term Loan

Term Loan	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Term Loan	7. Term Loan Term loan consists of the following (in thousands): March 31, December 31, 2022 2021 Principal of term loan $ 30,000 $ 30,000 Unamortized debt discount ( 216 ) ( 238 ) Total term loan, noncurrent $ 29,784 $ 29,762 SVB Loan and Security Agreement On July 2, 2020, the Company entered into a senior secured term loan facility with Silicon Valley Bank (SVB) (the SVB Loan and Security Agreement), which provides for a $ 30.0 million term loan (the SVB Term Loan). The SVB Term Loan matures on November 1, 2025 . Payments under the SVB Term Loan are for interest only through May 2023 , and then 30 monthly principal and interest payments from June 2023 until maturity. The SVB Term Loan bears interest at the greater of (A) 0.5 % above the Prime Rate as reported in the Wall Street Journal and (B) 3.75% ( 4.00 % as of March 31, 2022 ). The Company is obligated to maintain a restricted cash balance greater or equal to the outstanding principal balance of $ 30.0 million of the SVB Term Loan. There is also a final payment fee equal to 6.75 % of the original principal amount of the SVB Term Loan, or approximately $ 2.0 million, due at maturity (or any earlier date of optional pre-payment or acceleration of principal due to an event of default). Such fee is being accreted to interest expense using the effective interest method with the offset recorded in noncurrent accrued interest. The Company may, at its option, prepay the SVB Term Loan in full, subject to an additional prepayment fee ranging between 1 % and 3 % of the outstanding principal amount of the SVB Term Loan. In the event of a default or change in control, all unpaid principal and all accrued and unpaid interest amounts (if any) become immediately due and payable including the prepayment fee. Events of default include, but are not limited to, a payment default, a material adverse change, and insolvency. The SVB Term Loan is secured by substantially all of the Company’s assets, including all of the capital stock held by the Company, if any (subject to a 65 % limitation on pledges of capital stock of foreign subsidiaries), subject to certain exceptions. The SVB Loan and Security Agreement contains customary representations, warranties, affirmative covenants and also contains certain restrictive covenants. Debt issuance costs paid directly to SVB and other debt issuance costs amounting to $ 0.4 million were accounted for as discounts on the SVB Term Loan. These debt discounts, along with the final payment fee, are being amortized over the term of the SVB Term Loan using the effective interest rate method.

Equity Incentive Plan

Equity Incentive Plan	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Equity Incentive Plan	8. Equity Incentive Plan Equity Incentive Plans On January 1, 2022, the number of shares of common stock reserved for the issuance of awards under the Company’s 2020 Equity Incentive Plan (the 2020 Plan) was increased by 1,890,000 shares as a result of the automatic increase pursuant to the 2020 Plan. As of March 31, 2022, 5,524,000 shares were reserved for future issuance under the 2020 Plan. Employees Share Purchase Plan (ESPP) On January 1, 2022, the number of shares of common stock reserved for purchase under the Company’s ESPP was increased by 472,000 shares as a result of the automatic increase pursuant to the ESPP. As of March 31, 2022, 1,416,000 shares of common stock were reserved for issuance in connection with the current and future offering periods under the ESPP. Restricted Stock The Company issues restricted stock units (RSUs) and performance stock units (PSUs), both of which are considered restricted stock. The Company grants restricted stock pursuant to the 2020 Plan and satisfies such grants through the issuance of new shares. RSUs are share awards that, upon vesting, will deliver to the holder shares of our common stock. RSUs with a service-based vesting condition granted to a grantee, beginning in February 2022, generally vest over a three year period as follows either: (i) 25 % on the first anniversary of the original vesting date, 25% quarterly over the course of the second year, and 50% quarterly over the course of the third year, or (ii) 33% on the first anniversary of the original vesting date, with the balance vesting quarterly over the remaining two years. Prior to February 2022, RSUs with a service-based vesting condition granted to a grantee generally vest at a rate of 25% on the first anniversary of the original vesting date , with the balance vesting quarterly over the remaining three years. In 2022, the Company issued a mix of 50 % PSUs and 50 % RSUs to its CEO, and a mix of 20 % PSUs and 80 % RSUs to its other executive officers and certain other senior leaders. These PSUs are earned and vest over performance and vesting periods extending through 2024 based on achievement against two metrics: (1) an operational metric tied to the number of patients treating at home on Tablo as of the end of 2023, with 50 % of earned units vesting after certification of the achievement level following the end of 2023 and the remaining 50 % of earned units vesting at the end of 2024 (performance-based vesting conditions, referred to as the Home PSUs) and (2) the Company's relative total stockholder return (relative TSR) over a two-year performance period as compared to companies in a pre-determined index of medical device companies, with 100% of earned units vesting at the end of 2024 (market-based vesting conditions, referred to as the Relative TSR PSUs). The 2023 target for the Home PSUs is expected to be determined and approved by the Compensation Committee in late 2022 or early 2023. Given such target has not yet been established, the grant date for these Home PSUs will only be established when the Compensation Committee approves and the Company communicates the target to the award recipients, which will then trigger the service inception date, the fair value of the awards, and the associated expense recognition period. Therefore, no expense is expected to be recognized for these Home PSUs until the grant date is established. Stock-Based Compensation Expense The following table sets forth stock-based compensation expense included in the accompanying condensed statements of operations (in thousands): Three Months Ended March 31, 2022 2021 Cost of revenue $ 93 $ 75 Research and development 1,158 1,165 Sales and marketing 1,706 1,742 General and administrative 2,049 2,870 Total stock-based compensation expense $ 5,006 $ 5,852

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes For each of the three months ended March 31, 2022 and 2021 , the Company incurred an income tax provision of an insignificant amount, which related to foreign income taxes. The U.S. federal and state net deferred tax assets have been fully offset by a valuation allowance, as the Company believes it is not more likely than not that the deferred tax assets will be realized.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Net Loss Per Share	10. Net Loss Per Share The following outstanding potentially dilutive shares were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect (in thousands): Three Months Ended March 31, 2022 2021 Stock options to purchase common stock 3,162 5,019 Restricted stock units 1,390 403 Performance stock units 74 — Shares committed under ESPP 43 7 Warrant to purchase common stock 63 63 Total 4,732 5,492

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which requires an entity to utilize a new impairment model known as the current expected credit loss (CECL) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial assets and certain other instruments, including but not limited to available-for-sale debt securities. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. ASU 2016-13 requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842): Effective Dates , which defers the effective date of ASU 2016-13 to fiscal years beginning after December 15, 2022 for all entities except SEC reporting companies that are not smaller reporting companies. ASU 2016-13 will be effective for the Company beginning January 1, 2023. The Company is currently evaluating the impact of the adoption of ASU 2016-13 on its financial statements.

Revenue and Deferred Revenue (T

Revenue and Deferred Revenue (Tables)	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Summary of Revenue by Source	Revenue by source consists of the following (in thousands): Three Months Ended March 31, 2022 2021 Consoles $ 18,051 $ 14,766 Consumables 7,613 3,444 Total product revenue 25,664 18,210 Service and other revenue 4,886 4,706 Total revenue $ 30,550 $ 22,916

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Summary of Financial Assets Measured at Fair Value on Recurring Basis by Level within Fair Value Hierarchy	The following tables summarize the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): March 31, 2022 Valuation Amortized Gross Gross Aggregate Assets: Cash equivalents: Money market funds Level 1 $ 32,747 $ — $ — $ 32,747 Short-term investments: U.S. Treasury securities Level 1 68,129 2 ( 275 ) 67,856 Corporate debt Level 2 109,752 2 ( 378 ) 109,376 Commercial paper Level 2 10,689 — — 10,689 Total cash equivalents and $ 221,317 $ 4 $ ( 653 ) $ 220,668 December 31, 2021 Valuation Amortized Gross Gross Aggregate Assets: Cash equivalents: Money market funds Level 1 $ 60,844 $ — $ — $ 60,844 Short-term investments: U.S. Treasury securities Level 1 18,064 — ( 60 ) 18,004 Corporate debt Level 2 124,178 2 ( 125 ) 124,055 Commercial paper Level 2 15,081 — — 15,081 Total cash equivalents and $ 218,167 $ 2 $ ( 185 ) $ 217,984

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule Of Cash And Cash Equivalents And Restricted Cash	The following table provides a reconciliation of cash, cash equivalents and restricted cash that sum to the total of the amounts shown in the accompanying condensed statements of cash flows (in thousands): March 31, 2022 2021 Cash and cash equivalents $ 114,346 $ 251,767 Restricted cash 33,311 33,311 Total cash, cash equivalents and restricted cash $ 147,657 $ 285,078
Schedule of Inventories	Inventories consist of the following (in thousands): March 31, December 31, 2022 2021 Raw materials $ 15,970 $ 18,114 Work in process 9,501 6,054 Finished goods 17,402 15,017 Total inventories $ 42,873 $ 39,185
Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consist of the following (in thousands): March 31, December 31, 2022 2021 Accrued inventory $ 6,730 $ 4,808 Accrued research and development expenses 802 574 Accrued professional services 1,510 1,269 Accrued rebate 3,449 3,121 Other 6,119 4,017 Total accrued expenses and other current liabilities $ 18,610 $ 13,789

Term Loan (Tables)

Term Loan (Tables)	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Schedule of Term Loan	Term loan consists of the following (in thousands): March 31, December 31, 2022 2021 Principal of term loan $ 30,000 $ 30,000 Unamortized debt discount ( 216 ) ( 238 ) Total term loan, noncurrent $ 29,784 $ 29,762

Equity Incentive Plan (Tables)

Equity Incentive Plan (Tables)	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Summary of Stock-based Compensation Expense	The following table sets forth stock-based compensation expense included in the accompanying condensed statements of operations (in thousands): Three Months Ended March 31, 2022 2021 Cost of revenue $ 93 $ 75 Research and development 1,158 1,165 Sales and marketing 1,706 1,742 General and administrative 2,049 2,870 Total stock-based compensation expense $ 5,006 $ 5,852

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Schedule of Outstanding Potentially Dilutive Shares were Excluded from Calculation of Diluted Net Loss Per Share	The following outstanding potentially dilutive shares were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect (in thousands): Three Months Ended March 31, 2022 2021 Stock options to purchase common stock 3,162 5,019 Restricted stock units 1,390 403 Performance stock units 74 — Shares committed under ESPP 43 7 Warrant to purchase common stock 63 63 Total 4,732 5,492

Description of Business - Addit

Description of Business - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Description Of Business [Line Items]
Net loss	$ 36,892	$ 30,025
Accumulated deficit	(662,886)		$ (625,994)
Cash, cash equivalents and short-term investments	302,300
Restricted cash	33,311		$ 33,311
Cash, cash equivalents, restricted cash and short-term investments	$ 335,600

Revenue and Deferred Revenue -

Revenue and Deferred Revenue - Summary of Revenue by Source (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation Of Revenue [Line Items]
Revenue	$ 30,550	$ 22,916
Consoles Product
Disaggregation Of Revenue [Line Items]
Revenue	18,051	14,766
Consumables Product
Disaggregation Of Revenue [Line Items]
Revenue	7,613	3,444
Product Revenue
Disaggregation Of Revenue [Line Items]
Revenue	25,664	18,210
Service and Other Revenue
Disaggregation Of Revenue [Line Items]
Revenue	$ 4,886	$ 4,706

Revenue and Deferred Revenue _2

Revenue and Deferred Revenue - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Remaining performance obligations	$ 7
Revenue recognized	2.5
Consoles Product | Operating Lease Arrangements
Revenue from operating lease arrangements	$ 0.7	$ 1.3

Revenue and Deferred Revenue _3

Revenue and Deferred Revenue - Additional Information (Detail) 1 $ in Millions	Mar. 31, 2022USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue performance obligation	$ 6.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue performance obligation	$ 0.2

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on Recurring Basis by Level within Fair Value Hierarchy (Detail) - Fair Value, Recurring - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Costs	$ 221,317	$ 218,167
Gross Unrealized Holding Gains	4	2
Gross Unrealized Holding Losses	(653)	(185)
Aggregate Fair Value	220,668	217,984
Level 1 | Cash equivalents | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Costs	32,747	60,844
Aggregate Fair Value	32,747	60,844
Level 1 | Short-term investments | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Costs	68,129	18,064
Gross Unrealized Holding Gains	2
Gross Unrealized Holding Losses	(275)	(60)
Aggregate Fair Value	67,856	18,004
Level 2 | Short-term investments | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Costs	10,689	15,081
Aggregate Fair Value	10,689	15,081
Level 2 | Short-term investments | Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Costs	109,752	124,178
Gross Unrealized Holding Gains	2	2
Gross Unrealized Holding Losses	(378)	(125)
Aggregate Fair Value	$ 109,376	$ 124,055

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Remaining contractual maturities for available-for-sale securities	one month to twelve months
Securities in unrealized loss position for more than 12 months	$ 0
Other-than-temporary impairment losses related to investments	$ 0	$ 0

Balance Sheet Components (Addit

Balance Sheet Components (Additional Information) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Balance Sheet Components
Restricted cash balance	$ 33,311	$ 33,300	$ 33,311

Balance Sheet Components - Sche

Balance Sheet Components - Schedule Of Cash And Cash Equivalents And Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 114,346	$ 182,348	$ 251,767
Restricted cash	33,311	33,300	$ 33,311
Total cash, cash equivalents and restricted cash	$ 147,657	$ 285,078

Balance Sheet Components - Sc_2

Balance Sheet Components - Schedule of Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 15,970	$ 18,114
Work in process	9,501	6,054
Finished goods	17,402	15,017
Total inventories	$ 42,873	$ 39,185

Balance Sheet Components - Accr

Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued inventory	$ 6,730	$ 4,808
Accrued research and development expenses	802	574
Accrued professional services	1,510	1,269
Accrued rebate	3,449	3,121
Other	6,119	4,017
Total accrued expenses and other current liabilities	$ 18,610	$ 13,789

Term Loan - Schedule of Term Lo

Term Loan - Schedule of Term Loan (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Principal of term loan	$ 30,000	$ 30,000
Unamortized debt discount	(216)	(238)
Total term loan, noncurrent	$ 29,784	$ 29,762

Term Loan - Additional Informat

Term Loan - Additional Information (Detail) - USD ($) $ in Thousands	Jul. 02, 2020	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Principal of term loan		$ 30,000	$ 30,000
Debt discount on Perceptive Term Loan		$ 216	$ 238
SVB Term Loan
Debt Instrument [Line Items]
Principal of term loan	$ 30,000
Loan maturity date	Nov. 1, 2025
Description of payment terms		Payments under the SVB Term Loan are for interest only through May 2023, and then 30 monthly principal and interest payments from June 2023 until maturity.
Debt instrument interest only payments end date	2023-05
Debt instrument principal repayment period	30 months
Debt interest rate	6.75%	4.00%
Debt instrument, final payment amount	$ 2,000
Percentage of limitation on pledges of capital stock of foreign subsidiaries	65.00%
Other debt issuance costs		$ 400
SVB Term Loan | Minimum
Debt Instrument [Line Items]
Debt instrument prepayment fee percentage	1.00%
SVB Term Loan | Maximum
Debt Instrument [Line Items]
Debt instrument prepayment fee percentage	3.00%
SVB Term Loan | Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%

Equity Incentive Plans - Additi

Equity Incentive Plans - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Feb. 28, 2022	Mar. 31, 2022	Mar. 31, 2021	Jan. 01, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Earned units vesting percentage		50.00%
Stock-based compensation expense		$ 5,006	$ 5,852
Stock Option
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock options, description		25% quarterly over the course of the second year, and 50% quarterly over the course of the third year, or (ii) 33% on the first anniversary of the original vesting date, with the balance vesting quarterly over the remaining two years. Prior to February 2022, RSUs with a service-based vesting condition granted to a grantee generally vest at a rate of 25% on the first anniversary of the original vesting date
RSUs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Percentage of restricted stock issued to CEO		50.00%
Percentage of restricted stock issued to other executive officers		80.00%
Earned units vesting percentage	25.00%
PSUs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Percentage of restricted stock issued to CEO		50.00%
Percentage of restricted stock issued to other executive officers		20.00%
2020 Equity Incentive Plan
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Common stock shares reserved for issuance		5,524,000		1,890,000
Employees Share Purchase Plan (ESPP)
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Common stock shares reserved for issuance		1,416,000		472,000

Equity Incentive Plans - Summar

Equity Incentive Plans - Summary of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Equity Incentive Plan [Line Items]
Cumulative stock-based compensation	$ 5,006	$ 5,852
Cost of Revenue
Equity Incentive Plan [Line Items]
Cumulative stock-based compensation	93	75
Research and Development
Equity Incentive Plan [Line Items]
Cumulative stock-based compensation	1,158	1,165
Sales and Marketing
Equity Incentive Plan [Line Items]
Cumulative stock-based compensation	1,706	1,742
General and Administrative
Equity Incentive Plan [Line Items]
Cumulative stock-based compensation	$ 2,049	$ 2,870

Net Loss Per Share - Schedule o

Net Loss Per Share - Schedule of Outstanding Potentially Dilutive Shares were Excluded from Calculation of Diluted Net Loss Per Share (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	4,732	5,492
Stock Options to Purchase Common Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	3,162	5,019
Restricted Stock Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	1,390	403
Warrant to Purchase Common Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	63	63
Shares Committed under ESPP
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	43	7
Performance Stock Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	74