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10X Genomics Inc

10x Genomics Reports Third Quarter 2024 Financial Results

PLEASANTON, Calif. , Oct. 29, 2024 /PRNewswire/ -- 10x Genomics, Inc. (Nasdaq: TXG), a leader in single cell and spatial biology, today reported financial results for the third quarter ended September 30, 2024.

Recent Highlights

  • Revenue was $151.7 million for the third quarter, in line with the company's preliminary announcement, a 1% decrease over the corresponding period of 2023, primarily driven by lower instrument revenue, offset by stronger contributions from consumables.
  • Began shipping GEM-X Flex, setting a new standard for the cost per cell for researchers and enabling them to run millions of cells for less than one cent per cell. GEM-X Flex also delivers a number of improvements that are particularly valuable for clinical FFPE samples.
  • Launched GEM-X Universal Multiplex, enabling researchers to run more cost-effective single cell studies decreasing the cost per sample, even for small scale experiments.
  • Began shipping Chromium Xo, providing a budget-friendly instrument for routine, high-performance single cell analysis.

"Our results this quarter fell short of our expectations given greater-than-anticipated disruption from the sales restructuring we implemented in the quarter and cautious customer spending. As these dynamics persist, especially under a difficult macro backdrop, our revenue growth this year will be lower than our previous expectations," said Serge Saxonov, Co-founder and CEO of 10x Genomics. "Despite these challenges, I am confident that the steps we are taking will enable us to reach more customers, execute consistently across the portfolio and drive the broad democratization of our technologies to reach the full potential of the large opportunity ahead."

Third  Quarter 2024 Financial Results

Revenue was $151.7 million for the third quarter of 2024, a 1% decrease from $153.6 million for the corresponding prior year period.

Gross margin was 70% for the third quarter of 2024, as compared to 62% for the corresponding prior year period. The increase in gross margin was primarily due to change in product mix.

Operating expenses were $147.9 million for the third quarter of 2024, a 22% decrease from $190.3 million for the corresponding prior year period. The decrease was primarily driven by a $41.4 million in-process research and development expense related to an agreement to acquire certain intangible and other assets in the prior year period.

Operating loss was $41.5 million for the third quarter of 2024, as compared to $94.8 million for the corresponding prior year period. Operating loss includes $33.9 million of stock-based compensation for the third quarter of 2024, as compared to $40.2 million of stock-based compensation for the corresponding prior year period. Operating loss in the third quarter of 2023 included $41.4 million of in-process research and development expense.

Net loss was $35.8 million for the third quarter of 2024, as compared to a net loss of $93.0 million for the corresponding prior year period.

Cash and cash equivalents were $398.2 million as of September 30, 2024.

2024 Financial Guidance

10x Genomics is updating its outlook for the full year 2024. The company now expects revenue to be in the range of $595 million to $605 million versus a prior range of $640 million to $660 million. The updated range represents a 3% decrease from the full year 2023 revenue at the midpoint.

Webcast and Conference Call Information

10x Genomics will host a conference call to discuss the third quarter 2024 financial results, business developments and outlook after market close on Tuesday, October 29, 2024, 2024 at 1:30 PM Pacific Time / 4:30 PM Eastern Time. A webcast of the conference call can be accessed at http://investors.10xgenomics.com. The webcast will be archived and available for replay at least 45 days after the event.

About 10x Genomics

10x Genomics is a life science technology company building products to accelerate the mastery of biology and advance human health. Our integrated solutions include instruments, consumables and software for single cell and spatial biology, which help academic and translational researchers and biopharmaceutical companies understand biological systems at a resolution and scale that matches the complexity of biology. Our products are behind breakthroughs in oncology, immunology, neuroscience and more, fueling powerful discoveries that are transforming the world's understanding of health and disease. To learn more, visit 10xgenomics.com or connect with us on LinkedIn or X (Twitter). 

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. All statements included in this press release, other than statements of historical facts, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "might," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "see," "estimate," "predict," "potential," "would," "likely," "seek" or "continue" or the negatives of these terms or variations of them or similar terminology, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include statements regarding 10x Genomics, Inc.'s organization and organizational restructuring, commercial execution, opportunities, specifications, costs and adoption of 10x Genomics, Inc.'s products and services, expected performance advantages and benefits of using 10x Genomics, Inc.'s products and services and 10x Genomics, Inc.'s financial performance and results of operations, including expectations regarding revenue and guidance. These statements are based on management's current expectations, forecasts, beliefs, assumptions and information currently available to management. Actual outcomes and results could differ materially from these statements due to a number of factors and such statements should not be relied upon as representing 10x Genomics, Inc.'s views as of any date subsequent to the date of this press release. 10x Genomics, Inc. disclaims any obligation to update any forward-looking statements provided to reflect any change in 10x Genomics' expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law. The material risks and uncertainties that could affect 10x Genomics, Inc.'s financial and operating results and cause actual results to differ materially from those indicated by the forward-looking statements made in this press release include those discussed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's most recently-filed 10-K for the fiscal year ended December 31, 2023 and the company's 10-Q for the quarter ended March 31, 2024 to be filed with the Securities and Exchange Commission (SEC) and elsewhere in the documents 10x Genomics, Inc. files with the SEC from time to time.

Disclosure Information

10x Genomics uses filings with the Securities and Exchange Commission, its website (www.10xgenomics.com), press releases, public conference calls, public webcasts and its social media accounts as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Contacts

Investors: investors@10xgenomics.com

Media: media@10xgenomics.com

10x Genomics, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except share and per share data)



Three Months Ended
September 30,


Nine Months Ended
September 30,


2024


2023


2024


2023

Revenue (1)

$         151,654


$         153,644


$         445,764


$         434,748

Cost of revenue (2)

45,261


58,115


142,237


141,217

Gross profit

106,393


95,529


303,527


293,531

Operating expenses:








Research and development (2)

66,174


66,507


197,730


205,065

In-process research and development

—


41,402


—


41,402

Selling, general and administrative (2)

81,704


82,415


250,517


257,205

Total operating expenses

147,878


190,324


448,247


503,672

Loss from operations

(41,485)


(94,795)


(144,720)


(210,141)

Other income (expense):








Interest income

4,971


4,300


14,422


12,269

Interest expense

(2)


(1)


(4)


(25)

Other income (expense), net

2,078


(1,248)


982


(4,268)

Total other income, net

7,047


3,051


15,400


7,976

Loss before provision for income taxes

(34,438)


(91,744)


(129,320)


(202,165)

Provision for income taxes

1,315


1,242


4,279


3,982

Net loss

$          (35,753)


$          (92,986)


$       (133,599)


$       (206,147)









Net loss per share, basic and diluted

$              (0.30)


$              (0.79)


$              (1.11)


$              (1.77)

Weighted-average shares of common stock used in
computing net loss per share, basic and diluted

120,733,030


117,728,293


120,067,168


116,693,008



(1)

The following table represents revenue by source for the periods indicated (in thousands). Spatial products includes the Company's Visium and Xenium products:

 

Three Months Ended
September 30,


Nine Months Ended
September 30,


2024


2023


2024


2023

Instruments








Chromium

$              7,641


$           12,231


$           24,283


$           36,716

Spatial

11,415


22,711


44,078


48,357

Total instruments revenue

19,056


34,942


68,361


85,073

Consumables








Chromium

96,536


100,282


274,571


302,172

Spatial

29,668


14,091


85,330


37,067

Total consumables revenue

126,204


114,373


359,901


339,239

Services

6,394


4,329


17,502


10,436

Total revenue

$         151,654


$         153,644


$         445,764


$         434,748


The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands):

 

Three Months Ended
September 30,


Nine Months Ended
September 30,


2024


2023


2024


2023

Americas








United States

$           84,723


$           96,094


$         250,032


$         260,769

Americas (excluding United States)

3,099


2,917


10,511


8,581

Total Americas

87,822


99,011


260,543


269,350

Europe, Middle East and Africa

37,851


32,019


109,934


91,687

Asia-Pacific








China

15,030


12,431


42,692


39,217

Asia-Pacific (excluding China)

10,951


10,183


32,595


34,494

Total Asia-Pacific

25,981


22,614


75,287


73,711

Total revenue

$         151,654


$         153,644


$         445,764


$         434,748



(2)

Includes stock-based compensation expense as follows:

 

Three Months Ended
September 30,


Nine Months Ended
September 30,

(in thousands)

2024


2023


2024


2023

Cost of revenue

$              2,169


$              1,844


$              6,127


$              5,140

Research and development

15,978


17,856


50,728


55,196

Selling, general and administrative

15,763


20,535


51,354


67,696

Total stock-based compensation expense

$           33,910


$           40,235


$         108,209


$         128,032

 

10x Genomics, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)



September 30,
2024


December 31,
2023

Assets




Current assets:




Cash and cash equivalents

$         398,159


$         359,284

Marketable securities

—


29,411

Accounts receivable, net

83,525


114,832

Inventory

94,050


73,706

Prepaid expenses and other current assets

18,159


18,789

Total current assets

593,893


596,022

Property and equipment, net

258,759


279,571

Operating lease right-of-use assets

59,579


65,361

Goodwill

4,511


4,511

Intangible assets, net

16,149


16,616

Other noncurrent assets

4,903


3,062

Total assets

$         937,794


$         965,143

Liabilities and stockholders' equity




Current liabilities:




Accounts payable

$           26,210


$           15,738

Accrued compensation and related benefits

30,080


30,105

Accrued expenses and other current liabilities

37,770


56,648

Deferred revenue

17,760


13,150

Operating lease liabilities

9,415


11,521

Total current liabilities

121,235


127,162

Operating lease liabilities, noncurrent

76,461


83,849

Deferred revenue, noncurrent

12,349


8,814

Other noncurrent liabilities

4,945


4,275

Total liabilities

214,990


224,100

Commitments and contingencies




Stockholders' equity:




Preferred stock

—


—

Common stock

2


2

Additional paid-in capital

2,140,789


2,025,890

Accumulated deficit

(1,418,019)


(1,284,420)

Accumulated other comprehensive income (loss)

32


(429)

Total stockholders' equity

722,804


741,043

Total liabilities and stockholders' equity

$         937,794


$         965,143

 

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SOURCE 10x Genomics, Inc.