PLEASANTON, Calif., Aug. 8, 2022
/PRNewswire/ -- 10x Genomics, Inc. (Nasdaq: TXG) today reported
financial results for the second quarter ended June 30,
2022.
Recent Highlights
- Revenue was $114.6 million for
the second quarter, representing a 1% decrease over the
corresponding period of 2021.
- Announced the breakthrough capability of single-cell analysis
on FFPE samples with its recently launched Fixed RNA Profiling
Kit.
- Began shipping Visium CytAssist, the company's first spatial
instrument.
- Announced the hiring of Jim
Wilbur, Ph.D., as Chief Commercial Officer.
"Our results this quarter fell short of our expectations as we
navigated some macro headwinds, particularly outside of
the United States," said Serge
Saxonov, Co-founder and CEO of 10x Genomics. "Our topline growth
this year will be slower than our previous expectations, but we
firmly believe the underlying opportunity for our single cell and
spatial technologies is as strong as ever. We are driving our
innovation engine and building on our broad commercial reach so we
can deliver on the full potential of this tremendous
opportunity."
Second Quarter 2022 Financial Results
Revenue was $114.6 million for the
second quarter of 2022, a 1% decrease from $115.8 million for the corresponding prior year
period. This decrease was primarily driven by decreased demand due
to lockdowns in China, delayed
customer reorders in Europe
resulting from a logistics cold-chain issue, execution challenges
and unfavorable foreign exchange headwinds.
Gross margin was 76% for the second quarter of 2022, as compared
to 96% for the corresponding prior year period. The decrease in
gross margin was primarily due to a one-time reversal of
$14.7 million of accrued royalties in
the second quarter of 2021, and higher manufacturing costs, higher
royalty expenses, higher inventory charges and higher warranty
costs.
Operating expenses were $150.0
million for the second quarter of 2022, a 24% increase from
$121.3 million for the corresponding
prior year period. This increase was driven by higher personnel
expenses, including stock-based compensation, increased costs for
facilities and information technology to support operational
expansion, and increased marketing expenses, partially offset by a
decrease in outside legal expenses.
Operating loss was $63.1 million
for the second quarter of 2022, as compared to $10.3 million for the corresponding prior year
period. Operating loss includes $36.3
million of stock-based compensation for the second quarter
of 2022, as compared to $26.9 million
for the corresponding prior year period.
Net loss was $64.5 million for the
second quarter of 2022, as compared to a net loss of $11.1 million for the corresponding prior year
period.
Cash and cash equivalents and marketable securities were
$499.7 million as of June 30,
2022.
2022 Financial Guidance
10x Genomics is updating its outlook for the full year 2022. The
company now expects revenue to be in the range of $500 million to $520
million, representing 2% to 6% growth over full year
2021.
Webcast and Conference Call Information
10x Genomics will host a conference call to discuss the second
quarter 2022 financial results, business developments and outlook
after market close on Monday, August 8,
2022 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 interrogate, understand and master biology to advance
human health. Our integrated solutions include instruments,
consumables and software for analyzing biological systems at a
resolution and scale that matches the complexity of biology. 10x
Genomics products have been adopted by researchers around the world
including in all of the top 100 global research institutions as
ranked by Nature in 2021 based on publications and all of the top
20 global pharmaceutical companies by 2021 research and development
spend and have been cited in over 3,800 research papers on
discoveries ranging from oncology to immunology and neuroscience.
Our patent portfolio comprises more than 1,500 issued patents and
patent applications.
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, 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," "estimate,"
"predict," "potential" or "continue" 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
expectations regarding our business operations, financial
performance and results of operations, including our expectations
regarding revenue and guidance, as well as our ability to meet our
anticipated cash needs for the foreseeable future. These statements
are based on management's current expectations, forecasts, beliefs,
assumptions and information currently available to management, and
actual outcomes and results could differ materially from these
statements due to a number of factors. 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" and elsewhere in the documents
10x Genomics, Inc. files with the Securities and Exchange
Commission from time to time.
Although 10x Genomics, Inc. believes that the expectations
reflected in the forward-looking statements are reasonable, it
cannot provide any assurance that these expectations will prove to
be correct nor can it guarantee that the future results, levels of
activity, performance and events and circumstances reflected in the
forward-looking statements will be achieved or occur. These
forward-looking statements do not reflect the potential impact of
any future acquisitions, mergers, dispositions, joint ventures or
investments 10x Genomics may make. Further, as the COVID-19
pandemic is continuously evolving, such forward-looking statements
may not accurately or fully reflect the potential impact that the
COVID-19 pandemic may have on the business, financial condition,
results of operations and cash flows of 10x Genomics, Inc. The
forward-looking statements in this press release are based on
information available to 10x Genomics, Inc. as of the date hereof,
and 10x Genomics, Inc. disclaims any obligation to update any
forward-looking statements provided to reflect any change in our
expectations or any change in events, conditions, or circumstances
on which any such statement is based, except as required by law.
These forward-looking 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.
Disclosure Information
10x Genomics uses filings with the Securities and
Exchange Commission, our website (www.10xgenomics.com), press
releases, public conference calls, public webcasts and our
social media accounts as means of disclosing material non-public
information and for complying with our 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
June 30,
|
|
Six Months
Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenue
|
$
114,609
|
|
$
115,842
|
|
$
229,105
|
|
$
221,663
|
Cost of revenue
(1)
|
27,704
|
|
4,915
|
|
53,182
|
|
21,975
|
Gross
profit
|
86,905
|
|
110,927
|
|
175,923
|
|
199,688
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development (1)
|
70,685
|
|
53,402
|
|
134,763
|
|
95,285
|
Selling, general and
administrative (1)
|
79,337
|
|
68,703
|
|
146,012
|
|
125,607
|
Accrued contingent
liabilities
|
—
|
|
(850)
|
|
—
|
|
(660)
|
Total operating
expenses
|
150,022
|
|
121,255
|
|
280,775
|
|
220,232
|
Loss from
operations
|
(63,117)
|
|
(10,328)
|
|
(104,852)
|
|
(20,544)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
1,238
|
|
58
|
|
1,807
|
|
108
|
Interest
expense
|
(109)
|
|
(209)
|
|
(237)
|
|
(430)
|
Other (expense)
income, net
|
(1,843)
|
|
521
|
|
(2,243)
|
|
(208)
|
Total other (expense)
income
|
(714)
|
|
370
|
|
(673)
|
|
(530)
|
Loss before provision
for income taxes
|
(63,831)
|
|
(9,958)
|
|
(105,525)
|
|
(21,074)
|
Provision for income
taxes
|
627
|
|
1,094
|
|
1,346
|
|
1,529
|
Net loss
|
$
(64,458)
|
|
$
(11,052)
|
|
$
(106,871)
|
|
$
(22,603)
|
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted
|
$
(0.57)
|
|
$
(0.10)
|
|
$
(0.94)
|
|
$
(0.21)
|
Weighted-average shares
of common stock used in
computing net loss per share, basic and diluted
|
113,574,757
|
|
109,866,294
|
|
113,272,158
|
|
109,293,342
|
|
(1) Includes stock-based
compensation expense as follows:
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
(in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Cost of
revenue
|
$
1,453
|
|
$
841
|
|
$
2,467
|
|
$
1,305
|
Research and
development
|
15,579
|
|
12,140
|
|
26,870
|
|
18,936
|
Selling, general and
administrative
|
19,281
|
|
13,951
|
|
33,023
|
|
22,867
|
Total stock-based
compensation expense
|
$
36,313
|
|
$
26,932
|
|
$
62,360
|
|
$
43,108
|
10x Genomics,
Inc. Condensed Consolidated Balance
Sheets (Unaudited) (In
thousands)
|
|
|
June 30,
2022
|
|
December 31,
2021
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
274,187
|
|
$
587,447
|
Marketable
securities
|
225,546
|
|
—
|
Restricted
cash
|
508
|
|
1,028
|
Accounts receivable,
net
|
76,204
|
|
85,254
|
Inventory
|
70,646
|
|
59,966
|
Prepaid expenses and
other current assets
|
19,141
|
|
13,896
|
Total current
assets
|
666,232
|
|
747,591
|
Property and equipment,
net
|
223,001
|
|
169,492
|
Restricted
cash
|
7,095
|
|
7,598
|
Operating lease
right-of-use assets
|
73,425
|
|
60,918
|
Goodwill
|
4,511
|
|
4,511
|
Intangible assets,
net
|
24,128
|
|
25,397
|
Other noncurrent
assets
|
3,199
|
|
3,319
|
Total
assets
|
$ 1,001,591
|
|
$ 1,018,826
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
26,731
|
|
$
17,351
|
Accrued compensation
and related benefits
|
23,505
|
|
31,626
|
Accrued expenses and
other current liabilities
|
53,222
|
|
50,909
|
Deferred
revenue
|
6,473
|
|
5,340
|
Operating lease
liabilities
|
7,977
|
|
5,131
|
Total current
liabilities
|
117,908
|
|
110,357
|
Accrued license fee,
noncurrent
|
—
|
|
5,814
|
Operating lease
liabilities, noncurrent
|
91,040
|
|
76,847
|
Other noncurrent
liabilities
|
9,127
|
|
8,240
|
Total
liabilities
|
218,075
|
|
201,258
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
—
|
|
—
|
Common
stock
|
2
|
|
2
|
Additional paid-in
capital
|
1,757,671
|
|
1,680,865
|
Accumulated
deficit
|
(970,192)
|
|
(863,321)
|
Accumulated other
comprehensive income (loss)
|
(3,965)
|
|
22
|
Total stockholders'
equity
|
783,516
|
|
817,568
|
Total liabilities and
stockholders' equity
|
$ 1,001,591
|
|
$ 1,018,826
|
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SOURCE 10x Genomics, Inc.