10x Genomics Reports Third Quarter 2019 Financial Results and Provides 2019 Revenue Guidance
November 07 2019 - 4:03PM
10x Genomics, Inc. (Nasdaq: TXG), today reported financial results
for the third quarter ended September 30, 2019.
Recent Highlights
- Revenue of $61.2 million for the third quarter of 2019,
representing a 67% increase over the third quarter of 2018
- Completed initial public offering, raising $410.8 million of
net proceeds, after underwriting discounts and commissions and
other offering expenses
“During the quarter, we had solid execution across all fronts
demonstrating the strength of our business,” said Serge Saxonov,
PhD, CEO and co-founder of 10x Genomics. “Our Chromium platform
continues to see strong momentum with increasing publications and
scientific discoveries coming out of our customers’ labs. In
September, we began taking pre-orders for our new Visium Spatial
Gene Expression Solution and are encouraged by the early interest
in this product from both new and existing customers. Following the
successful completion of our IPO, we look forward to continuing our
rapid pace of innovation to lead the transformation of biology in
the coming decades.”
Third Quarter 2019 Financial ResultsRevenue was
$61.2 million in the three months ended September 30, 2019, a 67%
increase from $36.6 million in the three months ended September 30,
2018.
Gross margin was 75% for the third quarter of 2019, as compared
to 86% in the corresponding prior year period. The decrease in
gross margin was driven by higher accrued royalties related to
ongoing litigation.
Operating expenses were $54.8 million for the third quarter of
2019, as compared to $46.3 million in the corresponding prior year
period, an increase of 18%.
Net loss was $9.6 million in the third quarter of 2019, as
compared to $15.3 million in the corresponding prior year
period.
Cash and cash equivalents were $427.4 million as of September
30, 2019. In September 2019, 10x Genomics completed an initial
public offering, raising $410.8 million net of underwriting
discounts and commissions and other offering expenses.
2019 Financial Guidance10x Genomics expects
full year 2019 revenue to be in the range of $238 million to $242
million, representing 63% to 65% growth over full year 2018
revenue.
Webcast and Conference Call Information10x
Genomics will host a conference call to discuss the third quarter
2019 financial results, business developments and outlook after
market close on November 7, 2019 at 2:00 PM Pacific Time / 5:00 PM
Eastern Time. The conference call can be accessed live over the
phone (877) 665-6515 for U.S. callers or (602) 563-8470 for
international callers (Conference ID: 5899936). A live and archived
webcast of the event will be available at
http://investors.10xGenomics.com for at least 14 days following the
event.
About 10x Genomics10x Genomics is a life
science technology company building products to interrogate,
understand and master biology to advance human health. The
company’s 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 93 of the top 100 global research institutions and
90 percent of the top 20 global pharmaceutical companies, and have
been cited in over 570 research papers on discoveries ranging from
oncology to immunology and neuroscience. The company's patent
portfolio comprises more than 650 issued patents and patent
applications.
Forward Looking StatementsThis 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.
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as “may,” “will,” “should,”
“expect,” “plan,” “anticipate,” “could,” “intend,” “target,”
“project” “contemplate,” “believe,” “estimate,” “predict,”
“potential” or “continue” or the negatives of these terms or
variations of them or similar terminology. These
forward-looking statements include statements regarding 10x
Genomics, Inc.’s expected financial results for the year ended
December 31, 2019, which involve risks and uncertainties that could
cause 10x Genomics, Inc.’s actual results to differ materially from
the anticipated results and expectations expressed in these
forward-looking statements. 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. These and additional 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. 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 its 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 Information10x 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.
ContactsInvestors:investors@10xgenomics.com
Media:media@10xgenomics.com
10x Genomics,
Inc.Condensed Consolidated Statements of
Operations and Comprehensive Loss(Unaudited)(In thousands,
except share and per share data)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Revenue |
$ |
61,207 |
|
|
$ |
36,607 |
|
|
$ |
170,604 |
|
|
$ |
95,759 |
|
Cost of revenue |
|
15,480 |
|
|
|
5,241 |
|
|
|
44,451 |
|
|
|
13,761 |
|
Gross profit |
|
45,727 |
|
|
|
31,366 |
|
|
|
126,153 |
|
|
|
81,998 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
22,209 |
|
|
|
11,085 |
|
|
|
55,208 |
|
|
|
34,457 |
|
In-process research and development |
|
— |
|
|
|
16,104 |
|
|
|
— |
|
|
|
22,310 |
|
Selling, general and administrative |
|
32,614 |
|
|
|
19,110 |
|
|
|
92,078 |
|
|
|
61,030 |
|
Accrued contingent liabilities |
|
— |
|
|
|
— |
|
|
|
1,360 |
|
|
|
— |
|
Total operating expenses |
|
54,823 |
|
|
|
46,299 |
|
|
|
148,646 |
|
|
|
117,797 |
|
Loss from operations |
|
(9,096 |
) |
|
|
(14,933 |
) |
|
|
(22,493 |
) |
|
|
(35,799 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
481 |
|
|
|
294 |
|
|
|
986 |
|
|
|
755 |
|
Interest expense |
|
(708 |
) |
|
|
(659 |
) |
|
|
(2,087 |
) |
|
|
(1,721 |
) |
Other expenses, net |
|
(272 |
) |
|
|
(31 |
) |
|
|
(413 |
) |
|
|
(151 |
) |
Total other expense |
|
(499 |
) |
|
|
(396 |
) |
|
|
(1,514 |
) |
|
|
(1,117 |
) |
Loss before provision for income
taxes |
|
(9,595 |
) |
|
|
(15,329 |
) |
|
|
(24,007 |
) |
|
|
(36,916 |
) |
Provision for income taxes |
|
8 |
|
|
|
16 |
|
|
|
110 |
|
|
|
45 |
|
Net loss |
$ |
(9,603 |
) |
|
$ |
(15,345 |
) |
|
$ |
(24,117 |
) |
|
$ |
(36,961 |
) |
Other comprehensive income
(loss): |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
(126 |
) |
|
|
1 |
|
|
|
(123 |
) |
|
|
17 |
|
Comprehensive loss |
$ |
(9,729 |
) |
|
$ |
(15,344 |
) |
|
$ |
(24,240 |
) |
|
$ |
(36,944 |
) |
Net loss per share attributable
to common stockholders, basic and diluted |
$ |
(0.33 |
) |
|
$ |
(1.13 |
) |
|
$ |
(1.21 |
) |
|
$ |
(2.80 |
) |
Weighted-average shares of common
stock used in computing net loss per share attributable to
common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders, basic and
diluted |
|
29,184,218 |
|
|
|
13,587,288 |
|
|
|
19,904,184 |
|
|
|
13,188,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10x Genomics,
Inc.Condensed Consolidated Balance
Sheets (In thousands, except share and per share
data)
|
September 30,2019 |
|
December 31,2018 |
|
(Unaudited) |
|
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
427,436 |
|
|
$ |
65,080 |
|
Accounts receivable, net |
|
26,150 |
|
|
|
28,088 |
|
Inventory |
|
13,305 |
|
|
|
8,570 |
|
Prepaid expenses and other current assets |
|
7,253 |
|
|
|
4,498 |
|
Total current assets |
|
474,144 |
|
|
|
106,236 |
|
Property and equipment, net |
|
46,840 |
|
|
|
11,127 |
|
Restricted cash |
|
50,053 |
|
|
|
5,008 |
|
Other assets |
|
1,778 |
|
|
|
1,939 |
|
Total assets |
$ |
572,815 |
|
|
$ |
124,310 |
|
Liabilities,
convertible preferred stock and stockholders’ equity
(deficit) |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
11,959 |
|
|
$ |
8,792 |
|
Accrued compensation and related benefits |
|
7,850 |
|
|
|
7,047 |
|
Accrued expenses and other current liabilities |
|
14,267 |
|
|
|
8,172 |
|
Term loans, current portion |
|
7,383 |
|
|
|
4,187 |
|
Accrued legal expenses |
|
3,695 |
|
|
|
1,769 |
|
Deferred revenue, current |
|
3,082 |
|
|
|
2,395 |
|
Total current liabilities |
|
48,236 |
|
|
|
32,362 |
|
Term loans, noncurrent
portion |
|
22,307 |
|
|
|
25,489 |
|
Accrued contingent
liabilities |
|
62,501 |
|
|
|
38,000 |
|
Deferred revenue, noncurrent |
|
1,202 |
|
|
|
1,102 |
|
Deferred rent, noncurrent |
|
16,170 |
|
|
|
3,329 |
|
Other noncurrent liabilities |
|
951 |
|
|
|
771 |
|
Total liabilities |
|
151,367 |
|
|
|
101,053 |
|
Commitments and
contingencies |
|
|
|
|
|
Convertible preferred stock,
$0.00001 par value, no shares authorized and no shares issued and
outstanding as of September 30, 2019; 67,904,871 shares |
|
|
|
|
|
|
|
authorized and 67,704,278
shares issued and outstanding as of December 31, 2018; aggregate
liquidation preference of $242,588 as of December 31, |
|
|
|
|
|
|
|
2018 |
|
— |
|
|
|
243,244 |
|
Stockholders’ equity
(deficit): |
|
|
|
|
|
Preferred stock, $0.00001 par value; 100,000,000 shares
authorized, no shares issued and outstanding as of September 30,
2019 and |
|
|
|
|
|
|
|
December 31, 2018 |
|
— |
|
|
|
— |
|
Common stock, $0.00001 par value; 1,100,000,000 shares authorized
as of September 30, 2019, 96,118,804 shares issued and |
|
|
|
|
|
|
|
outstanding as of September 30, 2019; 190,955,000 shares
authorized as of December 31, 2018, 14,549,801 shares issued
and |
|
|
|
|
|
|
|
outstanding as of December 31, 2018 |
|
2 |
|
|
|
1 |
|
Additional paid-in capital |
|
676,839 |
|
|
|
11,165 |
|
Accumulated deficit |
|
(255,233 |
) |
|
|
(231,116 |
) |
Accumulated other comprehensive loss |
|
(160 |
) |
|
|
(37 |
) |
Total stockholders’ equity (deficit) |
|
421,448 |
|
|
|
(219,987 |
) |
Total liabilities, convertible preferred stock and stockholders’
equity (deficit) |
$ |
572,815 |
|
|
$ |
124,310 |
|
|
|
|
|
|
|
|
|
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