10x Genomics, Inc. (Nasdaq: TXG) today reported financial results
for the quarter ended March 31, 2020.
Recent Highlights
- Revenue of $71.9 million for the first quarter, representing a
34% increase over the corresponding period of 2019
- Announced a broad range of new products and new capabilities at
the Advances in Genome Biology and Technology (AGBT) Meeting in
February
- Began shipping and completed initial placements of the Chromium
Connect instrument
“We are doing all we can to support our customers as they race
to understand and fight the COVID-19 pandemic,” said Serge Saxonov,
Co-founder and CEO of 10x Genomics. “Despite the temporary
uncertainty in the macro environment, we see tremendous
opportunities ahead. Our mission to accelerate the mastery of
biology is more important now than it has ever been, and I am
confident that the future holds an even greater appreciation and
appetite for scientific discovery.”
First Quarter 2020 Financial ResultsRevenue was
$71.9 million for the three months ended March 31, 2020, a 34%
increase from $53.6 million for the three months ended March 31,
2019.
Gross margin was 79% for the first quarter of 2020, as compared
to 74% for the corresponding prior year period. The increase in
gross margin was driven primarily by lower accrued royalties
related to ongoing litigation.
Operating expenses were $76.7 million for the first quarter of
2020, an 80% increase from $42.6 million for the three months ended
March 31, 2019, primarily due to increases in expenses related to
ongoing litigation, personnel-related expenses and stock-based
compensation.
Operating loss was $19.9 million for the first quarter of 2020,
as compared to $3.0 million for the corresponding prior year
period. This includes $6.7 million of stock-based compensation for
the first quarter of 2020, as compared to $1.4 million for the
first quarter of 2019.
Net loss was $21.1 million for the first quarter of 2020, as
compared to a net loss of $3.6 million for the corresponding prior
year period.
Cash and cash equivalents were $372.4 million as of March 31,
2020. Our cash balance at quarter end includes the impact of the
repayment in full of our term loan borrowings with Silicon Valley
Bank totaling $31 million.
On April 9, 2020, 10x withdrew its annual
revenue guidance for 2020 due to the evolving environment and
continued uncertainties from the impact of COVID-19. The COVID-19
pandemic is a highly fluid situation and it is not currently
possible for the Company to reasonably estimate the impact it may
have on financial and operating results.
Webcast and Conference Call Information10x
Genomics will host a conference call to discuss the first quarter
2020 financial results, business developments and outlook after
market close on Monday, May 11 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 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 97 of the
top 100 global research institutions and 19 of the top 20 global
pharmaceutical companies, and have been cited in over 860 research
papers on discoveries ranging from oncology to immunology and
neuroscience. The company's patent portfolio comprises more than
740 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
expectations regarding the potential impact of the COVID-19
outbreak on the company’s business operations, financial
performance and results of operations as well as the company’s
ability to meet its 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. 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 March
31, |
|
|
2020 |
|
|
2019 |
|
Revenue |
|
$ |
71,905 |
|
|
$ |
53,578 |
|
Cost of revenue (1) |
|
|
15,108 |
|
|
|
13,965 |
|
Gross profit |
|
|
56,797 |
|
|
|
39,613 |
|
Operating expenses: |
|
|
|
|
|
|
Research and development (1) |
|
|
25,992 |
|
|
|
14,965 |
|
Selling, general and administrative (1) |
|
|
50,387 |
|
|
|
26,893 |
|
Accrued contingent liabilities |
|
|
302 |
|
|
|
790 |
|
Total operating expenses |
|
|
76,681 |
|
|
|
42,648 |
|
Loss from operations |
|
|
(19,884 |
) |
|
|
(3,035 |
) |
Other income (expense): |
|
|
|
|
|
|
Interest income |
|
|
1,318 |
|
|
|
263 |
|
Interest expense |
|
|
(662 |
) |
|
|
(684 |
) |
Other expenses, net |
|
|
(96 |
) |
|
|
(146 |
) |
Loss on extinguishment of debt |
|
|
(1,521 |
) |
|
|
— |
|
Total other expense |
|
|
(961 |
) |
|
|
(567 |
) |
Loss before provision for income
taxes |
|
|
(20,845 |
) |
|
|
(3,602 |
) |
Provision for income taxes |
|
|
298 |
|
|
|
34 |
|
Net loss |
|
$ |
(21,143 |
) |
|
$ |
(3,636 |
) |
Other comprehensive income
(loss): |
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
5 |
|
|
|
(24 |
) |
Comprehensive loss |
|
$ |
(21,138 |
) |
|
$ |
(3,660 |
) |
Net loss per share, basic and
diluted |
|
$ |
(0.22 |
) |
|
$ |
(0.25 |
) |
Weighted-average shares of common
stock used in computing net loss per share, basic and diluted |
|
|
96,829,093 |
|
|
|
14,801,867 |
|
(1) Includes stock-based compensation expense as
follows:
|
Three months ended March 31, |
(in thousands) |
|
2020 |
|
|
2019 |
Cost of revenue |
$ |
247 |
|
$ |
32 |
Research and development |
|
2,887 |
|
|
507 |
Selling, general and
administrative |
|
3,584 |
|
|
820 |
Total stock-based compensation
expense |
$ |
6,718 |
|
$ |
1,359 |
10x Genomics,
Inc.Condensed Consolidated Balance
Sheets(Unaudited) (In thousands, except share and per
share data)
|
|
March 31,2020 |
|
December 31,2019 |
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
372,428 |
|
|
$ |
424,166 |
|
Accounts receivable, net |
|
|
30,851 |
|
|
|
33,371 |
|
Inventory |
|
|
19,357 |
|
|
|
15,270 |
|
Prepaid expenses and other current assets |
|
|
7,096 |
|
|
|
8,033 |
|
Total current assets |
|
|
429,732 |
|
|
|
480,840 |
|
Property and equipment, net |
|
|
52,384 |
|
|
|
48,821 |
|
Restricted cash |
|
|
59,475 |
|
|
|
52,327 |
|
Operating lease right-of-use
assets |
|
|
44,048 |
|
|
|
— |
|
Other assets |
|
|
24,745 |
|
|
|
23,935 |
|
Total assets |
|
$ |
610,384 |
|
|
$ |
605,923 |
|
Liabilities and
stockholders’s equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
13,505 |
|
|
$ |
13,028 |
|
Accrued compensation and related benefits |
|
|
18,623 |
|
|
|
12,394 |
|
Accrued expenses and other current liabilities |
|
|
20,093 |
|
|
|
24,448 |
|
Term loans, current portion |
|
|
— |
|
|
|
9,882 |
|
Deferred revenue, current |
|
|
3,394 |
|
|
|
3,297 |
|
Operating lease liabilities |
|
|
3,453 |
|
|
|
— |
|
Total current liabilities |
|
|
59,068 |
|
|
|
63,049 |
|
Term loans, noncurrent portion |
|
|
— |
|
|
|
19,837 |
|
Accrued contingent liabilities |
|
|
73,314 |
|
|
|
68,658 |
|
Accrued license fee, noncurrent |
|
|
11,223 |
|
|
|
16,251 |
|
Deferred rent, noncurrent |
|
|
— |
|
|
|
16,120 |
|
Operating lease liabilities, noncurrent |
|
|
56,166 |
|
|
|
— |
|
Other noncurrent liabilities |
|
|
1,545 |
|
|
|
1,925 |
|
Total liabilities |
|
|
201,316 |
|
|
|
185,840 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
Preferred stock, $0.00001 par value; 100,000,000 shares authorized,
no shares issued and outstanding as of March 31, 2020 and December
31, 2019 |
|
|
— |
|
|
|
— |
|
Common stock, $0.00001 par value; 1,100,000,000 shares authorized
and 98,145,208 shares issued and outstanding as of March 31, 2020;
1,100,000,000 shares authorized and 96,241,596 shares issued and
outstanding as of December 31, 2019 |
|
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
|
692,617 |
|
|
|
682,494 |
|
Accumulated deficit |
|
|
(283,510 |
) |
|
|
(262,367 |
) |
Accumulated other comprehensive loss |
|
|
(41 |
) |
|
|
(46 |
) |
Total stockholders’ equity |
|
|
409,068 |
|
|
|
420,083 |
|
Total liabilities and stockholders’ equity |
|
$ |
610,384 |
|
|
$ |
605,923 |
|
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