10x Genomics, Inc. (Nasdaq: TXG) today reported financial results
for the second quarter ended June 30, 2020.
Recent Highlights
- Revenue was $42.9 million for the second quarter, representing
a 23% decrease over the corresponding period in 2019, with the
decline resulting from widespread customer lab closures related to
the COVID-19 pandemic.
- Executed on our product development roadmap and launched
several new products for our customers across both our Chromium and
Visium platforms, including:
- Targeted Gene Expression for our Chromium platform to enable
scientists to focus their research on the cell types and biomarkers
that matter most. Our Targeted Gene Expression product for Visium
is planned for later this year;
- Single-cell Multiome ATAC+Gene Expression for our Chromium
platform to enable simultaneous analysis of epigenetic programming
and gene expression across thousands to tens of thousands of cells
in a single experiment;
- Next-generation Immune Profiling product for our Chromium
platform offering up to a 60 percent increase in gene detection
sensitivity for a more comprehensive approach to simultaneously
examine cellular heterogeneity of the immune system, T and B cell
repertoire diversity, and antigen specificity at single cell
resolution; and
- Visium Spatial Gene Expression with Immunofluorescence,
expanding Visium into multi-omics and allowing whole transcriptome
spatial analysis and immunofluorescence protein detection to be
performed in the same tissue.
- Launched the Visium Clinical Translational Research Network to
improve and accelerate workflows related to assessing the spatial
cellular relationship in clinical translational research studies
and unveiled the first 45 members including GSK, Johns Hopkins
Medical Institutions and Mass General Cancer Center.
“Due to the efforts and perseverance of the 10x
team, we were able to successfully execute across the business and
launch a number of breakthrough products in the face of significant
challenges during the quarter,” said Serge Saxonov, Co-Founder and
CEO of 10x Genomics. “While we may face continued near-term
disruption related to the pandemic, recent events have reinforced
the importance of mastering biology, and I am as confident as ever
in our long-term opportunity.”
Second Quarter 2020 Financial
Results
Revenue was $42.9 million for the three months
ended June 30, 2020, a 23% decrease from $55.8 million for the
three months ended June 30, 2019. This decline was a result of
widespread customer lab closures related to the COVID-19
pandemic.
Gross margin was 77% for the second quarter of
2020, as compared to 73% 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 $72.3 million for the
second quarter of 2020, a 41% increase from $51.2 million for the
three months ended June 30, 2019, primarily due to increased
personnel-related expenses, including stock-based compensation.
Operating loss was $39.4 million for the second
quarter of 2020, as compared to $10.4 million for the corresponding
prior year period. This includes $13.9 million of stock-based
compensation for the second quarter of 2020, as compared to $3.0
million for the second quarter of 2019.
Net loss was $40.2 million for the second
quarter of 2020, as compared to a net loss of $10.9 million for the
corresponding prior year period.
Cash and cash equivalents were $339.8 million as
of June 30, 2020.
Update on Full Year 2020
Outlook
On April 9, 2020, 10x Genomics 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 remains a highly fluid situation, and while the
Company continues to monitor the recent developments related to the
continued spread or potential resurgence of the pandemic, 10x
Genomics is unable to reasonably estimate the impact it may have on
near-term financials and operating results.
Webcast and Conference Call
Information
10x Genomics will host a conference call to
discuss the second quarter 2020 financial results, business
developments and outlook after market close on Tuesday,
August 11, 2020 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. 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 1,200 research papers on
discoveries ranging from oncology to immunology and neuroscience.
The company’s patent portfolio comprises more than 775 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. 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 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 and Comprehensive Loss(Unaudited)(In thousands,
except share and per share data)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenue |
$ |
42,905 |
|
|
|
$ |
55,819 |
|
|
|
$ |
114,810 |
|
|
|
$ |
109,397 |
|
|
Cost of revenue (1) |
10,052 |
|
|
|
15,006 |
|
|
|
25,160 |
|
|
|
28,971 |
|
|
Gross profit |
32,853 |
|
|
|
40,813 |
|
|
|
89,650 |
|
|
|
80,426 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development (1) |
27,535 |
|
|
|
18,034 |
|
|
|
53,527 |
|
|
|
32,999 |
|
|
Selling, general and administrative (1) |
44,416 |
|
|
|
32,571 |
|
|
|
94,803 |
|
|
|
59,464 |
|
|
Accrued contingent liabilities |
322 |
|
|
|
570 |
|
|
|
624 |
|
|
|
1,360 |
|
|
Total operating expenses |
72,273 |
|
|
|
51,175 |
|
|
|
148,954 |
|
|
|
93,823 |
|
|
Loss from operations |
(39,420 |
) |
|
|
(10,362 |
) |
|
|
(59,304 |
) |
|
|
(13,397 |
) |
|
Other income (expense): |
|
|
|
|
|
|
|
Interest income |
125 |
|
|
|
242 |
|
|
|
1,443 |
|
|
|
505 |
|
|
Interest expense |
(306 |
) |
|
|
(695 |
) |
|
|
(968 |
) |
|
|
(1,379 |
) |
|
Other expense (income), net |
(144 |
) |
|
|
5 |
|
|
|
(240 |
) |
|
|
(141 |
) |
|
Loss on extinguishment of debt |
— |
|
|
|
— |
|
|
|
(1,521 |
) |
|
|
— |
|
|
Total other expense |
(325 |
) |
|
|
(448 |
) |
|
|
(1,286 |
) |
|
|
(1,015 |
) |
|
Loss before provision for
income taxes |
(39,745 |
) |
|
|
(10,810 |
) |
|
|
(60,590 |
) |
|
|
(14,412 |
) |
|
Provision for income
taxes |
422 |
|
|
|
68 |
|
|
|
720 |
|
|
|
102 |
|
|
Net loss |
$ |
(40,167 |
) |
|
|
$ |
(10,878 |
) |
|
|
$ |
(61,310 |
) |
|
|
$ |
(14,514 |
) |
|
Other comprehensive
income: |
|
|
|
|
|
|
|
Foreign currency translation adjustment |
355 |
|
|
|
27 |
|
|
|
360 |
|
|
|
3 |
|
|
Comprehensive loss |
$ |
(39,812 |
) |
|
|
$ |
(10,851 |
) |
|
|
$ |
(60,950 |
) |
|
|
$ |
(14,511 |
) |
|
Net loss per share, basic and
diluted |
$ |
(0.41 |
) |
|
|
$ |
(0.70 |
) |
|
|
$ |
(0.63 |
) |
|
|
$ |
(0.96 |
) |
|
Weighted-average shares of
common stock used in computing net loss per share, basic and
diluted |
98,978,283 |
|
|
|
15,568,419 |
|
|
|
97,903,687 |
|
|
|
15,187,258 |
|
|
(1) Includes stock-based compensation
expense as follows:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(in
thousands) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Cost of revenue |
$ |
463 |
|
|
$ |
58 |
|
|
$ |
710 |
|
|
$ |
90 |
|
Research
and development |
6,044 |
|
|
1,291 |
|
|
8,931 |
|
|
1,798 |
|
Selling,
general and administrative |
7,348 |
|
|
1,676 |
|
|
10,932 |
|
|
2,496 |
|
Total stock-based compensation expense |
$ |
13,855 |
|
|
$ |
3,025 |
|
|
$ |
20,573 |
|
|
$ |
4,384 |
|
10x Genomics,
Inc.Condensed Consolidated Balance
Sheets(Unaudited)(In thousands, except share and per share
data)
|
June 30, 2020 |
|
December 31, 2019 |
Assets |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
339,840 |
|
|
|
$ |
424,166 |
|
|
Restricted cash |
57,849 |
|
|
|
— |
|
|
Accounts receivable, net |
22,726 |
|
|
|
33,371 |
|
|
Inventory |
21,758 |
|
|
|
15,270 |
|
|
Prepaid expenses and other current assets |
9,411 |
|
|
|
8,033 |
|
|
Total current assets |
451,584 |
|
|
|
480,840 |
|
|
Property
and equipment, net |
55,930 |
|
|
|
48,821 |
|
|
Restricted cash |
6,001 |
|
|
|
52,327 |
|
|
Operating lease right-of-use
assets |
43,137 |
|
|
|
— |
|
|
Other
assets |
26,150 |
|
|
|
23,935 |
|
|
Total assets |
$ |
582,802 |
|
|
|
$ |
605,923 |
|
|
Liabilities and stockholders’ equity |
|
|
|
Current
liabilities: |
|
|
|
Accrued contingent liabilities |
$ |
75,176 |
|
|
|
$ |
— |
|
|
Accounts payable |
9,916 |
|
|
|
13,028 |
|
|
Accrued compensation and related benefits |
10,276 |
|
|
|
12,394 |
|
|
Accrued expenses and other current liabilities |
19,442 |
|
|
|
24,448 |
|
|
Term loans, current portion |
— |
|
|
|
9,882 |
|
|
Deferred revenue, current |
3,432 |
|
|
|
3,297 |
|
|
Operating lease liabilities |
3,938 |
|
|
|
— |
|
|
Total current liabilities |
122,180 |
|
|
|
63,049 |
|
|
Term
loans, noncurrent portion |
— |
|
|
|
19,837 |
|
|
Accrued
contingent liabilities |
— |
|
|
|
68,658 |
|
|
Accrued
license fee, noncurrent |
11,223 |
|
|
|
16,251 |
|
|
Deferred
rent, noncurrent |
— |
|
|
|
16,120 |
|
|
Operating lease liabilities, noncurrent |
55,228 |
|
|
|
— |
|
|
Other
noncurrent liabilities |
2,902 |
|
|
|
1,925 |
|
|
Total liabilities |
191,533 |
|
|
|
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 June 30, 2020 and
December 31, 2019 |
— |
|
|
|
— |
|
|
Common stock, $0.00001 par value; 1,100,000,000 shares authorized
and 100,259,182 shares issued and outstanding as of June 30,
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 |
714,630 |
|
|
|
682,494 |
|
|
Accumulated deficit |
(323,677 |
) |
|
|
(262,367 |
) |
|
Accumulated other comprehensive gain (loss) |
314 |
|
|
|
(46 |
) |
|
Total stockholders’ equity |
391,269 |
|
|
|
420,083 |
|
|
Total liabilities and stockholders’ equity |
$ |
582,802 |
|
|
|
$ |
605,923 |
|
|
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