10x Genomics, Inc. (Nasdaq: TXG) today reported financial results
for the third quarter ended September 30, 2020.
Recent Highlights
- Revenue was $71.8
million for the third quarter, representing a 17% increase over the
corresponding period in 2019 and a 67% increase compared to the
second quarter of 2020
- Completed the
acquisitions of ReadCoor and CartaNA, advancing 10x Genomics into
In Situ analysis with comprehensive and foundational intellectual
property, key technology advances and deep talent and expertise in
the emerging field
- Completed a
follow-on public offering of 4,600,000 shares of common stock
resulting in approximately $482.2 million in net proceeds
"Our strong performance this quarter
demonstrates our ability to execute across all facets of the
business," said Serge Saxonov, Co-Founder and CEO of 10x Genomics.
"We remain focused on the frontiers of scientific discovery and we
will continue to invest in the vast opportunities that lie before
us, both now and well into the future."
Third Quarter 2020 Financial Results
Revenue was $71.8 million for the three months
ended September 30, 2020, a 17% increase from $61.2 million for the
three months ended September 30, 2019. This increase was primarily
the result of increased consumables revenue driven by growth in the
instrument installed base, partially offset by decreased demand due
to ongoing lab closures resulting from COVID-19.
Gross margin was 80% for the third quarter of
2020, as compared to 75% 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 $122.7 million for the
third quarter of 2020, a 124% increase from $54.8 million for the
three months ended September 30, 2019, and include $40.6 million of
in-process research and development expense related to intellectual
property purchased in connection with the acquisition of CartaNA.
Other drivers of the increase in operating expenses this quarter
include increased personnel expenses, including stock-based
compensation, and increased outside legal expenses.
Operating loss was $65.3 million for the third
quarter of 2020, as compared to $9.1 million for the corresponding
prior year period. This includes $13.8 million of stock-based
compensation for the third quarter of 2020, as compared to $3.9
million for the third quarter of 2019.
Net loss was $65.8 million for the third quarter
of 2020, as compared to a net loss of $9.6 million for the
corresponding prior year period.
Cash and cash equivalents were $768.8 million as
of September 30, 2020, which include net proceeds of $482.2 million
arising from our successfully completed follow-on public
offering.
Full Year 2020 GuidanceAs previously announced,
10x Genomics has withdrawn its annual revenue guidance for 2020 due
to the evolving environment and continued uncertainties from the
impact of COVID-19.
Webcast and Conference Call
Information
10x Genomics will host a conference call to
discuss the third quarter 2020 financial results, business
developments and outlook after market close on Tuesday, November
10, 2020 at 2:00 PM Pacific Time / 5:00 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 2,000 research papers on
discoveries ranging from oncology to immunology and neuroscience.
The company’s patent portfolio comprises more than 950 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 |
|
|
Nine
Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
$ |
71,817 |
|
$ |
61,207 |
|
$ |
186,627 |
|
$ |
170,604 |
|
Cost of revenue (1) |
|
14,411 |
|
|
15,480 |
|
|
39,571 |
|
|
44,451 |
|
Gross profit |
|
57,406 |
|
|
45,727 |
|
|
147,056 |
|
|
126,153 |
|
Operating expenses: |
|
|
|
|
Research and development (1) |
|
30,143 |
|
|
22,209 |
|
|
83,670 |
|
|
55,208 |
|
In-process research and development |
|
40,637 |
|
|
— |
|
|
40,637 |
|
|
— |
|
Selling, general and administrative (1) |
|
51,549 |
|
|
32,614 |
|
|
146,352 |
|
|
92,078 |
|
Accrued contingent liabilities |
|
332 |
|
|
— |
|
|
956 |
|
|
1,360 |
|
Total operating expenses |
|
122,661 |
|
|
54,823 |
|
|
271,615 |
|
|
148,646 |
|
Loss from operations |
|
(65,255 |
) |
|
(9,096 |
) |
|
(124,559 |
) |
|
(22,493 |
) |
Other income (expense): |
|
|
|
|
Interest income |
|
28 |
|
|
481 |
|
|
1,471 |
|
|
986 |
|
Interest expense |
|
(397 |
) |
|
(708 |
) |
|
(1,365 |
) |
|
(2,087 |
) |
Other expense (income), net |
|
361 |
|
|
(272 |
) |
|
121 |
|
|
(413 |
) |
Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
(1,521 |
) |
|
— |
|
Total other expense |
|
(8 |
) |
|
(499 |
) |
|
(1,294 |
) |
|
(1,514 |
) |
Loss before provision for income taxes |
|
(65,263 |
) |
|
(9,595 |
) |
|
(125,853 |
) |
|
(24,007 |
) |
Provision for income taxes |
|
585 |
|
|
8 |
|
|
1,305 |
|
|
110 |
|
Net loss |
$ |
(65,848 |
) |
$ |
(9,603 |
) |
$ |
(127,158 |
) |
$ |
(24,117 |
) |
Other comprehensive income: |
|
|
|
|
Foreign currency translation adjustment |
|
(366 |
) |
|
(126 |
) |
|
(6 |
) |
|
(123 |
) |
Comprehensive loss |
$ |
(66,214 |
) |
$ |
(9,729 |
) |
$ |
(127,164 |
) |
$ |
(24,240 |
) |
Net loss per share, basic and diluted |
$ |
(0.65 |
) |
$ |
(0.33 |
) |
$ |
(1.28 |
) |
$ |
(1.21 |
) |
Weighted-average shares of common stock used in computing net loss
per share, basic and diluted |
|
101,341,945 |
|
|
29,184,218 |
|
|
99,058,139 |
|
|
19,904,184 |
|
(1) Includes stock-based compensation expense as follows:
|
|
Three
Months Ended |
|
Nine
Months Ended |
|
|
September 30, |
|
September 30, |
(in thousands) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Cost of revenue |
$ |
398 |
|
$ |
81 |
|
$ |
1,108 |
|
$ |
171 |
|
Research and development |
|
5,467 |
|
|
1,650 |
|
|
14,398 |
|
|
3,448 |
|
Selling, general and administrative |
|
7,919 |
|
|
2,143 |
|
|
18,851 |
|
|
4,639 |
|
Total stock-based compensation expense |
$ |
13,784 |
|
$ |
3,874 |
|
$ |
34,357 |
|
$ |
8,258 |
|
10x Genomics,
Inc.Condensed Consolidated Balance
Sheets(Unaudited)(In thousands, except share and per share
data)
|
|
September 30, |
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
768,773 |
|
$ |
424,166 |
|
Restricted cash |
|
59,451 |
|
|
— |
|
Accounts receivable, net |
|
36,026 |
|
|
33,371 |
|
Inventory |
|
25,118 |
|
|
15,270 |
|
Prepaid expenses and other current assets |
|
11,083 |
|
|
8,033 |
|
Total current assets |
|
900,451 |
|
|
480,840 |
|
Property and equipment, net |
|
65,111 |
|
|
48,821 |
|
Restricted cash |
|
5,474 |
|
|
52,327 |
|
Operating lease right-of-use assets |
|
45,379 |
|
|
— |
|
Other assets |
|
26,129 |
|
|
23,935 |
|
Total assets |
$ |
1,042,544 |
|
$ |
605,923 |
|
Liabilities and stockholders’ equity |
|
|
Current liabilities: |
Accrued contingent liabilities |
$ |
77,558 |
|
$ |
— |
|
Accounts payable |
|
9,490 |
|
|
13,028 |
|
Accrued compensation and related benefits |
|
11,189 |
|
|
12,394 |
|
Accrued expenses and other current liabilities |
|
38,583 |
|
|
24,448 |
|
Term loans, current portion |
|
— |
|
|
9,882 |
|
Deferred revenue, current |
|
3,775 |
|
|
3,297 |
|
Operating lease liabilities |
|
4,976 |
|
|
— |
|
Total current liabilities |
|
145,571 |
|
|
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 |
|
56,618 |
|
|
— |
|
Other noncurrent liabilities |
|
4,052 |
|
|
1,925 |
|
Total liabilities |
|
217,464 |
|
|
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 September 30, 2020 and
December 31, 2019 |
|
— |
|
|
— |
|
Common stock, $0.00001 par value; 1,100,000,000 shares authorized
and 105,599,976 shares issued and outstanding as of September 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 |
|
1,214,655 |
|
|
682,494 |
|
Accumulated deficit |
|
(389,525 |
) |
|
(262,367 |
) |
Accumulated other comprehensive loss |
|
(52 |
) |
|
(46 |
) |
Total stockholders’ equity |
|
825,080 |
|
|
420,083 |
|
Total liabilities and stockholders’ equity |
$ |
1,042,544 |
|
$ |
605,923 |
|
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