10x Genomics, Inc. (Nasdaq: TXG) today reported financial results
for the fourth quarter and full year ended December 31, 2020 and
provides outlook for full year 2021.
Recent Highlights
- Revenue was $298.8 million for the
full year and $112.2 million for the fourth quarter of 2020,
representing 22% and 49% increases over the corresponding periods
of 2019
- 2,412 Chromium instruments sold as of
December 31, 2020
- More than 2,200 peer-reviewed
publications based on data generated using 10x products
- Operations center in Singapore came
online and began consumables manufacturing
Fourth Quarter
2020 Financial
Results
Revenue was $112.2 million for the three months
ended December 31, 2020, a 49% increase from $75.3 million for the
three months ended December 31, 2019. This increase was primarily
the result of increased consumables revenue driven by growth in the
instrument installed base.
Gross margin was 83% for the fourth quarter of
2020, as compared to 78% for the corresponding prior year period.
The increase in gross margin was driven primarily by a smaller
percentage of product sales being subject to royalties under
ongoing litigation due to the transition to Next GEM products,
partially offset by higher costs from newly introduced
products.
Operating expenses were $502.9 million for the
fourth quarter of 2020, a 653% increase from $66.8 million for the
three months ended December 31, 2019, and included $406.9 million
of in-process research and development expense related to
intellectual property purchased in connection with the acquisition
of ReadCoor. Other drivers of the increase in operating expenses
this quarter include increased personnel expenses, including
stock-based compensation, and increased litigation expenses.
Operating loss was $409.6 million for the fourth
quarter of 2020, as compared to an operating loss of $8.1 million
for the corresponding prior year period. This includes $14.3
million of stock-based compensation for the fourth quarter of 2020,
as compared to $5.1 million for the fourth quarter of 2019.
Net loss was $415.6 million for the fourth
quarter of 2020, as compared to a net loss of $7.1 million for the
corresponding prior year period.
Full Year
2020 Financial
Results
Revenue was $298.8 million for the year ended December 31, 2020,
a 22% increase from $245.9 million for 2019.
Gross margin was 80% for full year 2020, as
compared to 75% for 2019. The increase in gross margin was driven
primarily by a smaller percentage of product sales being subject to
royalties under ongoing litigation due to the transition to Next
GEM products, partially offset by higher costs from newly
introduced products.
Operating expenses were $774.5 million for full
year 2020, as compared to $215.4 million for 2019, an increase of
260%. Operating expenses in 2020 included $447.5 million of
in-process research and development expense related to intellectual
property purchased in connection with the acquisitions of CartaNA
and ReadCoor.
Operating loss was $534.1 million for full year 2020, as
compared to an operating loss of $30.6 million for 2019. This
includes$48.6 million of stock-based compensation for full year
2020, as compared to $13.3 million for full year 2019.
Net loss was $542.7 million for full year 2020,
as compared to a net loss of $31.3 million for 2019. This includes
$447.5 million of in-process research and development expense
described above.
Cash and cash equivalents were $663.6 million as
of December 31, 2020, which include net proceeds of $482.2 million
arising from the successfully completed follow-on stock offering in
September 2020.
2021 Financial
Guidance
10x Genomics expects full year 2021 revenue to
be in the range of $480 million to $500 million, representing 61%
to 67% growth over full year 2020 revenue.
Webcast and
Conference Call
Information
10x Genomics will host a conference call to
discuss the fourth quarter and full year 2020 financial results,
business developments and outlook after market close on Wednesday,
February 17, 2021 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 for 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 in all of the top 100 global
research institutions as ranked by Nature in 2019 based on
publications and all of the top 20 global pharmaceutical companies
by 2019 research and development spend, and have been cited in over
2,200 research papers on discoveries ranging from oncology to
immunology and neuroscience. The company’s patent portfolio
comprises more than 1,000 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 the negatives of these
terms 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
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, including the potential
impact of the COVID-19 pandemic. Other 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 unprecedented and 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 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 December
31, |
|
Twelve Months Ended December
31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
$ |
112,218 |
|
$ |
75,289 |
|
$ |
298,845 |
|
$ |
245,893 |
|
Cost of revenue (1) |
|
18,897 |
|
|
16,582 |
|
|
58,468 |
|
|
61,033 |
|
Gross profit |
|
93,321 |
|
|
58,707 |
|
|
240,377 |
|
|
184,860 |
|
Operating expenses: |
|
|
|
|
Research and development (1) |
|
39,704 |
|
|
27,889 |
|
|
123,375 |
|
|
83,097 |
|
In-process research and development |
|
406,911 |
|
|
— |
|
|
447,548 |
|
|
— |
|
Selling, general and administrative (1) |
|
55,974 |
|
|
38,756 |
|
|
202,326 |
|
|
130,834 |
|
Accrued contingent liabilities |
|
314 |
|
|
142 |
|
|
1,270 |
|
|
1,502 |
|
Total operating expenses |
|
502,903 |
|
|
66,787 |
|
|
774,519 |
|
|
215,433 |
|
Loss from operations |
|
(409,582 |
) |
|
(8,080 |
) |
|
(534,142 |
) |
|
(30,573 |
) |
Other income (expense): |
|
|
|
|
Interest income |
|
61 |
|
|
1,819 |
|
|
1,532 |
|
|
2,805 |
|
Interest expense |
|
(317 |
) |
|
(992 |
) |
|
(1,682 |
) |
|
(3,079 |
) |
Other income (expense), net |
|
1,216 |
|
|
227 |
|
|
1,337 |
|
|
(186 |
) |
Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
(1,521 |
) |
|
— |
|
Total other expense |
|
960 |
|
|
1,054 |
|
|
(334 |
) |
|
(460 |
) |
Loss before provision for income taxes |
|
(408,622 |
) |
|
(7,026 |
) |
|
(534,476 |
) |
|
(31,033 |
) |
Provision for income taxes |
|
6,950 |
|
|
108 |
|
|
8,255 |
|
|
218 |
|
Net loss |
$ |
(415,572 |
) |
$ |
(7,134 |
) |
$ |
(542,731 |
) |
$ |
(31,251 |
) |
Other comprehensive loss: |
|
|
|
|
Foreign currency translation adjustment |
|
2 |
|
|
114 |
|
|
(4 |
) |
|
(9 |
) |
Comprehensive loss |
$ |
(415,570 |
) |
$ |
(7,020 |
) |
$ |
(542,735 |
) |
$ |
(31,260 |
) |
Net loss per share, basic and diluted |
$ |
(3.87 |
) |
$ |
(0.07 |
) |
$ |
(5.37 |
) |
$ |
(0.80 |
) |
Weighted-average shares used to compute net loss per share, basic
and diluted |
|
107,386,772 |
|
|
96,027,247 |
|
|
101,151,675 |
|
|
39,091,366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
stock-based compensation expense as follows:
|
Three Months
Ended December
31, |
|
|
Twelve Months Ended December
31, |
|
(in thousands) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Cost of revenue |
$ |
443 |
|
$ |
154 |
|
$ |
1,551 |
|
$ |
325 |
|
Research and development |
|
5,225 |
|
|
2,273 |
|
|
19,623 |
|
|
5,721 |
|
Selling, general and administrative |
|
8,601 |
|
|
2,648 |
|
|
27,452 |
|
|
7,287 |
|
Total stock-based compensation expense |
$ |
14,269 |
|
$ |
5,075 |
|
$ |
48,626 |
|
$ |
13,333 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10x Genomics,
Inc.Condensed
Consolidated Balance
Sheets(Unaudited)(In thousands, except share and
per share data)
|
December
31,2020 |
|
December
31,2019 |
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
663,603 |
|
|
$ |
424,166 |
|
Restricted cash |
|
16,567 |
|
|
|
— |
|
Accounts receivable, net |
|
51,208 |
|
|
|
33,371 |
|
Inventory |
|
29,959 |
|
|
|
15,270 |
|
Prepaid expenses and other current assets |
|
13,029 |
|
|
|
8,033 |
|
Total current assets |
|
774,366 |
|
|
|
480,840 |
|
Property and equipment, net |
|
72,840 |
|
|
|
48,821 |
|
Restricted cash |
|
8,474 |
|
|
|
52,327 |
|
Operating lease right-of-use assets |
|
46,983 |
|
|
|
— |
|
Other assets |
|
26,678 |
|
|
|
23,935 |
|
Total assets |
$ |
929,341 |
|
|
$ |
605,923 |
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accrued contingent liabilities |
$ |
44,173 |
|
|
$ |
— |
|
Accounts payable |
|
4,709 |
|
|
|
13,028 |
|
Accrued compensation and related benefits |
|
15,383 |
|
|
|
12,394 |
|
Accrued expenses and other current liabilities |
|
43,453 |
|
|
|
24,448 |
|
Term loans, current portion |
|
— |
|
|
|
9,882 |
|
Deferred revenue, current |
|
4,472 |
|
|
|
3,297 |
|
Operating lease liabilities |
|
5,936 |
|
|
|
— |
|
Total current liabilities |
|
118,126 |
|
|
|
63,049 |
|
Term loans, noncurrent portion |
|
— |
|
|
|
19,837 |
|
Accrued contingent liabilities |
|
— |
|
|
|
68,658 |
|
Accrued license fee, noncurrent |
|
11,171 |
|
|
|
16,251 |
|
Deferred rent, noncurrent |
|
— |
|
|
|
16,120 |
|
Operating lease liabilities, noncurrent |
|
57,042 |
|
|
|
— |
|
Other noncurrent liabilities |
|
3,930 |
|
|
|
1,925 |
|
Total liabilities |
|
190,269 |
|
|
|
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 December 31, 2020 and
December 31, 2019 |
|
— |
|
|
|
— |
|
Common stock, $0.00001 par value; 1,100,000,000 shares authorized
and 108,485,909 and 96,241,596 shares issued and outstanding as of
December 31, 2020 and 2019 |
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
1,544,218 |
|
|
|
682,494 |
|
Accumulated deficit |
|
(805,098 |
) |
|
|
(262,367 |
) |
Accumulated other comprehensive loss |
|
(50 |
) |
|
|
(46 |
) |
Total stockholders’ equity |
|
739,072 |
|
|
|
420,083 |
|
Total liabilities and stockholders’ equity |
$ |
929,341 |
|
|
$ |
605,923 |
|
|
|
|
|
|
|
|
|
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