10x Genomics, Inc. (Nasdaq: TXG) today reported financial results
for the second quarter ended June 30, 2021.
Recent Highlights
- Revenue was $115.8
million for the second quarter, representing a 170% increase over
the corresponding period of 2020 and a 9% increase compared to the
first quarter of 2021
- Launched Chromium
X, a next-generation instrument and platform for single cell
analysis enabling million cell experiments and accelerating
discoveries in areas including drug and CRISPR screens, large-scale
translational studies, cell mapping, antibody discovery and
biomarker identification
- Began shipping
Visium Spatial Gene Expression for FFPE, a new assay that gives
researchers access to whole transcriptome spatial profiling of
preserved tissue blocks enabling for the first time unbiased
discovery in FFPE samples
- Entered into a
global settlement and cross-license agreement with Bio-Rad
Laboratories, Inc. resolving all outstanding litigation
underscoring the value of 10x Genomics' innovation and strong
patent portfolio
"We continued our track record of execution
during the second quarter, delivering on major strategic objectives
while also delivering on our commercial plans and R&D
pipeline," said Serge Saxonov, Co-founder and CEO of 10x Genomics.
"Single cell and spatial analyses represent the future of biology.
We will continue to build on our progress and momentum in bringing
these technologies to more and more researchers around the
world."
Second Quarter 2021 Financial
Results
Revenue was $115.8 million for the three months
ended June 30, 2021, a 170% increase from $42.9 million for
the three months ended June 30, 2020. This increase was
primarily the result of increased consumables revenue driven by
growth in the instrument installed base and decreased impact of the
pandemic on customer operations.
Gross margin was 96% for the second quarter of
2021, as compared to 77% for the corresponding prior year period.
The increase in gross margin was driven primarily by a one-time
reversal of $14.7 million of accrued royalties related to the
settlement of ongoing litigation with Bio-Rad.
Operating expenses were $121.3 million for the
second quarter of 2021, a 68% increase from $72.3 million for the
three months ended June 30, 2020. Drivers of the increase in
operating expenses this quarter include increased personnel
expenses, including stock-based compensation, and increased
expenses related to materials, facilities and technology to support
operational expansion.
Operating loss was $10.3 million for the second
quarter of 2021, as compared to $39.4 million for the corresponding
prior year period. This includes $26.9 million of stock-based
compensation for the second quarter of 2021, as compared to $13.9
million for the second quarter of 2020.
Net loss was $11.1 million for the second
quarter of 2021, as compared to a net loss of $40.2 million for the
corresponding prior year period.
Cash and cash equivalents were $622.0 million as
of June 30, 2021.
2021 Financial Guidance
10x Genomics is maintaining its previously
announced full year 2021 revenue guidance 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 second quarter 2021 financial results, business
developments and outlook after market close on Wednesday,
August 4, 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 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 2020 based on
publications and all of the top 20 global pharmaceutical companies
by 2020 research and development spend, and have been cited in over
2,800 research papers on discoveries ranging from oncology to
immunology and neuroscience. The company’s patent portfolio
comprises more than 1,150 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 ongoing 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 EndedJune 30, |
|
Six Months EndedJune 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue |
$ |
115,842 |
|
|
|
$ |
42,905 |
|
|
|
$ |
221,663 |
|
|
|
$ |
114,810 |
|
|
Cost of revenue (1) |
4,915 |
|
|
|
10,052 |
|
|
|
21,975 |
|
|
|
25,160 |
|
|
Gross profit |
110,927 |
|
|
|
32,853 |
|
|
|
199,688 |
|
|
|
89,650 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development (1) |
53,402 |
|
|
|
27,535 |
|
|
|
95,285 |
|
|
|
53,527 |
|
|
Selling, general and administrative (1) |
68,703 |
|
|
|
44,416 |
|
|
|
125,607 |
|
|
|
94,803 |
|
|
Accrued contingent liabilities |
(850 |
) |
|
|
322 |
|
|
|
(660 |
) |
|
|
624 |
|
|
Total operating expenses |
121,255 |
|
|
|
72,273 |
|
|
|
220,232 |
|
|
|
148,954 |
|
|
Loss from operations |
(10,328 |
) |
|
|
(39,420 |
) |
|
|
(20,544 |
) |
|
|
(59,304 |
) |
|
Other income (expense): |
|
|
|
|
|
|
|
Interest income |
58 |
|
|
|
125 |
|
|
|
108 |
|
|
|
1,443 |
|
|
Interest expense |
(209 |
) |
|
|
(306 |
) |
|
|
(430 |
) |
|
|
(968 |
) |
|
Other income (expense), net |
521 |
|
|
|
(144 |
) |
|
|
(208 |
) |
|
|
(240 |
) |
|
Loss on extinguishment of debt |
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,521 |
) |
|
Total other income (expense) |
370 |
|
|
|
(325 |
) |
|
|
(530 |
) |
|
|
(1,286 |
) |
|
Loss before provision for income
taxes |
(9,958 |
) |
|
|
(39,745 |
) |
|
|
(21,074 |
) |
|
|
(60,590 |
) |
|
Provision for income taxes |
1,094 |
|
|
|
422 |
|
|
|
1,529 |
|
|
|
720 |
|
|
Net loss |
$ |
(11,052 |
) |
|
|
$ |
(40,167 |
) |
|
|
$ |
(22,603 |
) |
|
|
$ |
(61,310 |
) |
|
Other comprehensive income: |
|
|
|
|
|
|
|
Foreign currency translation adjustment |
10 |
|
|
|
355 |
|
|
|
108 |
|
|
|
360 |
|
|
Comprehensive loss |
$ |
(11,042 |
) |
|
|
$ |
(39,812 |
) |
|
|
$ |
(22,495 |
) |
|
|
$ |
(60,950 |
) |
|
Net loss per share, basic and
diluted |
$ |
(0.10 |
) |
|
|
$ |
(0.41 |
) |
|
|
$ |
(0.21 |
) |
|
|
$ |
(0.63 |
) |
|
Weighted-average shares of common
stock used in computing net loss per share, basic and diluted |
109,866,294 |
|
|
|
98,978,283 |
|
|
|
109,293,342 |
|
|
|
97,903,687 |
|
|
(1) Includes stock-based compensation expense
as follows:
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
(in
thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Cost of revenue |
$ |
841 |
|
|
$ |
463 |
|
|
$ |
1,305 |
|
|
$ |
710 |
|
Research and development |
12,140 |
|
|
6,044 |
|
|
18,936 |
|
|
8,931 |
|
Selling, general and
administrative |
13,951 |
|
|
7,348 |
|
|
22,867 |
|
|
10,932 |
|
Total stock-based compensation expense |
$ |
26,932 |
|
|
$ |
13,855 |
|
|
$ |
43,108 |
|
|
$ |
20,573 |
|
10x Genomics,
Inc.Condensed Consolidated Balance
Sheets(Unaudited)(In thousands)
|
June 30,2021 |
|
December 31,2020 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
621,958 |
|
|
|
$ |
663,603 |
|
|
Restricted cash |
18,151 |
|
|
|
16,567 |
|
|
Accounts receivable, net |
59,680 |
|
|
|
51,208 |
|
|
Inventory |
44,087 |
|
|
|
29,959 |
|
|
Prepaid expenses and other current assets |
13,298 |
|
|
|
13,029 |
|
|
Total current assets |
757,174 |
|
|
|
774,366 |
|
|
Property and equipment, net |
122,329 |
|
|
|
72,840 |
|
|
Restricted cash |
8,599 |
|
|
|
8,474 |
|
|
Operating lease right-of-use
assets |
54,125 |
|
|
|
46,983 |
|
|
Goodwill |
4,511 |
|
|
|
— |
|
|
Other non-current assets |
30,841 |
|
|
|
26,678 |
|
|
Total assets |
$ |
977,579 |
|
|
|
$ |
929,341 |
|
|
Liabilities and
stockholders’ equity |
|
|
|
Current liabilities: |
|
|
|
Accrued contingent liabilities |
$ |
29,496 |
|
|
|
$ |
44,173 |
|
|
Accounts payable |
16,181 |
|
|
|
4,709 |
|
|
Accrued compensation and related benefits |
21,113 |
|
|
|
15,383 |
|
|
Accrued expenses and other current liabilities |
36,157 |
|
|
|
43,453 |
|
|
Deferred revenue |
5,274 |
|
|
|
4,472 |
|
|
Operating lease liabilities |
4,905 |
|
|
|
5,936 |
|
|
Total current liabilities |
113,126 |
|
|
|
118,126 |
|
|
Accrued license fee,
noncurrent |
5,814 |
|
|
|
11,171 |
|
|
Operating lease liabilities,
noncurrent |
65,917 |
|
|
|
57,042 |
|
|
Other noncurrent liabilities |
8,136 |
|
|
|
3,930 |
|
|
Total liabilities |
192,993 |
|
|
|
190,269 |
|
|
Commitments and
contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock |
— |
|
|
|
— |
|
|
Common stock |
2 |
|
|
|
2 |
|
|
Additional paid-in capital |
1,612,227 |
|
|
|
1,544,218 |
|
|
Accumulated deficit |
(827,701 |
) |
|
|
(805,098 |
) |
|
Accumulated other comprehensive gain (loss) |
58 |
|
|
|
(50 |
) |
|
Total stockholders’ equity |
784,586 |
|
|
|
739,072 |
|
|
Total liabilities and stockholders’ equity |
$ |
977,579 |
|
|
|
$ |
929,341 |
|
|
10x Genomics (NASDAQ:TXG)
Historical Stock Chart
From Jun 2024 to Jul 2024
10x Genomics (NASDAQ:TXG)
Historical Stock Chart
From Jul 2023 to Jul 2024