PLEASANTON, Calif.,
Nov. 3, 2021 /PRNewswire/ -- 10x
Genomics, Inc. (Nasdaq: TXG) today reported financial results for
the third quarter ended September 30, 2021.
Recent Highlights
- Revenue was $125.3 million for
the third quarter, representing a 74% increase over the
corresponding period of 2020 and an 8% increase compared to the
second quarter of 2021.
- Began shipping the Chromium X instrument, providing flexible
analysis of up to one million cells per experiment, and
high-throughput Gene Expression and Immune Profiling consumables,
enabling affordable and routine large-scale gene expression and
multiomic analyses.
- Continued the strong momentum of customer publications by
surpassing 3,000 research papers using our products, advancing
scientific discovery in application areas such as oncology,
immunology, neuroscience and infectious disease.
"Our team delivered strong results this quarter, successfully
launching the Chromium X while navigating the complexities of this
operating environment," said Serge Saxonov, Co-founder and CEO of
10x Genomics. "Our conviction in the vast opportunity ahead remains
as strong as ever, and we will accelerate our investments to
continue to innovate, drive scale and fulfill the promise of single
cell and spatial biology."
Third Quarter 2021 Financial Results
Revenue was $125.3 million for the
three months ended September 30, 2021, a 74% increase from
$71.8 million for the three months
ended September 30, 2020. This increase was primarily the
result of increased consumables revenue driven by growth in the
instrument installed base.
Gross margin was 80% for the third quarter of 2021, which is
flat as compared to 80% for the corresponding prior year period as
lower accrued royalties related to the Bio-Rad litigation were
offset by the impact in shifting product mix.
Operating expenses were $116.7
million for the third quarter of 2021, a 5% decrease from
$122.7 million for the three months
ended September 30, 2020. This decrease was driven by lower
in-process research and development expense this quarter due to the
$40.6 million charge during the
quarter ended September 30, 2020
related to the acquisition of CartaNA and decreased legal expenses.
This decrease was partially offset by increased operating expenses
related to higher personnel expenses, including stock-based
compensation, increased expenses related to facilities and
technology and increased marketing expenses.
Operating loss was $15.9 million
for the third quarter of 2021, as compared to $65.3 million for the corresponding prior year
period which included $40.6 million
of in-process research and development expense related to the
acquisition of CartaNA. Operating loss includes $26.0 million of stock-based compensation for the
third quarter of 2021, as compared to $13.8
million for the third quarter of 2020.
Net loss was $17.2 million for the
third quarter of 2021, as compared to a net loss of $65.8 million for the corresponding prior year
period.
Cash and cash equivalents were $600.4
million as of September 30, 2021.
2021 Financial Guidance
10x Genomics is revising its full year 2021 revenue guidance to
$490 million to $500 million, representing 64% to 67% growth over
full year 2020 revenue.
Webcast and Conference Call Information
10x Genomics will host a conference call to discuss the third
quarter 2021 financial results, business developments and outlook
after market close on Wednesday, November 3,
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 3,000 research
papers on discoveries ranging from oncology to immunology and
neuroscience. The company's patent portfolio comprises more than
1,200 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, including its expectations for full year
2021 revenue 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
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue
|
$
|
125,297
|
|
|
$
|
71,817
|
|
|
$
|
346,960
|
|
|
$
|
186,627
|
|
Cost of revenue
(1)
|
24,518
|
|
|
14,411
|
|
|
46,493
|
|
|
39,571
|
|
Gross
profit
|
100,779
|
|
|
57,406
|
|
|
300,467
|
|
|
147,056
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development (1)
|
54,582
|
|
|
30,143
|
|
|
149,867
|
|
|
83,670
|
|
In-process research
and development
|
—
|
|
|
40,637
|
|
|
—
|
|
|
40,637
|
|
Selling, general and
administrative (1)
|
62,076
|
|
|
51,549
|
|
|
187,683
|
|
|
146,352
|
|
Accrued contingent
liabilities
|
—
|
|
|
332
|
|
|
(660)
|
|
|
956
|
|
Total operating
expenses
|
116,658
|
|
|
122,661
|
|
|
336,890
|
|
|
271,615
|
|
Loss from
operations
|
(15,879)
|
|
|
(65,255)
|
|
|
(36,423)
|
|
|
(124,559)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
49
|
|
|
28
|
|
|
157
|
|
|
1,471
|
|
Interest
expense
|
(219)
|
|
|
(397)
|
|
|
(649)
|
|
|
(1,365)
|
|
Other (expense)
income, net
|
(599)
|
|
|
361
|
|
|
(807)
|
|
|
121
|
|
Loss on extinguishment
of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,521)
|
|
Total other
expense
|
(769)
|
|
|
(8)
|
|
|
(1,299)
|
|
|
(1,294)
|
|
Loss before provision
for income taxes
|
(16,648)
|
|
|
(65,263)
|
|
|
(37,722)
|
|
|
(125,853)
|
|
Provision for income
taxes
|
523
|
|
|
585
|
|
|
2,052
|
|
|
1,305
|
|
Net loss
|
$
|
(17,171)
|
|
|
$
|
(65,848)
|
|
|
$
|
(39,774)
|
|
|
$
|
(127,158)
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
136
|
|
|
(366)
|
|
|
244
|
|
|
(6)
|
|
Comprehensive
loss
|
$
|
(17,035)
|
|
|
$
|
(66,214)
|
|
|
$
|
(39,530)
|
|
|
$
|
(127,164)
|
|
Net loss per share,
basic and diluted
|
$
|
(0.15)
|
|
|
$
|
(0.65)
|
|
|
$
|
(0.36)
|
|
|
$
|
(1.28)
|
|
Weighted-average
shares of common stock used in
computing net loss per share, basic and diluted
|
110,874,249
|
|
|
101,341,945
|
|
|
109,826,104
|
|
|
99,058,139
|
|
|
|
|
|
(1)
|
Includes stock-based
compensation expense as follows:
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
(in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Cost of
revenue
|
$
|
878
|
|
|
$
|
398
|
|
|
$
|
2,183
|
|
|
$
|
1,108
|
|
Research and
development
|
11,226
|
|
|
5,467
|
|
|
30,162
|
|
|
14,398
|
|
Selling, general and
administrative
|
13,846
|
|
|
7,919
|
|
|
36,713
|
|
|
18,851
|
|
Total stock-based
compensation expense
|
$
|
25,950
|
|
|
$
|
13,784
|
|
|
$
|
69,058
|
|
|
$
|
34,357
|
|
10x Genomics,
Inc.
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
(In
thousands)
|
|
|
September
30,
2021
|
|
December
31,
2020
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
600,440
|
|
|
$
|
663,603
|
|
Restricted
cash
|
28
|
|
|
16,567
|
|
Accounts receivable,
net
|
78,430
|
|
|
51,208
|
|
Inventory
|
51,141
|
|
|
29,959
|
|
Prepaid expenses and
other current assets
|
14,065
|
|
|
13,029
|
|
Total current
assets
|
744,104
|
|
|
774,366
|
|
Property and
equipment, net
|
142,589
|
|
|
72,840
|
|
Restricted
cash
|
8,597
|
|
|
8,474
|
|
Operating lease
right-of-use assets
|
60,715
|
|
|
46,983
|
|
Goodwill
|
4,511
|
|
|
—
|
|
Other non-current
assets
|
30,056
|
|
|
26,678
|
|
Total
assets
|
$
|
990,572
|
|
|
$
|
929,341
|
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
17,037
|
|
|
$
|
4,709
|
|
Accrued compensation
and related benefits
|
27,182
|
|
|
15,383
|
|
Accrued expenses and
other current liabilities
|
46,187
|
|
|
43,453
|
|
Deferred
revenue
|
5,505
|
|
|
4,472
|
|
Operating lease
liabilities
|
4,464
|
|
|
5,936
|
|
Accrued contingent
liabilities
|
—
|
|
|
44,173
|
|
Total current
liabilities
|
100,375
|
|
|
118,126
|
|
Accrued license fee,
noncurrent
|
5,814
|
|
|
11,171
|
|
Operating lease
liabilities, noncurrent
|
75,735
|
|
|
57,042
|
|
Other noncurrent
liabilities
|
8,427
|
|
|
3,930
|
|
Total
liabilities
|
190,351
|
|
|
190,269
|
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
2
|
|
|
2
|
|
Additional paid-in
capital
|
1,644,897
|
|
|
1,544,218
|
|
Accumulated
deficit
|
(844,872)
|
|
|
(805,098)
|
|
Accumulated other
comprehensive gain (loss)
|
194
|
|
|
(50)
|
|
Total stockholders'
equity
|
800,221
|
|
|
739,072
|
|
Total liabilities and
stockholders' equity
|
$
|
990,572
|
|
|
$
|
929,341
|
|
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SOURCE 10x Genomics, Inc.