PLEASANTON, Calif., Nov. 2, 2022
/PRNewswire/ -- 10x Genomics, Inc. (Nasdaq: TXG) today reported
financial results for the third quarter ended September 30,
2022.
Recent Highlights
- Revenue was $131.1 million for
the third quarter, representing a 5% increase over the
corresponding period of 2021 and a 14% increase over second quarter
of 2022.
- Published a preprint highlighting the power of the company's
combined technologies – Chromium, Visium and Xenium – to draw
important and previously inaccessible insights from human breast
cancer FFPE tissue.
- Released Xenium data and a preview of Xenium Explorer, the
company's intuitive analysis and interactive visualization tool,
reflecting the company's long-standing leadership and software
expertise.
- Demonstrated compatibility with two long-read sequencing
partners to open up powerful new single cell and spatial
applications using full-length transcripts.
"We're proud of our team's customer focus and R&D execution
in the third quarter, as we continued to advance our innovation
pipeline and drive adoption of our leading technologies," said
Serge Saxonov, Co-founder and CEO of 10x Genomics. "When Xenium
launches later this year as planned, we strongly believe it will be
the best performing system available for in situ analysis. Our
conviction and enthusiasm in our three platform vision is stronger
than ever, and we're confident our technologies will help deliver a
future where single cell and spatial analysis are the foundation
for both research and clinical applications."
Third Quarter 2022 Financial Results
Revenue was $131.1 million for the
third quarter of 2022, a 5% increase from $125.3 million for the corresponding prior year
period. This increase was primarily driven by higher volume of
units sold and growth due to new customers, partially offset by
unfavorable foreign exchange fluctuations.
Gross margin was 77% for the third quarter of 2022, as compared
to 80% for the corresponding prior year period. The decrease in
gross margin was primarily due to change in product mix with newly
introduced products and increased manufacturing and supply chain
costs.
Operating expenses were $140.7
million for the third quarter of 2022, a 21% increase from
$116.7 million for the corresponding
prior year period. This increase was driven by higher personnel
expenses, including stock-based compensation and restructuring
costs, increased costs for facilities and information technology to
support operational expansion, and increased costs for laboratory
materials and supplies to support research and development efforts,
partially offset by a decrease in marketing expenses.
Operating loss was $40.0 million
for the third quarter of 2022, as compared to $15.9 million for the corresponding prior year
period. Operating loss includes $33.5
million of stock-based compensation for the third quarter of
2022, as compared to $26.0 million
for the corresponding prior year period.
Net loss was $41.9 million for the
third quarter of 2022, as compared to a net loss of $17.2 million for the corresponding prior year
period.
Cash and cash equivalents and marketable securities were
$452.4 million as of
September 30, 2022.
2022 Financial Guidance
10x Genomics is maintaining its previously announced full year
2022 revenue guidance of $500 million
to $520 million.
Webcast and Conference Call Information
10x Genomics will host a conference call to discuss the third
quarter 2022 financial results, business developments and outlook
after market close on Wednesday, November 2,
2022 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. Our 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 2021 based on publications and all of the top
20 global pharmaceutical companies by 2021 research and development
spend and have been cited in over 4,100 research papers on
discoveries ranging from oncology to immunology and neuroscience.
Our patent portfolio comprises more than 1,600 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 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 our business operations, financial
performance and results of operations, including our expectations
regarding revenue and guidance, as well as expected product
launches, capabilities and performance and our ability to meet our
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. The material 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 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 our
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, our website (www.10xgenomics.com), press
releases, public conference calls, public webcasts and our
social media accounts as means of disclosing material non-public
information and for complying with our disclosure obligations under
Regulation FD.
Contacts
Investors: investors@10xgenomics.com
Media: media@10xgenomics.com
|
10x Genomics,
Inc.
Condensed Consolidated Statements of
Operations
(Unaudited)
(In thousands, except
share and per share data)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Revenue
|
$
131,072
|
|
$
125,297
|
|
$
360,177
|
|
$
346,960
|
|
Cost of revenue
(1)
|
30,377
|
|
24,518
|
|
83,559
|
|
46,493
|
|
Gross
profit
|
100,695
|
|
100,779
|
|
276,618
|
|
300,467
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development (1)
|
67,290
|
|
54,582
|
|
202,053
|
|
149,867
|
|
Selling, general and
administrative (1)
|
73,401
|
|
62,076
|
|
219,413
|
|
187,683
|
|
Accrued contingent
liabilities
|
—
|
|
—
|
|
—
|
|
(660)
|
|
Total operating
expenses
|
140,691
|
|
116,658
|
|
421,466
|
|
336,890
|
|
Loss from
operations
|
(39,996)
|
|
(15,879)
|
|
(144,848)
|
|
(36,423)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
income
|
2,025
|
|
49
|
|
3,832
|
|
157
|
|
Interest
expense
|
(114)
|
|
(219)
|
|
(351)
|
|
(649)
|
|
Other expense,
net
|
(1,950)
|
|
(599)
|
|
(4,193)
|
|
(807)
|
|
Total other
expense
|
(39)
|
|
(769)
|
|
(712)
|
|
(1,299)
|
|
Loss before provision
for income taxes
|
(40,035)
|
|
(16,648)
|
|
(145,560)
|
|
(37,722)
|
|
Provision for income
taxes
|
1,879
|
|
523
|
|
3,225
|
|
2,052
|
|
Net loss
|
$
(41,914)
|
|
$
(17,171)
|
|
$
(148,785)
|
|
$
(39,774)
|
|
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted
|
$
(0.37)
|
|
$
(0.15)
|
|
$
(1.31)
|
|
$
(0.36)
|
|
Weighted-average shares
of common stock used in
computing net loss per share, basic and diluted
|
114,112,382
|
|
110,874,249
|
|
113,555,750
|
|
109,826,104
|
|
|
(1)
Includes stock-based compensation expense as follows:
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
(in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Cost of
revenue
|
$
1,281
|
|
$
878
|
|
$
3,748
|
|
$
2,183
|
|
Research and
development
|
14,476
|
|
11,226
|
|
41,346
|
|
30,162
|
|
Selling, general and
administrative
|
17,757
|
|
13,846
|
|
50,780
|
|
36,713
|
|
Total stock-based
compensation expense
|
$
33,514
|
|
$
25,950
|
|
$
95,874
|
|
$
69,058
|
|
10x Genomics,
Inc.
Condensed Consolidated Balance
Sheets
(Unaudited)
(In
thousands)
|
|
|
September
30,
2022
|
|
December 31,
2021
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
233,951
|
|
$
587,447
|
|
Marketable
securities
|
218,435
|
|
—
|
|
Restricted
cash
|
508
|
|
1,028
|
|
Accounts receivable,
net
|
83,549
|
|
85,254
|
|
Inventory
|
78,629
|
|
59,966
|
|
Prepaid expenses and
other current assets
|
14,350
|
|
13,896
|
|
Total current
assets
|
629,422
|
|
747,591
|
|
Property and equipment,
net
|
257,694
|
|
169,492
|
|
Restricted
cash
|
7,091
|
|
7,598
|
|
Operating lease
right-of-use assets
|
71,095
|
|
60,918
|
|
Goodwill
|
4,511
|
|
4,511
|
|
Intangible assets,
net
|
23,493
|
|
25,397
|
|
Other noncurrent
assets
|
2,901
|
|
3,319
|
|
Total
assets
|
$
996,207
|
|
$ 1,018,826
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
21,594
|
|
$
17,351
|
|
Accrued compensation
and related benefits
|
28,214
|
|
31,626
|
|
Accrued expenses and
other current liabilities
|
61,989
|
|
50,909
|
|
Deferred
revenue
|
6,665
|
|
5,340
|
|
Operating lease
liabilities
|
8,393
|
|
5,131
|
|
Total current
liabilities
|
126,855
|
|
110,357
|
|
Accrued license fee,
noncurrent
|
—
|
|
5,814
|
|
Operating lease
liabilities, noncurrent
|
87,833
|
|
76,847
|
|
Other noncurrent
liabilities
|
5,727
|
|
8,240
|
|
Total
liabilities
|
220,415
|
|
201,258
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred
stock
|
—
|
|
—
|
|
Common
stock
|
2
|
|
2
|
|
Additional paid-in
capital
|
1,793,388
|
|
1,680,865
|
|
Accumulated
deficit
|
(1,012,106)
|
|
(863,321)
|
|
Accumulated other
comprehensive income (loss)
|
(5,492)
|
|
22
|
|
Total stockholders'
equity
|
775,792
|
|
817,568
|
|
Total liabilities and
stockholders' equity
|
$
996,207
|
|
$ 1,018,826
|
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SOURCE 10x Genomics, Inc.