PLEASANTON, Calif., May 3, 2023
/PRNewswire/ -- 10x Genomics, Inc. (Nasdaq: TXG) today reported
financial results for the first quarter ended March 31,
2023.
Recent Highlights
- Revenue was $134.3 million for
the first quarter, representing a 17% increase over the
corresponding period of 2022.
- Surpassed 5,000 customer publications using 10x Genomics
products, demonstrating the impact of single cell and spatial
technologies to fuel new biological discoveries.
- Accelerated Spatial revenue growth driven by robust demand for
Xenium in its first full quarter of commercial launch and continued
demand for Visium CytAssist.
- Opened a new R&D and manufacturing center to support the
Company's innovation engine and add operational scale and capacity
for future growth.
"We are proud of our solid start to the year, fueled by strong
performance across our spatial portfolio and a return to
double-digit growth in single cell consumables," said Serge
Saxonov, Co-founder and CEO of 10x Genomics. "We are energized by
the momentum and traction we're seeing with Xenium in its first
full quarter of launch; the overwhelmingly positive feedback from
our early customers reinforces our belief that Xenium is the best
In Situ platform on the market."
First Quarter 2023 Financial Results
Revenue was $134.3 million for the
first quarter of 2023, a 17% increase from $114.5 million for the corresponding prior year
period. This increase was primarily the result of higher revenue in
the Americas and EMEA regions partially offset by a decline in
Asia-Pacific.
Gross margin was 73% for the first quarter of 2023, as compared
to 78% for the corresponding prior year period. The decrease in
gross margin was primarily due to change in product mix with newly
introduced products and inventory write downs.
Operating expenses were $150.4
million for the first quarter of 2023, a 15% increase from
$130.8 million for the corresponding
prior year period. This increase was driven by higher personnel
expenses, including stock-based compensation expense, increased
costs for facilities and information technology to support
operational expansion, increased outside legal expenses and
increased marketing expenses, partially offset by a decrease in
costs of laboratory materials and supplies and expensed
equipment.
Operating loss was $52.0 million
for the first quarter of 2023, as compared to $41.7 million for the corresponding prior year
period. Operating loss includes $42.1
million of stock-based compensation for the first quarter of
2023, as compared to $26.0 million
for the corresponding prior year period.
Net loss was $50.7 million for the
first quarter of 2023, as compared to a net loss of $42.4 million for the corresponding prior year
period.
Cash and cash equivalents and marketable securities were
$418.3 million as of March 31,
2023.
2023 Financial Guidance
10x Genomics is raising its full year 2023 revenue guidance and
now expects revenue in the range of $590
million to $610 million,
representing 14% to 18% growth over full year 2022. This compares
to its previous revenue guidance of $580
million to $600 million.
Webcast and Conference Call Information
10x Genomics will host a conference call to discuss the first
quarter 2023 financial results, business developments and outlook
after market close on Wednesday, May 3,
2023 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 5,000 research papers on
discoveries ranging from oncology to immunology and neuroscience.
Our patent portfolio comprises more than 1,750 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," "would," "likely," "seek" 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 our growth and anticipated growth rates, our product
momentum and progress, our expected performance advantages and
benefits of using our products and services, customer enthusiasm
and adoption of our products, and our financial performance and
results of operations, including our expectations regarding revenue
and guidance. 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" in the company's most recently-filed 10-K 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, such forward-looking
statements may not accurately or fully reflect the potential impact
of adverse geopolitical and macroeconomic events, difficulties
selling in APAC, product capabilities and adoption rates,
international economic, political, legal, compliance, social and
business factors, such as the COVID-19 pandemic, inflation, supply
chain that 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
March 31,
|
|
2023
|
|
2022
|
Revenue
(1)
|
$
134,285
|
|
$
114,496
|
Cost of revenue
(2)
|
35,895
|
|
25,478
|
Gross
profit
|
98,390
|
|
89,018
|
Operating
expenses:
|
|
|
|
Research and
development (2)
|
67,098
|
|
64,078
|
Selling, general and
administrative (2)
|
83,280
|
|
66,675
|
Total operating
expenses
|
150,378
|
|
130,753
|
Loss from
operations
|
(51,988)
|
|
(41,735)
|
Other income
(expense):
|
|
|
|
Interest
income
|
3,869
|
|
569
|
Interest
expense
|
(19)
|
|
(128)
|
Other expense,
net
|
(1,516)
|
|
(400)
|
Total other
income
|
2,334
|
|
41
|
Loss before provision
for income taxes
|
(49,654)
|
|
(41,694)
|
Provision for income
taxes
|
1,093
|
|
719
|
Net loss
|
$
(50,747)
|
|
$
(42,413)
|
|
|
|
|
Net loss per share,
basic and diluted
|
$
(0.44)
|
|
$
(0.38)
|
Weighted-average shares
of common stock used in computing net loss per share, basic
and
diluted
|
115,619,869
|
|
112,966,196
|
(1) The following table represents revenue by source for
the periods indicated (in thousands). Spatial products includes the
Company's Visium and Xenium products:
|
Three Months
Ended
March 31,
|
|
2023
|
|
2022
|
Instruments
|
|
|
|
Chromium
|
$
11,626
|
|
$
14,326
|
SpatialĀ¹
|
7,550
|
|
103
|
Total instruments
revenue
|
19,176
|
|
14,429
|
Consumables
|
|
|
|
Chromium
|
101,096
|
|
91,279
|
Spatial
|
11,282
|
|
6,671
|
Total consumables
revenue
|
112,378
|
|
97,950
|
Services
|
2,731
|
|
2,117
|
Total
revenue
|
$
134,285
|
|
$
114,496
|
|
|
1 The
Spatial Instruments revenue in the first quarter of 2022 related to
revenue from the Visium Accessory Kit.
|
The following table presents revenue by geography based on the
location of the customer for the periods indicated (in
thousands):
|
Three Months
Ended
March 31,
|
|
2023
|
|
2022
|
Americas
|
|
|
|
United
States
|
$
76,281
|
|
$
57,441
|
Americas (excluding
United States)
|
2,515
|
|
2,246
|
Total
Americas
|
78,796
|
|
59,687
|
Europe, Middle East and
Africa
|
28,422
|
|
20,532
|
Asia-Pacific
|
|
|
|
ChinaĀ¹
|
14,031
|
|
21,782
|
Asia-Pacific
(excluding China)
|
13,036
|
|
12,495
|
Total
Asia-Pacific
|
27,067
|
|
34,277
|
Total
Revenue
|
$
134,285
|
|
$
114,496
|
|
|
1 Includes
Hong Kong effective from the first quarter of 2023. Comparative
period has been adjusted for this inclusion.
|
(2) Includes stock-based compensation expense as
follows:
|
Three Months
Ended
March 31,
|
(in
thousands)
|
2023
|
|
2022
|
Cost of
revenue
|
$
1,461
|
|
$
1,014
|
Research and
development
|
17,780
|
|
11,291
|
Selling, general and
administrative
|
22,860
|
|
13,742
|
Total stock-based
compensation expense
|
$
42,101
|
|
$
26,047
|
10x Genomics,
Inc.
Condensed
Consolidated Balance Sheets
(Unaudited)
(In
thousands)
|
|
|
March 31,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
332,320
|
|
$
219,746
|
Marketable
securities
|
85,970
|
|
210,238
|
Restricted
cash
|
2,500
|
|
2,633
|
Accounts receivable,
net
|
77,940
|
|
104,211
|
Inventory
|
82,307
|
|
81,629
|
Prepaid expenses and
other current assets
|
20,857
|
|
16,578
|
Total current
assets
|
601,894
|
|
635,035
|
Property and equipment,
net
|
292,106
|
|
289,328
|
Restricted
cash
|
4,974
|
|
4,974
|
Operating lease
right-of-use assets
|
74,738
|
|
69,882
|
Goodwill
|
4,511
|
|
4,511
|
Intangible assets,
net
|
22,948
|
|
22,858
|
Other noncurrent
assets
|
12,859
|
|
2,392
|
Total
assets
|
$ 1,014,030
|
|
$ 1,028,980
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
29,317
|
|
$
21,599
|
Accrued compensation
and related benefits
|
17,574
|
|
32,675
|
Accrued expenses and
other current liabilities
|
47,386
|
|
59,779
|
Deferred
revenue
|
8,530
|
|
7,867
|
Operating lease
liabilities
|
9,199
|
|
9,037
|
Total current
liabilities
|
112,006
|
|
130,957
|
Operating lease
liabilities, noncurrent
|
92,843
|
|
86,139
|
Other noncurrent
liabilities
|
6,796
|
|
6,141
|
Total
liabilities
|
211,645
|
|
223,237
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
ā
|
|
ā
|
Common
stock
|
2
|
|
2
|
Additional paid-in
capital
|
1,883,930
|
|
1,839,397
|
Accumulated
deficit
|
(1,080,068)
|
|
(1,029,321)
|
Accumulated other
comprehensive loss
|
(1,479)
|
|
(4,335)
|
Total stockholders'
equity
|
802,385
|
|
805,743
|
Total liabilities and
stockholders' equity
|
$ 1,014,030
|
|
$ 1,028,980
|
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SOURCE 10x Genomics, Inc.