PLEASANTON, Calif., Nov. 2, 2023
/PRNewswire/ -- 10x Genomics, Inc. (Nasdaq: TXG), a leader in
single cell and spatial biology, today reported financial results
for the third quarter ended September 30, 2023.
Recent Highlights
- Revenue was $153.6 million for
the third quarter, a 17% increase over the corresponding period of
2022, driven by Xenium momentum.
- Advanced Xenium gene panel strategy, launching new targeted and
custom kit configurations and introducing the Xenium Panel Designer
self-service website.
- Expanded the capabilities of the Chromium Single Cell Gene
Expression Flex assay to include high-throughput multiomic cellular
profiling.
- Announced a partnership with Beckman Coulter Life Sciences to
expand automation solutions for single cell assay workflows.
"We had another solid quarter of revenue growth driven by
Xenium, as we continued to ramp operations and drive exceptional
demand with researchers worldwide," said Serge Saxonov, Co-founder
and CEO of 10x Genomics. "Xenium's incredibly steep adoption curve
in just three full quarters of launch has put the platform on a
best-in-class trajectory. The extraordinary customer enthusiasm and
demand we are seeing for this platform further strengthens our
conviction in the spatial opportunity and validates our
multi-platform strategy and investment."
Third Quarter 2023 Financial Results
Revenue was $153.6 million for the
third quarter of 2023, a 17% increase from $131.1 million for the corresponding prior year
period.
Gross margin was 62% for the third quarter of 2023, as compared
to 77% for the corresponding prior year period. The decrease in
gross margin was primarily due to product mix primarily driven by
the strength of Xenium instrument placements.
Operating expenses were $190.3
million for the third quarter of 2023, a 35% increase from
$140.7 million for the corresponding
prior year period. This increase was driven by $41.4 million of in-process research and
development expense related to an agreement to acquire certain
intangible and other assets earlier this year. Other drivers of the
increase in operating expenses this quarter include increased
personnel expenses, including stock-based compensation.
Operating loss was $94.8 million
for the third quarter of 2023, as compared to $40.0 million for the corresponding prior year
period. Operating loss includes $41.4 million of in-process research and
development expense and $40.2 million
of stock-based compensation for the third quarter of 2023, as
compared to $33.5 million of
stock-based compensation for the corresponding prior year
period.
Net loss was $93.0 million for the
third quarter of 2023, as compared to a net loss of $41.9 million for the corresponding prior year
period.
Cash and cash equivalents and marketable securities were
$356.9 million as of September 30, 2023.
2023 Financial Guidance
10x Genomics is raising its full year 2023 revenue guidance and
now expects revenue in the range of $610
million to $625 million,
representing 18% to 21% growth over full year 2022.
Webcast and Conference Call Information
10x Genomics will host a conference call to discuss the third
quarter 2023 financial results, business developments and outlook
after market close on Thursday, November 2, 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 accelerate the mastery of biology and advance human
health. Our integrated solutions include instruments, consumables
and software for single cell and spatial biology, which help
academic and translational researchers and biopharmaceutical
companies understand biological systems at a resolution and scale
that matches the complexity of biology. Our products are behind
breakthroughs in oncology, immunology, neuroscience and more,
fueling powerful discoveries that are transforming the world's
understanding of health and disease. To learn more, visit
10xgenomics.com or connect with us on LinkedIn or X (Twitter).
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 included in this press release, 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," "see," "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 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, inflation and supply chain interruptions 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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
(1)
|
$
153,644
|
|
$
131,072
|
|
$
434,748
|
|
$
360,177
|
Cost of revenue
(2)
|
58,115
|
|
30,377
|
|
141,217
|
|
83,559
|
Gross
profit
|
95,529
|
|
100,695
|
|
293,531
|
|
276,618
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development (2)
|
66,507
|
|
67,290
|
|
205,065
|
|
202,053
|
In-process research
and development
|
41,402
|
|
—
|
|
41,402
|
|
—
|
Selling, general and
administrative (2)
|
82,415
|
|
73,401
|
|
257,205
|
|
219,413
|
Total operating
expenses
|
190,324
|
|
140,691
|
|
503,672
|
|
421,466
|
Loss from
operations
|
(94,795)
|
|
(39,996)
|
|
(210,141)
|
|
(144,848)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
4,300
|
|
2,025
|
|
12,269
|
|
3,832
|
Interest
expense
|
(1)
|
|
(114)
|
|
(25)
|
|
(351)
|
Other expense,
net
|
(1,248)
|
|
(1,950)
|
|
(4,268)
|
|
(4,193)
|
Total other income
(expense)
|
3,051
|
|
(39)
|
|
7,976
|
|
(712)
|
Loss before provision
for income taxes
|
(91,744)
|
|
(40,035)
|
|
(202,165)
|
|
(145,560)
|
Provision for income
taxes
|
1,242
|
|
1,879
|
|
3,982
|
|
3,225
|
Net loss
|
$
(92,986)
|
|
$
(41,914)
|
|
$
(206,147)
|
|
$
(148,785)
|
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted
|
$
(0.79)
|
|
$
(0.37)
|
|
$
(1.77)
|
|
$
(1.31)
|
Weighted-average shares
of common stock used in
computing net loss per share, basic and diluted
|
117,728,293
|
|
114,112,382
|
|
116,693,008
|
|
113,555,750
|
(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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Instruments
|
|
|
|
|
|
|
|
Chromium
|
$
12,231
|
|
$
14,936
|
|
$
36,716
|
|
$
43,309
|
Spatial
|
22,711
|
|
5,963
|
|
48,357
|
|
6,755
|
Total instruments
revenue
|
34,942
|
|
20,899
|
|
85,073
|
|
50,064
|
Consumables
|
|
|
|
|
|
|
|
Chromium
|
100,282
|
|
97,868
|
|
302,172
|
|
280,195
|
Spatial
|
14,091
|
|
10,239
|
|
37,067
|
|
23,796
|
Total consumables
revenue
|
114,373
|
|
108,107
|
|
339,239
|
|
303,991
|
Services
|
4,329
|
|
2,066
|
|
10,436
|
|
6,122
|
Total
revenue
|
$
153,644
|
|
$
131,072
|
|
$
434,748
|
|
$
360,177
|
The following table presents revenue by geography based on the
location of the customer for the periods indicated (in
thousands):
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Americas
|
|
|
|
|
|
|
|
United
States
|
$
96,094
|
|
$
75,345
|
|
$
260,769
|
|
$
202,159
|
Americas (excluding
United States)
|
2,917
|
|
2,236
|
|
8,581
|
|
5,997
|
Total
Americas
|
99,011
|
|
77,581
|
|
269,350
|
|
208,156
|
Europe, Middle East and
Africa
|
32,019
|
|
27,927
|
|
91,687
|
|
74,067
|
Asia-Pacific
|
|
|
|
|
|
|
|
China¹
|
12,431
|
|
16,313
|
|
39,217
|
|
48,079
|
Asia-Pacific
(excluding China)
|
10,183
|
|
9,251
|
|
34,494
|
|
29,875
|
Total
Asia-Pacific
|
22,614
|
|
25,564
|
|
73,711
|
|
77,954
|
Total
Revenue
|
$
153,644
|
|
$
131,072
|
|
$
434,748
|
|
$
360,177
|
|
1 Includes Hong Kong effective from
the first quarter of 2023. Comparative periods have been adjusted
for this inclusion.
|
(2) Includes stock-based compensation expense as follows:
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
(in
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cost of
revenue
|
$
1,844
|
|
$
1,281
|
|
$
5,140
|
|
$
3,748
|
Research and
development
|
17,856
|
|
14,476
|
|
55,196
|
|
41,346
|
Selling, general and
administrative
|
20,535
|
|
17,757
|
|
67,696
|
|
50,780
|
Total stock-based
compensation expense
|
$
40,235
|
|
$
33,514
|
|
$
128,032
|
|
$
95,874
|
10x Genomics,
Inc. Condensed Consolidated Balance
Sheets (Unaudited) (In
thousands)
|
|
|
September
30,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
311,264
|
|
$
219,746
|
Marketable
securities
|
45,643
|
|
210,238
|
Restricted
cash
|
500
|
|
2,633
|
Accounts receivable,
net
|
103,847
|
|
104,211
|
Inventory
|
80,917
|
|
81,629
|
Prepaid expenses and
other current assets
|
20,177
|
|
16,578
|
Total current
assets
|
562,348
|
|
635,035
|
Property and equipment,
net
|
285,008
|
|
289,328
|
Restricted
cash
|
2,974
|
|
4,974
|
Operating lease
right-of-use assets
|
69,192
|
|
69,882
|
Goodwill
|
4,511
|
|
4,511
|
Intangible assets,
net
|
21,833
|
|
22,858
|
Other noncurrent
assets
|
2,674
|
|
2,392
|
Total
assets
|
$
948,540
|
|
$ 1,028,980
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
18,836
|
|
$
21,599
|
Accrued compensation
and related benefits
|
28,477
|
|
32,675
|
Accrued expenses and
other current liabilities
|
36,256
|
|
59,779
|
Deferred
revenue
|
11,143
|
|
7,867
|
Operating lease
liabilities
|
10,005
|
|
9,037
|
Total current
liabilities
|
104,717
|
|
130,957
|
Operating lease
liabilities, noncurrent
|
88,468
|
|
86,139
|
Other noncurrent
liabilities
|
10,139
|
|
6,141
|
Total
liabilities
|
203,324
|
|
223,237
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
—
|
|
—
|
Common
stock
|
2
|
|
2
|
Additional paid-in
capital
|
1,981,359
|
|
1,839,397
|
Accumulated
deficit
|
(1,235,468)
|
|
(1,029,321)
|
Accumulated other
comprehensive loss
|
(677)
|
|
(4,335)
|
Total stockholders'
equity
|
745,216
|
|
805,743
|
Total liabilities and
stockholders' equity
|
$
948,540
|
|
$ 1,028,980
|
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SOURCE 10x Genomics, Inc