10x Genomics Reports First Quarter 2024 Financial Results
10x Genomics, Inc. reported $141.0 million in revenue for the first quarter of 2024, a 5% increase from the same period in 2023. The company introduced four major new products, including Visium HD Spatial Gene Expression and two new Chromium products powered by GEM-X. Despite revenue growth, gross margin decreased to 66% due to product mix changes. Operating expenses rose by 3% to $154.4 million, driven by higher legal expenses and facility costs. The company saw an operating loss of $61.5 million and a net loss of $59.9 million for the quarter. 10x Genomics is maintaining its full-year 2024 revenue guidance of $670 million to $690 million, anticipating 8% to 12% growth over 2023.
Revenue increased by 5% to $141.0 million for the first quarter of 2024 compared to the same period in 2023.
Introduced four major new products including Visium HD Spatial Gene Expression and two new Chromium products powered by GEM-X.
10x Genomics is maintaining its full-year 2024 revenue guidance of $670 million to $690 million, predicting 8% to 12% growth over 2023.
Gross margin decreased to 66% in the first quarter of 2024, down from 73% in the same period of 2023 due to changes in product mix driven by Xenium instruments.
Operating loss was $61.5 million for the first quarter of 2024, compared to $52.0 million in the same period of 2023.
Net loss was $59.9 million for the first quarter of 2024, compared to $50.7 million in the same period of 2023.
Insights
The 5% year-over-year growth in revenue to
However, the decrease in gross margin from
Another point of interest is the operating loss widening to
Maintaining the full-year revenue guidance suggests management's confidence in the company's trajectory. However, given the current financials, it will be important to monitor how the new product launches contribute to the top-line growth and if they can indeed counterbalance the increased operating expenses and narrowed gross margin.
From a market perspective, the launch of four new products, including the Visium HD and GEM-X powered Chromium products, indicates an aggressive innovation strategy by 10x Genomics. The success of these products in the market is a considerable factor given that they aim to set new standards in single cell and spatial biology. If these products can capture market share and deliver on their value proposition, they have the potential to drive the revenue growth anticipated in the full-year guidance.
Furthermore, the initial positive customer feedback and the rise in Spatial revenue as a result of Visium HD's launch provide early indicators that the new offerings are well-received. However, investors should watch the long-term customer adoption and the competitive response since these are critical to sustaining revenue growth. They should also heed the significant drop in orders for Chromium, as it may impact future quarters unless offset by the uptake of the new GEM-X products.
Within the competitive landscape of biotechnology, 10x Genomics' focus on single cell and spatial biology positions them at the forefront of an evolving industry. Innovation, as seen with their recent product releases, is vital. The Visium HD product, enabling whole transcriptome spatial discovery at single-cell scale resolution, represents a substantive advancement in the field.
Yet, for retail investors, understanding the technicalities of these products can be challenging. Simply put, these products allow researchers to dissect the biological complexity at a level that was previously not possible, which could be critical for future breakthroughs in fields like immuno-oncology. The success of these products thus hinges on their adoption by research institutions and pharmaceutical companies engaged in cutting-edge research, which could, in turn, drive long-term growth for 10x Genomics.
Recent Highlights
- Revenue was
$141.0 million 5% increase over the corresponding period of 2023, driven by Spatial revenue. - Shipped Visium HD Spatial Gene Expression, enabling whole transcriptome spatial discovery at single cell-scale resolution.
- Shipped two major new Chromium products powered by GEM-X, the next generation of the company's leading single cell technology architecture, enabling higher performance at larger scale and lower cost.
- Shipped the Xenium multi-modal cell segmentation product and a new gene panel optimized for immuno-oncology applications.
"We delivered four major new products this quarter, which set a new standard for single cell and spatial biology," said Serge Saxonov, Co-founder and CEO of 10x Genomics. "In its first quarter, Visium HD helped drive strong growth in Spatial. We also had a significant number of customers trial our new GEM-X products, contributing to lower quarter-end orders for Chromium. Overall, we're encouraged by the early enthusiasm, adoption and feedback from customers and believe these new launches will help accelerate growth as we move through the year."
First Quarter 2024 Financial Results
Revenue was
Gross margin was
Operating expenses were
Operating loss was
Net loss was
Cash and cash equivalents and marketable securities were
2024 Financial Guidance
10x Genomics is maintaining its previously announced full year 2024 revenue guidance of
Webcast and Conference Call Information
10x Genomics will host a conference call to discuss the first quarter 2024 financial results, business developments and outlook after market close on Tuesday, April 30, 2024 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, potential, progress and launches, our expected performance advantages and benefits of using our products and services, customer usage 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. Actual outcomes and results could differ materially from these statements due to a number of factors and such 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. 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. 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 for the fiscal year ended December 31, 2023 and the company's 10-Q for the quarter ended March 31, 2024 to be filed with the Securities and Exchange Commission (SEC) and elsewhere in the documents 10x Genomics, Inc. files with the SEC from time to time.
Disclosure Information
10x Genomics uses filings with the Securities and Exchange Commission, our website (https://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 | |||
2024 | 2023 | ||
Revenue (1) | $ 141,006 | $ 134,285 | |
Cost of revenue (2) | 48,092 | 35,895 | |
Gross profit | 92,914 | 98,390 | |
Operating expenses: | |||
Research and development (2) | 68,638 | 67,098 | |
Selling, general and administrative (2) | 85,774 | 83,280 | |
Total operating expenses | 154,412 | 150,378 | |
Loss from operations | (61,498) | (51,988) | |
Other income (expense): | |||
Interest income | 4,736 | 3,869 | |
Interest expense | (1) | (19) | |
Other expense, net | (1,040) | (1,516) | |
Total other income | 3,695 | 2,334 | |
Loss before provision for income taxes | (57,803) | (49,654) | |
Provision for income taxes | 2,146 | 1,093 | |
Net loss | $ (59,949) | $ (50,747) | |
Net loss per share, basic and diluted | $ (0.50) | $ (0.44) | |
Weighted-average shares of common stock used in computing net loss per share, basic and diluted | 119,394,180 | 115,619,869 | |
(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 | |||
2024 | 2023 | ||
Instruments | |||
Chromium | $ 7,850 | $ 11,626 | |
Spatial | 17,603 | 7,550 | |
Total instruments revenue | 25,453 | 19,176 | |
Consumables | |||
Chromium | 83,927 | 101,096 | |
Spatial | 26,408 | 11,282 | |
Total consumables revenue | 110,335 | 112,378 | |
Services | 5,218 | 2,731 | |
Total revenue | $ 141,006 | $ 134,285 | |
The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands):
Three Months Ended | |||
2024 | 2023 | ||
$ 75,637 | $ 76,281 | ||
3,993 | 2,515 | ||
Total | 79,630 | 78,796 | |
34,721 | 28,422 | ||
13,924 | 14,031 | ||
12,731 | 13,036 | ||
Total | 26,655 | 27,067 | |
Total Revenue | $ 141,006 | $ 134,285 | |
(2) Includes stock-based compensation expense as follows:
Three Months Ended | |||
(in thousands) | 2024 | 2023 | |
Cost of revenue | $ 2,033 | $ 1,461 | |
Research and development | 16,888 | 17,780 | |
Selling, general and administrative | 17,208 | 22,860 | |
Total stock-based compensation expense | $ 36,129 | $ 42,101 | |
10x Genomics, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands) | |||
March 31, | December 31, | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 355,781 | $ 359,284 | |
Marketable securities | 16,033 | 29,411 | |
Accounts receivable, net | 91,305 | 114,832 | |
Inventory | 83,189 | 73,706 | |
Prepaid expenses and other current assets | 20,785 | 18,789 | |
Total current assets | 567,093 | 596,022 | |
Property and equipment, net | 269,486 | 279,571 | |
Operating lease right-of-use assets | 62,850 | 65,361 | |
Goodwill | 4,511 | 4,511 | |
Intangible assets, net | 16,129 | 16,616 | |
Other noncurrent assets | 2,844 | 3,062 | |
Total assets | $ 922,913 | $ 965,143 | |
Liabilities and stockholders' equity | |||
Current liabilities: | |||
Accounts payable | $ 20,216 | $ 15,738 | |
Accrued compensation and related benefits | 20,670 | 30,105 | |
Accrued expenses and other current liabilities | 42,424 | 56,648 | |
Deferred revenue | 14,296 | 13,150 | |
Operating lease liabilities | 11,127 | 11,521 | |
Total current liabilities | 108,733 | 127,162 | |
Operating lease liabilities, noncurrent | 81,049 | 83,849 | |
Deferred revenue, noncurrent | 9,787 | 8,814 | |
Other noncurrent liabilities | 4,510 | 4,275 | |
Total liabilities | 204,079 | 224,100 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock | — | — | |
Common stock | 2 | 2 | |
Additional paid-in capital | 2,063,657 | 2,025,890 | |
Accumulated deficit | (1,344,369) | (1,284,420) | |
Accumulated other comprehensive loss | (456) | (429) | |
Total stockholders' equity | 718,834 | 741,043 | |
Total liabilities and stockholders' equity | $ 922,913 | $ 965,143 | |
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SOURCE 10x Genomics, Inc
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