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10x Genomics Reports Second Quarter 2023 Financial Results

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PLEASANTON, Calif., Aug. 3, 2023 /PRNewswire/ -- 10x Genomics, Inc. (Nasdaq: TXG), a leader in single cell and spatial biology, today reported financial results for the second quarter ended June 30, 2023.

Recent Highlights

  • Revenue was $146.8 million for the second quarter, representing a 28% increase over the corresponding period of 2022.
  • Accelerated Xenium's momentum with strong shipments, multiple new curated and customizable gene panels and a major update of its onboard software to deliver even higher levels of performance.
  • Launched the Visium CytAssist Gene and Protein Expression assay, combining tissue profiling with whole transcriptome spatial analysis and high-plex protein co-detection.
  • Delivered double-digit growth of Chromium single cell consumables and increased Chromium X Series placements year over year, led by strong performance in the Americas and EMEA.

"Xenium established itself as the best performing in situ platform, as more and more researchers see firsthand the system's clear advantages in sensitivity, specificity, throughput and data analysis," said Serge Saxonov, Co-founder and CEO of 10x Genomics. "This was a strong quarter with momentum across our single cell and spatial portfolio despite the headwinds in China."

Second Quarter 2023 Financial Results

Revenue was $146.8 million for the second quarter of 2023, a 28% increase from $114.6 million for the corresponding prior year period.

Gross margin was 68% for the second quarter of 2023, as compared to 76% for the corresponding prior year period. The decrease in gross margin was primarily due to changes in product mix resulting from newly introduced products.

Operating expenses were $163.0 million for the second quarter of 2023, a 9% increase from $150.0 million for the corresponding prior year period. This increase was driven by higher personnel expenses, including stock-based compensation expense, and increased costs for facilities and information technology to support operational expansion.

Operating loss was $63.4 million for the second quarter of 2023, as compared to $63.1 million for the corresponding prior year period. Operating loss includes $45.7 million of stock-based compensation for the second quarter of 2023, as compared to $36.3 million for the corresponding prior year period.

Net loss was $62.4 million for the second quarter of 2023, as compared to a net loss of $64.5 million for the corresponding prior year period.

Cash and cash equivalents and marketable securities were $391.4 million as of June 30, 2023.

2023 Financial Guidance

10x Genomics is raising its full year 2023 revenue guidance and now expects revenue in the range of $600 million to $620 million, representing 16% to 20% growth over full year 2022. This compares to its previous revenue guidance of $590 million to $610 million.

Webcast and Conference Call Information

10x Genomics will host a conference call to discuss the second quarter 2023 financial results, business developments and outlook after market close on Thursday, August 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 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 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," "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
June 30,


Six Months Ended
June 30,


2023


2022


2023


2022

Revenue (1)

$         146,819


$         114,609


$         281,104


$         229,105

Cost of revenue (2)

47,207


27,704


83,102


53,182

Gross profit

99,612


86,905


198,002


175,923

Operating expenses:








Research and development (2)

71,460


70,685


138,558


134,763

Selling, general and administrative (2)

91,510


79,337


174,790


146,012

Total operating expenses

162,970


150,022


313,348


280,775

Loss from operations

(63,358)


(63,117)


(115,346)


(104,852)

Other income (expense):








Interest income

4,100


1,238


7,969


1,807

Interest expense

(5)


(109)


(24)


(237)

Other expense, net

(1,504)


(1,843)


(3,020)


(2,243)

Total other income (expense)

2,591


(714)


4,925


(673)

Loss before provision for income taxes

(60,767)


(63,831)


(110,421)


(105,525)

Provision for income taxes

1,647


627


2,740


1,346

Net loss

$          (62,414)


$          (64,458)


$       (113,161)


$       (106,871)









Net loss per share, basic and diluted

$              (0.53)


$              (0.57)


$              (0.97)


$              (0.94)

Weighted-average shares of common stock used in computing net loss per share, basic and diluted

116,707,672


113,574,757


116,166,776


113,272,158

 

(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
June 30,


Six Months Ended
June 30,


2023


2022


2023


2022

Instruments








Chromium

$           12,859


$           14,047


$           24,485


$           28,373

Spatial

18,096


689


25,646


792

Total instruments revenue

30,955


14,736


50,131


29,165

Consumables








Chromium

100,794


91,048


201,890


182,327

Spatial

11,694


6,886


22,976


13,557

Total consumables revenue

112,488


97,934


224,866


195,884

Services

3,376


1,939


6,107


4,056

Total revenue

$         146,819


$         114,609


$         281,104


$         229,105

 

The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands):


Three Months Ended
June 30,


Six Months Ended
June 30,


2023


2022


2023


2022

Americas








United States

$           88,394


$           69,373


$         164,675


$         126,814

Americas (excluding United States)

3,149


1,515


5,664


3,761

Total Americas

91,543


70,888


170,339


130,575

Europe, Middle East and Africa

31,246


25,608


59,668


46,140

Asia-Pacific








China¹

12,755


9,984


26,786


31,766

Asia-Pacific (excluding China)

11,275


8,129


24,311


20,624

Total Asia-Pacific

24,030


18,113


51,097


52,390

Total Revenue

$         146,819


$         114,609


$         281,104


$         229,105



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
June 30,


Six Months Ended
June 30,

(in thousands)

2023


2022


2023


2022

Cost of revenue

$              1,835


$              1,453


$              3,296


$              2,467

Research and development

19,560


15,579


37,340


26,870

Selling, general and administrative

24,301


19,281


47,161


33,023

Total stock-based compensation expense

$           45,696


$           36,313


$           87,797


$           62,360

 

10x Genomics, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)



June 30,
2023


December 31,
2022

Assets




Current assets:




Cash and cash equivalents

$         325,879


$         219,746

Marketable securities

65,506


210,238

Restricted cash

1,500


2,633

Accounts receivable, net

87,685


104,211

Inventory

83,687


81,629

Prepaid expenses and other current assets

18,683


16,578

Total current assets

582,940


635,035

Property and equipment, net

284,913


289,328

Restricted cash

3,474


4,974

Operating lease right-of-use assets

71,049


69,882

Goodwill

4,511


4,511

Intangible assets, net

22,290


22,858

Other noncurrent assets

20,461


2,392

Total assets

$         989,638


$      1,028,980

Liabilities and stockholders' equity




Current liabilities:




Accounts payable

$           23,124


$           21,599

Accrued compensation and related benefits

22,372


32,675

Accrued expenses and other current liabilities

34,088


59,779

Deferred revenue

9,217


7,867

Operating lease liabilities

9,286


9,037

Total current liabilities

98,087


130,957

Operating lease liabilities, noncurrent

90,331


86,139

Other noncurrent liabilities

7,919


6,141

Total liabilities

196,337


223,237

Commitments and contingencies




Stockholders' equity:




Preferred stock


Common stock

2


2

Additional paid-in capital

1,936,750


1,839,397

Accumulated deficit

(1,142,482)


(1,029,321)

Accumulated other comprehensive loss

(969)


(4,335)

Total stockholders' equity

793,301


805,743

Total liabilities and stockholders' equity

$         989,638


$      1,028,980

 

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SOURCE 10x Genomics, Inc.

10x Genomics, Inc.

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