10x Genomics Reports First Quarter 2023 Financial Results

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

Spatial¹

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

     

China¹

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

 

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.


Company Codes: NASDAQ-NMS:TXG

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