10x Genomics Reports Second Quarter 2022 Financial Results

PLEASANTON, Calif., Aug. 8, 2022 /PRNewswire/ -- 10x Genomics, Inc. (Nasdaq: TXG) today reported financial results for the second quarter ended June 30, 2022.

Recent Highlights

  • Revenue was $114.6 million for the second quarter, representing a 1% decrease over the corresponding period of 2021.
  • Announced the breakthrough capability of single-cell analysis on FFPE samples with its recently launched Fixed RNA Profiling Kit.
  • Began shipping Visium CytAssist, the company's first spatial instrument.
  • Announced the hiring of Jim Wilbur, Ph.D., as Chief Commercial Officer.

"Our results this quarter fell short of our expectations as we navigated some macro headwinds, particularly outside of the United States," said Serge Saxonov, Co-founder and CEO of 10x Genomics. "Our topline growth this year will be slower than our previous expectations, but we firmly believe the underlying opportunity for our single cell and spatial technologies is as strong as ever. We are driving our innovation engine and building on our broad commercial reach so we can deliver on the full potential of this tremendous opportunity."

Second Quarter 2022 Financial Results

Revenue was $114.6 million for the second quarter of 2022, a 1% decrease from $115.8 million for the corresponding prior year period. This decrease was primarily driven by decreased demand due to lockdowns in China, delayed customer reorders in Europe resulting from a logistics cold-chain issue, execution challenges and unfavorable foreign exchange headwinds.

Gross margin was 76% for the second quarter of 2022, as compared to 96% for the corresponding prior year period. The decrease in gross margin was primarily due to a one-time reversal of $14.7 million of accrued royalties in the second quarter of 2021, and higher manufacturing costs, higher royalty expenses, higher inventory charges and higher warranty costs.

Operating expenses were $150.0 million for the second quarter of 2022, a 24% increase from $121.3 million for the corresponding prior year period. This increase was driven by higher personnel expenses, including stock-based compensation, increased costs for facilities and information technology to support operational expansion, and increased marketing expenses, partially offset by a decrease in outside legal expenses.

Operating loss was $63.1 million for the second quarter of 2022, as compared to $10.3 million for the corresponding prior year period. Operating loss includes $36.3 million of stock-based compensation for the second quarter of 2022, as compared to $26.9 million for the corresponding prior year period.

Net loss was $64.5 million for the second quarter of 2022, as compared to a net loss of $11.1 million for the corresponding prior year period.

Cash and cash equivalents and marketable securities were $499.7 million as of June 30, 2022.

2022 Financial Guidance

10x Genomics is updating its outlook for the full year 2022. The company now expects revenue to be in the range of $500 million to $520 million, representing 2% to 6% growth over full year 2021.

Webcast and Conference Call Information

10x Genomics will host a conference call to discuss the second quarter 2022 financial results, business developments and outlook after market close on Monday, August 8, 2022 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 3,800 research papers on discoveries ranging from oncology to immunology and neuroscience. Our patent portfolio comprises more than 1,500 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" or "continue" 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 business operations, financial performance and results of operations, including our expectations regarding revenue and guidance, as well as our ability to meet our anticipated cash needs for the foreseeable future. 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" 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, as the COVID-19 pandemic is continuously evolving, such forward-looking statements may not accurately or fully reflect the potential impact that the COVID-19 pandemic 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,

 

2022

 

2021

 

2022

 

2021

Revenue

$ 114,609

 

$ 115,842

 

$ 229,105

 

$ 221,663

Cost of revenue (1)

27,704

 

4,915

 

53,182

 

21,975

Gross profit

86,905

 

110,927

 

175,923

 

199,688

Operating expenses:

             

Research and development (1)

70,685

 

53,402

 

134,763

 

95,285

Selling, general and administrative (1)

79,337

 

68,703

 

146,012

 

125,607

Accrued contingent liabilities

 

(850)

 

 

(660)

Total operating expenses

150,022

 

121,255

 

280,775

 

220,232

Loss from operations

(63,117)

 

(10,328)

 

(104,852)

 

(20,544)

Other income (expense):

             

Interest income

1,238

 

58

 

1,807

 

108

Interest expense

(109)

 

(209)

 

(237)

 

(430)

Other (expense) income, net

(1,843)

 

521

 

(2,243)

 

(208)

Total other (expense) income

(714)

 

370

 

(673)

 

(530)

Loss before provision for income taxes

(63,831)

 

(9,958)

 

(105,525)

 

(21,074)

Provision for income taxes

627

 

1,094

 

1,346

 

1,529

Net loss

$ (64,458)

 

$ (11,052)

 

$ (106,871)

 

$ (22,603)

               

Net loss per share, basic and diluted

$ (0.57)

 

$ (0.10)

 

$ (0.94)

 

$ (0.21)

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

113,574,757

 

109,866,294

 

113,272,158

 

109,293,342

 

(1) Includes stock-based compensation expense as follows:

 
 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

(in thousands)

2022

 

2021

 

2022

 

2021

Cost of revenue

$ 1,453

 

$ 841

 

$ 2,467

 

$ 1,305

Research and development

15,579

 

12,140

 

26,870

 

18,936

Selling, general and administrative

19,281

 

13,951

 

33,023

 

22,867

Total stock-based compensation expense

$ 36,313

 

$ 26,932

 

$ 62,360

 

$ 43,108

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

 
 

June 30,
2022

 

December 31,
2021

Assets

     

Current assets:

     

Cash and cash equivalents

$ 274,187

 

$ 587,447

Marketable securities

225,546

 

Restricted cash

508

 

1,028

Accounts receivable, net

76,204

 

85,254

Inventory

70,646

 

59,966

Prepaid expenses and other current assets

19,141

 

13,896

Total current assets

666,232

 

747,591

Property and equipment, net

223,001

 

169,492

Restricted cash

7,095

 

7,598

Operating lease right-of-use assets

73,425

 

60,918

Goodwill

4,511

 

4,511

Intangible assets, net

24,128

 

25,397

Other noncurrent assets

3,199

 

3,319

Total assets

$ 1,001,591

 

$ 1,018,826

Liabilities and stockholders' equity

     

Current liabilities:

     

Accounts payable

$ 26,731

 

$ 17,351

Accrued compensation and related benefits

23,505

 

31,626

Accrued expenses and other current liabilities

53,222

 

50,909

Deferred revenue

6,473

 

5,340

Operating lease liabilities

7,977

 

5,131

Total current liabilities

117,908

 

110,357

Accrued license fee, noncurrent

 

5,814

Operating lease liabilities, noncurrent

91,040

 

76,847

Other noncurrent liabilities

9,127

 

8,240

Total liabilities

218,075

 

201,258

Commitments and contingencies

     

Stockholders' equity:

     

Preferred stock

 

Common stock

2

 

2

Additional paid-in capital

1,757,671

 

1,680,865

Accumulated deficit

(970,192)

 

(863,321)

Accumulated other comprehensive income (loss)

(3,965)

 

22

Total stockholders' equity

783,516

 

817,568

Total liabilities and stockholders' equity

$ 1,001,591

 

$ 1,018,826

Cision View original content:https://www.prnewswire.com/news-releases/10x-genomics-reports-second-quarter-2022-financial-results-301601829.html

SOURCE 10x Genomics, Inc.


Company Codes: NASDAQ-NMS:TXG

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