Q4 2023 revenue growth of 18% and FY 2023
revenue growth of 20% over the corresponding periods of
2022
PLEASANTON, Calif., Feb. 15,
2024 /PRNewswire/ -- 10x Genomics, Inc. (Nasdaq:
TXG), a leader in single cell and spatial biology, today reported
financial results for the fourth quarter and full year ended
December 31, 2023 and provided outlook for 2024.
Recent Highlights
- Revenue was $184.0 million for
the fourth quarter and $618.7 million
for the full year of 2023, representing 18% and 20% increases over
the corresponding periods of 2022.
- Increased cumulative instruments sold to 5,966 as of the end of
2023, comprising 5,180 Chromium instruments, 531 Visium instruments
and 255 Xenium instruments.
- Launched preorders for Visium HD Spatial Gene Expression,
enabling whole transcriptome spatial discovery at single cell-scale
resolution.
- Unveiled and launched preorders for the first two products
featuring Chromium GEM-X technology, the next generation of the
company's leading single cell technology architecture, enabling
higher performance at larger scale and lower cost.
"Our innovation engine has consistently delivered
transformational technologies that have enabled our customers to
expand the frontiers of science," said Serge Saxonov, Co-founder
and CEO of 10x Genomics. "We're building on last year's
extraordinary launch of Xenium with new, franchise-defining
products in each of our three platforms that will take our
portfolio to the next level. Our priority is to ensure our
customers' success with these new products as we work together to
deliver on the full promise and potential of single cell and
spatial biology to advance human health."
Fourth Quarter 2023 Financial Results
Revenue was $184.0 million for the
three months ended December 31, 2023, a 18% increase from
$156.2 million for the three months
ended December 31, 2022. This increase was primarily due to a
higher volume of Spatial instruments and consumables sold.
Gross margin was 63% for the fourth quarter of 2023, as compared
to 76% for the corresponding prior year period. The decrease in
gross margin was primarily due to product mix with a higher mix of
Spatial instruments sold.
Operating expenses were $171.0
million for the fourth quarter of 2023, a 20% increase from
$142.5 million for the corresponding
prior year period. The increase was primarily driven by
$19.6 million of in-process research
and development expense related to an agreement to acquire certain
intangible and other assets earlier this year and impairment
charges related to long-lived assets.
Operating loss was $55.2 million
for the fourth quarter of 2023, as compared to an operating loss of
$23.1 million for the corresponding
prior year period. Operating loss also includes $38.9 million of stock-based compensation for the
fourth quarter of 2023, as compared to $41.0
million for the fourth quarter of 2022.
Net loss was $49.0 million for the
fourth quarter of 2023, as compared to a net loss of $17.2 million for the corresponding prior year
period. This includes $19.6 million
of in-process research and development expense related to an
agreement to acquire certain intangible and other assets earlier
this year.
Full Year 2023 Financial Results
Revenue was $618.7 million for the
year ended December 31, 2023, a 20% increase from $516.4 million for 2022.
Gross margin was 66% for full year 2023, as compared to 77% for
2022. The decrease in gross margin was primarily due to product mix
with a higher mix of Spatial instruments sold.
Operating expenses were $674.6
million for full year 2023, as compared to $564.0 million for 2022, an increase of 20%. The
increase was primarily driven by $61.0
million of in-process research and development expense
related to an agreement to acquire certain intangible and other
assets earlier this year and higher personnel expenses including
stock-based compensation expense.
Operating loss was $265.3 million
for full year 2023, as compared to an operating loss of
$167.9 million for 2022. This
includes $167.0 million of
stock-based compensation for full year 2023, as compared to
$136.8 million for full year
2022.
Net loss was $255.1 million for
full year 2023, as compared to a net loss of $166.0 million for 2022. This includes
$61.0 million of in-process research
and development expense related to an agreement to acquire certain
intangible and other assets earlier this year.
Cash and cash equivalents and marketable securities were
$388.7 million as of
December 31, 2023.
2024 Financial Guidance
10x Genomics expects full year 2024 revenue to be in the range
of $670 million to $690 million, representing 8% to 12% growth over
full year 2023 revenue.
Webcast and Conference Call Information
10x Genomics will host a conference call to discuss the fourth
quarter and full year 2023 financial results, business developments
and outlook after market close on Thursday, February 15, 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 for 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 and elsewhere in the documents 10x Genomics, Inc. files with
the Securities and Exchange Commission from time to time.
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.
Consolidated
Statement of Operations
(Unaudited)
(In thousands,
except share and per share data)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
(1)
|
$
183,979
|
|
$
156,232
|
|
$
618,727
|
|
$
516,409
|
Cost of revenue
(2)
|
68,197
|
|
36,827
|
|
209,414
|
|
120,386
|
Gross
profit
|
115,782
|
|
119,405
|
|
409,313
|
|
396,023
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development (2)
|
65,267
|
|
63,614
|
|
270,332
|
|
265,667
|
In-process research
and development
|
19,578
|
|
—
|
|
60,980
|
|
—
|
Selling, general and
administrative (2)
|
86,125
|
|
78,887
|
|
343,330
|
|
298,300
|
Total operating
expenses
|
170,970
|
|
142,501
|
|
674,642
|
|
563,967
|
Loss from
operations
|
(55,188)
|
|
(23,096)
|
|
(265,329)
|
|
(167,944)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
4,637
|
|
2,815
|
|
16,906
|
|
6,647
|
Interest
expense
|
(8)
|
|
(125)
|
|
(33)
|
|
(476)
|
Other income
(expense), net
|
3,961
|
|
3,995
|
|
(307)
|
|
(198)
|
Total other
income
|
8,590
|
|
6,685
|
|
16,566
|
|
5,973
|
Loss before provision
for income taxes
|
(46,598)
|
|
(16,411)
|
|
(248,763)
|
|
(161,971)
|
Provision for income
taxes
|
2,354
|
|
804
|
|
6,336
|
|
4,029
|
Net loss
|
$
(48,952)
|
|
$
(17,215)
|
|
$
(255,099)
|
|
$
(166,000)
|
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted
|
$
(0.41)
|
|
$
(0.15)
|
|
$
(2.18)
|
|
$
(1.46)
|
Weighted-average shares
used to compute net loss per share, basic and diluted
|
118,565,724
|
|
114,757,572
|
|
117,165,036
|
|
113,858,684
|
|
|
|
|
|
|
|
|
(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
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Instruments
|
|
|
|
|
|
|
|
|
Chromium
|
|
$
11,150
|
|
$
15,243
|
|
$
47,866
|
|
$
58,552
|
Spatial
|
|
27,248
|
|
7,089
|
|
75,605
|
|
13,844
|
Total instruments
revenue
|
|
38,398
|
|
22,332
|
|
123,471
|
|
72,396
|
Consumables
|
|
|
|
|
|
|
|
|
Chromium
|
|
118,144
|
|
120,238
|
|
420,316
|
|
400,433
|
Spatial
|
|
22,170
|
|
11,359
|
|
59,237
|
|
35,155
|
Total consumables
revenue
|
|
140,314
|
|
131,597
|
|
479,553
|
|
435,588
|
Services
|
|
5,267
|
|
2,303
|
|
15,703
|
|
8,425
|
Total
revenue
|
|
$
183,979
|
|
$
156,232
|
|
$
618,727
|
|
$
516,409
|
The following table presents revenue by geography based on the
location of the customer for the periods indicated (in
thousands):
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Americas
|
|
|
|
|
|
|
|
|
United
States
|
|
$
99,322
|
|
$
82,828
|
|
$
360,091
|
|
$
284,987
|
Americas (excluding
United States)
|
|
4,520
|
|
2,794
|
|
13,101
|
|
8,791
|
Total
Americas
|
|
103,842
|
|
85,622
|
|
373,192
|
|
293,778
|
Europe, Middle East
and Africa
|
|
50,589
|
|
43,001
|
|
142,276
|
|
117,068
|
Asia-Pacific
|
|
|
|
|
|
|
|
|
China¹
|
|
11,748
|
|
16,277
|
|
50,965
|
|
64,356
|
Asia-Pacific
(excluding China)
|
|
17,800
|
|
11,332
|
|
52,294
|
|
41,207
|
Total
Asia-Pacific
|
|
29,548
|
|
27,609
|
|
103,259
|
|
105,563
|
Total
Revenue
|
|
$
183,979
|
|
$
156,232
|
|
$
618,727
|
|
$
516,409
|
|
|
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
December 31,
|
|
Year Ended
December 31,
|
(in
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cost of
revenue
|
$
1,928
|
|
$
1,511
|
|
$
7,068
|
|
$
5,259
|
Research and
development
|
17,608
|
|
17,865
|
|
72,804
|
|
59,211
|
Selling, general and
administrative
|
19,382
|
|
21,598
|
|
87,078
|
|
72,378
|
Total stock-based
compensation expense
|
$
38,918
|
|
$
40,974
|
|
$
166,950
|
|
$
136,848
|
10x Genomics,
Inc.
Consolidated Balance
Sheets
(Unaudited)
(In thousands,
except share and per share data)
|
|
|
December
31,
|
|
2023
|
|
2022
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
359,284
|
|
$
219,746
|
Marketable
securities
|
29,411
|
|
210,238
|
Restricted
cash
|
—
|
|
2,633
|
Accounts receivable,
net
|
114,832
|
|
104,211
|
Inventory
|
73,706
|
|
81,629
|
Prepaid expenses and
other current assets
|
18,789
|
|
16,578
|
Total current
assets
|
596,022
|
|
635,035
|
Property and equipment,
net
|
279,571
|
|
289,328
|
Restricted
cash
|
—
|
|
4,974
|
Operating lease
right-of-use assets
|
65,361
|
|
69,882
|
Goodwill
|
4,511
|
|
4,511
|
Intangible assets,
net
|
16,616
|
|
22,858
|
Other noncurrent
assets
|
3,062
|
|
2,392
|
Total
assets
|
$
965,143
|
|
$ 1,028,980
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
15,738
|
|
$
21,599
|
Accrued compensation
and related benefits
|
30,105
|
|
32,675
|
Accrued expenses and
other current liabilities
|
56,648
|
|
59,779
|
Deferred
revenue
|
13,150
|
|
7,867
|
Operating lease
liabilities
|
11,521
|
|
9,037
|
Total current
liabilities
|
127,162
|
|
130,957
|
Operating lease
liabilities, noncurrent
|
83,849
|
|
86,139
|
Deferred revenue,
noncurrent
|
8,814
|
|
3,165
|
Other noncurrent
liabilities
|
4,275
|
|
2,976
|
Total
liabilities
|
224,100
|
|
223,237
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred stock,
$0.00001 par value; 100,000,000 shares authorized, no shares issued
or
outstanding as of December 31, 2023 and December 31,
2022
|
—
|
|
—
|
Common stock, $0.00001
par value; 1,100,000,000 shares authorized and 119,095,362
and 115,195,009 shares issued and outstanding as of December 31,
2023 and 2022
|
2
|
|
2
|
Additional paid-in
capital
|
2,025,890
|
|
1,839,397
|
Accumulated
deficit
|
(1,284,420)
|
|
(1,029,321)
|
Accumulated other
comprehensive loss
|
(429)
|
|
(4,335)
|
Total stockholders'
equity
|
741,043
|
|
805,743
|
Total liabilities and
stockholders' equity
|
$
965,143
|
|
$ 1,028,980
|
|
|
|
|
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SOURCE 10x Genomics, Inc