Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________

FORM 8-K

______________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 24, 2024

10x Genomics, Inc.

(Exact name of registrant as specified in its charter)


Delaware	001-39035	45-5614458
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

6230 Stoneridge Mall Road

Pleasanton, California 94588

(925) 401-7300

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

___________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e- 4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol

Name of each exchange

on which registered

Class A common stock, par value $0.00001 per share

TXG

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On October 29, 2024, 10x Genomics, Inc. (the “Company”) issued a press release announcing the Company’s financial results for the quarter ended September 30, 2024. A copy of the press release is attached hereto as Exhibit 99.1.

The information furnished pursuant to Item 2.02 in this Current Report on Form 8-K and the press release attached as Exhibit 99.1 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On October 24, 2024, Mathai Mammen informed the Company of his decision to resign as a member of the Board of Directors (the “Board”) of the Company and the Nominating and Corporate Governance Committee of the Board, effective immediately. Dr. Mammen’s decision to resign was due solely to professional time commitments and is not due to any disagreement with the Company’s management team, operations, financial statements, policies or procedures.

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits.


Exhibit No.						Description of Exhibits

99.1						Press Release dated October 29, 2024.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document).

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	10x Genomics, Inc.

	By:	/s/ Eric S. Whitaker
	Name:	Eric S. Whitaker
	Title:	Chief Legal Officer

Date: October 29, 2024

Exhibit 99.1

10x Genomics Reports Third Quarter 2024 Financial Results

PLEASANTON, Calif. October 29, 2024 – 10x Genomics, Inc. (Nasdaq: TXG), a leader in single cell and spatial biology, today reported financial results for the third quarter ended September 30, 2024.

Recent Highlights

•Revenue was $151.7 million for the third quarter, in line with the company’s preliminary announcement, a 1% decrease over the corresponding period of 2023, primarily driven by lower instrument revenue, offset by stronger contributions from consumables.

•Began shipping GEM-X Flex, setting a new standard for the cost per cell for researchers and enabling them to run millions of cells for less than one cent per cell. GEM-X Flex also delivers a number of improvements that are particularly valuable for clinical FFPE samples.

•Launched GEM-X Universal Multiplex, enabling researchers to run more cost-effective single cell studies decreasing the cost per sample, even for small scale experiments.

•Began shipping Chromium Xo, providing a budget-friendly instrument for routine, high-performance single cell analysis.

“Our results this quarter fell short of our expectations given greater-than-anticipated disruption from the sales restructuring we implemented in the quarter and cautious customer spending. As these dynamics persist, especially under a difficult macro backdrop, our revenue growth this year will be lower than our previous expectations,” said Serge Saxonov, Co-founder and CEO of 10x Genomics. “Despite these challenges, I am confident that the steps we are taking will enable us to reach more customers, execute consistently across the portfolio and drive the broad democratization of our technologies to reach the full potential of the large opportunity ahead.”

Third Quarter 2024 Financial Results

Revenue was $151.7 million for the third quarter of 2024, a 1% decrease from $153.6 million for the corresponding prior year period.

Gross margin was 70% for the third quarter of 2024, as compared to 62% for the corresponding prior year period. The increase in gross margin was primarily due to change in product mix.

Operating expenses were $147.9 million for the third quarter of 2024, a 22% decrease from $190.3 million for the corresponding prior year period. The decrease was primarily driven by a $41.4 million in-process research and development expense related to an agreement to acquire certain intangible and other assets in the prior year period.

Operating loss was $41.5 million for the third quarter of 2024, as compared to $94.8 million for the corresponding prior year period. Operating loss includes $33.9 million of stock-based compensation for the third quarter of 2024, as compared to $40.2 million of stock-based compensation for the corresponding prior year period. Operating loss in the third quarter of 2023 included $41.4 million of in-process research and development expense.

Net loss was $35.8 million for the third quarter of 2024, as compared to a net loss of $93.0 million for the corresponding prior year period.

Cash and cash equivalents were $398.2 million as of September 30, 2024.

2024 Financial Guidance

10x Genomics is updating its outlook for the full year 2024. The company now expects revenue to be in the range of $595 million to $605 million versus a prior range of $640 million to $660 million. The updated range represents a 3% decrease from the full year 2023 revenue at the midpoint.

Webcast and Conference Call Information

10x Genomics will host a conference call to discuss the third quarter 2024 financial results, business developments and outlook after market close on Tuesday, October 29, 2024, 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 organization and organizational restructuring, commercial execution, opportunities, specifications, costs and adoption of 10x Genomics, Inc.’s products and services, expected performance advantages and benefits of using 10x Genomics, Inc.’s products and services and 10x Genomics, Inc.’s financial performance and results of operations, including 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 10x Genomics’ 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, its website (www.10xgenomics.com), press releases, public conference calls, public webcasts and its social media accounts as means of disclosing material non-public information and for complying with its 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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Revenue (1)	$	151,654	$	153,644	$	445,764	$	434,748
Cost of revenue (2)	45,261		58,115		142,237		141,217
Gross profit	106,393		95,529		303,527		293,531
Operating expenses:
Research and development (2)	66,174		66,507		197,730		205,065
In-process research and development	—		41,402		—		41,402
Selling, general and administrative (2)	81,704		82,415		250,517		257,205

Total operating expenses	147,878		190,324		448,247		503,672
Loss from operations	(41,485)		(94,795)		(144,720)		(210,141)
Other income (expense):
Interest income	4,971		4,300		14,422		12,269
Interest expense	(2)		(1)		(4)		(25)
Other income (expense), net	2,078		(1,248)		982		(4,268)

Total other income, net	7,047		3,051		15,400		7,976
Loss before provision for income taxes	(34,438)		(91,744)		(129,320)		(202,165)
Provision for income taxes	1,315		1,242		4,279		3,982
Net loss	$	(35,753)	$	(92,986)	$	(133,599)	$	(206,147)

Net loss per share, basic and diluted	$	(0.30)	$	(0.79)	$	(1.11)	$	(1.77)
Weighted-average shares of common stock used in computing net loss per share, basic and diluted	120,733,030		117,728,293		120,067,168		116,693,008

(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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Instruments
Chromium	$	7,641	$	12,231	$	24,283	$	36,716
Spatial	11,415		22,711		44,078		48,357
Total instruments revenue	19,056		34,942		68,361		85,073
Consumables
Chromium	96,536		100,282		274,571		302,172
Spatial	29,668		14,091		85,330		37,067
Total consumables revenue	126,204		114,373		359,901		339,239
Services	6,394		4,329		17,502		10,436
Total revenue	$	151,654	$	153,644	$	445,764	$	434,748

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Americas
United States	$	84,723	$	96,094	$	250,032	$	260,769
Americas (excluding United States)	3,099		2,917		10,511		8,581
Total Americas	87,822		99,011		260,543		269,350
Europe, Middle East and Africa	37,851		32,019		109,934		91,687
Asia-Pacific
China	15,030		12,431		42,692		39,217
Asia-Pacific (excluding China)	10,951		10,183		32,595		34,494
Total Asia-Pacific	25,981		22,614		75,287		73,711
Total revenue	$	151,654	$	153,644	$	445,764	$	434,748

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


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Cost of revenue	$	2,169	$	1,844	$	6,127	$	5,140
Research and development	15,978		17,856		50,728		55,196
Selling, general and administrative	15,763		20,535		51,354		67,696
Total stock-based compensation expense	$	33,910	$	40,235	$	108,209	$	128,032

10x Genomics, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)


	September 30, 2024		December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	398,159	$	359,284
Marketable securities	—		29,411

Accounts receivable, net	83,525		114,832
Inventory	94,050		73,706
Prepaid expenses and other current assets	18,159		18,789
Total current assets	593,893		596,022
Property and equipment, net	258,759		279,571

Operating lease right-of-use assets	59,579		65,361
Goodwill	4,511		4,511
Intangible assets, net	16,149		16,616
Other noncurrent assets	4,903		3,062
Total assets	$	937,794	$	965,143
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	26,210	$	15,738
Accrued compensation and related benefits	30,080		30,105
Accrued expenses and other current liabilities	37,770		56,648

Deferred revenue	17,760		13,150
Operating lease liabilities	9,415		11,521

Total current liabilities	121,235		127,162




Operating lease liabilities, noncurrent	76,461		83,849
Deferred revenue, noncurrent	12,349		8,814
Other noncurrent liabilities	4,945		4,275
Total liabilities	214,990		224,100
Commitments and contingencies
Stockholders’ equity:
Preferred stock	—		—
Common stock	2		2
Additional paid-in capital	2,140,789		2,025,890
Accumulated deficit	(1,418,019)		(1,284,420)
Accumulated other comprehensive income (loss)	32		(429)
Total stockholders’ equity	722,804		741,043
Total liabilities and stockholders’ equity	$	937,794	$	965,143

Cover	Oct. 24, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Oct. 24, 2024
Entity Registrant Name	10x Genomics, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-39035
Entity Tax Identification Number	45-5614458
Entity Address, Address Line One	6230 Stoneridge Mall Road
Entity Address, City or Town	Pleasanton
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94588
City Area Code	925
Local Phone Number	401-7300
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class A common stock, par value $0.00001 per share
Trading Symbol	TXG
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001770787