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10x Genomics Reports Third Quarter 2021 Financial Results

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Q3 2021 revenue growth of 74% over prior year and 8% over prior quarter

PLEASANTON, Calif., Nov. 3, 2021 /PRNewswire/ -- 10x Genomics, Inc. (Nasdaq: TXG) today reported financial results for the third quarter ended September 30, 2021.

Recent Highlights

  • Revenue was $125.3 million for the third quarter, representing a 74% increase over the corresponding period of 2020 and an 8% increase compared to the second quarter of 2021.

  • Began shipping the Chromium X instrument, providing flexible analysis of up to one million cells per experiment, and high-throughput Gene Expression and Immune Profiling consumables, enabling affordable and routine large-scale gene expression and multiomic analyses.

  • Continued the strong momentum of customer publications by surpassing 3,000 research papers using our products, advancing scientific discovery in application areas such as oncology, immunology, neuroscience and infectious disease.

"Our team delivered strong results this quarter, successfully launching the Chromium X while navigating the complexities of this operating environment," said Serge Saxonov, Co-founder and CEO of 10x Genomics. "Our conviction in the vast opportunity ahead remains as strong as ever, and we will accelerate our investments to continue to innovate, drive scale and fulfill the promise of single cell and spatial biology."

Third Quarter 2021 Financial Results

Revenue was $125.3 million for the three months ended September 30, 2021, a 74% increase from $71.8 million for the three months ended September 30, 2020. This increase was primarily the result of increased consumables revenue driven by growth in the instrument installed base.

Gross margin was 80% for the third quarter of 2021, which is flat as compared to 80% for the corresponding prior year period as lower accrued royalties related to the Bio-Rad litigation were offset by the impact in shifting product mix.

Operating expenses were $116.7 million for the third quarter of 2021, a 5% decrease from $122.7 million for the three months ended September 30, 2020. This decrease was driven by lower in-process research and development expense this quarter due to the $40.6 million charge during the quarter ended September 30, 2020 related to the acquisition of CartaNA and decreased legal expenses. This decrease was partially offset by increased operating expenses related to higher personnel expenses, including stock-based compensation, increased expenses related to facilities and technology and increased marketing expenses.

Operating loss was $15.9 million for the third quarter of 2021, as compared to $65.3 million for the corresponding prior year period which included $40.6 million of in-process research and development expense related to the acquisition of CartaNA. Operating loss includes $26.0 million of stock-based compensation for the third quarter of 2021, as compared to $13.8 million for the third quarter of 2020.

Net loss was $17.2 million for the third quarter of 2021, as compared to a net loss of $65.8 million for the corresponding prior year period.

Cash and cash equivalents were $600.4 million as of September 30, 2021.

2021 Financial Guidance

10x Genomics is revising its full year 2021 revenue guidance to $490 million to $500 million, representing 64% to 67% growth over full year 2020 revenue.

Webcast and Conference Call Information

10x Genomics will host a conference call to discuss the third quarter 2021 financial results, business developments and outlook after market close on Wednesday, November 3, 2021 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. The company's 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 2020 based on publications and all of the top 20 global pharmaceutical companies by 2020 research and development spend, and have been cited in over 3,000 research papers on discoveries ranging from oncology to immunology and neuroscience. The company's patent portfolio comprises more than 1,200 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 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 the company's business operations, financial performance and results of operations, including its expectations for full year 2021 revenue as well as the company's ability to meet its 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, including the potential impact of the ongoing COVID-19 pandemic. Other 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 unprecedented and 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 its 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, 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 and Comprehensive Loss

(Unaudited)

(In thousands, except share and per share data)



Three Months Ended
September 30,


Nine Months Ended
September 30,


2021


2020


2021


2020

Revenue

$

125,297



$

71,817



$

346,960



$

186,627


Cost of revenue (1)

24,518



14,411



46,493



39,571


Gross profit

100,779



57,406



300,467



147,056


Operating expenses:








Research and development (1)

54,582



30,143



149,867



83,670


In-process research and development



40,637





40,637


Selling, general and administrative (1)

62,076



51,549



187,683



146,352


Accrued contingent liabilities



332



(660)



956


Total operating expenses

116,658



122,661



336,890



271,615


Loss from operations

(15,879)



(65,255)



(36,423)



(124,559)


Other income (expense):








Interest income

49



28



157



1,471


Interest expense

(219)



(397)



(649)



(1,365)


Other (expense) income, net

(599)



361



(807)



121


Loss on extinguishment of debt







(1,521)


Total other expense

(769)



(8)



(1,299)



(1,294)


Loss before provision for income taxes

(16,648)



(65,263)



(37,722)



(125,853)


Provision for income taxes

523



585



2,052



1,305


Net loss

$

(17,171)



$

(65,848)



$

(39,774)



$

(127,158)


Other comprehensive income:








Foreign currency translation adjustment

136



(366)



244



(6)


Comprehensive loss

$

(17,035)



$

(66,214)



$

(39,530)



$

(127,164)


Net loss per share, basic and diluted

$

(0.15)



$

(0.65)



$

(0.36)



$

(1.28)


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

110,874,249



101,341,945



109,826,104



99,058,139






(1)

Includes stock-based compensation expense as follows:






Three Months Ended
September 30,


Nine Months Ended
September 30,

(in thousands)

2021


2020


2021


2020

Cost of revenue

$

878



$

398



$

2,183



$

1,108


Research and development

11,226



5,467



30,162



14,398


Selling, general and administrative

13,846



7,919



36,713



18,851


Total stock-based compensation expense

$

25,950



$

13,784



$

69,058



$

34,357


10x Genomics, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)



September 30,
2021


December 31,
2020

Assets




Current assets:




Cash and cash equivalents

$

600,440



$

663,603


Restricted cash

28



16,567


Accounts receivable, net

78,430



51,208


Inventory

51,141



29,959


Prepaid expenses and other current assets

14,065



13,029


Total current assets

744,104



774,366


Property and equipment, net

142,589



72,840


Restricted cash

8,597



8,474


Operating lease right-of-use assets

60,715



46,983


Goodwill

4,511




Other non-current assets

30,056



26,678


Total assets

$

990,572



$

929,341


Liabilities and stockholders' equity




Current liabilities:




Accounts payable

$

17,037



$

4,709


Accrued compensation and related benefits

27,182



15,383


Accrued expenses and other current liabilities

46,187



43,453


Deferred revenue

5,505



4,472


Operating lease liabilities

4,464



5,936


Accrued contingent liabilities



44,173


Total current liabilities

100,375



118,126


Accrued license fee, noncurrent

5,814



11,171


Operating lease liabilities, noncurrent

75,735



57,042


Other noncurrent liabilities

8,427



3,930


Total liabilities

190,351



190,269


Commitments and contingencies




Stockholders' equity:




Preferred stock




Common stock

2



2


Additional paid-in capital

1,644,897



1,544,218


Accumulated deficit

(844,872)



(805,098)


Accumulated other comprehensive gain (loss)

194



(50)


Total stockholders' equity

800,221



739,072


Total liabilities and stockholders' equity

$

990,572



$

929,341


Cision
Cision

View original content:https://www.prnewswire.com/news-releases/10x-genomics-reports-third-quarter-2021-financial-results-301415678.html

SOURCE 10x Genomics, Inc.