EX-99.1 2 txg-20230803xexx991.htm EX-99.1 Document

Exhibit 99.1
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10x Genomics Reports Second Quarter 2023 Financial Results
PLEASANTON, Calif. August 3, 2023 – 10x Genomics, Inc. (Nasdaq: TXG), a leader in single cell and spatial biology, today reported financial results for the second quarter ended June 30, 2023.
Recent Highlights
•Revenue was $146.8 million for the second quarter, representing a 28% increase over the corresponding period of 2022.
•Accelerated Xenium's momentum with strong shipments, multiple new curated and customizable gene panels and a major update of its onboard software to deliver even higher levels of performance.
•Launched the Visium CytAssist Gene and Protein Expression assay, combining tissue profiling with whole transcriptome spatial analysis and high-plex protein co-detection.
•Delivered double-digit growth of Chromium single cell consumables and increased Chromium X Series placements year over year, led by strong performance in the Americas and EMEA.
"Xenium established itself as the best performing in situ platform, as more and more researchers see firsthand the system's clear advantages in sensitivity, specificity, throughput and data analysis," said Serge Saxonov, Co-founder and CEO of 10x Genomics. "This was a strong quarter with momentum across our single cell and spatial portfolio despite the headwinds in China."
Second Quarter 2023 Financial Results
Revenue was $146.8 million for the second quarter of 2023, a 28% increase from $114.6 million for the corresponding prior year period.
Gross margin was 68% for the second quarter of 2023, as compared to 76% for the corresponding prior year period. The decrease in gross margin was primarily due to changes in product mix resulting from newly introduced products.
Operating expenses were $163.0 million for the second quarter of 2023, a 9% increase from $150.0 million for the corresponding prior year period. This increase was driven by higher personnel expenses, including stock-based compensation expense, and increased costs for facilities and information technology to support operational expansion.
Operating loss was $63.4 million for the second quarter of 2023, as compared to $63.1 million for the corresponding prior year period. Operating loss includes $45.7 million of stock-based compensation for the second quarter of 2023, as compared to $36.3 million for the corresponding prior year period.
Net loss was $62.4 million for the second quarter of 2023, as compared to a net loss of $64.5 million for the corresponding prior year period.
Cash and cash equivalents and marketable securities were $391.4 million as of June 30, 2023.
2023 Financial Guidance
10x Genomics is raising its full year 2023 revenue guidance and now expects revenue in the range of $600 million to $620 million, representing 16% to 20% growth over full year 2022. This compares to its previous revenue guidance of $590 million to $610 million.

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Webcast and Conference Call Information
10x Genomics will host a conference call to discuss the second quarter 2023 financial results, business developments and outlook after market close on Thursday, August 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 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 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,” “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 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, inflation and supply chain interruptions 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.

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Contacts
Investors: investors@10xgenomics.com
Media: media@10xgenomics.com
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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,
2023202220232022
Revenue (1)
$146,819 $114,609 $281,104 $229,105 
Cost of revenue (2)
47,207 27,704 83,102 53,182 
Gross profit99,612 86,905 198,002 175,923 
Operating expenses:
Research and development (2)
71,460 70,685 138,558 134,763 
Selling, general and administrative (2)
91,510 79,337 174,790 146,012 
Total operating expenses162,970 150,022 313,348 280,775 
Loss from operations(63,358)(63,117)(115,346)(104,852)
Other income (expense):
Interest income4,100 1,238 7,969 1,807 
Interest expense(5)(109)(24)(237)
Other expense, net(1,504)(1,843)(3,020)(2,243)
Total other income (expense)2,591 (714)4,925 (673)
Loss before provision for income taxes(60,767)(63,831)(110,421)(105,525)
Provision for income taxes1,647 627 2,740 1,346 
Net loss$(62,414)$(64,458)$(113,161)$(106,871)
Net loss per share, basic and diluted$(0.53)$(0.57)$(0.97)$(0.94)
Weighted-average shares of common stock used in computing net loss per share, basic and diluted116,707,672 113,574,757 116,166,776 113,272,158 
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(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
June 30,		Six Months Ended
June 30,
2023202220232022
Instruments
Chromium$12,859 $14,047 $24,485 $28,373 
Spatial18,096 689 25,646 792 
Total instruments revenue30,955 14,736 50,131 29,165 
Consumables
Chromium100,794 91,048 201,890 182,327 
Spatial11,694 6,886 22,976 13,557 
Total consumables revenue112,488 97,934 224,866 195,884 
Services3,376 1,939 6,107 4,056 
Total revenue$146,819 $114,609 $281,104 $229,105 
The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Americas
United States$88,394 $69,373 $164,675 $126,814 
Americas (excluding United States)3,149 1,515 5,664 3,761 
Total Americas91,543 70,888 170,339 130,575 
Europe, Middle East and Africa31,246 25,608 59,668 46,140 
Asia-Pacific
China¹12,755 9,984 26,786 31,766 
Asia-Pacific (excluding China)11,275 8,129 24,311 20,624 
Total Asia-Pacific24,030 18,113 51,097 52,390 
Total Revenue$146,819 $114,609 $281,104 $229,105 
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
June 30,		Six Months Ended
June 30,
(in thousands)
2023202220232022
Cost of revenue$1,835 $1,453 $3,296 $2,467 
Research and development19,560 15,579 37,340 26,870 
Selling, general and administrative24,301 19,281 47,161 33,023 
Total stock-based compensation expense$45,696 $36,313 $87,797 $62,360 
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10x Genomics, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
June 30,
2023		December 31,
2022
Assets
Current assets:
Cash and cash equivalents$325,879 $219,746 
Marketable securities65,506 210,238 
Restricted cash1,500 2,633 
Accounts receivable, net87,685 104,211 
Inventory83,687 81,629 
Prepaid expenses and other current assets18,683 16,578 
Total current assets582,940 635,035 
Property and equipment, net284,913 289,328 
Restricted cash3,474 4,974 
Operating lease right-of-use assets71,049 69,882 
Goodwill4,511 4,511 
Intangible assets, net22,290 22,858 
Other noncurrent assets20,461 2,392 
Total assets$989,638 $1,028,980 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$23,124 $21,599 
Accrued compensation and related benefits22,372 32,675 
Accrued expenses and other current liabilities34,088 59,779 
Deferred revenue9,217 7,867 
Operating lease liabilities9,286 9,037 
Total current liabilities98,087 130,957 
Operating lease liabilities, noncurrent90,331 86,139 
Other noncurrent liabilities7,919 6,141 
Total liabilities196,337 223,237 
Commitments and contingencies
Stockholders’ equity:
Preferred stock— — 
Common stock2 2 
Additional paid-in capital1,936,750 1,839,397 
Accumulated deficit(1,142,482)(1,029,321)
Accumulated other comprehensive loss(969)(4,335)
Total stockholders’ equity793,301 805,743 
Total liabilities and stockholders’ equity$989,638 $1,028,980 
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