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10x Genomics Reports Fourth Quarter and Full Year 2024 Financial Results and Provides Outlook for 2025

1. 10x Genomics saw a 10% revenue drop in Q4 2024. 2. The company launched the Billion Cells Project with CZI and Ultima Genomics. 3. Operating loss reduced from $55.2M to $49.8M year over year. 4. Cash and marketables securities total $393.4M as of year-end 2024. 5. 2025 revenue guidance predicts $610M to $630M, indicating slight growth.

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Why Neutral?

Despite slight revenue declines, costs are being managed well. Past declines have led to recoveries.

How important is it?

The article's focus on financials and outlook impacts TXG's potential direction. Ongoing collaborations may attract investment.

Why Short Term?

Immediate revenue trends could influence investor sentiment. Historically, short-term performance drives fluctuations.

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, /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, 2024 and provided outlook for 2025. Recent Updates Revenue was $165.0 million for the fourth quarter and $610.8 million for the full year of 2024, representing 10% and 1% decreases over the corresponding periods of 2023. In collaboration with the Chan Zuckerberg Initiative (CZI) and Ultima Genomics, launched the Billion Cells Project, an effort to generate an unprecedented one billion cell dataset to fuel rapid progress in AI model development in biology. Cash and cash equivalents and marketable securities were $393.4 million as of December 31, 2024, an increase of $4.7 million over prior year. "In 2024, we launched major new products across all three of our platforms and we made changes to our commercial organization and go-to-market strategy," said Serge Saxonov, Co-founder and CEO of 10x Genomics. "As we kick off 2025, our goal is to take advantage of these changes and deliver consistent execution. Despite the current uncertainty within U.S. academic research, we continue to have strong conviction in the large opportunity ahead." Fourth Quarter 2024 Financial Results Revenue was $165.0 million for the three months ended December 31, 2024, a 10% decrease from $184.0 million for the corresponding period.  Gross margin was 67% for the fourth quarter of 2024, as compared to 63% for the corresponding prior year period. The increase in gross margin was primarily due to change in product mix. Operating expenses were $160.8 million for the fourth quarter of 2024, a 6% decrease from $171.0 million for the corresponding prior year period. The decrease was primarily driven by a $19.6 million in-process research and development expense related to an agreement to acquire certain intangible and other assets in the prior year period, partially offset by an increase in outside litigation expenses. Operating loss was $49.8 million for the fourth quarter of 2024, as compared to an operating loss of $55.2 million for the corresponding prior year period. Operating loss includes $32.5 million of stock-based compensation for the fourth quarter of 2024, as compared to $38.9 million for the fourth quarter of 2023. Net loss was $49.0 million for the fourth quarter of 2024, as compared to a net loss of $49.0 million for the corresponding prior year period. Full Year 2024 Financial Results Revenue was $610.8 million for the year ended December 31, 2024, a 1% decrease from $618.7 million for 2023. Gross margin was 68% for full year 2024, as compared to 66% for 2023. The increase in gross margin was primarily due to change in product mix. Operating expenses were $609.0 million for full year 2024, as compared to $674.6 million for 2023, an decrease of 10%. The decrease was primarily driven by a $61.0 million in-process research and development expense related to an agreement to acquire certain intangible and other assets in the prior year period and lower personnel expenses, including stock-based compensation expense, partially offset by higher outside legal expenses. Operating loss was $194.6 million for full year 2024, as compared to an operating loss of $265.3 million for 2023. This includes $140.7 million of stock-based compensation for full year 2024, as compared to $167.0 million for full year 2023. Net loss was $182.6 million for full year 2024, as compared to a net loss of $255.1 million for 2023. Cash and cash equivalents and marketable securities were $393.4 million as of December 31, 2024. 2025 Financial Guidance  10x Genomics expects full year 2025 revenue to be in the range of $610 million to $630 million, representing 0% to 3% growth over full year 2024. At the midpoint, this guidance implies double-digit growth for both Chromium reactions and overall spatial revenue. Webcast and Conference Call Information 10x Genomics will host a conference call to discuss the fourth quarter and full year 2024 financial results, business developments and outlook after market close on Thursday, February 12, 2025 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, X (Twitter), Facebook, Bluesky or YouTube. 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 collaboration with CZI and Ultima Genomics, positioning, product launches, commercial organization restructuring, go-to-market strategy, goals, uncertainty within academic research, commercial opportunity 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. ContactsInvestors: [email protected] Media: [email protected]  10x Genomics, Inc. Consolidated Statement of Operations (Unaudited) (In thousands, except share and per share data) Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 Revenue (1) $         165,021 $         183,979 $         610,785 $         618,727 Cost of revenue (2) 54,066 68,197 196,303 209,414 Gross profit 110,955 115,782 414,482 409,313 Operating expenses: Research and development (2) 66,968 65,267 264,698 270,332 In-process research and development — 19,578 — 60,980 Selling, general and administrative (2) 93,826 86,125 344,343 343,330 Total operating expenses 160,794 170,970 609,041 674,642 Loss from operations (49,839) (55,188) (194,559) (265,329) Other income (expense): Interest income 4,026 4,637 18,448 16,906 Interest expense — (8) (4) (33) Other income (expense), net (2,567) 3,961 (1,585) (307) Total other income 1,459 8,590 16,859 16,566 Loss before provision for income taxes (48,380) (46,598) (177,700) (248,763) Provision for income taxes 648 2,354 4,927 6,336 Net loss $          (49,028) $          (48,952) $       (182,627) $       (255,099) Net loss per share, basic and diluted $              (0.40) $              (0.41) $              (1.52) $              (2.18) Weighted-average shares used to compute net loss per share, basic and diluted 121,596,351 118,565,724 120,451,550 117,165,036 (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 EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 Instruments Chromium $           10,929 $           11,150 $           35,212 $           47,866 Spatial 13,425 27,248 57,503 75,605 Total instruments revenue 24,354 38,398 92,715 123,471 Consumables Chromium 97,737 118,144 372,308 420,316 Spatial 35,795 22,170 121,124 59,237 Total consumables revenue 133,532 140,314 493,432 479,553 Services 7,135 5,267 24,638 15,703 Total revenue $         165,021 $         183,979 $         610,785 $         618,727 The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands): Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 Americas United States $           84,285 $           99,322 $         334,318 $         360,091 Americas (excluding United States) 2,936 4,520 13,447 13,101 Total Americas 87,221 103,842 347,765 373,192 Europe, Middle East and Africa 49,828 50,589 159,762 142,276 Asia-Pacific China 14,609 11,748 57,300 50,965 Asia-Pacific (excluding China) 13,363 17,800 45,958 52,294 Total Asia-Pacific 27,972 29,548 103,258 103,259 Total Revenue $         165,021 $         183,979 $         610,785 $         618,727 (2) Includes stock-based compensation expense as follows: Three Months EndedDecember 31, Year EndedDecember 31, (in thousands) 2024 2023 2024 2023 Cost of revenue $           2,221 $           1,928 $           8,348 $           7,068 Research and development 15,587 17,608 66,315 72,804 Selling, general and administrative 14,731 19,382 66,086 87,078 Total stock-based compensation expense $         32,539 $         38,918 $       140,749 $       166,950 10x Genomics, Inc. Consolidated Balance Sheets (In thousands, except share and per share data) December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $         344,067 $         359,284 Marketable securities 49,335 29,411 Accounts receivable, net 87,862 114,832 Inventory 83,107 73,706 Prepaid expenses and other current assets 20,016 18,789 Total current assets 584,387 596,022 Property and equipment, net 252,648 279,571 Operating lease right-of-use assets 57,290 65,361 Goodwill 4,511 4,511 Intangible assets, net 15,671 16,616 Other noncurrent assets 4,129 3,062 Total assets $         918,636 $         965,143 Liabilities and stockholders' equity Current liabilities: Accounts payable $           12,909 $           15,738 Accrued compensation and related benefits 33,615 30,105 Accrued expenses and other current liabilities 41,165 56,648 Deferred revenue 20,658 13,150 Operating lease liabilities 9,286 11,521 Total current liabilities 117,633 127,162 Operating lease liabilities, noncurrent 73,327 83,849 Deferred revenue, noncurrent 12,513 8,814 Other noncurrent liabilities 5,029 4,275 Total liabilities 208,502 224,100 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, 2024 and December 31, 2023 — — Common stock, $0.00001 par value; 1,100,000,000 shares authorized and 122,291,837 and 119,095,362 shares issued and outstanding as of December 31, 2024 and 2023 2 2 Additional paid-in capital 2,177,672 2,025,890 Accumulated deficit (1,467,047) (1,284,420) Accumulated other comprehensive loss (493) (429) Total stockholders' equity 710,134 741,043 Total liabilities and stockholders' equity $         918,636 $         965,143 Cumulative instruments sold As of December 31, 2024 2023 2022 Chromium 5,808 5,180 4,411 Visium CytAssist 810 531 211 Xenium 421 255 8 Cumulative instruments sold 7,039 5,966 4,630 Total consumables reactions sold Year ended December 31, 2024 2023 2022 Chromium 310,900 312,500 290,900 Visium 35,400 29,300 28,300 Xenium 10,800 5,200 100 Total consumable reactions 357,100 347,000 319,300 SOURCE 10x Genomics, Inc. 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