FY 2021 revenue growth of 64% and Q4 2021 revenue growth of 28% over the corresponding periods of 2020
10x Genomics, Inc. (Nasdaq: TXG) today reported financial results for the fourth quarter and full year ended December 31, 2021 and provided outlook for 2022.
Recent Highlights
- Revenue was $490.5 million for the full year and $143.5 million for the fourth quarter of 2021, representing 64% and 28% increases over the corresponding periods of 2020
- Increased our cumulative Chromium instruments sold to more than 3,500 as of the end of 2021, fueled by an enthusiastic response to our Chromium X Series instruments and continued demand for our Chromium Controller
- Advanced our leadership in spatial discovery research surpassing 200 publications and pre-prints enabled by our Visium products across key research areas including oncology, immunology, and neuroscience
- Unveiled our Xenium In Situ Analysis Platform, integrating instrumentation, consumables and software into a robust and flexible end-to-end solution, which we plan to ship by the end of 2022
“In 2021, we made significant progress driving adoption of single cell and spatial technologies, as we continued to pursue rapid innovation and scale the company for the long-term,” said Serge Saxonov, Co-founder and CEO of 10x Genomics. “We firmly believe in the tremendous opportunity ahead, and we are incredibly excited about the ambitious product launches we have planned in 2022.”
Fourth Quarter 2021 Financial Results
Revenue was $143.5 million for the three months ended December 31, 2021, a 28% increase from $112.2 million for the three months ended December 31, 2020. This increase was primarily the result of increased consumables revenue driven by growth in our cumulative instruments sold.
Gross margin was 81% for the fourth quarter of 2021, as compared to 83% for the corresponding prior year period. The decrease in gross margin was primarily due to the impact of shifting product mix, partially offset by decreased costs related to ramping our second manufacturing facility.
Operating expenses were $131.8 million for the fourth quarter of 2021, a 74% decrease from $502.9 million for the three months ended December 31, 2020. This decrease was driven by lower in-process research and development expense in the quarter due to the $406.9 million charge during the quarter ended December 31, 2020 related to the acquisition of ReadCoor 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 equipment, facilities and technology and increased marketing expenses.
Operating loss was $15.8 million for the fourth quarter of 2021, as compared to an operating loss of $409.6 million for the corresponding prior year period which included $406.9 million of in-process research and development expense related to the acquisition of ReadCoor. Operating loss also includes $26.9 million of stock-based compensation for the fourth quarter of 2021, as compared to $14.3 million for the fourth quarter of 2020.
Net loss was $18.4 million for the fourth quarter of 2021, as compared to a net loss of $415.6 million for the corresponding prior year period.
Full Year 2021 Financial Results
Revenue was $490.5 million for the year ended December 31, 2021, a 64% increase from $298.8 million for 2020.
Gross margin was 85% for full year 2021, as compared to 80% for 2020. The increase in gross margin was primarily due to lower accrued royalties related to the Bio-Rad agreement, including a one-time reversal of $14.7 million of previously accrued royalties, and decreased costs related to ramping our second manufacturing facility during the period, partially offset by the impact of shifting product mix.
Operating expenses were $468.7 million for full year 2021, as compared to $774.5 million for 2020, a decrease of 39%. Operating expenses in 2020 included $447.5 million of in-process research and development expense related to the acquisitions of CartaNA and ReadCoor.
Operating loss was $52.3 million for full year 2021, as compared to an operating loss of $534.1 million for 2020 which included $447.5 million of in-process research and development expense related to the acquisitions of CartaNA and ReadCoor. This includes $96.0 million of stock-based compensation for full year 2021, as compared to $48.6 million for full year 2020.
Net loss was $58.2 million for full year 2021, as compared to a net loss of $542.7 million for 2020. This includes $447.5 million of in-process research and development expense for the year ended December 31, 2020.
Cash and cash equivalents were $587.4 million as of December 31, 2021.
2022 Financial Guidance
10x Genomics expects full year 2022 revenue to be in the range of $600 million to $630 million, representing 22% to 28% growth over full year 2021 revenue.
Webcast and Conference Call Information
10x Genomics will host a conference call to discuss the fourth quarter and full year 2021 financial results, business developments and outlook after market close on Wednesday, February 16, 2022 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.
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