10x Genomics, Inc. (Nasdaq: TXG) today reported financial results for the second quarter ended June 30, 2022.
Recent Highlights
- Revenue was $114.6 million for the second quarter, representing a 1% decrease over the corresponding period of 2021.
- Announced the breakthrough capability of single-cell analysis on FFPE samples with its recently launched Fixed RNA Profiling Kit.
- Began shipping Visium CytAssist, the company’s first spatial instrument.
- Announced the hiring of Jim Wilbur, Ph.D., as Chief Commercial Officer.
“Our results this quarter fell short of our expectations as we navigated some macro headwinds, particularly outside of the United States,” said Serge Saxonov, Co-founder and CEO of 10x Genomics. “Our topline growth this year will be slower than our previous expectations, but we firmly believe the underlying opportunity for our single cell and spatial technologies is as strong as ever. We are driving our innovation engine and building on our broad commercial reach so we can deliver on the full potential of this tremendous opportunity.”
Second Quarter 2022 Financial Results
Revenue was $114.6 million for the second quarter of 2022, a 1% decrease from $115.8 million for the corresponding prior year period. This decrease was primarily driven by decreased demand due to lockdowns in China, delayed customer reorders in Europe resulting from a logistics cold-chain issue, execution challenges and unfavorable foreign exchange headwinds.
Gross margin was 76% for the second quarter of 2022, as compared to 96% for the corresponding prior year period. The decrease in gross margin was primarily due to a one-time reversal of $14.7 million of accrued royalties in the second quarter of 2021, and higher manufacturing costs, higher royalty expenses, higher inventory charges and higher warranty costs.
Operating expenses were $150.0 million for the second quarter of 2022, a 24% increase from $121.3 million for the corresponding prior year period. This increase was driven by higher personnel expenses, including stock-based compensation, increased costs for facilities and information technology to support operational expansion, and increased marketing expenses, partially offset by a decrease in outside legal expenses.
Operating loss was $63.1 million for the second quarter of 2022, as compared to $10.3 million for the corresponding prior year period. Operating loss includes $36.3 million of stock-based compensation for the second quarter of 2022, as compared to $26.9 million for the corresponding prior year period.
Net loss was $64.5 million for the second quarter of 2022, as compared to a net loss of $11.1 million for the corresponding prior year period.
Cash and cash equivalents and marketable securities were $499.7 million as of June 30, 2022.
2022 Financial Guidance
10x Genomics is updating its outlook for the full year 2022. The company now expects revenue to be in the range of $500 million to $520 million, representing 2% to 6% growth over full year 2021.
Webcast and Conference Call Information
10x Genomics will host a conference call to discuss the second quarter 2022 financial results, business developments and outlook after market close on Monday, August 8, 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 at least 45 days after the event.
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