10x Genomics Reports Third Quarter 2020 Financial Results – GlobeNewswire


PLEASANTON, Calif., Nov. 10, 2020 (GLOBE NEWSWIRE) — 10x Genomics, Inc. (Nasdaq: TXG) today reported financial results for the third quarter ended September 30, 2020.

Recent Highlights

  • Revenue was $71.8 million for the third quarter, representing a 17% increase over the corresponding period in 2019 and a 67% increase compared to the second quarter of 2020
  • Completed the acquisitions of ReadCoor and CartaNA, advancing 10x Genomics into In Situ analysis with comprehensive and foundational intellectual property, key technology advances and deep talent and expertise in the emerging field
  • Completed a follow-on public offering of 4,600,000 shares of common stock resulting in approximately $482.2 million in net proceeds

“Our strong performance this quarter demonstrates our ability to execute across all facets of the business,” said Serge Saxonov, Co-Founder and CEO of 10x Genomics. “We remain focused on the frontiers of scientific discovery and we will continue to invest in the vast opportunities that lie before us, both now and well into the future.”

Third Quarter 2020 Financial Results

Revenue was $71.8 million for the three months ended September 30, 2020, a 17% increase from $61.2 million for the three months ended September 30, 2019. This increase was primarily the result of increased consumables revenue driven by growth in the instrument installed base, partially offset by decreased demand due to ongoing lab closures resulting from COVID-19.

Gross margin was 80% for the third quarter of 2020, as compared to 75% for the corresponding prior year period. The increase in gross margin was driven primarily by lower accrued royalties related to ongoing litigation.

Operating expenses were $122.7 million for the third quarter of 2020, a 124% increase from $54.8 million for the three months ended September 30, 2019, and include $40.6 million of in-process research and development expense related to intellectual property purchased in connection with the acquisition of CartaNA. Other drivers of the increase in operating expenses this quarter include increased personnel expenses, including stock-based compensation, and increased outside legal expenses.

Operating loss was $65.3 million for the third quarter of 2020, as compared to $9.1 million for the corresponding prior year period. This includes $13.8 million of stock-based compensation for the third quarter of 2020, as compared to $3.9 million for the third quarter of 2019.

Net loss was $65.8 million for the third quarter of 2020, as compared to a net loss of $9.6 million for the corresponding prior year period.

Cash and cash equivalents were $768.8 million as of September 30, 2020, which include net proceeds of $482.2 million arising from our successfully completed follow-on public offering.

Full Year 2020 Guidance
As previously announced, 10x Genomics has withdrawn its annual revenue guidance for 2020 due to the evolving environment and continued uncertainties from the impact of COVID-19.

Webcast and Conference Call Information

10x Genomics will host a conference call to discuss the third quarter 2020 financial results, business developments and outlook after market close on Tuesday, November 10, 2020 at 2:00 PM Pacific Time / 5:00 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.

READ  Genetic study reveals red pandas to be actually two separate species - WION

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 97 of the top 100 global research institutions and 19 of the top 20 global pharmaceutical companies, and have been cited in over 2,000 research papers on discoveries ranging from oncology to immunology and neuroscience. The company’s patent portfolio comprises more than 950 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. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “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. These forward-looking statements include statements regarding 10x Genomics, Inc.’s expectations regarding the potential impact of the COVID-19 outbreak on the company’s business operations, financial performance and results of operations 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. These and additional 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. 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.

READ  CSIR launches eco-friendly crackers - BusinessLine

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         Nine Months Ended     
     September 30,         September 30,     
    2020     2019     2020     2019  
Revenue $         71,817   $         61,207   $         186,627   $         170,604  
Cost of revenue (1)   14,411     15,480     39,571     44,451  
Gross profit   57,406     45,727     147,056     126,153  
Operating expenses:        
Research and development (1)   30,143     22,209     83,670     55,208  
In-process research and development   40,637         40,637      
Selling, general and administrative (1)   51,549     32,614     146,352     92,078  
Accrued contingent liabilities   332         956     1,360  
Total operating expenses   122,661     54,823     271,615     148,646  
Loss from operations   (65,255 )   (9,096 )   (124,559 )   (22,493 )
Other income (expense):        
Interest income   28     481     1,471     986  
Interest expense   (397 )   (708 )   (1,365 )   (2,087 )
Other expense (income), net   361     (272 )   121     (413 )
Loss on extinguishment of debt           (1,521 )    
Total other expense   (8 )   (499 )   (1,294 )   (1,514 )
Loss before provision for income taxes   (65,263 )   (9,595 )   (125,853 )   (24,007 )
Provision for income taxes   585     8     1,305     110  
Net loss $         (65,848 ) $         (9,603 ) $         (127,158 ) $         (24,117 )
Other comprehensive income:        
Foreign currency translation adjustment   (366 )   (126 )   (6 )   (123 )
Comprehensive loss $         (66,214 ) $         (9,729 ) $         (127,164 ) $         (24,240 )
Net loss per share, basic and diluted  $ (0.65 $  (0.33  $  (1.28  $  (1.21
Weighted-average shares of common stock used in computing net loss per share, basic and diluted   101,341,945     29,184,218     99,058,139     19,904,184  

(1) Includes stock-based compensation expense as follows:

     Three Months Ended      Nine Months Ended  
     September 30,      September 30,  
(in thousands)   2020     2019     2020     2019  
Cost of revenue $         398   $         81   $         1,108   $         171  
Research and development   5,467     1,650     14,398     3,448  
Selling, general and administrative   7,919     2,143     18,851     4,639  
 Total stock-based compensation expense  $ 13,784    $ 3,874    $ 34,357    $ 8,258  
READ  Experts: Warming makes Delta, other storms power up faster - WWTI - InformNNY.com


10x Genomics, Inc.

Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share and per share data)

    September 30,      December 31,   
    2020      2019   
Assets            
Current assets:             
Cash and cash equivalents $         768,773   $         424,166  
Restricted cash   59,451      
Accounts receivable, net   36,026     33,371  
Inventory   25,118     15,270  
Prepaid expenses and other current assets   11,083     8,033  
Total current assets   900,451     480,840  
Property and equipment, net   65,111     48,821  
Restricted cash   5,474     52,327  
Operating lease right-of-use assets   45,379      
Other assets   26,129     23,935  
Total assets $         1,042,544   $         605,923  
Liabilities and stockholders’ equity    
Current liabilities:
Accrued contingent liabilities $         77,558   $         —  
Accounts payable   9,490     13,028  
Accrued compensation and related benefits   11,189     12,394  
Accrued expenses and other current liabilities   38,583     24,448  
Term loans, current portion       9,882  
Deferred revenue, current   3,775     3,297  
Operating lease liabilities   4,976      
Total current liabilities   145,571     63,049  
Term loans, noncurrent portion       19,837  
Accrued contingent liabilities       68,658  
Accrued license fee, noncurrent   11,223     16,251  
Deferred rent, noncurrent       16,120  
Operating lease liabilities, noncurrent   56,618      
Other noncurrent liabilities   4,052     1,925  
Total liabilities   217,464     185,840  
Commitments and contingencies    
 Stockholders’ equity:    
Preferred stock, $0.00001 par value; 100,000,000 shares authorized, no shares issued and outstanding as of September 30, 2020 and December 31, 2019        
Common stock, $0.00001 par value; 1,100,000,000 shares authorized and 105,599,976 shares issued and outstanding as of September 30, 2020; 1,100,000,000, shares authorized and 96,241,596 shares issued and outstanding as of December 31, 2019   2     2  
Additional paid-in capital   1,214,655     682,494  
Accumulated deficit   (389,525 )   (262,367 )
Accumulated other comprehensive loss   (52 )   (46 )
Total stockholders’ equity   825,080     420,083  
Total liabilities and stockholders’ equity $ 1,042,544   $ 605,923  



READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here