8-K: 10x Genomics Announces Preliminary Q4 and Full Year 2024 Results, Showing Sequential Growth

10x Genomics reported preliminary unaudited results for Q4 and full year 2024, highlighting sequential revenue growth but a year-over-year decrease in some areas.

Summary

• 10x Genomics announced preliminary, unaudited financial results for the fourth quarter and full year 2024.
• The company reported approximately $165 million in revenue for Q4 2024, which is a 9% increase sequentially but a 10% decrease compared to the same period last year.
• Full year 2024 revenue was approximately $610.8 million, a 1% decrease from the previous year.
• Instrument revenue for Q4 was about $24.4 million, a 28% sequential increase but a 37% decrease year-over-year.
• Consumables revenue for Q4 was approximately $133.5 million, a 6% sequential increase but a 5% decrease year-over-year.
• Services revenue for Q4 was about $7.1 million, a 12% sequential increase and a 35% increase year-over-year.
• For the full year, instrument revenue was approximately $92.7 million, a 25% decrease from the prior year.
• Full year consumables revenue was approximately $493.4 million, a 3% increase from the prior year.
• Full year services revenue was approximately $24.6 million, a 57% increase from the prior year.
• The company has sold over 7,000 instruments cumulatively, including over 5,800 Chromium instruments, over 800 Visium instruments, and over 400 Xenium instruments.
• 10x Genomics had approximately $393 million in cash, cash equivalents, and marketable securities as of December 31, 2024.

Sentiment

Score: 5

Explanation: The sentiment is neutral to slightly negative due to mixed results. While there is sequential growth and strong services revenue, the year-over-year decline in overall revenue and instrument sales is concerning. The company's forward-looking statements are cautious, and the preliminary nature of the results adds uncertainty.

Positives

• The company experienced solid sequential revenue growth in Q4 2024.
• Services revenue showed significant year-over-year growth.
• Consumables revenue increased by 3% for the full year.
• The company has a strong cash position with $393 million in cash, cash equivalents, and marketable securities.
• Cumulative instrument sales have surpassed 7,000 units.

Negatives

• Total revenue for the full year 2024 decreased by 1% compared to the previous year.
• Instrument revenue saw a significant decrease of 25% for the full year and 37% in Q4 compared to the prior year.
• Consumables revenue decreased by 5% in Q4 compared to the same period last year.
• Q4 revenue decreased by 10% compared to the same period last year.

Risks

• The preliminary results are unaudited and subject to change.
• Final financial results may differ materially from the preliminary estimates.
• The company faces risks related to its financial and operating results as detailed in their SEC filings.
• There is a risk that the company may not achieve its future performance expectations.

Future Outlook

The company believes the work done in 2024 positions them well for the future and to deliver on the promise of single cell and spatial biology, but actual results could differ materially from these expectations.

Management Comments

• Our team delivered solid sequential revenue growth over last quarter, said Serge Saxonov, Co-founder and CEO of 10x Genomics.
• We are confident the work we've done throughout 2024 sets us up well for the future and better positions us to deliver on the full promise of single cell and spatial biology.

Industry Context

The announcement comes as the single-cell and spatial biology fields continue to grow, with increasing demand for advanced research tools. 10x Genomics is a key player in this space, and these results provide insight into their performance relative to the broader market trends.

Comparison to Industry Standards

• While specific competitor data is not provided in this document, the sequential growth in revenue is a positive sign, especially when compared to companies that may have experienced flat or declining growth in the same period.
• The decrease in instrument revenue year-over-year is a concern, and it would be important to compare this to the performance of other instrument providers in the life sciences sector, such as Illumina or Bio-Rad.
• The strong growth in services revenue is a positive indicator, suggesting that 10x Genomics is successfully expanding its offerings beyond just instrument and consumables sales, similar to trends seen in other life science companies that are diversifying their revenue streams.
• The cumulative instrument sales of over 7,000 units is a significant milestone, and it would be useful to compare this to the installed base of other companies in the single-cell and spatial biology space, such as NanoString or Fluidigm, to assess market penetration.

Stakeholder Impact

• Shareholders may react to the mixed financial results, particularly the year-over-year revenue decline.
• Employees may be impacted by the company's performance and future outlook.
• Customers will be interested in the company's continued innovation and product development.
• Suppliers may be affected by changes in the company's purchasing patterns.
• Creditors will monitor the company's financial health and ability to meet its obligations.

Next Steps

• 10x Genomics will participate in the 43rd Annual J.P. Morgan Healthcare Conference.
• The company will complete its customary year-end close and review procedures.
• The company will finalize its consolidated financial statements for the fourth quarter and fiscal year of 2024.

Key Dates

Keywords

10x Genomics, single cell biology, spatial biology, genomics, financial results, revenue, instruments, consumables, services, biotechnology