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10x Genomics Inc (TXG) Q2 2024 Earnings Call Highlights: Navigating Growth Amidst Macroeconomic ...

In This Article:

  • Total Revenue: $153.1 million, up 4% year-over-year.

  • Consumables Revenue: $123.4 million, up 10%.

  • Spatial Consumables Revenue: $29.3 million, up 150%.

  • Chromium Consumables Revenue: $94.1 million, down 7% year-over-year.

  • Instrument Revenue: $23.9 million, down 23%.

  • Chromium Instrument Revenue: $8.8 million, down 32% year-over-year.

  • Spatial Instrument Revenue: $15.1 million, down 17%.

  • Services Revenue: $5.9 million, up 74%.

  • Gross Margin: 68%, flat compared to the previous year.

  • Operating Expenses: $146 million, down from $163 million in the prior year.

  • R&D Expenses: $62.9 million, down from $71.5 million.

  • SG&A Expenses: $83 million, down from $91.5 million.

  • Operating Loss: $41.7 million, compared to a loss of $63.4 million last year.

  • Net Loss: $37.9 million, compared to a net loss of $62.4 million last year.

  • Cash and Cash Equivalents: $380.1 million, generating $8.3 million of cash in the quarter.

  • Full Year Revenue Guidance: $640 million to $660 million, representing 5% growth at the midpoint.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Total revenue for the second quarter grew 4% year-over-year and 9% quarter-over-quarter to $153 million, with the company being free cash flow positive.

  • Strong demand for spatial consumables, particularly Visium HD and the newly launched Xenium Prime 5K, contributed to revenue growth.

  • The GEM-X transition has progressed faster than anticipated, with customers appreciating its superior sensitivity, throughput, and cost advantages.

  • 10x Genomics Inc (NASDAQ:TXG) has built a significant technology leadership position, with solutions several years ahead of competitors.

  • The company has a strong commercial and sales channel, with a focus on tailoring solutions to specific customer needs and reducing costs for researchers.

Negative Points

  • 10x Genomics Inc (NASDAQ:TXG) is experiencing headwinds from a challenging macroeconomic environment, leading to budget pressures and elongated purchase cycles for customers.

  • Instrument revenue, particularly for Xenium, has been impacted by cuts to CapEx budgets and cautious customer spending patterns.

  • The company has lowered its revenue guidance for the year, now expecting it to be in the range of $640 million to $660 million.

  • The transition to GEM-X, while progressing well, is expected to continue driving some revenue pressure due to its lower price.

  • The company is undergoing a commercial restructuring, which may cause near-term disruption as new roles and responsibilities are implemented.