• Total Revenue: $151.7 million, down 1% year-over-year.

• Consumables Revenue: $126.2 million, up 10%.

• Chromium Consumables Revenue: $96.5 million, down 4%.

• Spatial Consumables Revenue: $29.7 million, up 111%.

• Instrument Revenue: $19.1 million, down 45%.

• Chromium Instrument Revenue: $7.6 million, down 38%.

• Spatial Instrument Revenue: $11.4 million, down 50%.

• Services Revenue: $6.4 million, up 48%.

• Gross Margin: Increased to 70% from 62% the previous year.

• Operating Loss: $41.5 million, compared to a loss of $94.8 million in the previous year.

• Net Loss: $35.8 million, compared to a net loss of $93 million in the previous year.

• Cash and Cash Equivalents: $398.2 million at the end of the quarter.

• Full Year Revenue Guidance: Expected to be in the range of $595 million to $605 million, representing a 3% decrease from the previous year.

• Warning! GuruFocus has detected 5 Warning Signs with TXG.

Release Date: October 29, 2024

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

Positive Points

• 10x Genomics Inc (NASDAQ:TXG) launched new products and capabilities aimed at lowering the cost of single-cell analysis, such as GEM-X Flex and GEM-X Universal Multiplex, which offer significant cost reductions for researchers.

• The company reported a 10% increase in consumables revenue, driven by strong demand for new spatial consumables products like Visium HD and Xenium 5K.

• 10x Genomics Inc (NASDAQ:TXG) has implemented a restructured commercial organization to better serve diverse customer needs, including creating specialized teams for capital equipment and biopharma sectors.

• The company has maintained comparable gross margins for its new products, indicating efficient cost management despite price reductions.

• 10x Genomics Inc (NASDAQ:TXG) is focused on advancing its capabilities with new products, workflows, and software to enhance ease of use and drive more adoption, positioning itself as a leader in both technology and cost.

Negative Points

• Revenue for the third quarter declined 1% year-over-year, primarily due to disruptions from sales restructuring and cautious customer spending.

• The company expects full-year revenue to decline by 3% compared to the prior year, with flat fourth-quarter revenue anticipated.

• 10x Genomics Inc (NASDAQ:TXG) is facing ongoing headwinds from its commercial restructuring, with a significant number of open sales roles impacting performance.

• The macroeconomic environment remains challenging, with cautious customer spending affecting both capital expenditures and larger consumables projects.

• The company experienced a 45% decrease in total instrument revenue, particularly impacted by weaker sales of Xenium instruments.