10x Genomics Announces Preliminary Fourth Quarter and Full Year 2023 Results
- Significant revenue growth of 18% for the fourth quarter and 20% for the full year.
- Robust growth in instruments revenue, with a 71% increase for the full year.
- Increased cumulative instruments sold to more than 5,900 as of the end of 2023.
- None.
The reported 18% quarterly and 20% annual revenue growth for 10x Genomics is a positive signal for investors, indicating that the company is expanding its market presence and sales in the single cell and spatial biology sectors. The 72% growth in instrument revenue is particularly noteworthy, as it suggests increasing adoption of the company's technology. This could imply a growing customer base and recurring revenue from consumables, which is crucial for long-term sustainability.
However, the preliminary nature of these results warrants caution. Final numbers could differ and it is essential to consider the company's operating expenses, cash flow and profitability for a comprehensive financial health assessment. The market will also be attentive to the upcoming February earnings call for finalized data and forward-looking statements.
10x Genomics' significant growth in services revenue (129% for the quarter and 86% for the year) may reflect a strategic emphasis on providing comprehensive solutions that enhance customer engagement and loyalty. The increase in cumulative instruments sold (over 5,900) indicates market penetration and could lead to a 'razor-and-blades' business model, where instrument sales drive future consumables revenue.
The data suggests that 10x Genomics is successfully capitalizing on the trend towards personalized medicine and advanced research methodologies. However, the competitive landscape in biotechnology is rapidly evolving and it will be important to monitor how the company maintains its growth trajectory against competitors.
The growth in Chromium and Spatial instruments sales mirrors the industry's enthusiasm for advanced genomics and spatial biology tools. Chromium's established market presence and the scaling of newer Spatial and Xenium platforms highlight the company's innovation and product development capabilities. The spatial biology segment, with a 72% revenue increase, is particularly promising, reflecting the high demand for technologies that enable researchers to map cells in their spatial context, which is vital for understanding complex biological systems.
While the reported figures are encouraging, the biotech sector is subject to rapid shifts in technology and regulatory landscapes. It will be important to observe how 10x Genomics navigates these challenges and whether it can sustain its growth with consistent product innovation and by meeting regulatory standards.
Preliminary, Unaudited Select Fourth Quarter 2023 Financial Results
- Revenue of approximately
$184.0 million 18% growth over the corresponding prior year period. - Instruments revenue of approximately
$38.4 million 72% growth over the corresponding prior year period. Instruments revenue consists of approximately$11.1 million $27.2 million - Consumables revenue of approximately
$140.3 million 7% growth over the corresponding prior year period. Consumables revenue consists of approximately$118.1 million $22.2 million - Services revenue of approximately
$5.3 million 129% growth over the corresponding prior year period.
Preliminary, Unaudited Select Full Year 2023 Financial Results
- Revenue of approximately
$618.7 million 20% growth over the prior year. - Instruments revenue of approximately
$123.5 million 71% growth over the prior year. Instruments revenue consists of approximately$47.9 million $75.6 million - Consumables revenue of approximately
$479.6 million 10% growth over the prior year. Consumables revenue consists of approximately$420.3 million $59.2 million - Services revenue of approximately
$15.7 million 86% growth over the prior year. - Increased cumulative instruments sold to more than 5,900 as of the end of 2023, which includes over 5,150 Chromium instruments, over 500 Visium instruments and over 250 Xenium instruments.
Preliminary Revenue Subject to Adjustment
10x Genomics, Inc. has not completed preparation of its financial statements for the fourth quarter or full year of 2023. The revenue estimates presented in this news release for the quarter and year ended December 31, 2023 are preliminary and unaudited and are thus inherently uncertain and subject to change as we complete preparation of our financial statements for the fourth quarter and year ended December 31, 2023. 10x Genomics, Inc. is in the process of completing its customary year-end close and review procedures as of and for the quarter and year ended December 31, 2023, and there can be no assurance that final results for these periods will not differ from these estimates. During the course of the preparation of 10x Genomics, Inc.'s consolidated financial statements and related notes as of and for the year ended December 31, 2023, we or our independent registered public accountants may identify items that could cause final reported results to be materially different from the preliminary financial estimates presented herein.
10x Genomics, Inc. plans to report final financial results for the quarter and year ended December 31, 2023 in its February 2024 earnings call.
About 10x Genomics
10x Genomics is a life science technology company building products to accelerate the mastery of biology and advance human health. Our integrated solutions include instruments, consumables and software for single cell and spatial biology, which help academic and translational researchers and biopharmaceutical companies understand biological systems at a resolution and scale that matches the complexity of biology. Our products are behind breakthroughs in oncology, immunology, neuroscience and more, fueling powerful discoveries that are transforming the world's understanding of health and disease. To learn more, visit 10xgenomics.com or connect with us on LinkedIn or X (Twitter).
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, which are subject to the "safe harbor" created by those sections. All statements included in this press release, other than statements of historical facts, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "might," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "see," "estimate," "predict," "potential," "would," "likely," "seek" or "continue" or the negatives of these terms or variations of them or similar terminology, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include statements regarding 10x Genomics, Inc.'s expected financial results. These statements are based on management's current expectations, forecasts, beliefs, assumptions and information currently available to management. Actual outcomes and results could differ materially from these statements due to a number of factors and such 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. 10x Genomics, Inc. disclaims any obligation to update any forward-looking statements provided to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law. The material 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" in the company's most recently-filed 10-K and elsewhere in the documents 10x Genomics, Inc. files with the Securities and Exchange Commission from time to time.
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
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SOURCE 10x Genomics, Inc.
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