10x Genomics(US:TXG)2022-05-04 16:00Revenue Performance - Revenue for the three months ended March 31, 2022, increased by $8.7 million, or 8%, to $114.5 million compared to the same period in 2021[92]. - Instruments revenue rose by $3.3 million, or 30%, to $14.4 million, primarily due to sales of the newly introduced Chromium X Series instruments[93]. - Consumables revenue increased by $4.9 million, or 5%, to $98.0 million, driven by growth in cumulative instruments sold, despite some losses due to logistics issues[93]. Profitability and Loss - Gross profit for the three months ended March 31, 2022, was $89.0 million, a slight increase of $0.3 million compared to the same period in 2021[98]. - Gross margin decreased by 6 percentage points to 78% for the three months ended March 31, 2022, primarily due to changes in product mix and increased costs[98]. - Net loss for the three months ended March 31, 2022, was $42.4 million, compared to a net loss of $11.6 million for the same period in 2021[83]. Operating Expenses - Operating expenses for the three months ended March 31, 2022, totaled $130.8 million, an increase of $31.8 million, or 32%, compared to the same period in 2021[92]. - Cost of revenue increased by $8.4 million, or 49%, to $25.5 million, driven by higher manufacturing costs and increased royalties[97]. - Research and development expenses increased by $22.2 million, or 53%, to $64.1 million for the three months ended March 31, 2022 compared to the same period in 2021[100]. - Selling, general and administrative expenses rose by $9.8 million, or 17%, to $66.7 million for the three months ended March 31, 2022 compared to the same period in 2021[101]. - Total operating expenses increased by $31.8 million, or 32%, to $130.8 million for the three months ended March 31, 2022 compared to the same period in 2021[100]. Cash Flow and Investments - The net cash used in operating activities was $20.8 million for the three months ended March 31, 2022, primarily due to a net loss of $42.4 million[113]. - The net cash used in investing activities was $257.6 million for the three months ended March 31, 2022, mainly due to purchases of marketable securities of $242.3 million[115]. - As of March 31, 2022, the company had $312.5 million in cash and cash equivalents and $226.8 million in marketable securities[105]. - The company anticipates capital expenditures of approximately $190 million to $200 million over the next 12 months, primarily for construction costs[106]. Financial Position - The accumulated deficit stood at $905.7 million as of March 31, 2022, reflecting ongoing operating losses since inception[105]. Future Outlook - The company expects to continue incurring significant expenses and operating losses in the near term due to ongoing activities and investments[83]. - Supply chain challenges related to COVID-19 may continue to impact the company's ability to deliver products and meet future demand[96]. - The company plans to continue investing in research and development and expanding its commercial organization globally to address market interest[110]. Internal Controls - The company evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective at a reasonable assurance level as of March 31, 2022[124]. - There were no changes in internal control over financial reporting during the quarter ended March 31, 2022, that materially affected the internal control[125]. Interest Income - Interest income surged by $0.5 million, or 1,038%, to $0.569 million for the three months ended March 31, 2022 compared to the same period in 2021[102].