10x Genomics(US:TXG)2024-10-29 20:10Financial Performance - Total revenue for the three months ended September 30, 2024, was $151.654 million, compared to $153.644 million for the same period in 2023, reflecting a slight decrease[18]. - Gross profit for the nine months ended September 30, 2024, was $303.527 million, up from $293.531 million in the same period of 2023, indicating a year-over-year increase of approximately 3.4%[18]. - The net loss for the three months ended September 30, 2024, was $35.753 million, compared to a net loss of $92.986 million for the same period in 2023, representing a reduction in losses of approximately 61%[18]. - Total revenue decreased by $2.0 million, or 1%, to $151.7 million for the three months ended September 30, 2024, compared to the same period in 2023[103]. - The company incurred net losses of $35.8 million for the three months ended September 30, 2024, compared to $93.0 million for the same period in 2023[101]. Cash and Liquidity - Cash and cash equivalents increased to $398.159 million as of September 30, 2024, from $359.284 million as of December 31, 2023, showing a growth of about 10.8%[15]. - As of September 30, 2024, the company had $398.2 million in cash and cash equivalents, with an accumulated deficit of $1.4 billion since inception[115]. - The net cash provided by operating activities was $13.4 million for the nine months ended September 30, 2024, compared to a net cash used of $41.0 million for the same period in 2023[123][124]. - The company expects to continue incurring operating losses for the foreseeable future but believes existing cash and cash equivalents will meet anticipated cash needs for at least the next 12 months[119]. Expenses and Liabilities - Total current liabilities decreased to $121.235 million as of September 30, 2024, from $127.162 million as of December 31, 2023, indicating a reduction of approximately 4.7%[15]. - The company reported total operating expenses of $147.878 million for the three months ended September 30, 2024, compared to $190.324 million for the same period in 2023, reflecting a decrease of approximately 22.3%[18]. - Research and development expenses for the three months ended September 30, 2024, were $66.174 million, slightly down from $66.507 million in the same period of 2023[18]. - Selling, general and administrative expenses decreased by $0.7 million, or 1%, to $81.7 million for the three months ended September 30, 2024[109]. Assets and Equity - Total assets decreased to $937.794 million as of September 30, 2024, from $965.143 million as of December 31, 2023, representing a decline of approximately 2.8%[15]. - The company’s accumulated deficit increased to $(1,418.019) million as of September 30, 2024, from $(1,284.420) million as of December 31, 2023, indicating a rise in the deficit of approximately 10.4%[15]. - As of September 30, 2023, the total stockholders' equity was $745,216,000, with a net loss of $92,986,000 for the quarter[25]. Revenue Breakdown - Total instruments revenue for the nine months ended September 30, 2024, was $68.4 million, down 19.7% from $85.1 million in the same period of 2023[53]. - Total consumables revenue increased to $359.9 million for the nine months ended September 30, 2024, up 6.1% from $339.2 million in the same period of 2023[53]. - Instruments revenue decreased by $15.9 million, or 45%, to $19.1 million for the three months ended September 30, 2024, primarily due to lower sales of Chromium and Spatial instruments[103]. - Consumables revenue increased by $11.8 million, or 10%, to $126.2 million for the three months ended September 30, 2024, driven by higher Spatial consumables sales[103]. Legal Matters - The Company was awarded over $31 million in damages from NanoString, including approximately $25 million in lost profits and $6 million in royalties[60]. - The jury found that NanoString willfully infringed the asserted patents, and the Company is seeking a permanent injunction and ongoing royalties[60]. - The Company filed a second suit against NanoString alleging infringement of U.S. Patent Nos. 10,227,639 and 11,021,737, with discovery currently in progress[61]. - The Company is involved in multiple legal actions against NanoString, including a counterclaim regarding the Company's Visium products[65]. Stock and Compensation - The weighted-average shares of common stock used in computing net loss per share, basic and diluted, were 120,733,030 for the three months ended September 30, 2024, compared to 117,728,293 for the same period in 2023[18]. - The Company reported stock-based compensation expense of $33.91 million for the three months ended September 30, 2024, compared to $40.24 million for the same period in 2023, reflecting a decrease of approximately 16.5%[86]. - The total number of shares of Class A common stock issued and outstanding as of September 30, 2024, was 106,983,035, with 14,056,833 shares of Class B common stock also outstanding[84]. Future Outlook - The company anticipates capital expenditures of approximately $15 million to $20 million over the next 12 months, focusing on manufacturing and R&D[116]. - The company regularly reviews acquisition and investment opportunities to support long-term growth objectives, which may significantly increase capital needs[118].