10x Genomics(US:TXG)2023-11-03 03:27Financial Data and Key Metrics Changes - Revenue increased 17% year-over-year to $154 million in Q3 2023, driven by strong demand for the Xenium platform [12][48] - Total revenue for the quarter grew to $153.6 million compared to $131.1 million for the prior year period [49] - Gross profit for Q3 2023 was $95.5 million, down from $100.7 million in the prior year, with a gross margin of 62% compared to 77% [82][86] - Operating loss for Q3 2023 was $94.8 million, compared to a loss of $40 million in Q3 2022 [55][86] - The company raised its full-year revenue guidance to a range of $610 million to $625 million, reflecting growth of 18% to 21% over 2022 [56] Business Line Data and Key Metrics Changes - Revenue from Spatial products exceeded $36 million, largely driven by the Xenium platform [13] - Total Consumables revenue was $114.4 million, an increase of 6% year-over-year, with Chromium Consumables revenue at $100.3 million, up 2% [49] - Spatial Consumables revenue grew 38% year-over-year to $14.1 million [49] - Total instrument revenue was $34.9 million, a 67% increase year-over-year, with Spatial Instrument revenue at $22.7 million compared to $6 million in Q3 2022 [80] Market Data and Key Metrics Changes - Revenue in the Americas was $99.0 million, growing 28% year-over-year, while EMEA revenue was $32 million, growing 15% [50] - Revenue in APAC was $22.6 million, a 12% decrease year-over-year, primarily due to challenges in China [50][81] Company Strategy and Development Direction - The company is focused on the Xenium product launch, which is seen as a transformative technology in the industry [32][43] - There is a strong emphasis on expanding the Chromium franchise and capturing untapped opportunities in single-cell analysis [42][43] - The company plans to introduce new capabilities, including a high-plex protein assay and multimodal cell segmentation, to enhance the Xenium platform [38][139] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term potential of the Chromium and Xenium platforms, despite current challenges in the macro environment [59][60] - The company is optimistic about the robust pipeline of new product launches planned for 2024 [47] - Management noted that the enthusiasm for Xenium among researchers indicates a significant market opportunity ahead [68] Other Important Information - The company faced increased operating expenses of $190.3 million in Q3 2023, driven by R&D expenses related to an acquisition [53] - The company ended the quarter with $356.9 million in cash and cash equivalents [86] Q&A Session Summary Question: Can you provide metrics on the Xenium order funnel? - Management noted that the order funnel remains healthy, with strong demand and enthusiasm from researchers [61] Question: How is the Chromium business performing in different regions? - Management indicated that Chromium growth has been a regional story, with challenges in China but mid-to-high teens growth in the Americas and EMEA [63] Question: What are the expectations for the Xenium adoption curve? - Management expressed that the Xenium launch is on a strong trajectory, with many customers quickly ramping up their usage [120] Question: How is the biopharma market performing? - Biopharma remains a stable fraction of the business, around 20%, but there has been a tightening of budgets recently [127]