10X Genomics (TXG) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $151.7 million, down 1% year-over-year, mainly due to lower instrument sales and sales restructuring disruptions, partially offset by higher consumables revenue and strong spatial consumables growth.

• Gross margin improved to 70% from 62% last year, driven by favorable product mix and increased consumables contribution.

• Operating loss narrowed to $41.5 million from $94.8 million last year; net loss was $35.8 million, a significant improvement from $93.0 million.

• Major commercial reorganization and product transitions contributed to operational challenges but are expected to drive long-term growth.

• Launched new products: GEM-X Flex, GEM-X Universal Multiplex, and Chromium Xo, aimed at reducing cost per cell and expanding market reach.

Financial highlights

• Q3 2024 revenue: $151.7 million, down 1% year-over-year; nine months revenue: $445.8 million, up 3%.

• Consumables revenue: $126.2 million, up 10%; spatial consumables up 111% to $29.7 million; Chromium consumables down 4%.

• Instrument revenue: $19.1 million, down 45%; Chromium instruments down 38%, spatial instruments down 50%.

• Operating expenses: $147.9 million, down 22% from $190.3 million last year.

• Cash and cash equivalents: $398.2 million as of September 30, 2024.

Outlook and guidance

• Full-year 2024 revenue guidance: $595–$605 million, a 3% decline from 2023 at midpoint.

• Q4 revenue expected to be flat sequentially; no typical seasonal uptick anticipated due to ongoing headwinds.

• Ongoing headwinds expected from commercial restructuring and macroeconomic pressures into next year.

• Price reductions in Chromium expected to be offset by volume growth over 3–4 quarters.

• Commercial organization expected to be fully ramped by mid-2025.