NEW YORK – 10x Genomics on Wednesday lowered its 2024 revenue guidance following the release of the firm's second quarter financial results.
10x said it now expects revenue to be in the range of $640 million to $660 million versus a prior range of $670 million to $690 million. The updated range represents revenue growth of 3 percent to 7 percent over 2023.
"Our customers are under budget pressure, which has most acutely resulted in cuts to capital expenditures budgets and elongated purchase cycles, impacting our instrument revenue this quarter," 10x CEO and Cofounder Serge Saxonov said on a conference call following the release of the results. "We believe these macro factors and cautious customer spending patterns are likely to persist, putting particular pressure on instrument sales."
For the three months ended June 30, 10x reported revenues of $153.1 million, up 4 percent from $146.8 million in the prior-year period, beating the consensus Wall Street estimate of $150.1 million.
Instrument revenues were $23.9 million, down 23 percent from $31.0 million a year ago, with $15.1 million coming from spatial instruments, down from $18.1 million a year ago. Chromium instrument revenues were $8.8 million, down 32 percent year over year, while spatial instrument revenues were $15.1 million, down 17 percent from a year ago due to fewer Xenium instruments sold.
Consumables revenues for the quarter were $123.4 million, up 10 percent from $112.5 million a year ago. Spatial consumables revenues were $29.3 million, more than double $11.7 million in the year-ago quarter, driven by Visium HD and the new Xenium Prime 5K assays. Chromium consumables were down 7 percent, year over year, at $94.1 million, "driven by continued customer transition to our new Gem-X products and prioritization of spatial experiments," CFO Justin McAnear said.
Service revenue was $5.9 million, up 74 percent from $3.4 million a year ago, driven by Chromium service contracts.
Revenues from the Americas totaled $93.1 million, up 2 percent from $91.5 million a year ago. Revenues from Europe, the Middle East, and Africa totaled $37.3 million, up 20 percent from $31.2 million a year ago. Revenues from the Asia-Pacific region were $22.7 million, down 6 percent from $24 million in Q2 2023.
The firm's net loss for the quarter was $37.9 million, or $.32 per share, compared to a loss of $62.4 million, or $.53 per share, in Q2 2023, beating the consensus Wall Street estimate of a $.48 loss per share.
10x's R&D expenses were $62.9 million, down 12 percent from $71.5 million a year ago. Its SG&A expenses fell 9 percent to $83.0 million from $91.5 million in Q2 2023.
As of June 30, 10x had $379.8 million in cash and cash equivalents and $269 million in marketable securities.
In Friday morning trading on the Nasdaq, shares of 10x Genomics were up 3 percent at $20.10.