NEW YORK – 10x Genomics reported after the close of the market on Monday a 34 percent increase in first quarter revenues.
For the three months ended March 31, the Pleasanton, California-based single-cell and spatial analysis technologies firm reported $71.9 million in revenues, up from $53.6 million in the prior-year period. The revenues were in line with preliminary revenues the company provided in early April and missed the average Wall Street estimate of $73.4 million.
"We are doing all we can to support our customers as they race to understand and fight the COVID-19 pandemic," 10x CEO and Cofounder Serge Saxonov said in a statement. "Despite the temporary uncertainty in the macro environment, we see tremendous opportunities ahead. Our mission to accelerate the mastery of biology is more important now than it has ever been, and I am confident that the future holds an even greater appreciation and appetite for scientific discovery."
On a conference call following the release of results, Saxonov noted that the firm saw some increased activity from labs doing COVID-19-related research, especially related to immune profiling, but that any benefits were cancelled out by negative effects. On the call, CFO Justin McAnear said the COVID-19 pandemic had an "unfavorable" impact on consumables sales due to lab closures; approximately 75 percent of 10x's customers in North America and Europe have suspended operations due to COVID-19. However, the pandemic had a "favorable" impact on instrument revenues, due to increased demand, and service revenue was "not materially impacted," he said.
Consumables revenues for the quarter were $61.4 million, up 34 percent year over year; instrument revenues were $9.1 million, up 33 percent; and service revenue was $1.3 million, up 52 percent.
Revenues from North America totaled $39.7 million, up 39 percent year over year; revenues from Europe, the Middle East, and Africa totaled $13.2 million, up 7 percent; and revenues from the Asia-Pacific region totaled $19.0 million, up 48 percent. 10x officials noted that by January the firm had seen the impact of COVID-19 on revenues from China as labs closed, but labs there began to reopen in the last few weeks of the quarter and overall revenue from China was close to the firm's expectations for the period.
The number of labs using the recently launched Visium spatial transcriptomics platform doubled to about 400, Saxonov said. And a research network to help bring Visium to clinical and translational researchers, announced in February, was "massively oversubscribed," 10x Chief Commercial Officer Brad Crutchfield said.
The firm's net loss for the quarter was $21.1 million, or $.22 per share, compared to a loss of $3.6 million, or $.25 per share, in Q1 2019, and missing the average Wall Street estimate of a $.13 loss per share.
The weighted average shares of common stock used to compute net loss per share was approximately 96.8 million in Q1 compared to approximately 14.8 million in the year-ago quarter. 10x went public in September 2019.
The firm's R&D expenses jumped 73 percent to $26 million from $15 million a year ago, driven by $7.1 million of increased personnel-related expenses and $2.5 million in spending on lab supplies and equipment. Its SG&A expenses increased 87 percent to $50.4 million from $26.9 million a year ago, driven by $11.7 million in increased expenditure related to ongoing litigation, including a $5 million success fee payment, and $8.9 million in personnel costs.
As of March 31, 2020, 10x had $372.4 million in cash and cash equivalents.
In early April, 10x withdrew its full-year 2020 revenue guidance citing uncertainty due to the COVID-19 pandemic. "The COVID-19 pandemic is a highly fluid situation and it is not currently possible for the company to reasonably estimate the impact it may have on financial and operating results," 10x said in a statement." Previously, it had guided to full-year revenues between $350 million and $360 million.
"Looking ahead, over the next few months we expect a meaningful portion of our revenue to be impacted while labs remain closed," McAnear said.
In Wednesday morning trading on the Nasdaq, shares of the company were down 5 percent at $78.38.