NEW YORK – 10x Genomics reported after the close of the market on Wednesday a 170 percent increase in second quarter revenues, driven by increased adoption of the firm's products, including higher consumables revenues, and decreased impact of the COVID-19 pandemic on customer operations.
For the three months ended June 30, the Pleasanton, California-based single-cell and spatial analysis technologies firm reported $115.8 million in revenues, up from $42.9 million in the prior-year period and beating the consensus Wall Street estimate of $112.9 million.
Consumables revenues for the quarter were $97.1 million, up 184 percent from $34.2 million a year ago, driven by growth in the instrument installed base and decreased effects from the pandemic. Instrument revenues were $16.9 million, up 131 percent from $7.3 million a year ago, driven by higher than expected instrument placements during the quarter. Service revenue was $1.8 million, up 20 percent from $1.5 million a year ago, attributable to instruments coming off their one-year warranty and onto paid service contracts.
Revenues from North America totaled $ 65.8 million, up 225 percent year over year; revenues from Europe, the Middle East, and Africa totaled $28.8 million, up 146 percent; and revenues from the Asia-Pacific region totaled $ 21.3 million, up 95 percent.
"We continued our track record of execution during the second quarter, delivering on major strategic objectives while also delivering on our commercial plans and R&D pipeline," Serge Saxonov, 10x's CEO and cofounder, said in a statement. "Single-cell and spatial analyses represent the future of biology. We will continue to build on our progress and momentum in bringing these technologies to more and more researchers around the world."
The firm also noted that it has entered into a settlement to end all single-cell patent litigation with Bio-Rad Laboratories, which includes a global cross-licensing agreement.
On a conference call with investors following the release of the results, Saxonov said that most customer lab operations had returned to "near normal" levels, but he cautioned that rising case counts have "increased uncertainty in our operating environment."
The firm's net loss for the quarter was $11.1 million, or $.10 per share, compared to a loss of $40.2 million, or $.41 per share, in Q2 2020, beating the average Wall Street estimate of a $.26 loss per share.
The weighted average shares of common stock used to compute net loss per share was approximately 109.7 million compared to approximately 99 million in the year-ago quarter.
The firm's R&D expenses nearly doubled to $53.4 million from $27.5 million a year ago, driven by $14 million in personnel-related expenses and $8 million in increased lab materials and equipment. Its SG&A expenses increased 55 percent to $68.7 million from $44.4 million a year ago, driven by $15.9 million in increased personnel-related expenses, $3.3 million in external legal fees, and $2.7 million in expenses related to information technology and facilities.
As of June 30, 10x had $ 622 million in cash and cash equivalents, and $18.2 million in restricted cash, including proceeds from option exercises, partially offset by operational costs of expansion.
The firm said it is maintaining its previously announced full-year 2021 revenue guidance of $480 million to $500 million, representing 61 percent to 67 percent growth over full-year 2020 revenue. 10x CFO Justin McAnear noted that with reinstatement of COVID-19 protocols that close labs to outside visitors, "it's possible we could see an impact on our business for the back half of 2021."
In Thursday morning trading on the Nasdaq, shares of the company were down 6 percent at $172.76.