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10x Genomics Raises 2023 Revenue Guidance After Q1 Revenues Climb 17 Percent

NEW YORK – 10x Genomics said on Wednesday after the close of the market that it is raising its full-year revenue guidance after a strong first quarter that was driven by sales in the Americas and Europe, partially offset by a decline in revenues in the Asia-Pacific region.

The Pleasanton, California-based single-cell and spatial genomics firm raised its 2023 revenue guidance to between $590 million and $610 million from a prior range of $580 million to $600 million, representing 14 percent to 18 percent growth over the prior year.

For the three months ended March 31, 10x reported a 17 percent increase in revenues to $134.3 million, up from $114.5 million in the prior-year period, beating the consensus Wall Street estimate of $128.8 million.

For the first time, 10x split out revenues from its single-cell and spatial genomics product lines. Total consumables revenues were $112.4 million, up 15 percent year over year from $98.0 million, with $101.1 million from Chromium and $11.3 million from spatial. Total instrument revenues were $19.2 million, up 33 percent from $14.4 million a year ago, driven by $7.6 million in spatial instrument revenues and partially offset by a decline in Chromium instrument revenues to $11.6 million from $14.3 million a year ago. Service revenues were $2.7 million in Q1, up 29 percent from $2.1 million in Q1 2022.

For the single-cell Chromium product line, "nearly every assay grew, year over year, in both [the Americas and EMEA]," 10x CEO and Cofounder Serge Saxonov said on a conference call with investors following the release of the results.

Saxonov predicted placements of the newer Chromium X Series instruments to "accelerate as more customers appreciate the power and performance of [the Chromium Gene Expression Flex] assay," which is only available on the X series and can process fixed samples.

"Over time, Flex is going to drive a complete upgrade cycle as far as the customer base goes," CFO Justin McAnear said during the call. "And so that’s going to be a key driver of placing primarily [Chromium] iXs in the future and eventually turning over that instrument installed base to the X Series." However, he said 10x would not share its expectations for Chromium placements over the rest of 2023 and cautioned against "extrapolating the Q1 results over the rest of the year." 

Revenues from the Americas totaled $78.8 million, up from $59.7 million a year ago; revenues from Europe, the Middle East, and Africa were $28.4 million, up from $20.5 million a year ago; and revenues from the Asia-Pacific region totaled $27.1 million, down from $34.3 million a year ago, driven by lower revenues from China.

The firm's net loss for the quarter was $50.7 million, or $.44 per share, compared to a net loss of $42.4 million, or $.38 per share, in Q1 2022, missing the average Wall Street estimate of a $.37 loss per share.

10x's R&D expenses grew 5 percent to $67.1 million in Q1 from $64.1 million a year ago. Its SG&A expenses jumped 25 percent to $83.3 million from $66.7 million a year ago.

McAnear said the firm would be cutting expenses, overall, but predicted an increase in litigation expenses over the rest of the year "as we continue to defend our intellectual property."

As of March 31, 10x had $332.3 million in cash and cash equivalents, $86.0 million in marketable securities, and $2.5 million in restricted cash.

In Thursday morning trading on the Nasdaq, shares of 10x were down 2 percent at $53.10.