NEW YORK – 10x Genomics reported after the close of the market on Tuesday a 23 percent decrease in second quarter revenues, attributable to customer lab closures due to the COVID-19 pandemic.
For the three months ended June 30, 2020 the Pleasanton, California-based single-cell and spatial analysis technologies firm reported $42.9 million in revenues, down from $55.8 million in the prior-year period, beating the consensus Wall Street estimate of $29.6 million.
Consumables revenues for the quarter were $34.2 million, down 27 percent year over year; instrument revenues were $7.3 million, down 12 percent; and service revenue was $1.5 million, up 48 percent. Instrument revenues were impacted by strategic discounting for units that would be used directly in COVID-19 research.
Revenues from North America totaled $20.3 million, down 39 percent year over year; revenues from Europe, the Middle East, and Africa totaled $11.7 million, down 4 percent; and revenues from the Asia-Pacific region totaled $10.9 million, up 3 percent.
"Due to the efforts and perseverance of the 10x team, we were able to successfully execute across the business and launch a number of breakthrough products in the face of significant challenges during the quarter," 10x CEO and Cofounder Serge Saxonov said in a statement. "While we may face continued near-term disruption related to the pandemic, recent events have reinforced the importance of mastering biology, and I am as confident as ever in our long-term opportunity."
On a conference call following the release of results, Saxonov noted that the firm saw some tailwinds from its immune profiling product. He also noted the firm had started taking orders for a new combined single-cell epigenetics and transcriptomics assay and would soon release a new Cell Ranger software that supports targeted gene expression assays and offers data analysis up to four times faster than the previous version.
The firm's net loss for the quarter was $40.2 million, or $.41 per share, compared to a loss of $10.9 million, or $.70 per share, in Q2 2019, beating the average Wall Street estimate of a $.55 loss per share.
The weighted average shares of common stock used to compute net loss per share was approximately 99 million in Q2 compared to approximately 15.6 million in the year-ago quarter. 10x went public in September 2019.
The firm's R&D expenses jumped 53 percent to $27.5 million from $18 million a year ago, driven by $8.2 million in increased personnel expenses and $1.3 million in allocated costs for facilities and information technology. Its SG&A expenses increased 36 percent to $44.4 million from $32.6 million a year ago, driven by $8.8 million in increased personnel expenses and $1.4 million in increased legal expenses.
As of June 30, 10x had $339.8 million in cash and cash equivalents and $57.8 million in restricted cash.
Company officials reiterated that the firm would not provide guidance due to uncertainty stemming from the pandemic; however, they noted that third quarter revenues could be on pace to be similar to the third quarter of last year.
In Wednesday morning trading on the Nasdaq, shares of the company were down less than 1 percent at $96.36.