10x Genomics, Inc. (NASDAQ: TXG) reported disappointing third-quarter results and lowered its full-year revenue guidance, citing challenges related to its ongoing commercial reorganization and a challenging macroeconomic environment.

For the third quarter of 2024, the company reported revenue of $151.7 million, down 1% year-over-year, missing analysts' expectations. 10x Genomics now expects full-year revenue to be in the range of $595 million to $605 million, representing a 3% decrease from the previous year's figure.

The revenue miss and guidance cut were primarily attributed to two key factors:

1. Disruptions caused by the company's commercial restructuring efforts, which involved significant changes to its sales organization and territory alignments. Over 40% of customer accounts in the Americas experienced sales coverage changes during the quarter, leading to disruptions and elongated sales cycles.

2. Cautious customer spending, particularly around capital expenditures and larger consumables projects, amid the challenging macroeconomic environment. The company did not see the typical seasonal uptick in the fourth quarter due to these headwinds.

To address these challenges, 10x Genomics has implemented several strategies. On the product front, the company launched new offerings like GEM-X Flex and GEM-X Universal Multiplex, aimed at lowering the cost of single-cell analysis and driving market expansion through price elasticity. These new products have comparable gross margins to the existing portfolio.

Additionally, the company restructured its commercial organization to better serve diverse customer needs, including creating specialized teams for capital equipment and the biopharma sector. While these changes caused near-term disruptions, the company expects them to drive more efficient growth across its product portfolio over time.

Serge Saxonov, CEO of 10x Genomics, acknowledged the disappointing year but remained confident in the company's long-term opportunity. He stated, "While 2024 has been disappointing, the company is making comprehensive changes to its commercial structure to address past challenges. We're confident in our strategy and expect to see improvements, although it will take time for the changes to fully materialize."

The management team expects the commercial reorganization to be fully effective by mid-2025, with improvements in execution and visibility. However, they cautioned that the macroeconomic environment remains challenging, and cautious customer spending could persist.