• Total Revenue (Q4 2024): $165 million, a 9% sequential increase and a 10% year-over-year decrease.
• Total Revenue (Full Year 2024): $610.8 million, a 1% decrease from 2023.
• Consumables Revenue (Q4 2024): $133.5 million, down 5% year-over-year.
• Chromium Consumables Revenue (Q4 2024): $97.7 million, down 17% year-over-year.
• Spatial Consumables Revenue (Q4 2024): $35.8 million, up 61% year-over-year.
• Instrument Revenue (Q4 2024): $24.4 million, down 37% year-over-year.
• Chromium Instrument Revenue (Q4 2024): $10.9 million, down 2% year-over-year.
• Spatial Instrument Revenue (Q4 2024): $13.4 million, down 51% year-over-year.
• Services Revenue (Q4 2024): $7.1 million, up 35% year-over-year.
• Gross Margin (Q4 2024): 67%, up from 63% in Q4 2023.
• Operating Loss (Q4 2024): $49.8 million, compared to a loss of $55.2 million in Q4 2023.
• Net Loss (Q4 2024): $49 million, flat compared to Q4 2023.
• Cash and Cash Equivalents (End of 2024): $393.4 million, an increase of approximately $5 million from December 31, 2023.
• Revenue Guidance (2025): $610 million to $630 million, representing 0% to 3% growth over 2024.

• Warning! GuruFocus has detected 7 Warning Signs with TXG.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• 10x Genomics Inc (NASDAQ:TXG) launched major new products across all three platforms, receiving a tremendous customer response.
• The company introduced new products in the single-cell portfolio, offering lower prices per cell and sample, aiming to increase volumes over time.
• Spatial platform revenue grew by 33% year over year, driven by new product launches like Visium HD and Xenium Prime 5K.
• The company reorganized its sales force to better support its diverse product portfolio and customer base, aiming for full implementation by mid-2025.
• 10x Genomics Inc (NASDAQ:TXG) is focusing on expanding its biopharma segment, which currently makes up 15-20% of revenue, with plans to grow it to 50% in the future.

Negative Points

• Total revenue for 2024 was $611 million, down 1% compared to the prior year, reflecting a challenging macro environment.
• Chromium consumables revenue decreased by 17% due to lower reaction prices, impacting overall revenue.
• Total instrument revenue decreased by 37%, with spatial instrument revenue down 51% due to fewer Xenium instruments sold.
• The company faces uncertainty regarding NIH funding, which constitutes 20-25% of its revenue, with potential impacts from indirect cost caps.
• 10x Genomics Inc (NASDAQ:TXG) anticipates some lingering impact from commercial changes during the first half of 2025, particularly in the Xenium team.

Q & A Highlights

Q: Can you provide insights on the pricing strategy for single-cell products and its impact on consumables? A: Serge Saxonov, CEO, explained that 10x Genomics offers multiple products with varying configurations, catering to different customer needs. The focus is on growing the market by reducing prices to increase volumes. The transition to new products is expected to lower average prices per reaction, but the company anticipates increased volumes to offset this.

Q: How is the NIH funding situation affecting your guidance for 2025? A: Adam Taich, CFO, stated that NIH funding accounts for 20-25% of their revenue. The guidance assumes a mid-single-digit decrease in NIH-funded projects, equating to a $7 million impact. The recent indirect cost cap is not included in the guidance, but if fully implemented, it could result in a $10-15 million impact.

Q: What is driving the expected double-digit growth in Chromium volumes for 2025? A: Serge Saxonov noted that the sequential increase in reactions from Q3 to Q4 2024 is expected to continue. New products, price points, and configurations are opening up more use cases and attracting new customers, including large projects like the Chan Zuckerberg Initiative's billion-cell project.

Q: How are you addressing the potential impact of indirect funding cuts on instrumentation purchases? A: Serge Saxonov emphasized that most instruments sold to academic core labs are financed through direct funds, which are less affected by indirect funding cuts. The company is monitoring the situation closely and supporting customers through this uncertain period.

Q: Can you elaborate on the growth potential in the biopharma segment? A: Serge Saxonov highlighted that biopharma currently represents 15-20% of revenue, with plans to expand it to 50% in the future. Recent commercial changes and new applications are expected to drive growth, with sequential improvements already seen in Q4 2024.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.