On February 15, 2023 10x Genomics, Inc. (Nasdaq: TXG) reported financial results for the fourth quarter and full year ended December 31, 2022 and provided outlook for 2023 (Press release, 10x Genomics, FEB 15, 2023, View Source [SID1234627274]).
Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:
Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing
Schedule Your 30 min Free Demo!
Recent Highlights
Revenue was $156.2 million for the fourth quarter and $516.4 million for the full year of 2022, representing 9% and 5% increases over the corresponding periods of 2021.
Increased cumulative instruments sold to more than 4,600 as of the end of 2022, driven by continued adoption of Chromium X Series instruments and strong demand for Visium CytAssist.
Began shipping the Xenium platform for in situ analysis, delivering key performance advantages in data quality, workflow and throughput through highly differentiated chemistry, hardware and software.
Unveiled new data and showcased key advances and future development directions for all three platforms at the 2023 Advances in Genome Biology and Technology General Meeting.
"The clear highlight of 2022 was the velocity of our innovation engine as our team delivered catalytic launches across all three platforms," said Serge Saxonov, Co-founder and CEO of 10x Genomics. "We finished the year with momentum and in a strong position to capture the massive opportunities ahead."
Fourth Quarter 2022 Financial Results
Revenue was $156.2 million for the three months ended December 31, 2022, a 9% increase from $143.5 million for the three months ended December 31, 2021. This increase was primarily the result of higher consumables revenue in the Americas and EMEA regions partially offset by a decline in China, and overall higher volume of instruments sold including the sales of our newly introduced Xenium instruments, partially offset by unfavorable foreign currency exchange fluctuations.
Gross margin was 76% for the fourth quarter of 2022, as compared to 81% for the corresponding prior year period. The decrease in gross margin was primarily due to change in product mix with newly introduced products.
Operating expenses were $142.5 million for the fourth quarter of 2022, a 8% increase from $131.8 million for the corresponding prior year period. The increase in operating expenses was primarily driven by higher personnel expenses, including stock-based compensation and restructuring costs, increased costs for facilities and information technology to support operational expansion and higher legal expenses, partially offset by lower costs for laboratory materials and supplies and a decrease in marketing expenses.
Operating loss was $23.1 million for the fourth quarter of 2022, as compared to an operating loss of $15.8 million for the corresponding prior year period. Operating loss also includes $41.0 million of stock-based compensation for the fourth quarter of 2022, as compared to $26.9 million for the fourth quarter of 2021.
Net loss was $17.2 million for the fourth quarter of 2022, as compared to a net loss of $18.4 million for the corresponding prior year period.
Full Year 2022 Financial Results
Revenue was $516.4 million for the year ended December 31, 2022, a 5% increase from $490.5 million for 2021.
Gross margin was 77% for full year 2022, as compared to 85% for 2021. The decrease in gross margin was primarily due to higher accrued royalties including a one-time reversal of $14.7 million of previously accrued royalties in 2021, change in product mix with newly introduced products and increased manufacturing and logistics costs.
Operating expenses were $564.0 million for full year 2022, as compared to $468.7 million for 2021, an increase of 20%. The increase in operating expenses was primarily due to higher personnel expenses, including stock-based compensation and restructuring costs, increased expenses related to laboratory materials and supplies to support our research and development efforts and increased facilities and information technology costs to support operational expansion, partially offset by lower legal expenses, consulting and professional services and marketing expenses.
Operating loss was $167.9 million for full year 2022, as compared to an operating loss of $52.3 million for 2021. This includes $136.8 million of stock-based compensation for full year 2022, as compared to $96.0 million for full year 2021.
Net loss was $166.0 million for full year 2022, as compared to a net loss of $58.2 million for 2021.
Cash and cash equivalents and marketable securities were $430.0 million as of December 31, 2022.
2023 Financial Guidance
10x Genomics expects full year 2023 revenue to be in the range of $580 million to $600 million, representing 12% to 16% growth over full year 2022 revenue.
Webcast and Conference Call Information
10x Genomics will host a conference call to discuss the fourth quarter and full year 2022 financial results, business developments and outlook after market close on Wednesday, February 15, 2023 at 1:30 PM Pacific Time / 4:30 PM Eastern Time. A webcast of the conference call can be accessed at View Source The webcast will be archived and available for replay for at least 45 days after the event.