10x Genomics reported a 5% YOY increase in first quarter revenues, driven by its spatial biology product lines.
10X Genomics TXG 0.00%↑ booked $141.0 million in revenues, up from $134.3 million in the prior-year period but missing the consensus Wall Street estimate of $142.2 million.
Consumables revenues were $110.3 million, down 2 percent from $112.4 million a year ago. By platforms, Chromium consumables revenues were $83.9 million, down 17 percent from $101.1 million a year ago, while spatial consumables revenues more than doubled to $26.4 million from $11.3 million.
Instrument revenues were $25.4 million, up 32 percent from $19.2 million a year ago, driven by spatial instrument revenue more than doubling, to $17.6 million from $7.6 million, while Chromium instrument revenues declined to $7.9 million from $11.6 million a year ago. Service revenues were $5.2 million, nearly double the $2.7 million in Q1 2023.
"In its first quarter, Visium HD helped drive strong growth in spatial [genomics]. We also had a significant number of customers trial our new Gem-X products, contributing to lower quarter-end orders for Chromium," 10x CEO and Cofounder Serge Saxonov said in a statement. "Overall, we're encouraged by the early enthusiasm, adoption, and feedback from customers and believe these new launches will help accelerate growth as we move through the year."
Revenues from the Americas totalled $79.6 million, down from $78.8 million a year ago; revenues from Europe, the Middle East, and Africa were $34.7 million, up from $28.4 million a year ago; and revenues from the Asia-Pacific region totalled $26.7 million, slightly down from $27.1 million a year ago.
The cyclical drop in revenue in Q1 is of a similar magnitude to last year: academic labs and other institutions sometimes benefit from pushing orders through before end of year, which means the Q4 of every year always looks better for TXG than the Q1 of the next year.
The firm's net loss for the quarter was $59.9 million, or $.50 per share, compared to a net loss of $50.7 million, or $.44 per share, in Q1 2023, in line with the consensus Wall Street estimate of a $.50 loss per share.
10x's R&D expenses for the quarter grew 2 percent, year over year, to $68.6 million from $67.1 million a year ago. Its SG&A expenses grew 3 percent to $85.8 million from $83.3 million a year ago.
As of March 31, 10x had $355.8 million in cash and cash equivalents and $16.0 million in marketable securities.
The firm maintained its full-year revenue guidance of between $670 million and $690 million.
Considering that last year’s revenue was $618M, the guidance still shows grows, but it’s a modest amount, compared to the +$100M growth between 2022 and 2023.
I’ll discuss the strategic positioning on TXG compared to other Single Cell and Spatial Biology entities, and companies in the NGS or NGPS realm in general.