10x Genomics Shares Drop 7% Due to Missed Revenue Expectations and Downgraded Outlook

PLEASANTON, Calif. - 10x Genomics, Inc. (NASDAQ:TXG) reported third-quarter results that fell below expectations, leading to a 7.79% drop in its share price during after-hours trading on Tuesday. The single-cell and spatial biology company reported revenues of $151.7 million, which was below analyst estimates of $158.84 million. This figure represents a 1% decrease compared to the same period last year. The adjusted earnings per share of -$0.30 came in above the expectation of -$0.34.

10x Genomics attributed the revenue decline to a greater-than-expected impact from a sales restructuring implemented during the quarter and cautious spending by customers. The company also lowered its full-year 2024 revenue guidance from a previous forecast of $640-660 million to $595-605 million.

Serge Saxonov, Founder and CEO of 10x Genomics, stated, "Our results for this quarter were below expectations due to greater-than-anticipated effects from the sales restructuring we implemented during the quarter and cautious spending by customers. These dynamics will continue to impact our revenue growth this year, particularly under a challenging macro environment."

The company's gross profit margin increased to 70%, up from 62% in the same quarter last year, due to changes in the product mix. Operating expenses decreased by 22% year-over-year to $147.9 million.

10x Genomics highlighted the launch of several new products during the quarter, including GEM-X Flex, which allows researchers to run millions of cells for under a cent per cell, and Chromium Xo, an affordable device for routine single-cell analysis.

Despite the short-term challenges, Saxonov expressed confidence that the steps taken would enable the company to reach more customers and facilitate broader adoption of its technologies.