10X Genomics (TXG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 4% year-over-year to $153.1 million, driven by strong spatial consumables growth, while net loss narrowed to $37.9 million from $62.4 million in Q2 2023.

• Operating expenses declined 10% year-over-year to $146 million, reflecting lower R&D, SG&A, and stock-based compensation.

• Gross margin remained stable at 68% for the quarter.

• Cash and equivalents plus marketable securities totaled $380.1 million as of June 30, 2024.

• Commercial restructuring underway, including new Chief Commercial Officer and CFO appointments, to drive future growth and efficiency.

Financial highlights

• Total Q2 2024 revenue: $153.1 million (up 4% YoY), with spatial consumables up 150% YoY and Chromium consumables down 7% YoY but up 12% sequentially.

• Gross profit: $104.2 million; gross margin flat at 68%.

• Operating loss: $41.7 million (improved from $63.4 million YoY); net loss: $37.9 million (improved from $62.4 million YoY).

• Cash and equivalents: $380.1 million; generated $8.3 million cash in Q2.

• Services revenue up 74% YoY, mainly from increased Chromium service contracts.

Outlook and guidance

• 2024 revenue guidance lowered to $640–$660 million (3%–7% growth), reflecting macro headwinds and commercial restructuring.

• CapEx headwinds and elongated sales cycles expected to persist, especially for high-priced instruments.

• Full-year capital expenditures anticipated at $15–$20 million; focus remains on cash discipline and self-funding innovation.

• Existing liquidity expected to cover needs for at least the next 12 months, but may seek additional funding if required.

• Q3 and Q4 expected to follow typical seasonality, with roughly equal growth rates over prior year periods.