10X Genomics (TXG) TD Cowen 45th Annual Healthcare Conference summary

Business performance and strategic initiatives

• Navigated a challenging macro environment in 2024, making significant investments and launching major new products across all platforms, which were well received by customers.

• Undertook a major commercial reorganization, including new sales leadership and restructuring go-to-market strategies, resulting in improved capabilities and outlook.

• Embedded a 5% decline in NIH spend into 2025 guidance, with NIH-related business representing 20-25% of revenue; expects modest decline in single-cell business and double-digit growth in spatial business.

• China business has stabilized post-COVID, with a robust distributor network and sequencer-agnostic products mitigating regulatory risks.

• Maintains a strong competitive position, extending product performance and quality lead over competitors, and expects this advantage to grow.

Financial outlook and guidance

• 2025 revenue guidance is $610M–$630M, reflecting flat to 3% growth over 2024, with assumptions of continued NIH funding pressure and a constrained CapEx environment.

• Free cash flow positivity is expected and considered sustainable, with $393M in cash at 2024 year-end and ongoing cost discipline, especially in SG&A.

• Efficiency gains from commercial reorganization and manufacturing productivity are expected to support financial stability.

Product innovation and market expansion

• 2023 was a record year for product launches, with new offerings enabling lower pricing and broader adoption, especially in single-cell and spatial platforms.

• Place-based Flex product on Chromium and new Visium and Xenium launches are anticipated to drive further growth, particularly in biopharma.

• Lower pricing and product innovation have increased demand elasticity, attracting new mainstream and large-scale customers, including major projects like the Chan Zuckerberg Initiative.

• Spatial business is guided for double-digit growth in 2025, with strong pull-through on Xenium and Visium platforms and early innings of market adoption.