PLEASANTON, Calif., Aug. 8, 2022 /PRNewswire/ -- 10x Genomics, Inc. (Nasdaq: TXG) today reported financial results for the second quarter ended June 30, 2022.
"Our results this quarter fell short of our expectations as we navigated some macro headwinds, particularly outside of the United States," said Serge Saxonov, Co-founder and CEO of 10x Genomics. "Our topline growth this year will be slower than our previous expectations, but we firmly believe the underlying opportunity for our single cell and spatial technologies is as strong as ever. We are driving our innovation engine and building on our broad commercial reach so we can deliver on the full potential of this tremendous opportunity."
Second Quarter 2022 Financial Results
Revenue was $114.6 million for the second quarter of 2022, a 1% decrease from $115.8 million for the corresponding prior year period. This decrease was primarily driven by decreased demand due to lockdowns in China, delayed customer reorders in Europe resulting from a logistics cold-chain issue, execution challenges and unfavorable foreign exchange headwinds.
Gross margin was 76% for the second quarter of 2022, as compared to 96% for the corresponding prior year period. The decrease in gross margin was primarily due to a one-time reversal of $14.7 million of accrued royalties in the second quarter of 2021, and higher manufacturing costs, higher royalty expenses, higher inventory charges and higher warranty costs.
Operating expenses were $150.0 million for the second quarter of 2022, a 24% increase from $121.3 million for the corresponding prior year period. This increase was driven by higher personnel expenses, including stock-based compensation, increased costs for facilities and information technology to support operational expansion, and increased marketing expenses, partially offset by a decrease in outside legal expenses.
Operating loss was $63.1 million for the second quarter of 2022, as compared to $10.3 million for the corresponding prior year period. Operating loss includes $36.3 million of stock-based compensation for the second quarter of 2022, as compared to $26.9 million for the corresponding prior year period.
Net loss was $64.5 million for the second quarter of 2022, as compared to a net loss of $11.1 million for the corresponding prior year period.
Cash and cash equivalents and marketable securities were $499.7 million as of June 30, 2022.
2022 Financial Guidance
10x Genomics is updating its outlook for the full year 2022. The company now expects revenue to be in the range of $500 million to $520 million, representing 2% to 6% growth over full year 2021.
Webcast and Conference Call Information
10x Genomics will host a conference call to discuss the second quarter 2022 financial results, business developments and outlook after market close on Monday, August 8, 2022 at 1:30 PM Pacific Time / 4:30 PM Eastern Time. A webcast of the conference call can be accessed at http://investors.10xgenomics.com. The webcast will be archived and available for replay at least 45 days after the event.
About 10x Genomics
10x Genomics is a life science technology company building products to interrogate, understand and master biology to advance human health. Our integrated solutions include instruments, consumables and software for analyzing biological systems at a resolution and scale that matches the complexity of biology. 10x Genomics products have been adopted by researchers around the world including in all of the top 100 global research institutions as ranked by Nature in 2021 based on publications and all of the top 20 global pharmaceutical companies by 2021 research and development spend and have been cited in over 3,800 research papers on discoveries ranging from oncology to immunology and neuroscience. Our patent portfolio comprises more than 1,500 issued patents and patent applications.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. All statements, other than statements of historical facts, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "might," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project" "contemplate," "believe," "estimate," "predict," "potential" or "continue" or variations of them or similar terminology, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include statements regarding 10x Genomics, Inc.'s expectations regarding our business operations, financial performance and results of operations, including our expectations regarding revenue and guidance, as well as our ability to meet our anticipated cash needs for the foreseeable future. These statements are based on management's current expectations, forecasts, beliefs, assumptions and information currently available to management, and actual outcomes and results could differ materially from these statements due to a number of factors. The material risks and uncertainties that could affect 10x Genomics, Inc.'s financial and operating results and cause actual results to differ materially from those indicated by the forward-looking statements made in this press release include those discussed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in the documents 10x Genomics, Inc. files with the Securities and Exchange Commission from time to time.
Although 10x Genomics, Inc. believes that the expectations reflected in the forward-looking statements are reasonable, it cannot provide any assurance that these expectations will prove to be correct nor can it guarantee that the future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or occur. These forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments 10x Genomics may make. Further, as the COVID-19 pandemic is continuously evolving, such forward-looking statements may not accurately or fully reflect the potential impact that the COVID-19 pandemic may have on the business, financial condition, results of operations and cash flows of 10x Genomics, Inc. The forward-looking statements in this press release are based on information available to 10x Genomics, Inc. as of the date hereof, and 10x Genomics, Inc. disclaims any obligation to update any forward-looking statements provided to reflect any change in our expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing 10x Genomics, Inc.'s views as of any date subsequent to the date of this press release.
10x Genomics uses filings with the Securities and Exchange Commission, our website (www.10xgenomics.com), press releases, public conference calls, public webcasts and our social media accounts as means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD.
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