Gene Sequencing Tech Provider 10x Genomics' Q3 Sales Fall Short On Expectations, But CEO Sees Opportunity Ahead

10x Genomics Inc TXG stock is trading lower after the company, on Wednesday, released preliminary financial results for the third quarter of 2024, revealing a mixed performance.

The company’s revenue for the quarter totaled approximately $151.7 million versus the consensus of $162.245 million, marking a slight 1% decline compared to the same period in 2023.

Also Read: What’s Going On With 10x Genomics Stock On Wednesday?

“Third-quarter revenue fell short of our expectations,” said Serge Saxonov, Co-founder and CEO of 10x Genomics. “The previously announced modifications we made to our commercial processes and organization to increase effectiveness represented a significant change in how we engage with customers. The transition was more disruptive than we anticipated, especially in the Americas. At the same time, our customers continue to be cautious with their spending, particularly around capital purchases, which notably impacted instrument sales during the quarter. 

10x Genomics’ instruments sales fell significantly, with a 46% drop to $19.1 million. This included $7.6 million from Chromium instruments and $11.4 million from Spatial instruments.

Consumables sales grew by 10%, reaching $126.2 million. Of this, Chromium consumables accounted for $96.5 million, and Spatial consumables generated $29.7 million.

Additionally, services revenue experienced a robust 48% growth, contributing $6.4 million.

Revenue trends varied geographically. The company saw an 11% decline in the Americas, bringing revenue to $87.8 million.

However, strong growth was reported in both EMEA and APAC regions, with 18% and 15% increases, respectively. EMEA revenue totaled $37.9 million, while APAC generated $26.0 million.

The company also reported cash and cash equivalents of approximately $398 million as of September 30, 2024.

The company plans to provide full guidance for the year during its earnings call on October 29, 2024.

During its second quarter 2024 earnings release, the gene sequencing company cut its fiscal year 2024 sales guidance to $640 million to $660 million from a prior range of $670 million to $690 million versus the consensus of $648.21 million.

Price Action: TXG stock is down 26.20% at $15.35 during the premarket session at the last check on Thursday.

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