PLEASANTON, Calif. - 10x Genomics, Inc. (NASDAQ:TXG) reported third-quarter results that fell short of expectations, sending shares down 7.79% in after-hours trading on Tuesday.
The single cell and spatial biology company posted revenue of $151.7 million for the quarter, missing analyst estimates of $158.84 million and representing a 1% YoY decrease. Adjusted earnings per share came in at -$0.30, beating expectations of -$0.34.
10x Genomics cited greater-than-anticipated disruption from a sales restructuring implemented during the quarter, as well as cautious customer spending, for the revenue shortfall. The company also lowered its full-year 2024 revenue guidance to $595-$605 million from its previous outlook of $640-$660 million.
"Our results this quarter fell short of our expectations given greater-than-anticipated disruption from the sales restructuring we implemented in the quarter and cautious customer spending," said Serge Saxonov, Co-founder and CEO of 10x Genomics. "As these dynamics persist, especially under a difficult macro backdrop, our revenue growth this year will be lower than our previous expectations."
The company's gross margin improved to 70% from 62% in the year-ago quarter, primarily due to changes in product mix. Operating expenses decreased 22% YoY to $147.9 million.
10x Genomics highlighted the launch of several new products during the quarter, including GEM-X Flex (NASDAQ:FLEX), which enables researchers to run millions of cells for less than one cent per cell, and Chromium Xo, a budget-friendly instrument for routine single cell analysis.
Despite near-term challenges, Saxonov expressed confidence that the steps being taken will enable the company to reach more customers and drive broader adoption of its technologies.
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