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10x Genomics Reports Fourth Quarter and Full Year 2024 Financial Results

In a recent announcement, 10x Genomics, Inc. (Nasdaq: TXG), recognized as a frontrunner in single-cell and spatial biology, released its financial results for the fourth quarter and full year of 2024, along with an optimistic outlook for 2025. Despite challenges, the company reported significant advancements and long-term goals that could reshape its trajectory.

Financial Overview

Quarterly Insights

For Q4 2024, 10x Genomics recorded revenues of $165.0 million, representing a 10% decline from Q4 2023's $184.0 million. Gross margins showed positive movement, increasing from 63% to 67% due to an altered product mix. Operating expenses amounted to $160.8 million, down 6% from the previous year's $171.0 million, attributed to reduced research and development costs and strategic adjustments within the organization.

Despite the decrease in revenue, the operating loss was less severe than the previous year, falling from $55.2 million in Q4 2023 to $49.8 million in Q4 2024. This indicates improved cost management, particularly in stock-based compensation, which also saw a drop from $38.9 million to $32.5 million.

Annual Performance

Looking at the full year 2024, total revenues reached $610.8 million, a modest 1% decrease from 2023's $618.7 million. The gross margin improved to 68%, up from 66%, again reflecting a beneficial change in product offerings and operational strategies. Operating expenses showed a notable reduction, dropping from $674.6 million in 2023 to $609.0 million in 2024, mainly due to reduced R&D expenditures.

The net loss for 2024 was $182.6 million, significantly better than the $255.1 million loss in the previous year, indicating a positive direction for the company's overall health.

Strategic Developments

One of the most exciting developments for 10x Genomics in 2024 was the inception of the Billion Cells Project, a collaboration with the Chan Zuckerberg Initiative (CZI) and Ultima Genomics. This ambitious project aims to compile a dataset of one billion cells, fostering advancements in artificial intelligence (AI) within biological research.

CEO Serge Saxonov remarked, "In 2024, we launched major new products across all three of our platforms and made changes to our commercial organization and go-to-market strategy. As we kick off 2025, our goal is to take advantage of these changes and deliver consistent execution."

Future Projections

As for the upcoming year, 10x Genomics forecasts revenue for 2025 to be between $610 million and $630 million, indicating a potential growth of up to 3% over the previous year. Notably, this growth prospect includes expectations of double-digit growth for specific product lines, particularly in Chromium reactions and spatial revenue.

The company is well-positioned to navigate the uncertainties facing U.S. academic research and leverage its innovative products and collaborations in the life sciences market.

Conclusion

With a foundation rooted in advanced technology and notable partnerships, 10x Genomics aims to reinforce its position in the industry while overcoming the obstacles of the past year. Their strategic focus, effective cost management measures, and significant expansions in research initiatives set a promising tone as they embark on 2025 and beyond.

For those interested in learning more about 10x Genomics and their contributions to biological research, detailed information can be found on their official website.