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10x Genomics(TXG) - 2024 Q4 - Annual Report
TXG10x Genomics(TXG)2025-02-12 23:23
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Financial Performance - For the year ended December 31, 2024, 10x Genomics, Inc. recognized revenues of 610.8million[411].−RevenuefortheyearendedDecember31,2024,was610.8 million[411]. - Revenue for the year ended December 31, 2024, was 610.785 million, a decrease of 1.5% from 618.727millionin2023[416].−Revenuefromconsumablesincreasedto618.727 million in 2023[416]. - Revenue from consumables increased to 493.432 million in 2024, compared to 479.553millionin2023,drivenbyariseinspatialconsumablesrevenue[492].−Netlossfor2024was479.553 million in 2023, driven by a rise in spatial consumables revenue[492]. - Net loss for 2024 was 182.627 million, an improvement from a net loss of 255.099millionin2023,representinga28.4255.099 million in 2023, representing a 28.4% reduction[419]. - Net loss per share improved to (1.52) in 2024 from (2.18)in2023[416].−Thecompanyreportednetcashprovidedbyoperatingactivitiesof(2.18) in 2023[416]. - The company reported net cash provided by operating activities of 6.664 million in 2024, a significant improvement from a net cash used of (15.197)millionin2023[424].−Thecompany’stotalcomprehensivelossfor2024was(15.197) million in 2023[424]. - The company’s total comprehensive loss for 2024 was 182.691 million, compared to 251.193millionin2023,showingareductionofapproximately27.3251.193 million in 2023, showing a reduction of approximately 27.3%[419]. Assets and Liabilities - As of December 31, 2024, total assets were 918.6 million, a decrease from 965.1millionin2023[414].−Cashandcashequivalentsdecreasedto965.1 million in 2023[414]. - Cash and cash equivalents decreased to 344.1 million in 2024 from 359.3millionin2023[414].−Accountsreceivable,net,decreasedto359.3 million in 2023[414]. - Accounts receivable, net, decreased to 87.9 million in 2024 from 114.8millionin2023[414].−Totalstockholders′equitydecreasedto114.8 million in 2023[414]. - Total stockholders' equity decreased to 710.1 million in 2024 from 741.0millionin2023[414].−Cash,cashequivalents,andrestrictedcashattheendof2024were741.0 million in 2023[414]. - Cash, cash equivalents, and restricted cash at the end of 2024 were 344.067 million, down from 359.284millionattheendof2023[424].−Inventoryincreasedto359.284 million at the end of 2023[424]. - Inventory increased to 83.1 million as of December 31, 2024, up from 73.7millionin2023,withpurchasedmaterialsandworkinprogresscontributingtotherise[481].−Propertyandequipment,netdecreasedto73.7 million in 2023, with purchased materials and work in progress contributing to the rise[481]. - Property and equipment, net decreased to 252.6 million as of December 31, 2024, from 279.6millionin2023,withdepreciationexpenserecordedat279.6 million in 2023, with depreciation expense recorded at 33.9 million for the year[482]. Expenses - Total operating expenses decreased to 609.041millionin2024from609.041 million in 2024 from 674.642 million in 2023, a reduction of approximately 9.7%[416]. - Stock-based compensation expense for 2024 was 140.749million,comparedto140.749 million, compared to 166.950 million in 2023, indicating a decrease of about 15.7%[424]. - Research and development expenses were incurred for personnel, independent contractors, and laboratory supplies, with no specific dollar amount provided in the extracted content[455]. - Advertising costs increased to 3.9millionin2024from3.9 million in 2024 from 3.3 million in 2023, while 2022 costs were 3.7million[457].ForeignCurrencyandInterestRateRisks−Approximately273.7 million[457]. Foreign Currency and Interest Rate Risks - Approximately 27% of sales in 2024 were denominated in currencies other than U.S. dollars, compared to 23% in 2023[397]. - A hypothetical 100 basis-point increase in interest rates would have adversely affected the fair value of the investment portfolio by approximately 0.2 million in 2024[396]. - The Company has exposure to foreign currency exchange risk, with a hypothetical 10% movement in exchange rates potentially changing cash and cash equivalents by approximately 4.2millionin2024[398].−TheCompanyrecognizedforeigncurrencytransactionlossesof4.2 million in 2024[398]. - The Company recognized foreign currency transaction losses of 2.1 million for the year ended December 31, 2024, compared to gains of 1.2millionand1.2 million and 0.2 million for the years ended December 31, 2023 and 2022, respectively[463]. Legal Matters - A jury awarded the Company more than 31millionindamagesfromNanoString,consistingofapproximately31 million in damages from NanoString, consisting of approximately 25 million in lost profits and approximately 6millioninroyalties[518].−NanoStringfiledalawsuitagainsttheCompanyalleginginfringementofU.S.PatentNo.11,473,142,seekinginjunctivereliefandunspecifieddamages[523].−TheMunichRegionalCourtfoundthatNanoString′sCosMxproductsinfringeEPPatentNo.2794928B1,issuingapermanentinjunctioneffectiveJune1,2023[525].−TheCompanyfiledrequestsforpreliminaryinjunctionsintheUnifiedPatentCourtalleginginfringementofEPPatents928and782,withtheUPCgrantingtheinjunctionforEP782onSeptember19,2023[527].−ThetrialfortheNanoStringactionisscheduledforNovember2024,withdiscoverycurrentlyinprogress[523].−TheCompanyfiledalawsuitagainstVizgenalleginginfringementofmultipleU.S.Patents,withdiscoveryongoingandaMarkmanhearingheldonJanuary10,2024[530].StockandEquity−TheCompanyhasauthorizedtheissuanceof1,200,000,000sharesofcapitalstock,including1,000,000,000sharesofClassAcommonstock[540].−AsofDecember31,2024,thenumberofsharesofClassAcommonstockissuableundertheAmendedandRestated2012StockPlanwas1,842,338[542].−Thetotalintrinsicvalueofstockoptionsexercisedwas6 million in royalties[518]. - NanoString filed a lawsuit against the Company alleging infringement of U.S. Patent No. 11,473,142, seeking injunctive relief and unspecified damages[523]. - The Munich Regional Court found that NanoString's CosMx products infringe EP Patent No. 2794928B1, issuing a permanent injunction effective June 1, 2023[525]. - The Company filed requests for preliminary injunctions in the Unified Patent Court alleging infringement of EP Patents 928 and 782, with the UPC granting the injunction for EP782 on September 19, 2023[527]. - The trial for the NanoString action is scheduled for November 2024, with discovery currently in progress[523]. - The Company filed a lawsuit against Vizgen alleging infringement of multiple U.S. Patents, with discovery ongoing and a Markman hearing held on January 10, 2024[530]. Stock and Equity - The Company has authorized the issuance of 1,200,000,000 shares of capital stock, including 1,000,000,000 shares of Class A common stock[540]. - As of December 31, 2024, the number of shares of Class A common stock issuable under the Amended and Restated 2012 Stock Plan was 1,842,338[542]. - The total intrinsic value of stock options exercised was 12.3 million for the year ended December 31, 2024, compared to 78.0millionin2023and78.0 million in 2023 and 89.5 million in 2022[546]. - The total unrecognized stock-based compensation related to stock options as of December 31, 2024, was 19.5million,expectedtoberecognizedoverapproximatelytwoyears[546].−Thetotalunrecognizedstock−basedcompensationrelatedtorestrictedstockunits(RSUs)was19.5 million, expected to be recognized over approximately two years[546]. - The total unrecognized stock-based compensation related to restricted stock units (RSUs) was 194.4 million as of December 31, 2024, to be recognized over approximately three years[548]. - A total of 385,967 shares of Class A common stock were issued under the ESPP for the year ended December 31, 2024[559]. - The maximum number of shares available under the ESPP is 3,686,671, with 2,705,096 shares available for issuance as of December 31, 2024[559]. Tax Positions - The provision for income taxes for the year ended December 31, 2024, was 4.927million,adecreasefrom4.927 million, a decrease from 6.336 million in 2023[494]. - The company’s total deferred tax assets were 496.171millionasofDecember31,2024,withafullvaluationallowancemaintainedonU.S.netdeferredtaxassets[496].−Thetotalamountofunrecognizedgrosstaxbenefitswas496.171 million as of December 31, 2024, with a full valuation allowance maintained on U.S. net deferred tax assets[496]. - The total amount of unrecognized gross tax benefits was 50.0 million as of December 31, 2024, compared to 45.7millionin2023,with45.7 million in 2023, with 2.9 million and 2.7millionpotentiallyaffectingtheeffectivetaxrateifrecognized[500].CommitmentsandContingencies−TheCompanyhascommitmentstomakeatotalof2.7 million potentially affecting the effective tax rate if recognized[500]. Commitments and Contingencies - The Company has commitments to make a total of 13.2 million in purchases over the next year as of December 31, 2024[507]. - The Company has entered into non-cancelable arrangements for subscription software services totaling 19.6millionoverthenextfiveyears[508].−TheCompanyincurredoperatingleasecostsof19.6 million over the next five years[508]. - The Company incurred operating lease costs of 12.6 million, 13.6million,and13.6 million, and 13.1 million for the years ended December 31, 2024, 2023, and 2022, respectively[513]. - The total lease payments due under the Company's operating lease liabilities as of December 31, 2024, amount to $101.2 million[514].