10x Genomics, Inc. Q3 FY2025 earnings call

• Exceeded Q3 revenue guidance with $149M total revenue.
• Spatial consumables had double-digit Y/Y growth, driven by Xenium. Single-cell Chromium consumables reaction grew double-digit Y/Y.
• Ended Q3 with $482M balance sheet, strong cash position.
• Launched next-gen Chromium Flex, Xenium protein; partnered with Anthropic for easier data analysis; involved in translational research like PERIBLOOD clinical trial.
• Virtual cell efforts and large perturbation studies show momentum.

Total revenue for Q3 was $149M, exceeding guidance. Consumables: Total consumables revenue $127.9M, up 1%. Chromium consumables revenue $92.5M, down 4% (price impact); Spatial consumables revenue $35.4M, up 19% (driven by Xenium). Instruments: Total instrument revenue $12M, down 37% (price impact). Services: $8.1M, up 29% (Xenium service plans). Geography: Americas revenue $79.9M, down 9%; EMEA $41.6M, up 10%; APAC $27.5M, up 6% but down 14% sequentially (Q2 pull forward).

• Anticipate Q4 revenue $154M - $158M (5% QoQ growth).
• No year-end budget acceleration expected. Strong balance sheet provides flexibility for innovation and growth.

• Macro challenges, funding uncertainty, policy uncertainty impacting customer spending.
• Government shutdown impact on intramural NIH (small fraction of business).
• Pharma spending caution and uncertainty in early discovery research.

Q: Can you walk through Q4 revenue guidance breakdown by instruments vs consumables and impact of gov shutdown?

A: Anticipate slight uptick in instruments in Q4; gov shutdown factored in, NIH intramural is small.

Q: On spatial consumables and Flex v2 impact?

A: Spatial consumables had sequential step-up; Flex v2 offers flexibility, volume growth expected to offset price per sample decline.

Q: Thoughts on acquisition of instrument-free solution company?

A: Validates space, company's tech leadership and product performance expected to continue driving customer choice.

Q: China market performance?

A: Improved go-to-market, good demand, but cautious on long-term visibility.

Q: Xenium protein adoption and differentiation?

A: Positive early feedback, Xenium differentiates via tech, workflow, data; single-cell consumables show volume growth trends continuing.