10X Genomics Shares Surge Following Impressive Sales Report

10X Genomics Experiences Sales Growth

Shares of 10X Genomics (NASDAQ: TXG) have recently seen a significant increase, climbing 7% following the announcement of preliminary fourth-quarter sales that exceeded expert forecasts. The innovative life sciences company focuses on advancements in single-cell and spatial biology, reporting revenue estimates that highlight its progress.

Preliminary Q4 Revenue Highlights

The company's unaudited results reveal an estimated revenue of around $165.0 million for the quarter ending on December 31, 2024. This marks a sequential rise of 9%, although it reflects a 10% downturn compared to the same quarter from the previous year. Analysts had predicted a consensus revenue of $153 million, making the actual performance particularly noteworthy.

Instrument and Consumable Sales Performance

In the breakdown of revenue sources, instrument sales, which include innovative products like Chromium and Spatial instruments, demonstrated substantial growth. They experienced a sequential increase of 28%, totaling $24.4 million. However, when viewed year-over-year, these sales represent a 37% decline, a factor the company is addressing. The consumables category contributed significantly as well, generating approximately $133.5 million in revenue. This segment grew by 6% sequentially but showed a drop of 5% compared to last year. There was better news regarding services revenue, which grew by an impressive 12% sequentially and 35% year-over-year, bringing in $7.1 million.

Annual Revenue Overview for 2024

In looking at the full year of 2024, 10X Genomics reported a slight decrease in total revenue, which fell by 1% to $610.8 million. Within this, revenue from instruments dropped by 25%, while consumables saw a modest gain of 3%. Notably, services revenue showcased a remarkable increase of 57% compared to the previous year, indicating a shift in revenue sources. Furthermore, the company proudly announced that over 7,000 instruments have been sold cumulatively by the year's end, exemplifying its commitment to innovation and growth.

CEO Optimism for Future

Serge Saxonov, the Co-founder and CEO of 10X Genomics, shared his insights regarding the company’s performance, emphasizing the team's hard work and the solid sequential growth achieved over the last quarter. He stated, "Our team delivered solid sequential revenue growth over last quarter. We are confident the work we've done throughout 2024 sets us up well for the future and better positions us to deliver on the full promise of single-cell and spatial biology."

Analyst Insights and Investor Reactions

Market analysts have also weighed in on the recent figures. TD Cowen analyst, Dan Brennan, commented on the company's mixed share performance, indicating a 74% drop for 2024 yet a YTD increase of 9%. He noted, "The beat should be well-received, but we expect '25 growth to still be challenged & will look for further color this week."

Investor sentiment seems to align positively with the preliminary sales data, indicating that, despite the year-over-year revenue decline, TXG shares are on an upward trajectory. As the company prepares to present detailed insights into the fourth quarter and outlines initial guidance for 2025, expectations are high for further positive developments.

Frequently Asked Questions

What caused the surge in 10X Genomics shares?

The surge was primarily driven by the company's preliminary fourth-quarter sales that exceeded analyst expectations.

How much revenue did 10X Genomics report for Q4?

The company reported an estimated revenue of approximately $165.0 million for the fourth quarter of 2024.

What growth did the services revenue see?

Services revenue grew by 12% sequentially and 35% year-over-year, totaling $7.1 million.

What insights did the CEO share regarding future performance?

The CEO expressed confidence in the company's future performance, emphasizing the foundational work done throughout 2024.

What are analysts predicting for 2025 growth?

analysts anticipate that growth will still be challenged in 2025 but are looking for more clarity in upcoming presentations.

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