Investing.com -- Shares of 10X Genomics (NASDAQ:TXG) climbed 7% as the company reported preliminary fourth-quarter sales that surpassed analyst expectations. The life sciences company, known for its work in single cell and spatial biology, revealed unaudited financial results indicating a revenue of approximately $165.0 million for the quarter ended December 31, 2024. This figure represents a 9% sequential increase and a 10% decrease compared to the same quarter last year.
Analysts had anticipated a consensus revenue of $153 million for the fourth quarter. The company's instrument sales, which include Chromium and Spatial instruments, showed a 28% sequential growth to $24.4 million, despite a 37% decline from the previous year. Consumables, another significant revenue segment for 10X Genomics, brought in approximately $133.5 million, marking a 6% sequential increase but a 5% decrease YoY. Services revenue, on the other hand, grew by 12% sequentially and by a notable 35% YoY to $7.1 million.
For the full year of 2024, 10X Genomics reported a slight 1% decline in revenue to $610.8 million. Instrument revenue fell by 25% from the prior year, while consumables revenue increased by 3%. Services revenue saw a significant 57% growth compared to the previous year. The company also highlighted the increased cumulative instruments sold, totaling over 7,000 units by the end of 2024.
Serge Saxonov, Co-founder and CEO of 10X Genomics, expressed confidence in the company's performance, stating, "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."
TD Cowen analyst Dan Brennan commented on the company's performance, stating, "Given the weak share performance (-74% '24, -36% 4Q, but YTD +9%), the beat should be well-received. That said, we expect '25 growth to still be challenged & will look for further color this week."
Investors appear to have responded positively to the preliminary sales data, as TXG shares have seen a rise despite the company's YoY revenue decrease. Additional details on the fourth quarter and initial guidance for 2025 are expected to be discussed during 10X Genomics' presentation later this week and on the company's earnings call next month.
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