10x Genomics, Inc.

Good afternoon. Thank you for attending the 10X Genomics second quarter earnings call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I'd now like to pass the conference over to your host, Cassie Corneau, with Investor Relations and Strategic Finance at 10X Genomics. Thank you. You may proceed.

Thank you, and good afternoon, everyone. Earlier today, 10X Genomics released financial results the second quarter ended June 30, 2022. If you have not received this news release or if you would like to be added to the company's distribution list, please send an email to investors at 10xgenomics.com. An archived webcast of this call will be available on the investor tab of the company's website 10xgenomics.com for at least 45 days following this call. Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated, and you should not place undue reliance on forward-looking statements. Additional information regarding these risks, uncertainties, and factors that could cause results to differ appears in the press release 10X Genomics issued today and in the documents and reports filed by 10X Genomics from time to time with the Securities and Exchange Commission. 10X Genomics disclaims any intention or obligation to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise. Joining the call today are Serge Saxinov, our CEO and co-founder. Justin McInerney, our Chief Financial Officer, and Jim Wilber, our Chief Commercial Officer. With that, I will now turn the call over to Serge.

Thanks, Kathy. Good afternoon, and thank you for joining us. Revenue for the second quarter declined 1% year-over-year, in line with our pre-announcement in mid-July. Our results this quarter fell short of our expectations, as we navigated challenges in both the macro environment and with our executions. While some of these issues are behind us, we expect others will persist into the back half of the year. Based on these lingering headwinds in our first half results, we now expect full year revenue in the range of $500 million to $520 million, representing growth of 2% to 6% over the prior year. While our top line growth this year will be slower than our previous expectations, We firmly believe the underlying opportunity for our single-cell and spatial technologies is as strong as ever. On our call today, I will focus on what we're doing to ready our organization for our next phase of growth. Justin will provide more details on specific impacts to our second quarter revenue and our outlook for the year, as well as give additional color on steps we're taking to strengthen our financial profile. I'm proud of our track record of product innovation and the growth we've delivered over the past few years. We have progressed at a truly rapid pace amidst a very challenging environment. And with that incredible speed, we have quickly outgrown some of the processes and systems that got us here. And while we have some work ahead of us, we're building from a great foundation. For starters, our fundamentals are incredibly strong. We're focusing on the strengths that have always differentiated us. driving our innovation engine, providing a superior customer experience, and investing in the long term. In parallel, we will improve our execution and implement tools and processes so we can increase leverage and scale to the next level of growth. And finally, I continue to have full confidence in both our vision and our approach to achieving that vision. We have built leading platforms for single cell and spatial biology, and we're just getting started. As the only company to have the three fundamental technology approaches for single-cell and spatial biology under one roof, we're uniquely positioned to be the best partner to help researchers around the world interrogate, resolve, and master biology.