10x Genomics, Inc.

Thank you for standing by. My name is Mark and I will be your conference operator today. At this time, I would like to welcome everyone to the 10X Genomics third quarter 2024 earnings conference call. Today's call is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Cassie Kernel, Senior Director, Head of Investor Relations and Strategic Finance. Cassie, please go ahead.

Thank you, and good afternoon, everyone. Earlier today, 10X Genomics released financial results for the third quarter ended September 30, 2024. 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, and for his first earnings call with 10X, Adam Page, our new chief financial officer. We will host a question and answer session after our prepared remarks. We asked analysts to please keep to one question so that we may accommodate everyone in the queue. With that, I will now turn the call over to Serge.

Thanks, Cassie, and good afternoon, everyone. Revenue for the third quarter declined 1% year-over-year in line with our pre-announcement. Our results this quarter fell short of our expectations. This was primarily caused by more disruption than we had anticipated from the sales restructuring we implemented this quarter, and by cautious customer spending, particularly around capital purchases as we continue to navigate a challenging macro environment. While these changes in our commercial structure are necessary to drive our growth and strategy, We expect to see continued headwinds and also expect cautious customer spending to persist. We now expect full year revenue in the range of $595 million to $605 million. At the midpoint of the range, this implies flat fourth quarter revenue compared to our third quarter results and represents a 3% decline from the prior year.