10x Genomics, Inc.

Thank you. I would now like to turn the conference over to Cassie Carnot, Senior Director, Investor Relations and Strategic Finance. You may begin.

Thank you, and good afternoon, everyone. Earlier today, 10X Genomics released financial results for the fourth quarter and full year ended December 31, 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 Issue 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 Adam Page, our Chief Financial Officer. We will host a question and answer session after our prepared remarks. We ask 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. During today's call, I'll start with a brief overview of the product launches and foundational progress we made in 2024 and why we have a great setup to execute on our long-term strategy. Next, I will highlight our key priorities and focus areas for 2025. Then, Adam will provide a more detailed look at our financial results, business trends, and revenue guidance for the year. Adam will also touch on recent developments around the academic funding environment. As previously announced, we finished 2024 with total revenue of $611 million, down 1% compared to the prior year. On the background of an increasingly challenging macro environment, 2024 was a year of change for us. First, we launched major new products across all three of our platforms. While this entails extra effort from both our sales team and our customers to understand trial and transition over to the new portfolio, these launches have been met with a tremendous customer response. Second, within our single-cell portfolio, we introduced a number of new products that deliver lower price per cell and per sample. We believe there's great potential to grow single-cell revenue by reducing prices to increase volumes over time. And finally, we embarked on a major reorganization of our sales force to support the growing diversity of our products and customers and to allow us to scale into the future. While all of these changes entail some near-term challenges, we're confident that they better position us to capture the tremendous long-term opportunity we see ahead. I'll start with the product innovations we introduced in 2024. First, on our Chromium platform, last year was the biggest year of Chromium product launches in our history. We introduced a new microfluidic architecture, GemEx, and a slate of new products and capabilities. Once again, we raised the borrowing performance on data quality, on robustness, on scale. We rolled out powerful new capabilities to improve ease of use, sample prep, and data analysis. And we did it all with products at lower prices. We also established a new standard for scale and cost. Customers can now run million-cell experiments with a single chip and in a single run. They can also do so at a price point of one cent per cell with our GemEx Flex assay. And with our on-chip multiplexing products, customers can now get down to $600 per sample at any scale. We also launched Chromium XO, an instrument that provides a low-cost entry point so more researchers can access instrument-powered workflows and performance advantages of chromium single-cell analysis. Our goal is to democratize single-cell to drive it to ubiquity and routine use. This past year, we took major steps in this direction, both in product capabilities and pricing. The average price per chromium reaction decreased as we proceeded through 2024. This was expected as customers transitioned over to our lower-priced Gemex products. The drop was more pronounced in Q4, the first quarter in which Gemex Flex and on-chip multiplexing became available to customers. In conjunction with lower prices, we saw sequential increases in reactions sold throughout the year. While we expected we'll take time for volume growth to offset the lower prices and result in overall revenue growth, We're motivated by the early interest and adoption of our new assays. Turning to Spatial. 2024 was also a big year for our Spatial platforms, with product revenue growing 33% year over year as the portfolio continues to become a larger portion of our overall business. A significant contributor to the excitement for Spatial last year was the new products we launched, notably Visium HD and Xenium Prime 5K. Within our Visium platform, we launched Visium HD, which brings spatial discovery to a new level by enabling whole transcriptome spatial analysis at single-cell scale resolution. Critically enabled by our site-assist instrument, Visium HD increases the resolution of the Visium platform by over three orders of magnitude, all while leveraging the same robust and easy-to-use workflow that the Visium platform is known for. Since its launch, we've continued to see positive momentum from our customers. In the fourth quarter, customers continued the trend of ordering Visium in larger volumes, and new to Visium customers are now overwhelmingly opting for Visium HD. We also continue to execute on our robust Xenium R&D pipeline across our assays, applications, and software. We started the year by launching our widely requested multimodal cell segmentation kit. which leverages advances in assay chemistry and sophisticated machine learning algorithms to significantly improve the determination of cell boundaries. We also added new content, expanded sample compatibility, and drove major advances in data analysis. Finally, we launched Xenium Prime 5K, increasing Plex by an order of magnitude to 5,000 genes. Xenium Prime 5K features brand new chemistry and software to deliver excellent per-gene sensitivity, specificity, and spatial fidelity. The enthusiasm from customers for these launches only adds to our excitement about the Xenium platform and its long-term potential to be the most significant technology revolution since the arrival of NGS. We're encouraged by the robust utilization trends we're seeing from researchers and by reorders from customers purchasing additional Xenium systems as they experience firsthand the platform's benefits. In addition, there's been a growing number of publications and a coalescence of interest from researchers who are planning cohort studies on Xenium, further fueling our conviction in opportunity ahead. Both VisimHD and Xenium 5K have been met with exceptional feedback. In fact, one customer called the arrival of these technologies a watershed moment in spatial transcriptomics. revealing biological complexity at unprecedented resolution. We share our customers' excitement and believe in spatial potential in scientific discovery, translational work, and ultimately clinical applications. Alongside the product innovations we introduced in 2024, we also embarked on a major reorganization of our sales force in order to realize the full potential of our expanding product portfolio and evolving customer mix. As mentioned on our Q3 call, we created greater specialization by establishing our capital equipment, biopharma, and emerging account teams, all with the goal of improving focus and creating more defined roles with targeted incentives. We've made meaningful progress with our new sales model since its introduction. While we still have open roles to fill, we're gaining traction with hiring and onboarding. Our team is creating new opportunities at a faster pace, and we're bringing more consistent attention across customer accounts of all sizes in both biopharma and academia. Overall, we believe we're on track for our new sales model to be in full force by mid-year, as expected. As we cook up 2025, we're executing against several key priorities. First, finishing our commercial transformation and transitioning researchers to our new product portfolio. Our goal is to start taking advantage of the benefits that these foundational changes enable and deliver consistent execution quarter after quarter. Second, we're working to drive more volume and greater use of single-cell through lower prices. We firmly believe in the elasticity of demand of our products. That's why we're working to democratize access to our tools, delivering better products, better workflows, and better pricing so more customers can do more single-cell work more routinely. Third, we plan to leverage our new single-cell portfolio and the momentum we have in spatial to unlock exciting new growth opportunities, including in biopharma, translational studies, and large-scale single-cell projects. Let me share a bit more about each of these. We believe we have the opportunity to deliver outsized growth in biopharma. Today, this segment makes up around 15% to 20% of our total revenue, and we intend to expand biopharma to be half of our business in the future. In addition, there has been rapidly growing interest in using single-cell and spatial for translational cohort studies, and we believe it's still early days. As we look forward, we expect both the number and scale of such studies to continue to increase as researchers work to transform how we understand, diagnose, and treat disease. Another significant growth opportunity is in enabling large-scale single-cell studies to map out gene functions and construct AI models of biology. The convergence of wire technologies and AI has the potential to transform how research is done. Just last week, for example, the Chan Zuckerberg Initiative launched its unprecedented Billion Cells Project. We're extremely proud to partner with both CZI and Ultima Genomics on this landmark initiative to fuel rapid progress in AI model development in biology. And finally, as we move through 2025, we will continue our focus on managing costs, taking a disciplined approach to spending so we can maintain the strength of our balance sheet. When you take a step back, it is clear just how vast and powerful the opportunities for single-cell and spatial truly are. It seems not a week goes by without a new, exciting revelation being made using our technologies. Let me highlight just a few that have inspired and motivated our team recently. As featured in Nature last month, researchers relied on chromium, visium, and xenium to demonstrate how different immune cells emerge and are deployed to fight infection in the small intestine. In a recent Nature cancer paper focused on diagnostic markers in brain tumors, the authors demonstrated how spatial transcriptomics, previously restricted to research, now shows potential in routine diagnostics. And it's not just scientific journals taking note of the revolutionary potential of our technologies. Recently, The Atlantic described a goal of our work, the virtual self, as a holy grail of science. The potential of our tools to accelerate the master of biology and advance human health has never been more clear. That's why we do what we do. That's why we believe the opportunity in front of us is so large. With that, let me turn it over to Adam.