10x Genomics (TXG): Q4 Beats, Full-Year Guidance Misses

Key Q4 Metrics:

* Revenue: $165 million, 3.5% above analyst estimates
* EPS (GAAP): -$0.40, 34.4% below consensus
* Full-year revenue guidance: $620 million, 1.6% below estimates

Company Overview:

10x Genomics (NASDAQ: TXG) develops single-cell and spatial genomics solutions for researchers to analyze biological systems.

Industry Overview:

The genomics industry offers technology for personalized medicine, drug discovery, and disease research. High barriers to entry exist due to proprietary technology, but innovation is crucial.

Financial Performance:

* 5-year annualized revenue growth: 20%
* 2-year annualized revenue growth: 8.8%
* Consumables revenue (recurring orders): 6.9% year-over-year growth in the last two years
* Operating margin: -30.2% in Q4, indicative of ongoing profitability challenges
* EPS losses have deepened over the last five years, with a 2.4% annual decline

Key Takeaways:

* 10x Genomics reported a Q4 revenue beat but missed EPS estimates.
* Full-year guidance fell short of expectations.
* While the company's revenue growth rate is impressive, its profitability concerns require attention.

Analyst Outlook:

Sell-side analysts anticipate 3.1% revenue growth over the next 12 months, indicating some demand challenges.

Investment Opportunity:

The stock's 4.1% decline after earnings indicates investor concerns. Investors should consider the company's valuation, business qualities, and recent earnings before making any decisions.