10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________

FORM 10-Q

_____________________

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission File Number: 001-39035

10x Genomics, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	45-5614458
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
6230 Stoneridge Mall Road
Pleasanton, California	94588
(Address of principle executive offices)	(Zip Code)

(925) 401-7300

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

_____________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Class A common stock, par value $0.00001 per share	TXG	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐   No  ☒

As of July 31, 2023, the registrant had 103,361,382 shares of Class A common stock, $0.00001 par value per share, outstanding and 14,056,833 shares of Class B common stock, $0.00001 par value per share, outstanding.

Table of Contents

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Comprehensive Loss	5
	Condensed Consolidated Statements of Stockholders’ Equity	6
	Condensed Consolidated Statements of Cash Flows	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	25
Item 4.	Controls and Procedures	25
PART II.	OTHER INFORMATION	26
Item 1.	Legal Proceedings	26
Item 1A.	Risk Factors	26
Item 5.	Other Information	26
Item 6.	Exhibits	27
	Signatures	28

10x Genomics, Inc.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the “safe harbor” created by those sections. All statements included in this Quarterly Report, other than statements of historical facts, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” "might," “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “would,” “likely,” “seek” or “continue” or the negatives of these terms or variations of them or similar terminology, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include statements regarding 10x Genomics, Inc.’s expectations regarding our plans, objectives, goals, beliefs, business strategies, results of operations, financial position, sufficiency of our capital resources, business outlook, future events, business conditions, key factors affecting our performance, gross margin trends including the potential impacts of changes in product mix, average selling prices of our products and opportunities for cost reductions, expected future investments including anticipated capital expenditures, anticipated size of market opportunities and our ability to capture them, expected uses, performance and benefits of our products and services, business trends and the impact of macroeconomic conditions, including inflation and rising interest rates. These statements are based on management’s current expectations, forecasts, beliefs, assumptions and information currently available to management, and actual outcomes and results could differ materially from these statements due to a number of factors.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors, including those described in the section titled “Risk Factors” in this Quarterly Report and Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022 (“Annual Report”). Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. For a more detailed discussion of the risks, uncertainties and other factors that could cause actual results to differ, please refer to the “Risk Factors” in our Annual Report and this Quarterly Report, as such risk factors may be updated from time to time in our periodic filings with the U.S. Securities and Exchange Commission ("SEC"). Our periodic filings are accessible on the SEC’s website at www.sec.gov.

The forward-looking statements made in this Quarterly Report relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report to reflect events or circumstances after the date of this Quarterly Report or to reflect new information or the occurrence of unanticipated events, except as required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot provide any assurance that these expectations will prove to be correct nor can we guarantee that the future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or occur and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make. Further, our forward-looking statements may not accurately or fully reflect the potential impact of adverse geopolitical and macroeconomic events, international economic, political, legal compliance, social and business factors such as inflation and supply chain interruptions may have on our business, financial condition, results of operations and cash flows.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

Unless otherwise stated or the context otherwise indicates, references to “we,” “us,” “our,” “the Company,” “10x” and similar references refer to 10x Genomics, Inc. and its subsidiaries.

1

Channels for Disclosure of Information

Investors and others should note that we may announce material information to the public through filings with the SEC, our website (https://www.10xGenomics.com), press releases, public conference calls, public webcasts and our social media accounts, (https://twitter.com/10xGenomics, https://www.facebook.com/10xGenomics and

https://www.linkedin.com/company/10xgenomics). We use these channels to communicate with our customers and the public about the Company, our products, our services and other matters. We encourage our investors, the media and others to review the information disclosed through such channels as such information could be deemed to be material information. The information on such channels, including on our website and our social media accounts, is not incorporated by reference in this Quarterly Report and shall not be deemed to be incorporated by reference into any other filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such a filing. Please note that this list of disclosure channels may be updated from time to time.

2

10x Genomics, Inc.

PART I—FINANCIAL INFORMATION

Item 1.    Financial Statements.

10x Genomics, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

	June 30, 2023		December 31, 2022
	(Unaudited)		(Note 1)
Assets
Current assets:
Cash and cash equivalents	$	325,879	$	219,746
Marketable securities	65,506		210,238
Restricted cash	1,500		2,633
Accounts receivable, net	87,685		104,211
Inventory	83,687		81,629
Prepaid expenses and other current assets	18,683		16,578
Total current assets	582,940		635,035
Property and equipment, net	284,913		289,328
Restricted cash	3,474		4,974
Operating lease right-of-use assets	71,049		69,882
Goodwill	4,511		4,511
Intangible assets, net	22,290		22,858
Other noncurrent assets	20,461		2,392
Total assets	$	989,638	$	1,028,980
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	23,124	$	21,599
Accrued compensation and related benefits	22,372		32,675
Accrued expenses and other current liabilities	34,088		59,779
Deferred revenue	9,217		7,867
Operating lease liabilities	9,286		9,037
Total current liabilities	98,087		130,957
Operating lease liabilities, noncurrent	90,331		86,139
Other noncurrent liabilities	7,919		6,141
Total liabilities	196,337		223,237
Commitments and contingencies (Note 4)
Stockholders’ equity:
Preferred stock	—		—
Common stock	2		2
Additional paid-in capital	1,936,750		1,839,397
Accumulated deficit	(1,142,482)		(1,029,321)
Accumulated other comprehensive loss	(969)		(4,335)
Total stockholders’ equity	793,301		805,743
Total liabilities and stockholders’ equity	$	989,638	$	1,028,980

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

10x Genomics, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except share and per share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenue	$	146,819	$	114,609	$	281,104	$	229,105
Cost of revenue	47,207		27,704		83,102		53,182
Gross profit	99,612		86,905		198,002		175,923
Operating expenses:
Research and development	71,460		70,685		138,558		134,763
Selling, general and administrative	91,510		79,337		174,790		146,012
Total operating expenses	162,970		150,022		313,348		280,775
Loss from operations	(63,358)		(63,117)		(115,346)		(104,852)
Other income (expense):
Interest income	4,100		1,238		7,969		1,807
Interest expense	(5)		(109)		(24)		(237)
Other expense, net	(1,504)		(1,843)		(3,020)		(2,243)
Total other income (expense)	2,591		(714)		4,925		(673)
Loss before provision for income taxes	(60,767)		(63,831)		(110,421)		(105,525)
Provision for income taxes	1,647		627		2,740		1,346
Net loss	$	(62,414)	$	(64,458)	$	(113,161)	$	(106,871)
Net loss per share, basic and diluted	$	(0.53)	$	(0.57)	$	(0.97)	$	(0.94)
Weighted-average shares of common stock used in computing net loss per share, basic and diluted	116,707,672		113,574,757		116,166,776		113,272,158

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

10x Genomics, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(Unaudited)

(In thousands)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net loss	$	(62,414)	$	(64,458)	$	(113,161)	$	(106,871)
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on available-for-sale marketable securities	379		(1,326)		1,496		(3,729)
Realized loss on available-for-sale marketable securities reclassified into net loss	—		—		1,715		—
Foreign currency translation adjustment	131		(196)		155		(258)
Other comprehensive income (loss), net of tax	510		(1,522)		3,366		(3,987)
Comprehensive loss	$	(61,904)	$	(65,980)	$	(109,795)	$	(110,858)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

10x Genomics, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

(In thousands, except share data)

	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balance as of December 31, 2022	115,195,009	$	2	$	1,839,397	$	(1,029,321)	$	(4,335)	$	805,743
Issuance of Class A common stock related to equity awards	978,333	—		2,400		—		—		2,400
Stock-based compensation	—	—		42,133		—		—		42,133
Net loss	—	—		—		(50,747)		—		(50,747)
Other comprehensive income	—	—		—		—		2,856		2,856
Balance as of March 31, 2023	116,173,342	2		1,883,930		(1,080,068)		(1,479)		802,385
Issuance of Class A common stock related to equity awards	1,150,093	—		7,096		—		—		7,096
Stock-based compensation	—	—		45,724		—		—		45,724
Net loss	—	—		—		(62,414)		—		(62,414)
Other comprehensive income	—	—		—				510		510
Balance as of June 30, 2023	117,323,435	$	2	$	1,936,750	$	(1,142,482)	$	(969)	$	793,301

	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balance as of December 31, 2021	112,514,977	$	2	$	1,680,865	$	(863,321)	$	22	$	817,568
Issuance of Class A common stock related to equity awards	761,373	—		7,826		—		—		7,826
Vesting of shares subject to repurchase, including early exercised options	—	—		32		—		—		32
Stock-based compensation	—	—		26,137		—		—		26,137
Net loss	—	—		—		(42,413)		—		(42,413)
Other comprehensive loss	—	—		—		—		(2,465)		(2,465)
Balance as of March 31, 2022	113,276,350	2		1,714,860		(905,734)		(2,443)		806,685
Issuance of Class A common stock related to equity awards	610,447	—		6,360		—		—		6,360
Vesting of shares subject to repurchase, including early exercised options	—	—		32		—		—		32
Stock-based compensation	—	—		36,419		—		—		36,419
Net loss	—	—		—		(64,458)		—		(64,458)
Other comprehensive loss	—	—		—		—		(1,522)		(1,522)
Balance as of June 30, 2022	113,886,797	$	2	$	1,757,671	$	(970,192)	$	(3,965)	$	783,516

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

10x Genomics, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

	Six Months Ended June 30,
	2023		2022
Operating activities:
Net loss	$	(113,161)	$	(106,871)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	87,797		62,360
Depreciation and amortization	16,423		12,691
Amortization of right-of-use assets	4,070		3,728
Lease impairment charges	2,785		—
Realized loss on marketable securities	1,715		—
Other	613		460
Changes in operating assets and liabilities:
Accounts receivable	16,526		9,025
Inventory	(2,311)		(11,101)
Prepaid expenses and other current assets	(2,123)		(5,348)
Other noncurrent assets	(18,073)		115
Accounts payable	1,314		10,262
Accrued compensation and other related benefits	(10,313)		(8,007)
Deferred revenue	2,885		1,667
Accrued expenses and other current liabilities	494		(4,922)
Operating lease liability	(4,540)		(2,181)
Other noncurrent liabilities	248		357
Net cash used in operating activities	(15,651)		(37,765)
Investing activities:
Purchases of property and equipment	(29,915)		(55,355)
Purchase of intangible assets	(723)		—
Purchase of marketable securities	—		(271,547)
Proceeds from sales of marketable securities	94,947		32,693
Proceeds from maturities of marketable securities	51,185		9,124
Net cash provided by (used in) investing activities	115,494		(285,085)
Financing activities:
Payments on financing arrangement	(5,814)		(5,409)
Issuance of common stock from exercise of stock options and employee stock purchase plan purchases	9,496		14,186
Net cash provided by financing activities	3,682		8,777
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(25)		(210)
Net increase (decrease) in cash, cash equivalents, and restricted cash	103,500		(314,283)
Cash, cash equivalents, and restricted cash at beginning of period	227,353		596,073
Cash, cash equivalents, and restricted cash at end of period	$	330,853	$	281,790
Supplemental disclosures of cash flow information:
Cash paid for interest	$	436	$	841
Cash paid for taxes	$	3,852	$	3,319
Noncash investing and financing activities:
Purchases of property and equipment included in accounts payable and accrued expenses and other current liabilities	$	9,317	$	26,679
Right-of-use assets obtained in exchange for new operating lease liabilities	$	6,893	$	16,562
Contingent consideration payable from business acquisition	$	—	$	1,500

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

7

10x Genomics, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

o

1.    Description of Business and Basis of Presentation

Organization and Description of Business

10x Genomics, Inc. (the “Company”) is a life sciences technology company focused on building innovative products and solutions to interrogate, understand and master biological systems at resolution and scale that matches the complexity of biology. The Company’s integrated solutions include the Company’s Chromium X Series and Chromium Connect instruments, which the Company refers to as “Chromium instruments,” the Company's Visium CytAssist and Xenium Analyzer instruments, which the Company refers to as “Spatial instruments,” and the Company’s proprietary microfluidic chips, slides, reagents and other consumables for the Company's Chromium, Visium and Xenium solutions, which the Company refers to as “consumables.” The Company bundles its software with these products to guide customers through the workflow, from sample preparation through analysis and visualization. The Company was incorporated in the state of Delaware in July 2012 and began commercial and manufacturing operations and selling its instruments and consumables in 2015. The Company is headquartered in Pleasanton, California and has wholly-owned subsidiaries in Asia, Europe and North America.

Basis of Presentation

The accompanying condensed consolidated financial statements, which include the Company’s accounts and the accounts of its wholly-owned subsidiaries, are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The condensed consolidated balance sheets at December 31, 2022 have been derived from the audited consolidated financial statements of the Company at that date. Certain information and footnote disclosures typically included in the Company’s audited consolidated financial statements have been condensed or omitted. The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the Company’s financial position, results of operations, comprehensive loss and cash flows for the periods presented, but are not necessarily indicative of the results of operations to be anticipated for any future annual or interim period. All intercompany transactions and balances have been eliminated. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

The accompanying unaudited condensed consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2022 included in the Company's Annual Report on Form 10-K filed with the SEC on February 16, 2023 (our "Annual Report").

2.    Summary of Significant Accounting Policies

There were no material changes in the Company's significant accounting policies during the six months ended June 30, 2023. See Note 2 – Summary of Significant Accounting Policies to the consolidated financial statements included in the Company's Annual Report for information regarding the Company's significant accounting policies.

Revenue Recognition

The Company generates revenue from sales of products and services, and its products consist of instruments and consumables. Revenue from product sales is recognized when control of the product is transferred, which is generally upon shipment to the customer. Instrument service agreements, which relate to extended warranties, are typically entered into for one-year terms, following the expiration of the standard one-year warranty period. Revenue for extended warranties is recognized ratably over the term of the extended warranty period as a stand ready performance obligation. Revenue is recorded net of discounts, distributor commissions and sales taxes collected on behalf of governmental authorities. Customers are invoiced generally upon shipment, or upon order for services, and payment is typically due within 45 days. Cash received from customers in advance of product shipment or providing services is recorded as a contract liability. The Company’s contracts with its customers generally do not include rights of return or a significant financing component.

The Company regularly enters into contracts that include various combinations of products and services which are generally distinct and accounted for as separate performance obligations. The transaction price is allocated to each performance obligation in proportion to its standalone selling price. The Company determines standalone selling price using average selling

8

10x Genomics, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

prices with consideration of current market conditions. If the product or service has no history of sales or if the sales volume is not sufficient, the Company relies upon prices set by management, adjusted for applicable discounts.

Net Loss Per Share

Net loss per share is computed using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights and sharing of losses, of the Class A common stock and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of losses are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis.

Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period, adjusted for outstanding shares that are subject to repurchase.

For the calculation of diluted net loss per share, basic net loss per share is adjusted by the effect of dilutive securities including awards under the Company’s equity compensation plans. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding. For periods in which the Company reports net losses, diluted net loss per share is the same as basic net loss per share because potentially dilutive shares of common stock are not assumed to have been issued if their effect is anti-dilutive.

3.    Other Financial Statement Information

Available-for-sale Securities

Available-for-sale securities consisted of the following (in thousands):

	June 30, 2023								December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Fair Value Measurement
Cash equivalents:
Money market funds	$	315,407	$	—	$	—	$	315,407	$	163,184	$	—	$	—	$	163,184	Level 1
Marketable securities:
Corporate debt securities	20,209		—		(234)		19,975		153,794		4		(2,768)		151,030		Level 2
Government debt securities	42,611		—		(623)		41,988		54,136		—		(1,247)		52,889		Level 2
Asset-backed securities	3,591		—		(48)		3,543		6,424		—		(105)		6,319		Level 2
Total available-for-sale securities	$	381,818	$	—	$	(905)	$	380,913	$	377,538	$	4	$	(4,120)	$	373,422

The contractual maturities of marketable securities as of June 30, 2023 were as follows (in thousands):

	Fair Value
Due in one year or less	$	59,716
Due after one year to five years	5,790
Total marketable securities	$	65,506

The Company incurred no material gross realized gains or losses from available-for-sales debt securities during the three months ended June 30, 2023 and three and six months ended June 30, 2022. During the six months ended June 30, 2023, the Company incurred gross realized losses of $1.7 million and no gross realized gains from the sale of available-for-sales debt

9

10x Genomics, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

securities. Realized gains (losses) on the sale of marketable securities are recorded in “Other expense, net” in the condensed consolidated statements of operations.

The available-for-sale debt securities are subject to a periodic impairment review. For investments in an unrealized loss position, the Company determines whether a credit loss exists by considering information about the collectability of the instrument, current market conditions and reasonable and supportable forecasts of economic conditions. The Company recognizes an allowance for credit losses, up to the amount of the unrealized loss when appropriate, and writes down the amortized cost basis of the investment if it is more likely than not that the Company will be required or will intend to sell the investment before recovery of its amortized cost basis. Allowances for credit losses and write-downs are recognized in “Other expense, net,” and unrealized losses not related to credit losses are recognized in “Accumulated other comprehensive loss.” There are no allowances for credit losses for the periods presented. As of June 30, 2023, the gross unrealized losses on available-for-sale securities are related to market interest rate changes and not attributable to credit.

Inventory

Inventory was comprised of the following (in thousands):

	June 30, 2023		December 31, 2022
Purchased materials	$	37,942	$	34,497
Work in progress	24,098		24,650
Finished goods	21,647		22,482
Inventory	$	83,687	$	81,629

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	June 30, 2023		December 31, 2022
Land	$	36,801	$	36,780
Building	137,167		—
Laboratory equipment and machinery	63,180		54,658
Computer equipment and software	15,862		12,565
Furniture and fixtures	10,847		9,642
Leasehold improvements	92,783		91,518
Construction in progress	13,801		152,995
Total property and equipment	370,441		358,158
Less: accumulated depreciation and amortization	(85,528)		(68,830)
Property and equipment, net	$	284,913	$	289,328

10

10x Genomics, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Accrued Compensation and Related Benefits

Accrued compensation and related benefits were comprised of the following as of the dates indicated (in thousands):

	June 30, 2023		December 31, 2022
Accrued payroll and related costs	$	2,965	$	2,052
Accrued bonus	10,770		17,081
Accrued commissions	5,286		5,143
Accrued acquisition-related compensation	—		5,470
Other	3,351		2,929
Accrued compensation and related benefits	$	22,372	$	32,675

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities were comprised of the following as of the dates indicated (in thousands):

	June 30, 2023		December 31, 2022
Accrued legal and related costs	$	3,884	$	3,102
Accrued license fee	—		6,231
Accrued royalties for licensed technologies	4,942		4,707
Accrued property and equipment	9,094		26,750
Accrued professional services	6,579		5,180
Product warranties	3,941		3,023
Taxes payable	2,323		4,079
Other	3,325		6,707
Accrued expenses and other current liabilities	$	34,088	$	59,779

Product Warranties

Changes in the reserve for product warranties were as follows for the periods indicated (in thousands):

	Six Months Ended June 30,
	2023		2022
Beginning of period	$	3,023	$	994
Amounts charged to cost of revenue	3,833		1,983
Repairs and replacements	(2,915)		(1,547)
End of period	$	3,941	$	1,430

11

10x Genomics, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Revenue and Deferred Revenue

As of June 30, 2023, the aggregate amount of remaining performance obligations related to separately sold extended warranty service agreements, or allocated amounts for extended warranty service agreements bundled with sales of instruments, was $13.9 million, of which approximately $9.2 million is expected to be recognized to revenue in the next 12 months, with the remainder thereafter. The contract liabilities of $13.9 million and $11.0 million as of June 30, 2023 and December 31, 2022, respectively, consisted of deferred revenue related to extended warranty service agreements.

The following revenue recognized for the periods were included in contract liabilities as of December 31, 2022 and December 31, 2021, respectively (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Deferred revenue recognized	$	1,856	$	1,294	$	3,963	$	2,897

The following table represents revenue by source for the periods indicated (in thousands). Spatial products include the Company's Visium and Xenium products:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Instruments
Chromium	$	12,859	$	14,047	$	24,485	$	28,373
Spatial	18,096		689		25,646		792
Total instruments revenue	30,955		14,736		50,131		29,165
Consumables
Chromium	100,794		91,048		201,890		182,327
Spatial	11,694		6,886		22,976		13,557
Total consumables revenue	112,488		97,934		224,866		195,884
Services	3,376		1,939		6,107		4,056
Total revenue	$	146,819	$	114,609	$	281,104	$	229,105

The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Americas
United States	$	88,394	$	69,373	$	164,675	$	126,814
Americas (excluding United States)	3,149		1,515		5,664		3,761
Total Americas	91,543		70,888		170,339		130,575
Europe, Middle East and Africa	31,246		25,608		59,668		46,140
Asia-Pacific
China¹	12,755		9,984		26,786		31,766
Asia-Pacific (excluding China)	11,275		8,129		24,311		20,624
Total Asia-Pacific	24,030		18,113		51,097		52,390
Total Revenue	$	146,819	$	114,609	$	281,104	$	229,105

1 Includes Hong Kong effective from the first quarter of 2023. Comparative periods have been adjusted for this inclusion.

12

10x Genomics, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

4.    Commitments and Contingencies

Lease Agreements

The Company leases office, laboratory, manufacturing and distribution space in various locations worldwide. On November 6, 2020, the Company entered into a Master Lease Agreement ("MLA"), consisting of various lease components, to lease additional office building space near the Company's Pleasanton, California headquarters. All of the lease components related to the MLA have commenced and the MLA is expected to terminate on June 30, 2033.

Future net lease payments related to the Company’s operating lease liabilities as of June 30, 2023 is as follows (in thousands):

	Operating Leases
2023 (excluding the six months ended June 30, 2023)	$	6,656
2024	16,354
2025	15,259
2026	16,014
2027	15,436
Thereafter	56,390
Total lease payments	$	126,109
Less: imputed interest	(26,492)
Present value of operating lease liabilities	$	99,617
Operating lease liabilities, current	$	9,286
Operating lease liabilities, noncurrent	90,331
Total operating lease liabilities	$	99,617

The following table summarizes additional information related to operating leases as of June 30, 2023:

	June 30, 2023		December 31, 2022
Weighted-average remaining lease term	7.9 years		8.1 years
Weighted-average discount rate	5.8	%	5.5	%

During the three months ended June 30, 2023, the Company made the decision to vacate some of its leased office space for the remaining lease term through 2025 and entered into an agreement to sublease certain portions of the vacated office space. In connection with this decision and based upon the expected cash flow from the sublease, the Company recognized $2.8 million of impairment loss associated with these long-lived assets within selling, general and administrative expenses on the condensed consolidated statement of operations during the three and six months ended June 30, 2023.

Litigation

The Company is regularly subject to lawsuits, claims, arbitration proceedings, administrative actions and other legal and regulatory proceedings involving intellectual property disputes, commercial disputes, competition and other matters, and the Company may become subject to additional types of lawsuits, claims, arbitration proceedings, administrative actions, government investigations and legal and regulatory proceedings in the future.

NanoString

On May 6, 2021, the Company filed suit against NanoString Technologies, Inc. ("NanoString") in the U.S. District Court for the District of Delaware alleging that NanoString's GeoMx Digital Spatial Profiler and associated instruments and reagents infringe U.S. Patent Nos. 10,472,669, 10,662,467, 10,961,566, 10,983,113 and 10,996,219 (the "GeoMx Action"). On May 19, 2021, the Company filed an amended complaint additionally alleging that the GeoMx products infringe U.S. Patent Nos. 11,001,878 and 11,008,607. On May 4, 2022, the Company filed an amended complaint in the GeoMx Action additionally

13

10x Genomics, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

alleging that the GeoMx products infringe U.S. Patent No. 11,293,917 and withdrawing the Company's claim of infringement of U.S. Patent No. 10,662,467. The Company seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to NanoString's making, using, selling, offering to sell, exporting and/or importing in the United States the GeoMx Digital Spatial Profiler and associated instruments and reagents. NanoString filed its answer to the GeoMx Action on May 18, 2022. A Markman hearing was held on February 17, 2023 and the Court issued its claim construction order on February 28, 2023. Trial is scheduled for November 2023.

On February 28, 2022, the Company filed a second suit against NanoString in the U.S. District Court for the District of Delaware alleging that NanoString's CosMx Spatial Molecular Imager and associated instruments, reagents and services infringe U.S. Patent Nos. 10,227,639 and 11,021,737 (the "CosMx Action"). On May 12, 2022, the Company filed an amended complaint in the CosMx Action additionally alleging that the CosMx products infringe U.S. Patent Nos. 11,293,051, 11,293,052 and 11,293,054. NanoString filed its answer to the CosMx Action on May 26, 2022. On March 1, 2023, the Company filed a second amended complaint additionally alleging that the CosMx products infringe U.S. Patent No. 11,542,554. The Company seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to NanoString's making, using, selling, offering to sell, exporting and/or importing in the United States the CosMx Spatial Molecular Imager and associated instruments, reagents and services. NanoString filed its answer to the second amended complaint on March 22, 2023. Discovery is in progress. A Markman hearing is scheduled for December 2023 and trial is scheduled for September 2024.

On August 16, 2022, NanoString filed a counterclaim in the CosMx Action alleging that the Company's Visium products infringe U.S. Patent No. 11,377,689. The Company filed its answer to NanoString's counterclaim in the CosMx Action on August 30, 2022. On November 23, 2022, the Company moved to sever claims relating to NanoString’s assertion of U.S. Patent No. 11,377,689 and consolidate those claims with the patent case NanoString filed against the Company on October 20, 2022 (discussed below). On January 24, 2023, the Court granted the Company's motion.

On April 27, 2023, NanoString filed a motion in the CosMx Action to add antitrust, unfair competition and contract counterclaims. NanoString seeks, among other relief, injunctive relief (including that the Company grant NanoString a license to the patents that the Company asserted against NanoString in the CosMx Action) and unspecified damages (including attorney's fees). On July 10, 2023, the Court denied NanoString’s motion to add a contract counterclaim but otherwise granted the motion. On May 24, 2023, NanoString filed a motion to bifurcate its amended counterclaims and a motion for expedited discovery. On June 6, 2023, the Court denied NanoString’s motion to bifurcate and granted its motion for expedited discovery. The Company believes NanoString’s claims are meritless and intends to vigorously defend itself.

On October 20, 2022, NanoString filed suit against the Company in the U.S. District Court for the District of Delaware alleging that the Company's Visium products infringe U.S. Patent No. 11,473,142, a continuation of U.S. Patent No. 11,377,689 (the "NanoString Action"). NanoString seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to the Company's making, using, selling, offering to sell, exporting and/or importing in the United States Visium products and associated instruments, reagents and services. On January 24, 2023, the Court severed NanoString’s claims with respect to U.S. Patent No. 11,377,689 from the CosMx Action and consolidated those claims with this action. Discovery is in progress. NanoString filed an amended complaint on January 27, 2023. The Company filed an answer to the NanoString Action on February 10, 2023. A Markman hearing is scheduled for December 2023 and trial is scheduled for December 2024. The Company believes NanoString's claims in the NanoString Action are meritless and intends to vigorously defend itself.

On March 9, 2022, the Company filed suit in the Munich Regional Court in Germany alleging that NanoString's CosMx Spatial Molecular Imager and associated instruments, reagents and services infringe EP Patent No. 2794928B1 (the "EP928 Patent") (the "Germany CosMx Action"). A hearing on infringement was held on March 23, 2023. On May 17, 2023, the Munich Regional Court found that the CosMx products infringe the EP928 patent and issued a permanent injunction requiring NanoString to stop selling and supplying CosMx instruments and reagents for RNA detection in Germany. The injunction took effect on June 1, 2023. On May 25, 2023, NanoString filed an appeal of the German CosMx Action in the Munich Higher Regional Court. A hearing date has not yet been set for this appeal. On July 29, 2022, NanoString filed a nullity action with the German Federal Patent Court challenging the validity of the EP928 Patent. On February 10, 2023, the Federal Patent Court issued a preliminary opinion upholding the validity of certain claims of the EP928 Patent directed to in situ analysis. A hearing on validity is scheduled before the Federal Patent Court in May 2024 and a decision is expected around the end of 2024.

On June 1, 2023, the Company filed suit in the Munich Local Division of the Unified Patent Court (“UPC”) alleging that NanoString's CosMx Spatial Molecular Imager and associated instruments, reagents and services infringe the EP928 patent and EP Patent No. 4108782 (the “EP782 patent”) (the “UPC CosMx Actions”). In the UPC CosMx Actions, the Company seeks

14

10x Genomics, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

preliminary injunctions with respect to NanoString’s CosMx instruments and reagents for RNA detection in the jurisdictions of the UPC in which the EP928 and EP782 patents are in effect. Preliminary injunction hearings are scheduled for the EP928 and EP782 patents on September 19, 2023 and September 5, 2023, respectively.

On July 18, 2023, NanoString filed a European opposition against the EP782 patent. No schedule has yet been set for this opposition.

On July 27, 2023, NanoString filed a revocation action against the EP928 patent in the Munich Central Division of the UPC. No schedule has yet been set for this action.

Vizgen

In May 2022, the Company filed suit against Vizgen, Inc. ("Vizgen") in the U.S. District Court for the District of Delaware alleging that Vizgen’s MERSCOPE Platform and workflow and Vizgen’s Lab Services program, including associated instruments and reagents, infringe U.S. Patent Nos. 11,021,737, 11,293,051, 11,293,052, 11,293,054 and 11,299,767. The Company seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to Vizgen's making, using, selling, offering to sell, exporting and/or importing in the United States the MERSCOPE Platform and workflow and Vizgen's Lab Services program, including associated instruments and reagents. On July 25, 2022, Vizgen filed a motion to dismiss the Company's claims for willful and indirect infringement, which the Court denied on September 19, 2022. Discovery is in progress. A Markman hearing is scheduled for December 2023 and trial is scheduled for November 2024.

On August 30, 2022, Vizgen filed its answer and counterclaims alleging that the Company's Xenium products infringes U.S. Patent No. 11,098,303. Vizgen seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to the Company's making, using, selling, offering to sell, exporting and/or importing in the United States Xenium products, including associated instruments and reagents. Vizgen also filed counterclaims alleging that the Company tortiously interfered with Vizgen's contractual and business relationship with Harvard and that the Company engaged in unfair practices under Massachusetts state law. On October 27, 2022, the Company filed a partial answer and motion to dismiss the infringement counterclaim and the tort counterclaims. On February 2, 2023, the Company's motion to dismiss was denied.

On March 15, 2023, the Company filed an amended complaint additionally alleging that the MERSCOPE Platform and workflow and Vizgen’s Lab Services program infringe U.S. Patent No. 11,549,136 and withdrawing its claim of infringement of U.S. Patent No. 11,293,054. On April 17, 2023, Vizgen filed its answer adding antitrust, unfair competition, tort and contract counterclaims. Vizgen seeks, among other relief, injunctive relief (including that the Company grant Vizgen a license to the patents that the Company asserted against Vizgen) and unspecified damages (including attorneys' fees). On May 18, 2023, the Company filed a motion to dismiss Vizgen’s amended counterclaims. On July 10, 2023, the Court granted our motion to dismiss Vizgen’s contract counterclaim but otherwise denied our motion to dismiss. The Company believes Vizgen’s claims are meritless and intends to vigorously defend itself.

On June 1, 2023, the Company filed suit in the Hamburg Local Division of the Unified Patent Court alleging that Vizgen’s MERSCOPE products infringe the EP782 patent. A hearing date has not yet been set. The Company seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to Vizgen’s MERSCOPE products in the jurisdictions of the UPC in which the EP782 patent is in effect.

Parse

On August 24, 2022, the Company filed suit against Parse Biosciences, Inc. ("Parse") in the U.S. District Court for the District of Delaware alleging that Parse’s Evercode Whole Transcriptomics and ATAC-seq products infringe U.S. Patent Nos. 10,155,981, 10,697,013, 10,240,197, 10,150,995, 10,619,207 and 10,738,357. The Company seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to Parse's making, using, selling, offering to sell, exporting and/or importing in the United States the Evercode Whole Transcriptomics and ATAC-seq products. On October 17, 2022, Parse filed a motion to dismiss alleging that the asserted claims are directed to patent ineligible subject matter. The Court held a hearing on the motion to dismiss on November 22, 2022, and supplemental briefing was submitted on December 15, 2022. The Court has not yet ruled on the motion. Discovery is in progress. A Markman hearing is scheduled for February 2024 and trial is scheduled for December 2024.

Between April 20 and June 21, 2023, Parse filed petitions for Inter Partes Review of all of the patents asserted.

15

10x Genomics, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

5.    Capital Stock

As of June 30, 2023, the number of shares of Class A common stock and Class B common stock issued and outstanding were 103,266,602 and 14,056,833, respectively.

The following table represents the number of shares of Class B common stock converted to shares of Class A common stock upon the election of the holders of such shares during the periods:

	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Class B common stock converted to Class A common stock	4,010,422	579,210	4,610,422	779,210

6.    Equity Incentive Plans

Stock-based Compensation

The Company recorded stock-based compensation expense in the condensed consolidated statement of operations for the periods presented as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cost of revenue	$	1,835	$	1,453	$	3,296	$	2,467
Research and development	19,560		15,579		37,340		26,870
Selling, general and administrative	24,301		19,281		47,161		33,023
Total stock-based compensation expense	$	45,696	$	36,313	$	87,797	$	62,360

Restricted Stock Units

Restricted stock unit activity for the six months ended June 30, 2023 is as follows:

	Restricted Stock Units	Weighted-Average Grant Date Fair Value (per share)
Outstanding as of December 31, 2022	5,836,192	$	52.21
Granted	1,948,808	50.68
Vested	(922,619)	61.97
Cancelled	(428,549)	57.69
Outstanding as of June 30, 2023	6,433,832	$	49.98

Stock Options

Stock option activity for the six months ended June 30, 2023 is as follows:

	Stock Options	Weighted-Average Exercise Price
Outstanding as of December 31, 2022	7,964,557	$	37.10
Granted	300,870	50.80
Exercised	(1,088,527)	5.02
Cancelled and forfeited	(169,273)	82.96
Outstanding as of June 30, 2023	7,007,627	$	41.56

16

10x Genomics, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Market-based Performance Stock Awards

In March 2023, the Company granted 172,842 performance restricted stock unit awards (PSAs) under the 2019 Plan to certain members of management, which are subject to the achievement of certain stock price thresholds established by the Company's Compensation Committee of the Board of Directors.

The PSAs each vest in equal installments upon the achievement of stock price thresholds of $72.14, $96.19 and $120.24 respectively, calculated based on the volume-weighted average price per share of the Company’s Class A common stock over the immediately trailing 20 trading day period for each respective threshold. The stock price thresholds can be met any time prior to the fifth anniversary of the date of grant. The vesting of the PSAs can also be triggered upon certain change in control events and achievement of certain change in control price thresholds or in the event of death or disability. The weighted-average grant date fair value of the PSAs was $43.13. Stock-based compensation expense recognized for these market-based awards was approximately $1.8 million and $2.0 million for the three and six months ended June 30, 2023.

The Company estimates the fair values of shares granted under the PSAs using a Monte Carlo simulation model with the following assumptions:

Expected volatility	71%
Risk-free interest rate	3.7%
Expected dividend	—%

In September 2022, the Company granted 709,025 PSAs including performance stock options and RSUs under the 2019 Plan to certain members of management, which are subject to the achievement of certain stock price thresholds established by the Company's Compensation Committee of the Board of Directors.

As of June 30, 2023, none of the stock price thresholds had been met for any of the PSAs, resulting in no shares vesting or becoming exercisable.

2019 Employee Stock Purchase Plan

A total of 3,486,671 shares of Class A common stock were reserved for issuance under the 2019 Employee Stock Purchase Plan ("ESPP"). The price at which Class A common stock is purchased under the ESPP is equal to 85% of the fair market value of the common stock on the first day of the offering period or purchase date, whichever is lower.

During the three months ended June 30, 2023 and 2022, 117,280 and 91,871 shares of Class A common stock, respectively, were issued under the ESPP. There were no shares of Class A common stock issued under the ESPP during the three months ended March 31, 2023 and 2022. As of June 30, 2023, there were 2,991,320 shares available for issuance under the ESPP.

7.    Net Loss Per Share

The following outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect:

	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Stock options to purchase common stock	7,007,627	8,159,680	7,007,627	8,159,680
Restricted stock units	6,433,832	2,565,452	6,433,832	2,565,452
Shares committed under ESPP	34,718	19,611	34,718	19,611
Shares subject to repurchase	—	6,250	—	6,250
Total	13,476,177	10,750,993	13,476,177	10,750,993

17

10x Genomics, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

8.    Subsequent Event

In January 2023, the Company signed an agreement to acquire certain intangible and other assets for an upfront payment of $10.0 million relating to an intellectual property license. In July 2023, the transaction closed and the Company paid $10.0 million upon acquiring the assets. Under the agreement, the Company is obligated to provide additional cash consideration if certain technology development milestones are met. In July 2023, one of the development milestones was met and triggered a $10.0 million payment. Up to $26.3 million of additional cash consideration is due if certain technology development milestones are met. In addition, the Company expects to pay additional cash consideration tied to future sales milestones if such milestones are met.

18

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations.

You should read the following discussion of our financial condition and results of operations in conjunction with our unaudited condensed consolidated financial statements and the related notes and other financial information included elsewhere in this Quarterly Report and our audited consolidated financial statements and notes thereto and the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the SEC on February 16, 2023 (our "Annual Report"). As discussed in the section titled “Special Note Regarding Forward-Looking Statements,” the following discussion and analysis, in addition to historical financial information, contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in the section titled “Risk Factors” in this Quarterly Report and Part I, Item 1A of our Annual Report.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

Overview

We are a life sciences technology company focused on building innovative products and solutions to interrogate, understand and master biology. Our integrated solutions include instruments, consumables and software for analyzing biological systems at resolution and scale that matches the complexity of biology. We have launched multiple products that enable researchers to understand and interrogate biological analytes in their full biological context. Our commercial product portfolio leverages our Chromium X Series and Chromium Connect instruments, which we refer to as “Chromium instruments,” our Visium CytAssist, an instrument designed to simplify the Visium solution workflow by facilitating the transfer of transcriptomic probes from standard glass slides to Visium slides and our Xenium Analyzer, an instrument designed for fully automated high-throughput analysis of cells in their tissue environment, which we refer to as “Spatial instruments,” and our proprietary microfluidic chips, slides, reagents and other consumables for our Chromium, Visium and Xenium solutions, which we refer to as “consumables.” We bundle our software with these products to guide customers through the workflow, from sample preparation through analysis and visualization.

Our products cover a wide variety of applications and allow researchers to analyze biological systems at fundamental resolutions and on massive scale, such as at the single cell level for millions of cells. Customers purchase instruments and consumables from us for use in their experiments. In addition to instrument and consumable sales, we derive revenue from post-warranty service contracts for our instruments.

Since our inception in 2012, we have incurred net losses in each year. Our net losses were $62.4 million and $113.2 million for the three and six months ended June 30, 2023 and $64.5 million and $106.9 million for the three and six months ended June 30, 2022, respectively. As of June 30, 2023, we had an accumulated deficit of $1.1 billion and cash, cash equivalents and marketable securities totaling $391.4 million. We expect to continue to incur significant expenses for the foreseeable future and to incur operating losses in the near term. We expect our expenses will increase substantially in connection with our ongoing activities, as we:

•attract, hire and retain qualified personnel;

•scale our technology platforms and introduce new products and services;

•protect and defend our intellectual property;

•acquire businesses or technologies; and

•invest in processes, tools and infrastructure to support the growth of our business.

19

Results of Operations

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Revenue	$	146,819	$	114,609	$	281,104	$	229,105
Cost of revenue	47,207		27,704		83,102		53,182
Gross profit	99,612		86,905		198,002		175,923
Operating expenses:
Research and development	71,460		70,685		138,558		134,763
Selling, general and administrative	91,510		79,337		174,790		146,012
Total operating expenses	162,970		150,022		313,348		280,775
Loss from operations	(63,358)		(63,117)		(115,346)		(104,852)
Other income (expense):
Interest income	4,100		1,238		7,969		1,807
Interest expense	(5)		(109)		(24)		(237)
Other expense, net	(1,504)		(1,843)		(3,020)		(2,243)
Total other income (expense)	2,591		(714)		4,925		(673)
Loss before provision for income taxes	(60,767)		(63,831)		(110,421)		(105,525)
Provision for income taxes	1,647		627		2,740		1,346
Net loss	$	(62,414)	$	(64,458)	$	(113,161)	$	(106,871)

Comparison of the Three and Six Months Ended June 30, 2023 and 2022

Revenue

	Three Months Ended June 30,				Change				Six Months Ended June 30,				Change
(dollars in thousands)	2023		2022		$		%		2023		2022		$		%
Instruments
Chromium	$	12,859	$	14,047	$	(1,188)	(8)	%	$	24,485	$	28,373	$	(3,888)	(14)	%
Spatial	18,096		689		17,407		2,526		25,646		792		24,854		3,138
Total instruments revenue	30,955		14,736		16,219		110		50,131		29,165		20,966		72
Consumables
Chromium	100,794		91,048		9,746		11		201,890		182,327		19,563		11
Spatial	11,694		6,886		4,808		70		22,976		13,557		9,419		69
Total consumables revenue	112,488		97,934		14,554		15		224,866		195,884		28,982		15
Services	3,376		1,939		1,437		74		6,107		4,056		2,051		51
Total revenue	$	146,819	$	114,609	$	32,210	28	%	$	281,104	$	229,105	$	51,999	23	%

Revenue increased $32.2 million, or 28%, to $146.8 million for the three months ended June 30, 2023 as compared to the three months ended June 30, 2022. Instruments revenue increased $16.2 million, or 110%, to $31.0 million for the three months ended June 30, 2023 as compared to the three months ended June 30, 2022, primarily due to higher volume of instruments sold. The revenue for the three months ended June 30, 2023 includes the sales of Xenium instruments. There were no Xenium instruments sold during the three months ended June 30, 2022. Chromium instruments revenue decreased $1.2 million, or 8%, to $12.9 million primarily due to a shift in mix to lower price Chromium instruments despite an increase in the volume of Chromium instruments sold. Consumables revenue increased $14.6 million, or 15%, to $112.5 million for the three months ended June 30, 2023 as compared to the three months ended June 30, 2022, primarily driven by higher volume of total instruments sold.

Revenue increased $52.0 million, or 23%, to $281.1 million for the six months ended June 30, 2023 as compared to the six months ended June 30, 2022. Instruments revenue increased $21.0 million, or 72%, to $50.1 million for the six months ended

20

June 30, 2023 as compared to the six months ended June 30, 2022, primarily due to higher volume of instruments sold. The revenue for the six months ended June 30, 2023 includes the sales of Visium CytAssist and Xenium instruments. There were no Xenium instruments sold during the six months ended June 30, 2022. Chromium instruments revenue decreased $3.9 million, or 14%, to $24.5 million primarily due to lower volume of Chromium instruments sold. Consumables revenue increased $29.0 million, or 15%, to $224.9 million for the six months ended June 30, 2023 as compared to the six months ended June 30, 2022, primarily driven by higher volume of total instruments sold.

Cost of revenue, gross profit and gross margin

	Three Months Ended June 30,						Change				Six Months Ended June 30,						Change
(dollars in thousands)	2023			2022			$		%		2023			2022			$		%
Cost of revenue	$	47,207		$	27,704		$	19,503	70	%	$	83,102		$	53,182		$	29,920	56	%
Gross profit	$	99,612		$	86,905		$	12,707	15	%	$	198,002		$	175,923		$	22,079	13	%
Gross margin	68		%	76		%					70		%	77		%

Cost of revenue increased $19.5 million, or 70%, to $47.2 million for the three months ended June 30, 2023 as compared to the three months ended June 30, 2022. The increase was primarily driven by higher manufacturing costs of $17.9 million due to increased sales and higher costs of newly introduced products, $0.9 million of higher warranty charges and $0.7 million of higher inventory write-downs.

Cost of revenue increased $29.9 million, or 56%, to $83.1 million for the six months ended June 30, 2023 as compared to the six months ended June 30, 2022. The increase was primarily driven by higher manufacturing costs of $25.1 million due to increased sales and higher costs of newly introduced products, $2.9 million of higher inventory write-downs and $1.8 million of higher warranty charges.

We expect our gross margin will continue to trend lower due in part to change in product mix with newly introduced products, the impacts of inflation, increased supply chain costs and increased costs due to expanding our operations infrastructure. In particular, the Xenium instrument currently carries a significantly lower margin than our other instruments. As we continue to scale our manufacturing capacity, we believe that there are opportunities for cost reductions and also for increases to average selling price that we expect will improve instrument margin over the long term.

Operating expenses

	Three Months Ended June 30,				Change				Six Months Ended June 30,				Change
(dollars in thousands)	2023		2022		$		%		2023		2022		$		%
Research and development	$	71,460	$	70,685	$	775	1	%	$	138,558	$	134,763	$	3,795	3	%
Selling, general and administrative	91,510		79,337		12,173		15		174,790		146,012		28,778		20
Total operating expenses	$	162,970	$	150,022	$	12,948	9	%	$	313,348	$	280,775	$	32,573	12	%

Research and development expenses increased $0.8 million, or 1%, to $71.5 million for the three months ended June 30, 2023, as compared to the three months ended June 30, 2022. The increase was primarily driven by an increase in personnel expenses of $3.4 million, including $4.0 million in stock-based compensation expense, $0.7 million in other expenses and $0.4 million of higher costs for facilities and information technology to support operational expansion. The increase is partially offset by lower costs of laboratory materials and supplies of $4.0 million used to support our research and development efforts.

Research and development expenses increased $3.8 million, or 3%, to $138.6 million for the six months ended June 30, 2023, as compared to the six months ended June 30, 2022. The increase was primarily driven by an increase in personnel expenses of $10.1 million, including $10.5 million in stock-based compensation expense, and $2.0 million of higher costs for facilities and information technology to support operational expansion. The increase is partially offset by lower costs of laboratory materials and supplies of $9.0 million used to support our research and development efforts.

Selling, general and administrative expenses increased $12.2 million, or 15%, to $91.5 million for the three months ended June 30, 2023, as compared to the three months ended June 30, 2022. The increase was primarily driven by increased personnel expenses of $3.4 million, including $5.0 million in stock-based compensation expense, $4.7 million of higher costs for facilities

21

and information technology to support operational expansion including a lease impairment charge of $2.8 million and $4.0 million of increased outside legal expenses.

Selling, general and administrative expenses increased $28.8 million, or 20%, to $174.8 million for the six months ended June 30, 2023, as compared to the six months ended June 30, 2022. The increase was primarily driven by increased personnel expenses of $13.3 million, including $14.1 million in stock-based compensation expense, $8.4 million of increased outside legal expenses, $5.0 million of higher costs for facilities and information technology to support operational expansion including a lease impairment charge of $2.8 million, and $1.5 million of increased marketing expenses.

We expect our operating expenditures to continue to increase for the remainder of 2023 and beyond as we increase our investment to support new and existing research and development projects and incentivize and retain key talent, which we expect to result in increased stock-based compensation expense in future periods.

Other income (expense), net

	Three Months Ended June 30,				Change				Six Months Ended June 30,				Change
(dollars in thousands)	2023		2022		$		%		2023		2022		$		%
Interest income	$	4,100	$	1,238	$	2,862	231	%	$	7,969	$	1,807	$	6,162	341	%
Interest expense	(5)		(109)		104		(95)		(24)		(237)		213		(90)
Other expense, net	(1,504)		(1,843)		339		(18)		(3,020)		(2,243)		(777)		35
Total other income (expense)	$	2,591	$	(714)	$	3,305	(463)	%	$	4,925	$	(673)	$	5,598	(832)	%

Interest income increased by $2.9 million for the three months ended June 30, 2023 as compared to the three months ended June 30, 2022. Interest income increased by $6.2 million for the six months ended June 30, 2023 as compared to the six months ended June 30, 2022. The increase was primarily due to interest income generated from our cash equivalents and marketable securities during the three and six months ended June 30, 2023 reflecting an increase in interest rates.

Interest expense decreased by $0.1 million, or 95% for the three months ended June 30, 2023 as compared to the three months ended June 30, 2022. Interest expense decreased by $0.2 million, or 90% for the six months ended June 30, 2023 as compared to the six months ended June 30, 2022.

Other expense, net decreased by $0.3 million, or 18% for the three months ended June 30, 2023 as compared to the three months ended June 30, 2022. The decrease was driven by lower net realized and unrealized losses from foreign currency rate measurement fluctuations. Other expense, net increased by $0.8 million, or 35% for the six months ended June 30, 2023 as compared to the six months ended June 30, 2022. The increase was primarily driven by $1.7 million of realized losses from the sale of available-for-sale debt securities, partially offset by lower net realized and unrealized losses from foreign currency rate measurement fluctuations.

Provision for Income Taxes

The Company's provision for income taxes was $1.6 million and $2.7 million, respectively, for the three and six months ended June 30, 2023, and $0.6 million and $1.3 million, respectively, for the three and six months ended June 30, 2022. The provision for income taxes consists primarily of foreign taxes. Deferred tax assets related to our domestic operations are fully offset by a valuation allowance.

22

Liquidity and Capital Resources

As of June 30, 2023, we had $391.4 million in cash and cash equivalents and marketable securities. Short-term restricted cash of $1.5 million and long-term restricted cash of $3.5 million primarily serves as collateral for outstanding letters of credit for facilities. We have generated negative cumulative cash flows from operations since inception through June 30, 2023, and we have generated losses from operations since inception as reflected in our accumulated deficit of $1.1 billion.

We currently anticipate making aggregate capital expenditures of between approximately $35 million and $40 million during the next 12 months, which we expect to include, among other expenditures, the construction costs of our global facilities and equipment to be used for manufacturing and research and development.

Our future capital requirements will depend on many factors including our revenue growth rate, research and development efforts, investments in or acquisitions of complementary or enhancing technologies or businesses, the timing and extent of additional capital expenditures to invest in existing and new facilities, the expansion of sales and marketing and international activities and the introduction of new products.

We take a long-term view in growing and scaling our business and we regularly review acquisition and investment opportunities, and we may in the future enter into arrangements to acquire or invest in businesses, real estate, services and technologies, including intellectual property rights, and any such acquisitions or investments could significantly increase our capital needs. We regularly review opportunities that meet our long-term growth objectives.

In January 2023, we signed an agreement to acquire certain intangible and other assets for an upfront payment of $10.0 million relating to an intellectual property license. In July 2023, the transaction closed and we paid $10.0 million upon acquiring the assets. Under the agreement, we are obligated to provide additional cash consideration if certain technology development milestones are met. In July 2023, one of the development milestones was met and triggered a $10.0 million payment. Up to $26.3 million of additional cash consideration is due if certain technology development milestones are met. In addition, we expect to pay additional cash consideration tied to future sales milestones if such milestones are met.

While we expect to continue to incur operating losses for the foreseeable future due to the investments we intend to make, we believe that our existing cash and cash equivalents and cash generated from sales of our products will be sufficient to meet our anticipated cash needs for at least the next 12 months. However, our liquidity assumptions may prove to be incorrect, and we could exhaust our available financial resources sooner than we currently expect. We maintain the majority of our cash and cash equivalents in accounts with major U.S. and multi-national financial institutions, and our deposits at these institutions exceed insured limits. Market conditions can impact the viability of these institutions. In the event of failure of any of the financial institutions where we maintain our cash and cash equivalents, there can be no assurance that we would be able to access uninsured funds in a timely manner or at all. Any inability to access or delay in accessing these funds could adversely affect our business and financial position.

We intend to continue to evaluate market conditions and may in the future pursue additional sources of funding, such as mortgage or other financing, to further enhance our financial position and to execute our business strategy. In addition, should prevailing economic, financial, business or other factors adversely affect our ability to meet our operating cash requirements, we could be required to obtain funding though traditional or alternative sources of financing. We cannot be certain that additional funds would be available to us on favorable terms when required, or at all.

Sources of liquidity

Since our inception, we have financed our operations and capital expenditures primarily through sales of convertible preferred stock and common stock, revenue from sales of our products and the incurrence of indebtedness. In September 2019, we completed our initial public offering for aggregate proceeds of $410.8 million, net of offering costs, underwriter discounts and commissions. In September 2020, we completed a public offering of our Class A common stock for aggregate proceeds of $482.3 million, after deducting offering costs, underwriting discounts and commissions.

23

The following table summarizes our cash flows for the periods indicated:

	Six Months Ended June 30,
(in thousands)	2023		2022
Net cash provided by (used in):
Operating activities	$	(15,651)	$	(37,765)
Investing activities	115,494		(285,085)
Financing activities	3,682		8,777
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(25)		(210)
Net increase (decrease) in cash, cash equivalents, and restricted cash	$	103,500	$	(314,283)

Operating activities

The net cash used in operating activities of $15.7 million for the six months ended June 30, 2023 was primarily due to a net loss of $113.2 million, net cash outflow from changes in operating assets and liabilities of $15.9 million, primarily offset by stock-based compensation expense of $87.8 million, depreciation and amortization of $16.4 million, amortization of leased right-of-use assets of $4.1 million, lease impairment charges of $2.8 million, realized losses on sale of marketable securities of $1.7 million and other non-cash expenses of $0.6 million. The net cash outflow from operating assets and liabilities was primarily due to an increase in other noncurrent assets of $18.1 million primarily due to an upfront payment for an intellectual property license of $10.0 million and a legal security deposit of $7.8 million (refer to Note 4, Commitments and Contingencies - Litigation - NanoString, to the notes to condensed financial statements for further details), a decrease in accrued compensation and other related benefits of $10.3 million primarily related to the prior year annual bonus payments, a decrease in operating lease liability of $4.5 million, an increase in inventory of $2.3 million, and a decrease in prepaid expenses and other current assets of $2.1 million. The net cash outflow from operating assets and liabilities was partially offset by a decrease of accounts receivable of $16.5 million due to timing of collections, an increase in deferred revenue of $2.9 million, and an increase in accounts payable of $1.3 million due to timing of vendor payments.

The net cash used in operating activities of $37.8 million for the six months ended June 30, 2022 was primarily due to a net loss of $106.9 million, net cash outflow from changes in operating assets and liabilities of $10.1 million, partially offset by stock-based compensation expense of $62.4 million, depreciation and amortization of $12.7 million, amortization of leased right-of-use assets of $3.7 million and amortization of premium and accretion of discount on marketable securities, net of $0.5 million. The net cash outflow from operating assets and liabilities was primarily due to an increase in inventory of $11.1 million due to the timing of inventory purchases including advance purchases of inventory due to anticipated demand and supply chain management, a decrease in accrued compensation and other related benefits of $8.0 million due to the prior year annual bonus payments, an increase in prepaid expenses and other current assets of $5.3 million and a decrease in accrued expenses and other current liabilities of $4.9 million due to the timing of payments including license fees. The net cash outflow from operating assets and liabilities was partially offset by an increase in accounts payable of $10.3 million due to timing of vendor payments, a decrease in accounts receivable of $9.0 million due to timing of collections and an increase in deferred revenue of $1.7 million.

Investing activities

The net cash provided by investing activities of $115.5 million in the six months ended June 30, 2023 was due to proceeds from sales and maturities of marketable securities of $94.9 million and $51.2 million, respectively, partially offset by purchases of property and equipment and intangible assets of $29.9 million and $0.7 million, respectively.

The net cash used in investing activities of $285.1 million in the six months ended June 30, 2022 was due to purchases of marketable securities of $271.5 million and property and equipment of $55.4 million, partially offset by proceeds from sales and maturities of marketable securities of $32.7 million and $9.1 million, respectively.

Financing activities

The net cash provided by financing activities of $3.7 million in the six months ended June 30, 2023 was primarily from proceeds of $9.5 million from the issuance of common stock from the exercise of stock options and employee stock purchase plan, partially offset by payments on financing arrangements of $5.8 million.

24

The net cash provided by financing activities of $8.8 million in the six months ended June 30, 2022 was primarily from proceeds of $14.2 million from the issuance of common stock from the exercise of stock options and employee stock purchase plan purchases partially offset by payments on financing arrangements of $5.4 million.

Critical Accounting Estimates

Our condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and the applicable rules and regulations of the SEC. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported revenues and expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

There have been no significant changes in our critical accounting policies and estimates during the six months ended June 30, 2023 as compared to the critical accounting policies and estimates disclosed in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our most recent Annual Report on Form 10-K filed with the SEC on February 16, 2023.

Item 3.    Quantitative and Qualitative Disclosures About Market Risk. 

For financial market risks related to changes in interest rates and foreign currency exchange rates, reference is made to Item 7A “Quantitative and Qualitative Disclosures about Market Risk” contained in Part II of our Annual Report. Our exposure to market risk has not changed materially since December 31, 2022.

Item 4.    Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(e) and 15d-15(e) under the Exchange Act as of the end of the period covered by this Quarterly Report. Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including the Chief Executive Officer and the Chief Financial Officer, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objective and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2023.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) under the Exchange Act) during the quarter ended June 30, 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

25

10x Genomics, Inc.

PART II—OTHER INFORMATION

Item 1.    Legal Proceedings.

Refer to Note 4 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report.

Item 1A.    Risk Factors.

There have been no material changes to our risk factors that we believe are material to our business, results of operations and financial condition from the risk factors previously disclosed in our Annual Report, and any documents incorporated by reference therein, which is accessible on the SEC's website at www.sec.gov.

Item 5.    Other Information

None of our directors or officers adopted, modified or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the quarter ended June 30, 2023, as such terms are defined under Item 408(a) of Regulation S-K.

26

Item 6.    Exhibits.

Exhibit Number		Incorporated by Reference
	Exhibit Title	Form	File No.	Exhibit	Filing Date	Filed Herewith
3.1	Amended and Restated Certificate of Incorporation of the Registrant.	8-K	001-39035	3.1	9/16/2019
3.2	Amended and Restated Bylaws of the Registrant.	10-Q	001-39035	3.2	11/3/2022
4.1	Form of Stock Certificate for Class A common stock of the Registrant.	S-1	333-233361	4.2	8/19/2019
10.1+	Amended and Restated Non-Employee Director Compensation Policy					X
31.1	Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					X
31.2	Certification of Principal Financial and Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					X
32.1*	Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.					X
32.2*	Certification of Principal Financial and Accounting Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.					X
101.INS	Inline XBRL Instance Document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (the Cover Page Interactive Data File does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).

+    Management contract or compensatory plan or arrangement.

*    This certification is deemed not filed for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.

27

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	10x Genomics, Inc.
Date: August 3, 2023	By:	/s/ Serge Saxonov
		Serge Saxonov Chief Executive Officer and Director (Principal Executive Officer)
Date: August 3, 2023	By:	/s/ Justin J. McAnear
		Justin J. McAnear Chief Financial Officer (Principal Financial and Accounting Officer)

28

EX-10.1

10xgenomics.com

Exhibit 10.1

10x Genomics, Inc.

Non-Employee Director Compensation Policy

(Amended and Restated Effective as of April 28, 2023)

Purpose

The purpose of this Non-Employee Director Compensation Policy (this “Policy”) is to establish the cash and equity compensation for non-employee members of the Board of Directors (the “Board”) of 10x Genomics, Inc. (the “Company”) in a manner that aligns their interests with those of the Company’s shareholders and is competitive with comparable companies.

The cash and equity compensation described in this Policy shall be paid or be made, as applicable, automatically and without further action of the Board, or any committee or subcommittee thereof, to each member of the Board who is not an employee of the Company or any parent or subsidiary of the Company (each, a “Non-Employee Director”) who may be eligible to receive such cash or equity compensation, unless such Non-Employee Director declines the receipt of such cash or equity compensation by written notice to the Company.

Effective Date

This Policy as amended and restated is effective as of April 28, 2023 (the “Effective Date”), and shall remain in effect until it is revised or rescinded by further action of the Board.

Compensation

1.Cash Compensation. Effective as of the Effective Date:

a.Annual Retainers. Each Non-Employee Director shall receive an annual retainer of $50,000 for service on the Board.

b.Additional Annual Retainers. In addition to the annual retainer in Section 1(a), the Non-Employee Director serving as the Chair of the Board and each Non-Employee Director serving as a member or chair, as applicable, of the following committees of the Board shall receive an additional annual retainer for such service as follows:

Chair of the Board:    $50,000

Audit Committee Chair:    $20,000

Audit Committee Member:    $10,000

Compensation Committee Chair:    $18,250

Compensation Committee Member:    $8,000

Nominating and Corporate Governance Chair:    $10,000

1

10xgenomics.com

Nominating and Corporate Governance Member:    $5,000

c.Payment of Retainers. The annual retainers described in Section 1(a) and Section 1(b) shall be earned on a quarterly basis based on a calendar quarter and shall be paid by the Company in arrears not later than the fifteenth day following the end of each calendar quarter. In the event a member of the Board does not serve as a Non-Employee Director, or in the applicable positions described in Section 1(b), for an entire calendar quarter, such Non-Employee Director shall receive a prorated portion of the retainer(s) otherwise payable to such Non-Employee Director for such calendar quarter pursuant to Section 1(a) and Section 1(b), as applicable, with such prorated portion determined by multiplying such otherwise payable retainer(s) by a fraction, the numerator of which is the number of days during which the member of the Board serves as a Non-Employee Director or in the applicable positions described in Section 1(b) during the applicable calendar quarter and the denominator of which is the number of days in the applicable calendar quarter.

d.Reimbursement of Expenses. The Company shall reimburse each Non-Employee Director for all reasonable and documented travel and lodging expenses associated with attendance at Board and committee meetings.

2.Equity Compensation. Non-Employee Directors shall be granted the equity awards described below. The awards described below shall be granted under and shall be subject to the terms and provisions of the Company’s 2019 Omnibus Incentive Plan or any other applicable Company equity incentive plan then maintained by the Company (such plan, as may be amended from time to time, the “2019 Plan”) and shall be granted subject to the execution and delivery of applicable award agreement(s), including any exhibits attached thereto. All applicable terms of the 2019 Plan and any award agreement thereunder shall apply to this Policy as if fully set forth herein.

a.Annual Awards. Each Non-Employee Director who (i) serves on the Board as of the date of any annual meeting of the Company’s stockholders (an “Annual Meeting”) after the Effective Date and (ii) will continue to serve as a Non-Employee Director immediately following such Annual Meeting shall be automatically granted, on the date of such Annual Meeting, (x) a number of restricted stock units that will, upon vesting, settle in shares of Class A Common Stock, which number shall be determined by dividing $100,000 by the average closing price per share of Class A Common Stock over the 20 trading days commencing on the first day of the most recent open trading window preceding such Annual Meeting (with the number of shares of Class A Common Stock underlying such restricted stock unit award subject to adjustment as provided in the 2019 Plan) and (y) a nonqualified stock option under which the Non-Employee Director will, upon vesting, be entitled to exercise such option to purchase a number of shares of Class A Common Stock calculated by dividing $100,000 by the average closing price per share of Class A Common Stock over the 20 trading days commencing on the first day of the first open trading window preceding such Annual Meeting and then multiplying the quotient thereof by 2.5, for a per share exercise price equal to Fair Market Value on the date of such Annual Meeting (with the number of shares of Class A Common Stock underlying such stock option award and the exercise price subject to adjustment as provided in the 2019 Plan). The awards described in this Section 2(a) shall be referred to as the “Annual Awards.” For the avoidance of doubt, a Non-Employee Director elected for the first time to the Board at an Annual Meeting shall only receive an Annual Award in connection with such election, and shall not receive any Initial Award (as defined below).

b.Initial Awards. Each Non-Employee Director who is initially elected or appointed to the Board after the Effective Date on any date other than the date of an Annual Meeting shall be automatically granted, on the last business day of the month that follows the month in which such Non-Employee Director’s initial election or appointment occurred (such last business day, the “Initial AwardGrant Date”), (x) a number of restricted stock units that will, upon vesting, settle in shares of Class A Common Stock, which number shall be determined by dividing $200,000 by the average closing price per share of Class A Common Stock over the first 20 trading days of the month that immediately follows the month in which such Non-Employee Director’s initial election or appointment occurred (with the number of shares of Class A Common Stock underlying such restricted stock unit award subject to adjustment as provided in the 2019 Plan) and (y) a nonqualified stock option under which the Non-Employee Director will, upon vesting, be entitled to exercise such option to purchase a number of shares of Class A Common Stock calculated by dividing $200,000 by the average closing price per share of Class A Common Stock over the first 20 trading days of the month that immediately follows the month in which such Non-Employee Director’s initial election or appointment occurred and then multiplying the quotient thereof by 2.5, for a per share exercise

1

10xgenomics.com

price equal to Fair Market Value on the Initial Award Grant Date (with the number of shares of Class A Common Stock underlying such stock option award and the exercise price subject to adjustment as provided in the 2019 Plan). The awards described in this Section 2(b) shall be referred to as “Initial Awards.” For the avoidance of doubt, no Non-Employee Director shall be granted more than one Initial Award.

c.Termination of Employment of Employee Directors. Members of the Board who are employees of the Company or any parent or subsidiary of the Company who, following the Effective Date, terminate their employment with the Company and any parent or subsidiary of the Company and remain on the Board will not receive an Initial Award pursuant to Section 2(b) above, but to the extent that they are otherwise eligible, will be eligible to receive, after termination from employment with the Company and any parent or subsidiary of the Company, Annual Awards as described in Section 2(a) above.

d.Vesting of Awards Granted to Non-Employee Directors. Subject to the Non-Employee Director continuing in service through each applicable vesting date:

(i)Annual Award. Each Annual Award of stock options shall vest in twelve equal monthly installments following the date of the Annual Meeting on which such Annual Award is granted. Each Annual Award of restricted stock units shall vest in four equal quarterly installments following the date of the Annual Meeting on which such Annual Award is granted, with one fourth of such Annual Award of restricted stock units vesting on the first to occur, on or following the date of the Annual Meeting on which such Annual Award is granted, of February 21, May 21, August 21 or November 21 following the date of such Annual Meeting, and one fourth of each Annual Award of restricted stock units vesting quarterly thereafter.

(ii)Initial Award. Each Initial Award of stock options shall vest as to one-third of such award on the first anniversary of the date of the Non-Employee Director awardee’s initial election or appointment to the Board and thereafter vest in equal monthly installments for the following two years. Each Initial Award of restricted stock units shall vest as to one-third of such award on the first anniversary of the first to occur, on or following the date on which such Annual Award is granted, of February 21, May 21, August 21 or November 21 following the Initial Award Grant Date and thereafter vest in equal quarterly installments for the following two years.

(iii)Termination. No portion of an Annual Award or Initial Award that is unvested at the time of a Non-Employee Director’s termination of service on the Board shall become vested thereafter.

(iv)Change in Control. All of the Annual Awards and Initial Awards shall vest in full immediately prior to the occurrence of a Change in Control (as defined in the 2019 Plan), to the extent outstanding and unvested at such time.

Compensation Limits

Notwithstanding anything to the contrary in this Policy, all compensation payable under this Policy will be subject to any limits on the maximum amount of Non-Employee Director compensation set forth in the 2019 Plan, as in effect from time to time.

Modifications to the Policy

This Policy may be amended, modified or terminated at any time by action by the Board in its sole discretion. The terms and conditions of this Policy shall supersede any prior cash and/or equity compensation arrangements for service as a member of the Board between the Company and any of its Non-Employee Directors and between any subsidiary of the Company and any of its non-employee directors. No Non-Employee Director shall have any rights hereunder, except with respect to equity awards granted pursuant to this Policy following grant thereof.

* * * * *

2

EX-31.1

Exhibit 31.1

CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Serge Saxonov, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of 10x Genomics, Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 3, 2023	By:	/s/ Serge Saxonov
		Serge Saxonov Chief Executive Officer and Director (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Justin J. McAnear, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of 10x Genomics, Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 3, 2023	By:	/s/ Justin J. McAnear
		Justin J. McAnear Chief Financial Officer (Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Serge Saxonov, the Chief Executive Officer of 10x Genomics, Inc. (the “Company”), hereby certify, that, to my knowledge:

1.The Quarterly Report on Form 10-Q for the period ended June 30, 2023 (the “Report”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 3, 2023	By:	/s/ Serge Saxonov
		Serge Saxonov Chief Executive Officer and Director (Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Justin J. McAnear, the Chief Financial Officer of 10x Genomics, Inc. (the “Company”), hereby certify, that, to my knowledge:

1.The Quarterly Report on Form 10-Q for the period ended June 30, 2023 (the “Report”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 3, 2023	By:	/s/ Justin J. McAnear
		Justin J. McAnear Chief Financial Officer (Principal Financial and Accounting Officer)

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2023	Jul. 31, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-39035
Entity Registrant Name	10x Genomics, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-5614458
Entity Address, Address Line One	6230 Stoneridge Mall Road
Entity Address, City or Town	Pleasanton
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94588
City Area Code	925
Local Phone Number	401-7300
Title of 12(b) Security	Class A common stock, par value $0.00001 per share
Trading Symbol	TXG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001770787
Common Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		103,361,382
Common Class B
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		14,056,833

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 325,879	$ 219,746
Marketable securities	65,506	210,238
Restricted cash	1,500	2,633
Accounts receivable, net	87,685	104,211
Inventory	83,687	81,629
Prepaid expenses and other current assets	18,683	16,578
Total current assets	582,940	635,035
Property and equipment, net	284,913	289,328
Restricted cash	3,474	4,974
Operating lease right-of-use assets	71,049	69,882
Goodwill	4,511	4,511
Intangible assets, net	22,290	22,858
Other noncurrent assets	20,461	2,392
Total assets	989,638	1,028,980
Current liabilities:
Accounts payable	23,124	21,599
Accrued compensation and related benefits	22,372	32,675
Accrued expenses and other current liabilities	34,088	59,779
Deferred revenue	9,217	7,867
Operating lease liabilities	9,286	9,037
Total current liabilities	98,087	130,957
Operating lease liabilities, noncurrent	90,331	86,139
Other noncurrent liabilities	7,919	6,141
Total liabilities	196,337	223,237
Commitments and contingencies (Note 4)
Stockholders’ equity:
Preferred stock	0	0
Common stock	2	2
Additional paid-in capital	1,936,750	1,839,397
Accumulated deficit	(1,142,482)	(1,029,321)
Accumulated other comprehensive loss	(969)	(4,335)
Total stockholders’ equity	793,301	805,743
Total liabilities and stockholders’ equity	$ 989,638	$ 1,028,980

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Revenue	$ 146,819	$ 114,609	$ 281,104	$ 229,105
Cost of revenue	47,207	27,704	83,102	53,182
Gross profit	99,612	86,905	198,002	175,923
Operating expenses:
Research and development	71,460	70,685	138,558	134,763
Selling, general and administrative	91,510	79,337	174,790	146,012
Total operating expenses	162,970	150,022	313,348	280,775
Loss from operations	(63,358)	(63,117)	(115,346)	(104,852)
Other income (expense):
Interest income	4,100	1,238	7,969	1,807
Interest expense	(5)	(109)	(24)	(237)
Other expense, net	(1,504)	(1,843)	(3,020)	(2,243)
Total other income (expense)	2,591	(714)	4,925	(673)
Loss before provision for income taxes	(60,767)	(63,831)	(110,421)	(105,525)
Provision for income taxes	1,647	627	2,740	1,346
Net loss	$ (62,414)	$ (64,458)	$ (113,161)	$ (106,871)
Net loss per share, basic (in dollars per share)	$ (0.53)	$ (0.57)	$ (0.97)	$ (0.94)
Net loss per share, diluted (in dollars per share)	$ (0.53)	$ (0.57)	$ (0.97)	$ (0.94)
Weighted-average shares of common stock used in computing net loss per share, basic (in shares)	116,707,672	113,574,757	116,166,776	113,272,158
Weighted-average shares of common stock used in computing net loss per share, diluted (in shares)	116,707,672	113,574,757	116,166,776	113,272,158

XML

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (62,414)	$ (64,458)	$ (113,161)	$ (106,871)
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on available-for-sale marketable securities	379	(1,326)	1,496	(3,729)
Realized loss on available-for-sale marketable securities reclassified into net loss	0	0	1,715	0
Foreign currency translation adjustment	131	(196)	155	(258)
Other comprehensive income (loss), net of tax	510	(1,522)	3,366	(3,987)
Comprehensive loss	$ (61,904)	$ (65,980)	$ (109,795)	$ (110,858)

XML

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Common Class A	Common Class A Common Stock	Common Class A Additional Paid-in Capital
Beginning balance (in shares) at Dec. 31, 2021		112,514,977
Beginning balance at Dec. 31, 2021	$ 817,568	$ 2	$ 1,680,865	$ (863,321)	$ 22
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of Class A common stock related to equity awards (in shares)							761,373
Issuance of Class A common stock related to equity awards						$ 7,826		$ 7,826
Vesting of shares subject to repurchase, including early exercised options	32		32
Stock-based compensation	26,137		26,137
Net loss	(42,413)			(42,413)
Other comprehensive income (loss)	(2,465)				(2,465)
Ending balance (in shares) at Mar. 31, 2022		113,276,350
Ending balance at Mar. 31, 2022	806,685	$ 2	1,714,860	(905,734)	(2,443)
Beginning balance (in shares) at Dec. 31, 2021		112,514,977
Beginning balance at Dec. 31, 2021	817,568	$ 2	1,680,865	(863,321)	22
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(106,871)
Other comprehensive income (loss)	(3,987)
Ending balance (in shares) at Jun. 30, 2022		113,886,797
Ending balance at Jun. 30, 2022	783,516	$ 2	1,757,671	(970,192)	(3,965)
Beginning balance (in shares) at Mar. 31, 2022		113,276,350
Beginning balance at Mar. 31, 2022	806,685	$ 2	1,714,860	(905,734)	(2,443)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of Class A common stock related to equity awards (in shares)							610,447
Issuance of Class A common stock related to equity awards						6,360		6,360
Vesting of shares subject to repurchase, including early exercised options	32		32
Stock-based compensation	36,419		36,419
Net loss	(64,458)			(64,458)
Other comprehensive income (loss)	(1,522)				(1,522)
Ending balance (in shares) at Jun. 30, 2022		113,886,797
Ending balance at Jun. 30, 2022	783,516	$ 2	1,757,671	(970,192)	(3,965)
Beginning balance (in shares) at Dec. 31, 2022		115,195,009
Beginning balance at Dec. 31, 2022	805,743	$ 2	1,839,397	(1,029,321)	(4,335)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of Class A common stock related to equity awards (in shares)							978,333
Issuance of Class A common stock related to equity awards						2,400		2,400
Stock-based compensation	42,133		42,133
Net loss	(50,747)			(50,747)
Other comprehensive income (loss)	2,856				2,856
Ending balance (in shares) at Mar. 31, 2023		116,173,342
Ending balance at Mar. 31, 2023	802,385	$ 2	1,883,930	(1,080,068)	(1,479)
Beginning balance (in shares) at Dec. 31, 2022		115,195,009
Beginning balance at Dec. 31, 2022	805,743	$ 2	1,839,397	(1,029,321)	(4,335)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(113,161)
Other comprehensive income (loss)	3,366
Ending balance (in shares) at Jun. 30, 2023		117,323,435
Ending balance at Jun. 30, 2023	793,301	$ 2	1,936,750	(1,142,482)	(969)
Beginning balance (in shares) at Mar. 31, 2023		116,173,342
Beginning balance at Mar. 31, 2023	802,385	$ 2	1,883,930	(1,080,068)	(1,479)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of Class A common stock related to equity awards (in shares)							1,150,093
Issuance of Class A common stock related to equity awards						$ 7,096		$ 7,096
Stock-based compensation	45,724		45,724
Net loss	(62,414)			(62,414)
Other comprehensive income (loss)	510				510
Ending balance (in shares) at Jun. 30, 2023		117,323,435
Ending balance at Jun. 30, 2023	$ 793,301	$ 2	$ 1,936,750	$ (1,142,482)	$ (969)

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating activities:
Net loss	$ (113,161)	$ (106,871)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	87,797	62,360
Depreciation and amortization	16,423	12,691
Amortization of right-of-use assets	4,070	3,728
Lease impairment charges	2,785	0
Realized loss on marketable securities	1,715	0
Other	613	460
Changes in operating assets and liabilities:
Accounts receivable	16,526	9,025
Inventory	(2,311)	(11,101)
Prepaid expenses and other current assets	(2,123)	(5,348)
Other noncurrent assets	(18,073)	115
Accounts payable	1,314	10,262
Accrued compensation and other related benefits	(10,313)	(8,007)
Deferred revenue	2,885	1,667
Accrued expenses and other current liabilities	494	(4,922)
Operating lease liability	(4,540)	(2,181)
Other noncurrent liabilities	248	357
Net cash used in operating activities	(15,651)	(37,765)
Investing activities:
Purchases of property and equipment	(29,915)	(55,355)
Purchase of intangible assets	(723)	0
Purchase of marketable securities	0	(271,547)
Proceeds from sales of marketable securities	94,947	32,693
Proceeds from maturities of marketable securities	51,185	9,124
Net cash provided by (used in) investing activities	115,494	(285,085)
Financing activities:
Payments on financing arrangement	(5,814)	(5,409)
Issuance of common stock from exercise of stock options and employee stock purchase plan purchases	9,496	14,186
Net cash provided by financing activities	3,682	8,777
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(25)	(210)
Net increase (decrease) in cash, cash equivalents, and restricted cash	103,500	(314,283)
Cash, cash equivalents, and restricted cash at beginning of period	227,353	596,073
Cash, cash equivalents, and restricted cash at end of period	330,853	281,790
Supplemental disclosures of cash flow information:
Cash paid for interest	436	841
Cash paid for taxes	3,852	3,319
Noncash investing and financing activities:
Purchases of property and equipment included in accounts payable and accrued expenses and other current liabilities	9,317	26,679
Right-of-use assets obtained in exchange for new operating lease liabilities	6,893	16,562
Contingent consideration payable from business acquisition	$ 0	$ 1,500

XML

Description of Business and Basis of Presentation

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business and Basis of Presentation

Description of Business and Basis of Presentation

Organization and Description of Business

10x Genomics, Inc. (the “Company”) is a life sciences technology company focused on building innovative products and solutions to interrogate, understand and master biological systems at resolution and scale that matches the complexity of biology. The Company’s integrated solutions include the Company’s Chromium X Series and Chromium Connect instruments, which the Company refers to as “Chromium instruments,” the Company's Visium CytAssist and Xenium Analyzer instruments, which the Company refers to as “Spatial instruments,” and the Company’s proprietary microfluidic chips, slides, reagents and other consumables for the Company's Chromium, Visium and Xenium solutions, which the Company refers to as “consumables.” The Company bundles its software with these products to guide customers through the workflow, from sample preparation through analysis and visualization. The Company was incorporated in the state of Delaware in July 2012 and began commercial and manufacturing operations and selling its instruments and consumables in 2015. The Company is headquartered in Pleasanton, California and has wholly-owned subsidiaries in Asia, Europe and North America.

Basis of Presentation

The accompanying condensed consolidated financial statements, which include the Company’s accounts and the accounts of its wholly-owned subsidiaries, are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The condensed consolidated balance sheets at December 31, 2022 have been derived from the audited consolidated financial statements of the Company at that date. Certain information and footnote disclosures typically included in the Company’s audited consolidated financial statements have been condensed or omitted. The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the Company’s financial position, results of operations, comprehensive loss and cash flows for the periods presented, but are not necessarily indicative of the results of operations to be anticipated for any future annual or interim period. All intercompany transactions and balances have been eliminated. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

The accompanying unaudited condensed consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2022 included in the Company's Annual Report on Form 10-K filed with the SEC on February 16, 2023 (our "Annual Report").

XML

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

There were no material changes in the Company's significant accounting policies during the six months ended June 30, 2023. See Note 2 – Summary of Significant Accounting Policies to the consolidated financial statements included in the Company's Annual Report for information regarding the Company's significant accounting policies.

Revenue Recognition

The Company generates revenue from sales of products and services, and its products consist of instruments and consumables. Revenue from product sales is recognized when control of the product is transferred, which is generally upon shipment to the customer. Instrument service agreements, which relate to extended warranties, are typically entered into for one-year terms, following the expiration of the standard one-year warranty period. Revenue for extended warranties is recognized ratably over the term of the extended warranty period as a stand ready performance obligation. Revenue is recorded net of discounts, distributor commissions and sales taxes collected on behalf of governmental authorities. Customers are invoiced generally upon shipment, or upon order for services, and payment is typically due within 45 days. Cash received from customers in advance of product shipment or providing services is recorded as a contract liability. The Company’s contracts with its customers generally do not include rights of return or a significant financing component.

The Company regularly enters into contracts that include various combinations of products and services which are generally distinct and accounted for as separate performance obligations. The transaction price is allocated to each performance obligation in proportion to its standalone selling price. The Company determines standalone selling price using average selling

prices with consideration of current market conditions. If the product or service has no history of sales or if the sales volume is not sufficient, the Company relies upon prices set by management, adjusted for applicable discounts.

Net Loss Per Share

Net loss per share is computed using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights and sharing of losses, of the Class A common stock and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of losses are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis.

Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period, adjusted for outstanding shares that are subject to repurchase.

For the calculation of diluted net loss per share, basic net loss per share is adjusted by the effect of dilutive securities including awards under the Company’s equity compensation plans. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding. For periods in which the Company reports net losses, diluted net loss per share is the same as basic net loss per share because potentially dilutive shares of common stock are not assumed to have been issued if their effect is anti-dilutive.

XML

Other Financial Statement Information

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Other Financial Statement Information

Other Financial Statement Information

Available-for-sale Securities

Available-for-sale securities consisted of the following (in thousands):

	June 30, 2023								December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Fair Value Measurement
Cash equivalents:
Money market funds	$	315,407	$	—	$	—	$	315,407	$	163,184	$	—	$	—	$	163,184	Level 1
Marketable securities:
Corporate debt securities	20,209		—		(234)		19,975		153,794		4		(2,768)		151,030		Level 2
Government debt securities	42,611		—		(623)		41,988		54,136		—		(1,247)		52,889		Level 2
Asset-backed securities	3,591		—		(48)		3,543		6,424		—		(105)		6,319		Level 2
Total available-for-sale securities	$	381,818	$	—	$	(905)	$	380,913	$	377,538	$	4	$	(4,120)	$	373,422

The contractual maturities of marketable securities as of June 30, 2023 were as follows (in thousands):

	Fair Value
Due in one year or less	$	59,716
Due after one year to five years	5,790
Total marketable securities	$	65,506

The Company incurred no material gross realized gains or losses from available-for-sales debt securities during the three months ended June 30, 2023 and three and six months ended June 30, 2022. During the six months ended June 30, 2023, the Company incurred gross realized losses of $1.7 million and no gross realized gains from the sale of available-for-sales debt

securities. Realized gains (losses) on the sale of marketable securities are recorded in “Other expense, net” in the condensed consolidated statements of operations.

The available-for-sale debt securities are subject to a periodic impairment review. For investments in an unrealized loss position, the Company determines whether a credit loss exists by considering information about the collectability of the instrument, current market conditions and reasonable and supportable forecasts of economic conditions. The Company recognizes an allowance for credit losses, up to the amount of the unrealized loss when appropriate, and writes down the amortized cost basis of the investment if it is more likely than not that the Company will be required or will intend to sell the investment before recovery of its amortized cost basis. Allowances for credit losses and write-downs are recognized in “Other expense, net,” and unrealized losses not related to credit losses are recognized in “Accumulated other comprehensive loss.” There are no allowances for credit losses for the periods presented. As of June 30, 2023, the gross unrealized losses on available-for-sale securities are related to market interest rate changes and not attributable to credit.

Inventory

Inventory was comprised of the following (in thousands):

	June 30, 2023		December 31, 2022
Purchased materials	$	37,942	$	34,497
Work in progress	24,098		24,650
Finished goods	21,647		22,482
Inventory	$	83,687	$	81,629

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	June 30, 2023		December 31, 2022
Land	$	36,801	$	36,780
Building	137,167		—
Laboratory equipment and machinery	63,180		54,658
Computer equipment and software	15,862		12,565
Furniture and fixtures	10,847		9,642
Leasehold improvements	92,783		91,518
Construction in progress	13,801		152,995
Total property and equipment	370,441		358,158
Less: accumulated depreciation and amortization	(85,528)		(68,830)
Property and equipment, net	$	284,913	$	289,328

Accrued Compensation and Related Benefits

Accrued compensation and related benefits were comprised of the following as of the dates indicated (in thousands):

	June 30, 2023		December 31, 2022
Accrued payroll and related costs	$	2,965	$	2,052
Accrued bonus	10,770		17,081
Accrued commissions	5,286		5,143
Accrued acquisition-related compensation	—		5,470
Other	3,351		2,929
Accrued compensation and related benefits	$	22,372	$	32,675

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities were comprised of the following as of the dates indicated (in thousands):

	June 30, 2023		December 31, 2022
Accrued legal and related costs	$	3,884	$	3,102
Accrued license fee	—		6,231
Accrued royalties for licensed technologies	4,942		4,707
Accrued property and equipment	9,094		26,750
Accrued professional services	6,579		5,180
Product warranties	3,941		3,023
Taxes payable	2,323		4,079
Other	3,325		6,707
Accrued expenses and other current liabilities	$	34,088	$	59,779

Product Warranties

Changes in the reserve for product warranties were as follows for the periods indicated (in thousands):

	Six Months Ended June 30,
	2023		2022
Beginning of period	$	3,023	$	994
Amounts charged to cost of revenue	3,833		1,983
Repairs and replacements	(2,915)		(1,547)
End of period	$	3,941	$	1,430

Revenue and Deferred Revenue

As of June 30, 2023, the aggregate amount of remaining performance obligations related to separately sold extended warranty service agreements, or allocated amounts for extended warranty service agreements bundled with sales of instruments, was $13.9 million, of which approximately $9.2 million is expected to be recognized to revenue in the next 12 months, with the remainder thereafter. The contract liabilities of $13.9 million and $11.0 million as of June 30, 2023 and December 31, 2022, respectively, consisted of deferred revenue related to extended warranty service agreements.

The following revenue recognized for the periods were included in contract liabilities as of December 31, 2022 and December 31, 2021, respectively (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Deferred revenue recognized	$	1,856	$	1,294	$	3,963	$	2,897

The following table represents revenue by source for the periods indicated (in thousands). Spatial products include the Company's Visium and Xenium products:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Instruments
Chromium	$	12,859	$	14,047	$	24,485	$	28,373
Spatial	18,096		689		25,646		792
Total instruments revenue	30,955		14,736		50,131		29,165
Consumables
Chromium	100,794		91,048		201,890		182,327
Spatial	11,694		6,886		22,976		13,557
Total consumables revenue	112,488		97,934		224,866		195,884
Services	3,376		1,939		6,107		4,056
Total revenue	$	146,819	$	114,609	$	281,104	$	229,105

The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Americas
United States	$	88,394	$	69,373	$	164,675	$	126,814
Americas (excluding United States)	3,149		1,515		5,664		3,761
Total Americas	91,543		70,888		170,339		130,575
Europe, Middle East and Africa	31,246		25,608		59,668		46,140
Asia-Pacific
China¹	12,755		9,984		26,786		31,766
Asia-Pacific (excluding China)	11,275		8,129		24,311		20,624
Total Asia-Pacific	24,030		18,113		51,097		52,390
Total Revenue	$	146,819	$	114,609	$	281,104	$	229,105

1 Includes Hong Kong effective from the first quarter of 2023. Comparative periods have been adjusted for this inclusion.

XML

Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Lease Agreements

The Company leases office, laboratory, manufacturing and distribution space in various locations worldwide. On November 6, 2020, the Company entered into a Master Lease Agreement ("MLA"), consisting of various lease components, to lease additional office building space near the Company's Pleasanton, California headquarters. All of the lease components related to the MLA have commenced and the MLA is expected to terminate on June 30, 2033.

Future net lease payments related to the Company’s operating lease liabilities as of June 30, 2023 is as follows (in thousands):

	Operating Leases
2023 (excluding the six months ended June 30, 2023)	$	6,656
2024	16,354
2025	15,259
2026	16,014
2027	15,436
Thereafter	56,390
Total lease payments	$	126,109
Less: imputed interest	(26,492)
Present value of operating lease liabilities	$	99,617
Operating lease liabilities, current	$	9,286
Operating lease liabilities, noncurrent	90,331
Total operating lease liabilities	$	99,617

The following table summarizes additional information related to operating leases as of June 30, 2023:

	June 30, 2023		December 31, 2022
Weighted-average remaining lease term	7.9 years		8.1 years
Weighted-average discount rate	5.8	%	5.5	%

During the three months ended June 30, 2023, the Company made the decision to vacate some of its leased office space for the remaining lease term through 2025 and entered into an agreement to sublease certain portions of the vacated office space. In connection with this decision and based upon the expected cash flow from the sublease, the Company recognized $2.8 million of impairment loss associated with these long-lived assets within selling, general and administrative expenses on the condensed consolidated statement of operations during the three and six months ended June 30, 2023.

Litigation

The Company is regularly subject to lawsuits, claims, arbitration proceedings, administrative actions and other legal and regulatory proceedings involving intellectual property disputes, commercial disputes, competition and other matters, and the Company may become subject to additional types of lawsuits, claims, arbitration proceedings, administrative actions, government investigations and legal and regulatory proceedings in the future.

NanoString

On May 6, 2021, the Company filed suit against NanoString Technologies, Inc. ("NanoString") in the U.S. District Court for the District of Delaware alleging that NanoString's GeoMx Digital Spatial Profiler and associated instruments and reagents infringe U.S. Patent Nos. 10,472,669, 10,662,467, 10,961,566, 10,983,113 and 10,996,219 (the "GeoMx Action"). On May 19, 2021, the Company filed an amended complaint additionally alleging that the GeoMx products infringe U.S. Patent Nos. 11,001,878 and 11,008,607. On May 4, 2022, the Company filed an amended complaint in the GeoMx Action additionally

alleging that the GeoMx products infringe U.S. Patent No. 11,293,917 and withdrawing the Company's claim of infringement of U.S. Patent No. 10,662,467. The Company seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to NanoString's making, using, selling, offering to sell, exporting and/or importing in the United States the GeoMx Digital Spatial Profiler and associated instruments and reagents. NanoString filed its answer to the GeoMx Action on May 18, 2022. A Markman hearing was held on February 17, 2023 and the Court issued its claim construction order on February 28, 2023. Trial is scheduled for November 2023.

On February 28, 2022, the Company filed a second suit against NanoString in the U.S. District Court for the District of Delaware alleging that NanoString's CosMx Spatial Molecular Imager and associated instruments, reagents and services infringe U.S. Patent Nos. 10,227,639 and 11,021,737 (the "CosMx Action"). On May 12, 2022, the Company filed an amended complaint in the CosMx Action additionally alleging that the CosMx products infringe U.S. Patent Nos. 11,293,051, 11,293,052 and 11,293,054. NanoString filed its answer to the CosMx Action on May 26, 2022. On March 1, 2023, the Company filed a second amended complaint additionally alleging that the CosMx products infringe U.S. Patent No. 11,542,554. The Company seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to NanoString's making, using, selling, offering to sell, exporting and/or importing in the United States the CosMx Spatial Molecular Imager and associated instruments, reagents and services. NanoString filed its answer to the second amended complaint on March 22, 2023. Discovery is in progress. A Markman hearing is scheduled for December 2023 and trial is scheduled for September 2024.

On August 16, 2022, NanoString filed a counterclaim in the CosMx Action alleging that the Company's Visium products infringe U.S. Patent No. 11,377,689. The Company filed its answer to NanoString's counterclaim in the CosMx Action on August 30, 2022. On November 23, 2022, the Company moved to sever claims relating to NanoString’s assertion of U.S. Patent No. 11,377,689 and consolidate those claims with the patent case NanoString filed against the Company on October 20, 2022 (discussed below). On January 24, 2023, the Court granted the Company's motion.

On April 27, 2023, NanoString filed a motion in the CosMx Action to add antitrust, unfair competition and contract counterclaims. NanoString seeks, among other relief, injunctive relief (including that the Company grant NanoString a license to the patents that the Company asserted against NanoString in the CosMx Action) and unspecified damages (including attorney's fees). On July 10, 2023, the Court denied NanoString’s motion to add a contract counterclaim but otherwise granted the motion. On May 24, 2023, NanoString filed a motion to bifurcate its amended counterclaims and a motion for expedited discovery. On June 6, 2023, the Court denied NanoString’s motion to bifurcate and granted its motion for expedited discovery. The Company believes NanoString’s claims are meritless and intends to vigorously defend itself.

On October 20, 2022, NanoString filed suit against the Company in the U.S. District Court for the District of Delaware alleging that the Company's Visium products infringe U.S. Patent No. 11,473,142, a continuation of U.S. Patent No. 11,377,689 (the "NanoString Action"). NanoString seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to the Company's making, using, selling, offering to sell, exporting and/or importing in the United States Visium products and associated instruments, reagents and services. On January 24, 2023, the Court severed NanoString’s claims with respect to U.S. Patent No. 11,377,689 from the CosMx Action and consolidated those claims with this action. Discovery is in progress. NanoString filed an amended complaint on January 27, 2023. The Company filed an answer to the NanoString Action on February 10, 2023. A Markman hearing is scheduled for December 2023 and trial is scheduled for December 2024. The Company believes NanoString's claims in the NanoString Action are meritless and intends to vigorously defend itself.

On March 9, 2022, the Company filed suit in the Munich Regional Court in Germany alleging that NanoString's CosMx Spatial Molecular Imager and associated instruments, reagents and services infringe EP Patent No. 2794928B1 (the "EP928 Patent") (the "Germany CosMx Action"). A hearing on infringement was held on March 23, 2023. On May 17, 2023, the Munich Regional Court found that the CosMx products infringe the EP928 patent and issued a permanent injunction requiring NanoString to stop selling and supplying CosMx instruments and reagents for RNA detection in Germany. The injunction took effect on June 1, 2023. On May 25, 2023, NanoString filed an appeal of the German CosMx Action in the Munich Higher Regional Court. A hearing date has not yet been set for this appeal. On July 29, 2022, NanoString filed a nullity action with the German Federal Patent Court challenging the validity of the EP928 Patent. On February 10, 2023, the Federal Patent Court issued a preliminary opinion upholding the validity of certain claims of the EP928 Patent directed to in situ analysis. A hearing on validity is scheduled before the Federal Patent Court in May 2024 and a decision is expected around the end of 2024.

On June 1, 2023, the Company filed suit in the Munich Local Division of the Unified Patent Court (“UPC”) alleging that NanoString's CosMx Spatial Molecular Imager and associated instruments, reagents and services infringe the EP928 patent and EP Patent No. 4108782 (the “EP782 patent”) (the “UPC CosMx Actions”). In the UPC CosMx Actions, the Company seeks

preliminary injunctions with respect to NanoString’s CosMx instruments and reagents for RNA detection in the jurisdictions of the UPC in which the EP928 and EP782 patents are in effect. Preliminary injunction hearings are scheduled for the EP928 and EP782 patents on September 19, 2023 and September 5, 2023, respectively.

On July 18, 2023, NanoString filed a European opposition against the EP782 patent. No schedule has yet been set for this opposition.

On July 27, 2023, NanoString filed a revocation action against the EP928 patent in the Munich Central Division of the UPC. No schedule has yet been set for this action.

Vizgen

In May 2022, the Company filed suit against Vizgen, Inc. ("Vizgen") in the U.S. District Court for the District of Delaware alleging that Vizgen’s MERSCOPE Platform and workflow and Vizgen’s Lab Services program, including associated instruments and reagents, infringe U.S. Patent Nos. 11,021,737, 11,293,051, 11,293,052, 11,293,054 and 11,299,767. The Company seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to Vizgen's making, using, selling, offering to sell, exporting and/or importing in the United States the MERSCOPE Platform and workflow and Vizgen's Lab Services program, including associated instruments and reagents. On July 25, 2022, Vizgen filed a motion to dismiss the Company's claims for willful and indirect infringement, which the Court denied on September 19, 2022. Discovery is in progress. A Markman hearing is scheduled for December 2023 and trial is scheduled for November 2024.

On August 30, 2022, Vizgen filed its answer and counterclaims alleging that the Company's Xenium products infringes U.S. Patent No. 11,098,303. Vizgen seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to the Company's making, using, selling, offering to sell, exporting and/or importing in the United States Xenium products, including associated instruments and reagents. Vizgen also filed counterclaims alleging that the Company tortiously interfered with Vizgen's contractual and business relationship with Harvard and that the Company engaged in unfair practices under Massachusetts state law. On October 27, 2022, the Company filed a partial answer and motion to dismiss the infringement counterclaim and the tort counterclaims. On February 2, 2023, the Company's motion to dismiss was denied.

On March 15, 2023, the Company filed an amended complaint additionally alleging that the MERSCOPE Platform and workflow and Vizgen’s Lab Services program infringe U.S. Patent No. 11,549,136 and withdrawing its claim of infringement of U.S. Patent No. 11,293,054. On April 17, 2023, Vizgen filed its answer adding antitrust, unfair competition, tort and contract counterclaims. Vizgen seeks, among other relief, injunctive relief (including that the Company grant Vizgen a license to the patents that the Company asserted against Vizgen) and unspecified damages (including attorneys' fees). On May 18, 2023, the Company filed a motion to dismiss Vizgen’s amended counterclaims. On July 10, 2023, the Court granted our motion to dismiss Vizgen’s contract counterclaim but otherwise denied our motion to dismiss. The Company believes Vizgen’s claims are meritless and intends to vigorously defend itself.

On June 1, 2023, the Company filed suit in the Hamburg Local Division of the Unified Patent Court alleging that Vizgen’s MERSCOPE products infringe the EP782 patent. A hearing date has not yet been set. The Company seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to Vizgen’s MERSCOPE products in the jurisdictions of the UPC in which the EP782 patent is in effect.

Parse

On August 24, 2022, the Company filed suit against Parse Biosciences, Inc. ("Parse") in the U.S. District Court for the District of Delaware alleging that Parse’s Evercode Whole Transcriptomics and ATAC-seq products infringe U.S. Patent Nos. 10,155,981, 10,697,013, 10,240,197, 10,150,995, 10,619,207 and 10,738,357. The Company seeks, among other relief, injunctive relief and unspecified damages (including attorneys’ fees) in relation to Parse's making, using, selling, offering to sell, exporting and/or importing in the United States the Evercode Whole Transcriptomics and ATAC-seq products. On October 17, 2022, Parse filed a motion to dismiss alleging that the asserted claims are directed to patent ineligible subject matter. The Court held a hearing on the motion to dismiss on November 22, 2022, and supplemental briefing was submitted on December 15, 2022. The Court has not yet ruled on the motion. Discovery is in progress. A Markman hearing is scheduled for February 2024 and trial is scheduled for December 2024.

Between April 20 and June 21, 2023, Parse filed petitions for Inter Partes Review of all of the patents asserted.

XML

Capital Stock

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Capital Stock

Capital Stock

As of June 30, 2023, the number of shares of Class A common stock and Class B common stock issued and outstanding were 103,266,602 and 14,056,833, respectively.

The following table represents the number of shares of Class B common stock converted to shares of Class A common stock upon the election of the holders of such shares during the periods:

	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Class B common stock converted to Class A common stock	4,010,422	579,210	4,610,422	779,210

XML

Equity Incentive Plans

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Equity Incentive Plans

Equity Incentive Plans

Stock-based Compensation

The Company recorded stock-based compensation expense in the condensed consolidated statement of operations for the periods presented as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cost of revenue	$	1,835	$	1,453	$	3,296	$	2,467
Research and development	19,560		15,579		37,340		26,870
Selling, general and administrative	24,301		19,281		47,161		33,023
Total stock-based compensation expense	$	45,696	$	36,313	$	87,797	$	62,360

Restricted Stock Units

Restricted stock unit activity for the six months ended June 30, 2023 is as follows:

	Restricted Stock Units	Weighted-Average Grant Date Fair Value (per share)
Outstanding as of December 31, 2022	5,836,192	$	52.21
Granted	1,948,808	50.68
Vested	(922,619)	61.97
Cancelled	(428,549)	57.69
Outstanding as of June 30, 2023	6,433,832	$	49.98

Stock Options

Stock option activity for the six months ended June 30, 2023 is as follows:

	Stock Options	Weighted-Average Exercise Price
Outstanding as of December 31, 2022	7,964,557	$	37.10
Granted	300,870	50.80
Exercised	(1,088,527)	5.02
Cancelled and forfeited	(169,273)	82.96
Outstanding as of June 30, 2023	7,007,627	$	41.56

Market-based Performance Stock Awards

In March 2023, the Company granted 172,842 performance restricted stock unit awards (PSAs) under the 2019 Plan to certain members of management, which are subject to the achievement of certain stock price thresholds established by the Company's Compensation Committee of the Board of Directors.

The PSAs each vest in equal installments upon the achievement of stock price thresholds of $72.14, $96.19 and $120.24 respectively, calculated based on the volume-weighted average price per share of the Company’s Class A common stock over the immediately trailing 20 trading day period for each respective threshold. The stock price thresholds can be met any time prior to the fifth anniversary of the date of grant. The vesting of the PSAs can also be triggered upon certain change in control events and achievement of certain change in control price thresholds or in the event of death or disability. The weighted-average grant date fair value of the PSAs was $43.13. Stock-based compensation expense recognized for these market-based awards was approximately $1.8 million and $2.0 million for the three and six months ended June 30, 2023.

The Company estimates the fair values of shares granted under the PSAs using a Monte Carlo simulation model with the following assumptions:

Expected volatility	71%
Risk-free interest rate	3.7%
Expected dividend	—%

In September 2022, the Company granted 709,025 PSAs including performance stock options and RSUs under the 2019 Plan to certain members of management, which are subject to the achievement of certain stock price thresholds established by the Company's Compensation Committee of the Board of Directors.

As of June 30, 2023, none of the stock price thresholds had been met for any of the PSAs, resulting in no shares vesting or becoming exercisable.

2019 Employee Stock Purchase Plan

A total of 3,486,671 shares of Class A common stock were reserved for issuance under the 2019 Employee Stock Purchase Plan ("ESPP"). The price at which Class A common stock is purchased under the ESPP is equal to 85% of the fair market value of the common stock on the first day of the offering period or purchase date, whichever is lower.

During the three months ended June 30, 2023 and 2022, 117,280 and 91,871 shares of Class A common stock, respectively, were issued under the ESPP. There were no shares of Class A common stock issued under the ESPP during the three months ended March 31, 2023 and 2022. As of June 30, 2023, there were 2,991,320 shares available for issuance under the ESPP.

XML

Net Loss Per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Net Loss Per Share

Net Loss Per Share

The following outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect:

	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Stock options to purchase common stock	7,007,627	8,159,680	7,007,627	8,159,680
Restricted stock units	6,433,832	2,565,452	6,433,832	2,565,452
Shares committed under ESPP	34,718	19,611	34,718	19,611
Shares subject to repurchase	—	6,250	—	6,250
Total	13,476,177	10,750,993	13,476,177	10,750,993

XML

Subsequent Event	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventIn January 2023, the Company signed an agreement to acquire certain intangible and other assets for an upfront payment of $10.0 million relating to an intellectual property license. In July 2023, the transaction closed and the Company paid $10.0 million upon acquiring the assets. Under the agreement, the Company is obligated to provide additional cash consideration if certain technology development milestones are met. In July 2023, one of the development milestones was met and triggered a $10.0 million payment. Up to $26.3 million of additional cash consideration is due if certain technology development milestones are met. In addition, the Company expects to pay additional cash consideration tied to future sales milestones if such milestones are met.

XML

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net loss	$ (62,414)	$ (50,747)	$ (64,458)	$ (42,413)	$ (113,161)	$ (106,871)

XML

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

XML

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying condensed consolidated financial statements, which include the Company’s accounts and the accounts of its wholly-owned subsidiaries, are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The condensed consolidated balance sheets at December 31, 2022 have been derived from the audited consolidated financial statements of the Company at that date. Certain information and footnote disclosures typically included in the Company’s audited consolidated financial statements have been condensed or omitted. The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the Company’s financial position, results of operations, comprehensive loss and cash flows for the periods presented, but are not necessarily indicative of the results of operations to be anticipated for any future annual or interim period. All intercompany transactions and balances have been eliminated. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

Revenue Recognition

Revenue Recognition

The Company generates revenue from sales of products and services, and its products consist of instruments and consumables. Revenue from product sales is recognized when control of the product is transferred, which is generally upon shipment to the customer. Instrument service agreements, which relate to extended warranties, are typically entered into for one-year terms, following the expiration of the standard one-year warranty period. Revenue for extended warranties is recognized ratably over the term of the extended warranty period as a stand ready performance obligation. Revenue is recorded net of discounts, distributor commissions and sales taxes collected on behalf of governmental authorities. Customers are invoiced generally upon shipment, or upon order for services, and payment is typically due within 45 days. Cash received from customers in advance of product shipment or providing services is recorded as a contract liability. The Company’s contracts with its customers generally do not include rights of return or a significant financing component.

The Company regularly enters into contracts that include various combinations of products and services which are generally distinct and accounted for as separate performance obligations. The transaction price is allocated to each performance obligation in proportion to its standalone selling price. The Company determines standalone selling price using average selling

prices with consideration of current market conditions. If the product or service has no history of sales or if the sales volume is not sufficient, the Company relies upon prices set by management, adjusted for applicable discounts.

Net Loss Per Share

Net Loss Per Share

Net loss per share is computed using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights and sharing of losses, of the Class A common stock and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of losses are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis.

Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period, adjusted for outstanding shares that are subject to repurchase.

For the calculation of diluted net loss per share, basic net loss per share is adjusted by the effect of dilutive securities including awards under the Company’s equity compensation plans. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding. For periods in which the Company reports net losses, diluted net loss per share is the same as basic net loss per share because potentially dilutive shares of common stock are not assumed to have been issued if their effect is anti-dilutive.

XML

Other Financial Statement Information (Tables)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Marketable Securities

Available-for-sale securities consisted of the following (in thousands):

	June 30, 2023								December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Fair Value Measurement
Cash equivalents:
Money market funds	$	315,407	$	—	$	—	$	315,407	$	163,184	$	—	$	—	$	163,184	Level 1
Marketable securities:
Corporate debt securities	20,209		—		(234)		19,975		153,794		4		(2,768)		151,030		Level 2
Government debt securities	42,611		—		(623)		41,988		54,136		—		(1,247)		52,889		Level 2
Asset-backed securities	3,591		—		(48)		3,543		6,424		—		(105)		6,319		Level 2
Total available-for-sale securities	$	381,818	$	—	$	(905)	$	380,913	$	377,538	$	4	$	(4,120)	$	373,422

Schedule of Debt Securities, Available-for-sale

The contractual maturities of marketable securities as of June 30, 2023 were as follows (in thousands):

	Fair Value
Due in one year or less	$	59,716
Due after one year to five years	5,790
Total marketable securities	$	65,506

Schedule of Inventory

Inventory was comprised of the following (in thousands):

	June 30, 2023		December 31, 2022
Purchased materials	$	37,942	$	34,497
Work in progress	24,098		24,650
Finished goods	21,647		22,482
Inventory	$	83,687	$	81,629

Schedule of Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	June 30, 2023		December 31, 2022
Land	$	36,801	$	36,780
Building	137,167		—
Laboratory equipment and machinery	63,180		54,658
Computer equipment and software	15,862		12,565
Furniture and fixtures	10,847		9,642
Leasehold improvements	92,783		91,518
Construction in progress	13,801		152,995
Total property and equipment	370,441		358,158
Less: accumulated depreciation and amortization	(85,528)		(68,830)
Property and equipment, net	$	284,913	$	289,328

Schedule of Accrued Compensation and Related Benefits

Accrued compensation and related benefits were comprised of the following as of the dates indicated (in thousands):

	June 30, 2023		December 31, 2022
Accrued payroll and related costs	$	2,965	$	2,052
Accrued bonus	10,770		17,081
Accrued commissions	5,286		5,143
Accrued acquisition-related compensation	—		5,470
Other	3,351		2,929
Accrued compensation and related benefits	$	22,372	$	32,675

Schedule of Accrued Expense and Other Current Liabilities

Accrued expenses and other current liabilities were comprised of the following as of the dates indicated (in thousands):

	June 30, 2023		December 31, 2022
Accrued legal and related costs	$	3,884	$	3,102
Accrued license fee	—		6,231
Accrued royalties for licensed technologies	4,942		4,707
Accrued property and equipment	9,094		26,750
Accrued professional services	6,579		5,180
Product warranties	3,941		3,023
Taxes payable	2,323		4,079
Other	3,325		6,707
Accrued expenses and other current liabilities	$	34,088	$	59,779

Schedule of Changes in the Reserve for Product Warranties

Changes in the reserve for product warranties were as follows for the periods indicated (in thousands):

	Six Months Ended June 30,
	2023		2022
Beginning of period	$	3,023	$	994
Amounts charged to cost of revenue	3,833		1,983
Repairs and replacements	(2,915)		(1,547)
End of period	$	3,941	$	1,430

Schedule of Revenue of Recognized in Contract Liabilities

The following revenue recognized for the periods were included in contract liabilities as of December 31, 2022 and December 31, 2021, respectively (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Deferred revenue recognized	$	1,856	$	1,294	$	3,963	$	2,897

Schedule of Revenue by Source

The following table represents revenue by source for the periods indicated (in thousands). Spatial products include the Company's Visium and Xenium products:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Instruments
Chromium	$	12,859	$	14,047	$	24,485	$	28,373
Spatial	18,096		689		25,646		792
Total instruments revenue	30,955		14,736		50,131		29,165
Consumables
Chromium	100,794		91,048		201,890		182,327
Spatial	11,694		6,886		22,976		13,557
Total consumables revenue	112,488		97,934		224,866		195,884
Services	3,376		1,939		6,107		4,056
Total revenue	$	146,819	$	114,609	$	281,104	$	229,105

Schedule of Revenue by Geographic Location

The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Americas
United States	$	88,394	$	69,373	$	164,675	$	126,814
Americas (excluding United States)	3,149		1,515		5,664		3,761
Total Americas	91,543		70,888		170,339		130,575
Europe, Middle East and Africa	31,246		25,608		59,668		46,140
Asia-Pacific
China¹	12,755		9,984		26,786		31,766
Asia-Pacific (excluding China)	11,275		8,129		24,311		20,624
Total Asia-Pacific	24,030		18,113		51,097		52,390
Total Revenue	$	146,819	$	114,609	$	281,104	$	229,105

1 Includes Hong Kong effective from the first quarter of 2023. Comparative periods have been adjusted for this inclusion.

XML

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of Company's Operating Lease Liabilities

Future net lease payments related to the Company’s operating lease liabilities as of June 30, 2023 is as follows (in thousands):

	Operating Leases
2023 (excluding the six months ended June 30, 2023)	$	6,656
2024	16,354
2025	15,259
2026	16,014
2027	15,436
Thereafter	56,390
Total lease payments	$	126,109
Less: imputed interest	(26,492)
Present value of operating lease liabilities	$	99,617
Operating lease liabilities, current	$	9,286
Operating lease liabilities, noncurrent	90,331
Total operating lease liabilities	$	99,617

Schedule of Additional Information Related to Operating Leases

The following table summarizes additional information related to operating leases as of June 30, 2023:

	June 30, 2023		December 31, 2022
Weighted-average remaining lease term	7.9 years		8.1 years
Weighted-average discount rate	5.8	%	5.5	%

XML

Capital Stock (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Schedule of Common Stock Issued and Outstanding

The following table represents the number of shares of Class B common stock converted to shares of Class A common stock upon the election of the holders of such shares during the periods:

	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Class B common stock converted to Class A common stock	4,010,422	579,210	4,610,422	779,210

XML

Equity Incentive Plans (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Recorded Stock-based Compensation Expense in the Condensed Consolidated Statement of Operations

The Company recorded stock-based compensation expense in the condensed consolidated statement of operations for the periods presented as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cost of revenue	$	1,835	$	1,453	$	3,296	$	2,467
Research and development	19,560		15,579		37,340		26,870
Selling, general and administrative	24,301		19,281		47,161		33,023
Total stock-based compensation expense	$	45,696	$	36,313	$	87,797	$	62,360

Schedule of RSU activity

Restricted stock unit activity for the six months ended June 30, 2023 is as follows:

	Restricted Stock Units	Weighted-Average Grant Date Fair Value (per share)
Outstanding as of December 31, 2022	5,836,192	$	52.21
Granted	1,948,808	50.68
Vested	(922,619)	61.97
Cancelled	(428,549)	57.69
Outstanding as of June 30, 2023	6,433,832	$	49.98

Schedule of the Company's Stock Option Activity

Stock option activity for the six months ended June 30, 2023 is as follows:

	Stock Options	Weighted-Average Exercise Price
Outstanding as of December 31, 2022	7,964,557	$	37.10
Granted	300,870	50.80
Exercised	(1,088,527)	5.02
Cancelled and forfeited	(169,273)	82.96
Outstanding as of June 30, 2023	7,007,627	$	41.56

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions

The Company estimates the fair values of shares granted under the PSAs using a Monte Carlo simulation model with the following assumptions:

Expected volatility	71%
Risk-free interest rate	3.7%
Expected dividend	—%

XML

Net Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Shares of Common Stock Equivalents Excluded from Computation of Diluted Net Loss Per Share

The following outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect:

	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Stock options to purchase common stock	7,007,627	8,159,680	7,007,627	8,159,680
Restricted stock units	6,433,832	2,565,452	6,433,832	2,565,452
Shares committed under ESPP	34,718	19,611	34,718	19,611
Shares subject to repurchase	—	6,250	—	6,250
Total	13,476,177	10,750,993	13,476,177	10,750,993

XML

Summary of Significant Accounting Policies - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Revenue recognition, payment due period	45 days

XML

Other Financial Statement Information - Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Marketable Securities [Line Items]
Gross Unrealized Gains	$ 0	$ 4
Gross Unrealized Losses	(905)	(4,120)
Marketable securities, fair value	65,506
Total available-for-sale securities, amortized cost	381,818	377,538
Total available-for-sale securities, fair value	380,913	373,422
Money market funds | Level 1
Marketable Securities [Line Items]
Money market funds	315,407	163,184
Corporate debt securities | Level 2
Marketable Securities [Line Items]
Total marketable securities	20,209	153,794
Gross Unrealized Gains	0	4
Gross Unrealized Losses	(234)	(2,768)
Marketable securities, fair value	19,975	151,030
Government debt securities | Level 2
Marketable Securities [Line Items]
Total marketable securities	42,611	54,136
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(623)	(1,247)
Marketable securities, fair value	41,988	52,889
Asset-backed securities | Level 2
Marketable Securities [Line Items]
Total marketable securities	3,591	6,424
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(48)	(105)
Marketable securities, fair value	$ 3,543	$ 6,319

XML

Other Financial Statement Information - Contractual Maturities of Marketable Securities (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Fair Value
Due in one year or less	$ 59,716
Due after one year to five years	5,790
Total marketable securities	$ 65,506

XML

Other Financial Statement Information - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Concentration Risk [Line Items]
Gross realized loss	$ 0	$ 0	$ 1,700	$ 0
Gross realized gains	0	$ 0	0	$ 0
Transaction price allocated to remaining performance obligations	13,900		13,900
Deferred revenue	9,217		9,217		$ 7,867
Deferred revenue recognized	13,900		13,900		$ 11,000
Products and Services, Excluding Grant Revenue
Concentration Risk [Line Items]
Deferred revenue	$ 9,200		$ 9,200

XML

Other Financial Statement Information - Schedule of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Purchased materials	$ 37,942	$ 34,497
Work in progress	24,098	24,650
Finished goods	21,647	22,482
Inventory	$ 83,687	$ 81,629

XML

Other Financial Statement Information - Schedule Of Property Plant And Equipment (Detail) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 370,441	$ 358,158
Less: accumulated depreciation and amortization	(85,528)	(68,830)
Property and equipment, net	284,913	289,328
Land
Property, Plant and Equipment [Line Items]
Total property and equipment	36,801	36,780
Building
Property, Plant and Equipment [Line Items]
Total property and equipment	137,167	0
Laboratory equipment and machinery
Property, Plant and Equipment [Line Items]
Total property and equipment	63,180	54,658
Computer equipment and software
Property, Plant and Equipment [Line Items]
Total property and equipment	15,862	12,565
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	10,847	9,642
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	92,783	91,518
Construction in progress
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 13,801	$ 152,995

XML

Other Financial Statement Information - Schedule of Accrued Compensation and Related Benefits (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued payroll and related costs	$ 2,965	$ 2,052
Accrued bonus	10,770	17,081
Accrued commissions	5,286	5,143
Accrued acquisition-related compensation	0	5,470
Other	3,351	2,929
Accrued compensation and related benefits	$ 22,372	$ 32,675

XML

Other Financial Statement Information - Schedule of Accrued Expense And Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued legal and related costs	$ 3,884	$ 3,102
Accrued license fee	0	6,231
Accrued royalties for licensed technologies	4,942	4,707
Accrued property and equipment	9,094	26,750
Accrued professional services	6,579	5,180
Product warranties	3,941	3,023
Taxes payable	2,323	4,079
Other	3,325	6,707
Accrued expenses and other current liabilities	$ 34,088	$ 59,779

XML

Other Financial Statement Information - Schedule of Changes in the Reserve for Product Warranties (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Beginning of period	$ 3,023	$ 994
Amounts charged to cost of revenue	3,833	1,983
Repairs and replacements	(2,915)	(1,547)
End of period	$ 3,941	$ 1,430

XML

Other Financial Statement Information - Revenue Recognition (Details)	Jun. 30, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected period of revenue recognition	12 months

XML

Other Financial Statement Information - Schedule of Revenue of Recognized in Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue recognized	$ 1,856	$ 1,294	$ 3,963	$ 2,897

XML

Other Financial Statement Information - Schedule of Revenue by Source (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue from External Customer [Line Items]
Total revenue	$ 146,819	$ 114,609	$ 281,104	$ 229,105
Instruments
Revenue from External Customer [Line Items]
Total revenue	30,955	14,736	50,131	29,165
Chromium
Revenue from External Customer [Line Items]
Total revenue	12,859	14,047	24,485	28,373
Spatial
Revenue from External Customer [Line Items]
Total revenue	18,096	689	25,646	792
Consumables
Revenue from External Customer [Line Items]
Total revenue	112,488	97,934	224,866	195,884
Chromium
Revenue from External Customer [Line Items]
Total revenue	100,794	91,048	201,890	182,327
Spatial
Revenue from External Customer [Line Items]
Total revenue	11,694	6,886	22,976	13,557
Services
Revenue from External Customer [Line Items]
Total revenue	$ 3,376	$ 1,939	$ 6,107	$ 4,056

XML

Other Financial Statement Information - Schedule of Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 146,819	$ 114,609	$ 281,104	$ 229,105
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	91,543	70,888	170,339	130,575
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	88,394	69,373	164,675	126,814
Americas (excluding United States)
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	3,149	1,515	5,664	3,761
Europe, Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	31,246	25,608	59,668	46,140
Asia-Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	24,030	18,113	51,097	52,390
China
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	12,755	9,984	26,786	31,766
Asia-Pacific (excluding China)
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 11,275	$ 8,129	$ 24,311	$ 20,624

XML

Commitments and Contingencies - Schedule of Company's Operating Lease Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Operating Leases
2023 (excluding the six months ended June 30, 2023)	$ 6,656
2024	16,354
2025	15,259
2026	16,014
2027	15,436
Thereafter	56,390
Total lease payments	126,109
Less: imputed interest	(26,492)
Present value of operating lease liabilities	99,617
Operating lease liabilities, current	9,286	$ 9,037
Operating lease liabilities, noncurrent	90,331	$ 86,139
Total operating lease liabilities	$ 99,617

XML

Commitments and Contingencies - Schedule of Additional Information Related to Operating Leases (Detail)	Jun. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Weighted-average remaining lease term	7 years 10 months 24 days	8 years 1 month 6 days
Weighted-average discount rate	5.80%	5.50%

XML

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Impairment loss of long-lived assets	$ 2,800	$ 2,785	$ 0

XML

Capital Stock - Additional Information (Detail)	Jun. 30, 2023 shares
Common Class A
Class of Stock [Line Items]
Common stock shares issued (in shares)	103,266,602
Common stock shares outstanding (in shares)	103,266,602
Common Class B
Class of Stock [Line Items]
Common stock shares issued (in shares)	14,056,833
Common stock shares outstanding (in shares)	14,056,833

XML

Capital Stock - Schedule of Common Stock Issued and Outstanding (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Shares Converted From Class B to Class A
Conversion of Stock [Line Items]
Conversion of stock, shares converted (in shares)	4,010,422	579,210	4,610,422	779,210

XML

Equity Incentive Plans - Schedule of Recorded Stock-Based Compensation Expense in the Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Payment Arrangement, Expensed [Line Items]
Stock-based compensation expense	$ 45,696	$ 36,313	$ 87,797	$ 62,360
Cost of revenue
Share-based Payment Arrangement, Expensed [Line Items]
Stock-based compensation expense	1,835	1,453	3,296	2,467
Research and development
Share-based Payment Arrangement, Expensed [Line Items]
Stock-based compensation expense	19,560	15,579	37,340	26,870
Selling, general and administrative
Share-based Payment Arrangement, Expensed [Line Items]
Stock-based compensation expense	$ 24,301	$ 19,281	$ 47,161	$ 33,023

XML

Equity Incentive Plans - Schedule of RSU Activity (Detail)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Restricted Stock Units
Beginning balance (in shares) | shares	5,836,192
Granted (in shares) | shares	1,948,808
Vested (in shares) | shares	(922,619)
Cancelled (in shares) | shares	(428,549)
Ending balance (in shares) | shares	6,433,832
Weighted-Average Grant Date Fair Value (per share)
Beginning balance (in dollars per share) | $ / shares	$ 52.21
Granted (in dollars per share) | $ / shares	50.68
Vested (in dollars per share) | $ / shares	61.97
Cancelled (in dollars per share) | $ / shares	57.69
Ending balance (in dollars per share) | $ / shares	$ 49.98

XML

Equity Incentive Plans - Schedule of Company's Stock Option Activity (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Stock Options
Beginning balance (in shares) | shares	7,964,557
Granted (in shares) | shares	300,870
Exercised (in shares) | shares	(1,088,527)
Cancelled (in shares) | shares	(169,273)
Ending balance (in shares) | shares	7,007,627
Weighted-Average Exercise Price
Beginning balance (in dollars per share) | $ / shares	$ 37.10
Granted (in dollars per share) | $ / shares	50.80
Exercised (in dollars per share) | $ / shares	5.02
Cancelled (in dollars per share) | $ / shares	82.96
Ending balance (in dollars per share) | $ / shares	$ 41.56

XML

Equity Incentive Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended				6 Months Ended
	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units, granted (in shares)							1,948,808
Weighted-average grant date fair value, granted (in dollars per share)							$ 50.68
Market-based Performance Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation arrangement by predetermined share price trading day							20 days
Weighted-average grant date fair value, granted (in dollars per share)							$ 43.13
Share based payment arrangement recognized			$ 1.8				$ 2.0
Market-based Performance Awards | Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from issuance of stock (in dollars per share)							$ 72.14
Market-based Performance Awards | Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from issuance of stock (in dollars per share)							96.19
Market-based Performance Awards | Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from issuance of stock (in dollars per share)							$ 120.24
Performance Stock Options and Restricted stock Units | 2019 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units, granted (in shares)	172,842	709,025
Employee Stock | 2019 Plan | Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement percent							85.00%
Employee Stock | 2019 Employee Stock Purchase Plan | Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)			2,991,320				2,991,320	3,486,671
Shares issued in period for previously outstanding awards (in shares)			117,280	0	91,871	0

XML

Equity Incentive Plans - Fair Values Of Shares Under The Performance Stock Options (Details) - Performance Stock Awards	6 Months Ended
	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	71.00%
Risk-free interest rate	3.70%
Expected dividend	0.00%

XML

Net Loss Per Share - Shares of Common Stock Equivalents Were Excluded From The Computation of Diluted Net Loss Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	13,476,177	10,750,993	13,476,177	10,750,993
Stock options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	7,007,627	8,159,680	7,007,627	8,159,680
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	6,433,832	2,565,452	6,433,832	2,565,452
Shares committed under ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	34,718	19,611	34,718	19,611
Shares subject to repurchase
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	0	6,250	0	6,250

XML

Subsequent Events (Details) - USD ($) $ in Thousands	1 Months Ended		6 Months Ended
	Jul. 31, 2023	Jan. 31, 2023	Jun. 30, 2023	Jun. 30, 2022
Subsequent Event [Line Items]
Upfront payment			$ 723	$ 0
Series of Individually Immaterial Asset Acquisitions
Subsequent Event [Line Items]
Upfront payment		$ 10,000
Series of Individually Immaterial Asset Acquisitions | Subsequent Event
Subsequent Event [Line Items]
Paid for asset acquisition	$ 10,000
Cash consideration	26,300
Series of Individually Immaterial Asset Acquisitions | Subsequent Event | Milestone One
Subsequent Event [Line Items]
Milestone payment	$ 10,000