10x Genomics, Inc. (NASDAQ:TXG) Q2 2020 Earnings Conference Call - Final Transcript

Aug 11, 2020 • 04:30 pm ET

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10x Genomics, Inc. (NASDAQ:TXG) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. And welcome to the 10x Genomics Second Quarter 2020 Earnings Conference. [Operator Instructions] I would now like to hand the conference over to your speaker, Eric Jaschke, Director of Investor Relations and Strategic Finance. Please go ahead.

Executive
Eric Jaschke

Thank you. Earlier today, 10x Genomics released financial results for the second quarter ended June 30, 2020. If you've not received this news release or if you'd like to be added to the company's distribution list, please send an e-mail to investors@10xgenomics.com. An archived webcast of this call will be available on the Investor tab of the company's website 10xgenomics.com for at least 45 days following this call.

Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated, and you should not place undue reliance on these forward-looking statements. Additional information regarding these risks, uncertainties and factors that could cause results to differ appears in the press release 10x Genomics issued today and in the documents and reports filed by 10x Genomics from time-to-time with the Securities and Exchange Commission. 10x Genomics disclaims any intention and obligation to update or revise any financial projections or forward-looking statements whether because of new information, future events or otherwise.

Joining the call today are Serge Saxonov, our CEO and Co-Founder and Justin McAnear, our Chief Financial Officer. In addition, Brad Crutchfield, our Chief Commercial Officer, will be available for Q&A.

With that, I'll now turn the call over to Serge.

Executive
Serge Saxonov

Thanks, Eric. Good afternoon, and thank you for joining our call to review our second quarter 2020 results. I hope you and your families are staying healthy and safe. I'd like to start our call today by again thanking the amazing team at 10x for their unwavering dedication and incredible execution during this quarter, despite all the challenges they had to face. I'm always proud of our team and culture, but it's been especially inspiring to see the ability that everyone has shown to adapt and succeed in the face of new obstacles. This perseverance has been critical to ensure that we continue to execute on our plans and take advantage of the opportunities ahead.

As expected, the impact of COVID-19 created a challenging environment in the second quarter. Our revenues were down 23% year-over-year at $42.9 million. This decline was a direct result of widespread customer lab closures, due to the pandemic. We started the quarter with only 25% of our customer labs open, and we exited the quarter with nearly 60% open. So most of them have been operating at a much reduced capacity. We anticipate that lab closures will continue to impact our business until our customers are fully operational.

That said, once we look past the short-term disruption, I'm more confident than ever in our mission and in