10x Genomics, Inc. (NASDAQ: TXG)

10x Genomics, Inc. (TXG) is a life sciences technology company that is dedicated to building innovative products and solutions to accelerate the understanding of biology. The company's mission is to advance human health by accelerating the mastery of biology, and it has established itself as a leader in the life sciences research tools market.

The company's product portfolio consists of multiple integrated platforms that include instruments, consumables, and software. These platforms enable researchers to interrogate, understand, and master biological systems at a resolution and scale commensurate with the complexity of biology. The company's solutions have been designed to overcome the limitations of existing tools, including average, or "bulk," measurements, low throughput, limited number of biological analytes, limited ability for multiomic interrogation, inefficient use of sample, and inadequate bioinformatics and software tools.

The Chromium platform, one of the company's key offerings, is a precisely engineered reagent delivery system that divides a sample into individual components in up to a million or more partitions. This platform can be used to partition not only single cells but also other biological materials such as cell nuclei and DNA molecules. The Chromium platform uses proprietary gel beads bearing barcodes that allow researchers to uniquely identify the contents of each partition and distinguish them from the contents of other partitions.

The Visium platform is another important product from 10x Genomics. This platform empowers researchers to identify where biological components are located and how they are arranged with respect to each other, otherwise referred to as "spatial analysis." This platform uses high-density DNA arrays with DNA barcode sequences that encode the physical location of biological analytes within a sample, allowing the spatial location of the analytes to be "read out" using sequencing to create a visual map of the analytes across the sample.

The Xenium platform is designed to give scientists the ability not only to locate and type cells in their tissue context but also to address a variety of specific questions based on previous knowledge of their sample. This platform uses targeted probes to hybridize to tissue sections on Xenium slides, which are then processed on the Xenium Analyzer. Sequencing is not required.

10x Genomics has a strong competitive position in the industry, with a scalable, multi-channel commercial infrastructure and a team of PhD-level specialists. The company has a diverse customer base, with customers in over 50 countries. The company's revenue was $618.7 million and $516.4 million for the years ended 2023 and 2022, respectively, representing a year-over-year growth rate of 20%. The company generated net losses of $255.1 million and $166.0 million for the years ended 2023 and 2022, respectively.

The company's software is essential to its mission of accelerating the mastery of biology. The company's analysis software transforms large amounts of raw data into usable results, giving researchers user-friendly tools to dynamically explore these results. The company's 10x Genomics Cloud Analysis platform makes it easy for new 10x users to get started and for advanced users to scale to larger and more complex experiments.

The company's product development approach is founded on multidisciplinary collaboration and technological innovation. The company has built teams with deep expertise across diverse disciplines, including chemistry, molecular biology, microfluidics, hardware, computational biology, and software engineering. This multidisciplinary expertise forms the basis of the company's innovation engine, which allows it to introduce new products at a rapid pace as well as continuously launch improved versions of its existing products.

The company's market opportunity is significant, with the annual worldwide life sciences research tools market totaling more than $67 billion. The company's diverse products and solutions allow biologists to interrogate and understand biological systems at exceptional resolution and scale. The company's focus on enabling a comprehensive view of biology, and not narrowly focusing on a particular analyte such as DNA alone, has produced products that have broad applications and target numerous opportunities across different areas of life sciences research.

The company's competitive strengths include its position as a leader in a large and growing industry, its proprietary technologies, its rigorous product development processes and scalable infrastructure, its customer experience and broad commercial reach, and its experienced multidisciplinary team. The company's growth strategy includes developing critical enabling technologies, expanding sales of its instruments, strengthening use and adoption of its consumables, identifying the most relevant technologies, creating or acquiring such technologies and developing them into new products, and investigating and developing new technologies.

The company's commercial strategy focuses on ensuring its customers are successful with its products. These successes often result in publications, which can drive increased public awareness and further market adoption. The company's sales and marketing efforts are targeted at the principal investigators, research scientists, department heads, research laboratory directors and core facility directors at leading academic institutions, biopharmaceutical companies and publicly and privately funded research institutions who control buying decisions.