10x Genomics, Inc. (NASDAQ:TXG) Q3 2023 Earnings Call Transcript

Justin McAnear: Well, like I said, hesitate to call the bottom right now. So we’ll have to see on 2024. We’ll have to see how the rest of Q4 progresses.

Rachel Vatnsdal: Fair enough. Thank you.

Operator: Thank you for your question. Our final question for today will come from the line of Matt Sykes from Goldman Sachs. Your line is live.

Unidentified Participant: Hi. This is Ivy on for Matt. Thanks for taking my questions. You gave some color on competition and wins with Xenium, but are there any changes to the environment within Chromium maybe within the different regions and customer types?

Serge Saxonov: Yeah. I don’t think there’s anything in particular that’s material that has changed in the Chromium business. We see – the environment only – the CapEx environment has been tighter recently for sure, especially outside of the US, and we’re definitely seeing the effects of that. Again, I think there’s sort of the underlying demand on the Xenium side has kind of broken through a lot of that, but we do see the CapEx constraints manifesting themselves out there. There’s also – biopharma has been somewhat pressured and we’re seeing some impact from that. We saw it in Q3, like we’re seeing it in Q4 as well. But overall, I wouldn’t call out any other really big trends on the Chromium side.

Unidentified Participant: Okay, great. That’s helpful. And then on Xenium pricing, I know you said you increased your list price. But could you talk through when you might start to roll off some of the discounts in the Xenium instruments? Or do you see that continuing for the near future?

Justin McAnear: We’re always open to working with customers to get an instrument in their hand and get them using that instrument. As we’ve talked about before, the strategy and the value with Xenium is the Consumable revenue streams. And so, if we compare an order for an instrument with a larger Consumable order, we’ll take a deeper discount on the instrument just to get that out there and get that instrument being used.

Unidentified Participant: Okay, great. Thank you.

Operator: Thank you for your question. And, ladies and gentlemen, that will conclude today’s 10x Genomics third quarter 2023 earnings conference call. Thank you all for attending. Have a great night.