Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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 $0.00001 per share | |
Trading Symbol | TXG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001770787 | |
Common Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 87,267,824 | |
Common Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 22,531,465 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 617,195 | $ 663,603 |
Restricted cash | 18,164 | 16,567 |
Accounts receivable, net | 57,408 | 51,208 |
Inventory | 38,507 | 29,959 |
Prepaid expenses and other current assets | 14,442 | 13,029 |
Total current assets | 745,716 | 774,366 |
Property and equipment, net | 107,313 | 72,840 |
Restricted cash | 8,598 | 8,474 |
Operating lease right-of-use assets | 56,353 | 46,983 |
Goodwill | 4,511 | 0 |
Other assets | 31,542 | 26,678 |
Total assets | 954,033 | 929,341 |
Current liabilities: | ||
Accrued contingent liabilities | 44,849 | 44,173 |
Accounts payable | 15,578 | 4,709 |
Accrued compensation and related benefits | 16,820 | 15,383 |
Accrued expenses and other current liabilities | 32,665 | 43,453 |
Deferred revenue | 4,481 | 4,472 |
Operating lease liabilities | 6,156 | 5,936 |
Total current liabilities | 120,549 | 118,126 |
Accrued license fee, noncurrent | 5,814 | 11,171 |
Operating lease liabilities, noncurrent | 66,344 | 57,042 |
Other noncurrent liabilities | 8,866 | 3,930 |
Total liabilities | 201,573 | 190,269 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Preferred stock, $0.00001 par value; 100,000,000 shares authorized, no shares issued or outstanding as of March 31, 2021 and December 31, 2020 | 0 | 0 |
Common stock, $0.00001 par value; 1,100,000,000 shares authorized, 109,588,527 and 108,485,909 shares issued and outstanding as of March 31, 2021 and December 31, 2020 | 2 | 2 |
Additional paid-in capital | 1,569,059 | 1,544,218 |
Accumulated deficit | (816,649) | (805,098) |
Accumulated other comprehensive gain (loss) | 48 | (50) |
Total stockholders’ equity | 752,460 | 739,072 |
Total liabilities and stockholders’ equity | $ 954,033 | $ 929,341 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par Value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred Stock, Shares Authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
Preferred Stock, Shares Outstanding (in shares) | 0 | 0 |
Common Stock, Par Value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized (in shares) | 1,100,000,000 | 1,100,000,000 |
Common Stock, Shares, Issued (in shares) | 109,588,527 | 108,485,909 |
Common Stock, Shares, Outstanding (in shares) | 109,588,527 | 108,485,909 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 105,821 | $ 71,905 |
Cost of revenue | 17,060 | 15,108 |
Gross profit | 88,761 | 56,797 |
Operating expenses: | ||
Research and development | 41,883 | 25,992 |
Selling, general and administrative | 56,904 | 50,387 |
Accrued contingent liabilities | 190 | 302 |
Total operating expenses | 98,977 | 76,681 |
Loss from operations | (10,216) | (19,884) |
Other income (expense): | ||
Interest income | 50 | 1,318 |
Interest expense | (221) | (662) |
Other expense, net | (729) | (96) |
Loss on extinguishment of debt | 0 | (1,521) |
Total other expense | (900) | (961) |
Loss before provision for income taxes | (11,116) | (20,845) |
Provision for income taxes | 435 | 298 |
Net loss | (11,551) | (21,143) |
Other comprehensive income: | ||
Foreign currency translation adjustment | 98 | 5 |
Comprehensive loss | $ (11,453) | $ (21,138) |
Net loss per share, basic (in dollars per share) | $ (0.11) | $ (0.22) |
Net loss per share, diluted (in dollars per share) | $ (0.11) | $ (0.22) |
Weighted-average shares of common stock used in computing net loss per share, basic (in shares) | 108,714,027 | 96,829,093 |
Weighted-average shares of common stock used in computing net loss per share, diluted (in shares) | 108,714,027 | 96,829,093 |
Condensed Consolidated Statem_2
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 ACommon Stock | Common Class AAdditional Paid-in Capital |
Beginning balance (in shares) at Dec. 31, 2019 | 96,241,596 | |||||||
Beginning balance at Dec. 31, 2019 | $ 420,083 | $ 2 | $ 682,494 | $ (262,367) | $ (46) | |||
Issuance of Class A common stock upon exercise of stock options (in shares) | 1,903,612 | |||||||
Issuance of Class A common stock upon exercise of stock options | $ 3,283 | $ 3,283 | ||||||
Vesting of shares subject to repurchase, including early exercised options | 122 | 122 | ||||||
Stock-based compensation | 6,718 | 6,718 | ||||||
Net loss | (21,143) | (21,143) | ||||||
Other comprehensive income | 5 | 5 | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 98,145,208 | |||||||
Ending balance at Mar. 31, 2020 | 409,068 | $ 2 | 692,617 | (283,510) | (41) | |||
Beginning balance (in shares) at Dec. 31, 2020 | 108,485,909 | |||||||
Beginning balance at Dec. 31, 2020 | $ 739,072 | $ 2 | 1,544,218 | (805,098) | (50) | |||
Issuance of Class A common stock upon exercise of stock options (in shares) | 1,051,281 | 1,102,618 | ||||||
Issuance of Class A common stock upon exercise of stock options | $ 8,546 | $ 8,546 | ||||||
Vesting of shares subject to repurchase, including early exercised options | $ 42 | 42 | ||||||
Stock-based compensation | 16,253 | 16,253 | ||||||
Net loss | (11,551) | (11,551) | ||||||
Other comprehensive income | 98 | 98 | ||||||
Ending balance (in shares) at Mar. 31, 2021 | 109,588,527 | |||||||
Ending balance at Mar. 31, 2021 | $ 752,460 | $ 2 | $ 1,569,059 | $ (816,649) | $ 48 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities: | ||
Net loss | $ (11,551) | $ (21,143) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 4,752 | 3,189 |
Stock-based compensation expense | 16,176 | 6,718 |
Loss on disposal of property and equipment | 30 | 0 |
Loss on extinguishment of debt | 0 | 1,521 |
Accretion of discount on term loan | 0 | 17 |
Amortization of right-of-use assets | 1,716 | 1,071 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (6,189) | 2,521 |
Inventory | (8,614) | (4,087) |
Prepaid expenses and other current assets | (1,584) | 601 |
Other assets | 165 | (1,210) |
Accounts payable | 10,885 | (653) |
Accrued compensation and other related benefits | 1,302 | 6,191 |
Deferred revenue | 348 | 471 |
Accrued contingent liabilities | 676 | 4,656 |
Accrued expenses and other current liabilities | (7,232) | 4,585 |
Operating lease liability | (1,424) | (1,282) |
Other noncurrent liabilities | (3,538) | (5,742) |
Net cash used in operating activities | (4,082) | (2,576) |
Investing activities: | ||
Acquisition of business, net of cash acquired | (5,451) | 0 |
Purchases of property and equipment | (38,865) | (8,079) |
Net cash used in investing activities | (44,316) | (8,079) |
Financing activities: | ||
Payments on financing arrangement | (5,028) | (5,846) |
Payments on term loans | 0 | (31,256) |
Issuance of common stock from exercise of stock options and employee stock purchase plan purchases | 8,546 | 3,283 |
Net cash provided by (used in) financing activities | 3,518 | (33,819) |
Effect of exchange rates on changes in cash, cash equivalents, and restricted cash | 193 | (116) |
Net decrease in cash, cash equivalents, and restricted cash | (44,687) | (44,590) |
Cash, cash equivalents, and restricted cash at beginning of period | 688,644 | 476,493 |
Cash, cash equivalents, and restricted cash at end of period | 643,957 | 431,903 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 1,222 | 1,670 |
Cash paid for taxes | 6,822 | 117 |
Noncash investing and financing activities: | ||
Purchases of property and equipment included in accounts payable and accrued expenses and other current liabilities | 2,816 | 2,811 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 11,237 | 7,634 |
Contingent consideration payable from business acquisition | $ 1,500 | $ 0 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
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”) was incorporated in the state of Delaware on July 2, 2012 and 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 and Chromium Connect instruments, which the Company refers to as “instruments,” and the Company’s proprietary microfluidic chips, slides, reagents and other consumables for both the Company’s Visium and Chromium 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 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 China, Germany, Netherlands, Singapore, Sweden and the United Kingdom. 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, 2020 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 inputs into our judgments and estimates consider the economic implications of COVID-19 on our critical and significant accounting 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, 2020 included in our Annual Report on Form 10-K filed with the SEC on February 26, 2021 (our "Annual Report"). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Fair Value of Financial Instruments Cash and cash equivalents are comprised of money market funds and cash which are classified as Level 1 in the fair value hierarchy. Money market funds are highly liquid investments which are actively traded. The pricing information for the Company’s money market funds are readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy. As of March 31, 2021 and December 31, 2020, the Company held $547.8 million and $600.9 million in money market funds, respectively, with no unrealized gains or losses. Revenue Recognition The Company generates revenue from sales of products and services. The Company’s products consist of instruments and consumables. The Company began shipping its Chromium Connect instrument during the first quarter of 2020. The Company recognizes revenue when control of the products and services is transferred to its customers in an amount that reflects the consideration it expects to receive from its customers in exchange for those products and services. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. Revenue from product sales is recognized when control of the product is transferred, which is generally upon shipment to the customer. In instances where right of payment or transfer of title is contingent upon the customer’s acceptance of the product, revenue is deferred until all acceptance criteria have been met. 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 convertible preferred stock, awards under the Company’s equity compensation plan and common stock warrants. 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. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On January 8, 2021 (the "acquisition date"), the Company purchased 100% of the outstanding shares of Tetramer Shop ApS (“Tetramer Shop”), a privately held company based in Copenhagen, Denmark, for a total cash consideration of $8.5 million, net of cash acquired of $0.2 million and including $1.5 million of estimated fair value of contingent consideration. The contingent consideration is recorded as a liability and is payable upon the successful transfer of Tetramer Shop's technology to the Company within two years of the acquisition date. Tetramer Shop is a life sciences technology company which develops and provides reagents for precise monitoring of antigen-specific T-cells in research and development. The Company acquired Tetramer Shop for its expertise in building empty, loadable major histocompatability complex molecules that will accelerate the development of T-cell receptor-based therapeutics and diagnostics. The acquisition was accounted for using the acquisition method of accounting, with Tetramer Shop treated as the acquiree. The acquired assets and liabilities were recorded at their respective fair values including an amount for goodwill representing the difference between the acquisition consideration and the fair value of the identifiable net assets. Our condensed consolidated statements of income include the financial results of Tetramer Shop subsequent to the acquisition date. Revenue related to Tetramer Shop since the acquisition date was included in our condensed consolidated statements of income and was not material. The acquisition price was allocated to the tangible and identified intangible assets acquired and liabilities assumed as of the acquisition date based upon their respective fair values. The fair values assigned to assets acquired and liabilities assumed were based on management’s assumptions as of the reporting date. The estimated fair value of assets acquired, including goodwill and intangibles, and liabilities assumed as of the acquisition date were as follows (in thousands): Amount Cash and cash equivalents $ 224 Other current assets 45 Property and equipment, net 38 Tangible assets acquired 307 Accrued expenses (555) Other current liabilities (97) Deferred tax liability - non-current (1,131) Total net tangible assets acquired and liabilities assumed (1,476) Intangible assets 5,640 Goodwill 4,511 Net assets acquired $ 8,675 The intangible assets as of the acquisition date included (in thousands): Amount Weighted Average Useful Life (in years) Developed technology $ 5,500 10 Customer relationships 140 3 $ 5,640 The fair value of the intangible assets acquired in connection with the acquisition was determined using either the income or replacement cost methodologies. The developed technology and customer relationships will be amortized over ten years and three years, respectively. Identifiable Intangible Assets Valuation of intangible assets involves multiple assumptions. The key assumptions are described below. Developed technology acquired primarily consists of existing technology related to developing reagents for precise monitoring of antigen-specific T cells in research and development, enabling the Company to strengthen its efforts in immunology. The Company valued the developed technology using the multi-period excess earnings method under the income approach. Using this approach, the estimated fair values were calculated using expected future cash flows discounted to their net present values at an appropriate risk-adjusted rate of return. Goodwill |
Other Financial Statement Infor
Other Financial Statement Information | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Financial Statement Information | Other Financial Statement Information Inventory Inventory was comprised of the following as of the dates indicated (in thousands): March 31, December 31, Purchased materials $ 14,749 $ 9,930 Work in progress 11,752 9,312 Finished goods 12,006 10,717 Inventory $ 38,507 $ 29,959 Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): March 31, December 31, Land $ 29,145 $ — Laboratory equipment and machinery 33,628 30,010 Computer equipment and software 10,882 5,783 Furniture and fixtures 5,721 5,887 Leasehold improvements 49,217 42,068 Construction in progress 13,469 19,594 Total property and equipment 142,062 103,342 Less: accumulated depreciation and amortization (34,749) (30,502) Property and equipment, net $ 107,313 $ 72,840 Intangible Assets, Net Intangible assets, net, which are recorded within other assets in the condensed consolidated balance sheets, consisted of the following (dollars in thousands): March 31, 2021 December 31, 2020 Remaining Useful Life in Years Gross Accumulated Intangibles, Remaining Useful Life in Years Gross Accumulated Intangibles, Technology licenses 13.5 $ 22,503 $ (2,356) $ 20,147 13.7 $ 22,504 $ (1,973) $ 20,531 Developed technology 9.8 5,500 (138) 5,362 — — — — Customer relationships 3.5 945 (167) 778 3.9 805 (111) 694 Trademarks 0.6 204 (159) 45 0.9 204 (142) 62 Assembled workforce 4.5 1,128 (118) 1,010 4.8 1,128 (61) 1,067 Total intangible assets, net $ 30,280 $ (2,938) $ 27,342 $ 24,641 $ (2,287) $ 22,354 The estimated annual amortization of intangible assets for the next five years is shown below (in thousands): Estimated 2021 (excluding the three months ended March 31, 2021) $ 1,946 2022 2,535 2023 2,506 2024 2,378 2025 2,214 Thereafter 15,763 Total $ 27,342 Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures and asset impairments, among other factors. Accrued Compensation and Related Benefits Accrued compensation and related benefits were comprised of the following as of the dates indicated (in thousands): March 31, December 31, Accrued payroll and related costs $ 5,354 $ 2,506 Employee stock purchase program liability 3,020 1,258 Accrued bonus 3,728 5,058 Accrued commissions 2,171 3,038 Accrued acquisition-related compensation 744 2,213 Accrued vacation 1,118 1,035 Other 685 275 Accrued compensation and related benefits $ 16,820 $ 15,383 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities were comprised of the following as of the dates indicated (in thousands): March 31, December 31, Accrued legal and related costs $ 5,030 $ 5,704 Accrued license fee 5,525 6,198 Accrued purchase consideration 5,046 4,146 Accrued royalties for licensed technologies 2,644 3,160 Accrued property and equipment 2,816 2,983 Accrued professional services 5,418 3,137 Product warranties 452 399 Customer deposits 1,419 1,727 Taxes payable 2,478 8,649 Accrued lab supplies 1,003 1,506 Other 834 5,844 Accrued expenses and other current liabilities $ 32,665 $ 43,453 Product Warranties Changes in the reserve for product warranties were as follows for the periods indicated (in thousands): March 31, December 31, Beginning of period $ 399 $ 467 Amounts charged to cost of revenue 591 796 Repairs and replacements (538) (864) End of period $ 452 $ 399 Revenue and Deferred Revenue As of March 31, 2021, 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 Chromium instruments, was $6.1 million, of which approximately 70% is expected to be recognized to revenue in the next 12 months, with the remainder thereafter. The contract liabilities of $6.1 million and $6.2 million as of March 31, 2021 and December 31, 2020, respectively, consisted of deferred revenue related to extended warranty service agreements, and as of March 31, 2021, the short-term portion was $4.3 million. Revenue recorded during the three months ended March 31, 2021 included $1.4 million of previously deferred revenue that was included in contract liabilities as of December 31, 2020. The following table represents revenue by source for the periods indicated (in thousands): Three Months Ended 2021 2020 Instruments $ 11,125 $ 9,141 Consumables 93,079 61,428 Services 1,617 1,336 Total revenue $ 105,821 $ 71,905 The following table presents revenue by geography based on the location of the customer for the periods indicated (in thousands): Three Months Ended 2021 2020 North America $ 51,807 $ 39,732 Europe, Middle East and Africa 19,170 13,158 China 23,640 10,997 Asia-Pacific (excluding China) 11,204 8,018 Total revenue $ 105,821 $ 71,905 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | DebtIn September 2016, the Company entered into a Second Amended and Restated Loan and Security Agreement with Silicon Valley Bank (as amended and restated in February 2018 and as further amended, restated or supplemented from time to time, the “Loan and Security Agreement”), which included a term loan and revolving line of credit. On February 20, 2020, the Company prepaid the remaining balance of the term loan and all associated costs. The final payment of $30.5 million included $28.3 million for the outstanding principal balance of the term loan, $1.8 million for an end of term payment, $0.3 million for early termination fees and $0.1 million for interest. The prepayment resulted in a loss on extinguishment of debt of $1.5 million. The non-accreted portion of the end of term payment, unamortized discounts and early termination fees were included in the calculation of the loss on extinguishment of debt. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Agreements The Company leases office, laboratory, manufacturing, distribution and server space with lease terms up to 12 years. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include renewal options at the election of the Company to renew or extend the lease. The Company evaluates renewal options at lease inception and on an ongoing basis, and includes renewal options that it is reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. For the three months ended March 31, 2021 and 2020, the Company incurred $2.7 million and $1.9 million, respectively, of operating lease costs. The Company also incurred $0.1 million and $0.1 million, respectively, of variable lease costs for the three months ended March 31, 2021 and 2020. The variable lease cost is comprised primarily of the Company’s proportionate share of operating expenses, property taxes and insurance and is classified as lease cost due to the Company’s election to not separate lease and non-lease components. Cash paid for amounts included in the measurement of operating lease liabilities for the three months ended March 31, 2021 and 2020 was $2.5 million and $1.3 million and were included in net cash used in operating activities in the Company’s condensed consolidated statements of cash flows. Future lease payments related to the Company’s operating lease liabilities as of March 31, 2021 is as follows (in thousands): Operating Leases 2021 (excluding the three months ended March 31, 2021) $ 3,845 2022 10,731 2023 10,404 2024 9,671 2025 9,844 Thereafter 48,733 Total lease payments $ 93,228 Less: imputed interest (20,728) Present value of operating lease liabilities $ 72,500 Operating lease liabilities, current $ 6,156 Operating lease liabilities, noncurrent $ 66,344 The following table summarizes additional information related to operating leases as of March 31, 2021: March 31, 2021 December 31, 2020 Weighted-average remaining lease term: Operating leases 8.8 years 8.4 years Weighted-average discount rate: Operating leases 5.3 % 4.5 % On November 6, 2020, the Company entered into a Master Lease Agreement ("MLA") to lease additional office building space near the Company's Pleasanton, California headquarters. The Company intends to utilize the leased space of approximately 145,000 square feet to accommodate its future growth requirements. The MLA consists of various lease components expected to commence on various dates between 2021 and 2023 and is expected to terminate on June 30, 2033 with total lease payments over the lease term expected to amount to approximately $60.8 million, net of a tenant improvement allowance of approximately $10.0 million to be received in 2021. None of this tenant improvement allowance has been received as of March 31, 2021. Certain lease components of the MLA commenced on January 1, 2021. The tables above do not include payments, lease term, or discount rates relating to lease components that have not yet commenced as of March 31, 2021. The Company will determine the classification for each lease component at the individual component's commencement date. All lease components are expected to be classified as operating leases. Lease payments for leases not yet Commenced 2021 (excluding the three months ended March 31, 2021) $ — 2022 603 2023 2,993 2024 4,389 2025 4,519 Thereafter 37,994 Total undiscounted lease payments $ 50,498 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. Amongst other matters, the Company is currently a defendant in the lawsuits and proceedings described below. In these matters, the plaintiffs are seeking damages and injunctions of sales of the Company's products amongst other remedies. Other than with respect to the 2015 Delaware Action, losses are not probable or estimable for the lawsuits and proceedings described below. The 2015 Delaware Action In February 2015, Raindance Technologies, Inc. (“Raindance”) and the University of Chicago filed suit against the Company in the U.S. District Court for the District of Delaware (the “Delaware Court”), accusing the Company’s legacy GEM products of infringing certain U.S. patents owned by or exclusively licensed to Raindance (the “2015 Delaware Action”). In May 2017, Bio-Rad Laboratories, Inc. (“Bio-Rad”) was substituted as the plaintiff following its acquisition of Raindance. A jury trial was held in November 2018. The jury found that the accused legacy GEM products infringed U.S. Patent Nos. 8,304,193, 8,329,407 and 8,889,083. The jury also concluded that the Company's infringement was willful and awarded Bio-Rad approximately $24 million in damages through June 30, 2018. The Company appealed the jury verdict. Post-trial, Bio-Rad moved for a permanent injunction, treble damages for willful infringement, attorneys’ fees, supplemental damages for the period from the second quarter of 2018 through the end of the trial as well as pre- and post-judgment interest. In response to the jury award, the Company established an accrual of $30.6 million as of December 31, 2018, which was recorded as an operating expense on the condensed consolidated statement of operations for the year ended December 31, 2018. Additionally, beginning in the fourth quarter of 2018, the Company also began recording an accrual for estimated royalties to Bio-Rad as a cost of revenue on the condensed consolidated statements of operations based on an estimated royalty rate of 15% of sales of the Company’s Chromium instruments operating its legacy GEM microfluidic chips and associated consumables. As a result, the Company recorded $7.4 million of royalties for the fourth quarter of 2018. As of December 31, 2018, the Company recorded a total accrual of $38.0 million related to this matter which represented the jury award plus the Company’s estimate of additional damages for the period from June 30, 2018 to the trial date in November 2018 and the royalties accrued in the fourth quarter of 2018. In July 2019, the Court awarded supplemental damages for the period from June 30, 2018 through the end of the trial in November 2018 and established the interest rates for pre- and post-judgment interest, which when combined with the original award, resulted in a $35 million preliminary judgment in favor of Bio-Rad for damages through November 2018 and interest. During the three months ended March 31, 2021 and 2020, the Company recorded royalties of $0.5 million and $4.4 million, respectively, as a cost of revenue and an additional $0.2 million and $0.3 million, respectively, during the three months ended March 31, 2021 and 2020, as an operating expense for estimated pre- and post-judgment interest. The Company’s accrual of $44.8 million as of March 31, 2021 includes estimates of additional royalties and interest for the period from November 2018 through March 31, 2021. The Company’s accrual of $68.7 million as of December 31, 2019 was comprised of the preliminary judgment, along with the Company’s estimate of additional royalties and interest for the period from November 2018 through December 31, 2019. In July 2019, the Court denied Bio-Rad’s other post-trial requests such as attorneys’ fees and enhanced damages for willful infringement. In July 2019, the Court also granted Bio-Rad a permanent injunction against the Company’s legacy GEM microfluidic chips and associated consumables that were found to infringe the Bio-Rad patents, which historically constituted a significant amount of the Company’s product sales. However, under the injunction, the Company is permitted to continue to sell its legacy GEM microfluidic chips and associated consumables for use with its historical installed base of instruments provided that the Company pay into escrow a royalty of 15% of the Company’s net revenue related to such sales occurring after August 28, 2019. The amounts will be held in escrow until after the conclusion of the Company’s Federal Circuit appeal and the Delaware Court addresses anticipated motions regarding post-judgment royalties. In August 2019, the Court ordered that the Company may post a bond in the amount of $52 million in lieu of payment of the final judgment. Bio-Rad subsequently asked the Court to increase the amount of the bond to approximately $61 million. The Company also asked the Court to reconsider its ruling and decrease the potential bond to approximately $35 million. On September 13, 2019, the Company posted a $52 million bond (the “Bond”) in lieu of payment of the judgment pending the Company’s ongoing appeal. In connection with the Bond, the Company deposited $45 million as collateral in a segregated cash account. On October 10, 2019, the Court denied the Company’s motion to decrease the bond amount, and, without addressing Bio-Rad’s request to increase the bond amount, stayed any execution or enforcement of the judgment until the completion of appeal, and for thirty days thereafter. The Company appealed the Court's judgment including the injunction to the Federal Circuit. In August 2020, the Federal Circuit issued its opinion in the Company's appeal of the 2015 Delaware Action. The Federal Circuit (1) affirmed the judgment of the lower Court with respect to infringement of the '083 patent by the Company's legacy GEM products and (2) vacated the judgment with respect to infringement of the '193 and '407 patents, which are remanded to the lower Court for a new trial on infringement. The Federal Circuit affirmed the damages award including the 15% royalty with respect to the Company's legacy GEM products. The Federal Circuit vacated the injunction with respect to the Company's Single Cell CNV and Linked-Read products but affirmed the injunction with respect to the Company's other legacy GEM products. In October 2020, the Company filed a petition for en banc rehearing with the Federal Circuit. The Federal Circuit denied the Company's petition for en banc rehearing on November 4, 2020. The Company paid the $34.5 million judgment, plus approximately $0.8 million in post-judgment interest, to Bio-Rad on December 17, 2020. The case was remanded to the Delaware Court for a determination of post-judgment royalties or other amounts, which the Company expects in the second half of 2021. The Company has accrued $44.8 million as of March 31, 2021 related to this matter which is classified within current liabilities in its condensed consolidated balance sheets as of this date. Restricted cash of $17.6 million , classified within current assets in the Company's condensed consolidated balance sheets as of March 31, 2021 serves as collateral for a bond and royalties in connection with the Bio-Rad litigation and would be used to partially satisfy this payment. The ITC 1068 Action On July 31, 2017, Bio-Rad and Lawrence Livermore National Security, LLC filed a complaint against the Company in the U.S. International Trade Commission (“ITC”) pursuant to Section 337 of the Tariff Act of 1930, accusing substantially all of the Company’s Chromium products of infringing certain asserted patents (the “ITC 1068 Action”). In September 2018, the judge found that the Company’s legacy GEM microfluidic chips infringe certain of the asserted patents, but also that the Company’s gel bead manufacturing microfluidic chip and Next GEM microfluidic chip do not infringe any claim asserted against them (the “Initial Determination”). The judge recommended entry of an exclusion order preventing the Company from importing its legacy GEM microfluidic chips and a cease and desist order that would prevent the Company from selling such imported chips. On December 18, 2019, the ITC issued its final determination in the ITC 1068 Action (the “Final Determination”). The Final Determination affirmed the Initial Determination that the Company’s Next GEM microfluidic chips and gel bead manufacturing microfluidic chips do not infringe any of the claims asserted against them. The Final Determination also affirmed the ruling that the Company’s legacy GEM microfluidic chips infringe the ‘664, ‘682 and ‘635 patents but not the ‘160 patent. The ITC issued (1) a limited exclusion order prohibiting the unlicensed importation of the legacy GEM microfluidic chips into the United States and (2) a cease and desist order preventing the Company from selling such imported legacy GEM microfluidic chips in the United States. The ITC expressly allowed the importation and sale of the legacy GEM microfluidic chips for use by researchers who were using such chips as of December 18, 2019, and who have a documented need to continue receiving such chips for a specific current ongoing research project for which that need cannot be met by any alternative product. The Final Determination was subject to a 60-day presidential review period. During the presidential review period, the Company was permitted to continue importation and sales of the legacy GEM microfluidic chips subject to payment of a bond of three (3) percent of the entered value of the accused microfluidic chips. The Company and Bio-Rad have appealed the Final Determination to the Court of Appeals for the Federal Circuit. Bio-Rad has appealed the Final Determination with respect to non-infringement of the Company's gel bead manufacturing chips, but not with respect to non-infringement of the Company's Next GEM microfluidic chips. The Company has appealed the Final Determination with respect to infringement of the Company's legacy GEM microfluidic chips. Oral argument was held on April 7, 2021. The Company expects a decision around the fourth quarter of 2021. The Northern District of California Action On July 31, 2017, Bio-Rad and Lawrence Livermore National Security, LLC also filed suit against the Company in the U.S. District Court for the Northern District of California, alleging that the Company’s legacy GEM products infringe certain patents in addition to the patents asserted in the ITC 1068 Action. The complaint seeks injunctive relief, unspecified monetary damages, costs and attorneys’ fees. This litigation has been stayed pending resolution of the Federal Circuit appeal of the ITC 1068 Action. In July 2020, Bio-Rad moved to lift the stay with respect to the '059 patent and consolidate the '059 patent with the '115 patent transferred from the District of Massachusetts which is being asserted against the Company's Next GEM products. In August 2020, the Court denied Bio-Rad's motion to lift the stay with respect to both the '059 and '115 patents. In October 2020, we filed two petitions for inter partes review (“IPR”) challenging the validity of the ‘115 patent. We expect the Patent Trials and Appeals Board (“PTAB”) to issue a decision on institution of these IPR petitions in the second quarter of 2021. The Company believes that this lawsuit is without merit and intends to vigorously defend itself. The Germany Action On July 31, 2017, Bio-Rad filed suit against the Company in Germany in the Munich Region Court alleging that the Company infringed a European patent. Bio-Rad dismissed this action in August 2018. On February 13, 2018, Bio-Rad filed suit against the Company in Germany in the Munich Region Court alleging that its Chromium instruments, legacy GEM microfluidic chips and certain accessories infringe a German utility model. Bio-Rad seeks unspecified damages and an injunction prohibiting sales of these products in Germany and requiring the Company to recall these products sold in Germany subsequent to February 11, 2018. An initial hearing was held on November 27, 2018, and a subsequent hearing was held on May 15, 2019. The Court issued a ruling on November 20, 2019. The Court ruled that the Company’s legacy GEM microfluidic chips, as well as certain Chromium instruments and accessories used with legacy GEM microfluidic chips, infringed the German Utility Model. The Court issued an injunction with respect to such legacy GEM microfluidic chips, Chromium instruments and accessories used with such systems, prohibiting among other things the sale of these products in Germany and the importation of such products into Germany. The Court found that the Company is obligated to compensate Bio-Rad for unspecified damages and required that these products be recalled from distribution channels in Germany. The Court further found that the Company has to bear the statutory costs of the legal dispute in a minimum amount of at least 61,000 Euros. The Company has accrued the 61,000 Euros for statutory costs in the condensed consolidated balance sheet as of March 31, 2021. The Company is unable to estimate any additional potential exposure related to the matter beyond the statutory costs that have been accrued. The Court’s ruling did not address the Company’s Next GEM products, which were not accused in this action and which constitute substantially all of the Company’s Chromium sales in Germany. The Company appealed the Court’s ruling. On April 6, 2020, the Munich Higher Regional Court (the “Higher Court”) issued a ruling staying enforcement of the ruling of the lower Court, including the injunction, subject to the payment of a bond by the Company. The Higher Court found that the lower Court’s claim construction was not justifiable and that the facts did not provide a basis for a finding of infringement. On April 16, 2020, the Company paid a 2.8 million Euro bond to the Higher Court to completely stay enforcement of the ruling. The bond is refundable upon a favorable ruling on the merits by the Higher Court. The Company expects the Higher Court to rule on the merits in 2021. In August 2020, Bio-Rad filed its appeal response arguing for the first time that the Company's Next GEM microfluidic chips and certain accessories infringe the utility model. In its appeal response, Bio-Rad also attempted to add infringement allegations with respect to a new patent, European Patent No. 3 132 844, against the Company's Chromium instruments and Next GEM microfluidic chips. The Company believes it is procedurally improper to attempt to add these new claims at this stage, that the Company's Next GEM products are not covered by the lower court's judgment and are not admissible in the appeal, and that the newly asserted '844 patent is not admissible in the appeal. The Higher Court is not expected to rule on whether Next GEM products or the '844 patent are admissible in the appeal until around the fourth quarter of 2021. The 2018 Delaware Action On October 25, 2018, Bio-Rad filed suit against the Company in the U.S. District Court for the District of Delaware alleging that substantially all of the Company’s Chromium products, including our legacy GEM products and Next GEM products, infringe U.S. Patent Nos. 9,562,837 and 9,896,722. Bio-Rad seeks injunctive relief, unspecified monetary damages, costs and attorneys’ fees. In October 2019, the Company filed four petitions for IPR challenging the validity of both asserted patents. On April 27, 2020, the PTAB instituted review on all four of these petitions. On April 26, 2021, the PTAB issued final written decisions on all four IPRs invalidating the majority of the asserted claims of the ‘837 and ‘722 patents but maintaining the validity of claim 8 of the '837 patent and claims 15-17 of the '722 patent. The Company expects to seek rehearing of and/or appeal the decision with respect to the claims found to be valid. In June 2020, the Court completely stayed the District of Delaware litigation pending resolution of the IPRs before the PTAB. The Massachusetts Action On September 11, 2019, Bio-Rad filed suit against the Company in the U.S. District Court for the District of Delaware alleging that the Company’s Next GEM products infringe certain claims of U.S. Patent No. 8,871,444. On November 5, 2019, Bio-Rad amended the complaint to additionally allege that the Company’s Next GEM products infringe certain claims of U.S. Patent Nos. 9,919,277 and 10,190,115. The ‘444 and ‘277 patents are exclusively licensed by Bio-Rad from Harvard University, which subsequently joined the suit as a party plaintiff. Bio-Rad is seeking damages and an injunction against the Company's Next GEM products amongst other remedies. The ‘444 and ‘277 patents are projected to expire in October 2024. On December 18, 2019, Bio-Rad dismissed this action in the District of Delaware and refiled it in the U.S. District Court for the District of Massachusetts. The case was assigned to Judge William G. Young. On January 14, 2020, the Court consolidated this case with a separate action, Bio-Rad Laboratories Inc. et al. v. Stilla Technologies, Inc. (“Stilla”), in which Bio-Rad is asserting the ‘444 patent (among other patents) against Stilla’s droplet digital PCR product. On January 23, 2020, the Company filed a motion to dismiss the case and to transfer the ‘115 patent to the Northern District of California, where the related ‘059 patent is stayed. On January 24, 2020, the Company filed antitrust counterclaims against Bio-Rad alleging violations of (a) Section 7 of the Clayton Act, (b) Section 2 of the Sherman Act and (c) California unfair competition laws, for illegally acquiring Raindance and illegally monopolizing or attempting to monopolize markets relating to droplet digital PCR products, droplet single cell products and droplet genetic analysis technology. On February 19, 2020, Bio-Rad moved to dismiss, or alternatively to stay and sever, the Company’s antitrust claims. On February 5, 2020, the Company filed additional counterclaims against Bio-Rad alleging that Bio-Rad’s single cell ATAC-seq products infringe U.S. Patent No. 9,029,085 and 9,850,526 that are exclusively licensed to the Company from Harvard University. On February 26, 2020, Bio-Rad moved to sever and stay the patent counterclaims. On March 6, 2020, the Court denied the motion to stay and deferred the motion to sever until prior to trial. On March 25, 2020, the Court held a hearing with respect to (a) the Company’s motion to dismiss Bio-Rad’s patent claims, (b) the Company’s motion to transfer the ‘115 patent and (c) Bio-Rad’s motion to dismiss the Company’s antitrust counterclaims. On April 30, 2020, the Court denied the Company’s motion to dismiss with respect to Bio-Rad’s patent claims and granted the Company’s motion to transfer the ‘115 patent to the Northern District of California. In August 2020, the Court granted Bio-Rad’s motion to dismiss (i) the Company's Sherman Act and Clayton Act counterclaims with respect to droplet single cell products and (ii) the Company's Sherman Act counterclaims with respect to droplet genetic analysis technology. The Court denied Bio-Rad’s motion to dismiss (i) the Company's Clayton Act counterclaims with respect to droplet genetic analysis technology; (ii) the Company's Sherman Act and Clayton Act counterclaims with respect to droplet digital PCR products; and (iii) the Company's California unfair competition counterclaims. Discovery is ongoing. A Markman hearing was conducted in September 2020. In December 2020, the Court ordered the parties to be ready for trial for Bio-Rad’s patent claims and our patent counterclaims in July 2021 and for our antitrust counterclaims in September 2021. In June 2020, the Company filed two petitions for IPR challenging the validity of the '444 patent. In August 2020, the Company filed two petitions for IPR challenging the validity of the '277 patent. On January 13, 2021, the PTAB denied institution of IPRs for the '444 patent. On February 22, 2021, the PTAB denied institution of IPRs for the '277 patent. 2019 Becton Dickinson Settlement and Patent Cross License Agreement On November 15, 2018, Becton, Dickinson and Company (“BD”) and Cellular Research, Inc. filed suit against the Company in the U.S. District Court for the District of Delaware, alleging that the Company infringed certain patents. In September 2019, the Company filed counterclaims alleging that BD and Cellular Research, Inc. (together, the “BD Entities”) infringed a number of the Company’s patents. In October 2019, the Company entered into a settlement and patent cross license agreement (the “BD Agreement”) with the BD Entities. The BD Agreement resolved all outstanding patent litigation between the parties (the “BD Litigation”), which was dismissed with prejudice on October 21, 2019. Under the terms of the BD Agreement, the BD Entities granted the Company and its affiliates, and the Company granted BD and its affiliates, a worldwide, royalty-free, non-exclusive, fully paid-up license to certain patents and patent applications relating to molecular barcoding and single cell analysis, including to all the patents asserted in the BD Litigation. The Company is required to make an aggregate payment of $25.0 million to BD in annual amounts of $6.25 million over four years beginning in January 2020 in connection with the BD Agreement. Upon execution of the BD Agreement, the fair value of these payments was recognized as a liability and is classified as accrued expenses and other current liabilities and accrued license fee, noncurrent on the Company’s condensed consolidated balance sheet as of March 31, 2021. As part of the BD Agreement, each party, on behalf of itself and its affiliates, has also entered into a covenant not to sue in certain fields related to each company’s products. The companies have also agreed on behalf of themselves and their affiliates to refrain from challenging the patents and patent applications licensed under the BD Agreement. The Company considers this matter closed. For certain of the Company’s litigation matters, the Company is required to make milestone payments to the Company’s legal counsel based on certain litigation outcomes. Based on the occurrence in the first quarter of 2020 of one such milestone in one of the Company’s litigation matters, a milestone payment to the Company’s legal counsel in the amount of $5 million was triggered in the first quarter of 2020. The Company expects to trigger additional such milestone payments during the pendency of litigation, though the timing and amounts of such payments is uncertain. The ITC 1100 Action On January 11, 2018, we filed a complaint against Bio-Rad at the ITC pursuant to Section 337 of the Tariff Act of 1930 alleging that Bio-Rad infringes our U.S. Patent Nos. 9,644,204, 9,689,024, 9,695,468 and 9,856,530 (the “ITC 1100 Action”). The judge issued an Initial Determination on July 12, 2019 finding that Bio-Rad’s ddSEQ products infringe the ‘024, ‘468 and ‘530 patents. The judge also found all of our asserted patents to be valid and rejected Bio-Rad’s claim of ownership in all of the asserted patents. On February 12, 2020, the ITC issued its Final Determination affirming the judge’s findings with respect to Bio-Rad’s violation of the ‘024, ‘468 and ‘530 patents, including the judge’s findings for those patents with respect to infringement, validity and ownership. The ITC issued an exclusion order prohibiting Bio-Rad from importing into the United States infringing microfluidic devices, components thereof and products containing same, including the ddSEQ products. The ITC also issued a cease and desist order preventing Bio-Rad from selling such imported products in the United States. The ITC’s remedial orders do not identify any ddSEQ assay as exempted from their potential scope. The ITC orders do not prohibit the importation or sale of microfluidic consumables imported into the U.S. for use by researchers who are using such consumables as of February 12, 2020, and who have a documented need to continue receiving such consumables for a specific current ongoing research project for which that need cannot be met by any alternative product. On April 29, 2020, Bio-Rad appealed the Final Determination to the Court of Appeals for the Federal Circuit. Oral argument was held on March 11, 2021. On April 29, 2021, the Federal Circuit issued its decision completely affirming the Final Determination of the ITC, including its findings with respect to infringement, validity and ownership. The Nanostring Action On May 6, 2021, we 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. |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Capital Stock | Capital StockAs of March 31, 2021, the number of shares of Class A common stock and Class B common stock issued and outstanding was 87,057,062 and 22,531,465, respectively. During the three months ended March 31, 2021 and 2020, 150,000 and 31,774,013 shares of Class B common stock were converted to shares of Class A common stock upon the election of the holders of such shares. |
Equity Incentive Plans
Equity Incentive Plans | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plans | Equity Incentive Plans Amended and Restated 2012 Stock Plan As of March 31, 2021, the number of shares of Class A common stock issuable under the Amended and Restated 2012 Stock Plan which includes shares issuable upon the exercise of outstanding awards was 8,573,143. Following the adoption of the 2019 Omnibus Incentive Plan in September 2019, any awards outstanding under the Amended and Restated 2012 Stock Plan continue to be governed by their existing terms but no further awards may be granted under the Amended and Restated 2012 Stock Plan. 2019 Omnibus Incentive Plan As of March 31, 2021, the number of shares of Class A common stock available for issuance was 3,466,453 shares issuable in connection with outstanding awards and 13,234,261 shares reserved for issuance in connection with grants of future awards. 2019 Employee Stock Purchase Plan A total of 3,084,859 shares of Class A common stock was 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. Shares purchased under the ESPP are subject to a one-year holding period following the purchase date. During the three months ended March 31, 2021 and 2020, no shares of Class A common stock were issued under the ESPP. As of March 31, 2021, there were 2,921,132 shares available for issuance in connection under the ESPP. 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 2021 2020 Cost of revenue $ 464 $ 247 Research and development 6,796 2,887 Selling, general and administrative 8,916 3,584 Total stock-based compensation expense $ 16,176 $ 6,718 Restricted Stock Units Restricted stock unit activity for the three months ended March 31, 2021 is as follows: Restricted Stock Weighted-Average Outstanding as of December 31, 2020 823,947 $ 80.97 Granted 229,752 176.65 Vested (51,087) 74.74 Cancelled (17,226) 86.44 Outstanding as of March 31, 2021 985,386 $ 103.51 Stock Options Stock option activity for the three months ended March 31, 2021 is as follows: Stock Options Weighted-Average Outstanding as of December 31, 2020 11,860,844 $ 18.86 Granted 305,659 177.76 Exercised (1,051,281) 8.12 Cancelled (60,649) 18.76 Outstanding as of March 31, 2021 11,054,573 $ 24.28 |
Income Tax
Income Tax | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income TaxThe Company’s provision for income taxes was $0.4 million and $0.3 million, respectively, for the three months ended March 31, 2021 and 2020. The provision for income taxes for the three months ended March 31, 2021 consists primarily of foreign taxes. Deferred tax assets generated from the Company’s domestic net operating losses are fully offset by a valuation allowance as the Company believes it is more likely than not that the benefit will not be realized. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2021 | |
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 2021 2020 Stock-options to purchase common stock 11,054,573 14,528,141 Shares subject to repurchase 53,125 115,625 Contingent restricted shares 236,484 — Restricted stock units 985,386 58,254 Shares committed under ESPP 26,271 103,830 Total 12,355,839 14,805,850 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020 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 inputs into our judgments and estimates consider the economic implications of COVID-19 on our critical and significant accounting estimates. |
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsCash and cash equivalents are comprised of money market funds and cash which are classified as Level 1 in the fair value hierarchy. Money market funds are highly liquid investments which are actively traded. The pricing information for the Company’s money market funds are readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy. |
Revenue Recognition | Revenue Recognition The Company generates revenue from sales of products and services. The Company’s products consist of instruments and consumables. The Company began shipping its Chromium Connect instrument during the first quarter of 2020. The Company recognizes revenue when control of the products and services is transferred to its customers in an amount that reflects the consideration it expects to receive from its customers in exchange for those products and services. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. Revenue from product sales is recognized when control of the product is transferred, which is generally upon shipment to the customer. In instances where right of payment or transfer of title is contingent upon the customer’s acceptance of the product, revenue is deferred until all acceptance criteria have been met. 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. |
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 convertible preferred stock, awards under the Company’s equity compensation plan and common stock warrants. 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. |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The estimated fair value of assets acquired, including goodwill and intangibles, and liabilities assumed as of the acquisition date were as follows (in thousands): Amount Cash and cash equivalents $ 224 Other current assets 45 Property and equipment, net 38 Tangible assets acquired 307 Accrued expenses (555) Other current liabilities (97) Deferred tax liability - non-current (1,131) Total net tangible assets acquired and liabilities assumed (1,476) Intangible assets 5,640 Goodwill 4,511 Net assets acquired $ 8,675 |
Schedule of Intangible Assets Acquired | The intangible assets as of the acquisition date included (in thousands): Amount Weighted Average Useful Life (in years) Developed technology $ 5,500 10 Customer relationships 140 3 $ 5,640 |
Other Financial Statement Inf_2
Other Financial Statement Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Inventory | Inventory was comprised of the following as of the dates indicated (in thousands): March 31, December 31, Purchased materials $ 14,749 $ 9,930 Work in progress 11,752 9,312 Finished goods 12,006 10,717 Inventory $ 38,507 $ 29,959 |
Schedule of Property, Plant and Equipment | Property and equipment, net consisted of the following (in thousands): March 31, December 31, Land $ 29,145 $ — Laboratory equipment and machinery 33,628 30,010 Computer equipment and software 10,882 5,783 Furniture and fixtures 5,721 5,887 Leasehold improvements 49,217 42,068 Construction in progress 13,469 19,594 Total property and equipment 142,062 103,342 Less: accumulated depreciation and amortization (34,749) (30,502) Property and equipment, net $ 107,313 $ 72,840 |
Schedule of Intangible Assets, Net | Intangible assets, net, which are recorded within other assets in the condensed consolidated balance sheets, consisted of the following (dollars in thousands): March 31, 2021 December 31, 2020 Remaining Useful Life in Years Gross Accumulated Intangibles, Remaining Useful Life in Years Gross Accumulated Intangibles, Technology licenses 13.5 $ 22,503 $ (2,356) $ 20,147 13.7 $ 22,504 $ (1,973) $ 20,531 Developed technology 9.8 5,500 (138) 5,362 — — — — Customer relationships 3.5 945 (167) 778 3.9 805 (111) 694 Trademarks 0.6 204 (159) 45 0.9 204 (142) 62 Assembled workforce 4.5 1,128 (118) 1,010 4.8 1,128 (61) 1,067 Total intangible assets, net $ 30,280 $ (2,938) $ 27,342 $ 24,641 $ (2,287) $ 22,354 |
Schedule of Annual Amortization of Intangible Assets | The estimated annual amortization of intangible assets for the next five years is shown below (in thousands): Estimated 2021 (excluding the three months ended March 31, 2021) $ 1,946 2022 2,535 2023 2,506 2024 2,378 2025 2,214 Thereafter 15,763 Total $ 27,342 |
Schedule of Accrued Compensation and Related Benefits | Accrued compensation and related benefits were comprised of the following as of the dates indicated (in thousands): March 31, December 31, Accrued payroll and related costs $ 5,354 $ 2,506 Employee stock purchase program liability 3,020 1,258 Accrued bonus 3,728 5,058 Accrued commissions 2,171 3,038 Accrued acquisition-related compensation 744 2,213 Accrued vacation 1,118 1,035 Other 685 275 Accrued compensation and related benefits $ 16,820 $ 15,383 |
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): March 31, December 31, Accrued legal and related costs $ 5,030 $ 5,704 Accrued license fee 5,525 6,198 Accrued purchase consideration 5,046 4,146 Accrued royalties for licensed technologies 2,644 3,160 Accrued property and equipment 2,816 2,983 Accrued professional services 5,418 3,137 Product warranties 452 399 Customer deposits 1,419 1,727 Taxes payable 2,478 8,649 Accrued lab supplies 1,003 1,506 Other 834 5,844 Accrued expenses and other current liabilities $ 32,665 $ 43,453 |
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): March 31, December 31, Beginning of period $ 399 $ 467 Amounts charged to cost of revenue 591 796 Repairs and replacements (538) (864) End of period $ 452 $ 399 |
Schedule of Revenue by Source | The following table represents revenue by source for the periods indicated (in thousands): Three Months Ended 2021 2020 Instruments $ 11,125 $ 9,141 Consumables 93,079 61,428 Services 1,617 1,336 Total revenue $ 105,821 $ 71,905 |
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 2021 2020 North America $ 51,807 $ 39,732 Europe, Middle East and Africa 19,170 13,158 China 23,640 10,997 Asia-Pacific (excluding China) 11,204 8,018 Total revenue $ 105,821 $ 71,905 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Company's Operating Lease Liabilities | Future lease payments related to the Company’s operating lease liabilities as of March 31, 2021 is as follows (in thousands): Operating Leases 2021 (excluding the three months ended March 31, 2021) $ 3,845 2022 10,731 2023 10,404 2024 9,671 2025 9,844 Thereafter 48,733 Total lease payments $ 93,228 Less: imputed interest (20,728) Present value of operating lease liabilities $ 72,500 Operating lease liabilities, current $ 6,156 Operating lease liabilities, noncurrent $ 66,344 |
Summary of Additional Information Related to Operating Leases | The following table summarizes additional information related to operating leases as of March 31, 2021: March 31, 2021 December 31, 2020 Weighted-average remaining lease term: Operating leases 8.8 years 8.4 years Weighted-average discount rate: Operating leases 5.3 % 4.5 % |
Schedule of Estimated Undiscounted Lease Payments for Operating Lease, Lease Not Yet Commenced | Lease payments for leases not yet Commenced 2021 (excluding the three months ended March 31, 2021) $ — 2022 603 2023 2,993 2024 4,389 2025 4,519 Thereafter 37,994 Total undiscounted lease payments $ 50,498 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
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 2021 2020 Cost of revenue $ 464 $ 247 Research and development 6,796 2,887 Selling, general and administrative 8,916 3,584 Total stock-based compensation expense $ 16,176 $ 6,718 |
Summary of RSU activity | Restricted stock unit activity for the three months ended March 31, 2021 is as follows: Restricted Stock Weighted-Average Outstanding as of December 31, 2020 823,947 $ 80.97 Granted 229,752 176.65 Vested (51,087) 74.74 Cancelled (17,226) 86.44 Outstanding as of March 31, 2021 985,386 $ 103.51 |
Summary of the Company's Stock Option Activity | Stock option activity for the three months ended March 31, 2021 is as follows: Stock Options Weighted-Average Outstanding as of December 31, 2020 11,860,844 $ 18.86 Granted 305,659 177.76 Exercised (1,051,281) 8.12 Cancelled (60,649) 18.76 Outstanding as of March 31, 2021 11,054,573 $ 24.28 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
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 2021 2020 Stock-options to purchase common stock 11,054,573 14,528,141 Shares subject to repurchase 53,125 115,625 Contingent restricted shares 236,484 — Restricted stock units 985,386 58,254 Shares committed under ESPP 26,271 103,830 Total 12,355,839 14,805,850 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Revenue recognition, payment due period | 45 days | |
Fair Value, Inputs, Level 1 | Money Market Funds | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Fair value of money market instruments | $ 547,800,000 | $ 600,900,000 |
Unrealized gains (losses) on money market instruments | $ 0 | $ 0 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) $ in Millions | Jan. 08, 2021USD ($) |
Business Acquisition [Line Items] | |
Consideration transferred | $ 8.5 |
Estimated fair value of contingent consideration | $ 1.5 |
Tetramer Shop | |
Business Acquisition [Line Items] | |
Percentage of outstanding shares acquired | 100.00% |
Cash acquired | $ 0.2 |
Tetramer Shop | Developed technology | |
Business Acquisition [Line Items] | |
Weighted average useful life | 10 years |
Tetramer Shop | Customer relationships | |
Business Acquisition [Line Items] | |
Weighted average useful life | 3 years |
Acquisition - Schedule of Asset
Acquisition - Schedule of Assets Acquired and Liabilities Assumed, Including Goodwill and Intangibles (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jan. 08, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 4,511 | $ 0 | |
Tetramer Shop | |||
Business Acquisition [Line Items] | |||
Cash acquired | $ 224 | ||
Other current assets | 45 | ||
Property and equipment, net | 38 | ||
Tangible assets acquired | 307 | ||
Accrued expenses | (555) | ||
Other current liabilities | (97) | ||
Deferred tax liability - non-current | (1,131) | ||
Total net tangible assets acquired and liabilities assumed | (1,476) | ||
Intangible assets | 5,640 | ||
Goodwill | 4,511 | ||
Net assets acquired | $ 8,675 |
Acquisition - Intangible Assets
Acquisition - Intangible Assets Acquired (Details) - Tetramer Shop $ in Thousands | Jan. 08, 2021USD ($) |
Business Acquisition [Line Items] | |
Intangible assets | $ 5,640 |
Developed technology | |
Business Acquisition [Line Items] | |
Intangible assets | $ 5,500 |
Weighted Average Useful Life (in years) | 10 years |
Customer relationships | |
Business Acquisition [Line Items] | |
Intangible assets | $ 140 |
Weighted Average Useful Life (in years) | 3 years |
Other Financial Statement Inf_3
Other Financial Statement Information - Schedule of Inventory (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Purchased materials | $ 14,749 | $ 9,930 |
Work in progress | 11,752 | 9,312 |
Finished goods | 12,006 | 10,717 |
Inventory | $ 38,507 | $ 29,959 |
Other Financial Statement Inf_4
Other Financial Statement Information - Schedule Of Property Plant And Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 142,062 | $ 103,342 |
Less: accumulated depreciation and amortization | (34,749) | (30,502) |
Property and equipment, net | 107,313 | 72,840 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 29,145 | 0 |
Laboratory equipment and machinery | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 33,628 | 30,010 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 10,882 | 5,783 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 5,721 | 5,887 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 49,217 | 42,068 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 13,469 | $ 19,594 |
Other Financial Statement Inf_5
Other Financial Statement Information - Intangible Assets, Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 30,280 | $ 24,641 |
Accumulated Amortization | (2,938) | (2,287) |
Intangibles, Net | $ 27,342 | $ 22,354 |
Technology licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Useful Life in Years | 13 years 6 months | 13 years 8 months 12 days |
Gross Carrying Amount | $ 22,503 | $ 22,504 |
Accumulated Amortization | (2,356) | (1,973) |
Intangibles, Net | $ 20,147 | 20,531 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Useful Life in Years | 9 years 9 months 18 days | |
Gross Carrying Amount | $ 5,500 | 0 |
Accumulated Amortization | (138) | 0 |
Intangibles, Net | $ 5,362 | $ 0 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Useful Life in Years | 3 years 6 months | 3 years 10 months 24 days |
Gross Carrying Amount | $ 945 | $ 805 |
Accumulated Amortization | (167) | (111) |
Intangibles, Net | $ 778 | $ 694 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Useful Life in Years | 7 months 6 days | 10 months 24 days |
Gross Carrying Amount | $ 204 | $ 204 |
Accumulated Amortization | (159) | (142) |
Intangibles, Net | $ 45 | $ 62 |
Assembled workforce | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Useful Life in Years | 4 years 6 months | 4 years 9 months 18 days |
Gross Carrying Amount | $ 1,128 | $ 1,128 |
Accumulated Amortization | (118) | (61) |
Intangibles, Net | $ 1,010 | $ 1,067 |
Other Financial Statement Inf_6
Other Financial Statement Information - Annual Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
2021 (excluding the three months ended March 31, 2021) | $ 1,946 | |
2022 | 2,535 | |
2023 | 2,506 | |
2024 | 2,378 | |
2025 | 2,214 | |
Thereafter | 15,763 | |
Intangibles, Net | $ 27,342 | $ 22,354 |
Other Financial Statement Inf_7
Other Financial Statement Information - Schedule of Accrued Compensation and Related Benefits (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued payroll and related costs | $ 5,354 | $ 2,506 |
Employee stock purchase program liability | 3,020 | 1,258 |
Accrued bonus | 3,728 | 5,058 |
Accrued commissions | 2,171 | 3,038 |
Accrued acquisition-related compensation | 744 | 2,213 |
Accrued vacation | 1,118 | 1,035 |
Other | 685 | 275 |
Accrued compensation and related benefits | $ 16,820 | $ 15,383 |
Other Financial Statement Inf_8
Other Financial Statement Information - Schedule of Accrued Expense And Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued legal and related costs | $ 5,030 | $ 5,704 |
Accrued license fee | 5,525 | 6,198 |
Accrued purchase consideration | 5,046 | 4,146 |
Accrued royalties for licensed technologies | 2,644 | 3,160 |
Accrued property and equipment | 2,816 | 2,983 |
Accrued professional services | 5,418 | 3,137 |
Product warranties | 452 | 399 |
Customer deposits | 1,419 | 1,727 |
Taxes payable | 2,478 | 8,649 |
Accrued lab supplies | 1,003 | 1,506 |
Other | 834 | 5,844 |
Accrued expenses and other current liabilities | $ 32,665 | $ 43,453 |
Other Financial Statement Inf_9
Other Financial Statement Information - Schedule of Changes in the Reserve for Product Warranties (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Beginning of period | $ 399 | $ 467 |
Amounts charged to cost of revenue | 591 | 796 |
Repairs and replacements | (538) | (864) |
End of period | $ 452 | $ 399 |
Other Financial Statement In_10
Other Financial Statement Information - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | |||
Transaction price allocated to remaining performance obligations | $ 6,100 | ||
Contract liability | 6,100 | $ 6,200 | |
Deferred revenue | 4,481 | $ 4,472 | |
Contract with customer, liability, revenue recognized | 1,400 | ||
Products and Services, Excluding Grant Revenue | |||
Concentration Risk [Line Items] | |||
Deferred revenue | $ 4,300 | ||
Revenue | Geographic Concentration Risk | UNITED STATES | |||
Concentration Risk [Line Items] | |||
Percentage of revenue | 48.00% | 53.00% |
Other Financial Statement In_11
Other Financial Statement Information - Revenue Recognition (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | Mar. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations percentage | 70.00% |
Expected period of revenue recognition | 12 months |
Other Financial Statement In_12
Other Financial Statement Information - Schedule of Revenue by Source (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue from External Customer [Line Items] | ||
Revenue | $ 105,821 | $ 71,905 |
Instruments | ||
Revenue from External Customer [Line Items] | ||
Revenue | 11,125 | 9,141 |
Consumables | ||
Revenue from External Customer [Line Items] | ||
Revenue | 93,079 | 61,428 |
Services | ||
Revenue from External Customer [Line Items] | ||
Revenue | $ 1,617 | $ 1,336 |
Other Financial Statement In_13
Other Financial Statement Information - Schedule of Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 105,821 | $ 71,905 |
North America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 51,807 | 39,732 |
Europe, Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 19,170 | 13,158 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 23,640 | 10,997 |
Asia-Pacific (excluding China) | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 11,204 | $ 8,018 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 20, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Debt Instrument [Line Items] | |||
Loss on extinguishment of debt | $ 0 | $ (1,521) | |
Tranche A | Term Loan | |||
Debt Instrument [Line Items] | |||
Early payment of debt | $ 30,500 | ||
Early payment of debt principal amount | 28,300 | ||
Early payment, term payment | 1,800 | ||
Early payment of debt termination fees | 300 | ||
Early payment of debt interest amount | 100 | ||
Loss on extinguishment of debt | $ 1,500 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) € in Thousands, $ in Thousands | Nov. 12, 2020USD ($) | Apr. 27, 2020petition | Apr. 16, 2020EUR (€) | Dec. 18, 2019 | Oct. 31, 2020petition | Oct. 31, 2019USD ($)petition | Aug. 31, 2019USD ($) | Jul. 31, 2019USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Mar. 31, 2020USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($) | Nov. 06, 2020USD ($)ft² | Aug. 31, 2020petition | Jun. 30, 2020petition | Dec. 31, 2019USD ($) | Sep. 13, 2019USD ($) |
Loss Contingencies [Line Items] | |||||||||||||||||||||
Operating lease costs | $ 2,700 | $ 1,900 | |||||||||||||||||||
Variable lease costs | 100 | 100 | |||||||||||||||||||
Operating lease payment | 2,500 | 1,300 | |||||||||||||||||||
Accrual provision | 190 | 302 | |||||||||||||||||||
Restricted cash | 18,164 | $ 16,567 | |||||||||||||||||||
Percentage of accused microfluidic chips for payment of bond | 3.00% | ||||||||||||||||||||
Number of petitions for inter partes review | petition | 4 | 2 | 4 | ||||||||||||||||||
Payment of litigation settlement expense | € | € 2,800 | ||||||||||||||||||||
Number of petitions filed challenging validity of patent | petition | 2 | 2 | |||||||||||||||||||
Additional office building | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Real estate property, area | ft² | 145,000 | ||||||||||||||||||||
Expected total lease payments | $ 60,800 | ||||||||||||||||||||
Tenant improvement allowance | $ 10,000 | ||||||||||||||||||||
Milestone Payment | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Other commitment | 5,000 | ||||||||||||||||||||
BD Entities | Intellectual Property | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Purchase price of asset acquired | $ 25,000 | ||||||||||||||||||||
Annual payments | $ 6,250 | ||||||||||||||||||||
Payment period | 4 years | ||||||||||||||||||||
Bio Rad | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Company bear the legal cost of court | € | € 61 | € 61 | |||||||||||||||||||
Bio RadLaboratories Inc | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Damages awarded | $ 34,500 | $ 35,000 | $ 24,000 | ||||||||||||||||||
Royalty percentage on sales | 15.00% | 15.00% | |||||||||||||||||||
Royalty expense | $ 7,400 | ||||||||||||||||||||
Loss contingency | 44,800 | $ 38,000 | $ 38,000 | $ 68,700 | |||||||||||||||||
Bond amount | $ 52,000 | $ 52,000 | |||||||||||||||||||
Potential increase in bond amount | 61,000 | ||||||||||||||||||||
Potential decrease in bond amount | $ 35,000 | ||||||||||||||||||||
Post judgment interest | $ 800 | ||||||||||||||||||||
Restricted cash | 17,600 | ||||||||||||||||||||
Bio RadLaboratories Inc | Assets Held In Trust | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Cash collateral | $ 45,000 | ||||||||||||||||||||
Bio RadLaboratories Inc | Operating Expense | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Accrual provision | $ 30,600 | ||||||||||||||||||||
Pre and post judgment interest | 200 | 300 | |||||||||||||||||||
Bio RadLaboratories Inc | Cost of Sales | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Royalty expense | $ 500 | $ 4,400 | |||||||||||||||||||
Maximum | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Operating lease term | 12 years |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Company's Operating Lease Liabilities (Detail) $ in Thousands | Mar. 31, 2021USD ($) |
Operating Leases | |
2021 (excluding the three months ended March 31, 2021) | $ 3,845 |
2022 | 10,731 |
2023 | 10,404 |
2024 | 9,671 |
2025 | 9,844 |
Thereafter | 48,733 |
Total lease payments | 93,228 |
Less: imputed interest | (20,728) |
Present value of operating lease liabilities | 72,500 |
Operating lease liabilities, current | 6,156 |
Operating lease liabilities, noncurrent | $ 66,344 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Additional Information Related to Operating Leases (Detail) | Mar. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Weighted-average remaining lease term, operating leases | 8 years 9 months 18 days | 8 years 4 months 24 days |
Weighted-average discount rate, operating leases | 5.30% | 4.50% |
Commitments and Contingencies_4
Commitments and Contingencies - Estimated Undiscounted Lease Payments (Details) - Additional office building $ in Thousands | Mar. 31, 2021USD ($) |
Lessee, Lease, Description [Line Items] | |
2021 (excluding the three months ended March 31, 2021) | $ 0 |
2022 | 603 |
2023 | 2,993 |
2024 | 4,389 |
2025 | 4,519 |
Thereafter | 37,994 |
Total undiscounted lease payments | $ 50,498 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - shares | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||
Common stock shares issued (in shares) | 109,588,527 | 108,485,909 | |
Common stock shares outstanding (in shares) | 109,588,527 | 108,485,909 | |
Shares Converted From Class B to Class A | |||
Class of Stock [Line Items] | |||
Conversion of stock, shares converted (in shares) | 150,000 | 31,774,013 | |
Common Class A | |||
Class of Stock [Line Items] | |||
Common stock shares issued (in shares) | 87,057,062 | ||
Common stock shares outstanding (in shares) | 87,057,062 | ||
Common Class B | |||
Class of Stock [Line Items] | |||
Common stock shares issued (in shares) | 22,531,465 | ||
Common stock shares outstanding (in shares) | 22,531,465 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Detail) - Common Class A - shares | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | |
10x Genomics, Inc. 2012 Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock issuable (in shares) | 8,573,143 | ||
2019 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock issuable (in shares) | 13,234,261 | ||
Shares issuable in connection with outstanding awards (in shares) | 3,466,453 | ||
2019 Employee Stock Purchase Plan | Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for issuance (in shares) | 2,921,132 | 3,084,859 | |
Share-based compensation arrangement percent | 85.00% | ||
Holding period following purchase | 1 year | ||
Shares issued in period for previously outstanding awards (in shares) | 0 | 0 |
Equity Incentive Plans - Record
Equity Incentive Plans - Recorded Stock-Based Compensation Expense in the Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expensed [Line Items] | ||
Stock-based compensation expense | $ 16,176 | $ 6,718 |
Cost of revenue | ||
Share-based Payment Arrangement, Expensed [Line Items] | ||
Stock-based compensation expense | 464 | 247 |
Research and development | ||
Share-based Payment Arrangement, Expensed [Line Items] | ||
Stock-based compensation expense | 6,796 | 2,887 |
Selling, general and administrative | ||
Share-based Payment Arrangement, Expensed [Line Items] | ||
Stock-based compensation expense | $ 8,916 | $ 3,584 |
Equity Incentive Plans - Summar
Equity Incentive Plans - Summary of RSU Activity (Detail) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Restricted Stock Units, Beginning balance (in shares) | shares | 823,947 |
Restricted Stock Units, Granted (in shares) | shares | 229,752 |
Restricted Stock Units, Vested (in shares) | shares | (51,087) |
Restricted Stock Units, Cancelled (in shares) | shares | (17,226) |
Restricted Stock Units, Ending balance (in shares) | shares | 985,386 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Grant Date Fair Value, Beginning balance (in dollars per share) | $ / shares | $ 80.97 |
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 176.65 |
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares | 74.74 |
Weighted-Average Grant Date Fair Value, Cancelled (in dollars per share) | $ / shares | 86.44 |
Weighted-Average Grant Date Fair Value, Ending balance (in dollars per share) | $ / shares | $ 103.51 |
Equity Incentive Plans - Summ_2
Equity Incentive Plans - Summary of Company's Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding stock options, Beginning balance (in shares) | shares | 11,860,844 |
Outstanding stock options - Granted (in shares) | shares | 305,659 |
Outstanding stock options - Exercised (in shares) | shares | (1,051,281) |
Outstanding stock options - Cancelled (in shares) | shares | (60,649) |
Outstanding stock options, Ending balance (in shares) | shares | 11,054,573 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted-average exercise price - Beginning balance (in dollars per share) | $ / shares | $ 18.86 |
Weighted-average exercise price - Granted (in dollars per share) | $ / shares | 177.76 |
Weighted-average exercise price - Exercised (in dollars per share) | $ / shares | 8.12 |
Weighted-average exercise price - Cancelled (in dollars per share) | $ / shares | 18.76 |
Weighted-average exercise price - Ending balance (in dollars per share) | $ / shares | $ 24.28 |
Income Tax - Additional Informa
Income Tax - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 435 | $ 298 |
Net Loss Per Share - Shares of
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 12,355,839 | 14,805,850 |
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) | 11,054,573 | 14,528,141 |
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) | 53,125 | 115,625 |
Contingent restricted shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 236,484 | 0 |
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) | 985,386 | 58,254 |
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) | 26,271 | 103,830 |