Overview
TXG reports after the close and we expect upside to revenue, the key factor for shares. COVID-19 resurgence is a negative broadly for access to research labs and the ability to run experiments that use TXG equipment and consumables, in addition to the ability for supplier to make sales and host seminars. The recent surge in COVID19 is re-emerging as a headwind, but we’d also note that the majority of academic labs are in coastal and urban settings where the recent uptick in case volumes have been more modest, at least so far. Throughout 3Q20 NIH grants for single cell sequencing related funding, which we believe ties directly to TXG’s revenue, has remained robust and we’d note these awards remain in a backlog of spending even as access to labs becomes constricted.
Key among the metrics we track, the number of funded primary investigators (PI) increased to 2,047 at the end of September from 1,642 PIs at the end of June, the highest rate of additions in the time series. Our unadjusted revenue estimate, assuming no impact from COVID19 is $97.7M, and assuming COVID19 was a negative drag of -30% in the quarter, our estimate is $68.4M, compared to consensus of $61.2M.
NIH Data | Single Cell Sequencing
All data available upon request. Please reach out to with any inquiries.
Thomas Tobin
Managing Director
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