Hello, everyone. This is Rachel Vatnsdal from the Life Science Tools and Diagnostics team here at JP Morgan. Thank you so much for joining us for the first presentation of the day. I am joined by the 10x Genomics management team. So, as typical, this will be a 40-minute presentation. The first part will be a presentation followed by Q&A. So, with that, I will hand it off to the CEO. Serge.
Thank you, Rachel. All right. This slide contains important information about forward-looking statements we plan on making today. Now, with that, I'll start with our mission. Our mission has been the same from the very beginning of the company, since the earliest days when we started. The premise for starting the company was that this is the century of biology, that life sciences is an exponential trajectory driven by advances in technology and computation in the accumulation of biological knowledge, and that this trajectory, these advances, are going to transform the world. You can think in terms of curing diseases, advancing human health, transforming the human condition. The key throttler to this trajectory, to this promise, is that we still understand very little of the underlying biology. What we don't know, what we don't understand, is actually much greater than what we do understand.
And so, our goal at 10x has been to accelerate the understanding, the mastery of biology, to ultimately advance human health. And the key challenge, right, the most salient feature of biology is its inherent immense complexity. Each one of us is made up of close to 40 trillion cells. Each one of those has this enormous complexities of molecules interacting with each other in all kinds of complex and dynamic ways. And we posit that to address that complexity, you need tools, you need technologies that can measure biology at really large scale, at really high resolution, that matches the complexity of the biology, and that the legacy toolset of life sciences is not really adequate for that task. And that's what we have set out to build as a company.
In particular, the key to understanding biology is that you need to understand it at the cellular level. The cell is the fundamental unit of biology. And it is actually kind of a striking, mind-blowing fact that up until fairly recently, we didn't really have the means of measuring biology at that individual cell level. You would take your sample, take all the cells in that sample, and you would mix their contents together to measure that mixture, which gives you an average profile. So, this is kind of akin to if you're trying to understand how cars work, measuring how much metal, how much glass, how much plastic is in each car. But now, for the past eight-plus years, we have had the technology to measure individual single cells. And what single-cell analysis really gives you, essentially, is the parts list of human biology.
More recently, there has been an emergence of spatial biology, a new field that lets you see how cells and molecules are arranged with respect to each other in tissue. That essentially tells you how the parts fit together. These are really foundational things. Our view is that eventually, every relevant sample will need to be analyzed with single-cell and spatial context. At 10x, we have invented, developed, and commercialized technologies to give researchers access to this kind of information, the single-cell and spatial information. We build instruments, consumables, software, and we strive to provide customers with end-to-end solutions to be able to analyze their samples, to be able to see biology they could not see before. Our Chromium platform on the left here really catalyzed the single-cell revolution when we launched it eight and a half years ago.
Out of the gate, it was one of the fastest-growing technologies in the history of our industry, and we believe it's still very early days for the platform. Our spatial franchise comprises two platforms, Visium and Xenium. Spatial is still a relatively new area, but growing really fast and is really poised to revolutionize multiple areas across life sciences, so the foundational strength of our company is our innovation engine. This is the ability to develop breakthrough products at speed and also knowing what products to develop, so since the very beginning, we worked really hard to build out deep expertise across multiple disparate fields and create the right culture, the right processes, the right structures to enable really tight multidisciplinary collaboration at speed so you can develop many amazing products in parallel.
And the way we approach things is that we think really hard about where the world is going, what questions researchers are going to be asking in the future, what projects they're going to be embarking on, and then work backwards from there to determine what technologies and what products need to be developed in the service of those questions. And once we gain conviction, we move rapidly to bring great products to market. And so, our innovation engine has been really productive across the years. Many amazing products, many breakthrough innovations, revolutionizing multiple fields of scientific research. And so, from the beginning, we have invested intensively in building out the right foundational capabilities to reach this kind of scale that we have now so that now, going forward, we can keep leveraging the scale for more growth and more impact going forward.
We have also scaled up our commercial organization for global reach and top-notch customer experience. We have a large global, worldwide sales force, a best-in-class support organization that's really obsessed with customer success. We have really deep expertise across multiple applications of these really sophisticated applications. And we consistently hear from customers just how much they value our support organization. And it's important to appreciate that given the disruptive nature of these technologies, of these applications, these markets, it's important, really important to have the commercial force with the right kind of expertise.
We see our commercial organization as a critical complement to our innovation engine, both by virtue of them delivering all these innovations to our customers, but also because we're able to form deep partnerships with our customers that allows us to see what questions they're going to be asking in the future, where they're headed with their research programs, and then feed that information back into our innovation engine to build products that can reinforce our position in the marketplace. We have also built out really strong capabilities in our operations organization. The goal here is to be able to manufacture and reliably deliver products across the world, so to drive really high quality, high consistency, supply chain control, and also, the investments we've made give us really great structure, cost structure, to go forward as we scale.
And so, as with everything else, we invest in foundational capabilities that we can then leverage as we scale. And that becomes particularly important as we seek to expand to more customers and more customer types, especially in some areas like translational applications and biopharma, where some of the requirements around quality, consistency, supply chain are more stringent than others. Yesterday, we announced our Q4 and full year 2024 results. We had over $610 million in revenue, exceeding the high end of our guide. We sold over 1,000 instruments last year, and we maintained a healthy balance sheet. But the real story of the year was really that 2024 was a year of change for us. We launched multiple new products across all our three platforms. Any one of those launches would have been the story of the year. We did all three simultaneously in one year.
This did entail some pausing among our customers as they evaluated the new products and to decide whether they should switch over their projects, their research programs onto the new products, but all of these products have actually been met with really, really great customer response. Great feedback makes us really, really optimistic about the products that we launched and about how it sets us up for the future. We also, on the single-cell side, introduced a number of new products with reduced pricing, and this is part of our overarching strategy that we have articulated earlier about driving into the elasticity of demand. We believe there's huge potential to expand single-cell further by reducing prices, and this is part of that strategy, and finally, we embarked on a major reorganization of our sales force to really match the growing diversity of our products and our customer types.
Again, to invest in the foundation to allow us to scale to the future. And so, while all of these changes entailed some near-term challenges, we do believe that we're confident they're setting us well as we go forward for the long term. And the reason we have been making these changes, the reason we've been making all these investments, is the tremendous opportunity we see in front of us. When you look at how our products are used, and this is by design, they're essentially replacing much of the conventional toolkit across the life sciences. They're not displacing any particular technology or any particular method. Rather, they're really transforming, changing the way that research is done. And so, they're not also confined to any particular application, any particular therapeutic area.
In fact, despite the fact these technologies are relatively recent, it is really hard to think of an area of biology where they're not making a major, major impact. There have now been 10,000 papers in high-impact journals making use of these products across every field of biology, every therapeutic area, every disease, driving really foundational, fundamental discoveries. And the reason for that is what I said earlier. The cell is the fundamental unit of biology. And so, we see this market as fundamentally not being constrained by applications. The endpoint to us is clear. Ultimately, all samples need to be analyzed using these approaches. But the question is really about the timing to get there. How quickly will scientists convert to this new way of doing science?
And so, when we think about the market, think about where we currently are, and then expanding out to the labs out there that are using in relevant areas, that are using techniques, approaches that are adjacent to single-cell and to spatial technologies. And if those labs were to adopt our technologies at the rate, roughly, of the current customers, then that becomes we see that as a serviceable, addressable market, and that comes out about $13 billion. If you then expand beyond that to all labs in life science research, and if they were to adopt our tools at the levels of existing current customers, that would come out to $21 billion, which is our total addressable market, which is still a relatively small fraction of the overall research tools market, which is $75 billion.
Now, it's important to note here, I'm focusing exclusively on the research tools market. This does not contemplate potential applications of these kinds of technologies in other areas, especially, particularly, in clinical context. And so, regardless of how you look at things, our current revenue is only a tiny percentage of the overall market, which means we have a tremendous opportunity to grow and expand to more customers and more use cases. And so, given this position, we have multiple levers of growth ahead of us. Among the main ones is, first of all, expansion within academia, within mainstream research. Our customers are still, by and large, concentrated among innovators and early adopters. And there is a great, great opportunity to expand much more into the sort of middle majority part of the market and beyond.
We started with these technologies very much in the realm of basic science. Over the past years, it's been expanding more into translational uses, and especially with the recent advances we've made on the product side with the arrival of technologies that are compatible with FFPE, thick samples, other advances we have made. There is more and more uses within translational research, and there's a huge opportunity for us to grow forward, to go forward in that area. Third, we're particularly excited about potential in biopharma. We're particularly under-penetrated in biopharma at this point. Between 15% to 20% of our business is there. There's potential to grow to 50%.
And fourth, kind of underlying all of this, we intend to keep driving expansion through product innovation, to keep delivering lower-cost products to tap into elasticity, to deliver new applications, to keep streamlining workflows to remove, to keep removing barriers and obstacles to adoption for more customers and more routine use. And so, overall, our technologies are positioned incredibly well to take advantage of the set of opportunities in front of us. So first, on single-cell, Chromium is the unambiguous leader in single-cell analysis. It's the platform that catalyzed the single-cell revolution. It supports a wide range of applications and assays. The system is really well known for really high performance, robustness, data quality, ease of use. It also has a huge ecosystem of data sets, publications, customers, protocols.
And that brings a lot of value to our customers because it allows us to calibrate, get their results in the context of other results, collaborate with others, onboard new applications, learn from their collaborators. And so, the Chromium platform has come far in a relatively short amount of time. At the same time, we believe it's still very early days. The vast majority of biological research that could benefit from single-cell doesn't yet, which is why last year was the biggest year of Chromium product launches in our history. We introduced a new microfluidics architecture, GEM-X, and a slate of new products and capabilities. Once again, we raised the bar on performance, on data quality, on robustness, on scale, rolled out powerful new capabilities to improve ease of use on the sample prep side, core workflow, data analysis, and all of that at a lower price as well.
We established a new standard for scale and cost. You can now run million-cell experiments with a single chip, a single run, millions of cells. You can also do so where you're reaching cost points of $0.01 a cell, really revolutionary. And also, with our on-chip multiplexing products, you can now get down to $600 a sample doing single-cell at any scale, whether it's just getting going with pilot experiments, whether it's expanding into more routine use at any scale. And so, as I said, our goal is to democratize single-cell analysis, to drive it to ubiquity, to routine use. We believe there's huge elasticity in these markets. And this past year, we took major steps for enabling that going forward. Now, Spatial is naturally complementary to the single-cell franchise.
It comprises two platforms here: Visium, which is more focused on unbiased discovery using NGS, and Xenium, which is more targeted. It's an integrated platform that uses direct imaging to do single molecule analysis directly in tissue. As with single-cell, there's a wide variety of applications. These platforms have the best performance, best quality of data. This has been shown time and time again in multiple benchmark studies. They also stand out for their workflows and ease of use. Importantly, these platforms are compatible with FFPE and also allow you to do H&E staining and immunofluorescence on the same section as the spatial analysis, which makes this a natural bridge into standard pathology workflow and to translational applications and beyond. We see this as potentially the most significant technology revolution since the arrival of NGS and with potential to have even more impact going in the future.
But it's still very early. In fact, some of the most fundamental capabilities just got established last year. 2024 was a big year of spatial product launches for us as well. We launched Visium HD, which enables unbiased whole transcript analysis at single-cell scale. We launched Xenium 5K, which increased the plexing levels by an order of magnitude to 5,000. We launched multimodal cell segmentation, which is a really sophisticated approach for being able to identify single-cell boundaries in your spatial data, and much more in terms of content, in terms of software capabilities. And all of these got really great receptions for our customers. And so, when you put it all together, you really see we have the most comprehensive, the best performing, the most widely adopted set of spatial tools in the market. It's also important to appreciate just how complementary these platforms are to each other.
I heard a customer once say that biology is like a black box, and the different 10x tools allow you to have different vantage points into that black box. And so, having them under one roof provides a lot of value to our customers. And we see this time and time again where customers are using these platforms in combinations: Chromium followed by Xenium, Xenium followed by Visium, and so on. So there's just a big advantage to customers having access to be a part of this 10x ecosystem in terms of getting the best insights, the best value, and the best support across their research. And so, we take pride in developing best-in-class products that push the field forward, push the frontiers forward. And last year was really another great example of just the incredible productivity of our innovation engine.
Going forward, we intend to keep leveraging our R&D capacity to keep delivering more and more value to our customers: more applications, more biology, more investments in workflows, and lowering costs over time. To take the best advantage of all that innovation and all this opportunity, we're also putting in place the right sales structures, like I mentioned earlier. And the key notion here, the key goal, is to be able to execute multiple different imperatives in parallel to make sure we can drive CapEx equipment sales, especially on the high-end for Xenium, as well as being able to nurture and expand utilization among new customers, at the same time being able to maintain our existing customers and help them expand with new application and into more routine use.
And also, as I mentioned, putting in place a new structure, a new organizational structure around biopharma to be able to bring focus specifically to that business. And importantly, by virtue of clarifying that focus, this structure is set up to be efficient and leverageable for growth with only modest additional investment going forward. One of the most exciting trends over the past few years has been the expansion of single-cell and spatial into translational applications, especially to enable larger cohort studies. We have had customers coming to us more and more now telling us about interest in running big projects on clinical samples. Many are focused on cancer, some on autoimmunity, many on neurodegeneration, many other areas. And really, what they're looking to do is to understand the fundamental biology, look for drug targets, discover biomarkers, the end goal of really enabling precision medicine.
We see this as early days of this trend, both in terms of the numbers of these studies and also the scale of them going forward. And while we believe we have only scratched the surface of what's possible in academia, we're even more excited about the potential to grow in biopharma. As I mentioned earlier, where currently about 15% to 20% of our business is in biopharma, we expect this to grow to 50%. And there is now increasing evidence, compelling evidence, of the utility of single-cell and spatial across the entire process of drug development, from target ID to drug discovery to preclinical through clinical trials. Lots of amazing use cases. And our goal, our opportunity now, to expand those use cases throughout the whole ecosystem to more companies, more departments. And our new sales structure is designed to do precisely that going forward.
One of the most powerful emerging applications in biopharma, and actually more generally as well, are these large-scale CRISPR screens. And the idea here is to be able to use CRISPR editing at really massive scale to go with a single cell where the cell becomes a unit of experiment to make changes to genes in individual genes or in combinations to see their effect on biology. And this way, you can figure out gene function, find regulatory networks, figure out causality in really, really rapid fashion. And this parallelization is an incredibly powerful way to accelerate science, find drug targets, test potential interventions. We have seen this becoming a big wave recently, driven by decreasing costs of sequencing, advances in single-cell, and advances in algorithms and data analysis.
Also, our GEM-X Flex assay, which we launched at the end of last year, is particularly great for these massive experiments because of its scale, because of its robustness, low cost, and particularly high sensitivity. So we're seeing lots of growth of this application across both academia and industry. People are now looking to use these experiments very large scale, putting together with advanced algorithms to really build predictive models of biology. We see this as a really foundational direction because it's really about figuring out how biology works, which brings me to my final point. We have this great set of opportunities poised for great growth going forward. But on top of that, the world is now going through a major revolution, a revolution that will supercharge many of the things I talked about today. The revolution in AI has huge potential to transform our understanding of biology.
We're seeing a lot of interest among top cutting-edge scientists in building out virtual models of biology, of cells, of molecules, of tissues. Many of our customers are working on this. The big thing about all these new AI advances is that they need a lot of data, right? A lot of high-quality data to be able to see molecules, to compile molecules, cells, and tissues. Of course, that's precisely what we have built: the tools to generate lots of large-scale, high-quality data. Conversely, from our side, from the beginning, as we embarked on building out these tools, we knew that ultimately, the biggest bottleneck is going to be able to analyze this data. Once you produce this large-scale data, how do you go from there to insight? The emergence of these AI approaches provides the perfect way to address that bottleneck.
And so there's this incredible complementarity and synergy between the capabilities and needs of AI and the advances that we've been making with our technologies. And so we're really excited to be working with many customers to enable them to build ever larger AI models of biology, of molecules, of cells, of tissues. And we see that this convergence of the two revolutions, and on the life science side and on AI, is really how we will ultimately master biology, transform human health, and realize really the premise of the century of biology. So putting it all together, we're on the verge of a transformational time. As a company, we're in a great place, established leadership at the nexus of great technologies and large markets, really strong competitive differentiation, multiple pillars of growth going forward.
We have scaled the company to be able to enable growth going forward, to leverage the investments we've made to achieve best-in-class financial profile. Thank you.
Perfect. Thank you, Serge. So maybe just first up for Q&A, I wanted to dig into the pre-announcement yesterday. Congratulations on the nice solid beat, both on single-cell and on spatial. If we look at your comments during the third quarter earnings call, you noted that you were really not expecting that typical Q4 seasonality given just where we were at from a macro perspective. So can you walk us through some of the drivers? Did you see a budget flush? Did macro improve throughout the quarter? And then was any of this as a result of some of the updated commercial reorgs that you started as well?
Yeah. Good question. So it's important to note a couple of points to make here. First of all, as far as the macro environment, I wouldn't call that out as being particularly different than what we saw early in the year, certainly in Q3. We did call out the fact that given how the year had gone, it would not have been, we weren't expecting normal budget flush that you see every year. We did see more of that than we're expecting at the end of Q3. And that was concentrated pretty much exclusively, I would say, in the biopharma area. So as far as our changes we're making on the sales side, this is very much a work in progress. We're really happy with the progress we have been making, but very much trending along the lines of what we were kind of expecting.
It's hard to say. It's hard at this stage to say that we should attribute kind of what happened in the quarter to that process. I think we would have been probably more challenged to capture some of those budget flush dollars in the absence of, let's say, the new biopharma team in the organization. But it's still a work in progress, and it'll take some amount of time for those changes to bake in and get fully realized as we are proceeding through the course of this year.
Great. That's helpful. Then I wanted to dig into the spatial numbers a little bit. Specifically, just on Xenium, can you walk us through instrument placements for Xenium? How did that trend in the quarter relative to your expectations? Spatial consumables overall did much better than expected. So can you walk us through some of the drivers there on the spatial side this quarter specifically?
I think we're happy, obviously, with the results. I think, again, I would attribute that to, compared to the expectations going back at the beginning of the quarter, to somewhat more of a budget flush that we saw. We also saw just kind of, as we proceeded through the quarter on the internal side, there was greater rigor in terms of pipeline management, funnel management, addition of opportunities to the pipeline. So that has been trending well. I do want to say that the macro conditions so far are fairly similar to what we had seen before.
Then, maybe just going back to your comments in the commercial reorg. So, appreciated, it's still early days, but can you just walk us through what's the latest expectation for how long that transition will take? At this point, how many positions do you have open? Were you able to fill some of them throughout the quarter despite it being the holiday season? And what's just kind of the latest that we should expect there?
Yeah. And I would go back to what we said on the last earnings call, and I think we're still on that similar path going forward. Our intention is to hire out the teams. And you also need to give a period of time for them to kind of bake into the new roles and new kinds of rules and patterns of operating. And so we're targeting the middle of this year as kind of the point at which the team and the whole organization is functioning at full or close to full capacity. So we're happy with the progress we've been making. Again, trending roughly along the lines of what we were projecting, expecting. The biopharma team, in particular, has been making progress and getting built out.
We've made some progress in hiring on the Xenium side, although there's quite a bit more work to do on the CapEx side. But yes, things are on track and proceeding fairly close to our expectations from before.
Perfect. That's helpful. So maybe sticking on 2025 then. So appreciate that you guys are going to give guidance a few weeks from now. But just in terms of 2025, you've at least talked about the first half being pressured as we go through some of these restructuring efforts and also just the macro backdrop as well. But that said, you're also going to face easier comps. So given some of these new product launches, given some of the commercial reorg, how should we think about the drivers of 2025 at this point?
Yeah. So there's kind of multiple factors at play here. Our kind of baseline assumption is, yes, the macro was a particularly challenging story this past last year. We don't expect it to get better. Don't necessarily expect it to get worse, but that's our baseline assumption, right? And we did make a lot of changes, as I said, on the commercial side on sales force. And that's going to take some amount of time for those changes to work themselves through. And as I said, kind of we're targeting middle of the year for them to settle in. We also launched a whole lot of products last year, especially towards the end of the year. And those products are meant to drive into elasticity as well.
This is one of the points we've been making that we want to be cognizant of the fact that when you kind of launch these products, the initial effects tend to be some amount of pressure on the top line as you have lower prices. As that starts over time, that starts driving up volume. In the long run, it's absolutely the right thing to do because it drives the expansion of the market, drives the expansion of demand. It merits being more cautious in the near term in terms of the impact on the top line.
Perfect. Then one of the trends on 2025 that I think all investors are curious on is just the funding environment. Given the new administration, there's been some comments regarding NIH budgets or just Department of Government Efficiency. So can you walk us through what is your outlook as it stands today on what we could see from a budget dynamic? And then have you seen any impact to customer behavior so far post the election cycle? Lastly, can you just remind us what is your direct and indirect exposure to NIH funding as well?
Right. So just first, maybe starting with the last question first. So as far as NIH is concerned, the way to think about it is that something like half of our business, about 50% of our business is U.S., a little bit more. Of that, something like 40% is financed through NIH, funded through NIH. Or 75% of that, let's say, is academia. Then something like 40% is funded through NIH. And so you get down to about 20% as NIH of the sort of total business. The direct NIH exposure is about a few percent. So relatively small. So even on the scale, even though we are heavily weighted toward academia, despite that, sort of the fluctuation in NIH only have a modest impact on our business.
I think in general there was, to some extent, a story of last year, sort of the expectation of what might happen within NIH. And I think some of what we saw last year was already customers anticipating sort of the uncertainty of the funding and kind of being more conservative and more cautious in their spending. So some of that has already been baked in even before sort of the election and to some extent after the election. I think it's important to keep in mind that while there could be a lot of consternation on this point, NIH, by and large, I mean, everyone, there's a bipartisan sentiment that people want to cure diseases, right? And after everything is said and done historically, NIH almost universally comes out in a good spot.
And so I think it's probably most logical to kind of look to sort of the historical patterns and figure that there's not going to be some major slashing of NIH. But it is a reason to be relatively more cautious when we think about the rest of the year.
Got it. That's helpful. I think one of the key highlights from your presentation was some of the new product launches. You guys were very busy this year. I believe you launched nine new products. So can you just help us, investors, understand what should really be the most needle-moving products that you guys launched this year? And then as we look into 2025 and beyond, what are the areas that you guys are focusing on in terms of R&D priorities, and what should we expect from a product pipeline going forward?
Yeah. So I mean, it is really true. We launched a lot of products, and it's kind of asking which one of your children you like most, right? I mean, they're meant kind of almost by definition, a lot of the products are meant to be needle-moving, right? We think carefully about where we make investments, and there's a strong rationale behind all of them. Last year was a particularly big year because these were fundamental kind of platform-defining products on every platform. Still early days, they were all met with great response from our customers. You kind of saw some of the quotes in my presentation. So we'll kind of have to see. Obviously, they have somewhat different imperatives. The different platforms are in different stages of maturity. And so the impact that we expect from each is going to be different by virtue of that.
As I mentioned, on the Chromium side, the goal right now is to drive the democratization of that franchise generally. Spatial is kind of in a different part of the lifecycle. It's still kind of emerging application. It's still growing really rapidly with earlier customers. So yeah, I'm not going to kind of single out any particular product for favor. I think all of them have the potential for different reasons to really impact the business, especially in the long term. As far as our future product development directions, it's sort of, yeah, you can think of it as we sort of have two imperatives. One is keep establishing franchises and so keep raising the bar for cutting-edge researchers, so kind of more applications and being able to measure more biology. And also the second imperative is to drive the democratization of those technologies, right?
That means investing in workflows, investing in logistics, kind of data analysis to keep smoothing out those workflows. We're going to keep pursuing that strategy. I think on both fronts, we have a lot of great potential innovation ahead in store.
Perfect. Then just sticking in the product topic. So I wanted to walk through competition. I think this is an area that we've seen a lot of focus across investors as well, just given you've seen more aggressive entrance from some of your peers into some of the markets that you compete in, pressures on pricing, some of this elongated sales cycle, which is also just partially the market right now. But just can you walk us through what strategies are you taking to address some of the competitive front? And then what makes you most confident in that long-term trajectory, both on single-cell and spatial?
Yeah. So I mean, our North Star is always to deliver the best products and best customer experience, right? That has served us really well from day one. If you remember, it's easy to forget now, but from the very beginning, single-cell was actually a really, really competitive area, right? And we succeeded by virtue of building the best products and really focusing on the customer. There's been that sort of those dynamics kind of wax and wane, right? There's waves. Over the last couple of years, there's been more entrants into the single-cell side of things. And over the course of last year, some of those entrants were particularly kind of aggressive in trying to go after our customers. But the dynamic has been largely the same, right? Customers try. They always look for other potential solutions. But then once they evaluate, they keep coming back to us.
Especially with the launches of all the new products last year in terms of increasing the bar on performance and also now lowering the price, so increasing the value, the one wedge that some of those competitors had was around price. That has also disappeared now. We feel really good about our position and really across all the platforms, as I mentioned, based on feedback from customers, based on just the fundamental performance based on our position in the market.
Perfect. That's helpful. Maybe just wanted to dig into Chromium and some of the launches that you had there recently. So specifically just on the Chromium X, can you talk about feedback that you've received so far on that product? Anything specifically you want to highlight? And then what other new applications are customers exploring with this offering as well?
So X is this inexpensive instrument that we launched in the second half of last year. It's been received well by our customers. And what we are finding with our sales force is oftentimes a great door opener. People who thought they weren't really they didn't have the means to enter the single-cell world now see that actually you don't need to make a big investment. But once they start talking to our team, they kind of they oftentimes realize that they can actually kind of step up. And we oftentimes end up selling them other instruments and other applications as well. So it's been kind of a great door opener in that sense. And yeah, this past quarter has been sort of a pleasing dynamic that we've seen on the Chromium instrument side in terms of driving more placements, more sales. It's been quite fruitful that way.
Perfect. Maybe going alongside that, just on you guys bringing into some of these lower-cost products to open up some of the key markets, can you spend a minute talking about the price elasticity, but more specifically, how does that impact the margin profile? And how should we think about that long term?
Yeah. I mean, so one of the things I want to point out, some of the products that we launched towards the end of last year, Chromium consumables, even though the prices are lower, the gross margin profile is actually in line with our historical gross margin. So thanks to the innovation engineering of our team, we don't actually have to make those compromises. We can have our cake and eat it too. And as far as elasticity is concerned, first of all, from kind of first principles and historical data, there's a lot of evidence for elasticity in the marketplace. We've also been accumulating data points now over time that suggest a point to robust elasticity in the marketplace.
And especially now as we're looking at kind of what is happening on the Chromium side as we go into from Q3 to Q4, there's actually, while the top line is only modestly improved, there's a robust growth in reactions that we're seeing. And that's a really great evidence of the elasticity as these new products are coming in. They're actually driving more reaction growth, more volume.
Perfect. And then it looks like we only have about a minute left. So maybe just in the closing comments, Serge, can you just walk us through what do you think is the most underappreciated aspect of the 10x story right now?
I don't think people quite appreciate the scope and the fundamental nature of what we have built and the universal kind of applicability of the technology stack. And so when you think about that and you combine it with the fact that how well the technologies work, you put it together, you realize the amount of opportunity and our ability to capture the opportunity is really unsurpassed. And despite some of the challenges and some of the changes we're making that are meant for the long term that sometimes put pressure on the short-term performance, the long-term value of the company is incredibly large.
Perfect. With that, we are out of time. Thank you so much for joining us, everyone.