Shares of 10x Genomics, Inc. (NASDAQ: TXG) surged 5.10% in pre-market trading on Friday, following the company's better-than-expected first-quarter earnings report and significant comments from CEO Serge Saxonov regarding the impact of U.S. government budget cuts on academic research funding.

The genomics technology company reported a quarterly adjusted loss of $0.36 per share, significantly better than the analyst consensus estimate of a $0.47 loss. Revenue for the quarter rose 9.8% year-over-year to $154.88 million, surpassing Wall Street expectations of $132.45 million. This earnings beat comes despite recent challenges in the research funding landscape.

During the earnings call, CEO Serge Saxonov highlighted the company's exposure to U.S. academic and government research funding, which accounts for approximately 40% to 50% of 10x Genomics' revenue. In response to recent policy changes and increased uncertainty in customer purchasing behavior, the company has withdrawn its full-year guidance and will instead provide quarterly forecasts. Saxonov expressed concern about the potential impact of funding cuts on America's leadership in biomedical research, describing the National Institutes of Health as "the foundational jewel of biomedical progress." The CEO's candid remarks about the challenges facing the research community and their potential impact on 10x Genomics' business appear to have resonated with investors, contributing to the stock's pre-market rally.