Shares of 10x Genomics, Inc. (NASDAQ: TXG) are soaring 13.56% in pre-market trading on Friday, following the company's impressive first-quarter earnings report and CEO Serge Saxonov's frank discussion about the impact of U.S. government budget cuts on academic research funding.

The genomics technology company reported better-than-expected Q1 results, with an adjusted loss of $0.36 per share, significantly outperforming analyst estimates of a $0.47 loss. Revenue for the quarter increased by 9.8% year-over-year to $154.88 million, surpassing Wall Street expectations of $132.45 million. This strong performance comes despite recent challenges in the research funding landscape.

During the earnings call, CEO Saxonov highlighted the company's significant 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 In response to recent policy changes and increased uncertainty in customer purchasing behavior, the company has withdrawn its full-year guidance and will instead provide quarterly forecasts.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'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. Interestingly, the positive market reaction comes despite several analysts lowering their target prices for TXG stock, underscoring the impact of the company's strong quarterly performance and the CEO's transparency.