Twist Bioscience (TWST) 10-Q 7 Feb 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Dec. 31, 2022	Feb. 02, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2022
Document Transition Report	false
Entity File Number	001-38720
Entity Registrant Name	Twist Bioscience Corporation
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-2058888
Entity Address, Address Line One	681 Gateway Blvd
Entity Address, City or Town	South San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94080
City Area Code	800
Local Phone Number	719-0671
Title of 12(b) Security	Common Stock
Trading Symbol	TWST
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
Entity Common Stock, Shares Outstanding		56,858,200
Amendment Flag	false
Entity Central Index Key	0001581280
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022
Current assets:
Cash and cash equivalents	$ 316,681	$ 378,687
Short-term investments	122,029	126,281
Accounts receivable, net	44,437	40,294
Inventories	44,597	39,307
Prepaid expenses and other current assets	14,115	11,914
Total current assets	541,859	596,483
Property and equipment, net	144,850	139,441
Operating lease right-of-use assets	73,757	74,948
Goodwill	85,811	85,811
Intangible assets, net	58,361	59,738
Restricted cash, non-current	2,410	1,572
Other non-current assets	2,922	3,385
Total assets	909,970	961,378
Current liabilities:
Accounts payable	20,113	20,092
Accrued expenses	10,398	10,169
Accrued compensation	23,277	27,023
Current portion of operating lease liability	14,227	13,642
Other current liabilities	15,822	19,737
Total current liabilities	83,837	90,663
Operating lease liability, net of current portion	79,748	81,270
Other non-current liabilities	60	60
Total liabilities	163,645	171,993
Commitments and contingencies (Note 6)
Stockholders’ equity
Common stock, $0.00001 par value —100,000 and 100,000 shares authorized at December 31, 2022 and September 30, 2022, respectively; 56,645 and 56,523 shares issued and outstanding at December 31, 2022 and September 30, 2022, respectively	0	0
Additional paid-in capital	1,617,174	1,619,644
Accumulated other comprehensive income	(609)	(1,843)
Accumulated deficit	(870,240)	(828,416)
Total stockholders’ equity	746,325	789,385
Total liabilities and stockholders’ equity	$ 909,970	$ 961,378

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2022	Sep. 30, 2022
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 0.00001	$ 0.00001
Common stock, authorized (in shares)	100,000	100,000
Common stock, issued (in shares)	56,645	56,523
Common stock, outstanding (in shares)	56,645	56,523

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Revenues	$ 54,243	$ 42,018
Operating expenses:
Cost of revenues	29,442	27,056
Research and development	31,242	22,630
Selling, general and administrative	42,324	51,098
Change in fair value of contingent considerations and holdbacks	(4,135)	(2,826)
Total operating expenses	98,873	97,958
Loss from operations	(44,630)	(55,940)
Interest income	3,040	154
Interest expense	(1)	(26)
Other income (expense), net	(157)	(156)
Loss before income taxes	(41,748)	(55,968)
Income tax (provision) / benefit	(76)	10,405
Net loss attributable to common stockholders	(41,824)	(45,563)
Other comprehensive loss:
Change in unrealized loss on investments	(868)	277
Foreign currency translation adjustment	(366)	(94)
Comprehensive loss	$ (43,058)	$ (45,380)
Net loss per share attributable to common stockholders—basic (in usd per share)	$ (0.74)	$ (0.91)
Net loss per share attributable to common stockholders—diluted (in usd per share)	$ (0.74)	$ (0.91)
Weighted average shares used in computing net loss per share attributable to common stockholders—basic (in shares)	56,444	49,912
Weighted average shares used in computing net loss per share attributable to common stockholders—diluted (in shares)	56,444	49,912

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders’ Equity (unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common stock	Additional paid-in capital	Accumulated Other comprehensive loss	Accumulated deficit
Beginning balance (in shares) at Sep. 30, 2021		49,499
Beginning balance at Sep. 30, 2021	$ 580,821	$ 0	$ 1,190,828	$ 546	$ (610,553)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Vesting of restricted stock units (in shares)		62
Exercise of stock options (in shares)		270
Exercise of stock options	3,039		3,039
Issuance of shares associated with a business acquisition (in shares)		928
Issuance of shares associated with a business acquisition	72,514		72,514
Repurchases of common stock for income tax withholding (in shares)		(24)
Repurchases of common stock for income tax withholding	(2,558)		(2,558)
Stock-based compensation	18,108		18,108
Other comprehensive income (loss)	(183)			(183)
Net loss	(45,563)				(45,563)
Ending balance (in shares) at Dec. 31, 2021		50,735
Ending balance at Dec. 31, 2021	$ 626,178	$ 0	1,281,931	363	(656,116)
Beginning balance (in shares) at Sep. 30, 2022	56,523	56,523
Beginning balance at Sep. 30, 2022	$ 789,385	$ 0	1,619,644	(1,843)	(828,416)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Vesting of restricted stock units (in shares)		124
Exercise of stock options (in shares)	35	35
Exercise of stock options	$ 603		603
Issuance of shares associated with a business acquisition (in shares)		1
Issuance of shares associated with a business acquisition	0		0
Repurchases of common stock for income tax withholding (in shares)		(38)
Repurchases of common stock for income tax withholding	(999)		(999)
Stock-based compensation	(2,074)		(2,074)
Other comprehensive income (loss)	1,234			1,234
Net loss	$ (41,824)				(41,824)
Ending balance (in shares) at Dec. 31, 2022	56,645	56,645
Ending balance at Dec. 31, 2022	$ 746,325	$ 0	$ 1,617,174	$ (609)	$ (870,240)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities
Net loss	$ (41,824)	$ (45,563)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	5,292	3,150
Deferred tax liability	0	(10,545)
Non-cash lease expense	254	1,174
Stock-based compensation	(2,325)	18,108
Change in fair value of acquisition consideration	(4,135)	(2,826)
Other non cash adjustments	287	395
Changes in assets and liabilities:
Accounts receivable, net	(4,098)	(2,032)
Inventories	(5,281)	(8,436)
Prepaid expenses and other current assets	(1,177)	(91)
Other non-current assets	499	3,231
Accounts payable	3,282	(5)
Accrued expenses	(1,254)	445
Accrued compensation	(3,716)	(3,624)
Other liabilities	126	(34)
Net cash used in operating activities	(54,070)	(46,653)
Cash flows from investing activities
Purchases of property and equipment	(11,824)	(12,783)
Business acquisition, net of cash acquired	0	(8,160)
Purchases of investments	(22,647)	(217,639)
Proceeds from maturity of investments	27,500	12,000
Net cash used in investing activities	(6,971)	(226,582)
Cash flows from financing activities
Proceeds from exercise of stock options	604	3,105
Proceeds from (repayments of) long-term debt	0	(1,558)
Repurchases of common stock for income tax withholding	(999)	(2,558)
Net cash used in financing activities	(395)	(1,011)
Effect of exchange rates on cash, cash equivalents and restricted cash	268	83
Net decrease in cash, cash equivalents, and restricted cash	(61,168)	(274,163)
Cash, cash equivalents, and restricted cash at beginning of period	380,259	467,359
Cash, cash equivalents, and restricted cash at end of period	319,091	193,196
Supplemental disclosure of cash flow information
Interest paid	0	9
Income taxes paid, net of refunds	52	91
Non-cash investing and financing activities
Property and equipment additions included in accounts payable and accrued expenses	4,520	11,479
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	0	10,423
Issuance of common stock in connection with the business acquisition	$ 0	$ 72,514

The Company

The Company	3 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company	The Company Twist Bioscience Corporation (the Company) was incorporated in the state of Delaware on February 4, 2013. The Company is a synthetic biology company that has developed a disruptive DNA synthesis platform. DNA is used in many applications across different industries: industrial chemicals/materials, academic, healthcare and food/agriculture. The Company’s fiscal year ends on September 30. The Company has generated net losses in all periods since its inception. As of December 31, 2022, the Company had an accumulated deficit of $870.2 million and has not generated positive cash flows from operations since inception. Losses are expected to continue as the Company continues to invest in product development, manufacturing, and sales and marketing. Since its inception, the Company has received an aggregate of $1,333.7 million in net proceeds from the issuance of equity securities and an aggregate of $13.8 million from debt. Management believes that these proceeds combined with existing cash balances on hand will be sufficient to fund operations for at least one year from the issuance of these consolidated financial statements. However, if the Company needs to obtain additional financing to fund operations beyond this period, there can be no assurance that it will be successful in raising additional financing on terms which are acceptable to the Company. If the Company requires but is unable to obtain additional funding, the Company could be forced to delay, reduce or eliminate some or all of its research and development programs, product portfolio expansion or commercialization efforts, which could adversely affect its business prospects, or the Company may be unable to continue operations. During the three months ended December 31, 2022, overall financial results of the Company were not significantly affected by the COVID-19 pandemic, which continues to have global impact. The Company has considered all information available as of the date of issuance of these financial statements and the Company is not aware of any specific events or circumstances that would require an update to its estimates or judgments, or a revision to the carrying value of its assets or liabilities. These estimates may change as new events occur and additional information becomes available. The extent to which the COVID-19 outbreak affects the Company’s future financial results and operations will depend on future developments which continue to evolve and are difficult to predict, including mutations in the SARS-CoV-2 virus, which have resulted and may in the future result in strains that are more contagious and less responsive to current treatment methods, and current or future domestic and international actions to contain it and treat it.

Summary of significant accounti

Summary of significant accounting policies	3 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Summary of significant accounting policies	Summary of significant accounting policies Basis of presentation and use of estimates The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes included in the Annual Report on Form 10-K for the fiscal year ended September 30, 2022 (the Annual Report on Form 10-K) filed with the Securities and Exchange Commission on November 28, 2022. The condensed consolidated financial statements are unaudited and have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of the condensed consolidated financial statements. The condensed consolidated balance sheet at September 30, 2022 is derived from audited consolidated financial statements but does not include all disclosures required by GAAP. The operating results for the three months ended December 31, 2022 are not necessarily indicative of the results expected for the full year ending September 30, 2023 or any interim period. The presentation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain prior year amounts have been reclassified to conform to the current year presentation. The Company’s unaudited condensed consolidated financial statements include its wholly owned subsidiaries. All intercompany balances and accounts are eliminated in consolidation. The following table provides a reconciliation of the Company’s cash and cash equivalents and non-current portion of restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash shown in the Company’s condensed consolidated statements of cash flows: (in thousands) December 31, September 30, Cash and cash equivalents $ 316,681 $ 378,687 Restricted cash, non-current 2,410 1,572 Total cash, cash equivalents and restricted cash $ 319,091 $ 380,259 Restricted cash represents cash held at financial institutions that are pledged as collateral for stand-by letters of credit for lease commitments. Significant accounting policies There have been no material changes in the accounting policies from those disclosed in the audited consolidated financial statements and the related notes included in the Annual Report on Form 10-K. Recent accounting pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considered the applicability and impact of all recent ASUs. ASUs not listed below were assessed and determined to be not applicable to the Company’s consolidated financial position and results of operations. Recent accounting pronouncements adopted In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The amendments in this update require the annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model. The Company adopted this standard effective October 1, 2022. The adoption of ASU-2021-10 did not have an impact on the Company’s condensed consolidated financial statements as of and for the period ended December 31, 2022. Recently issued accounting pronouncement not yet adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard requires entities to use the new “expected credit loss” impairment model for most financial assets measured at amortized cost, including trade and other receivables and held-to-maturity debt securities, and modifies the impairment model for available-for-sale debt securities. The standard is effective for the Company for the fiscal year ending September 30, 2024, including interim periods within that fiscal year. Early application is permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its condensed consolidated financial statements.

Fair value measurement

Fair value measurement	3 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair value measurement	Fair value measurement The Company assesses the fair value of financial instruments based on the provisions of ASC 820, Fair Value Measurements . ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company's short-term investments primarily utilize broker quotes in a non-active market for valuation of its investments. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. The following table sets forth the cash and cash equivalents, and short-term investments as of December 31, 2022: (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 316,681 $ — $ — $ 316,681 Short-term investments: Corporate bonds 22,647 — — 22,647 U.S. government treasury bills 100,108 — (726) 99,382 Total $ 439,436 $ — $ (726) $ 438,710 The following table sets forth the cash and cash equivalents, and short-term investments as of September 30, 2022: (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 378,687 $ — $ — $ 378,687 Short-term investments: Commercial paper 14,997 — — 14,997 U.S. government treasury bills 112,878 — (1,594) 111,284 Total $ 506,562 $ — $ (1,594) $ 504,968 As of December 31, 2022, financial assets and liabilities measured and recognized at fair value are as follows: (in thousands) Level 1 Level 2 Level 3 Fair value Assets Money market funds $ 254,196 $ — $ — $ 254,196 Corporate bonds — 22,647 — 22,647 U.S. government treasury bills 99,382 — — 99,382 Total financial assets $ 353,578 $ 22,647 $ — $ 376,225 Liabilities Holdback $ — $ 7,557 $ — $ 7,557 Total financial liabilities $ — $ 7,557 $ — $ 7,557 As of September 30, 2022, financial assets and liabilities measured and recognized at fair value are as follows: (in thousands) Level 1 Level 2 Level 3 Fair value Assets Money market funds $ 316,805 $ — $ — $ 316,805 Commercial paper — 14,997 — 14,997 U.S. government treasury bills 111,284 — — 111,284 Total financial assets $ 428,089 $ 14,997 $ — $ 443,086 Liabilities Contingent consideration and indemnity holdback $ — $ 9,592 $ 2,100 $ 11,692 Total financial liabilities $ — $ 9,592 $ 2,100 $ 11,692 Contractual maturities of all the investments, as of December 31, 2022, were less than 12 months. The Company does not intend to sell the money market funds and short term investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis. The unrealized loss on short-term investments have been in a continuous unrealized loss position for less than 12 months. As of December 31, 2022, there were no financial assets or financial liabilities categorized as level 3 within the fair value hierarchy. As of September 30, 2022, the Company’s contingent consideration related to its Abveris acquisition was categorized as Level 3 within the fair value hierarchy. Contingent consideration was classified as a liability and remeasured to an estimated fair value at each reporting date until the contingency was resolved. Contingent consideration was recorded at its fair values using unobservable inputs and have included using the Monte Carlo simulation option pricing framework, incorporating contractual terms and assumptions regarding financial forecasts, discount rates, and volatility of forecasted revenue. The key assumptions were forecasted calendar year 2022 revenue and the Company's share price. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management with the assistance of a third-party valuation specialist. At September 30, 2022, management determined that the revenue target for the calendar year 2022 was probable of being achieved and a contingent consideration liability of $2.1 million was recognized. At December 31, 2022, management determined that the revenue target for the calendar year 2022 was not achieved, and therefore a change in fair value of contingent consideration of $2.1 million was recognized, resulting in the extinguishment of the contingent consideration liability of $2.1 million. The key inputs into the Monte Carlo simulation as of September 30, 2022 were as follows: Contingent consideration September 30, 2022 Stock Price $ 35.42 Equity volatility 93.7 % Risk-free interest rate 3.9 % Revenue volatility 30.2 % The following table provides a reconciliation of beginning and ending balances of the Level 3 financial liabilities during the three months ended December 31, 2022: (in thousands) Total Balance as of September 30, 2022 $ 2,100 Change in fair value (2,100) Balance as of December 31, 2022 $ —

Balance sheet components

Balance sheet components	3 Months Ended
	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Balance sheet components	Balance sheet components The Company’s accounts receivable, net balance consists of the following: (in thousands) December 31, September 30, Trade receivables $ 39,405 $ 35,706 Other receivables 5,254 4,822 Allowance for doubtful accounts (222) (234) Accounts receivable, net $ 44,437 $ 40,294 Inventories consist of the following: (in thousands) December 31, September 30, Raw materials $ 33,558 $ 28,787 Work-in-process 3,610 2,866 Finished goods 7,429 7,654 $ 44,597 $ 39,307 The work-in-process inventory included gross consigned inventory of $0 and $0.1 million as of December 31, 2022 and September 30, 2022, respectively. Property and Equipment, net consists of the following: December 31, September 30, (in thousands) 2022 2022 Laboratory equipment $ 65,393 $ 62,285 Furniture, fixtures and other equipment 2,487 2,332 Computer equipment 2,867 2,814 Computer software 1,693 1,693 Leasehold improvements 58,876 14,371 Construction in progress 49,223 87,723 $ 180,539 $ 171,218 Less: Accumulated depreciation and amortization (35,689) (31,777) $ 144,850 $ 139,441 Construction in progress mainly represents equipment costs relating to the Wilsonville facility. Other current liabilities The other current liabilities consist of the following: (in thousands) December 31, September 30, Indemnity holdbacks $ 7,557 $ 9,592 Income and sales taxes payable 3,761 3,661 Deferred revenue 3,683 3,476 Contingent consideration — 2,100 Other current liabilities 821 908 $ 15,822 $ 19,737

Goodwill and intangible assets

Goodwill and intangible assets	3 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and intangible assets	Goodwill and intangible assets There were no changes to the carrying value of goodwill during the three months ended December 31, 2022. Total amortization expense related to finite-lived intangible assets was $1.4 million for the three months ended December 31, 2022 and $0.8 million for the three months ended December 31, 2021. The goodwill balance is presented below: (in thousands) December 31, 2022 September 30, 2022 Balance at beginning of period/year $ 85,811 $ 22,434 Business acquisition – additions — 61,768 Remeasurement adjustments to the deferred tax assets — 1,609 Balance at end of period/year $ 85,811 $ 85,811 The intangible assets balances are presented below: December 31, 2022 (in thousands, except for years) Weighted average Gross Accumulated Net book Developed Technology 15 $ 50,020 $ (5,190) $ 44,830 Customer Relationships 11 15,210 (2,254) 12,956 Tradenames & Trademarks 3 900 (325) 575 Total finite-lived intangible assets $ 66,130 $ (7,769) $ 58,361 September 30, 2022 (in thousands, except for years) Weighted average Gross Accumulated Net book Developed Technology 15 $ 50,020 $ (4,375) $ 45,645 Customer Relationships 11 15,210 (1,767) 13,443 Tradenames & Trademarks 3 $ 900 $ (250) $ 650 Total finite-lived intangible assets $ 66,130 $ (6,392) $ 59,738

Commitments and contingencies

Commitments and contingencies	3 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingenciesLegal proceedings The Company may be subject to litigation, claims and disputes in the ordinary course of business. There is an inherent risk in any litigation or dispute and no assurance can be given as to the outcome of any claims. Securities Class Action On December 12, 2022, a putative securities class action lawsuit captioned Peters v. Twist Bioscience Corporation, et al., Case No. 22-cv-08168 (N.D. Cal.) (“Securities Class Action”) was filed in federal court in the Northern District of California (“Court”). The Securities Class Action names the Company and certain of its officers as defendants and asserts claims under sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The Securities Class Action’s claims are based in large part on allegations made in a report issued on November 15, 2022 by Scorpion Capital (“Scorpion Report”) concerning, among things, the Company’s DNA chip technology and accounting practices. The initial complaint filed in the Securities Class Action alleges that various statements that the defendants made between December 13, 2019 and November 14, 2022 were materially false and misleading in light of the allegations in the Scorpion Report, and seeks unspecified damages on behalf of all persons and entities who purchased or acquired Twist securities during an alleged class period that begins on December 13, 2019 and ends on November 14, 2022 (“class period”), as well as certain other costs. • This case remains in the preliminary stage. Given the inherent uncertainty of litigation and the legal standards that must be met, including class certification and success on the merits, the Company cannot express an opinion on the likelihood of an unfavorable outcome or on the amount or range of any potential loss. Twist and the other defendants intend to vigorously defend themselves against the claims asserted against them. Indemnifications In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend the indemnified parties for losses suffered or incurred by the indemnified party. Some of the provisions will limit losses to those arising from third-party actions. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. To date, the Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company has also entered into indemnification agreements with its directors and officers that may require it to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers to the fullest extent permitted by corporate law. The Company also has directors’ and officers’ insurance. Leases The Company leases certain of its facilities under non-cancellable operating leases expiring at various dates through 2044. The Company is also responsible for utilities, maintenance, insurance, and property taxes under these leases. The Company's lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms, as well as payments for common-area-maintenance and administrative services. The Company often receives customary incentives from its landlords, such as reimbursements for tenant improvements and rent abatement periods, which effectively reduce the total lease payments owed for these leases. Leases are classified as operating or financing at commencement. The Company does not have any material financing leases. Certain leases include options to renew or terminate at the Company’s discretion. The lease terms include periods covered by these options if it is reasonably certain the Company will renew or not terminate. The Company’s lease agreements do not contain any material residual value guarantees or restrictive covenants. Supplemental balance sheet information related to the Company’s operating leases as of December 31, 2022 is as follows: (in thousands) December 31, Assets: Operating lease right-of-use asset $ 73,757 Current liabilities: Current portion of operating lease liabilities $ 14,227 Noncurrent liabilities: Operating lease liabilities, net of current portion $ 79,748 Future minimum lease payments under all non-cancelable operating leases that have commenced as of December 31, 2022 are as follows: (in thousands) Operating Years ending September 30: Remainder of 2023 $ 11,981 2024 14,214 2025 14,066 2026 12,609 2027 7,265 Thereafter 90,968 Total minimum lease payments $ 151,103 Less: imputed interest (57,128) Total operating lease liabilities $ 93,975 Less: current portion (14,227) Operating lease liabilities, net of current portion $ 79,748 The statement of cash flows for the three months ended December 31, 2022, include changes in right-of-use assets and operating lease liabilities of $1.2 million and $0.9 million, respectively. For the three months ended December 31, 2021, changes in right-of-use assets and operating lease liabilities were $10.4 million and $11.6 million, respectively. Operating lease expense was $4.1 million and $3.5 million for the three months ended December 31, 2022 and 2021, respectively. Cash payments for amounts included in the measurement of operating lease liabilities were $3.6 million and $2.9 million for the three months ended December 31, 2022 and 2021, respectively. As of December 31, 2022, the weighted-average remaining lease term was 15.9 years and the weighted-average discount rate was 6.4%.

Related party transactions

Related party transactions	3 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Related party transactions	Related party transactionsDuring the three months ended December 31, 2022 and 2021, the Company purchased raw materials from a related party in the amount of $2.1 million and $1.7 million, respectively. During the three months ended December 31, 2022, the Company had revenues from related party in the amount of $0.2 million. The revenues from related party were immaterial for the three months ended December 31, 2021. As of December 31, 2022, payable balances and receivable balances with the related party were $0.7 million and $0.2 million, respectively. Payable balances and receivable balances with the related party were immaterial as of September 30, 2022. During the year ended September 30, 2022, the Company entered into a service agreement with a related party for the total consideration of $0.1 million.

Income taxes

Income taxes	3 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income taxes	Income taxesIn determining quarterly provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date profit or loss, adjusted for discrete items arising in that quarter. The Company’s annual estimated effective tax rate differs from the U.S. federal statutory rate primarily as a result of state taxes, foreign taxes, and changes in the Company’s valuation allowance against its deferred tax assets. For the three months ended December 31, 2022, the Company recorded an immaterial provision for income taxes. For the three months ended December 31, 2021, the Company recorded $10.5 million income tax benefit, mainly due to the deferred tax liability assumed as part of the acquisition of AbX Biologics, Inc.

Common stock

Common stock	3 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Common stock	Common stockAs of December 31, 2022, the Company had reserved sufficient shares of common stock, with a par value of $0.00001 per share, for issuance upon exercise of outstanding stock options. Each share of common stock is entitled to one vote. The holders of shares of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the board of directors.In February 2022, the Company completed an underwritten public offering of 5,227,272 shares of its common stock at a price to the public of $55.00 per share, including the full exercise of underwriters’ option to purchase an additional 681,818 shares of common stock. The Company received total net proceeds from the offering of $269.8 million, net of underwriting discounts and commissions and offering expenses.

Stock-based compensation

Stock-based compensation	3 Months Ended
	Dec. 31, 2022
Share-based Payment Arrangement [Abstract]
Stock-based compensation	Stock-based compensation The Company granted stock-based awards, consisting of stock options and restricted stock, to its employees, certain non-employee consultants and certain members of its board of directors. The Company measures stock-based compensation expense for restricted stock and stock options granted to its employees and directors on the date of grant and recognize the corresponding compensation expense of those awards over the requisite service period, which is generally the vesting period of the respective award. The Company measures stock-based compensation expense for restricted stock and stock options granted to non-employee consultants on the date of grant and recognize the corresponding compensation expense of those awards over the period in which the related services are received. The Company adjusts for actual forfeitures as they occur. 2018 Equity Incentive Plan On September 26, 2018, the board of directors adopted the 2018 Equity Incentive Plan (the 2018 Plan) as a successor to the 2013 Stock Plan (the 2013 Plan). Any shares subject to outstanding awards under the 2013 Plan that are canceled or repurchased subsequent to the 2018 Plan’s effective date are returned to the pool of shares reserved for issuance under the 2018 Plan. Awards granted under the 2018 Plan may be non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, and performance units. Restricted Stock Units Restricted stock consists of restricted stock unit awards (RSUs) which have been granted to employees and non-employee directors. The value of an RSU award is based on the Company’s stock price on the date of grant. Employee grants generally vest over four years and non-employee director grants generally vest over one year. Forfeitures of RSUs are recognized as they occur. The shares underlying the RSU awards are not issued until the RSUs vest. Upon vesting, each RSU converts into one share of the Company’s common stock. Activity with respect to the Company’s restricted stock units during the three months ended December 31, 2022 was as follows: (in thousands, except per share data) Shares Weighted average grant date fair value per share Nonvested shares at September 30, 2022 1,566 $ 67.66 Granted 589 26.28 Vested/Issued (102) 66.98 Forfeited (235) 81.89 Nonvested shares at December 31, 2022 1,818 $ 52.41 As of December 31, 2022, there was $86.3 million of total unrecognized compensation cost related to these awards that is expected to be recognized over a weighted average period of 3.0 years. The total grant date fair value of RSUs awarded during the three months ended December 31, 2022 was $15.5 million. Performance Stock Units Performance stock unit awards (“PSUs”) granted to certain employees will vest upon achievement of operational milestones related to the Wilsonville facility, and to Company executives will vest upon achievement of revenue and gross profit metrics as determined by the board, and to certain non-employee consultants will vest upon achievement of operational milestones. Stock compensation expense for PSUs is recorded over the vesting period based on the grant date fair value of the awards and probability of the achievement of specified performance targets. The grant date fair value is equal to the closing share price of the Company’s common stock on the date of grant. For employees, PSUs generally vest over a one one Activity under the PSUs during the three months ended December 31, 2022 is summarized below: (in thousands, except per share data) Shares Weighted average grant date fair value per share Nonvested shares at September 30, 2022 529 $ 79.60 Granted 423 26.50 Vested/Issued (6) 90.44 Forfeited (187) 86.38 Nonvested at December 31, 2022 759 $ 48.28 As of December 31, 2022, the unrecognized compensation costs related to these awards was $24.3 million. The Company expects to recognize those costs over a weighted average period of 1.6 years. The total grant date fair value of PSUs awarded during the three months ended December 31, 2022 was $10.1 million. Options Options are generally granted to employees and were granted to non-employee directors until FY 2020. Stock options entitle the holder to purchase, at the end of the vesting term, a specified number of shares of Company common stock at an exercise price per share equal to the closing market price of the common stock on the date of grant. Stock options have a contractual life from the date of the grant and a vesting schedule as established by the board of directors. The maximum term of stock options granted under the 2018 Plan is 10 years and the awards generally vest over a four-year period. Forfeitures of options are recognized as they occur. The fair value of each service based stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The Company historically had been a private company and lacked company-specific historical and implied volatility information for its stock. Therefore, it estimated its expected stock price volatility based on the historical volatility of publicly traded peer companies through the period ended December 31, 2022 and utilized the “simplified” method for awards that qualify as “plain-vanilla” options. As determined under the simplified method, the expected term of stock options granted is calculated based on contractual and vesting terms of the option award, the risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award, the expected dividend yield is zero based on the fact that the Company has never paid cash dividends on common stock and does not expect to pay any cash dividends in the foreseeable future. Options activity during the three months ended December 31, 2022 is summarized below: (in thousands, except per share data) Shares Weighted average exercise price per share Weighted average remaining contractual term (years) Aggregate intrinsic value Outstanding at September 30, 2022 2,453 $ 24.67 6.33 $ 33,447 Granted — — — — Forfeited (37) 42.87 — — Exercised (35) 17.17 — 312 Outstanding at December 31, 2022 2,381 $ 24.49 6.06 $ 10,715 Nonvested at December 31, 2022 427 33.87 6.92 423 Exercisable 1,954 $ 22.44 5.87 $ 10,292 As of December 31, 2022, the unrecognized compensation costs related to these awards was $9.4 million. The Company expects to recognize those costs over a weighted average period of 0.9 year. Performance Stock Options On September 1, 2020, the board of directors approved the implementation of a revised annual equity award program for executive officers, senior level employees and consultants to be granted as performance-based stock options ("PSOs") under the 2018 Plan. The number of PSOs ultimately earned under the awards to executive officers and senior level employees is calculated based on the achievement of a certain total revenue threshold during the fiscal year ending September 30, 2023. The percentage of performance stock options that vest will depend on the board of directors’ determination of total revenue at the end of the performance period and can range from 0% to 150% of the number of options granted. The number of PSOs ultimately earned under the awards to a consultant is calculated based on the achievement of certain operational milestones. The maximum term of performance stock options granted under the 2018 Plan is 10 years for both employees and non-employees. The awards generally vest over a two-year period for executive officers and senior level employees. Awards to non-employees generally vest over a five-year period. The provisions of the PSO are considered a performance condition, and the effects of that performance condition are not reflected in the grant date fair value of the awards. The Company used the Black-Scholes method to calculate the fair value at the grant date without regard to the vesting condition and will recognize compensation cost for the options that are expected to vest. Forfeitures of PSOs are recognized as they occur. The Company reassesses the probability of the performance condition at each reporting period and adjusts the compensation cost based on the probability assessment. As of December 31, 2022, the Company determined that 56,250 shares are expected to vest based on the probability of the performance condition that will be achieved under this equity award program. Activity under the PSOs during the three months ended December 31, 2022 is summarized below: (in thousands, except per share data) Shares Weighted average exercise price per share Weighted average remaining contractual term (years) Aggregate intrinsic value Outstanding at September 30, 2022 312 $ 61.35 8.33 $ 296 Exercisable at September 30, 2022 19 $ 31.29 9.57 $ 74 Nonvested at September 30, 2022 293 63.27 8.25 222 Vested (237) $ 70.84 — $ — Nonvested at December 31, 2022 56 $ 31.29 9.32 $ — Exercisable at December 31, 2022 256 67.95 7.81 — Outstanding at December 31, 2022 312 $ 61.35 8.08 $ — As of December 31, 2022, the unrecognized compensation costs related to these awards was $0.8 million. The Company expects to recognize those costs over a weighted average period of 1.6 years. Total stock-based compensation (credit)/expense recognized was as follows: Three months ended (in thousands) 2022 2021 Cost of revenues $ 1,142 $ 878 Research and development 4,418 4,027 Selling, general and administrative (7,885) 13,163 Total stock-based compensation $ (2,325) $ 18,068 During the three months ended December 31, 2022, stock-based compensation was a credit of $2.3 million primarily as a result of departing employee share forfeitures, and a stock-based credit related to a business combination as a performance condition was not achieved. An immaterial amount of stock-based compensation was capitalized to inventories attributable to employees who support the manufacturing of the Company's products for the three months ended December 31, 2022. The balance sheet as of December 31, 2022 includes $0.9 million of stock-based compensation primarily related to the implementation of the Company’s lab production software system and order management system, which was capitalized in property and equipment. 2018 Employee Stock Purchase Plan On September 26, 2018, the board of directors adopted the 2018 Employee Stock Purchase Plan (the "2018 ESPP"). The number of shares reserved for issuance under the 2018 ESPP upon approval was 275,225 shares of the Company’s common stock, and it increases automatically on the first day of each fiscal year, following the fiscal year in which the 2018 ESPP becomes effective, by a number equal to the least of 249,470 shares, 1% of the shares of common stock outstanding at that time, or such number of shares determined by the Company’s board of directors. The number of shares reserved for issuance at December 31, 2022 was as follows: (In thousands) Shares Outstanding at September 30, 2022 507 Additional shares authorized 250 Shares issued during the period — Outstanding at December 31, 2022 757 Subject to any plan limitations, the 2018 ESPP allows eligible service providers (through qualified and non-qualified offerings) to contribute, normally through payroll deductions, up to 15% of their earnings for the purchase of the Company’s common stock at a discounted price per share. The offering periods begin in February and August of each year, except the initial offering period which commenced with the initial public offering in October 2018 and ended on August 20, 2019. Unless otherwise determined by the board of directors, the Company’s common stock will be purchased for the accounts of employees participating in the 2018 ESPP at a price per share that is the lesser of 85% of the fair market value of the Company’s common stock on the first trading day of the offering period or 85% of the fair market value of the Company’s common stock on the last trading day of the offering period. During the three months ended December 31, 2022 and 2021, activity under the 2018 ESPP was immaterial. 401(k) Savings Plan During 2018, the Company adopted a 401(k) savings plan for the benefit of its employees. In January 2022, the Company modified its plan to include an employer matching contribution. The Company is required to make matching contributions to the 401(k) plan equal to 50% of the first 6% of wages deferred by each participating employee. The Company incurred expenses for employer matching contributions of $0.7 million for the three months ended December 31, 2022. Abveris Acquisition On December 1, 2021, the Company completed the acquisition of AbX Biologics, Inc. ("Abveris") and granted certain equity awards to new employees. These equity awards included up to 231,876 restricted shares of the Company’s common stock which were issuable based on achievement of the 2022 calendar revenue target, which had an aggregate grant date fair value of $20.1 million. In addition, all employees must remain employed through the payout date, and certain employees have an additional vesting period of up to two years from the acquisition date. The vesting upon achievement of the 2022 calendar revenue target is considered a performance condition, and the effects of that performance condition are not reflected in the grant date fair value of the awards. The Company used the stock price as of December 1, 2021 for the fair value of restricted shares.

Net loss per share attributable

Net loss per share attributable to common stockholders	3 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Net loss per share attributable to common stockholders	Net loss per share attributable to common stockholders The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders: Three months ended (in thousands, except per share data) 2022 2021 Numerator: Net loss attributable to common stockholders $ (41,824) $ (45,563) Denominator: Weighted average shares used in computing net loss per share, basic and diluted 56,444 49,912 Net loss per share attributable to common stockholders, basic and diluted $ (0.74) $ (0.91) The potentially dilutive common shares that were excluded from the calculation of diluted net loss per share because their effect would have been antidilutive for the periods presented are as follows: Three months ended December 31, (in thousands) 2022 2021 Shares subject to options to purchase common stock 2,693 2,939 Unvested restricted stock units and performance stock units 2,577 1,605 Unvested shares of common stock issued upon early exercise of stock options — 1 Shares subject to employee stock purchase plan 137 38 Total 5,407 4,583

Geographic, product and industr

Geographic, product and industry information	3 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Geographic, product and industry information	Geographic, product and industry information The table below sets forth revenues by geographic region, based on ship-to destinations. Americas consists of the United States of America, Canada, Mexico and South America; EMEA consists of Europe, the Middle East, and Africa; and APAC consists of Japan, China, South Korea, India, Singapore, Malaysia, and Australia. Three months ended (in thousands) 2022 2021 Americas $ 33,646 $ 22,611 EMEA 16,331 15,365 APAC 4,266 4,042 Total $ 54,243 $ 42,018 The table below sets forth revenues by products. Three months ended (in thousands) 2022 2021 Synthetic genes $ 16,175 $ 13,525 Oligo pools 3,699 3,188 DNA libraries 1,836 1,261 Antibody discovery 8,171 4,813 NGS tools 24,362 19,231 Total $ 54,243 $ 42,018 The table below sets forth revenues by industry. Three months ended (in thousands) 2022 2021 Industrial chemicals/materials $ 13,575 $ 12,526 Academic research 10,015 7,887 Healthcare 30,013 21,053 Food/agricultural 640 552 Total $ 54,243 $ 42,018

Business acquisition

Business acquisition	3 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Business acquisition	Business acquisitionOn December 1, 2021, the Company acquired all of the outstanding stock of AbX Biologics, Inc. (“Abveris”), a privately-held company providing in vivo antibody discovery services. The acquisition date fair value of the consideration transferred for Abveris was $102.6 million, consisting of cash totaling $9.5 million, 759,601 shares of the Company’s common stock valued at $66.1 million based on the Company’s closing stock price on December 1, 2021, employee stock awards issued to certain Abveris employees valued at $6.4 million, contingent consideration of $8.5 million, holdbacks of $12.8 million, and an estimated net working capital adjustment of $0.7 million. The contingent consideration was subject to the attainment of the calendar year 2022 revenue target. The contingent consideration was payable after December 31, 2022 in a combination of cash and up to 334,939 shares of the Company’s common stock. The acquisition date fair value of the contingent consideration was based on forecasted revenue of Abveris relative to the 2022 revenue target as well as the Company’s stock price as of December 1, 2021. The Company maintains an indemnity and adjustment holdback for the purposes of providing security against any adjustment to the amounts at closing. The indemnity holdback period extends for 18 months from the anniversary of the closing date. The indemnity holdback will be settled by transferring up to 128,351 shares of the Company’s stock, 15,304 options of the Company’s common stock and an immaterial amount of cash. The fair value of the indemnity holdback was $12.5 million as of the acquisition date. The adjustment holdback will be settled by transferring up to 3,416 shares of the Company’s stock, 408 options of the Company’s common stock and an immaterial amount of cash. The holdback adjustment liability was $0.3 million as of the acquisition date. During the three months ended December 31, 2022, the adjustment holdback liability was partially settled by transferring 166 shares. As of the acquisition date, post-combination compensation expense excluded from the purchase price included employee stock awards issued to certain Abveris employees valued at $41.0 million. This included awards valued at $17.7 million which vest over a two year service period following the acquisition date and awards valued at $3.2 million with no future vesting requirements, which were deemed accelerated by the Company at the acquisition date and expensed within the three months ended December 31, 2021. Finally, post-combination expense included awards initially valued at approximately $20.1 million which may have vest based on achievement of the calendar year 2022 revenue target and continuing employment through the payout date, and for certain employees, additional continuing employment through the two year anniversary of the acquisition date. In the quarter ended December 31, 2022, management determined that the revenue target associated with the performance based awards was not met, and therefore none of these awards vested. The following table summarizes the final fair value amounts of the assets acquired and liabilities assumed as of the acquisition date, as well as the purchase consideration: (in thousands) December 1, 2021 Assets acquired Cash and cash equivalents $ 1,306 Accounts receivable 2,309 Other current assets and prepaid expenses 1,654 Property, plant and equipment 1,078 Other non-current assets 2,970 Intangible assets 46,500 Liabilities assumed Current liabilities 3,549 Non-current liabilities 846 Deferred tax liability 10,545 Fair value of assets acquired and liabilities assumed $ 40,877 Goodwill 61,768 Total purchase price $ 102,645 Consideration transferred Cash $ 9,467 Company common stock 72,514 Contingent consideration 8,500 Holdback liabilities 12,838 Net working capital adjustment (674) Fair value of purchase consideration $ 102,645 The following table summarizes the preliminary estimate of the intangible assets as of the acquisition date: (in thousands except for years) Estimated Estimated Fair Developed technology 14 $ 30,900 Customer relationships 10 14,700 Trade name 3 900 Estimated fair value of acquired intangible assets $ 46,500 The following table provides a reconciliation of contingent consideration and holdbacks balances from acquisition date to December 31, 2022: (in thousands) Contingent Holdbacks Total Balance at December 1, 2021 – acquisition date $ 8,500 $ 12,164 $ 20,664 Change in fair value during the period (6,400) (7,071) (13,471) Balance at September 30, 2022 $ 2,100 $ 5,093 $ 7,193 Change in fair value during the period (2,100) (1,621) (3,721) Balance at December 31, 2022 $ — $ 3,472 $ 3,472 The estimated fair value of the contingent consideration liability decreased as the revenue target for calendar year 2022 was not achieved. The estimated fair value of the holdback liability decreased as a result of the change in the Company’s stock price as of December 31, 2022. For the three months ended December 31, 2022, the Company recognized a gain of $3.7 million relating to the change in fair value of acquisition consideration in its condensed consolidated statement of operations. Issuance of contingent consideration for iGenomX acquisition In December 2022, the Company determined that the transition milestones specified in the iGenomX acquisition agreement were completed, and the Company became obligated to issue 171,551 shares of its common stock to satisfy the indemnity holdback. The shares of common stock, valued at $4.1 million, were subsequently issued by the Company during January 2023 along with an immaterial cash payment for fractional shares. In December 2021, the Company determined that the transition milestones specified in the iGenomX acquisition agreement were completed, and the Company became obligated to issue 59,190 shares of its common stock to satisfy the contingent consideration. The shares of common stock, valued at $4.6 million, were subsequently issued by the Company during January 2022 along with an immaterial cash payment for fractional shares. * * * * *

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	3 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of presentation and use of estimates	Basis of presentation and use of estimates The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes included in the Annual Report on Form 10-K for the fiscal year ended September 30, 2022 (the Annual Report on Form 10-K) filed with the Securities and Exchange Commission on November 28, 2022. The condensed consolidated financial statements are unaudited and have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of the condensed consolidated financial statements. The condensed consolidated balance sheet at September 30, 2022 is derived from audited consolidated financial statements but does not include all disclosures required by GAAP. The operating results for the three months ended December 31, 2022 are not necessarily indicative of the results expected for the full year ending September 30, 2023 or any interim period. The presentation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain prior year amounts have been reclassified to conform to the current year presentation. The Company’s unaudited condensed consolidated financial statements include its wholly owned subsidiaries. All intercompany balances and accounts are eliminated in consolidation.
Recent accounting pronouncements	Recent accounting pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considered the applicability and impact of all recent ASUs. ASUs not listed below were assessed and determined to be not applicable to the Company’s consolidated financial position and results of operations. Recent accounting pronouncements adopted In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The amendments in this update require the annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model. The Company adopted this standard effective October 1, 2022. The adoption of ASU-2021-10 did not have an impact on the Company’s condensed consolidated financial statements as of and for the period ended December 31, 2022. Recently issued accounting pronouncement not yet adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard requires entities to use the new “expected credit loss” impairment model for most financial assets measured at amortized cost, including trade and other receivables and held-to-maturity debt securities, and modifies the impairment model for available-for-sale debt securities. The standard is effective for the Company for the fiscal year ending September 30, 2024, including interim periods within that fiscal year. Early application is permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its condensed consolidated financial statements.

Summary of significant accoun_3

Summary of significant accounting policies (Tables)	3 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Summary of Cash, Cash Equivalents and Restricted Cash	The following table provides a reconciliation of the Company’s cash and cash equivalents and non-current portion of restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash shown in the Company’s condensed consolidated statements of cash flows: (in thousands) December 31, September 30, Cash and cash equivalents $ 316,681 $ 378,687 Restricted cash, non-current 2,410 1,572 Total cash, cash equivalents and restricted cash $ 319,091 $ 380,259

Fair value measurement (Tables)

Fair value measurement (Tables)	3 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Summary of Cash and Cash Equivalents	The following table sets forth the cash and cash equivalents, and short-term investments as of December 31, 2022: (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 316,681 $ — $ — $ 316,681 Short-term investments: Corporate bonds 22,647 — — 22,647 U.S. government treasury bills 100,108 — (726) 99,382 Total $ 439,436 $ — $ (726) $ 438,710 The following table sets forth the cash and cash equivalents, and short-term investments as of September 30, 2022: (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 378,687 $ — $ — $ 378,687 Short-term investments: Commercial paper 14,997 — — 14,997 U.S. government treasury bills 112,878 — (1,594) 111,284 Total $ 506,562 $ — $ (1,594) $ 504,968
Summary of Debt Securities Available-for-Sale	The following table sets forth the cash and cash equivalents, and short-term investments as of December 31, 2022: (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 316,681 $ — $ — $ 316,681 Short-term investments: Corporate bonds 22,647 — — 22,647 U.S. government treasury bills 100,108 — (726) 99,382 Total $ 439,436 $ — $ (726) $ 438,710 The following table sets forth the cash and cash equivalents, and short-term investments as of September 30, 2022: (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 378,687 $ — $ — $ 378,687 Short-term investments: Commercial paper 14,997 — — 14,997 U.S. government treasury bills 112,878 — (1,594) 111,284 Total $ 506,562 $ — $ (1,594) $ 504,968
Summary of Company's Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis	As of December 31, 2022, financial assets and liabilities measured and recognized at fair value are as follows: (in thousands) Level 1 Level 2 Level 3 Fair value Assets Money market funds $ 254,196 $ — $ — $ 254,196 Corporate bonds — 22,647 — 22,647 U.S. government treasury bills 99,382 — — 99,382 Total financial assets $ 353,578 $ 22,647 $ — $ 376,225 Liabilities Holdback $ — $ 7,557 $ — $ 7,557 Total financial liabilities $ — $ 7,557 $ — $ 7,557 As of September 30, 2022, financial assets and liabilities measured and recognized at fair value are as follows: (in thousands) Level 1 Level 2 Level 3 Fair value Assets Money market funds $ 316,805 $ — $ — $ 316,805 Commercial paper — 14,997 — 14,997 U.S. government treasury bills 111,284 — — 111,284 Total financial assets $ 428,089 $ 14,997 $ — $ 443,086 Liabilities Contingent consideration and indemnity holdback $ — $ 9,592 $ 2,100 $ 11,692 Total financial liabilities $ — $ 9,592 $ 2,100 $ 11,692
Summary of Key Inputs Into Monte Carlo Simulation	The key inputs into the Monte Carlo simulation as of September 30, 2022 were as follows: Contingent consideration September 30, 2022 Stock Price $ 35.42 Equity volatility 93.7 % Risk-free interest rate 3.9 % Revenue volatility 30.2 %
Summary of Reconciliation of Beginning and Ending Balances of the Level 3 Instruments	The following table provides a reconciliation of beginning and ending balances of the Level 3 financial liabilities during the three months ended December 31, 2022: (in thousands) Total Balance as of September 30, 2022 $ 2,100 Change in fair value (2,100) Balance as of December 31, 2022 $ —

Balance sheet components (Table

Balance sheet components (Tables)	3 Months Ended
	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Summary of Accounts Receivable	The Company’s accounts receivable, net balance consists of the following: (in thousands) December 31, September 30, Trade receivables $ 39,405 $ 35,706 Other receivables 5,254 4,822 Allowance for doubtful accounts (222) (234) Accounts receivable, net $ 44,437 $ 40,294
Summary of Inventories	Inventories consist of the following: (in thousands) December 31, September 30, Raw materials $ 33,558 $ 28,787 Work-in-process 3,610 2,866 Finished goods 7,429 7,654 $ 44,597 $ 39,307
Summary of Property, Plant and Equipment	Property and Equipment, net consists of the following: December 31, September 30, (in thousands) 2022 2022 Laboratory equipment $ 65,393 $ 62,285 Furniture, fixtures and other equipment 2,487 2,332 Computer equipment 2,867 2,814 Computer software 1,693 1,693 Leasehold improvements 58,876 14,371 Construction in progress 49,223 87,723 $ 180,539 $ 171,218 Less: Accumulated depreciation and amortization (35,689) (31,777) $ 144,850 $ 139,441
Summary of Other Current Liabilities	The other current liabilities consist of the following: (in thousands) December 31, September 30, Indemnity holdbacks $ 7,557 $ 9,592 Income and sales taxes payable 3,761 3,661 Deferred revenue 3,683 3,476 Contingent consideration — 2,100 Other current liabilities 821 908 $ 15,822 $ 19,737

Goodwill and intangible assets

Goodwill and intangible assets (Tables)	3 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill balance	The goodwill balance is presented below: (in thousands) December 31, 2022 September 30, 2022 Balance at beginning of period/year $ 85,811 $ 22,434 Business acquisition – additions — 61,768 Remeasurement adjustments to the deferred tax assets — 1,609 Balance at end of period/year $ 85,811 $ 85,811
Summary of Intangible Assets	The intangible assets balances are presented below: December 31, 2022 (in thousands, except for years) Weighted average Gross Accumulated Net book Developed Technology 15 $ 50,020 $ (5,190) $ 44,830 Customer Relationships 11 15,210 (2,254) 12,956 Tradenames & Trademarks 3 900 (325) 575 Total finite-lived intangible assets $ 66,130 $ (7,769) $ 58,361 September 30, 2022 (in thousands, except for years) Weighted average Gross Accumulated Net book Developed Technology 15 $ 50,020 $ (4,375) $ 45,645 Customer Relationships 11 15,210 (1,767) 13,443 Tradenames & Trademarks 3 $ 900 $ (250) $ 650 Total finite-lived intangible assets $ 66,130 $ (6,392) $ 59,738

Commitments and contingencies (

Commitments and contingencies (Tables)	3 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of Supplemental Balance Sheet Information Relating to Companies Operating Lease	Supplemental balance sheet information related to the Company’s operating leases as of December 31, 2022 is as follows: (in thousands) December 31, Assets: Operating lease right-of-use asset $ 73,757 Current liabilities: Current portion of operating lease liabilities $ 14,227 Noncurrent liabilities: Operating lease liabilities, net of current portion $ 79,748
Schedule of Future Minimum Rental Payments for Operating Leases	Future minimum lease payments under all non-cancelable operating leases that have commenced as of December 31, 2022 are as follows: (in thousands) Operating Years ending September 30: Remainder of 2023 $ 11,981 2024 14,214 2025 14,066 2026 12,609 2027 7,265 Thereafter 90,968 Total minimum lease payments $ 151,103 Less: imputed interest (57,128) Total operating lease liabilities $ 93,975 Less: current portion (14,227) Operating lease liabilities, net of current portion $ 79,748

Stock-based compensation (Table

Stock-based compensation (Tables)	3 Months Ended
	Dec. 31, 2022
Share-based Payment Arrangement [Abstract]
Schedule of Nonvested Restricted Stock Units Activity	Activity with respect to the Company’s restricted stock units during the three months ended December 31, 2022 was as follows: (in thousands, except per share data) Shares Weighted average grant date fair value per share Nonvested shares at September 30, 2022 1,566 $ 67.66 Granted 589 26.28 Vested/Issued (102) 66.98 Forfeited (235) 81.89 Nonvested shares at December 31, 2022 1,818 $ 52.41
Schedule of Nonvested Performance-based Units Activity	Activity under the PSUs during the three months ended December 31, 2022 is summarized below: (in thousands, except per share data) Shares Weighted average grant date fair value per share Nonvested shares at September 30, 2022 529 $ 79.60 Granted 423 26.50 Vested/Issued (6) 90.44 Forfeited (187) 86.38 Nonvested at December 31, 2022 759 $ 48.28
Schedule of Activity Under Option and Performance Stock Options	Options activity during the three months ended December 31, 2022 is summarized below: (in thousands, except per share data) Shares Weighted average exercise price per share Weighted average remaining contractual term (years) Aggregate intrinsic value Outstanding at September 30, 2022 2,453 $ 24.67 6.33 $ 33,447 Granted — — — — Forfeited (37) 42.87 — — Exercised (35) 17.17 — 312 Outstanding at December 31, 2022 2,381 $ 24.49 6.06 $ 10,715 Nonvested at December 31, 2022 427 33.87 6.92 423 Exercisable 1,954 $ 22.44 5.87 $ 10,292 Activity under the PSOs during the three months ended December 31, 2022 is summarized below: (in thousands, except per share data) Shares Weighted average exercise price per share Weighted average remaining contractual term (years) Aggregate intrinsic value Outstanding at September 30, 2022 312 $ 61.35 8.33 $ 296 Exercisable at September 30, 2022 19 $ 31.29 9.57 $ 74 Nonvested at September 30, 2022 293 63.27 8.25 222 Vested (237) $ 70.84 — $ — Nonvested at December 31, 2022 56 $ 31.29 9.32 $ — Exercisable at December 31, 2022 256 67.95 7.81 — Outstanding at December 31, 2022 312 $ 61.35 8.08 $ —
Schedule of Stock-Based Compensation Expenses	Total stock-based compensation (credit)/expense recognized was as follows: Three months ended (in thousands) 2022 2021 Cost of revenues $ 1,142 $ 878 Research and development 4,418 4,027 Selling, general and administrative (7,885) 13,163 Total stock-based compensation $ (2,325) $ 18,068
Summary of Stock Option Valuation Assumptions	The number of shares reserved for issuance at December 31, 2022 was as follows: (In thousands) Shares Outstanding at September 30, 2022 507 Additional shares authorized 250 Shares issued during the period — Outstanding at December 31, 2022 757

Net loss per share attributab_2

Net loss per share attributable to common stockholders (Tables)	3 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Summary of Computation of the Company's Basic and Diluted Net Loss Per Share Attributable to Common Stockholders	The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders: Three months ended (in thousands, except per share data) 2022 2021 Numerator: Net loss attributable to common stockholders $ (41,824) $ (45,563) Denominator: Weighted average shares used in computing net loss per share, basic and diluted 56,444 49,912 Net loss per share attributable to common stockholders, basic and diluted $ (0.74) $ (0.91)
Summary of Calculation of Diluted Net Loss Per Share	The potentially dilutive common shares that were excluded from the calculation of diluted net loss per share because their effect would have been antidilutive for the periods presented are as follows: Three months ended December 31, (in thousands) 2022 2021 Shares subject to options to purchase common stock 2,693 2,939 Unvested restricted stock units and performance stock units 2,577 1,605 Unvested shares of common stock issued upon early exercise of stock options — 1 Shares subject to employee stock purchase plan 137 38 Total 5,407 4,583

Geographic, product and indus_2

Geographic, product and industry information (Tables)	3 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Summary of Revenue by Geographic Region	The table below sets forth revenues by geographic region, based on ship-to destinations. Americas consists of the United States of America, Canada, Mexico and South America; EMEA consists of Europe, the Middle East, and Africa; and APAC consists of Japan, China, South Korea, India, Singapore, Malaysia, and Australia. Three months ended (in thousands) 2022 2021 Americas $ 33,646 $ 22,611 EMEA 16,331 15,365 APAC 4,266 4,042 Total $ 54,243 $ 42,018
Summary of Revenue by Product	The table below sets forth revenues by products. Three months ended (in thousands) 2022 2021 Synthetic genes $ 16,175 $ 13,525 Oligo pools 3,699 3,188 DNA libraries 1,836 1,261 Antibody discovery 8,171 4,813 NGS tools 24,362 19,231 Total $ 54,243 $ 42,018
Summary of Revenue by Industry	The table below sets forth revenues by industry. Three months ended (in thousands) 2022 2021 Industrial chemicals/materials $ 13,575 $ 12,526 Academic research 10,015 7,887 Healthcare 30,013 21,053 Food/agricultural 640 552 Total $ 54,243 $ 42,018

Business acquisition (Tables)

Business acquisition (Tables)	3 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Summary of Preliminary Fair Value Amounts of Assets Acquired and Liabilities Assumed	The following table summarizes the final fair value amounts of the assets acquired and liabilities assumed as of the acquisition date, as well as the purchase consideration: (in thousands) December 1, 2021 Assets acquired Cash and cash equivalents $ 1,306 Accounts receivable 2,309 Other current assets and prepaid expenses 1,654 Property, plant and equipment 1,078 Other non-current assets 2,970 Intangible assets 46,500 Liabilities assumed Current liabilities 3,549 Non-current liabilities 846 Deferred tax liability 10,545 Fair value of assets acquired and liabilities assumed $ 40,877 Goodwill 61,768 Total purchase price $ 102,645 Consideration transferred Cash $ 9,467 Company common stock 72,514 Contingent consideration 8,500 Holdback liabilities 12,838 Net working capital adjustment (674) Fair value of purchase consideration $ 102,645
Summary of Preliminary Estimate of Intangible Assets	The following table summarizes the preliminary estimate of the intangible assets as of the acquisition date: (in thousands except for years) Estimated Estimated Fair Developed technology 14 $ 30,900 Customer relationships 10 14,700 Trade name 3 900 Estimated fair value of acquired intangible assets $ 46,500
Schedule of Reconciliation of Contingent Consideration	The following table provides a reconciliation of contingent consideration and holdbacks balances from acquisition date to December 31, 2022: (in thousands) Contingent Holdbacks Total Balance at December 1, 2021 – acquisition date $ 8,500 $ 12,164 $ 20,664 Change in fair value during the period (6,400) (7,071) (13,471) Balance at September 30, 2022 $ 2,100 $ 5,093 $ 7,193 Change in fair value during the period (2,100) (1,621) (3,721) Balance at December 31, 2022 $ — $ 3,472 $ 3,472

The Company (Details)

The Company (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Sep. 30, 2022
Class of Warrant or Right [Line Items]
Accumulated deficit	$ 870,240	$ 828,416
Subsequent Public Offering
Class of Warrant or Right [Line Items]
Proceeds of underwritten public offering common stock	1,333,700
Proceeds from issuance of debt	$ 13,800

Summary of significant accoun_4

Summary of significant accounting policies - Summary of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Accounting Policies [Abstract]
Cash and cash equivalents	$ 316,681	$ 378,687
Restricted cash, non-current	2,410	1,572
Total cash, cash equivalents and restricted cash	$ 319,091	$ 380,259	$ 193,196	$ 467,359

Fair value measurement - Cash A

Fair value measurement - Cash And Cash Equivalents And Available For Sale Securities At Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 316,681	$ 378,687
Amortized cost	439,436	506,562
Gross unrealized gains	0	0
Gross unrealized losses	(726)	(1,594)
Cash and cash equivalents, fair value	316,681	378,687
Fair value	438,710	504,968
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short term investments, Amortized cost	22,647
Gross unrealized gains	0
Gross unrealized losses	0
Short term investments, fair value	22,647
U.S. government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short term investments, Amortized cost	100,108	112,878
Gross unrealized gains	0	0
Gross unrealized losses	(726)	(1,594)
Short term investments, fair value	$ 99,382	111,284
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short term investments, Amortized cost		14,997
Gross unrealized gains		0
Gross unrealized losses		0
Short term investments, fair value		$ 14,997

Fair value measurement - Summar

Fair value measurement - Summary of Company's Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022
Assets
Total financial assets	$ 316,681	$ 378,687
Total financial assets	376,225	443,086
Liabilities
Holdback	7,557	11,692
Total financial liabilities	7,557	11,692
U.S. government treasury bills
Assets
Short term investments, fair value	99,382	111,284
Commercial paper
Assets
Short term investments, fair value		14,997
Money market funds
Assets
Total financial assets	254,196	316,805
Corporate bonds
Assets
Total financial assets	22,647
Level 1
Assets
Total financial assets	353,578	428,089
Liabilities
Holdback	0	0
Total financial liabilities	0	0
Level 1 | U.S. government treasury bills
Assets
Short term investments, fair value	99,382	111,284
Level 1 | Commercial paper
Assets
Short term investments, fair value		0
Level 1 | Money market funds
Assets
Total financial assets	254,196	316,805
Level 1 | Corporate bonds
Assets
Total financial assets	0
Level 2
Assets
Total financial assets	22,647	14,997
Liabilities
Holdback	7,557	9,592
Total financial liabilities	7,557	9,592
Level 2 | U.S. government treasury bills
Assets
Short term investments, fair value	0	0
Level 2 | Commercial paper
Assets
Short term investments, fair value		14,997
Level 2 | Money market funds
Assets
Total financial assets	0	0
Level 2 | Corporate bonds
Assets
Total financial assets	22,647
Level 3
Assets
Total financial assets	0	0
Liabilities
Holdback	0	2,100
Total financial liabilities	0	2,100
Level 3 | U.S. government treasury bills
Assets
Short term investments, fair value	0	0
Level 3 | Commercial paper
Assets
Short term investments, fair value		0
Level 3 | Money market funds
Assets
Total financial assets	0	$ 0
Level 3 | Corporate bonds
Assets
Total financial assets	$ 0

Fair value measurement - Narrat

Fair value measurement - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended
	Dec. 31, 2022	Dec. 31, 2022	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair value, measurement with unobservable inputs reconciliation, recurring basis, liability value	$ 0	$ 0	$ 2,100
Change in fair value of contingent consideration	$ 2,100	$ 2,100

Fair value measurement - Monte

Fair value measurement - Monte Carlo Simulation (Details) - Abveris	Sep. 30, 2022
Stock Price
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, contingent consideration input	35.42
Equity volatility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, contingent consideration input	0.937
Risk-free interest rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, contingent consideration input	0.039
Revenue volatility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business combination, contingent consideration input	0.302

Fair Value Measurement - Summ_2

Fair Value Measurement - Summary of Reconciliation of Beginning and Ending Balances of the Level 3 Instruments (Details) - USD ($) $ in Thousands		3 Months Ended
	Dec. 31, 2022	Dec. 31, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance as of September 30, 2022		$ 2,100
Change in fair value	$ (2,100)	(2,100)
Balance as of December 31, 2022	$ 0	$ 0

Balance sheet components - Rece

Balance sheet components - Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022
Balance Sheet Related Disclosures [Abstract]
Trade receivables	$ 39,405	$ 35,706
Other receivables	5,254	4,822
Allowance for doubtful accounts	(222)	(234)
Accounts receivable, net	$ 44,437	$ 40,294

Balance sheet components - Inve

Balance sheet components - Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022
Balance Sheet Related Disclosures [Abstract]
Raw materials	$ 33,558	$ 28,787
Work-in-process	3,610	2,866
Finished goods	7,429	7,654
Total inventories	$ 44,597	$ 39,307

Balance sheet components - Narr

Balance sheet components - Narrative (Details) - USD ($)	Dec. 31, 2022	Sep. 30, 2022
Balance Sheet Related Disclosures [Abstract]
Work-in-process inventory included gross consigned	$ 0	$ 100,000

Balance sheet components - Summ

Balance sheet components - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 180,539	$ 171,218
Less: Accumulated depreciation and amortization	(35,689)	(31,777)
Property and equipment, net	144,850	139,441
Laboratory equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	65,393	62,285
Furniture, fixtures and other equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,487	2,332
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,867	2,814
Computer software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,693	1,693
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	58,876	14,371
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 49,223	$ 87,723

Balance sheet components - Othe

Balance sheet components - Other current liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022
Balance Sheet Related Disclosures [Abstract]
Indemnity holdbacks	$ 7,557	$ 9,592
Income and sales taxes payable	3,761	3,661
Deferred revenue	3,683	3,476
Contingent consideration	0	2,100
Other current liabilities	821	908
Other current liabilities	$ 15,822	$ 19,737

Goodwill and intangible asset_2

Goodwill and intangible assets - Goodwill (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Total amortization expense related to intangible assets	$ 1.4	$ 0.8

Goodwill and intangible asset_3

Goodwill and intangible assets - Summary of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022
Goodwill [Roll Forward]
Balance at beginning of year	$ 85,811	$ 22,434
Business acquisition – additions	0	61,768
Remeasurement adjustments to the deferred tax assets	0	1,609
Balance at end of year	$ 85,811	$ 85,811

Goodwill and intangible asset_4

Goodwill and intangible assets - Intangible Assets Balances (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 66,130	$ 66,130
Accumulated amortization	(7,769)	(6,392)
Net book value	$ 58,361	$ 59,738
Developed Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average Amortization period in years	15 years	15 years
Gross carrying amount	$ 50,020	$ 50,020
Accumulated amortization	(5,190)	(4,375)
Net book value	$ 44,830	$ 45,645
Customer Relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average Amortization period in years	11 years	11 years
Gross carrying amount	$ 15,210	$ 15,210
Accumulated amortization	(2,254)	(1,767)
Net book value	$ 12,956	$ 13,443
Tradenames & Trademarks
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average Amortization period in years	3 years	3 years
Gross carrying amount	$ 900	$ 900
Accumulated amortization	(325)	(250)
Net book value	$ 575	$ 650

Commitments and contingencies -

Commitments and contingencies - Operating Leases On Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022
Assets:
Operating lease right-of-use assets	$ 73,757	$ 74,948
Current liabilities:
Current portion of operating lease liability	14,227	13,642
Noncurrent liabilities:
Operating lease liability, net of current portion	$ 79,748	$ 81,270

Commitments and contingencies_2

Commitments and contingencies - Minimum Rental Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2023	$ 11,981
2024	14,214
2025	14,066
2026	12,609
2027	7,265
Thereafter	90,968
Total minimum lease payments	151,103
Less: imputed interest	(57,128)
Total operating lease liabilities	93,975
Less: current portion	(14,227)	$ (13,642)
Operating lease liability, net of current portion	$ 79,748	$ 81,270

Commitments and contingencies_3

Commitments and contingencies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Change in right-of-use asset	$ 1.2	$ 10.4
Change in operating lease liabilities	0.9	11.6
Operating lease expense	4.1	3.5
Operating lease payments	$ 3.6	$ 2.9
Lease weighted-average remaining lease term	15 years 10 months 24 days
Lease weighted average discount rate	6.40%

Related party transactions - (D

Related party transactions - (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2022
Related Party Transactions [Abstract]
Raw materials purchased from related party investor	$ 2.1	$ 1.7
Revenue from related parties	0.2	0
Payable balances	0.7	0
Receivable balances	$ 0.2	$ 0
Related party consideration			$ 0.1

Income taxes (Details)

Income taxes (Details) $ in Millions	3 Months Ended
	Dec. 31, 2021 USD ($)
Abx Biologics Inc.
Income Tax Contingency [Line Items]
Income tax benefit, due to deferred tax liability as part of business acquisition	$ 10.5

Common stock (Details)

Common stock (Details) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Feb. 28, 2022 USD ($) $ / shares shares	Dec. 31, 2022 vote $ / shares	Sep. 30, 2022 $ / shares
Class of Stock [Line Items]
Common stock, par value (in usd per share) | $ / shares		$ 0.00001	$ 0.00001
Number of votes per share | vote		1
Subsequent Public Offering
Class of Stock [Line Items]
Underwritten public offering (in shares) | shares	5,227,272
Common stock (in dollars per share) | $ / shares	$ 55
Over-Allotment Option
Class of Stock [Line Items]
Underwritten public offering (in shares) | shares	681,818
Net proceeds from offering | $	$ 269.8

Stock-based compensation - Narr

Stock-based compensation - Narrative (Details) $ in Thousands		3 Months Ended
	Sep. 26, 2018 shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($)	Sep. 30, 2022 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, options		$ 9,400
Stock based compensation credit		$ 2,325	$ (18,068)
Aggregate number of common stock shares reserved for issuance (in shares) | shares		757,000		507,000
Employer matching percentage		50%
Percentage of employee's gross pay matched		6%
Employer matching contributions		$ 700
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		4 years
Conversion ratio		1
Unrecognized compensation cost, stock options		$ 86,300
Recognize cost weighted average period		3 years
Grant date fair value		$ 15,500
Restricted Stock Units (RSUs) | Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		1 year
Performance Stock Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, stock options		$ 24,300
Recognize cost weighted average period		1 year 7 months 6 days
Grant date fair value		$ 10,100
Performance Stock Unit | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of PSUs that may vest based on performance		0%
Performance Stock Unit | Minimum | Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		1 year
Performance Stock Unit | Minimum | Non-Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		1 year
Performance Stock Unit | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of PSUs that may vest based on performance		150%
Performance Stock Unit | Maximum | Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
Performance Stock Unit | Maximum | Non-Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		4 years
Recognize cost weighted average period		10 months 24 days
Award term		10 years
Expected dividend rate		0%
Performance Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognize cost weighted average period		1 year 7 months 6 days
Award term		10 years
Unrecognized compensation cost, options		$ 800
Performance Stock Options | Executive Officers and Senior Level Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		2 years
Vest outstanding (in shares) | shares		56,250
Performance Stock Options | Non-Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		5 years
Performance Stock Options | Minimum | Executive Officers and Senior Level Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of PSUs that may vest based on performance		0%
Performance Stock Options | Maximum | Executive Officers and Senior Level Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of PSUs that may vest based on performance		150%
Share-based Payment Arrangement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capitalized computer software, net		$ 900
2018 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of common stock shares reserved for issuance (in shares) | shares	275,225
Minimum annual increase in share reserved for issuance | shares	249,470
Annual automatic Increase in share reserved for issuance (as a percent)	1%
Percentage of payroll deduction to purchase common stock	15%
ESPP eligible employee common stock purchase price ratio	85%

Stock-based compensation expens

Stock-based compensation expense - Activity Under The Equity Incentive Plans (Details) shares in Thousands	3 Months Ended
	Dec. 31, 2022 $ / shares shares
Restricted Stock Unit
Number of Shares
Beginning balance (in shares) | shares	1,566
Granted (in shares) | shares	589
Vested/Issued (in shares) | shares	(102)
Forfeited (in shares) | shares	(235)
Ending balance (in shares) | shares	1,818
Weighted average grant date fair value per share
Beginning balance (in usd per share) | $ / shares	$ 67.66
Granted (in usd per share) | $ / shares	26.28
Vested (in usd per share) | $ / shares	66.98
Forfeited (in usd per share) | $ / shares	81.89
Ending balance (in usd per share) | $ / shares	$ 52.41
Performance Stock Unit
Number of Shares
Beginning balance (in shares) | shares	529
Granted (in shares) | shares	423
Vested/Issued (in shares) | shares	(6)
Forfeited (in shares) | shares	(187)
Ending balance (in shares) | shares	759
Weighted average grant date fair value per share
Beginning balance (in usd per share) | $ / shares	$ 79.60
Granted (in usd per share) | $ / shares	26.50
Vested (in usd per share) | $ / shares	90.44
Forfeited (in usd per share) | $ / shares	86.38
Ending balance (in usd per share) | $ / shares	$ 48.28

Stock-based compensation expe_2

Stock-based compensation expense - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022
Shares
Beginning balance (in shares)	2,453,000
Granted (in shares)	0
Forfeited (in shares)	(37,000)
Exercised (in shares)	(35,000)
Ending balance (in shares)	2,381,000	2,453,000
Number of options, Nonvested at December 31, 2022 (in shares)	427,000
Number of options, Exercisable (in shares)	1,954,000
Weighted average exercise price per share
Beginning balance (in usd per share)	$ 24.67
Granted (in usd per share)	0
Forfeited (in usd per share)	42.87
Exercised (in dollars per share)	17.17
Ending balance (in usd per share)	24.49	$ 24.67
Weighted average exercise price per share, Nonvested at December 31, 2022 (in dollars per share)	33.87
Vested and exercisable (in usd per share)	$ 22.44
Weighted average remaining contractual term (years)
Outstanding	6 years 21 days	6 years 3 months 29 days
Weighted average remaining contractual term (years), Nonvested at December 31, 2022	6 years 11 months 1 day
Weighted average remaining contractual term (years), Exercisable	5 years 10 months 13 days
Aggregate Intrinsic Value
Aggregate intrinsic value, outstanding beginning balance	$ 33,447
Exercised	312
Aggregate intrinsic value, outstanding ending balance	10,715	$ 33,447
Aggregate intrinsic value, nonvested	423
Aggregate intrinsic value, Vested and exercisable	$ 10,292
Performance Stock Options
Shares
Beginning balance (in shares)	312,000
Vested (in shares)	(237,000)
Ending balance (in shares)	312,000	312,000
Number of options, Nonvested at December 31, 2022 (in shares)	56,000	293,000
Number of options, Exercisable (in shares)	256,000	19,000
Weighted average exercise price per share
Beginning balance (in usd per share)	$ 61.35
Vested (in usd per share)	70.84
Ending balance (in usd per share)	61.35	$ 61.35
Weighted average exercise price per share, Nonvested at December 31, 2022 (in dollars per share)	31.29	63.27
Vested and exercisable (in usd per share)	$ 67.95	$ 31.29
Weighted average remaining contractual term (years)
Outstanding	8 years 29 days	8 years 3 months 29 days
Weighted average remaining contractual term (years), Nonvested at December 31, 2022	9 years 3 months 25 days	8 years 3 months
Weighted average remaining contractual term (years), Exercisable	7 years 9 months 21 days	9 years 6 months 25 days
Aggregate Intrinsic Value
Aggregate intrinsic value, outstanding beginning balance	$ 296
Aggregate intrinsic value, outstanding ending balance		$ 296
Aggregate intrinsic value, nonvested		222
Aggregate intrinsic value, Vested and exercisable		$ 74

Stock-based compensation - Expe

Stock-based compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ (2,325)	$ 18,068
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	1,142	878
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	4,418	4,027
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ (7,885)	$ 13,163

Stock-based compensation - Rese

Stock-based compensation - Reserved For Issuance (Details) shares in Thousands	3 Months Ended
	Dec. 31, 2022 shares
Share-Based Compensation Arrangement By Share-based Payment Award, Outstanding [Roll Forward]
Beginning balance (in shares)	507
Additional shares authorized (in shares)	250
Shares issued during the period (in shares)	0
Ending balance (in shares)	757

Stock-based compensation - Abve

Stock-based compensation - Abveris Acquisition (Details) - USD ($) $ in Thousands		3 Months Ended		12 Months Ended
	Dec. 01, 2021	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense (reduction)		$ (2,325)	$ 18,068
Abveris
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards aggregate fair value	$ 20,100
Vesting period	2 years
Stock based compensation expense (reduction)		$ (9,900)
Abveris | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity awards restricted (in shares)	231,876
Stock based compensation expense (reduction)				$ 9,900

Net loss per share attributab_3

Net loss per share attributable to common stockholders - Computation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Numerator:
Net loss attributable to common stockholders	$ (41,824)	$ (45,563)
Denominator:
Weighted average shares used in computing net loss per share, basic (in shares)	56,444	49,912
Weighted average shares used in computing net loss per share, diluted (in shares)	56,444	49,912
Net loss per share attributable to common stockholders—basic (in usd per share)	$ (0.74)	$ (0.91)
Net loss per share attributable to common stockholders, diluted (in usd per share)	$ (0.74)	$ (0.91)

Net loss per share attributab_4

Net loss per share attributable to common stockholders - Anti-dilutive (Details) - shares shares in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (in shares)	5,407	4,583
Shares subject to 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)	2,693	2,939
Unvested restricted stock units and performance 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)	2,577	1,605
Unvested shares of common stock issued upon early exercise of stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (in shares)	0	1
Shares subject to employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (in shares)	137	38

Geographic, product and indus_3

Geographic, product and industry information - Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Revenue	$ 54,243	$ 42,018
Americas
Segment Reporting Information [Line Items]
Revenue	33,646	22,611
EMEA
Segment Reporting Information [Line Items]
Revenue	16,331	15,365
APAC
Segment Reporting Information [Line Items]
Revenue	$ 4,266	$ 4,042

Geographic, product and indus_4

Geographic, product and industry information - By Product (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Revenue	$ 54,243	$ 42,018
Synthetic genes
Segment Reporting Information [Line Items]
Revenue	16,175	13,525
Oligo pools
Segment Reporting Information [Line Items]
Revenue	3,699	3,188
DNA libraries
Segment Reporting Information [Line Items]
Revenue	1,836	1,261
Antibody discovery
Segment Reporting Information [Line Items]
Revenue	8,171	4,813
NGS tools
Segment Reporting Information [Line Items]
Revenue	$ 24,362	$ 19,231

Geographic, product and indus_5

Geographic, product and industry information - By Industry (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Revenue	$ 54,243	$ 42,018
Industrial chemicals/materials
Segment Reporting Information [Line Items]
Revenue	13,575	12,526
Academic research
Segment Reporting Information [Line Items]
Revenue	10,015	7,887
Healthcare
Segment Reporting Information [Line Items]
Revenue	30,013	21,053
Food/agricultural
Segment Reporting Information [Line Items]
Revenue	$ 640	$ 552

Business acquisition - Narrativ

Business acquisition - Narrative (Details) - USD ($) $ in Thousands		1 Months Ended				3 Months Ended	10 Months Ended
	Dec. 01, 2021	Jan. 31, 2023	Dec. 31, 2022	Jan. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Sep. 30, 2022
Abveris
Business Acquisition [Line Items]
Fair value of consideration transferred	$ 102,645
Cash	$ 9,467
Equity (in shares)	759,601
Company common stock	$ 72,514
Options consideration	6,400
Contingent consideration	8,500
Holdback Liabilities	12,800
Net working capital adjustment	$ 674
Contingent consideration, shares issuable up to (in shares)	334,939
Indemnity holdbacks period	18 months
Indemnity holdback shares (in shares)	128,351
Indemnity holdback options (in shares)	15,304
Holdback before adjustment	$ 12,500
Adjustment holdback shares (in shares)	3,416		166			166
Adjustment holdback options (in shares)	408
Value of adjustment holdback	$ 300
Post combination compensation expenses includes employee stock awards					$ 41,000
Vesting period	2 years
Gain related to change in fair value during the period						$ 3,721	$ 13,471
Abveris | Awards with vesting requirements
Business Acquisition [Line Items]
Post combination compensation expenses includes employee stock awards					$ 17,700
Vesting period					2 years
Abveris | Awards without vesting requirements
Business Acquisition [Line Items]
Post combination compensation expenses includes employee stock awards					$ 3,200
Abveris | Performance Shares
Business Acquisition [Line Items]
Post combination compensation expenses includes employee stock awards					$ 20,100
iGenomX
Business Acquisition [Line Items]
Company common stock	$ 66,100			$ 4,600
Contingent consideration (in shares)			171,551		59,190
iGenomX | Subsequent events
Business Acquisition [Line Items]
Company common stock		$ 4,100

Business acquisition - Assets a

Business acquisition - Assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands	Dec. 01, 2021	Dec. 31, 2022	Sep. 30, 2022	Sep. 30, 2021
Liabilities assumed
Goodwill		$ 85,811	$ 85,811	$ 22,434
Abveris
Assets acquired
Cash and cash equivalents	$ 1,306
Accounts receivable	2,309
Other current assets and prepaid expenses	1,654
Property, plant and equipment	1,078
Other non-current assets	2,970
Intangible assets	46,500
Liabilities assumed
Current liabilities	3,549
Non-current liabilities	846
Deferred tax liability	10,545
Fair value of assets acquired and liabilities assumed	40,877
Goodwill	61,768
Total purchase price	102,645
Consideration transferred
Cash	9,467
Company common stock	72,514
Contingent consideration	8,500
Holdback liabilities	12,838
Net working capital adjustment	(674)
Fair value of purchase consideration	$ 102,645

Business acquisition - Prelimin

Business acquisition - Preliminary estimate of the intangible assets (Details) - Abveris $ in Thousands	Dec. 01, 2021 USD ($)
Business Acquisition [Line Items]
Estimated Fair Value	$ 46,500
Developed Technology
Business Acquisition [Line Items]
Estimated Weighted Average Useful Lives in Years	14 years
Estimated Fair Value	$ 30,900
Customer Relationships
Business Acquisition [Line Items]
Estimated Weighted Average Useful Lives in Years	10 years
Estimated Fair Value	$ 14,700
Trade name
Business Acquisition [Line Items]
Estimated Weighted Average Useful Lives in Years	3 years
Estimated Fair Value	$ 900

Business acquisition - Change i

Business acquisition - Change in contingent consideration (Details) - USD ($) $ in Thousands	3 Months Ended	10 Months Ended
	Dec. 31, 2022	Sep. 30, 2022
Business Combination, Contingent Consideration Arrangements, Change In Amount Of Contingent Consideration, Liability [Roll Forward]
Beginning balance	$ 11,692
Ending balance	7,557	$ 11,692
Abveris
Business Combination, Contingent Consideration Arrangements, Change In Amount Of Contingent Consideration, Liability [Roll Forward]
Beginning balance	7,193	20,664
Change in fair value during the period	(3,721)	(13,471)
Ending balance	3,472	7,193
Contingent consideration | Abveris
Business Combination, Contingent Consideration Arrangements, Change In Amount Of Contingent Consideration, Liability [Roll Forward]
Beginning balance	2,100	8,500
Change in fair value during the period	(2,100)	(6,400)
Ending balance	0	2,100
Holdbacks | Abveris
Business Combination, Contingent Consideration Arrangements, Change In Amount Of Contingent Consideration, Liability [Roll Forward]
Beginning balance	5,093	12,164
Change in fair value during the period	(1,621)	(7,071)
Ending balance	$ 3,472	$ 5,093