Cover Page
Cover Page - shares | 6 Months Ended | |
Mar. 31, 2023 | May 04, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 | 57,147,071 | |
Amendment Flag | false | |
Entity Central Index Key | 0001581280 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 315,196 | $ 378,687 |
Short-term investments | 72,462 | 126,281 |
Accounts receivable, net | 48,187 | 40,294 |
Inventories | 39,923 | 39,307 |
Prepaid expenses and other current assets | 13,503 | 11,914 |
Total current assets | 489,271 | 596,483 |
Property and equipment, net | 146,539 | 139,441 |
Operating lease right-of-use assets | 70,669 | 74,948 |
Goodwill | 85,811 | 85,811 |
Intangible assets, net | 57,068 | 59,738 |
Restricted cash, non-current | 2,365 | 1,572 |
Other non-current assets | 2,201 | 3,385 |
Total assets | 853,924 | 961,378 |
Current liabilities: | ||
Accounts payable | 13,236 | 20,092 |
Accrued expenses | 11,156 | 10,169 |
Accrued compensation | 24,280 | 27,023 |
Current portion of operating lease liability | 13,396 | 13,642 |
Other current liabilities | 10,040 | 19,737 |
Total current liabilities | 72,108 | 90,663 |
Operating lease liability, net of current portion | 77,824 | 81,270 |
Other non-current liabilities | 60 | 60 |
Total liabilities | 149,992 | 171,993 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity | ||
Common stock, $0.00001 par value —100,000 and 100,000 shares authorized at March 31, 2023 and September 30, 2022, respectively; 57,105 and 56,523 shares issued and outstanding at March 31, 2023 and September 30, 2022, respectively | 0 | 0 |
Additional paid-in capital | 1,633,217 | 1,619,644 |
Accumulated other comprehensive income (loss) | 111 | (1,843) |
Accumulated deficit | (929,396) | (828,416) |
Total stockholders’ equity | 703,932 | 789,385 |
Total liabilities and stockholders’ equity | $ 853,924 | $ 961,378 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2023 | 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) | 57,105 | 56,523 |
Common stock, outstanding (in shares) | 57,105 | 56,523 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Revenues | $ 60,180 | $ 48,127 | $ 114,423 | $ 90,145 |
Operating expenses: | ||||
Cost of revenues | 41,669 | 29,714 | 71,111 | 56,770 |
Research and development | 27,379 | 31,231 | 58,621 | 53,861 |
Selling, general and administrative | 53,965 | 53,998 | 96,289 | 105,096 |
Change in fair value of contingent considerations and holdbacks | (1,196) | (6,014) | (5,331) | (8,840) |
Total operating expenses | 121,817 | 108,929 | 220,690 | 206,887 |
Loss from operations | (61,637) | (60,802) | (106,267) | (116,742) |
Interest income | 3,464 | 259 | 6,504 | 412 |
Interest expense | (2) | (29) | (3) | (54) |
Other expense, net | (305) | (245) | (462) | (401) |
Loss before income taxes | (58,480) | (60,817) | (100,228) | (116,785) |
Income tax (provision) / benefit | (676) | 149 | (752) | 10,554 |
Net loss attributable to common stockholders | (59,156) | (60,668) | (100,980) | (106,231) |
Other comprehensive loss: | ||||
Change in unrealized gain (loss) on investments | 647 | (1,113) | 1,516 | (1,389) |
Foreign currency translation adjustment | 73 | 275 | 438 | 368 |
Comprehensive loss | $ (58,436) | $ (61,506) | $ (99,026) | $ (107,252) |
Net loss per share attributable to common stockholders—basic (in usd per share) | $ (1.04) | $ (1.13) | $ (1.78) | $ (2.06) |
Net loss per share attributable to common stockholders—diluted (in usd per share) | $ (1.04) | $ (1.13) | $ (1.78) | $ (2.06) |
Weighted average shares used in computing net loss per share attributable to common stockholders—basic (in shares) | 56,777 | 53,472 | 56,608 | 51,673 |
Weighted average shares used in computing net loss per share attributable to common stockholders—diluted (in shares) | 56,777 | 53,472 | 56,608 | 51,673 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders’ Equity (unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated Other comprehensive income (loss) | Accumulated deficit |
Beginning balance (in shares) at Sep. 30, 2021 | 49,499,000 | ||||
Beginning balance at Sep. 30, 2021 | $ 580,821 | $ 0 | $ 1,190,828 | $ 546 | $ (610,553) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock in public offering, net of underwriting discounts and commissions and offering expenses (in shares) | 5,227,000 | ||||
Issuance of common stock in public offering, net of underwriting discounts and commissions and offering expenses | 269,818 | 269,818 | |||
Vesting of restricted stock units (in shares) | 163,000 | ||||
Exercise of stock options (in shares) | 368,000 | ||||
Exercise of stock options | 3,934 | 3,934 | |||
Issuance of shares under the employee stock purchase plan (in shares) | 50,000 | ||||
Issuance of shares under the employee stock purchase plan | 2,395 | 2,395 | |||
Repurchases of common stock for income tax withholding (in shares) | (62,000) | ||||
Repurchases of common stock for income tax withholding | (4,050) | (4,050) | |||
Issuance of shares from business acquisition (in shares) | 989,000 | ||||
Issuance of shares from business acquisition | 77,122 | 77,122 | |||
Stock-based compensation | 40,573 | 40,573 | |||
Other comprehensive income (loss) | (1,021) | (1,021) | |||
Net loss | (106,231) | (106,231) | |||
Ending balance (in shares) at Mar. 31, 2022 | 56,234,000 | ||||
Ending balance at Mar. 31, 2022 | 863,361 | $ 0 | 1,580,620 | (475) | (716,784) |
Beginning balance (in shares) at Dec. 31, 2021 | 50,735,000 | ||||
Beginning balance at Dec. 31, 2021 | 626,178 | $ 0 | 1,281,931 | 363 | (656,116) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock in public offering, net of underwriting discounts and commissions and offering expenses (in shares) | 5,227,000 | ||||
Issuance of common stock in public offering, net of underwriting discounts and commissions and offering expenses | 269,818 | 269,818 | |||
Vesting of restricted stock units (in shares) | 100,000 | ||||
Exercise of stock options (in shares) | 100,000 | ||||
Exercise of stock options | 896 | 896 | |||
Issuance of shares under the employee stock purchase plan (in shares) | 50,000 | ||||
Issuance of shares under the employee stock purchase plan | 2,395 | 2,395 | |||
Repurchases of common stock for income tax withholding (in shares) | (38,000) | ||||
Repurchases of common stock for income tax withholding | (1,493) | (1,493) | |||
Issuance of shares from business acquisition (in shares) | 60,000 | ||||
Issuance of shares from business acquisition | 4,608 | 4,608 | |||
Stock-based compensation | 22,465 | 22,465 | |||
Other comprehensive income (loss) | (838) | (838) | |||
Net loss | (60,668) | (60,668) | |||
Ending balance (in shares) at Mar. 31, 2022 | 56,234,000 | ||||
Ending balance at Mar. 31, 2022 | $ 863,361 | $ 0 | 1,580,620 | (475) | (716,784) |
Beginning balance (in shares) at Sep. 30, 2022 | 56,523,000 | 56,523,000 | |||
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) | 322,000 | ||||
Exercise of stock options (in shares) | 58,000 | 58,000 | |||
Exercise of stock options | $ 853 | 853 | |||
Issuance of shares under the employee stock purchase plan (in shares) | 132,000 | ||||
Issuance of shares under the employee stock purchase plan | 2,537 | 2,537 | |||
Repurchases of common stock for income tax withholding (in shares) | (102,000) | ||||
Repurchases of common stock for income tax withholding | (2,261) | (2,261) | |||
Issuance of shares from business acquisition (in shares) | 172,000 | ||||
Issuance of shares from business acquisition | 4,092 | 4,092 | |||
Stock-based compensation | 8,352 | 8,352 | |||
Other comprehensive income (loss) | 1,954 | 1,954 | |||
Net loss | $ (100,980) | (100,980) | |||
Ending balance (in shares) at Mar. 31, 2023 | 57,105,000 | 57,105,000 | |||
Ending balance at Mar. 31, 2023 | $ 703,932 | $ 0 | 1,633,217 | 111 | (929,396) |
Beginning balance (in shares) at Dec. 31, 2022 | 56,645,000 | ||||
Beginning balance at Dec. 31, 2022 | 746,325 | $ 0 | 1,617,174 | (609) | (870,240) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Vesting of restricted stock units (in shares) | 198,000 | ||||
Exercise of stock options (in shares) | 22,000 | ||||
Exercise of stock options | 250 | 250 | |||
Issuance of shares under the employee stock purchase plan (in shares) | 132,000 | ||||
Issuance of shares under the employee stock purchase plan | 2,537 | 2,537 | |||
Repurchases of common stock for income tax withholding (in shares) | (64,000) | ||||
Repurchases of common stock for income tax withholding | (1,262) | (1,262) | |||
Issuance of shares from business acquisition (in shares) | 172,000 | ||||
Issuance of shares from business acquisition | 4,092 | 4,092 | |||
Stock-based compensation | 10,426 | 10,426 | |||
Other comprehensive income (loss) | 720 | 720 | |||
Net loss | $ (59,156) | (59,156) | |||
Ending balance (in shares) at Mar. 31, 2023 | 57,105,000 | 57,105,000 | |||
Ending balance at Mar. 31, 2023 | $ 703,932 | $ 0 | $ 1,633,217 | $ 111 | $ (929,396) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders’ Equity (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Net of underwriting discounts, commissions and offering expenses | $ 17,682 | $ 17,682 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (100,980) | $ (106,231) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 12,320 | 7,118 |
Deferred tax liability | 0 | (11,045) |
Non-cash lease expense | 586 | 1,609 |
Stock-based compensation | 7,934 | 40,573 |
Change in fair value of acquisition consideration | (5,331) | (8,840) |
Other non cash adjustments | 578 | 687 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (8,050) | (3,845) |
Inventories | (606) | (12,787) |
Prepaid expenses and other current assets | (1,591) | (1,407) |
Other non-current assets | 1,206 | 3,873 |
Accounts payable | (4,211) | (762) |
Accrued expenses | 2,893 | 1,885 |
Accrued compensation | (2,702) | (653) |
Other liabilities | (404) | 832 |
Net cash used in operating activities | (98,358) | (88,993) |
Cash flows from investing activities | ||
Purchases of property and equipment | (20,877) | (44,753) |
Business acquisition, net of cash acquired | 0 | (8,160) |
Purchases of investments | (50,434) | (217,639) |
Proceeds from maturity of investments | 105,500 | 30,676 |
Net cash from (used in) investing activities | 34,189 | (239,876) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 855 | 4,000 |
Proceeds from public offerings, net of underwriting discounts, commissions and offering expenses | 0 | 269,818 |
Proceeds from issuance of common stock under employee stock purchase plan | 2,536 | 2,395 |
Repayments of long-term debt | 0 | (1,558) |
Repurchases of common stock for income tax withholding | (2,261) | (4,050) |
Net cash from financing activities | 1,130 | 270,605 |
Effect of exchange rates on cash, cash equivalents and restricted cash | 341 | 104 |
Net decrease in cash, cash equivalents, and restricted cash | (62,698) | (58,160) |
Cash, cash equivalents, and restricted cash at beginning of period | 380,259 | 467,359 |
Cash, cash equivalents, and restricted cash at end of period | 317,561 | 409,199 |
Supplemental disclosure of cash flow information | ||
Interest paid | 0 | 9 |
Income taxes paid, net of refunds | 137 | 130 |
Non-cash investing and financing activities | ||
Property and equipment additions included in accounts payable and accrued expenses | 1,747 | 8,737 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 0 | 19,494 |
Issuance of common stock in connection with the business acquisition | $ 4,092 | $ 77,122 |
The Company
The Company | 6 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023, the Company had an accumulated deficit of $929.4 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 in its public offerings 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 and six months ended March 31, 2023, 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 | 6 Months Ended |
Mar. 31, 2023 | |
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 and six months ended March 31, 2023 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) March 31, September 30, Cash and cash equivalents $ 315,196 $ 378,687 Restricted cash, non-current 2,365 1,572 Total cash, cash equivalents and restricted cash $ 317,561 $ 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. Revenue The Company had contract assets of $3.9 million and contract liabilities of $1.9 million as of March 31, 2023. The Company had contract assets of $3.4 million and contract liabilities of $3.5 million as of September 30, 2022. For the three and six months ended March 31, 2023, the Company recognized revenue of $1.4 million and $2.7 million, respectively, from the amount that was included in the contract liability balance at the beginning of each period. For the three and six months ended March 31, 2022, the Company's revenue from the amount that was included in the contract liability balance at the beginning of each period was not material. In addition, for all periods presented, there was no revenue recognized in a reporting period from performance obligations satisfied in previous periods. The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied as of March 31, 2023 was $7.7 million. The Company expects to recognize revenue over the next twelve months relating to performance obligations unsatisfied as of March 31, 2023. Based on the nature of our contracts with customers, which are recognized over a term of less than 12 months, we have elected to use the practical expedient whereby costs to obtain a contract are expensed as they are incurred. We state our revenues net of any taxes collected from customers that are required to be remitted to various government agencies. The amount of taxes collected from customers and payable to governmental entities is included on the balance sheet as part of “Accrued expenses and other current liabilities.” 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 March 31, 2023. 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 |
Fair value measurement
Fair value measurement | 6 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023: (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 315,196 $ — $ — $ 315,196 Short-term investments: Corporate bonds 33,359 — (23) 33,336 U.S. government treasury bills 38,992 134 — 39,126 Total $ 387,547 $ 134 $ (23) $ 387,658 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 March 31, 2023, 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 $ 217,513 $ — $ — $ 217,513 Corporate bonds — 33,336 — 33,336 U.S. government treasury bills 39,126 — — 39,126 Total financial assets $ 256,639 $ 33,336 $ — $ 289,975 Liabilities Indemnity holdback $ — $ 2,172 $ — $ 2,172 Total financial liabilities $ — $ 2,172 $ — $ 2,172 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 March 31, 2023, were less than 12 months. The unrealized loss on short-term investments have been in a continuous unrealized loss position for less than 12 months. We believe that the decline in value of these investments is temporary and is primarily related to the change in market interest rates since purchase. We believe it is more likely than not that we will be able to hold these investments to maturity. As of March 31, 2023, 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 six months ended March 31, 2023: (in thousands) Total Balance as of September 30, 2022 $ 2,100 Change in fair value (2,100) Balance as of March 31, 2023 $ — |
Balance sheet components
Balance sheet components | 6 Months Ended |
Mar. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance sheet components | Balance sheet components The Company’s accounts receivable, net balance consists of the following: (in thousands) March 31, September 30, Trade receivables $ 43,202 $ 35,706 Other receivables 5,314 4,822 Allowance for doubtful accounts (329) (234) Accounts receivable, net $ 48,187 $ 40,294 Inventories consist of the following: (in thousands) March 31, September 30, Raw materials $ 33,628 $ 28,787 Work-in-process 1,006 2,866 Finished goods 5,289 7,654 $ 39,923 $ 39,307 Property and Equipment, net consists of the following: (in thousands) March 31, September 30, Laboratory equipment $ 98,149 $ 62,285 Furniture, fixtures and other equipment 2,480 2,332 Computer equipment 2,922 2,814 Computer software 2,854 1,693 Leasehold improvements 59,356 14,371 Construction in progress 22,151 87,723 $ 187,912 $ 171,218 Less: Accumulated depreciation and amortization (41,373) (31,777) $ 146,539 $ 139,441 Construction in progress mainly represents equipment costs relating to the Wilsonville facility and software development costs. Other current liabilities The other current liabilities consist of the following: (in thousands) March 31, September 30, Indemnity holdbacks $ 2,172 $ 9,592 Income and sales taxes payable 5,193 3,661 Deferred revenue 1,944 3,476 Contingent consideration — 2,100 Other current liabilities 731 908 $ 10,040 $ 19,737 |
Goodwill and intangible assets
Goodwill and intangible assets | 6 Months Ended |
Mar. 31, 2023 | |
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 six months ended March 31, 2023. Total amortization expense related to finite-lived intangible assets was $1.3 million for the three months ended March 31, 2023 and $1.4 million for the three months ended March 31, 2022. Total amortization expense related to finite-lived intangible assets was $2.7 million for the six months ended March 31, 2023 and $2.3 million for the six months ended March 31, 2022. The goodwill balance is presented below: (in thousands) March 31, 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: March 31, 2023 (in thousands, except for years) Weighted average Gross Accumulated Net book Developed Technology 15 $ 50,020 $ (6,005) $ 44,015 Customer Relationships 11 15,210 (2,657) 12,553 Tradenames & Trademarks 3 900 (400) 500 Total finite-lived intangible assets $ 66,130 $ (9,062) $ 57,068 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 | 6 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Legal 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 Company securities during an alleged class period that began on December 13, 2019 and ended on November 14, 2022, 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. The Company 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 March 31, 2023 is as follows: (in thousands) March 31, Assets: Operating lease right-of-use asset $ 70,669 Current liabilities: Current portion of operating lease liabilities $ 13,396 Noncurrent liabilities: Operating lease liabilities, net of current portion $ 77,824 Future minimum lease payments under all non-cancelable operating leases that have commenced as of March 31, 2023 are as follows: (in thousands) Operating Years ending September 30: Remainder of 2023 $ 7,480 2024 14,194 2025 14,066 2026 12,609 2027 7,265 Thereafter 90,968 Total minimum lease payments $ 146,582 Less: imputed interest (55,362) Total operating lease liabilities $ 91,220 Less: current portion (13,396) Operating lease liabilities, net of current portion $ 77,824 The statement of cash flows for the six months ended March 31, 2023, include changes in right-of-use assets and operating lease liabilities of $4.3 million and $3.7 million, respectively. For the six months ended March 31, 2022, changes in right-of-use assets and operating lease liabilities were $16.6 million and $18.2 million, respectively. During the three and six months ended March 31, 2023, operating lease expense was $4.1 million and $8.2 million, respectively. Cash payments for amounts included in the measurement of operating lease liabilities were $4.0 million and $7.6 million for the three and six months ended March 31, 2023, respectively. During the three and six months ended March 31, 2022, operating lease expense was $3.9 million and $7.4 million, respectively. Cash payments for amounts included in the measurement of operating lease liabilities were $3.2 million and $6.0 million for the three and six months ended March 31, 2022, respectively. As of March 31, 2023, 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 | 6 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactionsDuring the three months ended March 31, 2023 and 2022, the Company purchased raw materials from a related party in the amount of $1.5 million and $1.7 million, respectively. During the six months ended March 31, 2023 and 2022, the purchases of raw materials from a related party were $3.5 million and $3.4 million, respectively. During the three and six months ended March 31, 2023, the Company recognized revenues from related parties in the amount of $2.2 million and $2.6 million, respectively. The revenues from related parties were immaterial for the three and six months ended March 31, 2022. Payable balances and receivable balances with the related party were immaterial as of March 31, 2023 and 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 | 6 Months Ended |
Mar. 31, 2023 | |
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 and six months ended March 31, 2023, the Company recorded provisions for income taxes of $0.7 million and $0.8 million, respectively. For the three and six months ended March 31, 2022, the Company recorded $0.1 million and $10.6 million, respectively, of income tax benefit due to the deferred tax liability assumed as part of a business acquisition. |
Common stock
Common stock | 6 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Common stock | Common stockAs of March 31, 2023, 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 | 6 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based compensation | Stock-based compensation The Company grants 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 recognizes 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 recognizes 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 six months ended March 31, 2023 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 851 27.36 Vested/Issued (290) 59.99 Forfeited (290) 77.74 Nonvested shares at March 31, 2023 1,837 $ 48.58 As of March 31, 2023, there was $82.0 million of total unrecognized compensation cost related to these awards that is expected to be recognized over a weighted average period of 2.8 years. The total grant date fair value of RSUs awarded during the six months ended March 31, 2023 was $23.3 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 Company executives will vest upon achievement of revenue and gross profit metrics as determined by the board of directors, 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 Company executives and employees, PSUs generally vest over a one one Activity under the PSUs during the six months ended March 31, 2023 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 480 28.14 Vested/Issued (18) 51.08 Forfeited (196) 84.83 Nonvested at March 31, 2023 795 $ 47.87 As of March 31, 2023, the maximum unrecognized compensation costs related to these awards was $27.0 million, based on 150% achievement of the performance target. 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 six months ended March 31, 2023 was $13.5 million. Options Stock options are generally granted to employees and were granted to non-employee directors until fiscal year 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 March 31, 2023 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 six months ended March 31, 2023 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 (71) 35.15 — — Exercised (58) 14.86 — 639 Outstanding at March 31, 2023 2,324 $ 24.59 5.78 $ 4,250 Nonvested at March 31, 2023 290 36.46 6.74 100 Exercisable 2,034 $ 22.90 5.65 $ 4,150 As of March 31, 2023, the unrecognized compensation costs related to these awards was $6.7 million. The Company expects to recognize those costs over a weighted average period of 1.1 years. Performance-Based 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 in fiscal year 2022 by executive officers and senior level employees was calculated based on the achievement of a certain total revenue threshold during the fiscal year ended September 30, 2022. The percentage of performance stock options that vest depends 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. For fiscal year 2022, the achievement was determined to be 150%. 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 a 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 March 31, 2023, 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 six months ended March 31, 2023 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 March 31, 2023 56 $ 31.29 9.07 $ — Exercisable at March 31, 2023 256 67.95 7.56 — Outstanding at March 31, 2023 312 $ 61.35 7.83 $ — As of March 31, 2023, the unrecognized compensation costs related to these awards was $0.6 million. The Company expects to recognize those costs over a weighted average period of 1.4 years. Total stock-based compensation (credit)/expense recognized was as follows: Three months ended Six months ended (in thousands) 2023 2022 2023 2022 Cost of revenues $ 1,469 $ 1,241 $ 2,612 $ 2,119 Research and development 3,090 4,838 7,508 8,865 Selling, general and administrative 5,700 16,258 (2,186) 29,421 Total stock-based compensation $ 10,259 $ 22,337 $ 7,934 $ 40,405 During the three and six months ended March 31, 2023, stock-based compensation was decreased primarily due to departing employee share forfeitures and because a revenue target associated with the performance based awards was not met. 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 and six months ended March 31, 2023. The balance sheet as of March 31, 2023 includes $1.1 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 March 31, 2023 was as follows: (In thousands) Shares Reserved at September 30, 2022 507 Additional shares authorized 249 Shares issued during the period (132) Reserved at March 31, 2023 624 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 and six months ended March 31, 2023 and 2022, 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 and $1.4 million for the three and six months ended March 31, 2023, respectively. Abveris Acquisition |
Net loss per share attributable
Net loss per share attributable to common stockholders | 6 Months Ended |
Mar. 31, 2023 | |
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 Six months ended (in thousands, except per share data) 2023 2022 2023 2022 Numerator: Net loss attributable to common stockholders $ (59,156) $ (60,668) $ (100,980) $ (106,231) Denominator: Weighted average shares used in computing net loss per share, basic and diluted 56,777 53,472 56,608 51,673 Net loss per share attributable to common stockholders, basic and diluted $ (1.04) $ (1.13) $ (1.78) $ (2.06) 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 and six months ended March 31, (in thousands) 2023 2022 Shares subject to options to purchase common stock 2,636 3,145 Unvested restricted stock units and performance stock units 2,632 1,626 Unvested shares of common stock issued upon early exercise of stock options — 694 Shares subject to employee stock purchase plan 135 50 Total 5,403 5,515 |
Geographic, product and industr
Geographic, product and industry information | 6 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Geographic, product and industry information | Geographic, product and industry informationThe 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 Six months ended (in thousands) 2023 2022 2023 2022 Americas $ 34,925 $ 28,458 $ 68,571 $ 51,839 EMEA 18,780 15,204 35,111 29,725 APAC 6,475 4,465 10,741 8,581 Total $ 60,180 $ 48,127 $ 114,423 $ 90,145 The table below sets forth revenues by products. Three months ended Six months ended (in thousands) 2023 2022 2023 2022 Synthetic genes $ 18,011 $ 14,163 $ 34,186 $ 27,688 Oligo pools 3,315 2,308 7,015 5,496 DNA libraries 2,826 1,967 4,662 3,228 Antibody discovery 7,034 6,587 15,205 11,400 NGS tools 28,994 23,102 53,355 42,333 Total $ 60,180 $ 48,127 $ 114,423 $ 90,145 The table below sets forth revenues by industry. Three months ended Six months ended (in thousands) 2023 2022 2023 2022 Industrial chemicals/materials $ 14,410 $ 14,082 $ 27,985 $ 26,800 Academic research 11,120 9,485 21,135 17,372 Healthcare 33,764 24,111 63,777 44,971 Food/agricultural 886 449 1,526 1,002 Total $ 60,180 $ 48,127 $ 114,423 $ 90,145 |
Business acquisition
Business acquisition | 6 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business acquisition | Business acquisition On 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, options to purchase up to 15,304 shares 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 represented up to 3,416 shares of the Company’s stock, options to purchase up to 408 shares 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 six months ended March 31, 2023, the adjustment holdback liability was settled by transferring 538 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. At the conclusion of the measurement period 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 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 holdback balances from acquisition date to March 31, 2023: (in thousands) Contingent Holdback 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) (2,921) (5,021) Balance at March 31, 2023 $ — $ 2,172 $ 2,172 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 March 31, 2023. For the six months ended March 31, 2023, the Company recognized a gain of $5.0 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 indemnity holdback condition specified in the iGenomX acquisition agreement had been met, 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. |
Subsequent events
Subsequent events | 6 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events 2023 Restructuring Plan On May 3, 2023, the Company’s Board of Directors approved a strategic restructuring plan to reduce costs, build a leaner organization and increase operating efficiencies. The restructuring plan includes a reduction in force affecting approximately 270 employees worldwide, representing approximately 25% of the Company’s total workforce. The reduction in force will be subject to local regulatory requirements. The Company expects the plan to be implemented beginning in the third quarter of fiscal year 2023 and be substantially completed by the end of fiscal year 2023. The Company expects to incur pre-tax charges of between $9 million and $11 million consisting of employee severance and related benefit costs. In addition, the Company expects that it may incur additional charges related to facility consolidation and asset impairments that it is currently not able to estimate. The Company’s estimates are subject to a number of assumptions, and actual results may materially differ. The Company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the restructuring plan. * * * * * |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 6 Months Ended |
Mar. 31, 2023 | |
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 and six months ended March 31, 2023 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. |
Revenue | Based on the nature of our contracts with customers, which are recognized over a term of less than 12 months, we have elected to use the practical expedient whereby costs to obtain a contract are expensed as they are incurred. We state our revenues net of any taxes collected from customers that are required to be remitted to various government agencies. The amount of taxes collected from customers and payable to governmental entities is included on the balance sheet as part of “Accrued expenses and other current liabilities.” |
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 March 31, 2023. 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 |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
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) March 31, September 30, Cash and cash equivalents $ 315,196 $ 378,687 Restricted cash, non-current 2,365 1,572 Total cash, cash equivalents and restricted cash $ 317,561 $ 380,259 |
Fair value measurement (Tables)
Fair value measurement (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023: (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 315,196 $ — $ — $ 315,196 Short-term investments: Corporate bonds 33,359 — (23) 33,336 U.S. government treasury bills 38,992 134 — 39,126 Total $ 387,547 $ 134 $ (23) $ 387,658 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 March 31, 2023: (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 315,196 $ — $ — $ 315,196 Short-term investments: Corporate bonds 33,359 — (23) 33,336 U.S. government treasury bills 38,992 134 — 39,126 Total $ 387,547 $ 134 $ (23) $ 387,658 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 March 31, 2023, 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 $ 217,513 $ — $ — $ 217,513 Corporate bonds — 33,336 — 33,336 U.S. government treasury bills 39,126 — — 39,126 Total financial assets $ 256,639 $ 33,336 $ — $ 289,975 Liabilities Indemnity holdback $ — $ 2,172 $ — $ 2,172 Total financial liabilities $ — $ 2,172 $ — $ 2,172 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 six months ended March 31, 2023: (in thousands) Total Balance as of September 30, 2022 $ 2,100 Change in fair value (2,100) Balance as of March 31, 2023 $ — |
Balance sheet components (Table
Balance sheet components (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of Accounts Receivable | The Company’s accounts receivable, net balance consists of the following: (in thousands) March 31, September 30, Trade receivables $ 43,202 $ 35,706 Other receivables 5,314 4,822 Allowance for doubtful accounts (329) (234) Accounts receivable, net $ 48,187 $ 40,294 |
Summary of Inventories | Inventories consist of the following: (in thousands) March 31, September 30, Raw materials $ 33,628 $ 28,787 Work-in-process 1,006 2,866 Finished goods 5,289 7,654 $ 39,923 $ 39,307 |
Summary of Property, Plant and Equipment | Property and Equipment, net consists of the following: (in thousands) March 31, September 30, Laboratory equipment $ 98,149 $ 62,285 Furniture, fixtures and other equipment 2,480 2,332 Computer equipment 2,922 2,814 Computer software 2,854 1,693 Leasehold improvements 59,356 14,371 Construction in progress 22,151 87,723 $ 187,912 $ 171,218 Less: Accumulated depreciation and amortization (41,373) (31,777) $ 146,539 $ 139,441 |
Summary of Other Current Liabilities | The other current liabilities consist of the following: (in thousands) March 31, September 30, Indemnity holdbacks $ 2,172 $ 9,592 Income and sales taxes payable 5,193 3,661 Deferred revenue 1,944 3,476 Contingent consideration — 2,100 Other current liabilities 731 908 $ 10,040 $ 19,737 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill balance | The goodwill balance is presented below: (in thousands) March 31, 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: March 31, 2023 (in thousands, except for years) Weighted average Gross Accumulated Net book Developed Technology 15 $ 50,020 $ (6,005) $ 44,015 Customer Relationships 11 15,210 (2,657) 12,553 Tradenames & Trademarks 3 900 (400) 500 Total finite-lived intangible assets $ 66,130 $ (9,062) $ 57,068 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) | 6 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 is as follows: (in thousands) March 31, Assets: Operating lease right-of-use asset $ 70,669 Current liabilities: Current portion of operating lease liabilities $ 13,396 Noncurrent liabilities: Operating lease liabilities, net of current portion $ 77,824 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under all non-cancelable operating leases that have commenced as of March 31, 2023 are as follows: (in thousands) Operating Years ending September 30: Remainder of 2023 $ 7,480 2024 14,194 2025 14,066 2026 12,609 2027 7,265 Thereafter 90,968 Total minimum lease payments $ 146,582 Less: imputed interest (55,362) Total operating lease liabilities $ 91,220 Less: current portion (13,396) Operating lease liabilities, net of current portion $ 77,824 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | Activity with respect to the Company’s restricted stock units during the six months ended March 31, 2023 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 851 27.36 Vested/Issued (290) 59.99 Forfeited (290) 77.74 Nonvested shares at March 31, 2023 1,837 $ 48.58 |
Schedule of Nonvested Performance-based Units Activity | Activity under the PSUs during the six months ended March 31, 2023 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 480 28.14 Vested/Issued (18) 51.08 Forfeited (196) 84.83 Nonvested at March 31, 2023 795 $ 47.87 |
Schedule of Activity Under Option and Performance Stock Options | Options activity during the six months ended March 31, 2023 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 (71) 35.15 — — Exercised (58) 14.86 — 639 Outstanding at March 31, 2023 2,324 $ 24.59 5.78 $ 4,250 Nonvested at March 31, 2023 290 36.46 6.74 100 Exercisable 2,034 $ 22.90 5.65 $ 4,150 Activity under the PSOs during the six months ended March 31, 2023 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 March 31, 2023 56 $ 31.29 9.07 $ — Exercisable at March 31, 2023 256 67.95 7.56 — Outstanding at March 31, 2023 312 $ 61.35 7.83 $ — |
Schedule of Stock-Based Compensation Expenses | Total stock-based compensation (credit)/expense recognized was as follows: Three months ended Six months ended (in thousands) 2023 2022 2023 2022 Cost of revenues $ 1,469 $ 1,241 $ 2,612 $ 2,119 Research and development 3,090 4,838 7,508 8,865 Selling, general and administrative 5,700 16,258 (2,186) 29,421 Total stock-based compensation $ 10,259 $ 22,337 $ 7,934 $ 40,405 |
Summary of Stock Option Valuation Assumptions | The number of shares reserved for issuance at March 31, 2023 was as follows: (In thousands) Shares Reserved at September 30, 2022 507 Additional shares authorized 249 Shares issued during the period (132) Reserved at March 31, 2023 624 |
Net loss per share attributab_2
Net loss per share attributable to common stockholders (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
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 Six months ended (in thousands, except per share data) 2023 2022 2023 2022 Numerator: Net loss attributable to common stockholders $ (59,156) $ (60,668) $ (100,980) $ (106,231) Denominator: Weighted average shares used in computing net loss per share, basic and diluted 56,777 53,472 56,608 51,673 Net loss per share attributable to common stockholders, basic and diluted $ (1.04) $ (1.13) $ (1.78) $ (2.06) |
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 and six months ended March 31, (in thousands) 2023 2022 Shares subject to options to purchase common stock 2,636 3,145 Unvested restricted stock units and performance stock units 2,632 1,626 Unvested shares of common stock issued upon early exercise of stock options — 694 Shares subject to employee stock purchase plan 135 50 Total 5,403 5,515 |
Geographic, product and indus_2
Geographic, product and industry information (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
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 Six months ended (in thousands) 2023 2022 2023 2022 Americas $ 34,925 $ 28,458 $ 68,571 $ 51,839 EMEA 18,780 15,204 35,111 29,725 APAC 6,475 4,465 10,741 8,581 Total $ 60,180 $ 48,127 $ 114,423 $ 90,145 |
Summary of Revenue by Product | The table below sets forth revenues by products. Three months ended Six months ended (in thousands) 2023 2022 2023 2022 Synthetic genes $ 18,011 $ 14,163 $ 34,186 $ 27,688 Oligo pools 3,315 2,308 7,015 5,496 DNA libraries 2,826 1,967 4,662 3,228 Antibody discovery 7,034 6,587 15,205 11,400 NGS tools 28,994 23,102 53,355 42,333 Total $ 60,180 $ 48,127 $ 114,423 $ 90,145 |
Summary of Revenue by Industry | The table below sets forth revenues by industry. Three months ended Six months ended (in thousands) 2023 2022 2023 2022 Industrial chemicals/materials $ 14,410 $ 14,082 $ 27,985 $ 26,800 Academic research 11,120 9,485 21,135 17,372 Healthcare 33,764 24,111 63,777 44,971 Food/agricultural 886 449 1,526 1,002 Total $ 60,180 $ 48,127 $ 114,423 $ 90,145 |
Business acquisition (Tables)
Business acquisition (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
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 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 holdback balances from acquisition date to March 31, 2023: (in thousands) Contingent Holdback 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) (2,921) (5,021) Balance at March 31, 2023 $ — $ 2,172 $ 2,172 |
The Company (Details)
The Company (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2023 | Sep. 30, 2022 | |
Class of Warrant or Right [Line Items] | ||
Accumulated deficit | $ 929,396 | $ 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 | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 315,196 | $ 378,687 | ||
Restricted cash, non-current | 2,365 | 1,572 | ||
Total cash, cash equivalents and restricted cash | $ 317,561 | $ 380,259 | $ 409,199 | $ 467,359 |
Summary of significant accoun_5
Summary of significant accounting policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | |||
Contract with customer, asset, after allowance for credit loss | $ 3.9 | $ 3.9 | $ 3.4 |
Contract with customer, liability | 1.9 | 1.9 | $ 3.5 |
Contract with customer, liability, revenue recognized | 1.4 | 2.7 | |
Revenue, remaining performance obligation, amount | $ 7.7 | $ 7.7 |
Fair value measurement - Cash A
Fair value measurement - Cash And Cash Equivalents And Available For Sale Securities At Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 315,196 | $ 378,687 |
Amortized cost | 387,547 | 506,562 |
Gross unrealized gains | 134 | 0 |
Gross unrealized losses | (23) | (1,594) |
Cash and cash equivalents, fair value | 315,196 | 378,687 |
Fair value | 387,658 | 504,968 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short term investments, Amortized cost | 33,359 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (23) | |
Short term investments, fair value | 33,336 | |
U.S. government treasury bills | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short term investments, Amortized cost | 38,992 | 112,878 |
Gross unrealized gains | 134 | 0 |
Gross unrealized losses | 0 | (1,594) |
Short term investments, fair value | $ 39,126 | 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 | Mar. 31, 2023 | Sep. 30, 2022 |
Assets | ||
Total financial assets | $ 315,196 | $ 378,687 |
Total financial assets | 289,975 | 443,086 |
Liabilities | ||
Contingent consideration and indemnity holdback | 2,172 | 11,692 |
Total financial liabilities | 2,172 | 11,692 |
U.S. government treasury bills | ||
Assets | ||
Short term investments, fair value | 39,126 | 111,284 |
Commercial paper | ||
Assets | ||
Short term investments, fair value | 14,997 | |
Money market funds | ||
Assets | ||
Total financial assets | 217,513 | 316,805 |
Corporate bonds | ||
Assets | ||
Total financial assets | 33,336 | |
Level 1 | ||
Assets | ||
Total financial assets | 256,639 | 428,089 |
Liabilities | ||
Contingent consideration and indemnity holdback | 0 | 0 |
Total financial liabilities | 0 | 0 |
Level 1 | U.S. government treasury bills | ||
Assets | ||
Short term investments, fair value | 39,126 | 111,284 |
Level 1 | Commercial paper | ||
Assets | ||
Short term investments, fair value | 0 | |
Level 1 | Money market funds | ||
Assets | ||
Total financial assets | 217,513 | 316,805 |
Level 1 | Corporate bonds | ||
Assets | ||
Total financial assets | 0 | |
Level 2 | ||
Assets | ||
Total financial assets | 33,336 | 14,997 |
Liabilities | ||
Contingent consideration and indemnity holdback | 2,172 | 9,592 |
Total financial liabilities | 2,172 | 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 | 33,336 | |
Level 3 | ||
Assets | ||
Total financial assets | 0 | 0 |
Liabilities | ||
Contingent consideration and indemnity 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 | 6 Months Ended | ||
Dec. 31, 2022 | Mar. 31, 2023 | Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, liability value | $ 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 | 6 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2023 | |
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 March 31, 2023 | $ 0 |
Balance sheet components - Rece
Balance sheet components - Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||
Trade receivables | $ 43,202 | $ 35,706 |
Other receivables | 5,314 | 4,822 |
Allowance for doubtful accounts | (329) | (234) |
Accounts receivable, net | $ 48,187 | $ 40,294 |
Balance sheet components - Inve
Balance sheet components - Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 33,628 | $ 28,787 |
Work-in-process | 1,006 | 2,866 |
Finished goods | 5,289 | 7,654 |
Total inventories | $ 39,923 | $ 39,307 |
Balance sheet components - Summ
Balance sheet components - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 187,912 | $ 171,218 |
Less: Accumulated depreciation and amortization | (41,373) | (31,777) |
Property and equipment, net | 146,539 | 139,441 |
Laboratory equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 98,149 | 62,285 |
Furniture, fixtures and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,480 | 2,332 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,922 | 2,814 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,854 | 1,693 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 59,356 | 14,371 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 22,151 | $ 87,723 |
Balance sheet components - Othe
Balance sheet components - Other current liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||
Indemnity holdbacks | $ 2,172 | $ 9,592 |
Income and sales taxes payable | 5,193 | 3,661 |
Deferred revenue | 1,944 | 3,476 |
Contingent consideration | 0 | 2,100 |
Other current liabilities | 731 | 908 |
Other current liabilities | $ 10,040 | $ 19,737 |
Goodwill and intangible asset_2
Goodwill and intangible assets - Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Total amortization expense related to intangible assets | $ 1.3 | $ 1.4 | $ 2.7 | $ 2.3 |
Goodwill and intangible asset_3
Goodwill and intangible assets - Summary of Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | 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 | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 66,130 | $ 66,130 |
Accumulated amortization | (9,062) | (6,392) |
Net book value | $ 57,068 | $ 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 | (6,005) | (4,375) |
Net book value | $ 44,015 | $ 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 | (2,657) | (1,767) |
Net book value | $ 12,553 | $ 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 | (400) | (250) |
Net book value | $ 500 | $ 650 |
Commitments and contingencies -
Commitments and contingencies - Operating Leases On Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Assets: | ||
Operating lease right-of-use assets | $ 70,669 | $ 74,948 |
Current liabilities: | ||
Current portion of operating lease liability | 13,396 | 13,642 |
Noncurrent liabilities: | ||
Operating lease liability, net of current portion | $ 77,824 | $ 81,270 |
Commitments and contingencies_2
Commitments and contingencies - Minimum Rental Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Remainder of 2023 | $ 7,480 | |
2024 | 14,194 | |
2025 | 14,066 | |
2026 | 12,609 | |
2027 | 7,265 | |
Thereafter | 90,968 | |
Total minimum lease payments | 146,582 | |
Less: imputed interest | (55,362) | |
Total operating lease liabilities | 91,220 | |
Less: current portion | (13,396) | $ (13,642) |
Operating lease liability, net of current portion | $ 77,824 | $ 81,270 |
Commitments and contingencies_3
Commitments and contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Change in right-of-use asset | $ 4.3 | $ 16.6 | ||
Change in operating lease liabilities | 3.7 | 18.2 | ||
Operating lease expense | $ 4.1 | $ 3.9 | 8.2 | 7.4 |
Operating lease payments | $ 4 | $ 3.2 | $ 7.6 | $ 6 |
Lease weighted-average remaining lease term | 15 years 10 months 24 days | 15 years 10 months 24 days | ||
Lease weighted average discount rate | 6.40% | 6.40% |
Related party transactions - (D
Related party transactions - (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |||||
Raw materials purchased from related party investor | $ 1.5 | $ 1.7 | $ 3.5 | $ 3.4 | |
Revenue from related parties | $ 2.2 | $ 0 | $ 2.6 | ||
Payable balances | $ 0 | ||||
Receivable balances | 0 | ||||
Related party consideration | $ 0.1 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Abx Biologics Inc. | ||||
Income Tax Contingency [Line Items] | ||||
Income tax benefit, due to deferred tax liability as part of business acquisition | $ 0.7 | $ 0.1 | $ 0.8 | $ 10.6 |
Common stock (Details)
Common stock (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | |
Feb. 28, 2022 USD ($) $ / shares shares | Mar. 31, 2023 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 Millions | 3 Months Ended | 6 Months Ended | ||||
Dec. 01, 2021 | Sep. 26, 2018 shares | Mar. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) shares | Sep. 30, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost, options | $ 6.7 | $ 6.7 | ||||
Aggregate number of common stock shares reserved for issuance (in shares) | shares | 624,000 | 624,000 | 507,000 | |||
Employer matching percentage | 50% | |||||
Percentage of employee's gross pay matched | 6% | |||||
Employer matching contributions | $ 0.7 | $ 1.4 | ||||
Abveris | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 2 years | |||||
Share-based payment arrangement, expense (credit) | $ 9.9 | |||||
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 | 82 | $ 82 | ||||
Recognize cost weighted average period | 2 years 9 months 18 days | |||||
Grant date fair value | $ 23.3 | |||||
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 | $ 27 | $ 27 | ||||
Achievement of performance target, percent | 150% | 150% | ||||
Recognize cost weighted average period | 1 year 7 months 6 days | |||||
Grant date fair value | $ 13.5 | |||||
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 | 1 year 1 month 6 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 4 months 24 days | |||||
Award term | 10 years | |||||
Unrecognized compensation cost, options | $ 0.6 | $ 0.6 | ||||
Performance Stock Options | Executive Officers and Senior Level Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 2 years | |||||
Percentage of PSUs that may vest based on performance | 150% | |||||
Vest outstanding (in shares) | shares | 56,250 | 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 | $ 1.1 | $ 1.1 | ||||
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 | 6 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Restricted Stock Unit | |
Number of Shares | |
Beginning balance (in shares) | shares | 1,566 |
Granted (in shares) | shares | 851 |
Vested/Issued (in shares) | shares | (290) |
Forfeited (in shares) | shares | (290) |
Ending balance (in shares) | shares | 1,837 |
Weighted average grant date fair value per share | |
Beginning balance (in usd per share) | $ / shares | $ 67.66 |
Granted (in usd per share) | $ / shares | 27.36 |
Vested (in usd per share) | $ / shares | 59.99 |
Forfeited (in usd per share) | $ / shares | 77.74 |
Ending balance (in usd per share) | $ / shares | $ 48.58 |
Performance Stock Unit | |
Number of Shares | |
Beginning balance (in shares) | shares | 529 |
Granted (in shares) | shares | 480 |
Vested/Issued (in shares) | shares | (18) |
Forfeited (in shares) | shares | (196) |
Ending balance (in shares) | shares | 795 |
Weighted average grant date fair value per share | |
Beginning balance (in usd per share) | $ / shares | $ 79.60 |
Granted (in usd per share) | $ / shares | 28.14 |
Vested (in usd per share) | $ / shares | 51.08 |
Forfeited (in usd per share) | $ / shares | 84.83 |
Ending balance (in usd per share) | $ / shares | $ 47.87 |
Stock-based compensation expe_2
Stock-based compensation expense - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | |
Shares | ||
Beginning balance (in shares) | shares | 2,453,000 | |
Granted (in shares) | shares | 0 | |
Forfeited (in shares) | shares | (71,000) | |
Exercised (in shares) | shares | (58,000) | |
Ending balance (in shares) | shares | 2,324,000 | 2,453,000 |
Number of options, Nonvested at December 31, 2022 (in shares) | shares | 290,000 | |
Number of options, Exercisable (in shares) | shares | 2,034,000 | |
Weighted average exercise price per share | ||
Beginning balance (in usd per share) | $ / shares | $ 24.67 | |
Granted (in usd per share) | $ / shares | 0 | |
Forfeited (in usd per share) | $ / shares | 35.15 | |
Exercised (in dollars per share) | $ / shares | 14.86 | |
Ending balance (in usd per share) | $ / shares | 24.59 | $ 24.67 |
Weighted average exercise price per share, Nonvested at December 31, 2022 (in dollars per share) | $ / shares | 36.46 | |
Vested and exercisable (in usd per share) | $ / shares | $ 22.90 | |
Weighted average remaining contractual term (years) | ||
Outstanding | 5 years 9 months 10 days | 6 years 3 months 29 days |
Weighted average remaining contractual term (years), Nonvested at December 31, 2022 | 6 years 8 months 26 days | |
Weighted average remaining contractual term (years), Exercisable | 5 years 7 months 24 days | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value, outstanding beginning balance | $ | $ 33,447 | |
Exercised | $ | 639 | |
Aggregate intrinsic value, outstanding ending balance | $ | 4,250 | $ 33,447 |
Aggregate intrinsic value, nonvested | $ | 100 | |
Aggregate intrinsic value, Vested and exercisable | $ | $ 4,150 | |
Performance Stock Options | ||
Shares | ||
Beginning balance (in shares) | shares | 312,000 | |
Vested (in shares) | shares | (237,000) | |
Ending balance (in shares) | shares | 312,000 | 312,000 |
Number of options, Nonvested at December 31, 2022 (in shares) | shares | 56,000 | 293,000 |
Number of options, Exercisable (in shares) | shares | 256,000 | 19,000 |
Weighted average exercise price per share | ||
Beginning balance (in usd per share) | $ / shares | $ 61.35 | |
Vested (in usd per share) | $ / shares | 70.84 | |
Ending balance (in usd per share) | $ / shares | 61.35 | $ 61.35 |
Weighted average exercise price per share, Nonvested at December 31, 2022 (in dollars per share) | $ / shares | 31.29 | 63.27 |
Vested and exercisable (in usd per share) | $ / shares | $ 67.95 | $ 31.29 |
Weighted average remaining contractual term (years) | ||
Outstanding | 7 years 9 months 29 days | 8 years 3 months 29 days |
Weighted average remaining contractual term (years), Nonvested at December 31, 2022 | 9 years 25 days | 8 years 3 months |
Weighted average remaining contractual term (years), Exercisable | 7 years 6 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 | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 10,259 | $ 22,337 | $ 7,934 | $ 40,405 |
Cost of revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | 1,469 | 1,241 | 2,612 | 2,119 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | 3,090 | 4,838 | 7,508 | 8,865 |
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 5,700 | $ 16,258 | $ (2,186) | $ 29,421 |
Stock-based compensation - Rese
Stock-based compensation - Reserved For Issuance (Details) shares in Thousands | 6 Months Ended |
Mar. 31, 2023 shares | |
Share-Based Compensation Arrangement By Share-based Payment Award, Outstanding [Roll Forward] | |
Beginning balance (in shares) | 507 |
Additional shares authorized (in shares) | 249 |
Shares issued during the period (in shares) | (132) |
Ending balance (in shares) | 624 |
Stock-based compensation - Abve
Stock-based compensation - Abveris Acquisition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 01, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation expense (reduction) | $ 10,259 | $ 22,337 | $ 7,934 | $ 40,405 | ||
Abveris | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards aggregate fair value | $ 20,100 | |||||
Vesting period | 2 years | |||||
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 | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||||
Net loss attributable to common stockholders | $ (59,156) | $ (60,668) | $ (100,980) | $ (106,231) |
Denominator: | ||||
Weighted average shares used in computing net loss per share, basic (in shares) | 56,777 | 53,472 | 56,608 | 51,673 |
Weighted average shares used in computing net loss per share, diluted (in shares) | 56,777 | 53,472 | 56,608 | 51,673 |
Net loss per share attributable to common stockholders—basic (in usd per share) | $ (1.04) | $ (1.13) | $ (1.78) | $ (2.06) |
Net loss per share attributable to common stockholders, diluted (in usd per share) | $ (1.04) | $ (1.13) | $ (1.78) | $ (2.06) |
Net loss per share attributab_4
Net loss per share attributable to common stockholders - Anti-dilutive (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 5,403 | 5,515 | 5,403 | 5,515 |
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) | 2,636 | 3,145 | 2,636 | 3,145 |
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) | 2,632 | 1,626 | ||
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 | 694 | ||
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) | 135 | 50 |
Geographic, product and indus_3
Geographic, product and industry information - Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 60,180 | $ 48,127 | $ 114,423 | $ 90,145 |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 34,925 | 28,458 | 68,571 | 51,839 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 18,780 | 15,204 | 35,111 | 29,725 |
APAC | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 6,475 | $ 4,465 | $ 10,741 | $ 8,581 |
Geographic, product and indus_4
Geographic, product and industry information - By Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 60,180 | $ 48,127 | $ 114,423 | $ 90,145 |
Synthetic genes | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 18,011 | 14,163 | 34,186 | 27,688 |
Oligo pools | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,315 | 2,308 | 7,015 | 5,496 |
DNA libraries | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,826 | 1,967 | 4,662 | 3,228 |
Antibody discovery | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 7,034 | 6,587 | 15,205 | 11,400 |
NGS tools | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 28,994 | $ 23,102 | $ 53,355 | $ 42,333 |
Geographic, product and indus_5
Geographic, product and industry information - By Industry (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 60,180 | $ 48,127 | $ 114,423 | $ 90,145 |
Industrial chemicals/materials | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 14,410 | 14,082 | 27,985 | 26,800 |
Academic research | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 11,120 | 9,485 | 21,135 | 17,372 |
Healthcare | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 33,764 | 24,111 | 63,777 | 44,971 |
Food/agricultural | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 886 | $ 449 | $ 1,526 | $ 1,002 |
Business acquisition - Narrativ
Business acquisition - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 10 Months Ended | ||||
Dec. 01, 2021 | Jan. 31, 2023 | Dec. 31, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | 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 | 538 | |||||
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 | $ 5,021 | $ 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 | $ 4,100 | $ 4,600 | ||||
Contingent consideration (in shares) | 171,551 | 59,190 |
Business acquisition - Assets a
Business acquisition - Assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands | Dec. 01, 2021 | Mar. 31, 2023 | 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 | 6 Months Ended | 10 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Business Combination, Contingent Consideration Arrangements, Change In Amount Of Contingent Consideration, Liability [Roll Forward] | ||
Beginning balance | $ 11,692 | |
Ending balance | 2,172 | $ 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 | (5,021) | (13,471) |
Ending balance | 2,172 | 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 |
Holdback | 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 | (2,921) | (7,071) |
Ending balance | $ 2,172 | $ 5,093 |
Subsequent events (Details)
Subsequent events (Details) - 2023 Restructuring Plan $ in Millions | 12 Months Ended | |
May 03, 2023 USD ($) employee | Sep. 30, 2023 | |
Forecast | ||
Subsequent Event [Line Items] | ||
Restructuring and related cost, number of positions eliminated, period percent | 25% | |
Subsequent events | ||
Subsequent Event [Line Items] | ||
Restructuring and related cost, expected number of positions eliminated | employee | 270 | |
Subsequent events | Minimum | ||
Subsequent Event [Line Items] | ||
Restructuring and related cost, expected cost | $ 9 | |
Subsequent events | Maximum | ||
Subsequent Event [Line Items] | ||
Restructuring and related cost, expected cost | $ 11 |