TWST - Earnings call transcript Q4 2019 | Twist Bioscience Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Fiscal 2019 Fourth Quarter and Full Year Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions].

I would now like to hand the conference over to your speaker today, Jim Thorburn, Chief Financial Officer. Thank you and please go ahead, sir.

Jim Thorburn

right. All Chris. you, Thank and conference for fiscal call full-year business quarter everyone for XXXX us Twist and progress. and results Bioscience to financial thank afternoon joining you today fourth Good review our we release website our press the www.twistbioscience.com. review issued today, available at which earlier at is Please

Emily of of report on me and overall milestones operational Twist I will Co-Founder progress our upcoming is will financial begin performance Leproust, CEO Dr. on discuss With Emily Emily with on and and call and today's our Twist. will a review businesses. direction.

call then open for will We the up questions.

is As a website reminder, recorded. week. portion this the one of for call will in be our Investor available section being archived audio be will and The

federal securities presentation, laws. within today's During make the forward-looking we'll statements of the meaning

relate future performance. or generally statements financial events future to operating or Forward-looking

fully of more And disclaim in based described statements, forward-looking this by any information those to required are law. Our our actual us, the Securities filings regarding beliefs results that financial those release periods materialize matters hereof. and and in today, the to subject not forward-looking results we Exchange presentation could as those well on to update differ These any and available statements the with date Commission. press as issued as The may uncertainties in expectations and earlier obligation risks from risks we to include projected. are set cause forth except and actual these materially as

Co-Founder, that Emily over our Leproust. With to Chief Executive turn now Dr. Officer and I will call the

Emily Leproust

everyone. Thank you, afternoon Jim and good

revenue provided one year-end the in doubled the call. over $XX.X than record shipped We XXXX substantially X,XXX of million, XXXX. guidance We ago of more more more reported was $XX.X to period the XXX year in our fiscal execution. than year approximately on than fiscal XXXX initial and Fiscal our in our similar million innovation XXXX customers compared to revenues product and for continued

$XX.X versus in booked In addition, million million last we orders, $XX year.

We growth growth which And Synthetic a NGS. and the goal Biology were reported steady positive margin for in year, tremendous model. in growth accomplished we business our validates exceptional

to Our generating silicon-based only businesses, opportunities. DNA platform and data advantages, DNA our not vertical writing storage in provide in our significant but continues market biopharma also revenue

in to excellent and will this you our due two like fiscal insight for growth and XXXX would success year, execution. some highlight Our I was factors, our future our products into key businesses. commercial to of the the accomplishments give

XX,XXX which fourth in products XX,XXX of the XXXX. of excellent are unique quarter shipped scale tail shipped reach This Synbio, are and all in long X.Xx, the to purchase more the the incredible XXXX, in year fiscal genes our were with the to that of In full compared which we we Beginning quarter XXX,XXX starting number about fourth smaller about sequences. we XXXX, is genes, than the XX%, of about indicating of in received market. in customers by size we orders

but and key still products we billion To well more over market. these bases, products. year, That introduced we of DNA, Synbio lot capacity. a as future course we gene pools is NGS libraries a the of drive X delivered oligo fragments, as Even several importantly, in include of the variant fraction our the if numbers

as used commercial and storage At which research, synthesis. demonstrate exceptional is well up XXX rate This to for continues applications. that the pools. X product the XXXX the we boundaries oligo and innovation, possible oligonucleotides our editing of introduced as bases in in of an error be bases, bases longest long up XXX and launched is Leveraging ability offering we to an what to we data commitments have gene further can to push oligo believe for genes to length, Xkb we long our in product

been have of our R&D, oligos long always continued science. commitment investment frontier complacent, remain and possible genes advancing our agile, the long in because never to of Both

Synbio inroads market, still made into have only incredible have but We share. about we the XX% market

So, the we of are surface what's only possible. scratching

XXXX, customers product will line ahead and DNA. to companies continue serve we to look quantities we allow our larger introduce meet needs plan current of to we we extensions will require believe into that large the pharmaceutical As us that of

believe both market the new In gene customer present adopted addition, to acquisition, long a growth areas market. that opportunities relationships even current from will continuing tail shares market be believe introduce to product take will of competitors. more our by and of we our these fragments widely we the in extending customer allow We

we Targeted customers and with these now a of the quarter products in take enrichment target fourth to Genomics shipped NGS, the to For growth like to I'd XX reflect production. NGS of the of XXXX, in our customers, the business. on fiscal minute XXX

in DNA In our of February with $XX revenue revenues to rapidly XXXX, have about we within fiscal reported year, we XXXX. single started million probes million enrichment offering kit. a and in $X target scaled Last a

not with workflows, be a research. sequencing Today, that both two our commercial integrated multiple product can years standard launch, for yet have offering NGS we after customers robust and

other high revenue our verified products, potential exponential customers. by the quality Our now sharing are data helping who [indiscernible] of and reflects us their enthusiastically scientists, growth convince

our technology needs analyze competitors. provide innovated applied better product Our then to and we the not and than success is silicon our entrants an accident, market a

Mouse this support year Beyond offerings, which and of we panel, introduced Mitochondrial our new clinical research. both six panels, core Exome the including the

and with began opportunities. Just we Synbio, we as currently we customers by are XX tracking large targeting did

silicon-based and believe that in an is we market also to one area such advantage Looking growth on product potential we over itself, believe liquid growth, future competitors. for extensions tremendous specifically. areas, for and are us with planning where platform We for as our of an XXXX, key offers our writing biopsy market both DNA focus Twist that industry

the focused market area Oncology our as improved for growing addressing whole and will line of patient on a diagnosis is extensions a stratification research and burgeoning need. near-term be

NGS now moving in addition, SNP markets have initial into In to a and customer validation the pilot in also inroads phases, made and we microarray adoption with converting the trials.

will addition, by In will both quota product our we marketing doubled XXXX, to In NGS, invest commercial sales XX our investing fiscal forward. we teams. and continue sales, drive we representatives in Synbio in support and carrying to continue our to from and team expanding execution to line XX of this moving

our will In through our extend team, addition to own distributors. we global network

their validation human we workstation of an our we results Perkin important are NGSx along with on-board. customers and already Sciclone Elmer, with co-market seeing As these exome are working efforts, core with coming kit, the to new

and mainly to workflow the products within our MGI which in International Asia. offer Europe also of sequencers, run are We installed

worldwide to agreements reach, while additional minimizing sign to expand distribution our infrastructure. our expect We

Moving to verticals.

fiscal antibody synthesis XXXX, For biopharma enhance that XXXX, to used in to be expect in create efforts. into idea idea precision leverage our we discovery drug and partners. silicon-based We could and this have fiscal accelerate these to libraries data now data we had support DNA an to platform

demonstration on collaboration harmonize Optimization morning testing. expansion antibody draws antibodies is a the This characteristic achieve. of of great of program, our the antibodies. what for a optimization successful enhance can This the where Pandion additional Antibody come and species announced for we technology preclinical a of we to the as initial with improve of our cross-reactivity Twist and This autoimmune optimal bispecific solution that collaboration affinity Therapeutics the

that leads GPCR continue We to generate to antibodies had reported using front, our discovery the work on addition, internally biopharma platform. previously our antibody functional targets. we we In three

asthma against I'm inflammation, again cancer, that for FSHR to and pleased targets. antibodies XA crCHX have CXCRX disease. and now functional VXR found for This CXCRX announce we monoclonal infertility seven includes GLP-XR for and GPCR and metabolic

using platform optimization these for decisions. our running leads for partnering We're

will to with we in to support forward, Moving and robust generate partners continue data biotech potential XXXX. fiscal discussions pharma

the discovery, royalty projected others driven of technology will to on more drive biotech collaborations companies. Some drug agreements and be of focus our traditional complementary we'll milestone

looking For and the be over the have growing novel party discovery additional expect pharmaceutical as with size we and companies value will collaborations third and for drug smaller time, validation. we initial latter, biotech

to We're negotiation through the storage DNA data stages funding storage. for the increase government density reduce the per and final of work cost we DNA continue to data a on Turning non-dilutive in terabyte. of to contract data $XXX storage

continue device some compatible and to development, part path We be key development a seamless a fabricated which would densities. proceed multiple methodical micron will be driver feature up to and to cheap our with with designs of be designed

three nine future to of We're total truly design months XX to a into takes milestone the a and phase, process which months end a key the design improvement. represents

of Finally, operations, back-end growth geographies. San with corporate move into and continue in regard R&D to we to completed South our global our facility We our larger in Francisco. see strategy, all

in our and expanded presence also We APAC. EMEA, the

Looking total in revenue at those fiscal the almost year equivalent all alone the company entire for this EMEA XXXX. to

DNA products delivery. our to facility of Regardless on States, operations. products Chinese we're our Chinese American do We including locations, end our of to as remain year to from customer for may calendar intellectual EMEA globe on order and in in we always important We in to other our in property first have as XXXX. remain finish our in customers, it's to China the dividends, plan We expedite around in by silicon locations our United however time company. track ship the order from the global point manufacture will an paying the an invested the

this like review to to quarter. over our the Jim financial the call to At turn for time, I'd results

Jim Thorburn

Emily. you, Thank

and increased for another noted, Emily terms margins. gross was very As quarter us the fourth in growth strong revenue of quarter

annual to for year million. $XX.X which of revenue exceeded another $XX for growth Our This million Twist. XXXX million our guidance revised triple-digit was represents $XX upward of

the the compared XXXX. year margin fixed in negative continue and we revenue costs, to leverage gross As grow of and million previous for margins year our million the fiscal was margin our to gross a $X improved our $X.X positive

operational year book-to-bill XX%. investments. performance We sequential million million, XX% X cash was very $XXX.X And fourth We with XX% the positive and of and in for we year sequential and increase revenue a gross exit growth $XX.X booked of our quarter to a XX% short-term $XX was million strong the margin orders, was year-on-year. quarter, X.X ended with fiscal ratio in

details orders some Now, the looking at of fourth quarter. of in

for quarter million up bookings of bookings had from $X.X that NGS good Our in three. and another million $X was quarter the quarter of

QX we received and health those from million increase a growth. Ginkgo. Synthetic includes service companies, biology of over approximately NGS million with was XXX in of customers orders This care. sequential from We categorize $X.X X% orders approximately of year-over-year from XX% orders which in XX% $XX QX orders diagnostic

resources investment the up commercial across as representatives noted, as reflecting Growth was in all scaled in have regions in our sales total support customer organizations XXX, support. XX QX, from Emily resource we to approximately strong our added technical commercial we field and scaled there and organizations, and

traction products gaining We the launched marketplace. that also in a of are number new

orders is So X% which $XX X% for growth. summary, million, were in overall the to year-on-year year

orders Synbio libraries, oligo million almost defined are and our are $XX which year-over-year Some as represents highlights Ginkgo of were the that pools XX% including genes, growth.

purchases. orders due Ginkgo and compared $X.X XXXX primarily in timing as Ginkgo $X or to the million to of Our for million fiscal that's

Excluding in oligo pools chemicals, representing Synbio from care. orders compared that's fiscal were Ginkgo XX% academic genes primarily our strong due and and $XX.X million, XXXX to And year-over-year growth. $XX.X for health to million industrial orders, particular

NGS in growth than XXX% same grew that's that XX million opportunities compared for orders $X.X and an health August. And XXXX, from from in period now continue to additional tracking accounts. the million launched in more XX growth our XXXX. February a as Note, the call that's primarily have to that year-over-year XX to adopted pretty of we phenomenal and care, we're $XX.X product representing larger our last pipeline scale earnings larger

to have directly in they that last customers validation trend quarter. to translate provide into note, a stages, compared line pilot more for not provide orders XX revenue, and XX each we group. product We but to now Please

NGS also to be and anticipate We both Ginkgo quarter-to-quarter. lumpy orders

are revenue Fourth well. really four, was is me sequentially and sequential reported quarter a And talk quarter, million, growth strong million $XX.X million. In quarter of in is from the to $X.X quarter year-over-year XX% let which and $X our $X.X a in doing another XX%. revenue, products growth revenue now. compared XXXX, our Now, Fourth In four million about quarter record up quarter Synbio for we us.

in our to the timing year-over-year and notice million deck, And QX, from $X.X slide four 'XX, that's going a Ginkgo in of QX, projects. you revenue to be 'XX. with due million tough As comp Ginkgo the quarter $X.X as was QX was

of was our Consequently, revenue from business XX% QX million, $X.X and of strongly growth is $X.X growth year-over-year up million, non-Ginkgo sequential very growing and XX%.

team, Our and of the strong very XX,XXX it's very new ops genes performance and as and the move to our marketplace. well, the to remarkable obviously doing business commercial our we fourth facility genes is due in and strong shipped quarter great in approximately products

in and number of of longer XX% gene our X.Xkb a including Xkb XXXX. for of our growth versus our gene genes, are revenue There products accounted contributing XX% growth, XXXX in

organization, quality continues Our driven products, to our base and e-commerce customer our pricing. commercial our expand, by platform, our

Our continued to NGS $X.X and approximately NGS with was for products shipped revenue growth customers quarter scale more production. XXX XXX four customers XX% and customers NGS We year. in of year-over-year over over growth, triple-digit million the quarter sequential four as into

me our for provide recap of year. a brief let Now, revenue the

revenue was our our grew excess from XXXX, of an For million, and XXX that's customer to $XX.X X,XXX as footprint in up XXXX.

impacting are contributing and research. DNA to industrial processes, Our medicine transform helping products academic

well. four-year the our going agreement, a was about we're $X.X Ginkgo see and ahead company million we're our prospects. Ginkgo million for the And making guidance approximately in years supply $X We're into revenue and of is slightly revenue progress future that agreement XXXX. to above that of and year excited is million was thrilled $X.X X.X as

was million, was up that grew from as revenue for guidance which million compared and million for Synbio exceeded Xx Ginkgo. and year $XX.X most XXXX. NGS XXXX, the $XX.X the million year $XX in revenue includes recent in the our that's $X.X and to

business Synbio genes $XX grown growing in pools. our nicely, has Ginkgo with growth from to strong oligo million excluding very is So and $XX million,

$X.X about almost that's In in in a revenue That's terms XXXX. more our noted, having to and revenue million, compared the year U.S. had is as business. Emily XXXX. $XX than great two-thirds million is million of EMEA, that's of regions, with $XX double revenue of

for the China. million, about, from year $X $X almost revenue just million with APAC was under

million it primarily NGS largest accounts In the genes. second key that's of care about $XX by $XX.X terms industrial Health revenue now segment driven $XX.X for was versus 'XX of end-segments, million. biotech and in million our fiscal and and is

the about P&L. talk now I'll

four. and scale costs we of in So revenue moving XX% down as we a P&L, margins, our leverage to projected in quarter gross the margin fixed gross resulting continue positive

This increased compared brings for in R&D brings million excluding million million quarter NGS. cost in cost the sorry, our including million to XXXX. our year to $XXX.X $XX.X gross revenues for fourth the quarter, the of expense XXXX, XXXX, margin we million to which million, $XX.X invested biopharma, compared fourth increased $XX.X year. I'm Operating expense in operating to $XX.X approximately and as of fiscal positive revenues for the of $X - in Synbio for

due million compared $XX.X our $XX.X and SG&A fees. in increased commercial increased to being to costs to mainly investments organization, some in million higher in company XXXX, associated XXXX, additional legal a public

the of facility. $XX.X equipment in for into for this new of and short-term $X.X loss CapEx million. with lab total The $XX year stock-based of associated new million, $XXX.X million. major $XXX.X was million move year our was comp at writers, investments our includes depreciation the investments the Cash our and and and end furniture year million the

revenue Those $XX the to customer in million shipment to less we're loss $XX operating range we first give guidance million $XX I'll quarter. end Now, to million to We're number range million. some due and the is this of our of see $XX.X XXXX. the and projecting impact of the for of quarter holidays close in of

revenue in to And is revenue $XX to $XX just NGS million. note Ginkgo estimated the revenue the million. $XX Non-Ginkgo in be that orders estimated to to be to million of $XX to to for range is million approximately $X is million. million very of $XX our estimated for want range be the is Synbio of $XX estimated million. be in terms quarter biopharma I XXXX a $XX and year are strong million. make is our guidance this to

be and projected we and is our as grow exit to we revenue to year scale XX%, approximately expect XX%, the for costs to margin average to XXXX. level approximately we XX% continue margin from leverage current as Gross the

Operating and expenses, be for R&D the include SG&A, $XXX million which approximately year. to

to $XXX $XXX CapEx in to and million, loss million. range in trial of XXXX. we commercial for million year litigation, invest year range the is begin of $XX R&D the the continue million February the invest expect Agilent to organization, is in prepare $XX which net for Our for to guidance XX, the be scheduled in in our as we the to

year have business doing extremely well. is the summary, ahead plan. In last The of over executed we our

We a quarter. to that four. terrific set year quarter are we platform disruptional all experiencing a high have innovating, We our another helps and strong customers bookings a for this Twister and scale and to executing thank of bar terrific end our want

back call Emily. the turn will I to that over With

Emily Leproust

Thank you, Jim.

innovate As into from will we to move position of we XXXX a trends, execute. and continue

needs the new as gene revenue to researcher high continued expect few and means well the complexity of complexity needing introduce with diversification products as those on which of growth volume, requirements fragments. both we Synbio, as meet For of extremes high spectrum we genes,

to we In enhance our continue will e-commerce addition, experience.

pipeline we new parallel, cancer will to the our adoption. tools. customers continue move biopsies developing For and needs In NGS, to products from research meet liquid of efforts the to through those we to expect introduce pilot

will pursue SNP within high-bio. microarray of the market, our also additional and We applications the technology DTC including

biopharma For will building our of for proof platform. we've antibody, are generated the unique concept packages continue drug discovery that we through

and both to data continue will internal for our Antibody use our Twist Optimization collaborators. programs, generate We for for

to and will which typical collaborations, include some milestones and Finally, of between partnerships. royalties, five both of we expect XX more biotech sign development

data time platform our synthesis we storage to data focus our on specifically DNA will we for cost globally. presence the to reduce continue And density roadmap storage our will reducing of turnaround to And of increasing expanding continue DNA. gross margin, in and operationally execute our silicon increase to the writing, on

silicon-based that enable believe our Overall, We will to it all medium our long-term synthesis in chain up focused and R&D growth. moving be on commercial and opportunities order continued successful would are continued team invest value that in to unique to fuel see our platform growth. and we in DNA businesses continue the

discovery litigation motions judgment, summary now dismiss Agilent's to the will On filing side closed which ask working for front, claims. are we our court to has and the

We ourselves the vigorously. and expect we believe to these merit-less this case file motions is continue to defend month and intend to later

extent the forward case look the through To resolved court. judgment, motions is in these we to being not summary for

not can read but section the you website. on do the updates we the Relation Investor the litigation discussing of the in will you encourage to As be appreciate, Q&A,

With that, call for the let's Operator? questions. open

Operator

of JPMorgan. Tycho from our And line first the Instructions] [Operator with question Peterson comes

open. now is line Your

Unidentified Analyst

is This [indiscernible] for on Tycho.

So to you two what Can how talk about this cadence mode firstly, 'XX? quarter. production added the think drove you quarter in should and this year the fiscal versus we last customers quarter-to-quarter XX uptick quarter about

Jim Thorburn

Yes, internal I mean, I think offer driven significant that if of at you an processes. really confirmed by advantage. this is They've all look business customers we competitive

to I XX pipeline months between know to up pipeline, the So convert the we've months number extended they're through pipeline. to XX the of us advantaged XX, customer faster. move terms in it from of actually takes and X that

as this great, momentum very, throughput we - product are And pipeline. the through happy looked looking to we're actually great that to and this sequencing the is accelerate customers of now give and product reduces believe we going into time into forward, reductions the given feedbacks is the have going strong through XXXX, that us cost year and in very

Unidentified Analyst

your more competitive prep of has offering do discovery NGS to sample out And of pools become now? IDP then in you recently probes sale it one process rolling differs expect Can been or and NGS how you at your about ASET. talk a and light competitors, it

Emily Leproust

great question. a It's

the custom close, make features, I very area was few a think the them launched when sequences, was we key of panels differentiation was it kit, with not especially which cost and and So of first significant had the could that a it speed in custom we of we one at competition. our then the experiment targeted

has been that that add successful And pickup driver commercially. has very for so a us been the key and of we've

market. response, time turnaround our I are because appreciated price think is features far focused And have you're attempt a that on that so panel. what by seeing two fastest view best is to the greatly are and still we the an the those

offers. does not attempt So think are liabilities an match while that I it the silicon-based it's platform

Unidentified Analyst

and Thank one just in in one an guidance or post of the terms are of in litigation costs whether are costs, you could in assumptions of then you. And timelines about your guidance? decision last the outcome terms not what included talk appeal the

Jim Thorburn

we're as Yes, don't we highlighted, costs, Emily defend the no to ourselves going out break litigation and vigorously. case matter

well. business very is doing Our

be strongly margins continues to NGS Our to to customer base this gross we're grow business positioned drive and grow and the going year.

Operator

from comes with Schenkel And of our question the Doug next line Cowen.

now is line open. Your

Doug Schenkel

taking week usually three for one questions. has just you about it less given in are trends, productive and not of the weeks quarter to the and weeks off left recent so quarter. most there Thank start Maybe by the than my talking that's those Christmas in

fiscal then you can that in is QX First, trends is say that for a of you the presumably through quarter. target revenue point, at it fair secondly, to lot bag. risk the pretty have this your And revenue order the low to speak

my a in quarter? a You at has opinion, you you the this wondering how of throughout just quarter. if about built in I'm characterize - to orders close the quite can how how very terms momentum nice year was order more book say tone terms in little book-to-bill, had least the of bit positive, the

Emily Leproust

order. Yeah

And mean the we're developing watching I Order we've thank quarter, interesting very quarter, strongly. book been that. building guidance when So it's this Doug. you, this for

New there You're the Christmas was in and absolutely middle week. the right, of Year

million very, We've the the very million for to of and so given customers now good billing feel million is guidance number million $XX.X from that we because with the of the book range move and validation stage. now particularly to $XX strongly, adoption guidance, NGS into - of and $XX order the from about year, $XX

guidance quarter. that help? behind thinking for Does the our So that's some of this

Doug Schenkel

on you're the it that QX, going going is but presumably, think year year QX, fiscal enough in extremely of you're normal like if make seeing side to guide would it this be on of QX, order like recognizing seeing to you're going loaded trend in And what or you're like does. feel didn't there if is going do something but of the you you're in to a momentum what - there back-end you to that's doesn't kind whether shapes the and feel step-up It based what that? do terms for revenue trajectory bookings, what see an

Jim Thorburn

That's seeing genes grew, right. strength number customers real great in Synbio we're of the we is the interesting, Well. platform, shipped, we facility in quarter And we good Europe, we've mean, four. got I encouraging. XX,XXX moved feedback all genes into very I it's it's think shipped a new a I and in the moved, I platform. the Doug, of NGS had quarter. We saw longer disruptive mean, mean great, more definitely

Doug Schenkel

Super helpful.

Okay.

So quick basic doing math. some just I and was

not I going of but hopefully So, the NGS and divide have, it quarterly down. I'm customers here, number anything per revenue you up by revenue your the is messing customer take if

that it's Now, growing fraction in of production. count customer the because sense, makes customers you're are who only pretty those rapidly and a

question step production those in in my to of production that ultimately, guess At like as QX some revenue an see there alarming mix I to this a where is, up? into what, see anything quarter, the QX bigger don't customer point move should much we QX. as trend. goes customers up I So saw you is more per versus inflection QX we

Jim Thorburn

Yes.

digging that. good question, we've into So been it's a

growth. front of our million, flip than end is news validation supports XX means funnel. is number the The coming us, the at good personally expected. So revenue the the are still Last sampling year more was more of customers from XX, I customers hotter which slightly customers that in revenue $XX was from are increased

of revenue million. do I'm we'd moved from assuming, about adoption felt is year and is year continue believe range will that we scale. $XX million customers to going come to $XX $XX to to those have customers last We And this this XX% of roughly those million a and that

what we now for And revenue growth. XXXX is the planning are so

Doug Schenkel

across financing been has big another This year Synbio. activity of

that a as a of Synbio lot seen was attended beta of it's lot that assertion, those think who it data growing investment that of field as community. us apparent both well with certainly interest supports us for from I have end-users the a

If Synbio we you and amount gone companies. that But you. positive new trend the how guidance for I'm about existing the the wondering, growth in for into money a this just creation set do of equation companies that's it's think for as obviously, you of funding year? weigh the

Jim Thorburn

we it's may be look XXXX. I means guess What market interest we year if I more And at, go back There's and of applications, even funding - we customers at look through is VC strong. does in I mean? been and and our because a back and think grow. to a to have room I that there's the for a platform and just that more up - - I you well allows there number huge you opportunity mean customers, us scale over ended has with very X,XXX customers think this

we are what's and $XX as million our in on going year, well. partly to new positioning sharpen another of year the another going guidance happen to into now moving highlights is pencils ourselves biopharma we're this for starting million facility, whereas - growth $XX and to XXXX And strong

off platform. our - leveraging it all it's So of all

step to you great a a have platform that scale. product our allow we to So, that's going provides back, customers

keep are just to it's So going floor gas keep we foot our on - to and here. the

Doug Schenkel

Yes, what I do I think but your question, math is and it it's above reason quick probably it's when ask, just really all part of obvious like a - the mean some sounds that again makes and sense. were lot a though per customer folks looking Even to analyze for. guidance it. you I on just basically a of basis just try revenue measure I

your and a there bias environment able didn't think more to but think board the could the growing funded to would. you be the about seem argue funding group product to is on when I upside doesn't that which might guidance, across one be look that increasingly you practically going think spend better to they you a who is in lot speaking, assumption customers this of factoring at

customers sure is I'm your seem doesn't a that is an of it assuming kind in products on that guidance revenue there, question going group that ton meaningful not they BGI So it's the a of and to like partnership in this fact speaking, just there's observation spend Last of do more growth to China? to the need MGI they the has impacted of have kind your question, how money practically spite growing so.

Emily Leproust

ago. it signed weeks just We few

I look... we So think

Doug Schenkel

It's too early.

Jim Thorburn

too catalyst think for it's next I year but It's growth. important early,

Doug Schenkel

Okay.

Emily Leproust

We're sequencing that we on - we I'm And like though excited the would targeted about goal. achieved be to glad platform. that it first the and kit

Operator

Sergott comes Luke And our next line question with Evercore. from of the

Your line now open. is

Luke Sergott

on Illumina them to up now down? follow overall that with help as question right the do to to discussion costs just the sequencing guess I MGI any partnership Doug, from with keep

Emily Leproust

think comment any is always on, think partnerships, can - we product it enhance MGI. through Prix looking publicly two publicly a don't with then Elmer to then I I looking discussion as announced right are great we mentioned, always and to, our we I have to and we reach and there I with partnership think Perkin we with But channels. different have now and are looking

Luke Sergott

share versus versus ex-Ginkgo versus new much talk from existing model. been on Can strong and then about - - extra from And your then the wallet of Synbio, that customers our revenue just you has how growth quite customers? is also

Jim Thorburn

So interesting question.

guess. they customers and I and of in on, combination those a customers both, mean, calendar than of the new I customers it's wallet, particularly, extra new come faster QX expected interesting, we're it's So it's are some getting ramp we

competitive scale. offer and services. pricing both, allowing I is very So We platform they're it's I the seeing mean think terrific to

down you impact time is thing continue particularly e-commerce roughly or more a is and we mean share seeing to we or our organization, to at more Ginkgo our see over I customers, and So growing customers I the back is, commercial in so added customers. platform us. total a of opportunities we're XX% are Ginkgo as if the company for now customer close overall well. XX% it's Europe Synbio good of and what, go great we're us, in the X,XXX and X,XXX Synbio now for of mean combination

the We genes from to seeing longer for and continues launched this Xkb revenue the And feedback year, good really we're as earlier marketplace. well. grow

Luke Sergott

the how where order the and on optimization funnel discovery? biopharma lastly, on Can seeing drug then And the the I versus guess looks antibody versus talk the you funnel. trends about you're

Emily Leproust

biopharma So right? thinking the vertical, about

Luke Sergott

Yes.

Emily Leproust

Yes.

we an kind offering, an someone so the are be with So someone And can could with they're as their turn into give and functional affinity, there comes is a a be antibody, target can it in optimization second antibody we is we have. could note better others. properties already cross-reactivity, them you comes and then where offerings discovery drug of discovered drug-like in One, two correctly could solution be antibodies. interested that whichever where

this of we and are now have that - to ways I and possible we year the for focus the So was funnel think pushing both. in both was data are have for demonstrate both, that opportunities we

collaboration And both announced some so we see in partnerships should or areas. I think

Operator

comes And our with question of Schulte last from Baird. line the Catherine

open. now is line Your

Catherine Schulte

for thanks quarter Congrats questions. on the the and

new of or First fiscal deals? on some the million biopharma assume in those agreements signed it X that $X 'XX is your already revenue XX only does guide, to in from signing success

Jim Thorburn

and from down approximately and we're $X the seeing seeing, revenue, why getting it's highlighted so what we the the deals coming are announced Emily line Pandion, it's from signed in call, we funnel from sight million of the we're biopharma. more - some on are highlighting that's opportunities good as we're we've revenue Well, of

Emily Leproust

then looking is sign portion that revenue and that as that payments announced, the milestone but the guided royalties, those deals. we next we - year, complement And we for of to include upfront deals to we only are will

Catherine Schulte

how activities co-marketing NGS so in million $XX partnership for far for assuming gone And your qualitative million guide? that back from to and then moment. those $XX just are going a on to have what you Any MGI comments contribution

Emily Leproust

this I think at different platform. we on sequencing the are point to So growth planning don't allocate

catalyst as good do Asia in However, it especially for growth, and China. a we

Catherine Schulte

me, going And growth then NGS for last to that of on lot there cadence, back one piece, expect you year. Doug's question this for particularly

out? validation As your sense year customers of NGS? are worth there move Or trying to pilot customers get stages, to large you look just for calling of coming any the throughout in the production expecting in cadence quarter pipeline revenue you're at and two better a into

Jim Thorburn

two out the adopted tend I question. shown great. one therefore - revenue to number is the year, to of had it's broadening last have feel tend Yes, in growth mean and to the I this we've I and I a good every which good think which quarter quarter orders we mean was did be order, starting customers are we of mean news the be - lumpy. large

forecast to built And year into large not of have this orders. our we have similar sort

revenue. So, of to a million $XX which assumptions it's gives customer, - million by more for a our us more broad $XX terms each customer in adoption revenue and confidence smaller

Operator

you. to call today's now turn to back further this I Leproust Thank session. remarks. the concludes question-and-answer would like for any Emily And

Emily Leproust

Thank you, Chris.

with not in only product. it the NGS both progress, and a we good are we've into curve, So added revenue storage. we are biopharma our in ability also to exceptional growth but data take and in began Synbio, making an We very and drive we idea our in have pleased demonstrated, DNA

much. progress I'm forward that very you a we Thank fiscal look you to and with confident be will So in sharing it great very our XXXX year.

Operator

this Ladies participating. you and gentlemen, concludes today's call. for Thank conference

disconnect. You may now

Twist Bioscience (TWST) 11 Dec 192019 Q4 Earnings call transcript