TWST - Earnings call transcript Q3 2020 | Twist Bioscience Corporation

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Operator

Welcome to Twist Bioscience's Fiscal 2020 Third Quarter Financial Results Conference Call. At this time all participants' lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to turn the conference call over to Jim Thorburn, Chief Financial Officer.

Jim Thorburn

operator. you, Thank everyone. Good afternoon, to for thank fiscal joining like progress. all third you Bioscience conference today business Twist and our financial us call quarter I'd results for to XXXX review financial did website our results We www.twistbioscience.com. our earlier and available at they today, at are issue on me is Dr. With call today's Emily Co-Founder and Leproust, Twist. CEO of with of recent begin in Twist will Emily progress a review businesses. and and will discuss I Emily direction. will and report operational on performance, our upcoming milestones financial our

this call will the And reminder, We website open as portion available audio up the Investors be one for our in being questions. for is will then call of and archived The will week. recorded. a be section

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

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

today we matters statements, that could set by Dr. except impact. Co-Founder, Chief forth with We those With required Officer our and forward-looking actual call results available us those business materially include forward-looking extent information I beliefs any obligation in Leproust. as time, turn materialize, Executive any periods projected. Exchange our predict any Emily COVID-XX the presentation or Commission. expectations not of of the hereof, the These financial in the fully will statements to differ regarding economic the date in over the we and cause on earlier in uncertainties disclaim subject update as to results that, Our based filings Securities to and are to pandemic and full The cannot, risks as and from at law. now this impact of are press release these those may results to more risks this described in issued actual as the and well and

Emily Leproust

initial well full and and quarter million to see from from another sales to current NGS customers said, afternoon, are as diagnostic due PCR $XXX the year. embracing with discovery testing $XX.X have pivoting report you, Orders partnerships. we we've rate revenue pleased for And approximately Thank from focus and laboratory COVID-XX to with XX NGS resulting That progress up an biopharma temporarily test. strong our the revenue am for companies being order everyone. record synbio as that quarters for I good primarily of of antibody Jim, had coming routine biopharma pharma we continue and using flat, top platform. significant run first partnership our vertical several to million, on

reported with specific for that revenues we million Turning of of $X.X Ginkgo. to $XX.X synbio; results million from coming

chemical revenue increasing a customers. customers portion we While opportunity in from an synbio the large of with health industrial sector, comes our care stream see

focused the launched In on expansion genes, our adding we beginning offers clonal which and are of products April, this We results. to see market preparations for are larger an of DNA.

$X made automation all one-stop of which line early importantly, a of launch, DNA as order, a in support as for the coming is Even The DNA was allows execution significant to of stream of them multiple of effort, companion these speaking, the revenue it larger to we the teams. infrastructure shop is days synthetic Although every genes for gene internally, we receive we of become us this of investment e-commerce. growing. see with customization call for Generally a orders. to across what launch dollar line product preps ordering processes year And the than orders of product Indeed, DNA taking more $X more requires preps, the well bookings. products. is team in more as laboratory it our

investment move upside was now their infrastructure as as a attract As you'll more quarter, hear providing our business resulting this that increase Jim, offering stickiness offering this from to from investment. as this decrease and well worthwhile largely this did comprehensive to to the by our can we customers Twist. expected, gene new We gross of margin feature require business believe who

that the academic next of will we revenue beginning to Overall, XX both their becoming line. ramp million groups the well synbio $XX.X remained top months, over as as to the and to returning laboratories. the expect at orders We strong bottom course accretive XX European are to see as customers

have to for orders while their in customers majority labs. we settled to we vast those to a wanted shipped respective As time, those to quarter, announced hold they who service design the of last provided place. shop DNA been our and this At

this customers to the DNA at pursue our We We massive genes growth of to and market market support the to on continue that evaluate tap begin a as the need towards end track such than few rather orders. opportunity. launch different makers fragments time to clonal-ready market a year the remain in to calendar gene long-term opportunities of

of and targeted revenue million consistent our seven form the one This SARS-CoV-X including genomics products includes reported infectious the from as diseases we controls. gene to $X.X now quarter. as and to with well the for viral controls, demand DXXXG we COVID-XX, of synthetic Moving respiratory revenue see NGS, which dominant disease our for for mutation, SARS-CoV-X continue offer worldwide. We is currently

for diseases. have launched a additional range also wide controls of We respiratory XX

detect also common This rhinoviruses, SARS-CoV-X. launched influenzas, panel research pneumonias. a several includes we with in similar a the diseases Twist respiratory quarter, to to and RSV respiratory coronaviruses, assay virus single symptoms the most During

we we of symptoms. will it disease As between about to the critical respiratory similarity believe ahead, challenges given differentiate think be the the outbreaks,

researchers with try panel to and evolution help providing information Our various sequence also full strain environmental insight while into origins. testing, surveillance monitoring and will

for area sequentially. to increase, have our in been the slightly last revenue this continues down for NGS as orders Even quarters two

key for some to solely test have We a PCR-based are facing headwinds their customers pivoted near-term few running as COVID-XX. operations

diagnostic for on able support to In in of fundamentals our our have health. from business specialists we use volumes arrangements Similarly, are our which We help the site. be see our moving some have testing diseases ongoing We pandemic. around this for diagnose absolutely this, That application strong has impacts their not our a become will routine are light light and specialists order remain the products consumer in ongoing to field customers The addition, surveillance the to basis annual believe term, efficiently global light we changed. of is in the In interest uncertainty not of near rare continue as cancer important who customers of our negatively temporary important and critically situation, companies and NGS. from believe are the and of making other new validation SNP Monday, to Ancestry microarray-based health said, orders that announced value offering away. COVID-XX, the our correctly an the even This medium bring gone will test and and power and long an In consumer tools customers to our consumer. to the term. more need an is to diagnostic exciting health. on of product and health closer platform place in diseases our exciting believe information benefit we markets brings who large not NGS-based we includes NGS of NGS-based enrichment test. On target Ancestry business

on of adapting our Importantly, focus customer to platform and future our current for while our market responsive demands, needs. we all COVID-XX maintaining research remain

library. Takeda vertical access for to proprietary phage our display Turning partnership to opportunities. Twist a market with We Biopharma's announced

pharma of in neuroscience XX work pipeline significant rare oncology, and collaboration. together and for is validation will Twist the XX a partnership gastroenterology. We antibodies Takeda's our actually for top for optimization it - top as discovery, is This diseases, Biopharma first

signed we new addition, small companies two their In driving that innovative agreements are field forward. with

activation all included control have XX milestones - we terms. emerging including partnerships. complete have pioneer six protein-based dogs we huge that that At health. Twist system fight and and diseases enable note a the for to cancer. Seismic date. collaborating we therapeutics of of cats. role which is The these will company not preclinical-stage animal the developing Bio, opportunity. of nine in antibodies will royalties revenue-generating treatment five said antibodies of and/or the are immune to disclosed engineer This Year-to-date, with in Invetx, Biopharma place of beginning with collaboration team in agreements bispecific the for in to announced the we year, And the a serious have we a market of of We partnerships, Please to be optimize an

Focusing research use for on panels an and competitive internal only antibodies development. ACEX Last antibody week, we e-commerce through designed launched new portal. against SARS-CoV-X two spike our includes available SARS-CoV-X XX protein. the panel One

help where with be picomolar human receptor, The useful second to antibodies that and competitive to enter effort an of panel these made target to of for their vaccines therapeutics contains bind the community our therapeutics nanomolar the available development cells. the antibodies in SARS-CoV-X expand to scientific of ACEX We affinity against XX tests, to binds may panel the global human human the includes Each or combat expedite impact diagnostic antibody to antibody scope wider panels and antibodies. COVID-XX.

we more addition, these characterized and are testing. have XX tested further In identified antibodies than of and in many neutralizing have pseudo-viral that

neutralization live results. three assays and at process in virus also sites have awaiting We different are

our team our rapid success. securing to Taken of in for discovery COVID-XX progress together, partnerships future our antibodies and up biopharma set has in response

SARS-CoV-X doors business and and characterization and for from validated this to to Our of opening have partners to and results, our additional sequence speed antibodies neutralization platform, pseudo-virus competitive going the accuracy growth now area.

internal view bring adds that unique or different could for value the and demonstrate More antibody from something is companies optimization targets a that discovery of approach spinning future benefit We out-licensing assets. We to out future. generating our royalty are continue in milestone to small our we that alike. broadly, cutting-edge and for stream and evaluating discovery large

Last Now, fabrication to first for that the silicon storage. reported our storage. data were specifically we chip, we I'll year, move of pursuing data

data with our that important takes did it we an chip will facilitate some silicon overall, the the update design-build-test miniaturization expect As made set for XX technology. Though semiconductor shared recently remain further have not technical track on And for goals of a we ourselves. in we on we on industry. storage, breakthroughs internal believe we we months DNA the to before, cycles have

stock, to Finally, appreciate than in over overwhelming I'd for our to committed $XXX the sheet. demand and turn of stock. our quarter. June, like At balance We for to review call to our we who million results financing completed showed a common supportive more follow-on Jim financial our this investors the adding time, our

Jim Thorburn

Emily. you, Thank right. All

That's strong of very to a the grew As had for NGS which sequentially. excess our a the year-over-year. I in million. million I'll this environment. in is now a growth orders, up Emily $XX.X Both $XX.X delivering all synbio touch and of on quarter. key slight We was revenue a in challenging we again environment. challenging would for were XX%, quarter. sequential thank Revenue of in employees increase XX% highlighted, highlights like some

quarter. And now the business Ginkgo Ginkgo well million, $X in revenue under $X.X with $X.X year-to-date, is million million. Our is doing revenue of just

from to the million in for also $XX.X silicon-based highlight from DNA as scaled demonstrating and revenue quarter in to of well $XX.X non-Ginkgo quarter our growth antibodies. synbio synthesis our continue both business revenue into platform strength our the to products results and million the two due Our strong our customer our as we new and opportunities, We're of base. of build platform tap COVID-XX-related capability revenue as our interest in NGS million to

During excess quarter, customers customers served we more the X,XXX third than with X,XXX served of year-to-date. in

partnership continue million, in were more to biopharma Our orders biopharma approximately make securing we and $X.X progress deals.

year-on-year in of quarter let's a on the three in outcome on details $XX.X some quarter of the based two. million orders. as million and represents in Now Orders were to compared approximately uncertainty XX% environment. This the is terrific unpack $XX.X growth the

synbio. touching quickly Now,

million. the Our include for million were synbio as and orders product pools libraries $X.X orders, quarter, of Ginkgo genes, oligo $XX.X defined

with industrial is the of showing well gene doing primarily orders biotech, $XX.X strength academic the EMEA markets, pharma business Our from in and extremely and million, U.S. segments.

biopharma. covering quickly Now,

bring $X.X were our the to million. Our million for biopharma bookings which quarter, bookings $X.X year-to-date

Emily five third quarter formalizing terms XX beginning we'll tracking the successful as of we fiscal most our secure the bookings partnerships. in our to and noted, do partnerships, was and year, that. and between of development exactly were At outlined antibody The we

expanding three new a signed the partnerships we antibody During current customer. discovery the quarter, agreement and with

on-demand, Twist increasingly, receive progress partnership. the we've agreements generating display completion and fees, licensed, libraries are also our pipeline of from In customer we'll of we One utilize we of development products. growing, many on the These is sequences by libraries. platform or of general, us flexibility project nine the opportunities high mentioned, our total activities our We're on antibody program. platform, by we any quality, three, Emily validate signed seeing human the for based to for to royalties of to milestones, and which commercialize demonstrate six now have biopharma opportunities fees out cases, phage synthetic panel coming the licensing elements number candidates; libraries, leverage which partnerships products agreements and/or also of customers various three revenue overall and we the milestones received the tap body; antibodies as and rapid, advantage into our also a is our targets development as require affinity more our technology only provided hits from leading deals also Twist two, and to streams. the is from work scale validated in exist These new one royalties. power, and antibody own COVID libraries, and As optimize then more our antibody customer. and milestones pays derived new provide Twist discover, that In with to our

product the compared $X.X NGS quarter million two. to $X.X orders were million quarter it in in as Our

As but note our orders fluctuate like we year-to-date NGS. have that for for NGS highlighted, $XX I'd can million the are quarter-to-quarter, approximately to bookings

Our orders quarter, from previous to accounts as well as increased We've seen the engagement XXX customers. XXX customers third continues of received in the pipeline and number customer current over opportunities an potential in customers We in scale. quarter. increase with the up from of

and opportunities XXX phases the quarter, our to now XX. So is orders. saw we with continues NGS validation adoption through with pilot, adopting, more and lower-value larger opportunities XX our pipeline higher number up the scale, of progressing And in positive from tracking another we're opportunities a purchase of

our As highlighted, in growth we've a seen funnel. robust

NovaSeq line Our bookings, microarray we SNP we to activities. revenue and our million with $XX year-to-date product with mentioned, see with And the revenue NGS new as as opportunities in customer plus to well conversion about expect pick are $XX million, NGS anticipate up will introductions. as additional

quickly although quarters, NGS regions were million. $X with under flat down. were geographies. well Overall, actually me truly to cover great And previous did third the we geography flat environment. is the Now, the let with $XX saw flat, just American for performance EMEA is incredible on based and most quarter, million. orders was orders orders which APAC,

great a performance. So geographic overall,

provide As each more we highlighted directly quarter, we orders all on following provide line into for not product to our group. but trend other the for to calls, revenue translate a

$XX.X I'll revenue; up as million, revenue details. million Now, revenue to Quarter $X.X revenue million. was three $XX.X product quarter. NGS progressing million on approximately compared $X.X to more give was sequentially from last

Note to shipments, was approximately decline contract. XX% to $X.X and with million in the in quarter increasing in synbio. million XX,XXX well, quarter NGS up greater on $X.X $X.X going now million, quarter to million non-Ginkgo our $XX XXX the Although of $X.X fell revenue approximately synbio execute our is three. forward. to gene from summary, almost sequentially doing strong there's a was customer a $XX.X lot uncertainty, very to in revenue this robust, two, revenues we're are million. doing Ginkgo to This shipped from In to base. customers as from during revenue XX,XXX base scale And and to million, business previous quarter as positioned plan. quarter very $X.X had two to which a great compared well expanding NGS $X.X turning two XXX the million, that scaled customer reflected in highlights the with we line from NGS well, with quarter gene as the and quarter We And approximately in in we business had the quarter - quarter million. declined We was continue

prep launching quarter gene our DNA biopharma. we're As projects. and timing XX% antibody our of approximately in and was $X.X Revenue genes touching products revenue was quarter of earlier, Quickly seeing Emily genes, million benefit i.e. the three longer kb. the optimization from the over of noted our X.X reflects for

million $X.X million three compared actually the of approximately million highlighting $X.X as million quarter. to In and was revenue terms in APAC. quarter Americas QX, revenue to EMEA million of revenue global $XX.X recovery to $X.X $XX.X million; $X.X from compared from in scaled previous in APAC expansion, as in

strong in million, with revenue from XX%. $X.X of from $X.X Industrial to approximately flat In for healthcare million quarter modestly growth Academic up was $X.X at of reflecting was quarter the terms of strong revenue, $X.X $X.X revenue customer million i.e., two, the declined contribution. million segment sequential impact COVID. of million, chemicals non-Ginkgo with

margins. P&L, to gross moving Now down

by unabsorbed Our XX%, is This resulted scale-up gross which was impacted of margin DNA for our quarter in the preps third clonal capacity. for our genes.

We a million to after their the and growth able encouraged by pharma compensation million market COVID shelter-in-place in future in a capacity. Depreciation, margin to compensation, believe three. investment the as continue of cost response the $X.X stock-based scale in and share be be for quarter. important initial of been quarter wallet we revenues June platform. was cost this We comp are larger XX.X%. utilize revenue, normalize shelter-in-place very of the for would when and And $X.X will we've very a will approximately go was our gross for

R&D $X.X $XX.X our million In This in R&D from the $XX.X $X.X product reflecting to quarter. our due and which quarter three activity terms quarter R&D sequential two. $XX.X million primarily we've spend well a received and XX, IARPA heads, sequentially million as increased June funding the million as million two, in quarter $XX.X did were as in in Gross 'XX. ourselves for the is quarter legal $XX.X decline to continue is from to SG&A spend organization compensation. reflects the commercial the growth to expense. R&D we investment the to up costs and been three We in was for in by after IARPA non-diluted have funds shelter-in-place The for million in of expenses position operating about invest our grant talking million increase antibody in in previously. versus litigation million, a reduction $XX.X was offset compared quarter FY XXX expense, NGS

quarter in million, $XXX.X Our which equivalents invested capex. we $X.X million. quarter and $XX.X compensation was $X.X of million net for ended In about summary, and $X depreciation loss have million the includes with in the stock-based and of year-to-date cash million

more proved allowed capture quarter, out we DNA products. the - launched which launched parallel During We to business. platform. our us the We gene

Our and funding. our receive NGS will continues pipeline first IARPA grow to

off and we Emily. the by streams more releasing into our responded close through providing to scale a and by to and is expanding Our leverage biopharma infectious the challenge back additional capabilities the investment investments. balance pandemic and revenue turn tap as starting to compensation strengthened invested panels. positions us which organizational partnerships controls continue in support general pay I growth our employees and support to pandemic We call to with to sheet now new And PPE, and platform, our have will that, disease

Emily Leproust

summary, In fiscal are the finish And of light Jim. delivered the impact to in positioned our we stellar particularly year you, coronavirus we strong. of third results, Thank quarter pandemic.

to pursue where opportunities new leveraged We COVID-XX. research continue can for our like technology important platform be

diagnostics, number care, we increasing addition, industrial, an chemical, health and of researchers academic are agriculture worldwide. delivering In for products

and intend continued the fragments IgG to anticipate genes. We for well revenue for care synbio, ahead, long for of our clonal-ready the of Looking growth well customers. offering gene DNA offering tail launch as for health we our revenue companion as clonal increasing the as We preps market. our expect as diversification

the using customers testing. pursue of time, we will products same currently microarrays. and will to while research, support we longer-term disease continue NGS, SNP COVID-XX to our respiratory providing At for For customers ongoing conversions continue in

to societal additional areas. proprietary due revenue-generating milestones continue negative, We well but have partnerships as of and anticipate and pandemic For to with the of our the royalties. results of we continue our to impact, for their anticipate anticipate optimization internally operations. has execute discovery data our of all generated our across for West, year drive nine At United candidates areas several to are an been through a in in IARPA productivity advancement. showcase high the In quarter. growth to delivered as for global and not as rest have development we on and business. exceptionally ongoing DNA expected and revenue fifth and six working year five storage growth, positive It collaborations remains last of areas majority all COVID-XX business antibody particularly forward. States. through while biopharma, of We the other our commitment technology, entering we continue our antibody demonstrate of COVID-XX or employees disease continue advance we that decreases competitive Consistent unpredictable continued cost the quarter, to on home now a XX, But cycle our we challenge result do financial worldwide, our providing fiscal technology of data agreement storage, month of of both to from quarter of and our busy we not in our fiscal productive drive the the guidance solid fourth expect with the signed dramatic are the business. very level increases COVID-XX a COVID-XX to down

embrace that to supply the our I of customers. our proud are began and continued working am the testing difficult DNA For the open COVID-XX team to strides, times. employees ensure employees incredible products These grit with who up continues to safety the labs, Operator? weekly it's of in we and that, made are our for know challenges let's the innovative beginning. Together, and have solutions. With of I we just questions. call our the this

Operator

Our question Doug first Cowen. Schenkel Instructions] comes [Operator with from

open. is line now Your

Subbu Nambi

of much Doug. sustainability And guys, moving dynamics? COVID-related on total is well, think Subbu one-time have for revenue? pretty things this you for Any considered. how should seems all It is like revenue we this held Hey forward? things How up about

Jim Thorburn

customer have our number million. in held Yes, in benefits Jim. and were That's NGS continues the almost customers terms and But scale. customers Bookings, things lot COVID don't quarter. would our We're funnel conversations. costs not - sequencing we of platform note, in value break as of the we're increased. customers NGS, of noted, it's a in out $XX more to a the I more by up see direct well tracking the also really number of having time. our driven Subbu, cycle We're large we the revenue. and

a business On opportunities. synbio time terms as And is well responding well. healthy that's Overall, increased. the to synbio of company side, very our non-Ginkgo and doing in the COVID

Subbu Nambi

Okay. And cycle Ancestry switching And news to the we was it saw shorten say does by it this on them customer your well. highlighted your presentation and you conversion Is that to played kit? and reasonable then as in the NGS, of a significant role validation NGS production.

NGS with surge are the for offer hope liquid Are so would about we well one you Additionally, to of thinking ramp. customers; a positioned this biopsy-based testing, faster your right?

Emily Leproust

very to And we more the our that NGS we platform that enable especially well we've microarray And launch information Ancestry transition where same your have excited question, enable is cost at was have believe that to Ancestry with on first suited the the or to companies health that lower. So previously that had of products. said we genomic is conversion the of are one we far. two so a

consumer-based U.S. the this I so is know NGS product that the in And first

mind repeating biopsy, was? we're had that very you the this. this is the would a enables about that so question question liquid Then And what excited platform you

Subbu Nambi

NGS your these the Because increasing is liquid and increasingly offer testing kits you companies. getting to to positioned Yes. are biopsy adopted, well

thinking right? hope this would ramp. Are about a for one So faster we

Emily Leproust

Yes, yes.

for really. products. target In to is liquid biopsy, definitely area our a biopsy you sequence liquid So have

have times You sometimes almost. go XX,XXX coverage to

capture amplified when sequence important And deep, your any the uniformity of XX,XXX is times. extremely so uniformity because the is is small

or of low for of probe's coverage an exploration. are to at deeper, you advantage. sequence have more uniformity we needed if an advantage rare we But our disease so to And study offers depth a even have - you

view the more our is the is. platform sequencing, deeper our So beneficial the that

And of pilot report on every tracks companies from progress so and production. the quarter some to gene that

that the us, turns companies. to lower that them. thanks a of uniformity those sample are switching Some they we cost liquid to which And we per are provide, biopsy for into think

Subbu Nambi

products year last one are IgG? to rest it. besides you of the Got And the other one. for coming launch What

Emily Leproust

of the of rest calendar - product the fragment rest about clonal-ready gene year, for And think for the disclosed I NGS. synbio. any So for the we've fiscal we launch for sorry, talked don't year yet

Subbu Nambi

you, Thank guys. Great.

Emily Leproust

Thank you.

Operator

you. Thank

Our Schulte comes from next question Catherine Baird. with

now is line open. Your

Unidentified Analyst

on just then And throughout wondering Hey revenue quarter. any given at would I If guys, Tom of slower seen actually and regional was trends this any could if to into flare-ups things speak particular throughout is [ph] you Catherine. April of for the ramp sort July were states. in the then here insight year? just least some the of sort we've appreciated, the be in

of curious had seen sort of you some anything, momentum? Just if any guys pauses in the

Jim Thorburn

No.

XX.X% that. was good quarter - In highlight our during But revenue the another that are And make mean fairly actually quarter. of fact, bookings, I consistent. trends can the in terms any just statements, forward-looking

new earlier And I we just a our scale platform. interest repeat positives a particularly, of There's business discovery to in a customer announced mean, partnerships. Our some of well. our comments we've the is where lot the business, biopharma in side. synbio doing I base. seeing of of We're made continue synbio lot number

encouraging their attracting work a larger of terrific most quarter of and the for opportunities chain We're partner DNA launched which tracking strong good, is seeing what we're for And think is the myself, I we The number be number, had that during preps in the a gene continues NGS. sign. to terms customers for to makes and offering for a supply it we're in our broader easier management, impact more portfolio business. one-stop offering with. them, a shop positive really a

Unidentified Analyst

biopharma mean, If pharma guys provided, partnerships. I you look the back of appreciated side I Pivoting things. original color. on to Great. guidance That's to XX the five

end You guys high are through that. already at the

you think in revenue to $X guide. full year spoken I the million on had

to on well. the you think guys sort initial platform Is were it upfront more I'd just as into the just sitting what's of validation? it of those You where just color where guys to that side, coming mean, year, I expecting? thinking you than relative it of I driving some revenue mean, clipped the to the you're on if were love have Is I expectations? sort the - outperformance? just guys is get

Emily Leproust

you No, Yes. the question. thank for

we we So year, the we success. we of into transition sets toward being - we data year when business year last an was guidance, early year set from And gather we turn where were data. the those this a so - beginning And the this the where year.

channel. So around we the into successful with And quite the at view has we're we've end a are we that. power on platform. COVID quite that effort that had fact And funnel. And that the closing shown shows a pleased we've really light high the done of some been that biopharma towards the

Unidentified Analyst

And one an that some have guys NIH had more, insight supporting received this had in sneak workflow capacity. if any in. you develop I COVID to Do you Great. specifically? program Ginkgo testing Ginkgo additional through there? We could seen Are funding

Jim Thorburn

So just Ginkgo, I'd is of details. We're our had good about quarter with revenue contract. with another terms the year-to-date And highlight Ginkgo. at track closely Ginkgo. our work we can't friends in really always we million. again, Once we share $X on

don't have a working on. details the but We we actually disclose of actual great partnership, what we're

Unidentified Analyst

the for guys. color, Thanks Understood.

Jim Thorburn

Okay.

Operator

Thank you.

Evercore with Our Luke question from Sergott next ISI. comes

line now Your is open.

Luke Sergott

you? guys. Hey, are How

Jim Thorburn

Good. And you?

Emily Leproust

How great. you? I'm are

Luke Sergott

here. good also We're

the testing? adopted - off test of for samples. start down been you or and testing where drive something COVID this play help help be we guys for can There's on actually lot So, pulling this about a of cost NGS talk COVID? the could Is the that

Emily Leproust

question. great a That's

So sequence material because going have you to very a host. to the just human of virus virus the human is going read be to expensive with RNA genetic if be diluted you the it's that, and sample

it's thousands per so patient. And of dollars

from material have you on pull so virus enrichment the do you you human the why that's to that out some kind human. of focus the away So where

a that, then And have a do to so to you do library and for products provide we have capture. and prep you

of have then In terms what a prove you is of library do. it the you prep doing time, you pooling XXX number steps if do the of you samples meaning pipetting X,XXX XX or library that X,XXX prep, samples, to X,XXX at instead if helps capture, have mimics to and

be to into the your So answer protocol, material. answer the the Twist genetic long going to but has question, entrant is

one same. So that it's samples the been XXX works or whether pooled, protocol the sample have

pool from out our because said, are, that is other I we of a say, advantage point I pooled. going bit our have capture little being an compatible sample protocols protocols for So day in. itself one That would over will a

pull don't up capture, upfront prep XX you protocol libraries to have the and if sample one into can a enable where the we we after capture, you even So make clicks. the together

So very do nice already the capture can of we and uniformity. that our pooled because is

of levels available. two there's So pooling

Luke Sergott

Okay.

are that something into are doing pool starting they work And the is so, that you Or with? - NGS-based and looking are testing you doing I them? to guess are this with having testing, just labs the just conversations

Emily Leproust

are our kits So available.

of of COVID then March. I XX have respiratory think I viruses launched launched And believe, we panel where we our you and ago, different couple extract respiratory end a our can kit, weeks sequence. we that

quite So simple. those but kits yes, the are pull you to if actually want sample research. call you it's And available upfront, can us, for

nanogram that you The positive. if is one XX the to have later blend that easy, and it sample deconvert you then difficulty workflow extract the goes the just into but You have - is protocol.

later. deconvert have it to You

Luke Sergott

you that's from you're these All have conversations been Okay. to of partners? conversations Have licensing lot partners. that platform. on you - then outside I these going not about existing companies great. side, from those on right, biopharma interest And new on any - any you're the having of know the landing those talk guys a had that on from guys

Emily Leproust

some you And as to deals deals. We take try those be reporting in of time. diligent know,

today. said as So much we're able at we point probably this say as to

Luke Sergott

fair then about had that XX% gross talking going XQ, the kind margin. of should Jim? forward were fair enough. you payments lastly shelter-in-place margin dynamics expect in here, of pace and That's we enough, Is the ex - you And

Jim Thorburn

Yes.

prep shelter So the We as margin impacted DNA in - scale gross business yes, projections. we And also, so were business. the back, we any give inefficiencies fixed to leverage place. the continue obviously, non-GAAP last our to not XX.X%; forecast scale as was We forward we quarter by launched some our we to cost. the had business step going

with Our the year, think is cost, non-GAAP our continue I about XX% we're still gross scale leverage targeting in reference. synbio NGS our we future. - business, view average the is to margin be would frame This and particularly This of margin XX%. a XX% as products, to gross fixed year-to-date launch is

Luke Sergott

from all helpful. that's me. Thanks. Okay, That's

Jim Thorburn

you. Thank

Operator

showing for I Emily not I'm you. turn to at Leproust questions any Dr. the further this to over would time. remarks. like Thank back now call any closing

Emily Leproust

Thank you, all and thank you operator, for today. joining us

progress. As forward fiscal our keeping to we of we move look into quarter of you the final our year, apprised

ride mask. Please yourself, the realize sustainability technology distance wear socially good DNA, through silicon-based power health you. of - platform synthetic both care future the safe, and the a to care our take continue improving of the of and stay We planet. take Thank to

Operator

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

disconnect. now may You

Twist Bioscience (TWST) 9 Aug 202020 Q3 Earnings call transcript