TWST - Earnings call transcript Q3 2021 | Twist Bioscience Corporation

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Operator

Welcome to Twist Biosciences, Fiscal 2021, Third Quarter Financial results conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a Q&A session. [Operators instructions] As reminder, today's conference call is being recorded. I would now like to turn the conference over to Angela Bitting SVP of Corporate Affairs.

Angela Bitting

Valerie. you, Thank everyone. Good morning progress. like us to review you would and all Fiscal thank for Twist joining business results today financial to Third for Biosciences XXXX I Quarter of Conference our call is We did issue our financial results at available morning, www.twistbioscience.com. released website at this our which me With today's are call on Dr. of and Emily Jim CFO Leproust, Co-Founder CEO of Thorburn, and Twist, Twist. our Emily will Twist Businesses. on begin with recent a progress review of operational and performance, discuss Jim and will financial will report to milestones on come our and upcoming direction. our back Emily open then questions. We'll call the for

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

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

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

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

Emily Leproust

Thank and morning, good you, everyone. Angela

customer We remain commercialization driving our Quarter increased expanding year-over-year. those increased focused all day-by-day across across the year. continued our of of businesses revenue moving final Data into while Quarter Storage We reporting these XX% of XXXX, plans. our record revenue increase for base revenue the businesses, DNA Fiscal and of the [Indiscernible] An Third We million and reported our solid Quarter. advancing our on $XX

provide not of European Fiscal ecosystem row, will for of to Quarter significant a percentage we business. no opportunities, be single again, customer across the into of And This industry For industry is future. we The only out the we XXXX, broaden Synbio of the or current promise continue our customers. of recorded strong the XX% This Synbio results revenue. context today in Second an of increase million of which remainder Quarter of slower and There First have are on companies a diversified our will sorry, in a diversification the setbacks of the every synthetic $XX.X applications but Zooming months Quarter over working put for bit validation not with particularly, biology. for incredible resonate of work opportunity Fiscal XXXX, within the and to our accounting of indicate a future in businesses. our Third X remain both as -- for order. strength Fiscal First signal

that production. commercial enable and for and shovels. development, the the wherever success. customers sensitive picks well shovel the a we and tools discovery However, be always will DNA as a on Whether defined picks and goal, Twist Essentially, for research we who a science their our There are even the market application go, sell provide a provides for as

diagnosis of a the Synbio At to play. role rich system, surveillance healthcare opportunities. see to has Specifically to and for healthcare, treatment stage from we every prevention,

mosquito-borne diseases. and and illnesses We for can Synthetic Comprehensively, New wide Dengue available use Gene be can to used and of inherited diseases. treat eliminate like to that then we to a use what to technology healthcare. specific Malaria combining Drive of synthetic improve cancer personalized is range deliver test can [Indiscernible] tip to Editing iceberg Gene right possible DNA bio is treatment. DNA by the gene of mutation just to And the this

and pursuing industries, the addition X In our disrupt the Company, a synthetic including growing existing and customer DNA see chemicals, market. we healthcare, to wide food vision applications industries, we materials, when founded ago, variety will world, years change base driving in a unique of With that farming, more.

We robust promise are dynamic quarter-over-quarter. solid delivering growth building by a the revenue on and business with

starting in Third as at genes Quarter revenue we reported into with our expand our million. $XX.X $XX.X base. Quarter, to with we Synbio, results record We million, drive in the of continue for to customer shipped XXX,XXX Now, coming the orders a

We opening are early of our of with Future Mid-Canada actively Factory XXXX. for the the in expected production preparing

makers quickly, DNA online an to As believe avenue customer important buyers. year, next tap comes allow DNA the Factory convert to next we Future of new into the into it us very products will

product We will this it before of plus and acquisition end acquisition for Turning targeted in reported the our We expect Macquarie were mix, believe NGS, into Twist the accelerate term. NGS year. revenue. $XX.X sequencing. We're to to the workflow closed and Genomics IGN quarter. bringing Steve Orders of working our for library full multiplex twistify the $XX.X million to from conversion to we calendar million preparation the tools relaunch

an addition, over product European exam typical our provides panel. of coverage. used serving we for goal a buyers It Western than In panel, be XX% of is standard, [Indiscernible] [Indiscernible]. that the This a can leverages that a platform panel an million larger it alone cover launched researcher to rather ethnicity-neutral, design important Twist Twist regeneron

in generous and our multiple new Apparently, of last controls relatively ourselves the over variants. Allen constant X our controls solution taken the continuously to the This Kappa. efficiency an Delta construction sales COVID, though including have controls and accuracy for to in the addition library introduction Controls and we Portfolio. all-in-one time, evolve nice We early been replaced synthetic introduced quarter, and new steps by this discussed We of have amplification We [Indiscernible] a that in. mitigate latest [Indiscernible]. the to maximize positives including is line launched we for are new X the pandemic product designed variant see of

remind volumes. of remains the Importantly, is and spread quite our tool cases We not effective very To time. survey wide addresses which trends to the therapeutics vaccines, both live population health virus. This for meet vaccination, worldwide of of important be a public some that variants, for that school-age makes diagnostic [Indiscernible] to lack is that worldwide to several and COVID learn requires crisis. tools case us a the and evolution escalating with eligible COVID, likely to the and need

a in Biopharma, For partners. great $X.X in reported million a repeat Quarter we and for saw increase revenue. We Biopharma. business with our in This $X was continuing million many longstanding orders of

fee our Earnings partnerships over upfront of portion project. with of license associated Biopharma revenue we reminder, a as recognize revenue the include a As our the course each

all addition, are of revenue directly the the project. in depending one-to-one and convert often additional orders quarters, royalties financial calculated on following into most aside timeline In potential represent not few those in the Milestones revenue. and of

showcase utilizes that This new the the of improve we particular our collaborations our a qualities optimization During fully capabilities Twist partners several for antibody a human to solution molecule. signed NW quarter, sequences.

glad XX I'm pharma humanization active in too very yet, of have partners, As with biotech get affinity with royalties collaborations or this programs, we partnerships do milestones we believe as these expand for interest to with report both maturation. platform our XX an have which an for not our and XX now of increased milestones key entry critically examples companies. and and partners particular and they're successful data associated see additional important them. package typically We And to royalties that we we larger and

now addition, hands and programs of our XX in partner. In are complete the

Concurrently, compounds addition the preclinical path to In antibodies news we the add to additional our internal other the our many we continue to program, pursue reach expedite continue to generating Twist clinic. for to data. partner

needed to [Indiscernible] We're feature size components miniaturizing includes commercialize chip commercialization, Once chip to our the integrated is data chip next CMOs both as the step towards working storage. product data progress chip, is an working, even one-micron further. to drive the integrated integrated that an make MEMS we and we continue for to the Moving create the building pitch. with solid proof-of-principle at storage,

At medium. Jim to and of turn that quarter. offering. now commercial chip, time, access on the our Delta right target on well active will early meet first months as its released The organization. the four the data is three, consistently, DNA to an first alliance larger our making expect They support and in group engine. is those, review one the stores results over We will community we it entertainment white are the strong. to media be storage benefit The status like I'd this irritates, the at customers the as website monthly chip DNAs There and for control a financial call great as progress storage educating unit storage to paper this preserve,

Jim Thorburn

Thank right. Emily. All you,

the X,XXX customers quarter making results up Third increase our new and approximately Revenue our business margin we're decline in customers year-over-year As shipped of noted, Twist and a the a X,XXX XX%. XX%. the was advances approximately investing sequential Gross sequentially for to million quarter, of cash with And Quarter record year-over-year We in XX quarter XX%, and Quarter platform. we demonstrate investments $XXX for third and were XX%. executing year-to-date. the the and for and in approximately our strategy continued for ended million. X% is Orders of to short-term $XX.X million, the

provide larger a the to increasing and Third Fiscal applications will liquid for Quarter, a including biopsy, $XX.X NGS Second I higher diagnostics, and customer controls, This year-on-year. XXX% RNA Third that's for included. other clinical orders Quarter. applications and Now, details and Quarter base, more applications, reflects the adoption, on our were orders NGS comparable increasing million

approximately approximately customers diversification Quarter we from XX quarter, XXX received are X X the XX orders in approximately and continued previous in And million as top accounts to top our of for highlighting orders the the the placed During the customer X. compared Quarter. million NGS footprint

continues from we're increase for we XXX accounts Quarter. XX XX noted Earnings the And from scale Twist and is an which up to call. pipeline Our now XXX have in tracking last last larger our opportunities adopted

Third Quarter, orders, DNA primarily sequentially, Pool Synbio: due Synbio included million to declines orders. up IgG million XXXX from in in $XX.X industrial preps, turning the Ginkgo, and down Our in and libraries, $XX.X Oligo to Now, biotech June were which genes,

and provide continue to a biopharma: Quarter of earlier, translates XX revenue now customers, note we pipeline have have trend $X,XXX,XXX, And opportunities. to partners provide not with orders /or into for XX programs and product directly active we milestones of line royalties. group. that Please which XX were each to build our record and noticed Biopharma X as we Now, in as orders to projects,

Now from orders moving to revenue.

in X.X revenue earlier, XX% applications same for quarter FY million and has million X Year-over-year as sequential XX.X 'XX. for was noted up. As for in that's And the cumulative and million, the Quarter approximately to to our of compared than brings XX and compares year-over-year biopsy revenue same reflects prior of to liquid million for our doubled XX.X which our Quarters of scale with to year. for expansion incline growth and number the the XX%, Quarter such continue the products as to scaling XX.X NGS more pipeline, this growth. increasing million growth period

Quarter for revenue in last X quarter, that's XX.X million, up Our XX.X an increase from was XX.X sequentially million Synbio 'XX. FY product and from million and the Quarter

highlights Quarter in the include that's Bio to from the XXXX up of Quarter. approximately Some and previous in shipping customers X XXXX

we're Ginkgo of Gene's from sequentially million our the now FY base. 'XX. our on projected X Quarter no increase our from was in up QX and revenue XX,XXX continued and of out And also customer activities. highlights approximately shipped services activity. genes success of as X.X than million XXX, a XX% Ginkgo this is revenue, in for expanding X.X X. upfront We up number and X Biopharma genes Please XXX in our XX.X shipped growth and record breaking in less antibody Quarter longer Quarter the Quarter million revenue Our note an from was approximately million

our will cover Now, briefly I regional progress.

XX% growth. accounts terrific for building Quarter 'XX. Healthcare showed update of worldwide give the in Quarter as our same in our reflected was business an X.X our for versus now was All in million and noted of XX.X X.X last our strong chemicals with year. QX, recover. was QX growth in period Quarter, XX.X last the in X.X largest is investment million Our of XX% the million XX.X FY our QX segment million for 'XX strength this last our academic segments that's versus I million revenue. revenue QX was NGS. revenue And well. it international approximately business. million QX year. in Industrial now million million on is strong a in to period APAC had now revenue another million reflecting segment strong the Fiscal period X.X in XX.X versus million commercial trends And for QX, revenue in compared U.S. Quarter quickly FY Quarter. million versus out in continuing revenue capabilities in 'XX. last million X.X 'XX. We with had X X.X year. as same organization international same will our X.X And QX to was Academic IMEA of call of X.X versus

Our was X.X increased agriculture million. revenue

Gross or and Quarter margin up the XX% prior in XX% revenue, from up the P&L, of Fiscal from Now 'XX. of for XX moving our XX% approximately to Quarter X Quarter, million is in down

Quarter, 'XX million Our and XX.X for XX.X 'XX. R&D SG&A million for X million. Quarter the in XX.X million to in the was expenses XX.X of operating R&D the and FY of FY includes which as compared Quarter Third Quarter was

'XX, have year, technology this our innovation. in and has and seeing was in XXX in our of of benefit worth development we R&D $X.X in outside compared increase R&D resources to FY in included Over to from QX launches reimbursement FY drug compensation major netted data also our headcount the are as capabilities, our highlighting XXX million We're product investment X spend the our QX, services, consequently, 'XX. the in Fiscal our invested last this And $X.X 'XX. of million It's Quarter and Both activities. and storage primarily, spent. against increased

that's on an of growth, our primarily technology in data compensation the $X.X for spend services and the Just and and in development sequential increase outside was increase storage quickly million activities.

XX that's organization. in million was to million in $XX.X FY of compared XXX build expansion And organization this And X.X FY approximately increased both as million contained commercial includes includes investment approximately headcount X primarily million, Our of SG&A increased $XX.X to associated increased million. IMEA. 'XX. and to due up commercial $XX.X in Stock-based million from SG&A that approximately X, in the and expense our Asia comp in to compensation X in Quarter with X which year-over-year Quarter 'XX. by Quarter a X that's And XXX has Quarter and higher

approximately Quarter the as in continuing the addition, SOX million have technical experience and Accounting finance brings its during accounting am Also, depth we And industry higher we've quarter, Chief matters. incurred been invest as In our we of environment. significant outside professional due part to Yankton fees, of of as and third control to hired Kevin thrilled Kevin Officer. of X services audit to enhancing Kevin knowledge I our team. our

which was X.X XX year-to-date million which was million, investments, we quarter the X.X stock-based Capex depreciation. taxes includes XXX quarter million operations and approximately quarter comp cash total brings loss X and for approximately and million, XX.X Capex posting And from to million. before the Our concluded interest million. short-term with of

lease and financial was tax million Facility we goodwill provide an Emily in to in for Fiscal a payments. liability. deferred million intangible acquisition started total June update $X quarterly sheet future lease approximately to this has Portland reflected this closed amount were our our approximately of and guidance offset XXXX. lease additional the expenses I'll amortization the As extended the the our $X.X record April and payments Quarter iGenomX for highlighted, million in with we and balance $XX an by our year, assets of of balance In

growth growth we're of the we same we our As time customer time Emily also there Europe. And market base, pandemic. seeing strong in noted, inceptions strong with year and remains seasonality in have associated where a approaching

earlier, larger Europe noted As revenue. of our now is parts

range XX revenue year XXX X XXX. our now XXX prior guidance in is to million we're However, and is from to comprehends for we the XX.X guidance up within million Synbio our Quarter are million expect this range be to the And of And XXX. of estimated the revenue revenue This approximately to $XX estimating range increasing of in to estimated $XX NGS be the revenue. revenue million. million of and $XX million. Ginkgo is be the range biopharma $X in is million. to $XX revenue of to to estimated

to reflects XX% our to Our statements. as gross for Factory compared XX XX% be for SG&A, our is year margin beyond. XX% from is and associated comp compared organizations in range as XX and R&D XX between in the the for in growth XX% million Data sales Storage higher expected approximately year investments in the for and this R&D, and R&D expected in to charges, year stock-based investments. the to rental last million technology prior and outside guidance primarily $XXX FY expenses, Operating and are which support $XXX services investments to includes expenses with to million be to Future, million marketing the approximately due up

we'd guidance Stock-based depreciation be to Our year, our to the expect to like and to and the approximately strategy, executing customer for is million net million be of approximate approximately million. to And record Twisters for expected from XXX to XX XXX expected the another million In XX for base. XXX anticipate loss to as CapEx million our be million guidance. comp previous in broad we compared for be thank XX year. joining summary, growth, Quarter delivering demand all

back will I received are we're in we revenue (ph). tap products to call as platform streams. new continue to Emily well new now being turn investing that, our over Our and the With into

Emily Leproust

customer continue business, build our to our stream. and revenue Thank Jim. conclusion, base, you, we In

the year of the lot of than envisioned a the accomplished at more have in we even beginning COVID-XX. quarter, This midst

As in growing into accelerate year, to continue Future Acro. appealing markets final we we to take fiscal Synbio, for XXXX to quarter the the to while market of us of in expect position prepare move our the Factory we more production share in our

increase revenue NGS our For pipeline. funnel the grow as we'll we accounts, and adoption, into the large as tools, to continue well of in goal

Acro we moving prep In into [Indiscernible] relaunch Rick snip to kit addition, XXXX. drive to plan conversions

programs we opportunities Biopharma, in additional participate in and advancement. to well sign For to pursue clinical that as partnerships the greater intend rapid as

Alpha these commercial will let's concert advanced our adoption For With questions. the towards in and storage medium new DNA data of with on execute the. storage, we product offering, IFI market actively for drive call return contract that, Operator?

Operator

you. Thank we compile by roster. while [Operator Please Q&A instructions]. stand the

first question Our Cowen. comes the of from Doug line with Schenkel

Your now line open. is

Doug Schenkel

my Good taking morning, for everybody. thank And question. you

momentum of start extension, by clinical terms just think to so, pandemic, on and talked the to should asset to lot a And be seeing when the about guidelines your we the in the the as environment about least progress what that the the reimbursement of the on if in So look thinking clinical-end out is your to of about fiscal results same business. quarter of market, we this consumables you're the last at in in of you increased and want I talk they for comes call, after sure bias, call with make you to like with development 'XX? in and in demand hope I upside especially talking Based to industry when seeing driving the ahead as part bit they're fact Fiscal oncology. is that's sounds the think Alumina's we sure guide, how night them, out little implied a say coming it the combined and business, QX the backlog, sequencing coming thing then it the about especially pandemic within case. we

Emily Leproust

Jim again Thanks start continue. and Doug, and maybe I'll can

But work with clinical similar. So first say. the of I in agree we what We space. as reminder, is customers all, a you there see stages something when X with

of The the [Indiscernible]. in development first stage is the

content then we many try to scale-up, very in panel go very shine a cost-effectively. that has can panels customer once that of the finalized the into we frankly, and we and more because customers stage, we want need, different And where make that's so revenues where different then And the run. quickly can content

validation, And anything so are like in trying in in more early Jim, customers in customers their is to still development that content areas. more seeing asset there And both depending you'd are on skilled different some diversion. and strength we where add? and are else some they are the

Jim Thorburn

Yeah.

NGS We're an backlog pipeline. or definitely customers, area it's if tracking you at of the look a strength we're Doug, tracking large So XXX. seeing and now we're the the

that's opposed now XX last means adopted So year. we the time this time tracking there's as been and increased were in number year. Number about That's twice our perspective Twist's mean, XX this split back signed to I of into approximately assay. adopted, this last to

the seeing are had Quarter. bank bookings increasing. another larger of in and momentum the So accounts The number pipeline. we strong we Overall, is

have strong So building momentum that area. signs to very all are the we're a going in this up

If for for guidance NGS, upped look the our you we've again. year our at guidance

strong We growth to to continue a deliver and to continue strong NGS Hello? space. have we the showing, in very expect

Doug Schenkel

helpful. seeing in Yep. run would to really to a thing for Fiscal suggest those metrics, of slow. direction. be going Thanks trending a because that. mean, think that When not not No, all both you that's I mean, 'XX, you single momentum you're importantly is the to I'm Thank the there's Jim, I as I you. for there. that I cheerleader, there's the all say through thinking building I nothing And say outlook right wrong Thanks. about that

Jim Thorburn

orders. And also increasing. of placing a the been interesting we're coverage the volumes what's is good to has our that the increasing, And two as of roughly I it XX% tends in the scaled that's the customers for the quarters we've top increase. number adoption XX, sign, about breadth were look breadth last shows lumpy transit at of if the you mean, really of is or

Doug Schenkel

change or if the I specifically more else could And I could Biopharma Okay. That's a side. about little movement ask, on great And increasingly bit I and libraries lines a does just any talk great. be Is I there ask something if could there Libraries guess towards really targeting. efforts engineering and antibodies. for capability. But a to cell of development seem thinking antibody of in partnership how and a in course, really future just existing you to you're the in increasingly thoughts context? your how that internal embedded If about how about It'd efforts efforts in your development about advance this does is sophistication to about positioning this environment feel be efforts. competitive context. question your and so, on impact great this hear is your sophisticated -- and question, cell on

Emily Leproust

Again, your you Doug. a agree to with I the sale. a different you patient. to made Then payload around that in DNA thing every a patient market. is gets Thank engineered definitely there's engineering, great with for need mode needs you'll the assessment lot and each and But production of be DNA should cell go where need still that custom of

in gets And then can because what the we typically is in the the don't in production that production the that Synbio, mode. have material, amplification. again means you so one and typically participate own development. patient by we in every engineering, cell payload, if as can propagate their once And we Research we in it participate genetic Where only participate

we not us, opportunity preference, that production that payload systems the so have in And chance for of a the is since only especially we budgets to move great system. an R&D genticmenterial so, point, to be have at definitely

I thing. the think that's first

of to creates team tool have. say, is the solve and productized a that customer is on of dragged cell that I'll because into cycle, means that there's a sell like the And very fact Biopharma The sells. team our that then gets Synbio as Biopharma get, team what problem. And edge team that customers our becomes skilled second prowess we thing, kind then and and leading scientific the tool there engineering, the is that that Biopharma great the a say, up to our science, to we around the I'll tune

own on And so capability for thought Biopharma that it team that were our to a [Indiscernible] many we their and other can as needed seen of many it. when we protein, well applicable the protest Biopharma original bioproduction customers. two. then be IgG that of could IgG they with we it develops high-throughput product customer moved because as And they instance, developer can a be initially and win Remember is other could customers, now we we've it, into sell to but customers Twist the

think with similar engineering. something could cell I happen

of to the team get about is and that Industry really going one in tools. business, gets of we thing are scale involved those As some up. tools developed great do the allies

have with two is I a almost future growth. One applied have those tools and is we platform things that going good drive forward. think we great we great of team Biopharma, have, a two an developer is could science future that

Doug Schenkel

again, weekend. thanks Okay, a have great

Emily Leproust

you. Thank

Operator

Thank you.

line Sachs. the from comes Matt with question next Sykes of Our Goldman

Your line is now open.

Matt Sykes

get business, you the existing adopted Hi, at frequency seeing was and question and just they're if customers. in I Doug's more NGS what ordering. can we the Angela, quantity the wondering mix good which customers XXX morning, on are you're on versus XX new lines between any along customers, maybe Emily NGS But color and mentioned and Similar the and Jimmy, Jim. thanks questions. for my of taking tracking

Jim Thorburn

Yeah.

customers, customers in new over don't the in last So, the of has that, break mix terms new terms terms the certainly of few mix, of expanded volume. years, in

thing encouraging ordering also customer is for keeps I increasing. breadth the but of is the think keeps us the increasing, pipeline that very

you go year orders. to of As about be lumpy XX was rather the a tended back where the it top XX% ago, maybe

production. last an from last. of XX encouraging into that's and assets The is that We've about number That's keep adopted XX increasing the sign. going as Quarter, top that. the over Now, those well. obviously now are adopting is XX% up got of XX

signs we as So talked positive. earlier about those are all

number pipeline a are continue don't increase. with an new starting The liquid large it's applications We see us, break out. customers off. working that product the We to such certainly take of to biopsy Well, we and liquid overall see biopsy us. exciting for

Matt Sykes

Great. there. And like sounds is Quarter, on that had it EMEA, Jim. good color, a Thanks momentum just you building then for

region that the Just maybe IMEA. that of driving in for any growth drivers are

Jim Thorburn

as doing genes Yeah. doing Yeah, I shipments, number well. of had a it interesting mean we well. gene record was Synbio's business saw we

strong In with Pharma. the large in IMEA, good at seeing some March end orders terms of suspects in good orders, strong we're the of Usual seeing Synbio Pharma larger NGS. particularly We're genes of Quarter. come They in with Europe.

was pick score X that interesting our this to above revenue and bill Synbio in for up good in Quarter. So

sign. So good encouraging

the I lots enter in momentum believe got business. we've of we As summer strong the period,

Matt Sykes

I Great. color. the appreciate Thanks,

Jim Thorburn

Okay.

Operator

Thanks.

with Our of Schulte from next comes Catherine Baird. question the line

Your line now is open.

Catherine Schulte

quarter you a are the you on are Congrats key those resolved for quarter constraint? have mentioned a bit and NGS. experiencing Hi. still supplier last some for Have thanks This been or first headwinds the they questions. issues as

Emily Leproust

Thank the front. very good you, that on question. We've Catherine, for progress made

is us to We kit little customers that with have launched improved customers. new an actually which kit move constraints additional very for to new kit that an enables

existing of the For some customers the kit, existing to pressure. customers, some we've moved relieves new which

a accommodate more So, completely job supplier of out but to we great our woods we're more the seems to not will done it growth to we've existing yet, able be from that of we get and material mitigate customers. anticipate

optimistic, on. watch but definitely we that that's So something we're cautiously close keep a

Catherine Schulte

pricing to a pricing today? do about potential turf we as how on Okay, the incremental to here stand price great. dynamic unlock Is demand premium times? you Synbio cost or for lowering And there your feel turnaround based

Emily Leproust

more And you not going including is us does in as latter, but opportunity our stream. the is to big of Portland. Factory making add capacity, features a to to us investment in the that the any give product, Earth attractive Future Is what flow give our know we're

where be And an is we speed. there believe component definitely so will there the, opportunity same. the margins that available. to Today, the opportunity add segment premium to we improve more dynamic the a will have faster will get for pricing And about that is

Catherine Schulte

you. thank Great,

Operator

you. Thank

of Our next ISI. question comes Evercore with from the line Kumar Vijay

Your is line open. now

Vijay Kumar

for a know Quarter? guys, taking sequentially. curious. like Hey I flattish orders? first something orders thanks timing Synbio last elements. in here. my timing like NGS timing Maybe I we that that there on order the one some happened Is question. in this It sequentially, QX, element were down trends just was looks had Is year

Jim Thorburn

point noted your orders is interesting on is What for is the Yeah, Quarter, last Synbio. Vijay. that

were because of One end timing in our we from didn't the that the Also just but the March. large at fell the of have it issue come end of at in Biotech Those Quarter, way industrial Pharma a end March. in of June, March the that's of orders done come of customers large sequentially. orders a of number orders

observed ever. are A and The shipments a of that terms revenue -- In of highlight customers quarter. the about. forecast. business, the was with we Quarter all expanding. shipped about of Synbio there genes, highest on last almost XXX. NGS, our customers XXX,XXX as NGS we in genes, to customers lot Gene to continue last by highest both feel was build worth orders and XXXX number gene momentum We Synbio I would good talking We gene roughly increased NGS

So, we're lumpy it seeing Synbio from to good customers. the And a from June the demand Quarter. our was bit March little

Vijay Kumar

optics QX looks NGS of No, The revenues, Understood. year-on-year. And headline, you Jim, updated XX% year for the one had growth maybe know forward the like it's last related the on customer. pull of I the your guidance

I'm perhaps mid-XXs for QX. for maybe getting I to growth think adjusting that,

been an slowdown we've our except QX? north order, why, growth at that tracking in here of basis, XX% would on Given One-off reason Any year-to-date. growth underlying

Jim Thorburn

The lot only that larger now momentum. is of I of would business. we've got part comment a a Europe is make our

million. year, take If last year revenue impacts the felt that We into do we pandemic. QX, So do to XX.X got revenue also the account. our to this time back go in was we've last

out million Regeneron take down order, you there for million. the further XX we're X see can If to the you

look European We substantially. this to we're accommodating would XX.X. And seasonal in revenue got you I Europe. broader at and I keep potential base, We're implications of at the of only calibration is higher impact say we're of versus XX up that looking the mean, our customer if year. the that number forecast customers So increasing,

matter of of So, Delta and through it's I impact right think now. working summer just period the the a the variant

Vijay Kumar

X. a clarify, some being was the for or I heard a as X thought above I X reason ahead. a to Jim, Just Regeneron, that

Jim Thorburn

Yeah.

Quarter. much Regeneron year. clarifying So how I on was X million is Regeneron the overall the was last just

year, X in would come So, would have correct, this year. but X in come last

a to from QX of took QX out, X, you frame just last just So less to reference year. I give it year this XX.X

Vijay Kumar

Thanks, Understood. guys.

Jim Thorburn

Okay.

Operator

Thank you.

(ph) Matt Our William (ph). line Larew with comes from of next the question Blair

now Your line is open.

Matt Larew

where just the of products give up talk Hi. the your Good Maybe about just Clonal-Ready launch morning. impact color about from customers of On recent any Synbio from seeing and Gene there? XX%. you side, interest you're number customers most more preps, is DNA the like [Indiscernible], Fragments, could

Jim Thorburn

at is we of the for Yes. strong us. Quarter was a was shipped, business. XXX,XXX strong another us. record a strong a It number genes looking Gene Had for Quarter

due in the and quarter a look Synbio, a for was by in We For driven was that's sequentially, of down that had although is that academic Industrial But us. had the saw customers orders industrial ended sequentially, was for Healthcare overall, quarter, at to and the pharma strong we large strong a customer. orders. strong chemicals just large down, one March chemicals was pickup quarter. number Synbio. take pharma very business

last customer see So Gene base, our record this you targeting focus and expanding on large shipments working is can quarter. with Pharma

Matt Larew

Okay. terms big here products terms sort step-up, call seems And then like so think XX a in you're if Biopharma way anything of at I being he's just or the in there's to point, -out there inflection and an in 's of received of numbers seeing network some the it the the effect curious maybe partners, market?

Emily Leproust

completion, that more get couple as project to more in definitely data Thanks globally of that have get have new gets Number more that business. share more we X, Yeah. paid it. helps taking anonymized for manner A an and to point things. proof can and we we

little the team. increased we is, commercial point Another have bit, a

on of have each we APAC. now boots and so ground the And U.S. regions in

great So more data. with people

Matt Larew

data of speaking then -- And Okay.

Emily Leproust

[Indiscernible] Sorry?

Matt Larew

you I off apologize, I cut there.

Emily Leproust

repeat we're business. Where Yeah. seeing

so effect is way almost the business get the that's And a repeat just of in flywheel you free. for

And so you with new compound repeat can business that customer.

results that's and so that's what of we see. And the

Matt Larew

great. Okay,

up on storage. DNA last white one the asking in data that was of June was in of terms paper the terms Sorry,

customers you've if reaction potential gotten feedback from or there's curious potential partners. Just any

Emily Leproust

think I so partner that And of growing. on keeps and I'm the needs the alliances people, groups, potential in more partners, Where track, of available. the as companies but losing more number

need to partners options to able accelerate. expect go don't first should and that's one think we our of be but We're And whitepaper growing to I We We be necessarily partners. and So the with open. the with as definitely keeping it. aspect then is, going our more DNA we're partners self-sufficient, step, data mindshare we're storage looking storage working, for. is storage the that which on growing -- as end in the then the the customers so, that is the really data to of something coming for outcome our and realization is that data is lookout minds of more is that be there

I the being that a strategy getting of started expect in alliance in our We're is think acceleration. but things right into still the going definitely are working. I leader I style game, So early direction. think

Matt Larew

That's all. Thanks, Emily.

Operator

Thank you.

comes (ph) Our the from line Tycho Peterson last of with JP question Morgan.

now Your line is open.

Tycho Peterson

Want a to just Hey, better There's thanks. companies, of with a us around higher-level the start wave maybe around. environment. competitive question than

Some leveraging approach. are bench informatics, top decentralized a leveraging semiconductors, some have some are

might maybe you that evaluating about dynamics, maybe as as customer technologies, going forward, helpful. talk And some you how think be So look about these pricing just competitive what of about can how stickiness degree you're think you well. the to landscape, across you

we to. is can this a think I get a lot question

Emily Leproust

think in question I Yeah. high-tech a Thank in were the for we you, technology field. Tycho a Company

make we don't think of miss anything. healthy felt And or we paranoia over our a that I so, dose have sure shoulder and

market are point very definitely a that and student we we carefully. from So of of look view, the

need centralized in As is but dice. Frankly, of think pointed customer there see never de-centralized. fish slice base. market, and And it way don't all is water, our One at Company them the out in of now there I'm that's I a is approach, for And with sitting plenty will we we different see a plenty so codec sure there's the there's you impacting decentralized ways versus to needs. offer. a decentralized

Our interested in in compatible synthesis. enzymatic that base throughput I low-cost. then the And -- dynamics with, with said the the is in customer our synthesis. it's in the enzymatic we've is And technology think better. are past when And another high throughput. aspect

those methods, think be I never they'll of cheaper. all

have so, the I cost always And think advantage. we'll

see so and were we we point, a this frankly market, don't And at we're what pressure but to we're competitive doing. sent on focused the [Indiscernible]

I to -- it's think think ours I lose.

our is And have in key the growth shoot us in sector for to the the is the move investments We -- future a to and us stage. of one our future our hands. next

Tycho Peterson

how around number referenced you Are controls. just a think thinking helpful. know sizing to near in And we the that get on to opportunity the opportunity. you're Okay, then bit covert little RNA the that's kind near-term, you're a just investor I questions of about term? able of launching

Emily Leproust

it's we large Yes, it's non-material, but But do love that have controls, because control and it that is, of of the scientist system XX% the to it's from by revenues the And health revenues care that's and we momentum. And keep the our has one than revenues. it's useful will We we've great launching kept amazing said so, so the revenue. less our and rNA seen what early testing. new disappeared, controls frankly, margin. the

we stream contribution we glad stable it provide very for and not the material, that will it a Again, revenue pretty so I'm for us. but brings. have And it's revenues both the

is And COVID therapies, where development testing. therapy opportunities antibodies. as be area also needed that will to antibodies, going antibodies have contribute is time, a they'll there with for then I always not and We the the us the I be that need of are be people long think think as always there opportunity and that vaccinated we to are in for

of antibodies that keep So some therapy we as out-license have think and to opportunity on diagnostic we we the will as pushing we've found. well the axis

Tycho Peterson

helpful. Okay. That's

the can the I interest but the I'm I'll talk to Lastly, wondering, about little guys? start maybe coming that of of together two workflow them brings in put separately unrelated, you capacity what Genomics of just Thanks. of the The Factory that online? quick some Future, for you pre-sell deal, And can time. ones NGS then on that what degree to you bit ahead to

Emily Leproust

Thanks.

a think So on iGenomX, know, you macro the as put solution into we target to market have want we've we that steep sequencing. a unique there. convert We

was at it not moved it if would Regeneron same have possible. points proof to not cheaper time. use the is that Our NGS

is, is can it want is used. the anything switching. which proof-point same there daunting. One that the time be there, some that a is buyers with were cheaper bit at to is which you recognize contents Twist, be So we Because there content, can it a

Regeneron we to out that to switching being of And content the available and day. which the sale, area, have process thousands second friction so, samples around able automation then for a and licensed in is

to see heavy base ligation PCR a per-retail don't process process, lot process the of the That's I a easier. very with we automation. it's replay doing, year a and but and know, trivial next workflow. litigation, engineering automate you sharing have As on the

so give DNA that's help us know capacity. I'll a is a very initially so want that comment tumor that say it micro workflow but of us in demand automate that Factory Jimmy second brings a then line, around based on And be PCR in us the And there, Future sequence, will and the to not. easy preselling snip We what that will on probably of line, the your is Synbio they the FERC product now. they reconversion.

there. not But they is come." of will it the so not a there done. build and that once for not so, at time, pretty a are dimentionization lot "let's certain it, same is We a demand concerned capacity be too we're it's to And there's the about

Tycho Peterson

you. Thank Okay. helpful. That's

Emily Leproust

Thank you.

Operator

the you. questions closing Emily at call I back further to no Thank for There remarks. return would Leproust now Dr. time. this are

Emily Leproust

thank Thank for much. you And joining you today. us very

Twist; a of the know, Biogen's you the bridging an reality our the moving as are, we're We of with into We business. Sensity of remainder building year. promise the exciting momentum genomics maintain

you concludes foster ahead, this much. very to ourselves are executing the our and with place today's that, comfortable and progress to in We look months aggressively. you in team the sharing we have We Thank with innovation, call call. forward

Operator

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

You may now disconnect.

Twist Bioscience (TWST) 6 Aug 212021 Q3 Earnings call transcript