TWST - Earnings call 4 2021 | Twist Bioscience Corporation

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Operator

Good day. Welcome to Twist Biosciences Fiscal 2021 Fourth Quarter and Full Year Financial Results Conference Call. [Operator Instructions] As a reminder, this call is being recorded.

I would now like to turn the call over to Angela Bitting, SVP of Corporate Affairs and Chief ESG Officer.

begin. may You

Angela Bitting

quarter Good all Michelle. Twist I like XXXX would conference and financial Thank progress. business you morning, for thank fourth fiscal our of to for full joining to year call results you, review everyone. and us Biosciences today

press are at to our this acquire financial the morning, as available entered website we both well release issued announcing into which at Abveris www.twistbioscience.com. our We as of results release an agreement

Emily with Dr. will and progress the direction. and are discuss CEO of call and of operational Twist; we'll today's on then businesses. report And me recent of Leproust, Jim and to financial our Twist. performance. Co-Founder With upcoming for Jim our our Twist call open questions. on Emily a Emily milestones CFO on back Thorburn, will will begin review come

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

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

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

fully of issued or subject expectations at resulting pandemic the impact. today predict could risks Securities These regarding and date may us are are matters COVID-XX materialize, full and earlier the filings as actual this those any set Exchange from as with include presentation to cannot, economic based and business more Our ongoing risks of statements the press results the and to in periods described we financial available as this we uncertainties the time, hereof these and impact that extent differ The information results release cause the our and and projected. Commission. actual forward-looking on in not materially beliefs to those those in forth well of

to any statements, update except any required by disclaim law. forward-looking obligation We as

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

Emily Leproust

our business Fiscal year and expanded In this segment biology will our of choice. provider customer solely synthetic leaned It service to our was you, Angela, into biopharma. revenue. We a everyone. accelerating good in defining the morning, from and a business company NGS Thank we parallel, while XXXX a diversified for partner Twist. bring base

storage, data working build and In to data across the end market alliance novel focus continued applications enabling our growing awareness storage product-specific this of we we've engineering Overall, are progress large storage solution. from and within a towards markets. moved DNA

important talk and announcements time last how will strategic well pieces today weeks individual as the directions company some We the have over X our overarching as some plan. the within take to made through fit the of

backdrop year, of of increase over of $XXX.X over we XXXX. global increase a $XXX.X And reported reported revenue fiscal Against an for XX% record fiscal of pandemic, the the in million we million XX% orders, an XXXX.

increase million, $XX the tough had of with of orders For XX% an $XX.X of single we where last year reported large against X%, quarter, revenue and comp $X order of million fourth million, and respectively. a we a

return. with our antibody held specific for nicely. vivo today complementing Abveris campaigns model. We is on platform. a Abveris They operating focused with fee-for-service using have discovery on conducted design antibody partners morning. and announced discovery a of a many company, to businesses. customers They have in XX about biopharma Abveris novel start this agreement capabilities currently Diving XX% a into the definitive I'll privately mouse as discovery acquire synthetic rate we very discovery see

and our optimization antibody antibody technologies discovery screening antibody own augment Following the animal-based the and acquisition, discovery capabilities. method will

their headquarters and flow be the an established customer employees believe positive. will The discovered following Abveris operate company will XXXX, acquisition. Boston antibodies their of in Importantly, clinical cash in has trials. in the business XX fiscal base they have that X continue I with in to

look Taking to our biopharma a step back overarching at capabilities.

umbrella. Following synthetic the can X where In has first And levers discovery integration the against of every approaches We in X complementary synthesize those through desired, generate a including libraries DNA human screening under leads. sequence have approach, platform robust we will we Abveris, Twist our have competitive found antibody discovery advantage targets technology. repertoire. only these synthesis the

then and the specialty of is antibodies. sequencing approach That another resulting is an platform. with animal a generate Abveris to antibodies immunized Second, harvesting from target the and

technologies needs Third, learning artificial intelligence entered with to leverage antibody to we antibody have into technology through refine several and companies and to screen machine collaborations library.

have Twist unique partners and X generation. offering our our for optimization will as as well capability comprehensive With the discovery to antibody approaches and a acquisition, internal all antibody

have process. addition, we support the products total In that discovery

provides IgG through Our further Oligo be library antibody identify monitor offerings, tools starting customer the develop used to planning. targets, resulting with the and protein. diversity a and can can be NGS through Twist moving our Pools way gene has an used lead to to our tools Once the [indiscernible] synbio need, during all

as discovered of through been [indiscernible] biopharma proprietary Also know, COVID-XX we've in our assets process. biopharma, you working months XX

We with have put to team together been working clinical development hard commercialization and expertise. a

our to Biotherapeutics, provide to funding. million Revelar have and up company. last antibody COVID-XX And $XX biopharmaceutical week, Revelar bispecific initial in independent treat licensed launched lead an to to committed we We

program can of royalties Revelar additional milestone up course next and Twist. to each years, addition, payments the X additional targets for license subject the X to In over

it concern; though subcutaneously, which first from treat unfortunately, molecule. the that antibody as that long-term variants COVID do onset have and and concerns therapeutics of emerging antibody days an safety within class, We the time. The have seen remains until antibody may data for this neutralizing be be taken. not antibody On far among and to two, noted the not on a neutralizes all While as offer overall also there for treatment could will promised is best-in-class immunocompromised over therapeutics vaccination vaccines. as that delivered generate in recently widely be may in one, who the be for complete therapeutics vaccine publication, don't protection robust long the opportunity antibody regimen. to patients well space promise, need COVID peer-reviewed know the leaves taken to we recent therapeutics needs provide this effectiveness, effectively appears therapeutics it broad that global We declining capabilities X show more variants be the immunoresponse believe to a their could oral see of typically that, for

to $XXX participate it our XXXX, the a the receiving COVID will potential sales. and approvals and expect commercialization is endemic put is We stay. here million mid-single best in it antibody clinical in and to on antibody subject the of any hurdles. believe disease, payments experienced and commercial clearing regulatory in to sadly, of forward trials and that for maximum team hands appreciation, expects upside over We digits become royalties COVID other to an this development to development in begin Revelar through equity for clinical path

[ us hits and quickly our target. biopharma philosophy minimizing that fit improved This validated a with ] internal developing an of pins profile antibody pharmacological biology risk

to whilst biopharma milestone licensed experienced mitigating through of This of a We development allows expect to X would upfront the X in risk and be from Twist team. participate additional payment. external come platform. vehicle approach that our any non-COVID management development antibodies additional the emerging up royalty additional of for the of targets funding with Revelar Each upside an

Strategically, our we a what can biopharma, platform have of to for vision add synthesis DNA this industry.

Abveris, with programs. XX a XX milestones with completed built Of the By and them. XX active partners now royalties have programs, associated XX in have required and onboard. have the completing XXXX of base to pending in XX total the We and will programs approvals. of acquisition Revelar, more clinic have expect we customers we And the antibodies Twist have coming through

$XX synthetic quarter. to revenues in orders biology. in for fourth Turning million We reported and $XX.X million the

financial biology from play largest [indiscernible] in both base. into we the [indiscernible] the requirements and application of capture will make perspective needs their customer biotech customers We have fiscal most fiscal in our looking impactful Over 'XX address the and us health who and and the that evolved own more seeing are for of believe our number the to large DNA. customer 'XX, of and we and out synthetic care, enable pharmaceutical to course be

Oligo growing We using libraries. of a number customers genes, and Pools our have

deeper Our a biology customers new diagnostics to use products the these of development ultimately understanding to link gain of and genotype phenotype therapeutics. and for and

some time. During impact shut short saw an the needed quarter, we down of we period where for event production to from a extraordinary

and were determined issue, we still quarter. resulting X customers, orders. to DNA for these some to gene that genes. the within weeks backlog order in the of delay experience but None QX, we sequences We synbio successfully in included in did able clear a this genes unwanted were reported shipped were robust During troubleshoot our

in we recurrence We that did further cause brief to And resolve have and identified the believe October we root production. able interruptions now we much expect do experience not in were more a quickly.

large highlighted the the a in increase the can to any At This recognize have demand increasing in XX next but we XX of also customers same meet Area our significantly Factory we building need at of to ongoing outside the capacity from to arrive. not the need orders and meet dedicated in the Bay We we demand event we the only for are currently additional headquarters machines, which our path Portland. for increasing capacity ensure when Future months. that time, demand, our surges to

per XX,XXX in capacity by we XX,XXX to San have needs customers fragment to continue make and approximately that XX,XXX XXXX. online meet per genes we we [ the genes Future South December bring genes while plus And ensure month in the of April NGS of clonal Today, are the of we our to month capacity products. Factory by Francisco building and per month of XXXX ]

to exome single performance. most a million against NGS. even reported the million, launched We the products we record shipped offering of best-in-class including offering, comp with $XX.X Turning quarter to where Exome a We XXXX bolster $X order. our comprehensive X.X, several in revenues a

standard which leaders in curated through their key introduced sold Twist. In respective Alliance addition, we from our kits with products, are opinion fields content

have a content we with Panel, from Diversity from clinical quarter, SNP and exome a Panel This the Broad on panel Genetics pan-cancer robust the launched the Center. building Regeneron first our from Alliance AnchorDx,

focused We also with rare plans announced launch diseases. to Centogene panels on

milestone set significant Storage a be flying For achieved shared to program. the with we of test IARPA's and provided data single not in team MIST X day. us with in under DNA Twist sequences the chip to in we passed came October Molecular evolution synthesized were or and proof-of-concept The on IARPA's advance colors. storage, sequence a micron Information a

demonstration the that confirmed adjacent on individual no micron we that spillover proof-of-concept dimensions. or sites. our site we X technology into to validates chip a addition, This was In DNA with can at ability critical synthesize smaller achieve cross-talk

phase customers. groundwork will be We sign which Hellmold we in the commercial are chip, the for lay release chip. currently In To to meantime, Steffen early design access Western the alpha will full first our end, hired that at Digital. in October, previously we the

relationship storage, technology data and in solution. leverage preparing launch, over disrupted offer focused this right and storage foundation suite help early with With in we that will ensure of important the the commercialization we to we in Steffen customers made product advances carrier define storage commercial strategy are laying the the our now product build significant space. have access on for for

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

James Thorburn

Emily. Thank All you, right.

of as had we our quarter Twist, a another out year Revenue to year the to for and million our And growth on million, 'XX new FY was $XXX our million, we the noted, sequential brings the FY Emily which was million of a of strong growth slightly and exciting closed XX% year-on-year platform, above top XX%. for and guidance end $XXX.X continued year. record a and dynamic 'XX for revenue the this a we from to X% note. increase As scale of $XX $XXX

margin FY for million increase compared takes FY was orders to XX% in our We in XX% approximately the X% million. the year-over-year. for Orders XX.X%, of were was year This gross to shipped the and 'XX. and total fourth our customers XX% total for for the X,XXX to as quarter that's sequential year a and Gross margin $XXX up approximately quarter, $XX.X 'XX. year X,XXX from

the and ended cash million. short-term of $XXX year And approximately investments we with

products. in now FY is and for revenue $XX growth accounts Health million And care synbio NGS, that's growth million of with for XX% of a year-on-year, business our versus XX% largest reflecting 'XX. FY biopharma $XX.X our and segment demand our 'XX growing in in

in million 'XX. revenue 'XX versus in FY chemicals $XX.X was FY Industrial $XX.X million

Even though million FY we're on focus tail. $XX.X $XX.X million many revenue continued impacted 'XX, reflecting the growing operating long academic globally, in versus a academic labs our in were where was pandemic our

Agricultural FY with revenue was flat $X.X million, 'XX. essentially

orders. very XX% brings compared We $XX.X the total from high clinical earlier. quarter on to This base year as Now NGS I'll fourth million on for provide and applications, million including our the applications. MRD, growing growth with a our a which biopsy, we reinforces ended commercial for NGS more and robust color our in approximately fiscal our liquid strong the million, approximately orders opportunity, NGS growth of in note which is $XX to controls year-on-year expanding orders 'XX, referenced increasing $XX portfolio, comp market expanding base adoption customer product investment organization, with increased and RNA

of customers. And million for top in confirming seeing $XX the as million XX continued quarter, the previous XX orders compared top received diversification quarter, to footprint. NGS customer placed the the During orders accounts approximately XXX approximately our $X of approximately from we're we

Our continued increase pipeline opportunities quarter. XX Twist we're for an on have that's -- to XX tracking last in noted earnings from larger up our XXX from we last we and noted adopted XXX accounts, our call. now in that's And and our scale.

of Now and includes from to IgG, which Oligo growth turning and fiscal growth of DNA saw libraries care million orders, genes, our up with is major up quarter the rose driver $XX.X fourth the 'XX, being quarter segment FY of million preps, We in which in the which quarter, in to $XX.X million health third last a Pools, synbio. the to growth. $XX.X in from synbio robust 'XX, XX% sequential

Now to biopharma.

$X.X as discovery for to $XX.X new continued fourth rose 'XX. we growth year, compared $X.X to the in XXX% build quarter We is continued fiscal customers. which to and business million Orders as in biopharma our repeat antibody million million were our of scale orders of to a pipeline the

with noted but trend into product translate for note, not XX As which earlier, group. XX Please royalties. are of we partners active may line a programs, milestones and XX have provide orders each revenue do

from revenue. Now orders moving to

for quarter for growth. was brings versus in million As million our fiscal cumulative revenue million and representing 'XX XX% noted earlier, year-over-year $XX.X revenue fiscal $XX the approximately $XXX.X 'XX, to

quarter revenue. it's 'XX, $X for million a that sequential NGS for quarter we growth approximately million we scaled product earlier. the of revenue to XX% of the FY in which the In XX%. mentioned And exceeded $XX.X million X, $XX.X notable of top included the accounted our same QX, X customers

$XX in For the growth XX% year-on-year. revenue from $XX.X year, NGS grew FY to is which 'XX million million,

million synbio product the Europe. growth the from annual million, due and to XX% in or synbio $XX sequentially for quarter to seasonality approximately compared quarter that's the was year-on-year. $XX and revenue production Total aforementioned Our $XX.X in revenue approximately million million was $XX down issue previous

FY 'XX. Some X,XXX in include of 'XX, FY customers synbio to from the up X,XXX highlights in shipping

that's genes and in million FY increase $XX.X 'XX. from Our revenue million, was an $XX

of a XXX,XXX genes record we an shipped XXX,XXX number of that's increase 'XX. approximately also and FY from We in shipped

Now biopharma. to

was for year quarter and revenue as making we Our expanding in the And to we're million serviced our was million, progress the 'XX. customers, full approximately the $X $X.X XX platform. $X.X demonstrating approximately in million during compared FY revenue year,

cover briefly FY our now regional for 'XX. will progress I

of reflected for and international growth of FY is in and with business. XX% million EMEA accounts organization commercial another our growth. worldwide terrific XX% $XX.X million, had year global our out year-on-year EMEA building $XX.X revenue in that's investment Our our now versus strong 'XX

$X.X grew million APAC and to great from revenue year FY had million in a 'XX. $XX.X XXX% 'XX about FY

FY includes 'XX. was compared 'XX revenue million FY $XX.X to $XX.X for million as for U.S., The Americas, which

moving P&L. Now the down

approximately the approximately Our quarter gross $XX.X of the FY XX% quarter. was Total XX.X% $XX.X year margin up for million XX% million up revenues, prior was of XX% in from 'XX. or or revenue, in from margin

operating expenses. to Now

for was to for $XX brings R&D R&D million. million, to the our DNA compensation investment and head $XX.X total with biopharma. in FY Our that's $XX.X in million in quarter and major count increased primarily in SG&A, R&D which associated investments our due X from operating storage R&D was were investments $XX.X and 'XX 'XX. quarter includes external our up in and expenses, investment million services, to which The contributors FY higher also

compensation million, to was Our stock-based The quarter increased in and brings compensation, $XX.X of of Portland the to commercial build in X SG&A area. the weaknesses in are the to lease increased SG&A year out Francisco footprint in compared as the our which material continued as $XXX.X million fees expenses in higher our million audit primarily 'XX. and increases for organization, $XXX.X we addressing with higher San Future and associated we the as our Factory expanded investments FY

loss million which before of loss was the million $XX depreciation $XX tax net X. quarter And million. includes $XX for for and and for our was compensation year year million, $XX Wilsonville, improvements. equipment million, was CapEx $XX for of Our amortization the total facility $XXX for including million mostly and stock-based deposits

the Given end -- supply to challenges, our chain the $XX to strategically million of XXXX. inventory $XX we increased global million at have fiscal supply compared

We $XXX and year ended of cash approximately million. with investments short-term the

Now here 'XX on FY are updates our guidance. some

we saw there quarter our on X and remains with optimistic and in strong time, noted, are pandemic. at opportunities, bookings the uncertainty we the As associated same

guidance For $XXX 'XX, acquisition in the guidance fiscal million FY 'XX, million. quarter And is $XXX $XXX to X of the the completion $XXX including Abveris to range revenue million to million. our our of revenue expected in increases

'XX. fiscal estimated $XX $XX in compared is as million million in to million range approximately of to revenue $XX the Synbio to be

our of to in to as be to $XX as approximately approximately 'XX. guidance million compared approximately million fiscal including estimated compared estimated the million 'XX. to Abveris million acquisition, $XX million $XX $XX $XX range million Biopharma for is is revenue, to fiscal $X to anticipated NGS Our in be

revenue $XX the shutdowns the production of pressures and prudent on COVID Europe, million issue to believe $XX million, guidance in the the reflecting call. we quarter, first For discussed of is the holiday range upcoming impact we're in projecting earlier the which we

projection gross Wilsonville reflects fiscal to XX%, Our and, the associated is 'XX with margin costs our XX% range which wrap-up.

gross XX% costs, will be these margin to XX%. Excluding

biopharma, reflecting SG&A, fiscal includes costs there's $XX $XXX and fiscal million approximately for expenses, million; $XX OpEx compared are depreciation. storage, commercial investments Operating increased R&D in our higher million $XX expected and 'XX, and million; $XXX plus comp $XX to 'XX organization, as data Portland which million; to be million of in approximately higher stock-based start-up

R&D due expenses primarily Our $XXX biopharma. for storage from year up projected the to to data million, are approximately investments in million, $XX be and

loss expected depreciation million. comp net expected to $XX year $XXX projected to be is is approximately $XX Our approximately guidance be to is for And the million. Stock-based be million.

$XX FY investment with Our is CapEx $XX million in to to $XX 'XX for Wilsonville. million approximately be projected million

record continuing up our and demand In Twisters streams. we're thank strategy, execute had summary, our base significantly another tap enjoying on revenue to to our the for stepping from another We to terrific all investment new exceptional we'd like we broad customer delivering growth. year quarter continue with into as

call And with to that, the I'll back now turn Emily.

Emily Leproust

the ahead resulted continue amount to significant and we opportunities for both areas execution acquisition and accomplished XXXX We and NGS, a in across markets. fiscal execution Jim. see you, huge customer of for Thank with growth in tremendous revenue business. biology synthetic The all

positioned introduction. accelerate With in and vertical. accomplishments biopharma to the have stage set of Abveris, market are our achieved for transactions strategic data date the recent And the we engineering well storage, planning we commercial and to Revelar

competitive X remains market very which of DNA opportunities, While and differentiation relies success. our different on each at the silicon-based platform, areas these core our synthesis business address

well and focused investing will year our In share to on biology, XXXX as fiscal customer growing synthetic expand ahead, be business for a base. success. future build we plan to continue Looking as market our

We synbio in biotech We for especially up and fiscal reduce focused time see believe Factory We from customer early will currently expect positive genes. on bringing of turnaround Future we turnaround adoption remain of to the benefit make to to launch feedback the for and access IgG year on their customers DNA commercially reduced who pharmaceutical our building customers. for XXXX. own the begin time, base,

NGS, products grow revenues continue For our our existing RNA expanding around we while expect capabilities and preparation. from library to to

expand we and expect acquired calendar year, for intend microarray our launch library Alliance panels. We SNP base conversions this product through customer a and both to the transaction XX preparation iGenomX we to

appropriate seeing biopharma, our subject For [ the clearances. in to the forward we antibody in clinic first look XXXX, ] to receiving

In clinical add opportunities partnerships additional addition, as a and participate of we programs advancement. greater to as well wallet find to intend share rapid and post in

We antibody to discovered at X out-license expect by mid also XXXX. Twist least calendar

access advanced this For will MIST to actively data continue DNA customers drive to intend DNA on evolution pilot the alliance. production. and medium Also early and we new data to to with concert IARPA's market storage, execute storage in storage program we continue milestones for

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

Operator

[Operator first Cowen. with Instructions] Our question comes Dan from Brennan

Daniel Brennan

contributed? Maybe impact start for how anything And that from problem first from baked on you the there just just, your the 'XX much within Could quarter. is synbio the in fiscal guidance that? cited one, in quantify to

Emily Leproust

I'll order quarter. finished were notice QX for And and maybe in the No, we as Jim issue in well. that 'XX that both guidance. the the headwinds We jump we strong, quantify did included the and very and fourth revenue the will fiscal no, guidance in note we didn't this actually did impact from -- XXXX. in

Daniel Brennan

it. Got

a baked for the fiscal the you customers 'XX, could of the guess rate given I million Okay. have can growth you sense of us looks there's any of in. the I more the on that revenue beyond they -- outlook you've but sense kind question think -- sense first And that the fiscal to kind then maybe business is, on on a a give of like do forward? about we How how $XX in little particular? and we about know think kind 'XX? of million go acquisition, maybe do of color give around $XX

their there Twist is them? any conflict risk to they competing given Is own now Abveris there its from view that that to any or that, looking as develop internalize is related own antibodies? then their -- technology customers you And with

Emily Leproust

part of the part. question start let first So start and the I'll I'll with the with the second part Jim let I'll answer I'll -- and first

it's needs humanized. as generate antibodies far which very be that synergistic. They and to competition, use the As approach, no, individual actually, dual

so to that generate goes are platform. -- directly hyperimmune there. don't don't the Twist response targets the And There that some even in immune have amount

approach perfect to approach that's rate. So Twist that heat -- maximize the customers want with

And in it so they it's very to on parallel, approaches and both actually, do synergistic. so build it really complementary other both adds be enable each platforms and -- will

want the on you question? do financial Jim, comment to

James Thorburn

Yes.

We So Dan, seeing through revenue yes, obviously reflects revenue that about the this months the We're optimistic. million roughly growth year. in significant integration, business. $XX obviously, working XX anticipate

from base, XX% So we continue with update the to but we're right terrific growth roughly that annualized develop that now, estimating from the business about Abveris. obviously as team

where and we're tough expanded the of our is which an well. XX get footprint terrific biopharma this bringing we're some team, roughly it's as our organization advantage And complements customers, in talented adding for synbio and highly business. is what synbio to really world customers, mean, we're I with One doing Abveris in talent,

Daniel Brennan

NGS XX kind Could for how the biopsy look were is of to included some find impacting And liquid were higher, takes? the maybe of to XXXX. just be puts kind one, maybe final on key what to and through If I'd in in you back And levers? outlook be out number are fiscal that, XXXX speak that interested we the a Great. NGS. guidance, months then and

James Thorburn

of it's biopsy. launched customers our I -- we're bookings under our a tracking making We've note, pipeline liquid And ended to customers they a the expanding guidance million. Number as prudent right in for continues opportunity $XX seeing now, grow, product in 'XX. in Yes. our opportunity mean we're strong big almost number were we're Definitely so -- now. of feel XXX in we fiscal nearly MRD. exome, mentioned, Emily Definitely large portfolio.

the to glove increase invest white to service, R&D. goal expand is to give Our continue commercial continue continue to in product to portfolio, to in organization

working well optimistic terms we're and So the positioned customers. feel long-term with opportunity larger in of in here, the we

Operator

Our with next Peterson Tycho question from JPMorgan. comes

Tycho Peterson

want with of I'm to The slide up. I the 'XX to just reaffirming midyear going to said target you're Wilsonville, kind start open confirm XXXX. it

And to guess, short think how kind do as ability generally point. about of prebooking scale think at capacity I this you're about we capacity? capacity necessarily there, so we mean, I cycle that you're then not your But

margins. corporate Jim, to up overall. Wilsonville about as XX% margin And progresses I about gets know around do impact the capacity you're we and year talking on think XX% running? How as that the

James Thorburn

Yes.

On So quarter. fourth the we're our ramp question. initial starting around bringing out good Wilsonville,

we for $XX to G&A ramp towards estimating If for $XX million million. our you step about facility. is Roughly million Wilsonville up -- about back, the year, the overall million of in and end the as the impact year impact we're dollar million the going is With $XX $XX back OpEx. estimating have to $XX approximately

the been impact in that's So QX.

be we genes. address it is normalized. faster I able the for to you has pricing step range. as XX% in if margin mean as -- But see our the the The goal is Wilsonville, back, well to we to leverage to XX% opportunity

is of lot possible. commercial to the early why the in in That's that made hire. capital tools, investments quickly a as investing as we're We've goal our business we're terms So of starting scale to organization.

very you also additional Francisco. in bullish conference the terms of customers. the bio tell San in call, we As are can We're from in capacity being numbers

around being outlook. uncertainty our the there's with pandemic, we feel prudent Although we're

Tycho Peterson

that launch? milestone of before concept there you for ready Can hear business commercial helpful. And are what's milestones That's to launch. talk data for get then tracking early access as we just nice you technical the storage, be Emily, on left Okay. perspective about should for proof XXXX? from a

Emily Leproust

technical keep down going a the in to From is dimension. perspective, next Yes. step

So that working and this micron do. last have X year, chip the guided we we'll year, we

going So the down. is next keep to step

is able and physics now so key confident make to been each and and chemistry that And grow mentioned, X-micron the really it very technology we understand we've for X-micron to the the now as Cross-talk, other. we issue. and we are

the next that we be super our why commercial to first chip. that's mention so have alpha And chip will the confidence

So we're chip. in alpha that design phase of the

will production. phase be Next the

happen the after a debugging when to that with make. are our customer. And The customers. the be the us those sequence same program In the Next real first development done, what able we'll that's chip. MIST with phase of this use thing be it to is way will like coming that saying, will to quarter I'd similar to happened very with

platform the and the Steffen going is In to to mentioned forth We we customers. few after be happen. to be and customers We NGS medium are customer it's the is work terms getting first process. release storage we as make the desperate, in a that where have of the room that optimization that very there will Hellmold customers know alpha great chip environments access fourth it's early of work, past, signing get environment. new customers about in interactions extent, to biopharma. for team and the to addition And synbio, important for the it's to that frankly, that launched back a executive and milestones, on know the a to now onto forgiving for focus that And that we'll

Tycho Peterson

updates. as the downstream development mentioned antibodies that one, guess X some get of royalties? the first to do think they I Abveris, the should just business about additive economics? we clinic, Last on Great. in on and You kind being milestones of

Emily Leproust

entirely this fee-for-service. at point, At point. their platform this Not is

that upsize economic able we're businesses, integrated potentially we'll sale opportunities the we to think have combine gain. As I to

Tycho Peterson

And was you the thinking with spin? the then opportunity mean data Revelar I antiviral from the pretty Pfizer about Merck obviously, for and good COVID. around how are

Revelar term on you non-COVID longer side? antibody Is efforts some think in how monoclonal then with development mentioned, about your that do context I could of of the opportunity? the X risk So you that therapeutic think, ultimately your own compete programs. And

Emily Leproust

the business. way Not having No. the unlikely Revelar are. advantage on targets we working that as will we'll starting structure definitely It's be same if first. they we the were, And have of the

synergistic. very it's So

-- which antibody. COVID clinic XXXX, Twist great us the are Twist in be assets enabling is the in to And first for

fit keep we same funding. the by We the risk work Revelar And idea is as syndicate having At an have the working team. upfront the very structured. additive. supported very by a it done opportunity And great experienced there's external at to and time, through on appreciation royalties, much equity little issues upside of is risk way milestones and so nice it's the of

Tycho Peterson

one last hop before I for One off. Okay. Jim

sheet. got more the to million, year the balance sheet You've CapEx. going about think, loss cash and to $XXX be raise about on burn so you with The just capital? potential needs or this $XXX net is on I million you're balance in Can thinking and how talk

James Thorburn

can. see we're and Yes. company a bringing And balance to going lots We're opportunity the as I'm Scots sheet. forward. up this do conservative terms keep data sure year. see 'XX in We we the Wilsonville making as have upside growth strong in storage. of balance we We in a opportunities, always, growth the investing as I'll And be of And finance strong the 'XX. evaluate for our We want sheet in business. to

Operator

comes Schulte from Baird. with next question Our Catherine

Catherine Ramsey

it the impact cause maybe root I guess, just there? issue What your that Did was production? mentioned. the all of you first, to going back production

mentioned but first quarter. the you the And synbio there clearing X an backlog in both called fourth revenue also in and be would to impact that out weeks, then

did the any the customers when delays you disruption to think So And you there? occur? do lost due

Emily Leproust

question. you Thank the for Yes.

August. So the happened in issue

gene absolutely synthesizing was And issue you It's compounded know, enzymatic the frankly, with reagents cell difficult. actually the of the full. fab steps, steps the combination steps, that And As chemistry is and issue hardware. many very an fact by was there steps. in was

actually hours XX/X the capacity, day should no the it use. when so And is that add backlog. can you're there's the when in to extra in at part you it takes than clear And of longer issue capacity, you

San up sure when that's of to in able we're the to that basically the problems in do the meantime, adding reasons make happen transparent Francisco we So catch side. on very make capacity why customer and one are quickly it

losing and it conservative long think of a terms the near I the puts customers, is a on In long-term impact, ] start guide does -- QX. necessarily for we us foot bit as the there little don't but [ term, back

us Now cause. that prove solidify we It's hard a October, really we the second helped it it's very the negative. that that root of totally to time our understanding briefly saw And believe actually eliminated. in now

time understanding happened very in and But -- happen confident scientifically so only of we're understanding again. what it tell. And sure won't making will

Catherine Ramsey

COVID about talked of could then the you And Do those Revelar. to from Twist-discovered to 'XX the What advancing indication the many you are XX and advance the about clinic? the have Okay. in treatment those how Got expecting with programs any first clinic it. have in partner on antibody side? of any completed when

Emily Leproust

of a have we they of are. -- lot on So visibility don't a where lot flexibility

any is that indication them have moving We forward. not no of

as are. As far they know, we all

future not clinic. due in And the antibody are so in to distant we for the Twist be too

don't the the visibility know antibodies in And would antibodies the definitely, But the COVID one. be them. ones have first that I excellent we so if COVID are

the the But antibodies how programs we completed. are see quarter increasing same The many many time, that how number in at is -- nicely. are reported you can quite

increasing the and short-term clinic. more Twist And goals so in just the for more we're antibodies

Catherine Ramsey

to was on last out parse where existing business you were, their Okay. you new than little bit about try we into you number? customers for as Came could in just the with NGS we just that we higher think customer great. one And to If back versus question Dan's me. what maybe just for so then go ramping 'XX. guidance from expect wins visibility Can that revenue a

James Thorburn

and and So of in to what's do our going fiscal customers into good baked comes the the that revenue the we'll that's validation forecast. same of We and the track with revenue our expect be of as production volume But pilot for increase ramping question. bulk is from those in ramp 'XX, come the from new assets their revenues. Most to test.

growth of break the the as the year. of and of revenue pilot, into, bookings, don't out number how our But about much good designed We we're much the with assays how QX QX customers, for forecast is yet. types orders feeling validation we're

Operator

from with Evercore next comes Our Vijay ISI. Kumar question

Vijay Kumar

on print. Congrats the

questions if see call. XXX me I can on Let the ask

maybe were north the revenues conservative? tough think guys to perhaps base Ex you did, the I that Jim, XX%. did XX% to 'XX, or XX% fiscal organic well guidance is just about million, guys you a Considering acquisition against that's of starting in comp low mid-XXs So that revenue mid-XXs your here. with $XXX million $XXX to

any much like XX% versus 'XX be against of to of a XX% be might growth seems growth fiscal it this factors slowing seeing is seems you NGS conservatism And perhaps in that down. How in the business?

James Thorburn

Yes.

is So of well. the in terms business going business,

still obviously are in We pandemic.

begin always want be in thoughtful. our We're You're seeing Europe. and always lockdowns and Vijay, prudent guidance in -- to to reappear we're

continues an going large major are sales to want scale. investing to number larger thoughtful the our liquid And in The biopsy, well. time, the extremely wins scale, products. in our with opportunities in market we commercial terms at be some is same NGS as terms Yes, of But launching We're customers in We're business organization. new guidance. of of example. the there MRD the

extremely of We team talented at in terms have Twist innovating new an products.

the obviously see And for $XX So continue you to so I that, FY in I get the 'XX. million $XX does addition coming sequencing cool. we'll And guidance we as good 'XX and through But think as right good us feel year. to think in the market opportunity down, the -- update we the now, about FY NGS there's costs to million.

Vijay Kumar

of sequentially grown guidance, our the Sticking Jim, in you fiscal 'XX, you million again, up have timing were if flattish. Historically, year for that's $XX Last guys on QX orders, of comps, sequentially. we the adjust to sequentially.

a recognized back baking in manufacturing of flattish? Why in issue? be the kind in should is what impact the are And QX? And half? you QX sequentially in those Is factor from that revenues

James Thorburn

there's X Well, issues.

higher all, of million. for our the business. Revenue Europe of proportion $XX is year First was a about

$XX So this significantly from scaled previous million year.

And vacations has higher a got and got the also, So to we've be Christmas European impact. shutdowns realistic.

around of of that globe, some obviously, spots seeing are We COVID the pressures in Asia.

we're belief guidance right production $XX calibrate the to on is And is going Europe the impact what's You're And our $XX range. issue. million the in of now. to prudent trying reading in million

Vijay Kumar

for on really guys that's one like that free the step XXX-ish a It net of to a guys million big mean The guidance 'XX. cash step cash you that's have looks massive hand. break for of driving loss Jim? this, Understood. in side? cash flow flows, is $XXX fiscal on What on I about million, up your $XXX from you up. enough even Is

James Thorburn

investment up $XX We're -- increasing a million at is the stepping up The of continuing in to million. investment we're $XX -- [ $XXX overall is about bringing couple roughly to this of biopharma in stepping year investment, terms up ], investments commercial in $XXX The million. OpEx biopharma. in things. our We're Wilsonville this We're $XX from million. ahead invest coming year in data million storage And organization by Wilsonville. CapEx of on stepping

really capital. base from a team Yes, see because we We're continues we're We've innovating. the scale. coming got demand in deploying customer capital great Customer to deploying the future.

at So opportunity we're a long-term scale the to marketplace. looking invest in this as and up

Vijay Kumar

then And you. last Got one. one

acquisition, much Is Jim. Revelar it is is, know guidance million if biopharma And I revenues, stake. how of customer million of of pretty biopharma strength? the million a between XX-ish driving $XX equity Your of That's for healthy we're somewhere that? $XX the a $XX to the year. at Biotherapeutics you biopharma yours? up doubling a million ex looking $ What right, to have contributor is

James Thorburn

that up, nothing in step Revelar. assuming There's for Yes.

a seeing of the over synthesis have got step biopharma last up organization return There's back. and built We customers on in rate in enormous come XX-odd demand the invest year. in the continuing we've commercial an We're investment that this the leveraging DNA up our just based invest And lot to is for and growth. and platform. you're platform. in We're we're in the our biopharma, antibodies platform, our seeing

So we've the there. step we're why up got that's seeing Hence, significant opportunity.

Operator

Leerink. Souda with comes Puneet SVB question next from Our

Puneet Souda

have So question on a biopharma. I bigger here

Twist Biopharma have to prior you we that, First, into Obviously, invested and Abveris. saw now Revelar.

getting are that this seeking for need high-throughput you all But using point for what clone Lights need given at you discovery the point? this libraries, build model you antibody us discovery that essentially some elaborate have and to there. your time with of up? else throughput mouse antibody just maybe here Abveris walk like immunization, biopharma is wondering, a just expression validation, now you oligos in have have Or Berkeley DiversimAb just maybe have and and you you repertoire do screening, scale stronger model, library through So and seems selection biopharma at components if capabilities do maybe -- you Maybe capabilities, business? could what in you

Emily Leproust

question. It's a great

have we much think need. I what pretty we

X the learning discover animal the and the of collaborations AI Abveris; big optimize which mentioned, number using we then I ongoing. now avenues are synthetic to have machine libraries; we have a and Twist approach, with the As approach which approach, antibodies

of the And tools. we panning, [indiscernible]. reformatting we've -- optimized access the head, antibody, of So we X the already to high-throughput sequencing the have all internally, the the

powerful think can So a set that comprehensive going very I we have very be are combination pretty is to suite customer. of our we we the much to and set. And

Puneet Souda

And be then -- a On what where -- and out that and of some well about across And supply chains, keep other us That's understand helpful. things I'll tips a in the are terms might far. just quite pipette holding keep and to mind Okay. so in it X. couple But of to pipette chain, to that products looking just supply like broadly Jim pipes I Maybe there anything need multi-well used plates wanted with delivery that we're Things we be you're bit plastic products things. of Twist mentioned for? and hearing of things seem in plates multichannel to is products multichannel help understand mean just there? that. and

James Thorburn

into -- Well, our We vigilant was and tips pandemic sitting around. the get increase we're we wow, it any curve. XX ahead the of guys of million strategy tour feedback we [ recently was, potential of of facility got to into and did lots in the And year, We ]. supply you the a of have average last interesting. the did bottlenecks. we Obviously, entered chain building terms

ahead so have in the demand terms that seeing keeping of far, the increase. done it supply the We've we're terrific chain team of on been Obviously, delivered job materials. we've good So we've -- a got issues. done a in

of So it's this just and a executing. matter grinding keep through

Operator

comes from Larew Our with question next Matt William Blair.

Matthew Larew

wanted ask of on the throughout Just margins gross terms year. pacing again to in

Can future margins here just coming pacing quarter in the backlog year. then with just factor fiscal the maybe contemplating So I in and the the gross from for throughout first guess you ramping us back the year? later help

James Thorburn

Factory bring we the we mean, Future, on are increased see mean I going the costs. the Yes. -- as to of fixed I

$XX for we're about in second in to total sitting $XX about of million it's impact half Future, is of million us it's $XX $XX million About OpEx, at spend Of $XX a million million. going the the So that, around G&A. -- actually Factory year. looking roughly to is the

With in and it's QX QX, rest the the in that breaking about a QX million impact -- XX% QX. I think that in terms between of of and hitting $XX

model. build those can your into numbers you So

we like Future, more get can that -- give I step into updates you if we're looks excluding XX%. But just back, or And mean, targeting roughly on to we're normalize margins as XX% the of of the year, cost we'll first margins. we seeing what the calendar range you Factory the the half

Matthew Larew

growing some you for interest mentioned within health then care biology. And Okay. synthetic segment

that So a bit just could discuss curious you more? if

relatedly, from in And more us what terms in genes give seeing complex somewhat a demand sense terms then of and of maybe there? you're longer the just

James Thorburn

Yes.

we've yes, that care the seen of terms health the in I we've been area growth. it's in care. mean So with significantly segment, health grown so

that? get side. So on driving of health the X what's You factors sort care

declined the You've then on sequential last got the -- the call, terms growth from in biopharma. terms to synbio of saw QX questions NGS, And side, we in had we on growth the QX. of lots earnings of bookings

to You within from the segment synbio. predominantly the increase QX health care driven bookings QX, notice that's by did

to In mean what in does be the gene tend of those shorter genes. genes and length, terms terms that of

gene that switch year XX% looking non-clonal at volume. X.X longer than had of more we the kb. i.e., activity from percentage last our X.X genes, kb accounting last gene we've X quarters seen year, genes, of So and roughly we're was they're in for higher our This

What's driving that? The that. pharma driving business is

Operator

question with Luke next comes from Barclays. Our Sergott

Luke Sergott

out call the in XQ? the shutdown impact in and dollar from in Just value guys real synbio XQ quick, expected did what's actual you

James Thorburn

sort a through vacations the business. QX. we're around cost share I The of same QX I of terms And mostly demand million in We terms did hotspots still we strong it of $X impact can coming shutdowns, in coming seeing is from higher in didn't. of European is just of Asia issue was Europe under we're in reruns you orders. really our and due having time, [ in biggest we're the And roughly of ] just obviously, point do in, a waste quotation seeing some significant Luke, at COVID. view, Christmas. QX. no, had working just to we to tell in mean, this that's

the we at for about feel we that want sure X. prudent be annual rather calibrate make of good We'd year. quarter well And rates and the to time guidance. growth this

Luke Sergott

way we're major I driver, about going Okay. a And That's thinking NGS is biopsy. Can upside new that of and helpful. AnchorDx about in either are business think as of liquid how kind the tools is investors those come how you the the to give China, thinking about to us that think, lot business, guess thinking from through? of to I'm 'XX? 'XX for sense big tests you? should we Guardant's the a How fade coming in early Or I

James Thorburn

biopsy. large are liquid don't to out I got is tracking. XXX contributor. Liquid close customers we we've Look, break we a mean biopsy

have to of to in continue adopted that biopsy. have liquid include those well do adopted, number We the that terms

than mean just I here goal broad MRD. our more there's liquid biopsy, seeing build we're there's to a -- because is platform

the NGS other type iGenomX seeing We had You're acquisition. applications.

Regeneron potential back. conversion with microarray coming We NGS have the to

the liquid goal the contribute, number of biopsy applications. biopsy but breaking But out terms our building business not of liquid to keep in So customers, here obviously, impact. will of we're is the number

Luke Sergott

Yes.

Okay.

it to just you. tried of Sorry, out get

of step-up. here. R&D This more of the is longer-term idea on a Lastly, kind just

of the kind the guys then you the business, of rest biopharma and as have So that's looked core business here. the driver DNA cash storage the your

step a So you sense to bucket the bigger? How for clinical how can that up. a work NGS abreast is keeping trial business, going from continue so growth out guys of smaller but of that spend that is given there accelerate you R&D that Is give it's mostly that lot the be -- to also us R&D can biopharma? tools a

James Thorburn

additional we're at business. the so overall biopharma roughly million up in be are -- we $XX and $XX data stepping mean Yes. R&D will just increasing, biopharma -- and back, looking stepping I in I storage. the mean million

So total $XXX $XX of million. that's, the million what,

business. we'll investing core terms expanding in our terms you've because seeing in opportunities investing platform the we're core to Also, of in XX% are of more in opportunities we the seeing business terrific as IgGs. than that So business, and good continue And outlined. as of keep in terms substantially NGS investing synbio to we're our of core start we revenue launch

in So with R&D term, becoming I we're yes, I biopharma but $XXX data it's longer of think investment. bringing overall Emily highlighted, mean real. in as balance and storage, terms our more opportunities, million

Operator

There to Emily for are call turn back Leproust closing to I'd no questions. any over like the further remarks.

Emily Leproust

wish much a I joining very for us Thanksgiving. personally want the close today. you To you call, to wonderful Thank

very you about already lie We Thank ahead are an especially excellent that opportunities and Twist in Twisters XXXX. much. who delivered have grateful for all fiscal the fiscal 'XX are enthusiastic the for

Operator

program. the concludes This

have Everyone, day. disconnect. great now may You a

Twist Bioscience (TWST) 22 Nov 212021 Q4 Earnings call transcript