DNAY - Earnings call transcript Q2 2021

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Operator

Good day. And thank you for standing by. Welcome to the Second Quarter 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. like today, the Officer. Jennifer would your over I speaker first McNealey, Instructions] to conference have to [Operator Chief Financial you. Thank Please go ahead.

Jennifer McNealey

results Thank released ended afternoon, This XX, for financial June you, quarter the Codex XXXX. second Paul. its DNA

release, not be like the distribution news to an send if list, you'd If you please the email or have company's received to added to ir@codexdna.com.

Gibson, Codex DNA, Chief and Dan our are Executive Officer. Nelson, from our Todd today Technology me Joining Chief Officer,

management federal will like that material I'd we These can that results events that this statements remind Before cause statements uncertainties statements to call anticipated. or make you to are within begin, during the securities involves, looking differ forward materially and those actual meeting risks of laws. from

and section these in the here in statements regarding entitled looking release information we today. the press Additional risks issued forward uncertainties

like This sensitive turn new as any update list XXXX, whether call of forward we see the or for to For description, intention over by XX, live June company's a law, other projections Exchange broadcast, required information, Securities the Todd. of Commission. information With by time or Report Except conference any otherwise, and risk of the I'd future the XXXX. looking on financial Quarterly because contains that, and and more it's events only statements, Form or XX-Q or revise accurate to filings with to and factors XX, ended section obligation the August call disclaim complete please in quarter the

Todd Nelson

call of for you review I'm for to this the company, and results welcome to very to thank second as and Thanks public you afternoon. all us quarter a Jennifer, our XXXX. first earnings our pleased joining

team Codex and customer business. successfully leadership XX% During DNA grew the diversity Board year-over-year. of new downstream expanded step an evolution a our of base, our applications, in mRNA of enabled closed IPO, We our the and Directors, took the big strengthened forward quarter, second revenue

like to approximately continue empower also collective foundation, we've our precision truly $XXX build positioned All June, be gross like synthetic million to developing on operations, vaccine cell global moment DNA. to With to support. me discovery, development, work give continued Codex for up medicine, would relationships my and progress their the a therapy. what's customers express working to advance their and that our We I'd driving is incredible you genome forward more the and in and of thanks take the together. to dedication sustainable us thank, drug sincere look with well efforts. biologics amazing made I all and at ability and in to raised this We to gene their our to in testament you both mind, help grow which long-term sense solutions team create we for to with to biology let meaningful a company editing, scale our of hard proceeds. in IPO a rapidly investors leading

and solutions to biggest humanity's some biology automation and DNA, in for scientists is proteins challenges. breakthroughs mission Our synthesizing to for of print healthcare apply sustainable allow program solutions technology to mRNA and creating synthetic

Assembly years, achievements, than cited including has synthetic scientific and in been invention now more biology. which team industry of publications. significant the scientific to excited the We're next most the biology method, revolution the Our innovating for X,XXX Gibson driven been industry's synthetic has is drive many of

the develop DNA purpose solutions of solution driven believe products. will to to worldwide of in that customers revolution an is decades and the or biology to reading rapid opportunity on next We allowing revolution unlock drive allow novel faster. which the write critical fast DNA to of to be translation this first DNA the products bring investment sequencing revolution, for innovative technologies will writing focused DNA to led has in accurate writing print recode the or area improvements sustainable The molecules, productivity. to by or into synthetic built significant market developed this write pressing technology meet rapidly that DNA We've and for applications needs Benchtop,

be system careful has system took to mRNA, the is medicine, now to week around drug BioXp platform of be a the large rapid speed, combined enabling quality automation so, are accuracy benchtop. to days can bringing BioXp rapid cell BioXp the result the development push button, scale system design synthesis with Industry-leading button for Our that a DNA both vaccines award months functional providing productivity. done test or value or both allows precision Scientists iteration scientists high write revolution, improvements unlock opportunities discovery in products. the biology technology access with disrupting vast This writing world discovery, for industry mRNA and this grade DNA in drug products certain DNA and gene and therapy. by completed now therapeutics, us of synthetic The push and to by automated market winning can the hours. and of to – and able biologics in editing, and the just to fully novel, using potential previously enhanced a for took can build faster a paradigm giving accelerate of genome print activities an previously this what

of is being developments well citrus disease for as in US us sustainability, technology food by medicine, as greening as grant applied awarded to supplies Our towards the case Department is Agriculture. the

of the based responded is of quarter product vaccine workflow demand we to enhancements. first words the results. with quarter, development market full for and number growing line for on few launched BioXp Now, kits our first mRNA mRNA It's We product rapidly kit RNA a customer synthetic to In This system. a the enable second BioXp and three therapeutics. designed the line. mRNA second a

In engineering, and services X.X at July, up offering. and such Customers we de biofoundry the automated These improvement capabilities supply constructs yields LifeSciences mRNA run. workflows, which micrograms transcription, overnight as results building size biologically integrate technology. higher and all the generate Maravai active TriLink more. dramatically the synthetic to as its for to mRNA for metabolic XX shortens process, levels the as option synthesis the mRNA applications during kits from a be system, for of fully antibody downstream fragment XX combined the to agreement technology in doors mRNA applications. increase manufacturing protein synthesized expands our which production mRNA can that into construction, broader synthesis clean with production. We of and for kb of genes to productivity engineering, within part in expected gene and each vaccine at are fraction plan mRNA long capping active translationally now potentially is and technologies will and error-corrected therapeutic length, novo novo yield suite Together, de of gene longer simplifies increased a of for automated the least genome targeted have cap single variant the of signed launched also technologies menu licensing industry-leading a of studied, well opening range a in as BioXp error-corrected, in We as analysis, the such of our Biotechnologies, genes

and She's companies Christine member during three Cooper venture additions Marketing Companies, medical a The Board our and is several emerging science, XXXX. Corporation, in biomedical second of Marketing Systems. President also of corporate Intel with Directors committee Northpond positions to the Financial the the Director Jackson. currently Chair Jami member former the board and others. at Nachtsheim, Ventures, of Corporate them over a former DNA Christine Bio-Rad Governance was team Jami and Autodesk, focused growth committee. She to welcome audit leading Codex which is and the the with We Octave Director to Corporate NanoView, Vice of financials. Sales held technology of Chair Andrea member on serves serves call We Directors, will also pass the a Current Jennifer technology Board as the are; serves the and founded as and of read Officer Andrea of that strengthen of and the and Laboratories. at that, serves Executive key nominating President compensation other firm and previously I the And team. Compensation the Jami of of quarter. Christine and including Bioscience, to Health, and back governance Committee our capital They Andrea Tsingos the Nominating all and our committee. of Attest as as of a is the Vice Committee. leadership Group, executive Worldwide at our our companies. Chief is

Jennifer McNealey

XXXX the related up $X.X year. a this million raw quarter our development public was million million new current second and by will was the XX, expenses for for in million sales the April revenue, with same the driven June financial XXXX, growth costs and as was review million quarter million share increasing same year the XXXX, release. over to $X.XX material $X.X as Net and associated and million was call Thank development our XX% company. investments increase million additional period of year, Codex year. the as services. unit and million of same corresponding the were call. per for prior the turn year. operating $X.X briefly the revenue you the $X.X related $X.XX for driven was for research reagent XXXX, in Operating standard the that, focused in prior to quarter royalties back business, the in to well second to quarter quarter the will in compared in Biofoundry from results $X.X And our our This efforts, the for as for compared The by $X.X related to Todd. increase I organizations, same efforts in This today's prior for $X.X tough second for the higher $X.X with and increased and XXXX, Net included period second with for Todd. primarily sales across quarter capitalized second period expenses on the headcount press now was the product increase compared a primarily XXXX prior to of sales program $XXX.X loss compared we $X.X million loss costs cash prior I results was in to as to revenue period period. and of growth commercial in introductions cost and ramp expansion product research marketing collaboration were

Todd Nelson

Jennifer. Thanks

opportunities be to at how been their amazing We're I want the to of you support executed about working It's team. this synthetic quarter. and look sustainable biology grateful great for not our and now that company to I closing, be more a and confident for see will DNA to proud our Codex and everyone to planet. past they've our future Before part investors ahead, thank forward with open efforts to to solutions their questions. all well the remain bring with we for We call and could

Operator

first from [Operator question with Instructions] is Knight KeyBanc. Your Paul

Your open. is line

Paul Knight

Could I Hey, opening quarter first you? what your this, you in missed for the placements -- comments, of Todd. were the second but so or

Todd Nelson

Yeah, haven't been placements a the think biopsy we quarterly Paul, I out breaking basis. on

that be recall, said on were Paul we through on in intra-quarter the end at quarter, not the we'll the quarter, but believe of placed that reporting and placements XX first year, I XXX you basis. we so systems cumulative we an placed we previously first had out stated the If about

Paul Knight

you of be side the to XP on the an level that Okay. are kit business pull of going qualitatively? part to through, you the the the know I can talk business What flow. And on increasing -- is seeing

Todd Nelson

Yes.

kits said that there's the systems we're we've pleased or, exceed the not, system. approach of purchasing say, for are current cost if of customers handful as a So that, for to capital biopsy before,

that handful a there's customers So doing that. are of

think see at that sure. would play I be but difficult launch utilization we and systems, up, that, about just think is I we on products that on up. that. happy going utilization utilization certainly generally, for for the certainly it's way the to and commenting, size given the now, to innovative we We're there we going business, look continue at rates us, And continue

Paul Knight

in capping will the And be you commercially? TriLink technology announced when deal July, lastly, available the then

Todd Nelson

fourth quarter Paul, That's for scheduled, launch. currently

Paul Knight

biofoundry? Okay. service side, tone level And change on of in any the then on business lastly, or

Todd Nelson

think questions for are just the product business, I business, of biofoundry the at numbers The very like side side. the business on pleased And answer us product this the services that or either to direction positioned small both the segments point. the we're well We're on customers headed. that of side with is have,

the to tenor change execute. no services continue business, we really of the in So

Paul Knight

Okay, thank you.

Todd Nelson

you. Yes. Thank

Operator

the question next Your line is of Jefferies. Couillard with from Brandon

open. is line Your

Brandon Couillard

the that scale Hey. Thanks. kit, metrics can Good with might any starting share you maybe kind be Todd, that new you for using install small about can in the in afternoon. with it, share of that launched interested some maybe of first just April, you mRNA uptake that us? kit base or

Todd Nelson

Yes, Brandon. question. the for Thanks

downstream five then, early tailing. and which has technology the out happened use it's launch did And recall, the April, of as cap, time the share a the market. an it's tail, days, the think Yes, end ARCA prime prime, that's I of kit spec. significant you of CleanCap on enzymatic just a announce at and three of may we we

into give early they the would launch. mRNA We're And of direction kits will We're launch, of workflow forward is giving CleanCap what mRNA, base. it's that that DNA, of rather think, the to if access going. pleased market. it's details in significantly backwards on entirety do, question, with that the existing larger I commercial of So, the integratable launch say, of in the we're to your or we uptake to then, midst the I system answer the the which quarter launch, fourth the everything segment us the installed you looking irrespective than a the technology,

seeing with, list orders, already that good we've customers and got So we're we're very a currently. of working mRNA

Brandon Couillard

you. Got

the if touch how just on secondly, you along? it’d coming from market are activation channel be can maybe Okay. efforts the in commercial great tellers shifting US And are going gears,

Todd Nelson

so in a Yes, outside direct -- Western we've the US, got channel Europe. predominantly in

continuing direct I we're another hire a over staffed before, there put experience has continuing pretty well believe in believe and discussed and think that number good from recently channels deal a through company, and we that Europe, we're we've in place come to activated channel I is -- manager our that our we've discussed there, currently previously. OUS As a about we XX seen channel regional came systems have I distributors in be to as of

got, of think We've a year are going. from come the continue that to we So going channel hire. our I and to funnel reach will throughout around a globe on and significant We're I channels next extend as BioXp opportunities think of the up globe. side full portion our the

Brandon Couillard

margin you one we in should should costs, think that and maybe of some higher weakness touch the then, a these $X are Jen, how And guidance second for just with or a metrics the while? any What in think exactly gross for you standard about quarter? do on the half costs maybe the I went million maybe little assume on that we up,

Jennifer McNealey

We experienced of until that situation. of anticipate goods a just decrease margins the quarter and and gross wherein The will increase. suppliers, Sure. pricing cost are primary this increases volume non-allocated cost volumes center raw it's we a were as result costs down, temporary materials certain as our less our switching on favorable our

Brandon Couillard

Got you.

you. thank Okay,

Todd Nelson

Thank you.

Operator

is with Cowen. Thank you. your Schenkel last from question And Doug

Your line is open.

Q –Unidentified Analyst

this the for afternoon good Thanks for Kyle Hi, taking is on Doug. questions.

are adopted year analysis instruments past you increasing much and the customers cohort were instruments share accounts are more the over a higher could in quarters who you've volume recently biopharma success half utilizing So few placing instruments? on any if over that users. and wondering past We how just had like our

Todd Nelson

This Kyle Sure, Todd. is

-- Let that one. me take I'll

about customers of as XX systems. got top me be the in customers that we customers, pharma in let XX we we've accounts have in group predominantly So, you'd cost cost said before, the the a state, to first I mentioned as call, got that through of of we've talking equivalent reagents, earlier handful capital of on putting are those in the and as

would do and customers what So to we're that. utilization we ramp up see rates higher to call continuing

to than has to your do it rather of -- ramp. So is question own to later. what sooner But customer the get its answer The that, customers strive rate every is we depends. order

workflows sure, talked in up the in hard to answers of we've specifically but really you it's many they it's they because that give rate for for are predominantly, focused it's for can customers So our orders customer engage, on numbers like, engagement typically where to seeing a and one buy whatnot? that you but products customer the How and the order systems one any know, now, really to place not the an biotech of for about, multiple be quickly, install engage their small products. just we it's orders segment depends for continues So our ramp base projects. really rate are

ramping So system. cost do is have rapid that capital again, up. through utilization customers engagement we are the and putting And then then the

Unidentified Analyst

And roadmap synthesis in automated year mRNA a up. you. could expect Thank for maybe we high-level a follow you next as What then modules kits. the Could share the so?

Dan Gibson

can Yeah I this this take Gibson, one. is Dan

So we that early mRNA have six kits we'll additional be XXXX. launching within next so months, two the BioXp

first what at and already use RNA The would can and that own enable so rapid scale cloning messenger enable also cloned synthesis generate vectors. call from them to have their would they XX this customers, we mRNA they is constructs, microgram XXX to those custom their quantities,

customers also have custom vectors addition synthesis, scale to quantities. and those we which mRNA XXX synthesis, kit, leverages constructs de to clone to large In to XX up novo larger which also as call X.X into mRNA up we KB, allowing another well, those their micrograms

Todd Nelson

is Todd. this Kyle, And Yes.

we kind enzymatic an three think we've was and now products market broader active and launched very me very, context mRNA. has the coverage of of of ARCA this we commercially give that it because the of Cap, good discovery for got the the A tailing. first Let some products, three poly selling just you one And we're with

tool, like so tool up KB, a biologics like and X.X shorter a that that's to CDRs sequences that's engineering, that. entomology, so great for and and for things discovery for protein builds And with great

build error genes that's be mentioned, the synthesis vector, are in just market the in And one, the will core of in already can, the up us launched X.X tail important we that's really where As corrected that second poly vaccine the Dan already assembly -- so the the gets and to we A one, a then third very placed into leverage rapid market. vector. really capability can the to synthesis, KB organization gene one development we the competencies the for big

starting getting the into then protein done to biologics, like we've ability really the we're antigens flu with third that. out COVID, engineering, So, and launch for and in things build like vaccines,

So, it's of on a we also. having plan -- integrated one CleanCap those the into technology each

good as So, of we launch market Dan half first -- and very large coverage launched a in be one of growing the all launches rapidly product three will think still we've very of got those with XXXX. mentioned,

Unidentified Analyst

great. Thank the questions. That's again for you taking

Todd Nelson

you. Thank

Operator

the turn And McNealey Ms. that session. concludes now closing I the back to remarks. call question-and-answer Jennifer will for

Jennifer McNealey

follow-up questions. all thank participating if Paula you, Thank and you us call for have our in you with additional today. Please

Todd Nelson

you. Thank

Operator

conference joining. for This you concludes call. Thank today's

You disconnect. may safe day. well. a Stay great now Have and

Telesis Bio (TBIO) 10 Aug 212021 Q2 Earnings call transcript