TBIO - Earnings call 3 2022 | Telesis Bio Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Q3 2022 Telesis Bio Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the call over to your speaker today, CEO, Todd Nelson. Please go ahead.

Todd Nelson

you. Thank thanks Call. for and Quarter Bio's joining Earnings XXXX for afternoon, Telesis us Third Good on call and me Dan Finance, With the Hunter. Gibson, Eric Operating Brent Co-Founder Esser; Officer, and CTO; our of today VP are Chief

now Our section the of is Investors on third website. release quarter press available our

differ November our safe contains certain factors with in actual release and be from referenced we involve forward-looking materially live is the Before that X, known in include I'd as on results filings uncertainties information time-sensitive during implied. make those harbor XXXX. and the statement our to like only we call begin, included risks in that statements cause may the accurate the earnings SEC. to you unknown and conference or expressed inform This statements call of and those will Such broadcast

started. noted. unless percentage that, we any year-over-year a Finally, basis get we on changes And with be will otherwise discuss can

is empower At our inspire translational applications. scientific sciences life Telesis and mission breakthroughs across research Bio, to and

automated in biology to scientists large standardize needs streamline and allowing markets. targeted testing solutions building and address synthetic on-demand and multi-omic to both us of unmet enable DNA Our our and mRNA,

biotech include research premier Our XX customers and collaborators all institutions, companies rapidly of companies. academic growing nearly biopharma top the

antibody from and discovery agricultural products. novel cancer infectious cellular of utilized Our developing meat to various discovery immunotherapies substitutes systems academic of by engineered for and the sustainable are activities disease industry in the sciences ranging and worldwide precision creation vaccines, therapeutics

and mRNA of of in button, to with allow time. bring the amount scientists to market push allowing Our We critical and a to synthesize DNA solutions biopsy and products assemble automation our discussion unprecedented customers the financial momentum results -- of support recently as updates. I'll believe we our turn the company. that reported mission the financial turn And corporate to with that, discussion our long-term strong will

XXX% months X quarter total the like we first for third quarter of year compared the the review XXXX, and highlights period. the of prior I'd to by XXXX. from to start, grew nearly third In To revenue

Excluding quarter of was QX in contributions year, the third for from Eton overall Bioscience growth acquired XX%. last

the XX, September growth, XX%. For ending XXXX, excluding Eton, was period X-month total

quarter, BioXp during units of units the X-month of during the first months We number revenue XX% respectively, the September XX XXXX units. third third sold and and bringing for X the XX. XX quarter sold was up period ending XX%, Instrument to

and compared kit a We uptake XXXX. launched biopsy posting same sales, pleased initial XX% also growth X XX% by of very for the the of months year record period with continued the first strong experienced a quarter growth we're trajectory, BioXp XXXX. market period for has the the And in prior which the recently over to

for quarter XXX% the quarter and XX.X% third XXX% X other Gross year, for of significantly XXXX. in the grew royalties fiscal XXXX and of the Collaborations, first of XX.X% in the respectively. from third to QX QX improved months margin revenue during

a For cost lower expansion mRNA as gross year to the positive DNA mix XXXX, XX.X% and ago higher-margin the X shift of for of the including margin raw period from months largely third the BioXp quarter a improved Margin same to first materials. a by compared products, driven was XXXX, to XX.X%.

of a addressable stakeholders. delivering larger the significantly gross Telesis half and in profitable our achievable. and technologies. innovations We've progress that drive we the operating of the vision future never paradigm-shifting and our XXXX same These serve Bio in time, second broader to is are innovative biopsy for has vision transform applications industry this fundamentally products, our Inherent and, becoming path systems new value existing at towards more potential markets. Our have to position felt and improving made sales company significant developing our to developing on-market margins,

pass that, to and call to updated guidance. With over our Brent XXXX review I'll financial financials the

Brent Hunter

release. my I'm for results press key you, in included financial our financial our today's quarter financial Todd. finish for today, Detailed a touch with updated third metrics going remarks the and XXXX. income to guidance few statement, were In on Thank walk through

with revenue, related totaled to revenue Bio sequencing services Telesis other XX, was core which business was a due growth XX% net oligo million and cash period, short-term period. Revenue the the collaboration quarter for $X.X September was first the is for the driven and the Royalties revenue Eton $X.X million. in same of and strong also Eton growth by investments first from which grew agreement. Pfizer XXX% was XX% revenue for from a period BioXp total $XXX,XXX, contributions well in for record $X.X XX% growth for for contributions solid XXXX. capitalized the revenue year-over-year production third up The of as and year. to X-month $XX.X of million growth kit was million was This increase the totaling and prior XX%. X-month XXXX, of first the approximately quarter the for Organic --

XX.X% year. the increasing from XX.X% higher-margin third of or products, basis points X,XXX from compared same launch increase for mRNA period was primarily XXXX. The improved product such margins as contributions Gross resulting the price and the to increases in by revenue, and of quarter was XX.X% for licensing driven margin BioXp the and collaboration the prior

of the XXXX, first for months year gross the prior margins For were XX.X% compared XX.X% period. X to

for leadership organizations. same increase the efforts, professional $XX.X $XX.X the marketing expenses to $XX.X the totaled and of commercial, million quarter product the expenses primarily and and staff. to driven Operating This year. increased Operating in year. compared for R&D the XXXX increased same new prior was by prior for development G&A relates million head The $XX.X X first expense in count efforts months of expansion, in compared third personnel hiring the period support our million were period and sales for to million

per months third million prior share $X.XX or $XX.X net of loss respectively. share the a $X.XX and share $X.XX $X.XX of $X.X XXXX, share per same per to in and This per compares X was in $XX.X the or year, the period for loss million $XX.X respectively. or Net first and million or million quarter

briefly I'd revenue XXXX. results accordingly. updated our to financial again year our are Due Now raising to guidance full XXXX, strong in continued like cover guidance for we

As to our a further revenue earnings $XX during our our we reminder, QX million call, are $XX our quarter increased to million. XXXX. $XX we on to results, to increasing million guidance million $XX revenue Based guidance for third

will call Todd. over And turn with that, I back now the to

Todd Nelson

during to is Telesis Brent. executing profitability Thanks, achieve XXXX. plan against that will allow us the

of growth, couple a I would the On now investors rate the revenue launches a So business growth years. that plan. XX%, let that biopsy moments you of of next few me landscape compounded take through series grown in new X-year that and remind the generate have robust revenue product to growth we've should significant we of annual walk high-level continued for

the with kit example, XXXX an system rates markets. As ability the to expand higher potential and adjacent an of ASPs, new revenue higher in it launch BioXp BioXp significant from utilization brings instrument stemming

the device. a of rapid gene XXXX, RNAs Additionally, of in will quarter we first every DNA offering allow synthesis system series and DNA kids, synthesis This use week. their plan for for have at launch product guide oligos Moreover, turnaround can point. DBC instruments allow use plan the day we to system on kits starting single BioXp new launch for for a multiple times as CRISPR this benchtop and integrated of a to customers they the own the new modular that same-day in of and customers and the first series will hand or to their provided a mRNA make scale-up convenience a they cell-free use on stock and modular

increased capabilities to utilization synthesis that And us we the potential and the the kit of desires of go customer Gibson start and advantage that track the product this to de is to replacement part requires at remain to purchases. of offset raw be allow both gene for launch able instruments, adoption velocity their largest kits a we on gross portion in with Results to material DNA. Telesis launch Assembly believe we'll will or strong internal increased higher is these that will we modular of margins. oligo Bio see own synthesis of for base novo The rapidly that after

believe and potential On cash, to mid-XXs. the $XX turn next a have should the in to will months the to low million. the cash margin XX- achievement through that we to XX-month told, milestones and debt of earn upwards we additional gross licensing XX of estimate to XX the XXs Currently, by position All between the technical we next period, $XX million, the additional year, an to of high approximately capacity over end

and results strong progress overall product that we're by say In pipeline. quarter X conclusion, encouraged pleased let our we and third commercial our months first with continued remain execution within me that

and We market are against new commercial our near-term profit focused existing furthering executing on partnerships, decreasing products, launching costs. and growing share, margins goals, improving new

continue sustainable We technology and path processes and to in long-term invest growth drive talent, to toward profitability. a

the I questions. Thank the open operator ask to call for that, With will you.

Operator

Instructions] Okay. [Operator

the line call Couillard Brandon from first of Our comes from Jefferies.

S. Brandon Couillard

XXXX quarter new book you of for little new Todd, the elaborate system, of more users? that units? a third maybe mix just And seeing XXXX and how in existing systems kind you the the then the comprised you're the of new could develop the of placed XX how order many bit just on were

Todd Nelson

bounce did higher market probably seems throughput uptake the room It with answer. Yes. very well. little we're so the say very Brandon, that, resonate is What pleased fit of question. customers, very with lot for to initial We'll here that seems a of the on customers. VOC We around would on start it to thanks for the bit well I to XXXX. the a

We that had to launched we XXXX, X early systems. for bit quarter, shipped the we accounted a third XX the as In and of shift instruments. about mix a X

that to to happy say, with into the would as happy So really business for we're that. I ramp, of we're builds the instruments, and the the think that. going with quarter comfortable that we're fourth XXXX book forward continue I is very looking

And rest over to question. I'll guess, answer hand the Eric it the to, I of

Eric Esser

a existing in right many the is that's the on customers the And new for from little other It's I XX-XX books have I don't question was of the come how have and Yes, or front from bit data than come think we customers. me new the existing now. of rest orders versus think right less customers the to XXXX have part I the customers. XX% a that close of exact now ratio.

Todd Nelson

Yes.

So think it's I Brandon, new a we're that happy with system. because we --

a And think, it of obviously, be would well, would lot you upgrades. so

but of higher a the throughput I for with I and and tell open we're solution. A ability looking, up forward happy into your to think Did and new kits. forward lot now looking adoption market clearly think really customers, particular XXXX, been about that the modular segments. is I we're system which customer waiting that that We've have to exposure our the question? within customers excited open to really answer brought think,

S. Brandon Couillard

Yes. Yes, helpful. that's

terms fairly fourth quarter year-to-date wide midpoint a the $X and In changed estimate see any the at revenue update all you us range as you -- or quarter. color for of increase to guide, a just degree million Can the for on to of give about to implies directional fourth that performance? your the still an the the which

Todd Nelson

I I We so our of and right. the the guidance, is, is think, XX% that you're the in to think guidance. Brandon, new midpoint answer increased

of remain midpoint for with I that kind comfortable we guidance think revenue. number

haven't changed. internally QX for estimates Our

we orders think pleased received commercial operationally purchase the XXXX. for ship I providing execution, we we're against with that can the

comfortable our with estimates. we're think I

don't So of be we'll think at end high to I want tell the range. you I the

midpoint. think the I comfortable with we're

S. Brandon Couillard

third then quarter. the the gross quite a improved margins Okay. bit And in

I about from benefit Eton's margin your reason touching quarter. magnitude we to expect XX fourth? think You of that And that third that materials? tailwinds step in-house next, for the transition. the already raw to begin of oligo in own potential to range, get magnitude the some for here gross low some in that maybe of kind think, in help months' down you talked being the you'll XXs over to be you're about that us ballpark production then the mid-XXs move of Should Just as time

Todd Nelson

Yes.

on And which accretion. we little what quarter, collaborations, I probably one. you'll see here, we margin the too. I our have say third think and the think booked the the we margin a gross think, But gross would and this -- cash had Eric go for I'll back in margin financials, had in I helped I on on forth more that in

growing mix mRNA, product in our also de well, is is very RapidAMP synthesis, long-fragment shifting builds shifting product while and kits We with higher-margin the for novo towards first which mix And from sold -- NPI our for for products. gene time, it's come higher Assembly the X,XXX margins ASP. Gibson

combination a the more the XXXX gross and of of with result. out business So accretion kits the proprietary instrument coming margin as

I Correct. an of was the Pfizer think it acceleration [indiscernible].

Brandon, forward, goal, to to of is I into Going started we and discuss the to and plan recapture, points over basically to will significant the our we in largest raw product of our have it pretty we've get comment course, it think of think margins the since magnitude think number that range material be would say there that of realistic get acquisition. been has margin I it's single it hand a don't Eric. general, discussed, got the I'll prepared I accretion. basis we But we on because

Eric Esser

that in and through the next happening we mean year. I we capability on scale right. and that's we'll that's head as turning the into process quarter, of this year Yes, are

certainly And with of, the along be number the year think, significant will a area other to gross into margin that we Todd as the in the that overall one year, items for factors of help relative mentioned. next it's us the tailwind, get it us So a I margin. will

gross on focused heavily we're margin. So

think and trend next will the and year margin. in continue QX in expansion continue see to I into gross we'll

Todd Nelson

quarter a in a just the the because a in third more again, milestone. the And of bit amortization Yes. little Pfizer bump of bit cash of

S. Brandon Couillard

helpful. Okay. on status chain right update just And now. That's lastly, supply

shift kind out? that shipping might hurdle near-term. call relates against You X,XXX kit or of encounter the as the the any Anything didn’t on front seeing component book chain you're far to that supply as order anything shortages to

Todd Nelson

Yes. I'll hand that over to Eric.

Eric Esser

no, Brandon, issues have don't right supply we Yes, significant any now in chain.

able broadly supply have that about that speaking, don't a be around on the orders bit think we to XXXX, the up we'll the chain fill in things we got. have balance, loosened I regard, concerns

Operator

line the Paul Knight from comes of of question next Our KeyBanc.

Harrison Schrage

placements Paul. expecting quarter, you to XX, to placements year? XQ is, were were the for from on now? those wondering, that the given Harrison It's expect I'm in see are into get as full what for at the guess do was be I quarter XQ the I in placements going Or XXXX you And pulling fourth some XX to well? orders you trying the

Todd Nelson

No.

scheduled I time or X out think in during for quarter. said -- got had so short quarter. launch we We launched we it is a fourth and the anticipated September, the that shipped what in early, of we third X was was period instruments

-- last and systems. You we that that sell the quarter. the in in with can the BioXp the expect fourth against we'll be We and in that we single-digit to our course the year of receiving during shipping orders, mid- launch numbers we said so the high remain believe anticipated XXXX call, comfortable XXXX. I following would

Harrison Schrage

about then I Pfizer in the Okay. you up $XX equaling And it. FY 'XX. Got think mentioned to milestones million

in FY kind could likely or I what's, if possible of there there? get 'XX we wondering on update Just and your guess, progress an

Todd Nelson

Yes.

those potential about technical Let the otherwise We've over XX milestones, around in times. XX to to me the $XX order months. get recent got centered next access and to

tell so you X to a and But XXXX his to XXXX, with achieve synthesis. That program the milestones around large over $XX around I X milestones. we're pleased super about very that continues program. about We're remain to sales that. X can around I or million. for totals that. I think to We Specifically impress. effort bit can to think DNA -- period, enzymatic first X working market Dan with in validated We're a he it that hand excited little technical or

Daniel Gibson

Yes. is This Dan.

around had for lot to from a building genes how and is takes success DNA enzymatic target continue the the process, continue it using Todd extremely and just synthesis as but exactly, genes well. the progress We've reliability, make go those said, quickly our we improve of solution. SOLA to to sequence So going Pfizer, program tremendous we the to infidelity

Operator

This in does your participation the for conference. program. Thank you today's conclude

now disconnect. You may

Todd Nelson

you. Thank

Telesis Bio (TBIO) 8 Nov 222022 Q3 Earnings call transcript