TBIO - Earnings call 1 2023 | Telesis Bio Inc.

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Operator

Welcome to the Telesis Bio's First Quarter of 2023 Earnings Conference Call. [Operator Instructions] Please be advised, today's call is being recorded.

I would now like to turn the call over to Jen Carroll, Telesis Bio's Vice President of Investor Relations. Please go ahead.

Jen Carroll

Thank you. for Call. for thanks Quarter Bio's and Earnings XXXX afternoon, joining Telesis us First Good on call and me President Executive Eric With the and of Officer, and Bio's Esser; Todd Chief Corporate Founder Development. Nelson; Goodrich, President Decky Chief Officer, today Operating Senior are Telesis

Our XXXX press financial release on now available first Investors section quarter the of results is our website.

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

changes be discuss percentage Finally, will year-over-year on basis, otherwise any we unless noted. a

call started. I Todd can we And with and Nelson, hand get CEO, our over will to that, the

Todd Nelson

Thanks, our Jen. focus quarter, execution Thank Welcome, we today's their and company's for our thank team this on very pleased smart for call. continued joining We're everyone. growth. with you

quarter's our hand under the will new steady see BioXp grow you revenue market the a base. we our expenses. and kept on both Select As installed in results, this to to continue and X We kits operating delivered brand

more products in and and our efforts. to remainder BioXp base expanding long-term ability by continue research make to sustainable our the to strategic and Throughout the drive their broadly measured and investments year, of development will our we customer services use customers' growth

company. towards focused expenses on become also a profitable watching a will move operating We where we time can we stay as laser

chain, space have quarter, many our so our to one talent margins, to headquarters, successfully we plan team end note moved detail we'll It's that of of the in-house call. during do much new which in do location. quality the and and the new our of have things In more we to supply the gross toward headquarters. Also in into our today's we exciting of related together to our in improvements cover

began, been to provide in Since their vision to the without constraints. our build company tools our with has laboratory researchers any biology

as ability unique of markets product's DNA, create needs targeted Our at rapidly and to unmet large our benchtop synthetic long continue eventually mRNA such novel allows us products in biology to the to proteins address workflows. and pieces

kits should be for growing frequently, many DNA BioXp estimated systems. to make-to-stock significant growth BioXp kit BioXp up of our the our own rates. DNA first the achievement we now applications. scientists kits the doing remainder our customers QX synbio help rate that thus a of strategic allow We kits because solution a the proposition as use on ability to the their us current driving recurring is can point believe add of These complete that which time value a our and gene were the As have future de experiment systems reminder, approximately is to use synbio launches and starting will customers $X.X it so, by to Select at novo more and revenue to synthesis a billion, RNA TAM a XX%. unlock these their offered By offer

our to first quarter on moving Now results.

first grew revenue, quarter instruments growth revenue which growth continued first results year-over-year Notably, in revenue kits, quarter fragment quarter This consists million, and mix long builds XX.X% the the for scale-up. financial the shift our recently release. the included at Gross portfolio. XX.X% over products, and XX% XXXX year's same in for prior product quarter. reflects reflecting representing same BioXp BioXp period the our press from for core across compared as $X.X launched kits of first detailed was came revenue the cell-free system positive for mRNA, new demand last DNA today's first to for period. strong in Our XX.X% the for as at including of margins are Total year, BioXp in well

quarter a Operating result the expenses the compared team primarily $XX.X second first year. on per in of quarter cost-cutting million the to prior to and $X.XX share to of to same year most million were prudent were for is in March was period year. period. prior for same the $X.XX was million quarter the and loss corresponding $XX.X XXXX. the million for compared opportunities. the for prior made near-term $XX.X the decrease XXXX compared approximately for decisions of equivalents XXXX the This period about our profitable focus cash $XX.X the ago million $XX.X in Cash the quarter of XX, as first loss Net Net first

revenue call our timing of new XXXX be back-end in that launched earnings of continued kits the launch our half reflecting BioXp March, the will and ramp system. second year, commercial we recently shared the our the in expectation On the multiple of weighted of

capital we backdrop, acknowledge like in demand who cycles to our have customers to are to seen conserve are I'd within the that macroeconomic spend space. I'd longer to broader and due we like Against purchasing note from caution. some capital impact economic seeing reducing that scale-back

expect second of the confident remains vitality are remain We our in and to that budgets We our anticipate biotech the the of pharma year franchise half improvement and end as in pipeline released. the continue healthy. in half markets, but core first

update. pipeline product our to on Moving

track. Our product on launches are

us we first It a researchers brand. solution and DNA downstream products workflows. perform DNA new our QX, for automated allow These Select to has launched mRNA with complete only their to not offer During of advantage start applications. customer time new allowing synbio to own BioXp the under X the

particularly mRNA the Select with greater that launched and of customers accelerate and plasmid engineering and our customers We DNA own ensure perform to cellular their button. And the start push to they scale-up. as transfection-ready the Select delivered antibody DNA them and experiments DNA accelerate with enable new Plasmid in protein in well the we workflows BioXp in which BioXp and using In Kit Amplification high flexibility and cell-free streamline can consistency Cloning system. immunotherapy Kit, mRNA and new the to quality we therapeutics, empowering for as enable generate March, bring which a in accelerate hours Synthesis or Select allows This DNA and this Amplification automated medicines. mRNA synthesize research discovery linear precision February, BioXp this Kit, to fragments vaccines believe With kit discovery, their mRNA can will to automate and within amplification workflows. customers, kit, customers just our and

additional launching anticipate systems the BioXp new end kits and we before reminder, X the year. of BioXp a As several

prep, The sequencing XX%. additional access growing first system focused $X.X to launch gives This at of on TAM we library an QX. remains which for anticipate us track next-gen launching is billion on

XX%. uses greater is this system synthesis This, proprietary the will for important enzymatic efforts a opportunity we market second of and than SOLA turnaround early time, and within target DNA too, represents reagent. reagent, for at a us CRISPR same-day new for our The billion our enabling, growing the $X.X new first market,

BioXp portfolio the researchers in growth, we which enabled value stages continued in the of workflows, on We and our We targeted continue to our of remain are by system. workflows driven proposition will expanding about increase. applications focus still our and be enthusiastic to believe future the our early part will on

Moving on to gross margin.

margin expand achieved During us gross which successfully up set to team the milestones, throughout quarter, important year. our the

XXXX will As contributions raw a have kits. related for manufacturing. mix be the we there we achieving to of from instruments. plan one, XXXX be and a number favorable reminder, materials three, higher-margin And like a XXXX products the targets. Select in-sourcing both for will instrument have integrating Number manufacturing the our two, we initiatives X-point Number these and

establishment We production of have on the proprietary significant oligo made our operations. progress

During quarter, incorporating and these of of we first the commercial delivery BioXp began systems oligos. the oligo kits X online first synthesis brought

internally confident substantially existing replace while outside path by XXXX quality we remain from our on the are supply of to also a sufficient goods. of oligo cost that We end volumes and to improving produce vendors

the internalize the We quarter internally of instrument. on also third track BioXp both XXXX and are shipping BioXp manufactured in year. first this We system to our of XXXX anticipate the production

is will be expectation benefit full will efforts in in-sourcing realized these that substantially Our be year and that completed year-end XXXX. by

achieving In performance as are our existing with closing, this our that of customers. commercial we we products, focused improving profit launching near-term our products the controlling goals, our furthering remain our pleased partnerships. new and quarter, to and we're margins, costs we're on a reminder, proud and new And delivering

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

Operator

the Instructions] first of from comes [Operator of line Couillard Our Brandon Jefferies. question

Matthew Stanton

versus Brandon. more be for on a color expectations. own your on internal Todd, XQ how Matt This is get to tracked curious bit I'd

think customers orders, taking like that half. sluggish budget I the will noted second in you And more purchase bit on a releases. it longer improve sounds

quarter that year? the is million better you over there? from what $XX and gives Just clarify, goal get in the then the this to second And things for still just confidence half target visibility last

Todd Nelson

first have had provided towards how weighting and Yes, do the about the the weighted be back-end of Matt, be We to feel by the weighted, back-end review, the we thanks would for fourth back-end the annual regards quarter, that quarter. first part of question. With year we, mentioned the question, way likely, guidance. would

actually on track generally expectations first with we're So quarter. for that said, being the

launch now We've We're currently, got continue and commercial go. that of scaling to of of to expect to kits, up. the the that those those. ready Select will we've year. launched getting people a board We on back number continue X ramp launched end We've we'll the into BioXp our team

We the of ramp funnel launch with the the for and are the the building and XXXX. continuing

So need won't to at that. for feel and us is there guidance, confident I point no change be we that doing this

quarter, comes I But therein on a macroeconomic results. how as far with first will, second the track as on the environment, keep see the our watch quarter and close we We were internal the along. think, trends

Matthew Stanton

for you how XXXX? between of then any the and between and the growth XQ? color? is then BioXp know BioXp any consumables. the have can up And in rates chance did the you instruments I And overall And placements the you more us Great. give XX% said mix XXXX Okay. many

Todd Nelson

Yes.

provide probably that guidance split those so do out, likely generally that annual typically said on I we things. think what is we'll here. not haven't to But it We it

we they it's the into we've don't mix. think I do that that. said And XXXX of to for back But is be. it's in amount requisite that And kind ramp the up. on going what launched of just the a lumpy, ever as possible product the it we're So reason quarter. guidance might builds, between way those so be your very numbers to provided to I bit visibility difficult the funnel little specific have the haven't think to us as the can fourth And mix for X provide

Matthew Stanton

Okay. of -- And sounds the to benefit? you me. you Can on some annualized noted manufacturing for 'XX in-house. I of moving the see ahead guys then but like in here basis BioXps to an gross last you XQ. It potential that manufacturing you being remind one just of margins think us made on expect progress internal that from

Todd Nelson

Yes.

context that offset me One our on so outside all end that substantially same impact And XXXX. the mentioned, That in-sourcing to up manufacture major have currently improving X that critical which of use. we are is instruments. Those our own expect make margin. thing we be I from we materials of on our will vendors. is raw the for year, around its in the gross track, the And By more broadly to purchases your of of let the the back to related as X just oligos. initiatives question, the and and provide

Eric full We be are answer the will launch of actually hand gross the margin. on And those the XXXX. that Esser again, I'll in over the to it to accretion in benefit question track of on to quarter. third

Eric Esser

Yes. Thanks, Todd.

see as both as that think we in of of And of margin last in-sourcing XXXX. said start several a would So to well, anticipate, again, those would we I hundred this improvement gross we to initiatives. result points time basis

estimate our now. So right that's

Todd Nelson

to for XX% gross to should comment And think accrete just in margins Matt, as Eric's we reminder, XX% guided that a to I number. XXXX, blended so

Operator

Wiatrowski Chad Our of Cowen. next question line comes from the of

Chad Wiatrowski

for Chad I Mah. the ongoing on appreciate Wiatrowski Steve headwinds.

have do I large on any in pharma biotech that's and expected pharma, small emerging comments CapEx but delays? seeing of you're terms you been think from what from

Todd Nelson

the for I it's what So -- question. you we Chad, think Thank yes, Todd.

exposure And Our for have to a everyone small I pharma within comment we've significant us, base. to exposure observations we significant that, XX% of our knows, on the got customer It's biotech macroeconomic customer larger as biotech base. than as current think companies.

So that very watching closely. we're

everyone as -- been like reduction things around large Divisions haven't and seen of pharma. closing, tremendous pharma say with That in as layoffs. think -- there and being Your there question we sequencing are large specificity, as a have to was been far I impact that. can great And waiting orders is. in have that the discovery said, we're knows, I some a see few what the

the So the answer and yet, don't is future. know not about

be sure. to there exposure Some

Chad Wiatrowski

And just another one for me.

and On R&D and manage pipeline of launched being of you the building marketing products the getting commercial midst you -- sales this but and spend pipeline how in the out? you spend do team, all products the kits of referenced how year, these out manage do

Todd Nelson

where at, I good and one Chad, to we're we're Yes. appropriate an profitable question, and given trying get think whatnot. and it's

because have that. first it details. I'll part some over Eric he'll to the take So I'll hand of

is So at we're what look building. what prudently done the at we've highest level,

a say launch remind is we're perspective I the platform kits what launched investors may XX that to of a organization. right, going it is and Now X. we an inside want operating sound very we've like scalable from But this lot, to

de for of we're because development many launch it's integration novo the run systems the same and across system. we to that will kits, doing And X kits. have easier kits So more effectively technology not these

like might is think get lot that that and kits. we those far we're that we of sound this so of on done, year, track can I a and it X the we're So launched confident evidence that that

to hand maybe So through some scalable Eric it to I'll And a the operation. of go over details. it's

Eric Esser

Yes. Thanks, Todd.

you what road on map think some knowing were be year. -- to the focused made going programs we set year for that our We our was I as last up our know, development. we this last adjustments to for product year team

happy things front is do team the done the the of launches place the rest against X in map that in we with executing the in We for we road wanted have QX, that work that we've team the year. to get to did and us think we're I And the of product well. so process that's done.

we we're that high OpEx, our spend with think level a being with true. at obviously, I total our remains and that, and prudent guided

we're to in so resources, development work and And need not the of this in year. ramping additional don't that's for add do to front we order resources us

we what we think have need. I So

Operator

the from Harrison Schrage Our of KeyBanc. next question comes of line

Harrison Schrage

you dropped I Pfizer in I My And particular if Todd, did call wondering kits. at wondering, out BioXp missed you the the as give I've this. earlier, if Sorry, also regards apologize I wonder know update revenue large, the you been having was could milestones? but But I'm can kit issues. it was for if so XX.X% I growth follow-up, in break a here in in I platform advance out parse an your quarter? to then

Todd Nelson

Yes, Harrison, you happy to there. help out

is for what about this being The before next it for thanks biobucks that, been Pfizer, potential talked an large on you in just $XXX think there one fee million company And of hard I know. over value a previously, years. but terms, couple the the first few collaboration So company, for last asking. the we've that's was to That dollars is as associated with of years. review over course we've amortized that, of million $X the discussed over upfront

additional an year. on anticipate what you And specifically milestones, about, are meeting milestone there and track this X asked we the or

now, right you quarter knowledge And of And so of front of to my are I'll other think just we're on track, fourth that's the that, one, milestone I XXXX. on in us. we we -- remind to met in meet that's track right the

track. on all are those So

Harrison Schrage

Great. BioXp platform? kit the then revenue on out the parsing And

Todd Nelson

back say can that. so kind I into know I -- of you XX.X% way your that that. I -- would XX% of Yes. the than of is greater And don't growth, what was so it

growth So we in saw XX% than year-on-year. BioXp the kits greater

Harrison Schrage

for Is that track still it. for the mentioned was the quarter? Got And mentioned XXXX That's Okay. last you that targeted I really third then quarter. on launch. you previously one, believe platform third helpful. the SOLA

Todd Nelson

know, So fourth communicated the that's quarter. or -- I we on that in the don't fourth quarter for the Harrison, out, and been track that's quarter, first

it on is track. So guide the CRISPR remains This product.

the a had year. variation it's that of program we last So

it this remains of RNA using guides. and this is year, track, So perspective. SOLA on QX on will CRISPR from our for That track for be

Operator

no this this showing Ladies I'm gentlemen, and does at time. you further questions today's conference. Thank conclude for participating. all

disconnect. You may day. Have now a great

Todd Nelson

Thank you.

Telesis Bio (TBIO) 11 May 232023 Q1 Earnings call transcript