-- Record revenue of $63.7M in 3QFY23; Increase
of 14% over $56.1M in Fiscal 2022 --
-- Orders increased 7% in 3QFY23 over fiscal
2022 to $63.8M --
Twist Bioscience Corporation (NASDAQ: TWST), a company enabling
customers to succeed through its offering of high-quality synthetic
DNA using its silicon platform, today reported financial results
and business highlights for the third quarter of fiscal 2023 ended
June 30, 2023.
"We reported record revenue again this quarter, with our core
business, comprised of SynBio and NGS, delivering very strong
results," said Emily M. Leproust, Ph.D., CEO and co-founder of
Twist Bioscience. "Significantly, our Wilsonville site manufactured
and shipped the vast majority of our genes, gene fragments and
oligo pools, with the new team performing well. We continued to
expand our NGS portfolio with the launch of our RNA sequencing
portfolio targeting the substantial research market."
Dr. Leproust continued, "As we look forward, we expect continued
growth in the core business, driven by taking market share, an
increasing customer base and expanding product portfolio. For
Biopharma Solutions, we will continue to focus on hiring the right
commercial leaders, serving our customers, and closing new deals
both with existing and new partners while keeping a keen eye on
evaluating, analyzing and managing this business to ensure value
creation in the short, medium and long term. In data storage, we
remain on track to demonstrate an end-to-end gigabyte Century
Archive workflow by the end of calendar 2023."
FISCAL 2023 THIRD QUARTER FINANCIAL RESULTS
- Orders: Total orders received for the third quarter of
fiscal 2023 were $63.8 million compared to $59.7 million for the
same period of fiscal 2022.
- Revenue: Total revenues for the third quarter of fiscal
2023 were $63.7 million compared to $56.1 million for the same
period of fiscal 2022.
- Cost of Revenues: Cost of revenues for the third quarter
of fiscal 2023 was $41.8 million compared to $31.0 million for the
same period of fiscal 2022.
- Research and Development Expenses: Research and
development expenses for the third quarter of fiscal 2023 were
$24.5 million compared to $36.8 million for the same period of
fiscal 2022.
- Selling, General and Administrative Expenses: Selling,
general and administrative expenses for the third quarter of fiscal
2023 were $46.1 million compared to $53.7 million for the same
period of fiscal 2022.
- Net Loss: Net loss attributable to common stockholders
for the third quarter of fiscal 2023 was $57.4 million, or $1.01
per share, compared to $60.5 million, or $1.08 per share, for the
same period of fiscal 2022.
- Cash Position: As of June 30, 2023, the company had
$357.1 million in cash, cash equivalents and investments.
Recent Highlights:
- Shipped products to approximately 2,200 customers in the third
quarter of fiscal 2023, versus approximately 1,900 in the third
quarter of fiscal 2022.
- Shipped approximately 171,000 genes during the third quarter of
fiscal 2023, compared with approximately 163,000 in the third
quarter of fiscal 2022.
- Expanded the executive leadership team with the appointments of
Robert Werner as chief accounting officer and Chet Gandhi as chief
information officer.
- Announced Jim Thorburn, chief financial officer (CFO), will
transition to a new role supporting commercial scaling, operational
leverage and DNA data storage once a new CFO is hired.
- Entered into a new market with the launch of a portfolio of RNA
sequencing tools to enable targeted or whole transcriptome research
across fields including precision medicine, biomarker discovery and
immuno-oncology research.
- Entered into a collaboration with Cancer Research Horizons, the
innovation arm of Cancer Research UK, by which Cancer Research
Horizons will license the entire Twist Biopharma Solutions Library
of Libraries.
- Published preclinical data supporting the potential use of the
highly potent and optimized GLP-1R antagonist antibody, TB-222-023,
as a treatment for congenital hyperinsulinism in the journal
Diabetes.
- Presented at Imec Technology Forum (ITF) World 2023 on how
industry growth could be fueled by using CMOS-based chips for
high-density DNA synthesis for data storage applications.
Fiscal 2023 Financial Guidance
The following statements are based on Twist’s current
expectations for fiscal 2023. The following statements are
forward-looking, and actual results could differ materially
depending on market conditions and the factors set forth under
“Forward-Looking Statements” below.
For the full fiscal year 2023, Twist provided the following
updated financial guidance:
- Revenue is expected to be approximately $241 million to $242
million, compared to previous guidance of $235 million to $238
million
- SynBio revenue is expected to be approximately $98 million, at
the high end of the previous guidance of $96 million to $98
million
- NGS revenue is expected to be approximately $120 million,
compared to previous guidance of $113 million to $114 million
- Biopharma revenue is estimated to be approximately $23 million
to $24 million compared to previous guidance of $26 million
- Gross margin for fiscal 2023 is expected to be 36%, at the high
end of the range of previous guidance of 35-36%
- Operating expenses including R&D and SG&A are expected
to be approximately $308 million, compared to previous guidance of
$313 million to $319 million
- R&D expense is expected to be approximately $109 million,
compared to previous guidance of $112 million to $114 million
- SG&A expense is expected to be $189 million, compared to
previous guidance of $197 million to $200 million
- Mark to market of contingent consideration and indemnity
holdbacks is projected to be a credit of $6 million, compared to
previous guidance of $5 million
- Restructuring costs are expected to be approximately $14
million, which includes approximately $4 million of asset and lease
hold impairment charges related to the transition of SynBio
operations from South San Francisco to Wilsonville, compared to
previous guidance of $9 million to $11 million
- Other income and expense for the year is projected to be
approximately $12 million
- Operating loss is expected to be approximately $220 million
inclusive of one-time charges for restructuring of $14 million,
compared to our previous guidance of $230 million to $234 million
and includes the following:
- Stock-based compensation is expected to be approximately $32
million, compared to our previous guidance of $43 million
- Depreciation and amortization are expected to be approximately
$29 million, unchanged from previous guidance
- Operating expenses for DNA data storage is expected to be
approximately $40 million, unchanged from previous guidance
- Capital expenditure is expected to be approximately $35
million, compared to previous guidance of $40 million
- FY23 Year End Cash is projected to be $325 million, compared to
previous guidance of $320 million
For the fourth quarter of fiscal 2023, Twist provided the
following financial guidance:
- Revenue is expected to be approximately $63 million to $64
million, compared to previous guidance of $62 to $63 million
- Gross margin is expected to be approximately 36%
- R&D expense is expected to be approximately $26
million
- SG&A expense is expected to be approximately $47
million
- Restructure expense is expected to be approximately $1
million
Fiscal 2024 Financial Guidance
For the full fiscal year 2024, Twist provided the following
financial guidance:
- Twist expects to exit fiscal 2024 with adjusted EBITDA
breakeven for its core (SynBio, NGS) business in the fourth
quarter
- Operating expenses for DNA data storage are expected to be $40
million
- Fiscal year end cash is projected to be $220 million
Twist expects to be delayed in reaching its initial timeline in
achieving adjusted EBITDA breakeven for its biopharma business
exiting the fourth quarter of fiscal 2024.
Non-GAAP Information
EBITDA is a non-GAAP financial measure defined as net earnings
or loss adjusted to exclude interest income (expense), benefit from
(provision for) income taxes, depreciation and amortization, and
stock-based compensation expense. Since Twist has a single
reporting and operating segment, to provide adjusted EBITDA for the
SynBio and NGS businesses on a supplemental basis to provide
greater insight into Twist’s businesses to investors, Twist
disaggregates its consolidated results of operations, including but
not limited to revenues, gross profit and operating and other
expenses, and allocates portions thereof to each business.
Similarly, on a supplemental basis, Twist disaggregates
consolidated stock-based compensation expense and other adjustments
and allocates portions thereof to each business. Such disaggregated
supplemental information is not prepared in conformity to
Accounting Standards Codification 280 and thus also constitutes
non-GAAP financial information.
A reconciliation of adjusted EBITDA to a corresponding GAAP
financial guidance measure is not available on a forward-looking
basis because the Company does not provide guidance on GAAP net
loss and is not able to present the various reconciling cash and
non-cash items between GAAP net loss and adjusted EBITDA without
unreasonable effort. In particular, stock-based compensation
expense is impacted by the Company’s future hiring and retention
needs, as well as the future fair market value of its common stock,
all of which is difficult to predict and is subject to change. The
actual amount of these expenses during fiscal 2024 will have a
significant impact on Twist’s future GAAP financial results.
Conference Call Information
The company plans to hold a conference call and live audio
webcast for analysts and investors at 8:00 a.m. Eastern Time today
to discuss its financial results and provide an update on the
company’s business. The conference call will be webcast live
through the Investor Relations section under the “Company” tab at
www.twistbioscience.com. Those parties interested in participating
via telephone must register on the Company’s Investor Relations
website or by clicking here. Upon registration, all telephone
participants will receive the dial-in number along with a unique
PIN number that can be used to access the call. To avoid delays, we
encourage participants to dial into the conference call fifteen
minutes ahead of the scheduled start time. The webcast replay will
be available for two weeks.
About Twist Bioscience
Twist Bioscience is a leading and rapidly growing synthetic
biology and genomics company that has developed a disruptive DNA
synthesis platform to industrialize the engineering of biology. The
core of the platform is a proprietary technology that pioneers a
new method of manufacturing synthetic DNA by “writing” DNA on a
silicon chip. Twist is leveraging its unique technology to
manufacture a broad range of synthetic DNA-based products,
including synthetic genes, tools for next-generation sequencing
(NGS) preparation, and antibody libraries for drug discovery and
development. Twist is also pursuing longer-term opportunities in
digital data storage in DNA and biologics drug discovery. Twist
makes products for use across many industries including healthcare,
industrial chemicals, agriculture and academic research.
Follow us on Twitter | Facebook | LinkedIn | YouTube
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements. All
statements other than statements of historical facts contained
herein are forward-looking statements reflecting the current
beliefs and expectations of management made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995, including, but not limited to, projections under the
headings “Updated Fiscal 2023 Financial Guidance” and “Fiscal 2024
Financial Guidance,” statements regarding future growth and
expansion, timing of the development of data storage solutions,
estimated annual revenues to achieve adjusted EBITDA break-even
point and Twist Bioscience’s other expectations regarding its
future operations plans and financial performance, introduction of
new products, and newly announced partnerships. Forward-looking
statements involve known and unknown risks, uncertainties, and
other important factors that may cause Twist Bioscience’s actual
results, performance, or achievements to be materially different
from any future results, performance, or achievements expressed or
implied by the forward-looking statements. Such risks and
uncertainties include, among others, the ability to achieve the
expected benefits of Twist Bioscience’s restructuring activities
and reduced investments in DNA data storage; the ability to attract
new customers and retain and grow sales from existing customers;
the ability of Twist Bioscience to achieve sufficient revenue to
achieve or maintain positive cash flow from operations or
profitability in any given period; risks and uncertainties of
rapidly changing technologies and extensive competition in
synthetic biology that could make the products Twist Bioscience is
developing obsolete or non-competitive; uncertainties of the
retention of significant customers; the ability of Twist Bioscience
to successfully integrate acquired companies and to achieve
expected benefits from acquisitions; supply chain and other
disruptions caused by COVID-19 or otherwise; risks of third party
claims alleging infringement of patents and proprietary rights or
seeking to invalidate Twist Bioscience’s patents or proprietary
rights; and the risk that Twist Bioscience’s proprietary rights may
be insufficient to protect its technologies. For a description of
the risks and uncertainties that could cause actual results to
differ from those expressed in these forward-looking statements, as
well as risks relating to Twist Bioscience’s business in general,
see Twist Bioscience’s risk factors set forth in Twist Bioscience’s
Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission on May 8, 2023 and subsequent filings with the
SEC. Any forward-looking statements contained in this press release
speak only as of the date hereof, and Twist Bioscience specifically
disclaims any obligation to update any forward-looking statement,
whether as a result of new information, future events or
otherwise.
Twist Bioscience
Corporation
Condensed Consolidated
Statements of Operations
(Unaudited)
(in thousands)
Three months ended June
30,
Nine months ended
June 30,
(In thousands, except per
share data)
2023
2022
2023
2022
Revenues
$
63,740
$
56,113
$
178,163
$
146,259
Operating expenses:
Cost of revenues
$
41,845
$
30,974
$
112,956
$
87,744
Research and development
24,528
36,840
83,148
90,701
Selling, general and administrative
46,057
53,693
142,347
158,790
Restructuring costs
12,672
—
12,672
—
Change in fair value of contingent
considerations and holdbacks
(581
)
(4,231
)
(5,913
)
(13,071
)
Total operating expenses
$
124,521
$
117,276
$
345,210
$
324,164
Loss from operations
$
(60,781
)
$
(61,163
)
$
(167,047
)
$
(177,905
)
Interest income
$
3,968
$
722
$
10,472
$
1,134
Interest expense
(1
)
—
(4
)
(54
)
Other income (expense), net
41
(225
)
(422
)
(626
)
Benefit from / (provision for) income
taxes
(622
)
149
(1,374
)
10,703
Net loss attributable to common
stockholders
$
(57,395
)
$
(60,517
)
$
(158,375
)
$
(166,748
)
Net loss per share attributable to common
stockholders—basic and diluted
$
(1.01
)
$
(1.08
)
$
(2.79
)
$
(3.15
)
Weighted average shares used in computing
net loss per share attributable to common stockholders—basic and
diluted
57,041
56,287
56,753
53,005
Twist Bioscience
Corporation
Condensed Consolidated Balance
Sheets
(Unaudited)
(in thousands)
(In thousands)
June 30, 2023
September 30,
2022
Assets
Current assets:
Cash and cash equivalents
$
307,459
$
378,687
Short-term investments
49,686
126,281
Accounts receivable, net
42,580
40,294
Inventories
36,354
39,307
Prepaid expenses and other current
assets
9,458
11,914
Total current assets
$
445,537
$
596,483
Property and equipment, net
140,778
139,441
Operating lease right-of-use assets
72,028
74,948
Other non-current assets
151,989
150,506
Total assets
$
810,332
$
961,378
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
12,184
$
20,092
Accrued expenses
10,311
10,169
Accrued compensation
27,284
27,023
Current portion of operating lease
liability
13,132
13,642
Other current liabilities
9,911
19,737
Total current liabilities
$
72,822
$
90,663
Operating lease liability, net of current
portion
79,900
81,270
Other non-current liabilities
60
60
Total liabilities
$
152,782
$
171,993
Total stockholders’ equity
$
657,550
$
789,385
Total liabilities and stockholders’
equity
$
810,332
$
961,378
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230804396241/en/
Angela Bitting SVP, Corporate Affairs Twist Bioscience
abitting@twistbioscience.com
Twist Bioscience (NASDAQ:TWST)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Twist Bioscience (NASDAQ:TWST)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024