– Record revenue of $75.3M in 2QFY24, an
increase of 25% over $60.2M in 2QFY23 –
– Orders increased to $93.2M in 2QFY24, growth
of 45% over $64.2M in 2QFY23 –
— Increased FY 2024 revenue guidance to a range
of $300M to $304M; Increased FY 2024 gross margin guidance to a
range of 41.5 to 42.0% —
— Company to host conference call today at 4:30
p.m. Eastern Time —
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 second quarter of fiscal 2024 ended
March 31, 2024.
"This was another very strong quarter for Twist with both
revenue and orders increasing to $75.3 million and $93.2 million,
respectively," said Emily M. Leproust, Ph.D., CEO and co-founder of
Twist Bioscience. "We're encouraged by the reception of Express
Genes, with more than 700 accounts, including 100 net new accounts
ordering this differentiated product since launch. We see
consistent strength In NGS, where our tools are used across fields
and during the quarter we announced several differentiated products
spanning research areas and geographies."
Dr. Leproust continued, "We remain steadfast and focused on our
path to profitability. For the full business, gross margin improved
from 31% to 41% for 2QFY23 and 2QFY24, respectively. More
importantly, cash flow from operating activities continues to
improve, and we are driving to breakeven. For the six months ended
March 31, 2024, net cash used in operating activities was $42.4
million, compared to $98.4 million for the equivalent six month
period in 2023. And, as we grow revenue, we continue to take steps
to improve gross margin, driving toward gross margin over 50% by
the end of fiscal 2025."
FISCAL 2024 SECOND QUARTER FINANCIAL RESULTS
- Orders: Total orders received for the second quarter of
fiscal 2024 increased to $93.2 million compared to $64.2 million
for the same period of fiscal 2023.
- Revenue: Total revenues for the second quarter of fiscal
2024 increased to $75.3 million compared to $60.2 million for the
same period of fiscal 2023.
- SynBio revenue increased to $29.8 million for the second
quarter of fiscal 2024 compared to $24.2 million for the same
period of fiscal 2023.
- NGS revenue increased to $40.8 million for the second quarter
of fiscal 2024 compared to $29.0 million for the same period of
fiscal 2023.
- Biopharma revenue was $4.7 million for the second quarter of
fiscal 2024 compared to $7.0 million in the same period of fiscal
2023.
- Cost of Revenues: Cost of revenues for the second
quarter of fiscal 2024 was $44.4 million compared to $41.7 million
for the same period of fiscal 2023.
- Gross Margin: Gross margin for the second quarter of
fiscal 2024 increased to 41% compared to 31% for the same period of
fiscal 2023.
- Research and Development Expenses: Research and
development expenses for the second quarter of fiscal 2024 were
$24.1 million compared to $27.4 million for the same period of
fiscal 2023.
- Selling, General and Administrative Expenses: Selling,
general and administrative expenses for the second quarter of
fiscal 2024 were $55.6 million compared to $54.0 million for the
same period of fiscal 2023.
- Net Loss: Net loss attributable to common stockholders
for the second quarter of fiscal 2024 was $45.5 million, or $0.79
per share, compared to $59.2 million, or $1.04 per share, for the
same period of fiscal 2023.
- Adjusted EBITDA: Adjusted EBITDA for the second quarter
of fiscal 2024 was -$26.8 million compared to -$45.5 million for
the same period of fiscal 2023. See the table included in this
release for a reconciliation between our Adjusted EBITDA and net
loss attributable to common stockholders, the most directly
comparable GAAP financial measure.
- Cash Position: As of March 31, 2024, the company had
$293.3 million in cash, cash equivalents and short-term
investments.
Recent Highlights:
- Shipped products to 2,253 customers in the second quarter of
fiscal 2024, compared to approximately 2,100 customers in the
second quarter of fiscal 2023.
- Shipped approximately 193,000 genes during the second quarter
of fiscal 2024, compared with approximately 152,000 genes during
the second quarter of fiscal 2023.
- Launched the cfDNA Library Preparation Kit to maximize the
number of unique cfDNA molecules captured during library
preparation for higher confidence in the accuracy and sensitivity
of liquid biopsy tests.
- Launched IVDR-compliant Twist Precision Dx Products1, the first
Twist products specifically developed to be included within
regulated customer products.
- Announced technology early access of the Twist Flex Prep Ultra
High-Throughput (UHT) Kit, designed to accelerate NGS's microarray
conversion and adoption in agricultural genomics by enabling
unparalleled throughput at a fraction of the cost of existing on
market solutions.
- Collaborated with Element Biosciences to develop the Twist for
Element, Exome 2.0 plus Comprehensive Exome Spike-in Workflow for
Element's AVITI™ System.
- Launched a new Human Pangenome Spike-in for the Twist Exome 2.0
panel, developed to enable researchers to detect a more complete
view of genetic variation during whole exome sequencing.
Updated Fiscal 2024 Financial Guidance
The following statements are based on Twist’s current
expectations for fiscal 2024, including the third and fourth
quarters of fiscal 2024. 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 2024, Twist provided the following
updated financial guidance:
- Total revenue is expected to be in the range of $300 million to
$304 million compared to previous guidance of $288 million to $293
million, indicating year over year growth of 22 to 24 percent, and
includes the following:
- SynBio revenue is expected to be in the range of $118 million
to $120 million compared to the previous estimate of $114 million
to $117 million, indicating year over year growth of 20 to 22
percent
- NGS revenue is expected to be in the range of $162 million to
$164 million compared to the previous estimate of $150 million to
$152 million, indicating year over year growth of 31 to 33
percent
- Biopharma revenue is expected to be approximately $20 million
compared to the previous estimate of approximately $24 million,
indicating year over year decrease of approximately 13 percent
- Gross margin is expected to be approximately 41.5% to 42.0% for
fiscal 2024, an increase from previous guidance of 40% to 41%
- Loss from operations before taxes of approximately $183 million
to $188 million, a decrease from $189 million to $194 million
provided previously
- Capital expenditure of $15 million, unchanged from prior
guidance
- Ending cash, cash equivalents and short-term investments at
September 30, 2024 of more than $245 million.
For the third quarter of fiscal year 2024, Twist provided the
following financial guidance:
- Total revenue of approximately $77 million
- SynBio revenue of approximately $31 million
- NGS revenue of approximately $41 million
- Biopharma revenue of approximately $5 million
- Gross margin of 41-42%
For the fourth quarter of fiscal year 2024, Twist provided the
following financial guidance:
- Total revenue in the range of $77 million to $80 million
- Gross margin of 43-44%
1For in vitro diagnostic use. Not available in all regions and
countries.
Non-GAAP Information
This release includes EBITDA and adjusted EBITDA, which are
non-GAAP financial measures, for the periods presented. EBITDA is
defined as net loss adjusted to exclude interest income, interest
expense, income tax provision (benefit) and depreciation and
amortization. Adjusted EBITDA is defined as net loss adjusted to
exclude interest income, interest expense, income tax provision
(benefit), depreciation and amortization, other income/expense,
net, change in fair value of contingent considerations and
holdbacks, stock-based compensation expense and other items
detailed in the reconciliation table below that we believe are not
indicative of our ongoing results. These non-GAAP measures are not
in accordance with, or an alternative for, measures prepared in
accordance with generally accepted accounting principles (GAAP) and
may be different from non-GAAP measures used by other companies. In
addition, these non-GAAP measures are not based on any
comprehensive set of accounting rules or principles. We believe
that these non-GAAP financial measures, when considered together
with our financial information prepared in accordance with GAAP,
can enhance investors’ and analysts’ ability to meaningfully
compare our results from period to period and to our
forward-looking guidance, and to identify operating trends in our
business. However, non-GAAP information is not superior to
financial measures calculated in accordance with GAAP, is presented
for supplemental informational purposes only, has limitations as an
analytical tool and should not be considered in isolation or as a
substitute for financial information presented in accordance with
GAAP. A reconciliation table of the most comparable GAAP financial
measure to the non-GAAP financial measures is included at the end
of this press release.
A reconciliation of adjusted EBITDA for the fourth quarter of
fiscal 2024 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 4:30 p.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 LinkedIn | X | YouTube | Instagram
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
heading “Updated Fiscal 2024 Financial Guidance” statements
regarding future growth and expansion, timing of the development of
data storage solutions, revenue growth, estimated annual revenues,
ability and timing to achieve profitability and ability to increase
gross margins 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 will depend heavily on the
success of our existing products and the development and
commercialization of additional products in the synthetic biology,
biologic drug and data storage industries; 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; 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 Annual Report on Form 10-K
filed with the SEC on November 21, 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
March 31,
Six months ended
March 31,
(In thousands, except per share
data)
2024
2023
2024
2023
Revenues
$
75,302
$
60,180
$
146,800
$
114,423
Operating expenses:
Cost of revenues
$
44,420
$
41,669
$
86,955
$
71,111
Research and development
24,149
27,379
47,249
58,621
Selling, general and administrative
55,622
53,965
108,462
96,289
Change in fair value of contingent
considerations and holdbacks
—
(1,196
)
—
(5,331
)
Total operating expenses
$
124,191
$
121,817
$
242,666
$
220,690
Loss from operations
$
(48,889
)
$
(61,637
)
$
(95,866
)
$
(106,267
)
Interest income
3,941
3,464
8,061
6,504
Interest expense
—
(2
)
—
(3
)
Other income (expense), net
(199
)
(305
)
(230
)
(462
)
Income tax (provision) / benefit
(345
)
(676
)
(465
)
(752
)
Net loss attributable to common
stockholders
$
(45,492
)
$
(59,156
)
$
(88,500
)
$
(100,980
)
Net loss per share attributable to common
stockholders—basic and diluted
$
(0.79
)
$
(1.04
)
$
(1.54
)
$
(1.78
)
Weighted average shares used in computing
net loss per share attributable to common stockholders—basic and
diluted
57,779
56,777
57,637
56,608
Twist Bioscience
Corporation
Condensed Consolidated Balance
Sheets
(Unaudited)
(in thousands)
(In thousands)
March 31, 2024
September 30,
2023
Assets
Current assets:
Cash and cash equivalents
$
243,348
$
286,470
Short-term investments
49,994
49,943
Accounts receivable, net
35,993
44,064
Inventories
30,376
32,063
Prepaid expenses and other current
assets
12,158
11,716
Total current assets
$
371,869
$
424,256
Property and equipment, net
121,339
131,830
Operating lease right-of-use assets
63,666
71,531
Other non-current assets
145,972
148,786
Total assets
$
702,846
$
776,403
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
7,703
$
14,052
Accrued expenses
14,513
10,754
Accrued compensation
25,214
25,818
Current portion of operating lease
liability
14,621
14,896
Other current liabilities
5,439
7,803
Total current liabilities
$
67,490
$
73,323
Operating lease liability, net of current
portion
74,804
79,173
Other non-current liabilities
421
475
Total liabilities
$
142,715
$
152,971
Total stockholders’ equity
$
560,131
$
623,432
Total liabilities and stockholders’
equity
$
702,846
$
776,403
Twist Bioscience Corporation Adjusted
EBITDA (Unaudited) (in thousands)
The following table sets forth a reconciliation between our
Adjusted EBITDA and net loss attributable to Twist Bioscience
Corporation, the most directly comparable GAAP financial measure,
for each of the periods presented:
Three months ended
March 31,
Six months ended
March 31,
(In thousands)
2024
2023
2024
2023
GAAP net income
$
(45,492
)
$
(59,156
)
$
(88,500
)
$
(100,980
)
Add (Deduct) adjustments:
$
—
Interest income
(3,941
)
(3,464
)
(8,061
)
(6,504
)
Interest expense
—
2
—
3
Income tax provision (benefit)
345
676
465
752
Depreciation and amortization
8,304
7,028
16,475
12,320
EBITDA
$
(40,784
)
$
(54,914
)
$
(79,621
)
$
(94,409
)
Add (Deduct) adjustments:
Other income/expense, net
199
305
230
462
Change in fair value of contingent
considerations and holdbacks
—
(1,196
)
—
(5,331
)
Stock-based compensation expense
13,824
10,259
24,844
7,934
Adjusted EBITDA
$
(26,761
)
$
(45,546
)
$
(54,547
)
$
(91,344
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240502767472/en/
For Investors: Angela Bitting SVP, Corporate Affairs
925-202-6211 abitting@twistbioscience.com
For Media: Amanda Houlihan Communications Manager
774-265-5334 ahoulihan@twistbioscience.com
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