On August 5, 2022 Twist Bioscience Corporation (NASDAQ: TWST), a company enabling customers to succeed through its offering of high-quality synthetic DNA using its silicon platform, reported financial results and business highlights for the third quarter of fiscal 2022 ended June 30, 2022 (Press release, Twist Bioscience, AUG 5, 2022, View Source [SID1234617701]).
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"We are the high quality, low cost leader and as the macroeconomic environment continues to hold uncertainty, Twist’s product offerings are resonating with customers," said Emily M. Leproust, Ph.D., CEO and co-founder of Twist Bioscience. "We continue to see large accounts expanding their footprint while we also focus on diversifying our risk across an increasing number of customers, particularly in biopharma. We entered into our first exclusive option and license agreement for a Twist-discovered antibody and continue to build a robust ecosystem for DNA data storage through educational materials, including the most recently published white paper, and by driving toward an interoperable system through the development of industry standards."
Dr. Leproust continued, "Moving forward, we plan to launch the Factory of the Future in January 2023, which will facilitate growth across all areas of our business. We are well positioned to take market share in synbio and NGS, deliver new antibody targets for our biopharma customers and advance our efforts in DNA data storage toward our first commercial solution, all while targeting toward adjusted EBITDA breakeven at $300 million annual revenue for the core business."
FISCAL 2022 THIRD QUARTER FINANCIAL RESULTS
Orders: Total orders received for the third quarter of fiscal 2022 were $59.7 million compared to $39.1 million for the same period of fiscal 2021.
Revenue: Total revenues for the third quarter of fiscal 2022 were $56.1 million compared to $35.0 million for the same period of fiscal 2021.
Cost of Revenues: Cost of revenues for the third quarter of fiscal 2022 was $31.0 million compared to $20.9 million for the same period of fiscal 2021.
Research and Development Expenses: Research and development expenses for the third quarter of fiscal 2022 were $36.8 million compared to $19.8 million for the same period of fiscal 2021.
Selling, General and Administrative Expenses: Selling, general and administrative expenses for the third quarter of fiscal 2022 were $53.7 million compared to $34.5 million for the same period of fiscal 2021.
Net Loss: Net loss attributable to common stockholders for the third quarter of fiscal 2022 was $60.5 million, or $1.08 per share, compared to $40.0 million, or $0.82 per share, for the same period of fiscal 2021.
Cash Position: As of June 30, 2022, the company had $527.6 million in cash, cash equivalents and investments.
Recent Highlights:
SynBio and NGS
Shipped products to approximately 1,900 customers in the third quarter of fiscal 2022, versus approximately 1,800 in the third quarter of fiscal 2021.
Shipped approximately 163,000 genes during the third quarter of fiscal 2022, compared with approximately 107,000 in the third quarter of fiscal 2021.
Launched two human monkeypox synthetic DNA controls, expanding Twist’s portfolio of synthetic controls and reference standards.
Offered two new SARS-CoV-2 controls for the BA.2.12.1 sublineage of the omicron variant.
Received expanded Emergency Use Authorization from the U.S. Food and Drug Administration for the SARS-CoV-2 Next-Generation Sequencing (NGS) Assay developed with Biotia for the qualitative detection, identification and differentiation of SARS-CoV-2 lineages and identification of specific genomic mutations.
Launched Twist MRD Rapid 500 Panel to enable customers to implement fully customizable panels for $50 per sample.
Launched the Twist Human Methylome Panel covering 84.2% of GpC islands to support the discovery of differentially methylated regions and epigenetic target identification for cancer metastasis and human development research.
Entered into a collaboration with DNAnexus to integrate DNAnexus’ biomedical data analysis platform with Twist’s NGS Methylation Detection and Unique Molecular Identifier Adapter Systems.
BioPharma and DNA Data Storage
Entered into a research, exclusive option and license agreement with Astellas for a Twist-discovered antibody targeting an undisclosed checkpoint inhibitor.
Entered into a collaboration with Ildong Pharmaceutical, Twist’s first collaboration with a South Korea-based company, under which Ildong will license a suite of Twist VHH antibody libraries to use to discover and develop antibodies for applications in immuno-oncology.
Entered into an antibody discovery agreement with Xilio Therapeutics to advance the development of novel immunotherapies.
Hosted a ribbon-cutting ceremony for the new location of Twist Boston, also known as Abveris, in Quincy, MA.
The DNA Data Storage Alliance joined SNIA as a Technology Affiliate group to accelerate its mission to create an interoperable ecosystem for DNA-based data storage solutions.
Participated in panels and presentations at key data storage and industry conferences including Fujifilm’s 12th Annual Global IT Executive Summit, the 2022 MRS Spring Meeting and Exhibit, and the Flash Memory Summit.
Highlighted a DNA data storage white paper that quantifies the need for new storage mediums to address the zone of potential insufficiency where current methods of storing data, even when scaled, will not meet future demand.
Updated Fiscal 2022 Financial Guidance
The following statements are based on Twist’s current expectations for fiscal 2022. 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 2022, Twist provided the following updated financial guidance:
Revenue is now expected to be approximately $203 million, an increase from previous guidance of $191 million to $199 million
SynBio revenue including Ginkgo Bioworks is expected to be $80 million, an increase from previous guidance of $71 million to $73 million
NGS revenue is estimated to be approximately $97 million, an increase from previous guidance of $94 million to $96 million
Biopharma revenue is estimated to be approximately $26 million, at the low end of the previous guidance range of $26 million to $30 million
Gross margin is expected to be 40% for fiscal 2022
Operating expenses including R&D and SG&A are expected to be approximately $330 million for the year
Net loss is expected to be approximately $250 million, reflecting the impact of the Abveris acquisition in stock-based compensation and includes:
R&D expense is expected to be approximately $125 million, a decrease from previous guidance of $130 million
Approximately $40 million of R&D expense is expected to be for DNA data storage
Stock-based compensation is expected to be approximately $80 million
Depreciation is expected to be $14 million
Capital expenditures are expected to be in the range of $95 to $100 million, including building out the "Factory of the Future"
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.