-- Fiscal 2020 Revenues of $90.1M; Increase of
66% over $54.4M in Fiscal 2019 --
-- Strong Growth in Synthetic Biology, NGS
Businesses --
-- Twist Biopharma Established 13 Partnerships,
8 with Milestones and/or Royalties in FY20 --
-- Expect Revenue of $110M to $118M for Fiscal
2021 --
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 fourth quarter and full year fiscal
2020 ended September 30, 2020.
“We ended our fiscal year with record revenue and orders against
the backdrop of a global pandemic and significant uncertainty,”
said Emily M. Leproust, Ph.D., CEO and co-founder of Twist
Bioscience. “While we are proud of the new products we introduced
to aid in the fight against COVID-19, which complemented our
revenue, it was our core synthetic biology and next-generation
sequencing (NGS) product lines that drove our overarching
success.
“We have aggressive plans for growth and expansion in fiscal
2021 and beyond, continuing to build our foundation for sustained
success across synthetic biology, NGS, biopharma and DNA data
storage.”
FISCAL 2020 FINANCIAL RESULTS
- Orders: Total orders received for fiscal 2020 were
$116.7 million compared to $70.0 million for fiscal 2019.
- Revenue: Total revenues were $90.1 million for fiscal
2020 compared to $54.4 million for fiscal 2019.
- Cost of Revenues: Cost of revenues for fiscal 2020 was
$61.4 million compared to $47.4 million for fiscal 2019.
- Research and Development Expenses: Research and
development expenses for fiscal 2020 were $43.0 million compared to
$35.7 million for fiscal 2019.
- Selling, General and Administrative Expenses: Selling,
general and administrative expenses for fiscal 2020 were $103.3
million compared to $80.1 million for fiscal 2019.
- Net Loss: Net loss for fiscal 2020 was $139.9 million,
or $3.57 per share, compared to $107.7 million, or $3.92 per share,
for fiscal 2019.
- Cash Position: As of September 30, 2020, the company had
$290.0 million in cash, cash equivalents and short term
investments.
FISCAL 2020 FOURTH QUARTER FINANCIAL RESULTS
- Orders: Total orders received for the fourth quarter of
fiscal 2020 were $42.7 million, compared to $20.0 million for the
same period of fiscal 2019.
- Revenue: Total revenues were $32.4 million for the
fourth quarter of fiscal 2020 compared to $15.7 million for the
same period of fiscal 2019.
- Cost of Revenues: Cost of revenues for the fourth
quarter of fiscal 2020 was $17.6 million compared to $12.4 million
for the same period of fiscal 2019.
- Research and Development Expenses: Research and
development expenses for the fourth quarter of fiscal 2020 were
$11.7 million compared to $10.5 million for the same period of
fiscal 2019.
- Selling, General and Administrative Expenses: Selling,
general and administrative expenses for the fourth quarter of
fiscal 2020 were $27.2 million compared to $24.4 million for the
same period of fiscal 2019.
- Net Loss: Net loss for the fourth quarter of fiscal 2020
was $24.3 million, or $0.54 per share, compared to $31.2 million,
or $0.96 per share, for the fourth quarter of fiscal 2019.
"Over the last year, we delivered on revenue, orders, margin and
product pipeline in a very challenging environment,” commented Jim
Thorburn, CFO of Twist. “We have a strong balance sheet and
momentum moving into fiscal 2021, and look forward to an exciting
year ahead.”
Fiscal Fourth Quarter 2020 and Recent Highlights
- Shipped products to approximately 2,200 customers in fiscal
2020, versus approximately 1,300 in fiscal 2019.
- Presented data on our Twist Custom Target Capture Panel, Fast
Hybridization Enrichment System and our Target Enrichment for
Infectious Disease at the American Society of Human Genetics 2020
Annual Meeting.
- Announced broad strategic partnership with Neogene
Therapeutics, Inc. to leverage Neogene’s proprietary expertise in
targeting tumor neo-antigens, mutated proteins found in cancer
cells due to cancer-associated DNA mutations, together with Twist’s
DNA synthesis platform and product lines to develop personalized
chimeric antigen receptor (CAR) T cell therapies and T cell
receptor (TCR) therapies for patients with cancer.
- Reported preclinical data demonstrating the potent neutralizing
effects of multiple potential therapeutic antibodies identified by
Twist Biopharma, both Immunoglobulin G (IgG) antibodies and
substantially smaller single domain VHH “nanobodies,” against
SARS-CoV-2, the virus that causes COVID-19. These neutralizing
effects were found to be comparable to or better than those seen
with antibody candidates derived from patients who had recovered
from COVID-19. The data were collected from studies conducted by
Saint Louis University and independently verified by scientists at
Colorado State University.
- Achieved significant milestones on our DNA data storage roadmap
to miniaturize the silicon platform technology down to 150
nanometer pitch or less. Twist is now consistently able to
synthesize DNA using five-micron devices at a 10 micron pitch. In
addition, we have fabricated our next R&D-stage silicon chip
with 300 nanometer devices on a one-micron pitch chip.
- Formed the DNA Data Storage Alliance with leading technology
and synthetic biology companies to create a comprehensive industry
roadmap designed to help the industry achieve interoperability
between solutions and help establish the foundations for a
cost-effective commercial archival storage ecosystem for the
explosive growth of digital data.
- New Netflix Original Series ’Biohackers’ stored in Twist’s
synthetic DNA.
Fiscal 2021 Financial Guidance
The following statements are based on Twist’s current
expectations for fiscal 2021. 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. Twist does not plan to update,
nor does it undertake any obligation to update, this outlook in the
future.
For the full fiscal year 2021, Twist provided the following
financial guidance:
- Revenue expected in the range of $110 million to $118 million
- Revenue from Ginkgo Bioworks expected to be approximately $11
to $12 million
- Synbio revenue excluding Ginkgo Bioworks is expected to be in
the range of $41 to $44 million
- NGS revenue is estimated to be in the range of $54 to $58
million
- Biopharma revenue is estimated to be approximately $4
million
- Gross margin is expected to be approximately 32% for fiscal
2021
- Operating expenses including R&D and SG&A are expected
to be $174 million for the year
- Net loss expected in the range of $136 million to $141 million
to reflect our increased investments in our commercial organization
and research and development activities
- R&D is expected to be approximately $60 million
- Stock-based compensation is expected to be approximately $20
million
- Depreciation is expected to be $7 million
- Capital expenditures are expected to be $30 million, including
expansion into “Factory of the Future”
Fiscal 2021 First Quarter Financial Guidance
For the first quarter of fiscal 2021, Twist provided the
following financial guidance:
- Revenue expected in the range of $25 million to $26
million
COVID-19 Considerations
During the three months ended September 30, 2020, financial
results of the Company were not significantly affected by the
COVID-19 outbreak. However, the extent to which the COVID-19
outbreak affects Twist’s future financial results and operations is
subject to a high degree of uncertainty and will depend on future
developments, including the duration, spread and treatment of the
outbreak domestically and abroad.
Conference Call Information
The company plans to hold a conference call and live audio
webcast for analysts and investors today at 8:00 a.m. Eastern Time
to discuss its financial results and provide an update on the
company’s business. The call can be accessed by dialing (866)
688-0947 (domestic) or (409) 217-8781 (international) and refer to
the conference ID 2947139. A telephonic replay of the conference
call will be available beginning approximately four hours after the
call through November 30, 2020 and may be accessed by dialing (855)
859-2056 (domestic) or (404) 537-3406 (international). The replay
conference ID is 2947139. The webcast replay will be available for
two weeks.
Given the circumstances globally, it is recommended to dial-in
at most 15 to 20 minutes prior to the call start to reduce waiting
times. If a participant will be listen-only, they are encouraged to
listen via the webcast on Twist’s investor page.
About Twist Bioscience Corporation
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
Investor Relations Information
Twist uses the investor relations section on its website as a
means of complying with its disclosure obligations under Regulation
FD. Accordingly, investors should monitor Twist's investor
relations website in addition to following Twist's press releases,
SEC filings, and public conference calls and webcasts.
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, statements under the
headings “Fiscal 2021 Financial Guidance” and “Fiscal 2021 First
Quarter Financial Guidance,” future growth and expansion plans and
Twist’s other expectations regarding its future financial
performance, the impact of the COVID-19 pandemic on Twist’s future
financial performance, and Twist’s ability to address the
challenges posed by the business and economic impacts of COVID-19
pandemic, diversification and revenue growth across all product
categories, introduction of new products, the use of our products
by the healthcare sectors for the potential detection and treatment
of diseases, and expectations regarding newly announced
partnerships. Such forward-looking statements involve known and
unknown risks, uncertainties, and other important factors that may
cause Twist’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
risks and uncertainties of the duration, extent and impact of the
COVID-19 pandemic, including any reductions in demand for our
products (or deferred or canceled orders) globally or in certain
regions; the ability to attract new customers and retain and grow
sales from existing customers; risks and uncertainties of rapidly
changing technologies and extensive competition in synthetic
biology could make the products Twist is developing obsolete or
non-competitive; uncertainties of the retention of significant
customers; supply chain and other disruptions caused by the
COVID-19 pandemic or otherwise; risks of third party claims
alleging infringement of patents and proprietary rights or seeking
to invalidate Twist’s patents or proprietary rights; and the risk
that Twist’s proprietary rights may be insufficient to protect its
technologies. For a further 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’s business in general, see Twist’s risk factors
set forth in Twist’s Annual Report on Form 10-Q filed with the
Securities and Exchange Commission (SEC) on August 12, 2020 and
subsequent filings with the SEC. Additional risk factors may be
described in the “Risk Factors” section of Twist’s Annual Report on
Form 10-K to be filed with the SEC on or about November 25, 2020.
In addition, many of the foregoing risks and uncertainties are, and
could be, exacerbated by the COVID-19 pandemic and any worsening of
global or regional business and economic environment as a result.
We cannot at this time predict the extent of the impact of the
COVID-19 pandemic and any resulting business or economic impact,
but it could have a material adverse effect on our business,
financial condition, results of operations and cash flows. 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, except per
share data)
Three months ended September
30,
Twelve months ended September
30,
2020
2019
2020
2019
Revenues $
32,432
$
15,736
$
90,100
$
54,385
Operating expenses: Cost of revenues
17,578
12,386
61,406
47,426
Research and development
11,636
10,496
43,006
35,683
Selling, general and administrative
27,185
24,423
103,267
80,126
Litigation settlement
-
-
22,500
-
Total operating expenses $
56,399
$
47,305
$
230,179
$
163,235
Loss from operations $
(23,967
)
$
(31,569
)
$
(140,079
)
$
(108,850
)
Interest income
112
789
1,499
3,032
Interest expense
(143
)
(288
)
(787
)
(1,294
)
Other income (expense), net
(57
)
(2
)
(182
)
(265
)
Provision for income taxes
(263
)
(111
)
(382
)
(292
)
Net loss attributable to common stockholders $
(24,318
)
$
(31,181
)
$
(139,931
)
$
(107,669
)
Net loss per common share, basic and diluted $
(0.54
)
$
(0.96
)
$
(3.57
)
$
(3.92
)
Weighted average shares used in computing net loss per share
attributable to common stockholders—basic and diluted
44,778
32,573
39,190
27,462
Twist Bioscience Corporation Condensed Consolidated
Balance Sheets (unaudited) (in thousands)
September 30, 2020 September 30, 2019 Assets Cash and
cash equivalents $
93,667
$
46,735
Short-term investments
196,335
91,372
Accounts receivable, net
26,376
12,104
Inventories
12,289
7,330
Prepaid expenses and other current assets
6,203
2,594
Total current assets
334,870
160,135
Property and equipment, net
25,466
20,835
Operating lease right-of-use assets
33,699
-
Other non-current assets
4,847
6,024
Total assets $
398,882
$
186,994
Current liabilities Accounts payable $
4,830
$
9,760
Accrued liabilities
18,846
16,444
Current portion of long-term debt
3,333
3,333
Current portion of operating lease liabilities
6,409
-
Other current liabilities
2,611
817
Total current liabilities
36,029
30,354
Operating lease liabilities, net of current portion
24,837
-
Long-term debt, net of current portion
1,403
4,400
Other non-current liabilities
351
158
Total liabilities
62,620
34,912
Total stockholders’ equity (deficit) $
336,262
$
152,082
Total liabilities and stockholders’ equity $
398,882
$
186,994
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201123005560/en/
Investor Contact: Argot Partners Maeve Conneighton 212-600-1902
maeve@argotpartners.com
Media Contact: Angela Bitting 925- 202-6211
media@twistbioscience.com
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