-- Record revenue of $48.1M in 2QFY22; Increase
of 54% over $31.2M in Fiscal 2021 –
-- Orders Increased 32% in 2QFY22 over Fiscal
2021 to $55.0M --
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 2022 ended
March 31, 2022.
“We’re building momentum through the first half of fiscal 2022,
with another consecutive quarter of record revenue and orders,”
said Emily M. Leproust, Ph.D., CEO and co-founder of Twist
Bioscience. “We continued to deliver a wide range of products to
our customers through the Omicron surge, while bolstering our
balance sheet to reduce downside risk in this unpredictable
market.”
“Twist Biopharma added 5 new partnerships and 15 programs, with
Twist Boston (Abveris) actively working on 81 programs today. For
data storage, we are building important relationships with key
industry associations and are debugging our integrated CMOS chip
for production capacity now, both critical for the introduction of
our storage solutions,” continued Dr. Leproust.
“We remain committed to managing our cash burn in our drive
toward adjusted EBITDA break even for the core business, which we
expect to occur when we reach $300 million in revenue for SynBio
and NGS,” added Jim Thorburn, CFO of Twist.
FISCAL 2022 SECOND QUARTER FINANCIAL RESULTS
- Orders: Total orders received for the second quarter of
fiscal 2022 were $55.0 million compared to $41.7 million for the
same period of fiscal 2021.
- Revenue: Total revenues for the second quarter of fiscal
2022 were $48.1 million compared to $31.2 million for the same
period of fiscal 2021.
- Cost of Revenues: Cost of revenues for the second
quarter of fiscal 2022 was $29.7 million compared to $19.0 million
for the same period of fiscal 2021.
- Research and Development Expenses: Research and
development expenses for the second quarter of fiscal 2022 were
$31.2 million compared to $15.8 million for the same period of
fiscal 2021.
- Selling, General and Administrative Expenses: Selling,
general and administrative expenses for the second quarter of
fiscal 2022 were $54.0 million compared to $34.4 million for the
same period of fiscal 2021.
- Net Loss: Net loss attributable to common stockholders
for the second quarter of fiscal 2022 was $60.7 million, or $1.13
per share, compared to $37.9 million, or $0.78 per share, for the
same period of fiscal 2021.
- Cash Position: As of March 31, 2022, the company had
$604.4 million in cash, cash equivalents and investments.
Recent Highlights:
SynBio and NGS
- Shipped products to approximately 2,000 customers in the second
quarter of fiscal 2022, versus approximately 1,700 in the second
quarter of fiscal 2021.
- Shipped approximately 124,000 genes during the second quarter
of fiscal 2022, compared with approximately 90,000 in the second
quarter of fiscal 2021.
- Entered into four-year supply agreement with Ginkgo Bioworks,
which includes a $58 million minimum in all product purchases over
the lifetime of the contract with Ginkgo having the option to
access significantly more products from Twist.
- Launched Twist High Throughput Antibody Production, a
gene-to-antibody production platform that enables customers to turn
digital DNA sequences into purified IgG antibodies for therapeutic
discovery and screening applications.
- Launched encapsulated synthetic RNA positive controls for
SARS-CoV-2 that can be shipped and stored at room temperature to
enable Twist to serve customers in regions that do not have an
effective cold chain system or easy access to ultra-cold storage
and may also allow the use of the controls in point of care
settings.
- Partnered with C2i Genomics to develop whole-genome cancer
reference materials to be used to provide diagnostic labs with the
ability to better validate and monitor the quality of whole-genome
cancer screening and minimal residual disease (MRD) products.
- Created a replicon tool with Eleven Therapeutics to be used to
study viral genome replication and antiviral drug screening for
SARS-CoV-2 as well as vaccine and therapeutic development.
BioPharma and DNA Data Storage
- Signed an agreement with Kriya to discover and optimize novel
antibodies to be used with Kriya’s gene therapy technology platform
in oncology applications.
- Signed a collaboration with MediSix Therapeutics to discover
novel antibodies to be developed as T-cell therapies.
- Announced that the DNA Data Storage Alliance, of which Twist is
a founding member, has grown to more than 50 members.
- Joined the Storage Networking Industry Association (SNIA) as a
voting member.
- Became a part of the Digital Preservation Coalition’s (DPC)
Supporter Program.
Corporate
- Raised $269.8 million in net proceeds in an upsized
underwritten public offering of common stock.
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 in the range of $191 million -
$199 million
- SynBio revenue including Ginkgo Bioworks is expected to be in
the range of $71 million to $73 million
- NGS revenue is estimated to be in the range of $94 million to
$96 million
- Biopharma revenue is estimated to be approximately $26 million
to $30 million
- Gross margin is expected to be 37% for fiscal 2022 which
reflects the impact of expected costs associated with ramping our
Wilsonville, Oregon “Factory of the Future” facility to bring it
online; excluding these expected costs, gross margin would be 42%
to 44%
- Operating expenses including R&D and SG&A are expected
to be approximately $335 million for the year
- Net loss is expected to be approximately $260 to $265 million,
reflecting the impact of the Abveris acquisition in stock-based
compensation and includes:
- R&D is expected to be approximately $130 million
- Approximately $40 million for DNA data storage
- Stock-based compensation is expected to be approximately $85
million
- Depreciation is expected to be $13 million
- Capital expenditures are expected to be $90-$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 4:30 p.m. Eastern Time today
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 7377195. A telephonic replay of the conference
call will be available beginning approximately four hours after the
call through May 12, 2022 and may be accessed by dialing (855)
859-2056 (domestic) or (404) 537-3406 (international). The replay
conference ID is 7377195. The webcast replay will be available for
two weeks. If a participant will be listen-only, they are
encouraged to listen via the webcast on Twist’s investor page.
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.
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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
heading “Updated Fiscal 2022 Financial Guidance” on future growth
and expansion plans, estimated 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 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 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, including
Abveris, and to achieve expected benefits from acquisitions; 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
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 February
9, 2022 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,
2022
2021
2022
2021
Revenues $
48,127
$
31,204
$
90,145
$
59,364
Operating expenses: Cost of revenues
29,714
19,028
56,770
37,190
Research and development
31,231
15,791
53,861
29,791
Selling, general and administrative
53,998
34,389
105,096
63,181
Change in fair value of contingent consideration and indemnity
holdback
(6,014
)
-
(8,840
)
-
Total operating expenses $
108,929
$
69,208
$
206,887
$
130,162
Loss from operations $
(60,802
)
$
(38,004
)
$
(116,742
)
$
(70,798
)
Interest income
259
157
412
291
Interest expense
(29
)
(95
)
(54
)
(213
)
Other income (expense), net
(245
)
84
(401
)
8
Provision for income taxes
149
(61
)
10,554
(107
)
Net loss attributable to common stockholders $
(60,668
)
$
(37,919
)
$
(106,231
)
$
(70,819
)
Net loss per common share, basic and diluted $
(1.13
)
$
(0.78
)
$
(2.06
)
$
(1.50
)
Weighted average shares used in computing net loss per share
attributable to common stockholders—basic and diluted
53,472
48,709
51,673
47,340
Twist Bioscience Corporation Condensed Consolidated
Balance Sheets (unaudited) (in thousands)
March 31, 2022 September 30, 2021 Assets Cash and
cash equivalents $
407,627
$
465,829
Short-term investments
166,231
12,034
Accounts receivable, net
34,877
28,549
Inventories
44,591
31,800
Prepaid expenses and other current assets
11,049
8,283
Total current assets
664,375
546,495
Long-term investment
30,587
-
Property and equipment, net
91,814
44,122
Operating lease right-of-use assets
78,215
61,580
Goodwill
85,678
22,434
Intangible assets, net
62,493
18,262
Restricted cash, non-current
1,572
1,530
Other non-current assets
6,902
7,674
Total assets $
1,021,636
$
702,097
Current liabilities Accounts payable $
16,815
$
14,900
Accrued liabilities
15,942
6,437
Accrued compensation
21,686
22,327
Current portion of operating lease liabilities
14,166
8,213
Current portion of long-term debt
-
1,552
Other current liabilities
16,023
9,623
Total current liabilities
84,632
63,052
Operating lease liabilities, net of current portion
65,496
53,156
Other non-current liabilities
8,147
5,068
Total liabilities
158,275
121,276
Total stockholders' equity $
863,361
$
580,821
Total liabilities and stockholders’ equity $
1,021,636
$
702,097
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220505005154/en/
Angela Bitting SVP, Corporate Affairs Twist Bioscience
abitting@twistbioscience.com
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