Press Release Details
Twist Bioscience Reports First Quarter Fiscal 2019 Financial Results and Highlights Commercial and Operational Progress
-- Reports Record Revenue of
-- Increasing Orders Show Substantial Growth in Next-Generation Sequencing Products --
-- Diversified Revenue from Genes Products --
-- Updates Fiscal 2019 Financial Guidance --
“We accomplished several significant objectives during the first quarter of fiscal 2019 focused on expanding our product portfolio, diversifying our customer base and continuing to deliver on our mission to supply DNA for improved health and sustainability,” said Emily M. Leproust, Ph.D., CEO and co-founder of Twist. “Our NGS products are resonating with the market and drove top-line growth in the quarter. We received much larger orders more quickly than we anticipated, requiring increased staffing and resulting in higher fixed cost in the near- and medium-term.”
“Moving forward, we intend to maintain a strong top line, work to drive our margin up, and continue to invest strategically in our vertical market opportunities focused on antibody discovery and DNA data storage.”
FISCAL 2019 FIRST QUARTER FINANCIAL RESULTS
- Orders: Total orders received for the three months ended
December 31, 2018 were$15.2 million , compared to$7.4 million for the same period of fiscal 2018. - Revenue: Total revenues were
$11.5 million for the three months endedDecember 31, 2018 compared to$4.3 million for the same period of fiscal 2018. - Cost of Revenues: Cost of revenues for the three months ended
December 31, 2018 $11.9 million compared to$7.5 million for the similar period of fiscal 2018. - Research and Development Expenses: Research and development
expenses for the three months ended
December 31, 2018 were$7.3 million compared to$4.3 million for the same period of fiscal 2018. - Selling, General and Administrative Expenses: Selling, general
and administrative expenses for the three months ended
December 31, 2018 were$15.3 million compared to$9.3 million for the same period of fiscal 2018. - Net Loss: Net loss for the fiscal 2019 first quarter was
$22.6 million , or$1.18 per share, compared to$16.9 million , or$6.42 per share, for the fiscal 2018 first quarter. - Cash Position: As of
December 31, 2018 , the company had$130.2 million in cash, cash equivalents and short term investments.
“We delivered significant revenue and order growth in the first quarter
– both indicators that our products are gaining traction, and we have
scaled our internal infrastructure and resources to position Twist for
rapid growth, particularly from our NGS products,” commented
Fiscal First Quarter 2019 and Recent Highlights
- Shipped approximately 71,000 genes in the first quarter of 2019, compared to approximately 44,800 in the first quarter of fiscal 2018. Current turnaround time for 1.8 kb genes is 14 days
- Continued progress in NGS product line, having shipped to 115 customers in the first quarter of fiscal 2019 with eighteen customers now in production mode
- Expanded the availability of genes five kilobases (5 kb) in length to all customers
- Introduced Twist Application Programming Interface (TAPI)
Received International Organization for Standardization (ISO) 9001:2015 and 13485:2016 certification for its quality management systems for manufacturing its next-generation sequencing (NGS)Target Enrichment Panels1, the latter for medical device applications- Generated early proof-of-concept data from the GPCR library and antibody optimization software for Twist Biopharma
Fiscal 2019 Milestones
SynBio
- Offer customers 5kb genes at disruptive price – Complete
- Introduce Twist Application Programmable Interface (TAPI) for gene ordering - Complete
- Implement and execute new product introductions roadmap
Genomics and Targeted NGS
- Achieve ISO 13485:2016 certification for quality management systems (NGS TE Panels) - Complete
- Convert pilot NGS customers to full production
- Launch e-commerce platform for NGS products in the first half of 2019
- Leverage growth in top line to improve variable and gross margin
-
Launch back-end production in
China for NGS and other products
Biopharma
- Generate early proof-of-concept data from the GPCR library and antibody optimization software for Twist Biopharma – Complete
- Expand proof of concept data packages for the GPCR antibody library and the bio-better programs
- Advance the antibody discovery and optimization programs through non-dilutive collaborations
- Longer-term: seek revenue-generating partnerships
DNA
- Execute roadmap to increase synthesis density on silicon platform and reduce DNA writing cost for DNA digital data storage
- Pursue non-dilutive funding for the continued development of DNA digital data storage
Financial Guidance
For the full fiscal year 2019, Twist continues to expect to report:
-
Revenue in the range of
$47 million to $49 million -
Net loss in the range of
$92 million to $94 million due to:-
Increased stock-based compensation costs of approximately
$7 million , a non-cash item $1.4 million associated with one-time public company readiness and NGS ramp costs incurred in the first quarter of fiscal 2019-
Increased investment in NGS operations of approximately
$0.6 million per quarter driven by staffing increases associated with the increased NGS market opportunity $1.5 million investment in biopharma as we increase our projected investment from$5.0 million
-
Increased stock-based compensation costs of approximately
Litigation Update
On
Conference Call Information
The company plans to hold a conference call and live audio webcast for
analysts and investors at
1Both ISO 13485:2016 and 9001:2015 certifications are for
Twist’s
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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,
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, Twist Bioscience’s anticipated fiscal 2019 milestones,
conversion of pilot customers , revenue growth across all product
categories and geographic regions, validation of Twist’s GPCR and
antibody optimization software for Twist Biopharma and delivery on
Twist’s mission to improve healthcare and sustainability through
synthetic DNA. Such 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 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 Bioscience Corporation | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(Unaudited) | ||||||||
(in thousands, except share and per share data) | ||||||||
Three Months Ended December 31, | ||||||||
2018 | 2017 | |||||||
Revenues | $ | 11,492 | $ | 4,313 | ||||
Operating expenses: | ||||||||
Cost of revenues | 11,857 | 7,498 | ||||||
Research and development | 7,273 | 4,303 | ||||||
Selling, general and administrative | 15,259 | 9,263 | ||||||
Total operating expenses | 34,389 | 21,064 | ||||||
Loss from operations | (22,897 | ) | (16,751 | ) | ||||
Interest income | 664 | 158 | ||||||
Interest expense | (348 | ) | (273 | ) | ||||
Other income (expense), net | (15 | ) | (19 | ) | ||||
Provision for income taxes | (43 | ) | (52 | ) | ||||
Net loss attributable to common stockholders | $ | (22,639 | ) | $ | (16,937 | ) | ||
Net loss per common share, basic and diluted | $ | (1.18 | ) | $ | (6.42 | ) | ||
Shares used to compute net loss per common share, basic and diluted | 19,187,533 | 2,638,068 | ||||||
Twist Bioscience Corporation | |||||||
Condensed Consolidated Balance Sheet | |||||||
(in thousands) | |||||||
December 31, 2018 | September 30, 2018 | ||||||
(Unaudited) |
(1) |
|
|||||
Assets | |||||||
Cash and cash equivalents | $ | 66,459 | $ | 80,757 | |||
Short-term investments | 63,707 | - | |||||
Accounts receivable, net | 6,978 | 5,419 | |||||
Inventory | 5,561 | 6,028 | |||||
Prepaid expenses and other current assets | 3,958 | 3,467 | |||||
Total current assets | 146,663 | 95,671 | |||||
Property and equipment, net | 13,596 | 12,331 | |||||
Other assets | 4,194 | 7,789 | |||||
Total assets | 164,453 | 115,791 | |||||
Current liabilities | |||||||
Accounts payable | $ | 6,725 | $ | 7,531 | |||
Accrued liabilities | 7,867 | 7,567 | |||||
Current portion of long-term debt | 3,333 | 2,500 | |||||
Other current liabilities | 1,073 | 939 | |||||
Total current liabilities | 18,998 | 18,537 | |||||
Redeemable convertible preferred stock warrant liability | - | 631 | |||||
Long-term debt, net of current portion | 6,526 | 7,218 | |||||
Other non-current liabilities | 333 | 344 | |||||
Total liabilities | 25,857 | 26,730 | |||||
Redeemable convertible preferred stock | - | 290,483 | |||||
Total stockholders’ equity (deficit) | 138,596 | (201,422 | ) | ||||
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit) | $ | 164,453 | $ | 115,791 | |||
(1) The condensed balance sheet as of September 30, 2018 has been derived from the audited financial statements at that date included in the Company's Form 10-K filed with the Securities and Exchange Commission dated December 20, 2018. |
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Source:
Investor Contact:
Argot Partners
Maeve Conneighton
212-600-1902
maeve@argotpartners.com
Media Contact:
Angela Bitting
925- 202-6211
media@twistbioscience.com