Press Release Details
Twist Bioscience Reports Third Quarter Fiscal 2021 Financial Results
-- Revenue Growth of 65% over Fiscal 2020 Third Quarter --
-- Order Growth of 58% Year over Year --
-- Gross Margin of 40% for the Quarter --
“It is an exciting time to be at the forefront of synthetic biology,” said Emily M. Leproust, Ph.D., CEO and co-founder of
FISCAL 2021 THIRD QUARTER FINANCIAL RESULTS
-
Orders: Total orders received for the third quarter of fiscal 2021 were
$39.1 million , compared to$24.7 million for the same period of fiscal 2020. -
Revenue: Total revenues were
$35.0 million for the third quarter of fiscal 2021 compared to$21.2 million for the same period of fiscal 2020. -
Cost of Revenues: Cost of revenues for the third quarter of fiscal 2021 was
$20.9 million compared to$16.5 million for the same period of fiscal 2020. -
Research and Development Expenses: Research and development expenses for the third quarter of fiscal 2021 were
$19.8 million compared to$10.4 million for the same period of fiscal 2020. -
Selling, General and Administrative Expenses: Selling, general and administrative expenses for the third quarter of fiscal 2021 were
$34.5 million compared to$22.5 million for the same period of fiscal 2020. -
Net Loss: Net loss for the third quarter of fiscal 2021 was
$40.0 million , or$0.82 per share, compared to$28.2 million , or$0.67 per share, for the third quarter of fiscal 2020. -
Cash Position: As of
June 30, 2021 , the company had$519.4 million in cash, cash equivalents and short-term investments.
“Our gross margin was 40% for the quarter, reflecting the higher contribution margin and mix of NGS tools. We are raising our revenue guidance based on continued strength across our business,” commented
Fiscal Third Quarter 2021 and Recent Highlights
- Shipped products to approximately 1,800 customers in the third quarter of fiscal 2021 versus approximately 1,400 in the same period of fiscal 2020.
- Shipped 107,000 genes during the third quarter versus 83,000 in the same period of fiscal 2020.
-
Supported the
Engineering Biology Research Consortium (EBRC) and its Statement of Ethics inEngineering Biology Research . A companion paper, titled “Guiding ethical principles in engineering biology research,” to contextualize the purpose and principles behind the Statement has also now been published in ACS Synthetic Biology. - Acquired iGenomX, a company offering multiplex library preparation tools for next-generation sequencing (NGS) workflows. The acquisition is expected to enhance Twist’s capabilities to support multiplex sequencing preparations across multiple markets and to accelerate Twist’s conversion of customers from static microarray platforms to genotyping by sequencing workflows.
- Launched the Twist Library Preparation Enzymatic Fragmentation Kit 2.0, a robust all-in-one solution designed to maximize accuracy and efficiency in library construction and amplification when conducting next-generation sequencing (NGS). The kit is optimized for challenging NGS applications including liquid biopsy, somatic variant testing and genome-wide association studies. In addition, the kit excels in preparing samples where the amount of sample input DNA is either very limited or heavily degraded, as in the case of many banked oncology samples.
-
Announced a collaboration with
Regeneron Genetics Center LLC (RGC), a wholly-owned subsidiary of Regeneron, for the production of a custom next-generation sequencing (NGS) population genetics genotyping assay. Arising from a need to incorporate the genetic differences of global populations, this assay is designed to gain new insights into disease mechanisms, identify novel drug targets, and accelerate drug discovery and development. Twist markets the assay as theTwist Diversity SNP Panel , and makes the content available to researchers globally for their population genomics studies. -
Began shipping synthetic RNA reference controls for the
SARS-CoV-2 Delta (B.1.617.2), Kappa (B.1.617.1) and B.1.617.3 variants first identified inIndia and spreading rapidly worldwide. -
The
DNA Data Storage Alliance , of which we are a participating member, published its first white paper titled “Preserving our Digital Legacy: An Introduction to DNA Data Storage.” - Inclusion in the State Street Global Advisors Gender Diversity Index (SHE).
-
Appointed
Melissa Starovasnik , Ph.D., formerly vice president, protein sciences and head of large molecule drug discovery atGenentech, Inc. , to the Board of Directors.
Updated 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 updated financial guidance:
-
Increasing revenue guidance, which is now expected to be in the range of
$129 million to$132 million -
Synbio revenue includingGinkgo Bioworks is expected to be in the range of$54 to$56 million -
NGS revenue is estimated to be in the range of
$69 to$70 million -
Biopharma revenue is estimated to be approximately$6 million
-
- Gross margin is expected to be 38% to 40% for fiscal 2021
-
Operating expenses including R&D and SG&A are expected to be
$200 million for the year -
Net loss is expected to be approximately
$150 million , reflecting our increased investments in our commercial organization and research and development activities-
R&D is expected to be approximately
$70 million -
Stock-based compensation is expected to be approximately
$37 million -
Depreciation is expected to be
$10 million -
Capital expenditures are expected to be
$40 million , including expansion into “Factory of the Future”
-
R&D is expected to be approximately
Conference Call Information
The company plans to hold a conference call and live audio webcast for analysts and investors today at
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.
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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, including without limitation the statements under “Updated Fiscal 2021 Financial Guidance,” the quotations of our Chief Executive Officer regarding Twist Bioscience’s opportunity, among other things, and the statements regarding the expected impact of the acquisition of iGenomX, 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. 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
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||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||
(Unaudited) |
||||||||||||
(in thousands) |
||||||||||||
Three months ended |
Nine months ended |
|||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||
Revenues | $ |
35,018 |
$ |
21,207 |
$ |
94,382 |
$ |
57,668 |
||||
Operating expenses: | ||||||||||||
Cost of revenues |
20,933 |
16,472 |
58,123 |
43,829 |
||||||||
Research and development |
19,838 |
10,444 |
49,629 |
31,369 |
||||||||
Selling, general and administrative |
34,478 |
22,487 |
97,658 |
76,082 |
||||||||
Change in fair value of acquisition consideration |
1,887 |
- |
1,887 |
- |
||||||||
Litigation settlement |
- |
- |
- |
22,500 |
||||||||
Total operating expenses | $ |
77,136 |
$ |
49,403 |
$ |
207,297 |
$ |
173,780 |
||||
Loss from operations | $ |
(42,118) |
$ |
(28,196) |
$ |
(112,915) |
$ |
(116,112) |
||||
Interest income |
86 |
247 |
377 |
1,388 |
||||||||
Interest expense |
(70) |
(181) |
(284) |
(644) |
||||||||
Other income (expense), net |
(312) |
(56) |
(305) |
(125) |
||||||||
Provision for income taxes |
2,377 |
(21) |
2,271 |
(120) |
||||||||
Net loss attributable to common stockholders | $ |
(40,037) |
$ |
(28,207) |
$ |
(110,856) |
$ |
(115,613) |
||||
Net loss per common share, basic and diluted | $ |
(0.82) |
$ |
(0.67) |
$ |
(2.32) |
$ |
(3.09) |
||||
Weighted average shares used in computing net loss per share attributable to common stockholders—basic and diluted |
48,963 |
41,838 |
47,881 |
37,463 |
||||||||
Condensed Consolidated Balance Sheets | ||||||
(unaudited) | ||||||
(in thousands) | ||||||
Assets | ||||||
Cash and cash equivalents | $ |
475,279 |
$ |
93,667 |
||
Short-term investments |
44,129 |
196,335 |
||||
Accounts receivable, net |
28,116 |
26,376 |
||||
Inventories |
21,224 |
12,289 |
||||
Prepaid expenses and other current assets |
7,859 |
6,203 |
||||
Total current assets |
576,607 |
334,870 |
||||
Property and equipment, net |
37,864 |
25,466 |
||||
Operating lease right-of-use assets |
62,803 |
33,699 |
||||
Other non-current assets |
48,024 |
4,847 |
||||
Total assets | $ |
725,298 |
$ |
398,882 |
||
Current liabilities | ||||||
Accounts payable | $ |
11,268 |
$ |
4,830 |
||
Accrued liabilities |
24,390 |
18,846 |
||||
Current portion of long-term debt |
7,545 |
3,333 |
||||
Current portion of operating lease liabilities |
2,365 |
6,409 |
||||
Other current liabilities |
9,265 |
2,611 |
||||
Total current liabilities |
54,833 |
36,029 |
||||
Operating lease liabilities, net of current portion |
53,849 |
24,837 |
||||
Long-term debt, net of current portion |
- |
1,403 |
||||
Other non-current liabilities |
6,168 |
351 |
||||
Total liabilities |
114,850 |
62,620 |
||||
Total stockholders’ equity | $ |
610,448 |
$ |
336,262 |
||
Total liabilities and stockholders’ equity | $ |
725,298 |
$ |
398,882 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210806005172/en/
SVP, Corporate Affairs
925- 202-6211
abitting@twistbioscience.com
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