Telesis Bio Announces Select Preliminary Fourth Quarter 2023 Financial Results
- BioXp kit revenue for Q4 2023 expected to exceed $1.0 million, a 59.6% increase from the prior quarter.
- Total consolidated revenue for 2023 expected to be $27.5 million, up slightly from 2022.
- Gross margin for 2023 fiscal year expected to exceed 60.0%, an increase from 56.8% in 2022.
- Collaboration revenue for the year expected to be $8.7 million, a 30.7% increase from the prior year.
- Operating expenses reduced in Q4 2023 and full year 2023 compared to 2022.
- Total revenue for Q4 2023 expected to be $7.0 million, a 26.3% reduction from the same period in 2022.
- Capital spending weakness in end markets led to lower revenue in Q4 2023.
- Operating expenses for 2023 full year were $52.8 million, a decrease from $62.1 million in 2022.
Insights
Telesis Bio's recent financial performance indicates a mixed picture. On one hand, the record sales of BioXp kits and a 60% gross margin reflect a strong operational execution and a successful strategy in improving product mix and collaboration revenue. The gross margin exceeding 60% is notably higher than the industry average for biotech companies, which typically hovers around the 50-55% range. This suggests that Telesis Bio has managed to enhance its profitability through high-margin products and services.
However, the total revenue decline of 26.3% in Q4 year-over-year, alongside a slight increase in annual revenue, indicates potential challenges in the broader market, such as capital spending weakness. The company's ability to reduce operating expenses by nearly $10 million from the previous year demonstrates a proactive approach to cost management, which is crucial in a challenging macro environment. Investors should be aware of the company's ongoing cost reductions, which could lead to improved profitability in the future, despite current revenue pressures.
The adoption of BioXp mRNA de novo synthesis kits and the 300% growth in mRNA workflows highlight a significant trend in the biotechnology industry. There is an increasing demand for rapid and flexible solutions in therapeutic discovery, particularly in cell and gene therapy, vaccine and antibody development. Telesis Bio's focus on mRNA and cell-free RNA synthesis workflows positions the company favorably within this growing market segment.
Investors should note the company's strategic focus on oligo insourcing, which has reached a point where over 70% of the company's oligo supply needs can be fulfilled internally. This not only contributes to the gross margin improvement but also enhances supply chain resilience, which is critical in the biotech sector. The emphasis on internal production capabilities may serve as a buffer against external supply chain disruptions, which have been a concern in recent times.
The financial results from Telesis Bio underscore the importance of innovation in the biotech industry. The company's success with its BioXp kits is a testament to the value of proprietary technology in generating revenue and improving margins. Furthermore, the shift towards collaboration revenue, which increased by 30.7%, suggests that Telesis Bio is effectively leveraging its technology to form profitable partnerships.
Long-term stakeholders should consider the potential of Telesis Bio's SOLA platform, alongside the BioXp system, to disrupt traditional drug discovery workflows. The CEO's remarks on the transformative nature of their mRNA synthesis kits indicate confidence in the company's direction and technology. However, it is essential to monitor how the company navigates the 'capital spending weakness' it has noted in end markets, as this could impact future financial performance.
Telesis Bio announces Q4 and full-year 2023 select preliminary financial results, highlighting strong BioXp kit sales, expanding gross margin and reduced expense
SAN DIEGO, Feb. 26, 2024 (GLOBE NEWSWIRE) -- Telesis Bio Inc. (NASDAQ: TBIO), a leading provider of RNA and DNA solutions enabling researchers to accelerate therapeutic discovery through advanced, flexible and rapid automated synthesis in their own lab, today announced certain preliminary, unaudited financial results for the fourth quarter and year ended December 31, 2023. The results are subject to the completion of the Company’s year-end financial reporting processes, reviews, and audit.
- BioXp® kit revenue for the fourth quarter of 2023 is expected to exceed
$1.0 million , the highest level in the history of the Company and an increase of59.6% from the prior quarter and25.9% compared to the same quarter last year. This increase was driven by rapid adoption of highly differentiated mRNA workflows, which grew at more than300% compared to the same quarter last year. For the full 2023 fiscal year, BioXp kit sales increased10% compared to the prior year . - Total consolidated revenue for the 2023 fiscal year is expected to be
$27.5 million , up slightly from$27.4 million achieved in 2022. - Total revenue for the fourth quarter of 2023 is expected to be
$7.0 million , a26.3% reduction from$9.5 million for the same period in 2022 due primarily to capital spending weakness in end markets and the resulting mix-shift toward lower-priced BioXp 3250 instruments. Total revenue, excluding BioXp instrument sales and discontinued BioFoundry Services operations, were$20.9 million for the full fiscal-year period, an increase of12.4% compared to$18.6 million for the same categories in the prior year period. - Collaboration revenue for the year, driven in part by the successful achievement of several key technology milestones, is expected to be
$8.7 million , an increase of30.7% above the prior year’s collaboration revenue of$6.7 million . - Gross margin for the 2023 fiscal year is expected to exceed
60.0% , an increase from56.8% in 2022. This increase was driven by improving product mix, an increase in high margin collaboration revenue, and early contribution from oligo insourcing which achieved production status in the fourth quarter and demonstrated the capacity to internally fulfill more than70% of the company’s oligo supply needs. - Fourth quarter operating expense, exclusive of finalizing an assessment of goodwill, is expected to be approximately
$11.5 million , compared to$14.3 million in the prior year, and$52.8 million for the 2023 full year, a decrease from$62.1 million in 2022. Net of non-cash and one-time items, operating expense for 2023 was approximately$42.0 million . Fourth quarter cost reductions totaling$3.7 million are not fully reflected in 2023 results and are expected to result in lower operating expenses going forward.
The Company has gained significant traction in end markets with the adoption of its BioXp mRNA de novo synthesis kits and rapid cell-free RNA synthesis solutions that enable customers to accelerate cell and gene therapy, vaccine and antibody discovery, and development workflows. The Company anticipates the use of RNA in drug discovery workflows will continue to grow, and it intends to focus significant efforts to expand the adoption and extend the capabilities of its highly differentiated mRNA and cell-free RNA synthesis workflows based on its BioXp and SOLA platforms.
In discussing the results, Todd R. Nelson Ph.D., Founder and CEO of Telesis Bio said, “I’m pleased with our operating execution in a challenging macro environment during 2023. Our company experienced record BioXp kits sales and expanding gross margin against the backdrop of significant cost cutting initiatives. Our rapid and flexible mRNA synthesis kits are game-changing and unlock tremendous value by providing customers control over their screening and discovery on timelines that were not possible previously.”
The Company will not be issuing forward looking guidance at this time.
About Telesis Bio
Telesis Bio is empowering scientists with the ability to create novel, synthetic biology-enabled solutions for many of humanity’s greatest challenges. As inventors of the industry-standard Gibson Assembly® method and the first commercial automated benchtop DNA and mRNA synthesis system, Telesis Bio is enabling rapid, accurate and reproducible writing of DNA and mRNA for numerous downstream markets. The award-winning BioXp® system consolidates, automates, and optimizes the entire synthesis, cloning and amplification workflow. As a result, it delivers virtually error-free synthesis of DNA and RNA at scale within days and hours instead of weeks or months. Scientists around the world are using the technology in their own laboratories to accelerate the design-build-test paradigm for novel, high-value products for precision medicine, biologics drug discovery, vaccine and therapeutic development, genome editing, and cell and gene therapy. Telesis Bio is a public company based in San Diego. For more information, visit www.telesisbio.com.
Telesis Bio, the Telesis Bio logo, Gibson Assembly, and BioXp are trademarks of Telesis Bio Inc.
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. These statements include statements and guidance regarding Telesis Bio’s expected financial results for 2023, future financial performance as well as statements regarding the future release and success of new and existing products and services. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from current expectations. These risks and uncertainties, many of which are beyond our control, include risks described in the section entitled Risk Factors and elsewhere in our most recently filed Quarterly Report on Form 10-Q which was filed with the Securities and Exchange Commission on November 13, 2023. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. Telesis Bio disclaims any obligation to update these forward-looking statements.
Contact:
William J. Kullback
Chief Financial Officer
Bill.kullback@telesisbio.com
FAQ
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