Twist Bioscience Reports Second Quarter 2022 Financial Results
Twist Bioscience (NASDAQ: TWST) reported record revenues of $48.1 million for 2QFY22, a 54% increase from the previous year. Orders rose 32% to $55.0 million.
Despite a significant net loss of $60.7 million ($1.13 per share), the company maintained a strong cash position of $604.4 million. New partnerships and expanded product offerings, including a four-year agreement with Ginkgo Bioworks worth $58 million, highlight ongoing growth potential in the synthetic biology and data storage sectors.
- Record revenue of $48.1 million, a 54% increase year-over-year.
- Orders increased by 32% to $55.0 million for the quarter.
- Expanded customer base, shipping products to approximately 2,000 customers.
- Established a four-year supply agreement with Ginkgo Bioworks, ensuring a $58 million minimum in product purchases.
- Launched new product offerings, including High Throughput Antibody Production.
- Net loss increased to $60.7 million compared to $37.9 million in the same quarter last year.
- R&D expenses rose significantly to $31.2 million, reflecting higher investment costs.
-- Record revenue of
-- Orders Increased
“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 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
FISCAL 2022 SECOND QUARTER FINANCIAL RESULTS
-
Orders: Total orders received for the second quarter of fiscal 2022 were
$55.0 million $41.7 million -
Revenue: Total revenues for the second quarter of fiscal 2022 were
$48.1 million $31.2 million -
Cost of Revenues: Cost of revenues for the second quarter of fiscal 2022 was
$29.7 million $19.0 million -
Research and Development Expenses: Research and development expenses for the second quarter of fiscal 2022 were
$31.2 million $15.8 million -
Selling, General and Administrative Expenses: Selling, general and administrative expenses for the second quarter of fiscal 2022 were
$54.0 million $34.4 million -
Net Loss: Net loss attributable to common stockholders for the second quarter of fiscal 2022 was
$60.7 million $1.13 $37.9 million $0.78 -
Cash Position: As of
March 31, 2022 , the company had$604.4 million
Recent Highlights:
- 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 - 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.
- 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
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 $73 million -
NGS revenue is estimated to be in the range of
$94 million $96 million -
Biopharma revenue is estimated to be approximately$26 million $30 million
-
-
Gross margin is expected to be
37% for fiscal 2022 which reflects the impact of expected costs associated with ramping ourWilsonville, Oregon “Factory of the Future” facility to bring it online; excluding these expected costs, gross margin would be42% to44% -
Operating expenses including R&D and SG&A are expected to be approximately
$335 million -
Net loss is expected to be approximately
$260 $265 million -
R&D is expected to be approximately
$130 million -
Approximately
$40 million
-
Approximately
-
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
-
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 at
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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
Condensed Consolidated Statements of Operations |
||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (in thousands) | ||||||||||||||||
Three months ended |
|
|
Six months ended |
|||||||||||||
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 |
|
||||||||
| Condensed Consolidated Balance Sheets | |||||||
| (unaudited) | |||||||
| (in thousands) | |||||||
| 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 |
|||||
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/
SVP, Corporate Affairs
abitting@twistbioscience.com
Source:
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