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SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--May 5, 2023--
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 2023 ended March 31, 2023.
“We reported a strong quarter overall, breaking the $60 million revenue threshold for the first time and exceeding our guidance,” said Emily M. Leproust, Ph.D., CEO and co-founder of Twist Bioscience. “NGS, in particular, had an excellent quarter and we announced our Biopharma Solutions integrated offering, which brings together in vivo, in vitro and in silico approaches to antibody discovery. In January, we shipped the first products from the Factory of the Future and are now manufacturing the vast majority of our genes, gene fragments and oligo pools in our Wilsonville facility.”
Twist also announced decisive and proactive actions aimed at accelerating its path to profitability while simultaneously extending the company’s runway. These actions will focus resources on the support of key commercial and development opportunities that have the potential to deliver significant return on investment. As part of these initiatives, Twist conducted a comprehensive review of the business and is resizing many teams throughout the organization and reducing its workforce by approximately 270 employees, or about 25%. For example, manufacturing for the majority of synthetic biology products has transitioned to the Factory of the Future, thereby reducing overall fixed costs and removing duplication between the South San Francisco and Wilsonville sites. NGS panels will continue to be made in South San Francisco. Additionally, Twist plans to maintain its global commercial presence to drive topline growth while streamlining teams including R&D across the business to focus on programs where Twist believes it has a clear competitive advantage and sees the greatest potential for long-term profitable growth and value creation. The biopharma team has been resized to focus on revenue-generating partnerships and Twist will moderate its investment in DNA data storage while maintaining its competitive lead.
Dr. Leproust continued, “As we grow the company and pursue the many commercial opportunities we see ahead, we remain laser focused on achieving adjusted EBITDA breakeven for the core and biopharma businesses while maintaining optionality for the potential we see in data storage. Following a strategic and holistic analysis of the business, we prioritized and reengineered our cost base, and with these substantive changes, we believe we are operating from a position of strength, operating as a leaner organization focused on disruptive market opportunities for profitable and scalable growth.”
FISCAL 2023 SECOND QUARTER FINANCIAL RESULTS
Recent Highlights:
Updated Fiscal 2023 and 2024 Financial Guidance
The following statements are based on Twist’s current expectations for fiscal 2023 and 2024, including the third and fourth quarter of fiscal 2023, in alignment with today’s announcement of the company’s decisive and strategic actions. Additionally, in light of these developments, Twist withdraws all of its prior financial guidance for fiscal year 2024 and provides the more limited financial guidance with respect to fiscal year 2024 below. 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 2023, Twist provided the following updated financial guidance:
For the third quarter of fiscal year 2023, Twist provided the following financial guidance:
For the fourth quarter of fiscal 2023, Twist provided the following financial guidance:
For the full fiscal year 2024, Twist provided the following updated financial guidance:
This foregoing updated financial guidance for the full fiscal year 2024 replaces all prior outlook and guidance provided by Twist with respect to fiscal year 2024.
Non-GAAP Information
Adjusted EBITDA is a non-GAAP financial measure defined as net earnings or loss adjusted to exclude interest income (expense), benefit from (provision for) income taxes, depreciation and amortization, and stock-based compensation expense. Since Twist has a single reporting and operating segment, to provide adjusted EBITDA for the SynBio and NGS businesses and the Biopharma business, on a supplemental basis to provide greater insight into Twist’s businesses to investors, Twist disaggregates its consolidated results of operations, including but not limited to revenues, gross profit and operating and other expenses, and allocates portions thereof to each business. Similarly, on a supplemental basis, Twist disaggregates consolidated stock-based compensation expense and other adjustments and allocates portions thereof to each business. Such disaggregated supplemental information is not prepared in conformity Accounting Standards Codification 280 and thus also constitutes non-GAAP financial information. A reconciliation of these non-GAAP financial guidance measures to a corresponding GAAP financial guidance measure is not available on a forward-looking basis because the Company does not provide guidance on GAAP net loss and is not able to present the various reconciling cash and non-cash items between GAAP net loss and adjusted EBITDA without unreasonable effort. In particular, stock-based compensation expense is impacted by the Company’s future hiring and retention needs, as well as the future fair market value of its common stock, all of which is difficult to predict and is subject to change. The actual amount of these expenses during fiscal 2024 will have a significant impact on Twist’s future GAAP financial results.
Conference Call Information
The company plans to hold a conference call and live audio webcast for analysts and investors at 8:00 a.m. Eastern Time today to discuss its financial results and provide an update on the company's business. The conference call will be webcast live through the Investor Relations section under the “Company” tab at www.twistbioscience.com. Those parties interested in participating via telephone must register on the Company’s Investor Relations website or by clicking here. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. The webcast replay will be available for two weeks.
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, financial guidance for fiscal 2023 and 2024 and the third and fourth quarters of fiscal 2023, including plans and timing to achieve adjusted EBITDA break-even point for Twist Bioscience's core business and biopharma business, statements regarding Twist Bioscience’s path to profitability, cost structure, market opportunities, expansion plans, and Twist Bioscience’s other expectations regarding its future operations plans and financial performance, timing of the release of Twist Bioscience's first DNA data storage solutions, 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 ability to achieve the expected benefits of Twist Bioscience’s workforce reduction, transition of production to the Factory of the Future and reduced investments in DNA data storage; the ability to attract new customers and retain and grow sales from existing customers; the ability of Twist to achieve sufficient revenue to achieve or maintain positive cash flow from operations or profitability in any given period; 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 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 7, 2023 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 |
| Six months ended | ||||||||||||
(In thousands, except per share data) |
|
| 2023 |
|
|
| 2022 |
|
|
| 2023 |
|
|
| 2022 |
|
Revenues |
| $ | 60,180 |
|
| $ | 48,127 |
|
| $ | 114,423 |
|
| $ | 90,145 |
|
Operating expenses: |
|
|
|
|
|
|
|
| ||||||||
Cost of revenues |
| $ | 41,669 |
|
| $ | 29,714 |
|
| $ | 71,111 |
|
| $ | 56,770 |
|
Research and development |
|
| 27,379 |
|
|
| 31,231 |
|
|
| 58,621 |
|
|
| 53,861 |
|
Selling, general and administrative |
|
| 53,965 |
|
|
| 53,998 |
|
|
| 96,289 |
|
|
| 105,096 |
|
Change in fair value of contingent considerations and holdbacks |
|
| (1,196 | ) |
|
| (6,014 | ) |
|
| (5,331 | ) |
|
| (8,840 | ) |
Total operating expenses |
| $ | 121,817 |
|
| $ | 108,929 |
|
| $ | 220,690 |
|
| $ | 206,887 |
|
Loss from operations |
| $ | (61,637 | ) |
| $ | (60,802 | ) |
| $ | (106,267 | ) |
| $ | (116,742 | ) |
Interest income |
|
| 3,464 |
|
|
| 259 |
|
| $ | 6,504 |
|
| $ | 412 |
|
Interest expense |
|
| (2 | ) |
|
| (29 | ) |
|
| (3 | ) |
|
| (54 | ) |
Other expense, net |
|
| (305 | ) |
|
| (245 | ) |
|
| (462 | ) |
|
| (401 | ) |
Income tax (provision) / benefit |
|
| (676 | ) |
|
| 149 |
|
|
| (752 | ) |
|
| 10,554 |
|
Net loss attributable to common stockholders |
| $ | (59,156 | ) |
| $ | (60,668 | ) |
| $ | (100,980 | ) |
| $ | (106,231 | ) |
Net loss per share attributable to common stockholders—basic and diluted |
| $ | (1.04 | ) |
| $ | (1.13 | ) |
| $ | (1.78 | ) |
| $ | (2.06 | ) |
Weighted average shares used in computing net loss per share attributable to common stockholders—basic and diluted |
|
| 56,777 |
|
|
| 53,472 |
|
|
| 56,608 |
|
|
| 51,673 |
|
Twist Bioscience Corporation Condensed Consolidated Balance Sheets (Unaudited) (in thousands) | ||||||
(In thousands) |
| March 31, |
| September 30, | ||
Assets |
|
|
|
| ||
Current assets: |
|
|
|
| ||
Cash and cash equivalents |
| $ | 315,196 |
| $ | 378,687 |
Short-term investments |
|
| 72,462 |
|
| 126,281 |
Accounts receivable, net |
|
| 48,187 |
|
| 40,294 |
Inventories |
|
| 39,923 |
|
| 39,307 |
Prepaid expenses and other current assets |
|
| 13,503 |
|
| 11,914 |
Total current assets |
| $ | 489,271 |
| $ | 596,483 |
Property and equipment, net |
|
| 146,539 |
|
| 139,441 |
Operating lease right-of-use assets |
|
| 70,669 |
|
| 74,948 |
Other non-current assets |
|
| 147,445 |
|
| 150,506 |
Total assets |
| $ | 853,924 |
| $ | 961,378 |
Liabilities and stockholders’ equity |
|
|
|
| ||
Current liabilities: |
|
|
|
| ||
Accounts payable |
| $ | 13,236 |
| $ | 20,092 |
Accrued expenses |
|
| 11,156 |
|
| 10,169 |
Accrued compensation |
|
| 24,280 |
|
| 27,023 |
Current portion of operating lease liability |
|
| 13,396 |
|
| 13,642 |
Other current liabilities |
|
| 10,040 |
|
| 19,737 |
Total current liabilities |
| $ | 72,108 |
| $ | 90,663 |
Operating lease liability, net of current portion |
|
| 77,824 |
|
| 81,270 |
Other non-current liabilities |
|
| 60 |
|
| 60 |
Total liabilities |
| $ | 149,992 |
| $ | 171,993 |
Total stockholders’ equity |
| $ | 703,932 |
| $ | 789,385 |
Total liabilities and stockholders’ equity |
| $ | 853,924 |
| $ | 961,378 |
|
|
|
|
|
View source version on businesswire.com:https://www.businesswire.com/news/home/20230505005099/en/
CONTACT: Angela Bitting
SVP, Corporate Affairs
Twist Bioscience
abitting@twistbioscience.com
KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: HEALTH HEALTH TECHNOLOGY GENETICS RESEARCH SCIENCE PHARMACEUTICAL BIOTECHNOLOGY
SOURCE: Twist Bioscience Corporation
Copyright Business Wire 2023.
PUB: 05/05/2023 07:30 AM/DISC: 05/05/2023 07:30 AM
http://www.businesswire.com/news/home/20230505005099/en