Twist Bioscience (TWST) 2 Feb 242024 Q1 Earnings call transcript

Welcome to Twist Bioscience Fiscal 2024 First Quarter Financial Results Conference Call. [Operator Instructions] I would now like to turn the conference over to Angela Bitting, Senior Vice President of Corporate Affairs.

Thank you, operator. Good morning, everyone. I'd like to thank all of you for joining us today for Twist Biosciences conference call to review our fiscal 2024 first quarter financial results and business progress. results at morning, www.twistbioscience.com. financial at is our website our issued release which this available We

Laponis, Emily With will performance. Emily of will Co-Founder upcoming Adam report Leproust, discuss on our come CEO of me today's Twist and financial milestones and back of call recent progress on Twist; to businesses. a our begin Emily with will are on Dr. CFO direction. review Twist. Adam and operational and

ask call as the limit for others open that then would one, requeue you questions We then on will a only to We your questions. to the and call. courtesy

weeks. As be is archived call our being will Investors the audio X section of portion be a reminder, in will website recorded. this and The for available

forward-looking During the securities will within federal U.S. presentation, meaning the we laws. make statements of today's

generally operating or Forward-looking future future performance. to statements or events financial relate

and Our the results projected. well periods include fully these we and financial not Securities the may in set These that expectations filings our cause results today and earlier those uncertainties Commission. issued Exchange described to release as beliefs actual in more from forth those regarding and those differ with materially could subject materialize, are press risks matters as risks in to actual

in as update statements any law. statements, presentation of forward-looking forward-looking we by this information any us on to obligation The as the are and available to based disclaim date hereof, except required

to the over Dr. turn our now Leproust. I'll call and that, CEO With Emily Co-Founder,

to introduced enable customer everyone. and more come share for time a Twist, margin for and with market growing which Thank exciting base. products, market morning, products with new good It diversified is and you, very a our Angela, increasing, revenue, recently

the track drive financial business: XXXX, revenue expansion margin we results path of that on disciplines focus growth, to to first as fiscal Today, and our X important our items profitability. our quarter report will financial we for

our to while these at products bringing is simultaneously laser-focused exceptional customers. team Twist on entire initiatives, Our

We We with and in consistent robust across revenue year-over-year. and continue NGS, commercial to strong operational growth share execution market SynBio teams. expanded and deliver record both our

a pursue a that We mitigating resilient opportunities to innovative stem This us multiple building are diversified of business, while DNA market portfolio synthesis from allows risk. simultaneously solutions and platform. our with

to ago, we the profitability established for years Several a plan achieve business.

We execute continue cylinders. the laid against and are we for firing to ourselves, all plan we on out

$XX to specifics. Revenue increasing the into the others significantly quarter with increased million, Diving than to first million margin XX.X%. for growing to $XX.X and more

revenue orders the excluding periods. account area. the from for of increased million. $XX.X products SynBio XX% current to expected the timing of with quarter. return into in Revenue grew in SynBio year-over-year, by was affected strong a Moving $XX.X and both that key to million, quarter revenues GAAP

genes to time is for QX, of clonal November, delivered In been product, of our delivered [indiscernible] ordered limited a X frame. have began we which pleased Express XX% I'm report Express in faster to our in days. X the Genes launch that as Genes

operations Delivering This our time team our [indiscernible] that is is performance clonally in line scale our genes orders driven at by feat. and an perfect platform, implements successfully. this exceptional

We at that are only scale. offering deliver [indiscernible] can the

If thousands you genes [indiscernible] can or need X days. [indiscernible] one of genes, gene we deliver

[indiscernible] facility in of to clonal over allows the standard Importantly, a us choose our action can Oregon. with in our at time turnaround days. charge genes to the X order Wilsonville, or for premium days our offering by manufacturing available premium the Express Customers price daily differentiated offering varies a Genes express time with genes speed. price capacity in beginning for The turnaround XX a express and

XXX%. to XX% have we date, as To from as tested premiums high

express means line and we of November, line that is directly our for Because our all to it has margin the pricing in increased we stellar reminder, use expansion. manufacturing whether express. When same also half or we applies genes, standard sell a gene affecting for capacity both launched we for the expansion, As EAS marketing the the largely prep increased, so same, this qualified week, launch digital we keep service. began volume around tactics With express gene acquisition of Express all a service. now announced customer clonal Last [indiscernible]. clonal portfolio, scales that qualify to genes [indiscernible] at the cost full marketing all the using

this early and balance the launch, We pharma, academic early are feedback chemical customers. the indicates days particularly We pleased with orders The are seeing monitor daily, industrial, stage uptake a revenue and between that the ramp. the product of resonates. early we of of

a trends And and of customer insight geographic to patterns. account valuable gained into degrees we willingness pricing premium. sensitivity, level varying observed daily, consistently industry-specific pay We nuances,

pricing Moving manufacturing. terms allows contract forward, this secure predictability and for as in fixed the which margin accounts as enables for proactively potential exchange team, as expanded for to such premiums, volume key well the commitments sales

we XX, have a January confirmed pharma received of As several positive trajectory. companies, interest from reflecting

last are portfolio take existing machine we was our Today, product to turn providers, on new to week, other we use we until customers targeting from Up incumbent our suppliers. and focus customers. our Express differentiated marketing who share plan on use

currently change to We own customer DNA earth buyers, We makers, know we behavior. of need make time [indiscernible] quickly. group are and will the call low because convert DNA they it to potential it that take targeting their DNA latter customers who to

channel than the also change, we the generational globe. to and We become product, procedures across the genes a operating know making standard capacity operational the drive genes the have ordering where that rather

NGS. to Moving

several million. to customers included commercial increased $XX.X clinical ramping large quarter running reorders, revenue for customers trials and diagnostic primary the Our Revenue volumes.

are relationship, and workflow. time customers, For energy these their the larger we we into into now included and invested

seeing quite benefit clinical cycle investment the tests we our the is this long-term commercial of advance now sales time, as NGS stages. their for are of and long, the While

residual downstream enrichment ] [indiscernible]. or And uses their sequencing liquid customers, target choose disease their of As their a each some diagnostic workflow, minimal serve sample reminder, our Twist within assays, including we by those customers [ our about costs. customers pursuing half with as biopsy for solution and testing selling run

the larger buy the the more volume, they from Twist. So

makes In a substantive a expansion macroeconomic our for customers' provides in liability. our constrained our and cases, difference margin environment, customers, workflow in our offering business some

X Over we streamlining Twist overall costs a seeing are to their includes selecting their downstream within and the workflow that improve portfolio customers COGS. sequencing test quarters, save test, the last

addition our to stages in advanced customers In as larger see commercial of revenue. and increasing we components of development workflow NGS up, percentage scale an NGS

buffers custom supplier, accounts. and being For panel example, as media, who also expanding existing the may of previously UMIs enrichment customer order prep more, blocker wallet library from order their a Twist share now our [indiscernible] target

number service and them and customer conference, the supply focus the workflow and when sample week between appreciate and customers bringing for This suppliers we rising teams, the will will products, on differentiated during allowing of several chain introduce key exceptional workflows applications. Our solutions enabling the continue AGBT truly next their from their within on sequencer to business. benefit expanding our specific responsive focus

growth customers' forward, research expect penetration expansion of assets, NGS we and the accounts smaller from existing through workflow Moving come accounts to adoption in revenue acquisition the of of [indiscernible]. as as customer in market our increasing commercial well

November, on program business, million. coming $X.X million, commercial Revenue We as and see in Moving new this of [indiscernible] the we fully including for in $X.X that at quarter. orders shoots our that increase to months, do X green increased XX to starts were team staffed process half typically from with optimistic capacity We is takes and to up about are full know year. Biopharma in of the that the sales cautiously services process we back the steadily of revenue a ramping will Biopharma.

the antibody business of for There discovery to buy our with providing who in both [indiscernible] and partners, a providing addition, offering fit strategic enables a spectrum our customers libraries which and discovery offering can silicon platform, as our and AI/ML we area to we antibody our to and builds biopharma create capabilities. often then partners. serve services full vivo is complementary ability here this that of our In off pair our of customers by solutions, the

For and ] internal refine [indiscernible] This [ the end-to-end designed was workflow, completed workflow. validate of demonstrations we our by an we storage, succeeded. Archive and the to Century Giga demonstration

and advancements, on to We XXXX. remain we central in deliver track solutions are an our archive access early encouraged by terabyte engineering

We business area and see storage at continue asset optionality development. with market that we provides a to our of valuable this data a the for points believe of as multiple large opportunity,

January, the our early to from as and finance companies in and CFO. experience we of our range welcomed growth. and support team Adam operations positioned smaller Laponis, phase wide to Adam In of ideally brings large a is next

turn over our I'll Adam introduction, financials. that With to to discuss it

the quarter growth for million, year-over-year to and first increased Emily. you, sequentially. X% $XX.X Revenue approximately of Thank XX%

short-term investments forward, a ended we the with and gross million be We equivalent for approximately Orders and talk million. first quarter $XXX.X was cash of XXXX. of will cash cash, margin increased talking and quarter moving equivalents total investments. the fiscal cash, we cash short-term and first to about the served customers during X,XXX XX.X% quarter When of $XX.X about

Taking year-over-year. SynBio XXX,XXX million. million, a for shipped deeper a increased SynBio, to with of to revenue genes dive into increased growth million, We to $XX.X $XX.X of revenue. XX% Synthetic primary genes year-over-year, driver increasing orders growth quarter. revenue, growth $XX.X XX% during approximately the

and million, SynBio by increased all care revenue to product SynBio Within Growth respectively. primarily year-over-year to $X.X Oligo million revenue lines increased and health customers. of libraries in XX%, was $X.X the umbrella, driven growth Pools across XX%

of first million million NGS year-over-year. XX% to revenue the approximately for increase $XX.X the first quarter fiscal $XX.X quarter of an grew compared XXXX, to in

quarter, products. We with stage revenue million, our the the for NGS from approximately Orders adopted of quarter, setting XX% further the increased NGS For for served our XXX accounted customers to XX in customers top having $XX.X XXX revenue. growth.

$X.X quarter. royalties. programs at was XX with completed as December of active total number the of had programs Biopharma, December including as with during million, For new to million. and orders in started XX of XX we XXXX, of increased programs and/or XXX, milestones We revenue the end The XX coming $X.X

the Healthcare to biotech XXXX companies. to the Looking at ] $XX same first quarter and reflecting the for diagnostic revenue uptake pharma, our [indiscernible]. from XXXX, compared for $XX.X in products of revenue increased by [ million fiscal million of period rose

] same $XX.X revenue first of period Industrial from fiscal in million chemical rose up [ growth the million [ the year-over-year. ] XXXX, to $XX.X in steady quarter,

$XX.X growth and first was fiscal NGS the quarter SynBio 'XX, coming both for $XX up million million from customers. revenue with XXXX, Academic of in from

the of APAC ] in same versus XXXX, Americas to 'XX, year-over-year. growth million 'XX, [ in period quarter first geographically, of the million quarter $XX approximately Looking the year-over-year. compared period million fiscal XX% of $X.X of million of first in to same fiscal $X.X rose the million $XX.X period growth for XX% revenue increased $XX.X growth to to $XX.X in year-over-year. million same the EMEA first XX% in compared increased revenue the to from quarter revenue

mix higher for NGS driven by Express of quarter, margin SynBio gross NGS Our increased for the pricing in XX.X%, to orders from quarter Genes. first and some large the lift

In $XXX.X quarter in the expenses for same for $XX.X million first with total, operating the were million XXXX. compared period

of million well as XXXX, depreciation Cost with revenues period in higher compared $XX.X and quarter amortization down. costs, of first to due XXXX this as the in of the to Breaking personnel volume fiscal $XX.X expenses. product same increased million increased and primarily

decreased supply. with XXXX, in $XX.X head million reduction the $XX.X well R&D in million due fiscal to lab count compared as primarily to as

for QX a $XX.X quarter have forfeitures 'XX [ site. in we included stock-based fiscal was significant in QX million QX the as fiscal ] largely acquisition, compensation, stock employee included from resulting the million. pre-commercialization stock-based The $XX.X costs but offset driven Oregon was SG&A the in increase 'XX, increase of comp by manufacturing as with the compared 'XX for compensation, by launched reversal the Abveris an first to FY not related

approximately expenses storage. million $X quarter for for was the compensation Operating $XX data approximately million. Stock-based included

$X.X the with million compared $X.X of Depreciation period XXXX. were and the for million amortization same quarter for

share share first per stockholders or of to a net attributable for same million loss loss $X.XX XXXX per million Net of for compared period the or quarter of fiscal was XXXX. $XX.X $XX to the $X.XX

to guidance. Turning

intend are We metrics we updating moving specific use to that forward.

$XXX range we XX% approximately XXXX, year-over-year. growth expect by million, XX% revenue total of million $XXX the across million to For to fiscal to anticipated $X now to increase

an across XX% anticipated XX%. million, the $XXX to SynBio $X entire of $XXX range be revenue of growth to and year-over-year million increase million to

XX% NGS to increase of revenue to million, in year-over-year. of $X the $XXX range million million and growth of $XXX XX% an anticipated

X% and Biopharma of million of a guidance approximately $XX year-over-year. of from prior million, revenue approximately decrease the growth $X

$XXX for invest increasing XX% our margin from approximately approximately with to the guidance prior expected of million are $XXX to we capabilities We $XXX continue of Loss operations taxes million to to year. in gross scale before business. XX% G&A compared of to million, $XXX our million as guidance

'XX. fiscal by approximately fiscal end change of ending No million decrease million cash $XX $XXX to approximately at CapEx projected XXXX. is to $X in for million our of the projected

we $XX fiscal $XX NGS 'XX, Express revenue in revenue million, quarter $XX of the shift. launch million margin full second million due on overall accounts of half see approximately approximately increased second to with increasing Genes' with our to revenue $XX.X of of of SynBio track year, of guidance. the to to as the XX%, we expect Gross million, larger Biopharma primarily of $X.X reordering mix million. the For portfolio. annual $XX revenue million.

to customers. In This continue to team that mission-driven are about our profitability. our on a throughout I more discipline the couldn't and progress understands and going. summary, to we a where ago. we financial organization value month bring the excited maintain determined Twist be I talented about path joined is we make

financial continue delighting manufacturing and leverage and driving of Our customers. focus our supply expansion capabilities maintaining our margin chain of will discipline management, we course, revenue on as growth, excellence

I'll that, to call turn the With Emily. back

When Thank committed market opportunities year, to our the and diversified competitors, that we base, are and laid out we groups. to going continue a product to for profitability employees, growing momentum you, portfolio business. drive we Adam. plan provides significant fiscal the With on executing customer from our appreciation in SynBio the robust NGS see a

Going initiatives the back Twist. X to at

grow revenues product expansion SynBio to introductions. revenue week First, for grow and during as we launches out conference. your NGS next eye through customer and with Genes AGBT as Keep Express the expect well new in

start program as well new signing of we will solutions, customers. [indiscernible] IT and biopharma on the programs as increasing number For focus

for Second, expand our continue Genes we and Express SynBio. margin, plan pricing to dynamic to

ship, factory As of [indiscernible] number staffed. we given is increase increases, also the our margin functional the fully and

our leveraging drive volume supply on focus at scale. chain increased to our also will with We efficiencies

over believe and we will we the packaging, contribution in-sourcing many revenue products, that to expect COGS have workflows course addition XX key a months our impact initiatives meaningful next On margin pursue of includes and increasing growth This selling. corporate side, we the more. the and for products driving in on identified to opportunities, alternative that

are We increase further. opportunities gross excited our about margin these to

cash, to And Overall, to third, we million investments. commitment in become discipline, our an our and renewing on in cash fiscal with are $XXX we aggressive financial end XXXX diligent remain equivalents a objective commitment to executing company. short-term profitable

keeping progress. our past execute and profitability forward you our apprised to continue of on look to We effectively

for Operator? With questions. that, let's open the call

Sykes [Operator Instructions] Our first Sachs. ] question comes from with Goldman [ Matt

and about on the Genes the during the to full volume expansion the in period talk marketing Congrats Could Just Express for given mix do quarter. Genes and for margin quarter, quarter? of you year? Express you the limited the mid-November how see a launch contributing

Maybe Thank I you, start. will Matt.

-- So really phases. X there's

then mid-November and The the till now. first launch is the the phase second last phase week launch is

on actually customers, that's volume we've So in was focused existing academic seen good the so the basically quite pickup customers, really phase, fully biopharma and exciting. first and both

great and reordering. and performance testing the experiencing that see target the of products of markets You been have both our the product

the So was mix then. that

second about bit soon a the say It's phase. to too

second growth. goal having us. them customers is value margin continue the the existing bring new the growth is us and and now big on for for revenue product, phase, great the margin the deliver for use which know, drive you But deliver to improve and to net As platform customers to gross

the have the for So will full be it where first QX quarter, sorry, -- will the clean QX entire quarter. launch marketing

are already We QX. in

have to gross be customers, first progresses, we'll into those see full more then margin. we'll have Express would the new year expect Genes And expense of net QX as Express of new therefore, the quarter and so start benefit the on the is penetration we And what quarter where Genes. clean we'll

it. that talk gene for then efforts of the X focused you plan Got the on Genes? the enough year? quick marketing about split I in do will Could could versus think you to makers follow-ups. you existing on this? customers. gene additional the just just Express of But do marketing course you're Or the just then about augmenting you And digital growth? know talk drive And buyers be with over quarter just

Yes.

X basically half of and we [ week think have convert ] into trying I to makers. buyers So

for proposes. would So all right and now, I that intents say

buyers. so All volume of DNA far the has been

DNA So We're early makers. at for the very innings now it's [indiscernible].

it reach in Tier strategy marketing, our terms customers, digital X X, of to is so And customers. small Tier

remarks, to accounts big to our Genes. that, Express my engaged mentioned in in have well. to of And towards we interest on top are Genes some convert we've addition However, getting big also has had team level sales accounts with been that now both Express initial years as as for success in accounts. for They working converting

and going X. growth Tier the customers it's in deck, as to be X X, X, see So both Tier Tier on to Tier as want all hands we well

Our next Steven question comes with Cowen. from Mah

questions. Congrats to Matt's Maybe just on quarter. follow-up a the

On had not, then what the all any around QX? much driven in the kind provide future? year from there of if higher And by thoughts we Or the of you already the full your in of the the gross Express margin it's XX%, the the margin of it guide XX% factory quarter, XX.X% than to modeled. quarter? then drove Was scale-up Genes beat? Or given gross was at you're entirely also impact in at could

take question, those Adam, You want that questions? to

Sure. Happy to.

in alignment we even just both on I a mean business well performance paper by I on and expansion. the as have gross goals. the the the margin but we not margin record front a we gross executive key across by priority, focus expansion our to encouraged as in is the team also priority, in am Steven, So encouraged the very quarter saw progress had as revenue growth I'm

see in the the of in of saw we margin And a a and large So seeing expansion gross in -- in the that drove had numbers. the QX and you the year-end, driver back was or you QX, we're step-up we're expansion in to look that when bit particularly expansion the guidance, as those orders. big our QX, some that for where orders in of at calendar see we that can most terms pull the of the NGS, we really biggest going some were

been confident kind role raised now on revenue how a business I gross and look, year side. guidance my asked guidance. guide. also want And thinking in than the the we're don't get over and the month. I with am we both [indiscernible] margin also recognize, the performance, about to I've the the You I overly of full less for But in aggressive

So we but yes, in seeing there's we're the already some well from there, conservatism today factory on Genes the that now being and SynBio as included of the future have effects operational. as fully Express the expansion

Great. Okay. That's helpful.

Sorry if could you yet, Emily you're guys done threw you XXX%. in. Genes launch sense know average full of getting? just the could a But what Express now? to a of us XX% more know right tell range I wondering give one of sneak us average getting can out the I'm I premium just but the you you I are haven't if

Yes.

we range. a give are able So to not

the on that reminder, at pricing capacity the time based is strongly [indiscernible] a As on in the the day. fab

on is lot So the But beyond that. is benefits that pricing It's the website. daily that we check thing you public, can get that, a right? of one

is look anybody again, the pricing now, right based on the at capacity. what so And can

Vijay ISI. with Our comes Evercore next question Kumar from

Maybe the print guidance. is first on one nice here. here Congratulations a on my

it $X see despite growth like in revenues and looks SynBio and easier, XQ of by should annual from raised. which we the by why, NGS, robust million. $X more I'm is more comps back perhaps was The curious, that bit million. but You getting guys also half? a came And through was carried gave just raised

I'm more it. and happy bit give a question, color on great to Vijay,

right we we where are great of quarter. a terms had In now,

[indiscernible] I do it's think positively, when so pullback, SynBio expect going look particularly early I at So that think the mentioned QX. Genes, really Express we the but that phases NGS in days. it of in I and is you And early

on of in feel fronts. as guidance progress the get We'll being you and new ahead pretty the again, continues year on yes, the But posted year job, [indiscernible] side. good me full my brand on the both keep full margin And in I want both I year don't raised on the that the to that guide. top

us is margin down the is And your When Is QX gross to step my at guidance XX%? through think the back of half XQ. going cadence? look there anything on follow-up the in specific sequential I to I And implies back Fantastic. XX% What on annual from Maybe XQ? guidance the primary step then the that's ramp. the driver walk [indiscernible] the from here. QX just

No, a question. great it's no,

in lift sequential a really We QX. mix. a the it's fact of pretty from got So higher more NGS substantial

the pull We slightly are mix in QX, actually back more towards SynBio. as shifts expecting that to

customers see to the that. and more we as half we in And continue and so full the pretty business well. guide Express expand, Genes back quarter year we'll But the NGS switching think of to I feel the progresses the see confident as

Fantastic.

question from next Sergott with Our Barclays. comes Luke

talked incremental Can year, commercialization investment step-up on start the the growth, spend. about color? is going? Express some your than fill here you slower on Genes. always OpEx more talking give that want throughout but it us is just Can where And that like to just to at through about you in just I revenue you've first growing I the know -- increase the

now. particularly some out that actually, I'm one. our of It's capabilities. not And the IT incremental ends happy on is on the really those in in we're infrastructure, to capabilities It line and step right on financial G&A specifically. building around focused

around but made that for going choices we've depend future some So we're to the years not year, well. invest as in scale how only the current

you're seeing like pacing learnings dynamic Okay. That's the any lumpiness orders to some trends contribute year? margin, of from to talked or to if the throughout any the really about create you And helpful. there, dynamic of where types from of Talk kind from that's anything how early is that And going it's the elasticity customers about pricing. the pricing out? that the then or or starting

a That's you. Thank good question. Yes.

into we debt that of deeply been a response sensitivity looking have now assets, -- price the we've good So care. been we number have

the the what the the customers of on is at what looking that purchase of of the So access, percentage and ends, the chose day to Express. the what have premium day, is capacity that is way access,

And a as we what -- a response actually see expect you quite curve. will

low a in percentage you kind of if very between. response of at see situation. linear So high premium, a then or you a And

incredible So view that price it's into the an customers sensitivity our have.

we are see, industry and And types. also by able geography to by

So for what academic versus instance, sensitivity biopharma academia, have. price of kind they

So refine yes, model obviously, there. to we are encouraging will over time. you But quite what see to our from it's expect going will that the be is outcome then and

Blair. question next from Our William Matt comes with Larew

First Adam. question here is for

end Just on need going view that referenced you question these investments to and Or be the set IT capability on of of some back [indiscernible] SG&A to of what meaningful as side. Are financial of Adam, the made? only you investments, the kind get on are sort the of to of EBITDA multiple goal course couple over adjusted to 'XX? by core affect future fiscal how of the breakeven or And a sort there years? investments investments context, the the layers these of within that do business

Matt. No,

the think And here. great I I comments question. a of couple think --

very business the expansion commentary priority of focus market well and and around the cash and as revenue hopefully priorities, the of terms it's In been it's in our is to me, and management. clear that that the growth, clear

go where back future. in need never in markets the equity an the we to a place for So to raise we're

we're everything about And so that how thinking key and it. I'm profitability very doing path of to part a is much

get and profitability, giving provided we but we'll to I haven't am when confidence in not to saying the be guidance on timing, won't I I'm coming market. back that the exact

want it investments, my is and getting I I that's ] to to make again, see make X, still any to to in on what I'm you going of And [ the is progress. Week terms that sure do and continue not bearings the here. we're it carefully in now about to don't I'm changes want think I lean pretty fact strategy, major investment right looking

the out and inventory you like supply on the And if laser-focused throughout costs about teams supplier driving system example, think in-sourcing, chain, areas consolidation, are where optimization. for

make that investment gain those these easier we any and of that. continue want leverage, momentum that with to are things the All and to time. we getting so on I scale we're balancing is focus And over savings as sure

business. goal driving much keep the by my SG&A investment on incremental with investments in in to a clarity. expansion very any So Hopefully, is sure other tap that provides any the areas making we're we're the still pacing savings of

And new pay next for. being you obviously a sort they're have that's about bit referenced then purchasers would Emily, and of if week. Yes, DNA launched the to what some of helpful. willing potential And knowledge products quite increasingly of want you question be what

IgG, et areas could synthesis, of attributes As to RNA, even like about extend those assessing cetera? than things you like the key value what sort might sort to RNA of would products think of about what proteins, need if How you look like moving you differently relative RNA DNA? that into maybe And Express do maybe what you customers? customers know DNA are

Matt. Thank Yes. you,

primary a of much I I lot and of always think So And bunch The It's packaging. and And then secondary a is there a spent customers. after questions when are I questions time it? customers then are always X secondary with primary with much? and it of how there number cost? that, get questions will how quality And and ones. support when around

And product have. to are you need so some features that there

gives By reagents, chip at good the to been silicon our comes is are that order Twist us met And that instance, cost, we But about For base from we're making. to and really advantage. an always We've brand using able than and competitors. quality have less is the with have those really that speed assuming in that well that a cost are be always lower business. cost. in

really been always So we've good the on side. cost

up say, would on XXXX, until I great speed. Historically, were not late

that that and probably are now speed that have, is we with others. in we'll really brand. the the becoming leveraging second the investment par strengths keep We made But we've on

the So it's customer you it most products, -- high-quality experience science, budget you want. be you schedule But all may There delivery your enable more going importantly, great get goal. to think going can is great. that's on us chose very And a be you're when fast. we shots means very And exclusively. and because any we'll that all get that to packaging great to your that price customize

Our from Catherine comes next question Schulte Baird. with

Maybe first onetimers quarter? second decline there guess driving on quarter first the think guidance? NGS. I Are orders. you I in any your in sequential mentioned some the large what's

any there quantify is to So way just those?

jump in. Yes -- I'll maybe

you So meaningful you the XX can percent customers. the comes in is report number. top as it that one of -- numbers -- one And NGS a revenue we very of from is the see,

a a you number lumpy. when quarter-over-quarter. can little quarter-over-quarter, it's so bit be of be it but fine, big lumpy can it And have customers, Year-over-year,

remember, QX was situation you some of of last delayed big where shipment. had customers opposite the year taking As kind

the so lumps, since more we go we'll smooth So right? pushing -- time, and are more us for accounts. those we going on to adding over. is And And let's more are of top find over solution

we shipment same we great of there for that high And early customers accommodate is our the their sure time, later, view those So some to to we or the confidence as want if make have at the satisfaction for as customers. possible. year. always And our needs are serve customer

basis. being those prior step percentage just from? through CapEx, was either on where coming your or are maybe what guide Okay. talk And a Can a out then pretty you down there projects decent versus are just pushed savings on

through one, as we after in at favorability it, if Adam. some X quarter is And look went And Emily. were in we take to budget, I'm that. seeing our I happy that just This

for a we're were to the initially We reality It's CapEx. seeing refine projects numbers, of, haven't starting. stopped as lower purely just a need the you we

of in I year. think Wilsonville first came in -- this for fiscal the fully QX here time really online the message key

So are really excited on get for where sure there step-up we even of we're QX efficiency minor the brings. into the be this the have still things optimizing we're small we expand that capabilities that. as depreciation a focused that, and the to But we really on And about but continue site, capacity will to I'm year.

Great. Okay.

from Leerink comes Our with next Souda question Puneet Partners.

if that. This missed from is Puneet Leerink. Sorry I

just is could these us mean only you just to your by the $X.X type, by increased from talk but maybe for I where NGS, terms about million in little are Maybe a SynBio, coming question of sort First bit your that. Adam. orders up of about maybe beat. customer orders almost sequentially, guide talk

of level follow-up have conservatism conservatism the for Emily. the the us NGS you have second that are seeing in that step Adam, help then about, that level down you the talked I And understand we you of a just have versus maybe, And then half? in

as No, over we additional the help this if the a I'm part always There's at translate POs the business, multi-period look for it, for you Puneet. the mean a period I be and there's of side thank I'm the dynamic don't I as question. same have learning who to NGS going always orders on who large revenue. happy that color, in delay, to well first in as multi-period, put have natural large POs many to both quarters. customers particularly on customers biopharma provide

order. So in revenue next over comes we months after typically, get the X the to the X

orders but in QX given of orders. even the I of I the 'XX, potentially some expect the nature don't type convert turn and to year progress we do them expect all into QX, revenue perspective, as of in throughout that the to From

we're the confidence. front with or In come from firing be all cylinders, on whether record terms Express I lot the without of where NGS what's it in I confidence see really customers. revenue of on I team be making driving SynBio a beyond have we're clear. we the in the and Genes I progress mean, seeing. the new quarter you of will out progress the guide, are and a don't

the guide said also I'm very giving, in me. -- for before, I it's but early I'm it we're days confident So

skis So it. my element over any of don't in get to I want

that clarifies. hopefully, So

Nam from Ji comes Sung question with Scotiabank. next Our

the quarter. Congrats on

one question. Just

launches NGS strength setback? the seeing especially is like great kind to segment, new continued see, RNA-Seq especially look it sales the are you of at customers. much just [ curious, top the with Or obviously, ]? leads, as there, of On from pretty funnel, the product the you kind customer more diversified usual But

Yes. you. Thank question. Great

summer So into of and new We RNA-Seq research the definitely, last our that to launched expand is been the purpose product has the market. focus introduction.

as to fast You'll are week in the on [indiscernible] market see liquid in not have interested as microarray and converting has that products we very NGS, wanted. we'll position strengthening at so, our we focused gone that biopsy. the AGBT have next

with tools. going will there so really And introduction market be more focused best-in-class that after squarely on product

terms continuation [indiscernible] and around So I expect our would in academia market expansion, of of efforts bio.

addition growth MRD. I us think and in performance we've for been opportunity additional X are the great those to, I think, biopsy in having liquid

the But or expanding are quite the I'll such other bio lot our enabling, success [indiscernible] liquid academia. we -- -- time, over market. and is So quite say, markets to a in I'm focused on now, of right -- as riding NGS

Rachel question next Vatnsdal from with comes JPMorgan. Our

I up, first biopharma. want just to ask on So

discussions You out-licensing. you're for mentioned in that antibody

the a these can deals? potentially line when how headlines talking also So expect to you terms just spend related meaningful licensing opportunity can about be? time of deals those and in we see to what's And any can minute that

it's a , question. [indiscernible] good

us main context, just to effort our our is biopharma them. customers sell we quick use reminder, where vivo, tools AI a for a So vitro in a business for the as deliver give service, to asset in a of target preclinical and

the effort. In main think spending we're R&D of We've have those also dollars our out. our now that's dozen that them. some internal thrust of advance spend partners -- valuable. the now them assets are assays. we license And own maybe in stopped we to we R&D discussion past, stop internal to with So to And dollars a

licensing biopharma deals lengthy. be As you can know,

those forecast. I pursue same the and and not expending think -- deals, licensing we line significant are so for not time, is in cash me at are bottom the licensing those And the deals to

they be happened. will upside there when nice So

go then -- ahead. And sorry, yes, just Great.

ahead. No, Go go ahead.

cost COGS were these you to actions something. my next I some impact follow-up, Sorry, you just thought saying the XX Then over of as months. mentioned

the that already year? you actions within cost contemplated us right of that from for can those cost levers walk is pulling So for the you're much And now guidance just through how then perspective? that action

And so great question.

management quarters. few over taking done of the last advantage really the that up-leveling we've team we're of So the

VP a new of profile Chain. have is is that a in great our not, a We company Supply market And nice Ops, as a suppliers. growing that with great we now of a have VP

a have some We to products. choice of have in-sourcing of the opportunity an

have We to consolidate vendors. the opportunity

margin. exercising we're over gross get with really time sure And to that our supplier really we costing our muscle to are benefit target our we so the make best

over can lot we seen In our we we addition, of turn when out Genes, and lot have given a launched -- opportunities we a swap processes, opportunities and reagents, the can that tweak kid of some Express really the [indiscernible] stones we've in shorten our to on process future we of to processes us that and regions out. has in the cost in steps take where

So we'll time takes it's the we opportunity, natural gross that margin a as of to do best outcome. say the I get to the see and the a time, at company. evolution our maturation And realize. work But same

The best we possible. the we had first step natural advantage always where advantage. cost silicon a product the had was always And let's with the have chip

improvements, a we get costs that can bit the there, and have and on gross now to product continuous out start margins. we at But little process taking product a introduction better better more best less focus and maybe out new bit on

helps. hopefully, So that

Puneet Souda Our Partners. with next Leerink question comes from

Yes.

it's sort Genes. around to Oligos, you right and up response. response your later wanted or of think at would industry manufacture appreciate Just and on once competitors broader the be about sort for fast it competitive modulate it genes? a to or strategy all competitive the that. your I the Express on expectation and of follow the away pricing defensibility accordingly. deliver But how great mean these that Genes do have just you Express for thinking question a about What's competitive from I the a response overall to the

have, business So the optimized in I more way -- of think have do. the their right? been And much there's we all in can is And competitors way so [indiscernible] about have plate. it policies really not we our longer they than

a we make Gene. scale have And really around us gives built the Express we've of to is What then the it that end silicon advantage chip the advantage. tremendous at back

try And so company our very, competitors very -- only the would be And to at we're difficult to be I all their it. that this think can for gene very point, match fast. a going it's of a task to difficult make it

have we'll So pricing. responses, terms in [indiscernible], its an absolute and we even are actually great great the see We great, think experience, product speed with but ready. customer of its great we

And to so we our [indiscernible] value customers. provide

anybody look As forward, on [indiscernible], any see the playground, we we'll anytime.

Indeed, a playground.

to any Emily like questions. the no turn over There further back call are to I'd remarks. for closing

much. Thank you very

product record a portfolio full more at Express customers. to introduced week and product our next the with and reported the We we portfolio planned we quarter, closing, continues have week, for resonate last our Genes in AGBT. launches So

disciplines As to financial past profitability. we'll margin growth, continue expansion revenue and our move to forward, we focus drive on

you of or look much. seeing We to forward March conferences at frame. in some AGBT you time Thank the very

program, for you participating a the today's Everyone, in Thank you disconnect. have This conference. now does conclude may day. and great