Twist Bioscience (TWST) 2 May 242024 Q2 Earnings call transcript

Welcome to Twist Biosciences Fiscal 2024 Second Quarter Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to turn the conference over to Angela Bitting, SVP of Corporate Affairs. Please go ahead.

Thank you, operator. everyone. afternoon, Good to today like our of for business you XXXX I Twist thank Biosciences us progress. and results for quarter review conference joining second would financial all call fiscal to release results at available at financial our website issued after market release our and the www.twistbioscience.com. is the We

Adam CEO others direction. discuss on review limit performance. questions. CFO report the With Emily then come a only of We will on Leproust, back Dr. Emily then will me Twist to of Twist; and for questions your of begin will are our call Co-Founder the on a to our upcoming call Twist. progress recent call. and you milestones and and as one, business, We'll today's with financial would to that our Emily and Adam ask on Laponis, requeue open operational courtesy

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

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

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

uncertainties periods matters subject expectations and beliefs results materialize, to results financial differ cause could Our and those and risks actual not may projected. actual these regarding and to that from are materially

those These fully described in set issued filings our as the forth as risks SEC. well more those earlier in include press release today we with our

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

non-GAAP contain at than Information are measures earnings financial data can will included website when our detente, measure by similar generally Relations other a which GAAP may is be be also We'll accepted our does that a Investor www.twistbioscience.com. and differently between which not reconciliation EBITDA, found non-GAAP reported companies financial be presented in calculated on discuss perform principals. to adjusted

over call Officer turn Emily now Co-Founder, will Dr. I to the Leproust. and Executive our that, With Chief

be quarter. here and our you, afternoon, Thank past and share achievements good company Angela, to performance over today am thrilled has the delivered the to remarkable everyone. I outstanding

results strides We've our dedication increasing and innovative executing our and growth hard significant our Twist. profitability made team define driving validate strong at in customer for Our strategy, spirit our the to the business. work, base that

our progress Our defines of our making we for markets at advantage and financial strong today. enables core product growth in competitive a remains our pathway the share platform cfDNA and for all the portfolio,

the trajectory, to course the level our $XX.X year-over-year Over of increasing the reached quarter growth second $XX million. we quarter, Orders of revenue XX% for record robust continued million. over a

was biology strong quarter driven growth Express by product Genes strength in line, and by NGLS. in synthetic bolstered The including consistent

same remarks. his the will XXXX. above we in next That initiatives us said, margin drive several end see We which discuss to gross XX% over are points Adam thinking expect XX the do reported a and gross for of versus increase last the takes We will margin the in put periods, year. an XX% by fiscal a we quarter, margin of period the margin quarter-to-quarter, the

against large customer for rapid million, from Genes SynBio both this budget line, prior customers commit including significantly. primarily with POs turnaround than the To that [indiscernible] sequentially. that to our in significant our million. received base We grew several the That of to of believe a purchase orders year next the calendar deeper included times, for revenue year over exceeds and increased course blanket product $XX.X Twist channel XX% due give Other said, then year-over-year confidence of of for consistent and level blanket year. to PO $XX.X this orders increase quarters. reset. SynBio blanket SynBio, Twist quarter first Express the routinely, the and is which a as XX% diversified revenue with where single order of placed orders

we expanded to our in include gene. Genes of all late clonal offering from volumes about know, you our As a Express January, including gene limited clonal launch half

time, potential or customers to a we began from own campaign marketing and their the making At outreach competitors changes. buying

bit So relatively for will full third pleased Genes, success quarter, Express we around to to offering. want progress Express still are quarter more days We the date. Genes current our all mind that the fiscal provide first includes with Keeping in to that early date. quarter the our a color be

Approximately for of the second from Genes. clonal genes revenue X-X% XX%, Express the quarter came

We X,XXX purchasing for Express XXX accounts in since Genes. XX, than more net today. Genes with had March received orders we [ launch can new This a accounts. accounts more Express as net new Express it November entirely organization new Genes new ] as of includes shipping institution, customer than than to as address specific accounts existing As define a be letting both an or XXX more counts

significantly Genes to than our on days, time. Customers X [indiscernible] faster about gene received in X Express standard

For in the side lab dropped the premium extra line facility, to this within and time the margin. of for significant LR site vary expansion fully into products. this clonal all genes in on Twist Oregon on our based for make price. custom-built this speed, capacity premium increase a price gross line, Because We we up into a product other premium this

customers. February, we academic between of began differentiating end industry the premium the At

groups, common these Within we'll X a practice higher seeing the in be a industry. premium,

very strong million, Moving to with year-over-year revenue to as orders. XX% an $XX.X million in another quarter grew $XX.X posted We of increase NGS.

This patients became who and processes. customers include the well strength advanced in assets, disease. NGS proud rare incredible early in [indiscernible] growth issues into customers NGS for quarter, Twist we smaller the cancer their making in earlier the from studies are progress development cancer -- in as monitoring clinical are residual detection customers have who minimal as disease, for their assets commercial and Several of detection clinical

over time what that is are tests. see are a adopting competitive we Our incorporated test into panels of these sometimes differences, number providers and

each patient The volume [indiscernible]. increases adoption as requires with test of commercial test sale with

have benefit model business customers who across leveraging with more who continue is doing have customer very are accounting that additional single well, we chemistry our revenue need scaling. to advantage revenue. for XX% of than many the funding diversified and no of navigations our Twist We our others customer The

accounts the or add we In grow volume potential to addition, application that significantly brands. to smaller their test have continue as the of

primarily RNA this of portfolio until year, Up levels. for the our and NGS has focused been analysis product target on DNA, enrichment [indiscernible]

offer and we within and the sample the in our we areas differentiation As of products a other our latest to our workflow leading complete that the while confident position expanding the solution we solidify sequencer, before, to our workflow. said customers from have want MRD liquid biopsy are

[indiscernible] Importantly, single captures research clinical be to powerful many otherwise February, we of in that may capabilities. introduced assets did molecules a products we liquids differentiated incredibly DNA these because sensibility science library an cell-free missed and the that In capturing the asset advantage more provides is the improve the alternate initial commercial believe very [indiscernible] can We laboratory test. molecule ratio with encouraged. sensitivity here, prep laboratory the begins prep, of and performance an and our innovative

a quarter, We microarray we workflow will we applications laboratory Ultra long with the a drive term the very sequencing technology High-Throughput the the need in the requires believe truly medium to readers differentiated laboratory is this and We NGS in is differentiated customers to prep, product second During for [indiscernible] products customers genotyping. using AgBio to prep. and contact access these a opportunity, [indiscernible] panels it highly as change we this from NGS to not large plus that in market sequences. for believe expect early

landscape launched in in we is CE to in Europe, a to Europe. Precision look regulated customers Separately, first market, geography. for evolution that and we our beyond This products Dx portfolio evolving of continued markets the our to regulatory foray Mark forward the support

[indiscernible] inform FES products in regulate developments driven any U.S. We laboratories regulated test our will believe product the move to [indiscernible] future by

to with $X.X for revenue on offerings. biopharma, to the We'll partners million. deliver was our $X.X programs For of continue million spectrum increasing across order

at we antibody Importantly, partner in expect initiate within human the Twist discovered Platform to year. X next with studies least an

early asset points the continues, in Archive For technology and development. optionality access and our remain multiple [indiscernible] of business valuable with Progress of calendar. of we this we on storage, a enablement Century workflow focused area Terabyte for at as development see

in our Genes points with X a driven NGS and gross at significant We in strong primarily mix as guidance margin we strength contribution. margin fiscal reported in Express maintained the business margins, NGS by QX, our well we As continued second revenue. by look our beating quarter, as

of As we margin, driving investment, which including we continue operational driver to to optimization. process and in improvement excellence, look intend addition months, over the initiatives, the next focus insourcing margin is primary on revenue product [indiscernible] to XX growth,

enable in customers in Express willing the as of process negotiating we of gross past with cases, fixed our by the premium our further ability We for to addition, costs, see margin XX% pricing XXXX. of volume as our in we fiscal these suppliers some by believe provide well of commitments north to with initiatives leverage volume points, In improve margins are Genes. end and contracts and fixed several

call financials. Adam our to turn to I'll that, over discuss the With

a Thank next to strong and million second driven growth approximately you, $XX Emily. million NGS. $X increased for be significant used includes Revenue $XX.X approximately quarters. XX% expected and over year-over-year as million, $XX.X by million increased to the Orders purchase X% the for orders to quarter substantially This of X blanket orders sequentially. SynBio for

quarter second in fiscal came higher Emily of than expected As at XXXX. margin for the said, XX% gross

the quarter, to customers. second During we X,XXX shipped

the We with ended cash, $XXX of quarter million. approximately short-term equivalents and investments cash

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

both genes was IgG SynBio genes, revenue from Genes. XX% growth $X.X million year-over-year. $XX.X $XX.X coming Synthetic million approximately from colonal genes revenue includes to XX% gene and our million, Express of or in revenue, of approximately which colonal Approximately with fragment increased

overall growth XX% Within $X.X to libraries increased respectively. to the million, increased million DNA year-over-year XX%, umbrella, pool and revenue SynBio and $X.X revenue of

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

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

For We programs the the and quarter. end at biopharma, active to million. during had increasing revenue programs new March $X.X of million, we XX started XX was $X.X orders XXXX, with

the XXXX, Health to rose of care industry. uptake million companies. by reflecting the revenue same compared of pharma, period revenue of Looking the $XX.X diagnostic million for to quarter for by our $XX.X and products second at increased biotech XXXX fiscal

both from was $XX.X Industrial of customers. $XX.X fiscal of year-over-year. Chemical million and Academic for growth up million growth XXXX, in period from SynBio same million quarter strong million from $XX.X second the fiscal revenue XXXX, the revenue up same with in quarter, the coming in rose XXXX, $XX.X period NGS to of second the

Looking year-over-year. geographically. second $XX.X approximately Americas quarter compared of same in revenue million $XX.X to period to 'XX, million of in fiscal the XX% increased the growth

in the revenue second EMEA $XX.X the versus of period million year-over-year. same fiscal of quarter million $XX.X XX% in XXXX, rose growth to

to fiscal XXXX, increased in million compared $X.X to $X.X growth revenue of the the of APAC second million period year-over-year. in same quarter XX%

a revenue our revenue the China percent for total of million, was $X.X small quarter.

Our offset gross margins lifting for contracted discount XX.X%. margin in who quarter revenue customer We to increased QX. saw unique second and in large order SynBio the by received strength with a a placed Express terms Genes

strong gross margin continue performance. offerings NGS to have Our

given customer see in continue contracted individual margin margin fluctuates However, customer orders to gross in where based see puts expect mix on and to based the a takes the we and quarter. on did

I these am initiatives in also focus initiatives will to the gross and Finally, on result multiple improvement expect a impact. quarters take by margin encouraged material enterprise-wide

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

increased Cost of XXXX, well increased the depreciation $XX.X revenues fiscal primarily as and expense, down. to million product same to due in Wilsonville, of build-out higher quarter our in manufacturing with of the to compared new million mostly this XXXX facility Breaking the of amortization second period due volumes $XX.X as in Oregon.

is was $XX.X same increase primarily in second the as and R&D due forecast well The in decreased lab XXXX, at compared the $XX.X was above million this stock-based million time. performing of million. compensation driven to $XX for with reduction fiscal the by period as catch-up million compared accrual business with bonus supplies. SG&A quarter as $XX.X largely the to headcount

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

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

driving are activities operating we and from to improve, flow the Cash continues breakeven.

cash period net in $XX.X XXXX. X million XX, March X-month million compared operating used the in months activities ended XXXX, For the $XX.X to for was equivalent

and provide between Investor adjusted found measures we can the which will non-GAAP included reconciliation will on earnings measure. in A be financial website. forward, GAAP be documents, EBITDA, a our also Moving our Relations non-GAAP

Looking quarter of of fiscal back in loss the second EBITDA fiscal second adjusted In for loss XXXX, $XX the EBITDA approximately was approximately $XX million. time, was quarter adjusted million. XXXX,

For the million. adjusted quarter loss of a $XX fiscal see EBITDA fourth path we than less an to XXXX, of

to Turning guidance.

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

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

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

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

our XX.X% the XX% gross are of approximately to year. We for expected increasing margin

loss $XXX than prior unchanged to more million to $XXX the a before We to with fiscal reducing million guidance XXXX. million projected ending for our are at We guidance. million, cash approximately still of end is expected of million prior compared of be $XXX taxes $XXX million. CapEx from project fiscal from XXXX, approximately to $XX decrease $XXX operations

revenue the of fiscal third quarter overall XXXX, For of $XX expect million. we approximately

SynBio approximately portfolio. revenue the million full Genes launch $XX of increasing with Express to

million, guidance. of on track our increased approximately annual revenue $XX with NGS

of Biopharma approximately third the revenue margin million. to for of XX%. $X Gross quarter XX%

to quarter, XX%. to Gross in quarter revenue the fourth fourth XX% for of $XX we million. was For the overall the million range $XX margin expect

am my the by during In an progress summary, that in on discipline I've first financial quarter focus enterprise-wide with seen Twist. encouraged I

financial on continue and will to make organization the maintain We discipline the throughout of progress path profitability.

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

defining growing our move the closing, multiple Adam. our continued revenue In from Thank our proprietary portfolio very our industries. increasing the profile, customer positively sensitive are confident and platform needle across DNA opportunities base, you, for our of credit our we impact exceptional generated growth in course, and employees, customers

scientific also had privilege of how listening care chemicals they talking in fields to the to AgBio and wide-ranging investment braking academia, more. ground I our to customers, from health to drive

only proud are that role work and plays facilitating we very getting important this in Twist I'm started. an

and to that While target make diagnostic cells, also early enabling expensive are more proteins our customers to cancer only and a less new to diseases and destroy that to tools compounds produce detect create to applications. accurately, sustainable name few

Oregon X DNA customers. service our with California global manufacture team X We in X and a support in in deliver commercial locations, and to superior our to all

the ahead, NGS, that we over for look we Biopharma lies best team that storage. us. are capitalize As cutting-edge than in are data on we our [indiscernible]biology, immense laser-focus lay to strategy, potential poised excited With the opportunities and world-class more ever and technology, ahead

that we've are I am accomplished, confident our yet come. incredibly what and best to of I'm proud days

call the Let's open up for questions. Operator?

Matt Our Sykes coming Instructions] from is today question of Sachs. [Operator first Goldman

on the on could Maybe just Congrats out start quarter. I margins.

NGS, million. looked like quarter. margins gross from this contribution $X.X on but It is the Express small Genes obviously like beat a You back of

already from from Express expectations specifically? margin for revenue is either what guide us or expect was that year grow, from Genes Express of year progresses Genes, I the contribution the expansion of of the most sense contribution maybe for and But some could NGS. So a balance to growth volumes Genes providing Express in expansion expressing the for the you margin as to continue and give beat

color Matt, quantitative thanks some happy I'm for the jump as with give question. This Adam. this, to we then of and well. on is can in you the

was in still excited very it the when remember we this are when quarter, that partial QX in so here full launched the here with Genes. offering Express January in late we're full then in Express Genes it a a launched we about will And expect First, the end we currently of and June end of quarter the be the first only our quarter.

sequential the But improvements broken movement the Express doing continue gross have and in guide. with in broken quarter. but the guidance We it -- volume we're still pricing, saw contributing help We to the out it, the we're monitoring days, terms and margin this see not of in exact did in the we we day-to-day early our have not we're our use out and guide, some this point. at Genes have watching testing to that the we we and do of that

it. for as understand results your share is the Got if on be? And share to for of business then take help penetration the the what what for growth, And NGS structure, business, just Tools from either seems Tools you market given context and runway your continuing are market you're share the what sort accelerating that sort challenges. the It just competitors some opportunity it you? have maybe current and in hearing is of could some just that us NGS there. having in Could you given space of that your

Thank is Yes. This you, Matt. Emily.

correct to that quality built that on share, are the You product market other into workflow and based the sequencing offer the It's the very an of we definitely the to full as to chain accident. of our RNA importantly, have And customers to partner reduces to cost applications now the solution expanding that [indiscernible]. us a it's that the and not and we innovation panel taking are Also finally, supply they a our we being grow. from from sample sequencer. fact

majority of applications. -- come So of revenue our majority biopsy liquid far, the vast the our from

really of potential the big. for terms biopsy, market liquid it's In

liquid at market test ramps, whole biopsy the biopsy, a growth. liquid adoption as only the those adoption. the the of as [indiscernible]in of are beginning We as And

of COGS the goal Our customers. about is to capture able our be XX% of to

of liquid So room biopsy. grow a in we lot believe to that there's

then initial for is early the and done market and The Twist alone ag the that pilots markets, days. million. on market to bio for And capture are currently we sequencing, that, think being the encouraging. we other us, the want move of For tests to be $XXX where it macro it's very mRNA, could that

So commercial on [indiscernible] the that a not base lot opportunity of we And the of for differentiation an excellent the again, it's product and deploy. us.

our Kumar Evercore. be And will of Vijay next question coming from

number, [indiscernible], -- any or Congrats Were big, characterize any a orders order there my here, on that's one on XX%. first maybe just as big one-timers pull the the quarter forward there here progressed? was Maybe Emily. the trends up

you. Thank question. Great Yes.

are X And NGS, order are of that We gets it's a get X there the revenue. others So the in weeks, booked orders, SynBio made days. in shipped. comes types Today, sequence. get with PO actionable. in the made it meaning In few

And one we thing kind second PO particular orders. are the of got that was this of which a is number a orders, bit quarter bigger blanket

company. So those the beginning and where they -- the are have to decide decide typically, year, -- at they're from of that with, spend they kind which they they customers budget of come a budget, where going

blanket gives so And provided, a volume PO the sense coming. gets us that's of

sequence the then sequence. they The we and again ship researcher produce this the book design And as want, revenue. order there, the is that already under

calendar tested quarter our Genes. tested do the typically the in of QX. Express we in And quarter, so fact first QX, basically quarter And have it orders Genes our Express I a reflection our customers what customers says genes Genes some And they on time, received think had on QX, More those have the label. Express have in calendar had as this calendar have in blanket we that that's what so that happened is more first of year. the

confidence they us they in I order have order, of that companies, to us meaning us those their will giving the from year. blanket willing earned been and the think the their give rest confidence they've we are of

offering. It's strength dynamic a a there's that our think of that say I we see. of -- reflection the So we

then, just the That's Adam, fantastic. to back And question. maybe

meaningful think are trends? margin. in the gross one-off, what's don't And driving XQ? you there these step-up a So was sequential pretty underlying and is the that in the anything XQ margins gross That's

great Adam. This is a It's question.

in -- of seeing our to from just not was at the a break customers a Oftentimes, the say this put there year. orders behavior larger I not larger some that think of that it do purchase of that. onetime, We're fair this blanket is but historical our beginning volume it's year. the -- also

focus So sequentially because it's not but -- I'd I something there's year, of the occur think vote quarter to it's expect we'll calendar the that. of a nature every of confidence,

gross In in us the increase of in the for were year midpoint terms before full $XX the does guidance tailwind. as terms the growth of from a sequentially. million and as the of play in year well where both on forward, margin both the moving about This the as in we business, expansion

a growth is a about margin, talk but margin we NGS mix the and in the lot Express think us we Genes about driver revenue. lot driving for talk volume continued the I for #X

will our be next of Mah question Steve Cowen. And coming from TD

got questions. X-part the Genes. thanks on Congrats on Great. the quarter, I've and Express for a question

have on trade first, so We is sort of sense pricing the like And there pricing? also another like you for you a us last that quarter dynamic dynamic accounts. a the give need feedback larger to fixed for talked about can subscription So a you the push pricing on a experience, the now model? call, by of customer know I

And then Express on the can sense Genes, you increased second, marketing going? a on that's effort us how how give

Is net the it And academia, or Genes, mixed? on XXX pharma, customer? the Express profile of ordering that accounts then what's biotech third, new

question. great Steve, you. Thank

In from terms premium feedback negative the the any of haven't customer pricing. feedback, we had

we've what label. significant the investment. people strong. understand made it very, think on such The the Again, product it performance differentiation that says a is very does is I that

same And all would positive. predictability. several customers that's So have like at the time, to

been And action so to commitment in winning pricing. for volume premium a fixed there they've provide

in And that was strong that have reflected POs blanket we gotten. the of some

So answer first that's I your think the question. on

sense margin. Second question, a the on

average breaking drops we're is whatever earlier, increase, reiterate time. line. that margin thing pricing gross increase I'll that that mentioned And Express out for of -- the Genes not So this we're one not the XXX% at margin to as Adam is

improvement So we it anticipate over time. that of margin will component a gross be

obviously, to and It's of a as good of our lot from really mix customers last as then course, a but great XXX big And accounts. customers new a was see the more mix, not testing the and which from than majority good see. well group on when academic think to of very surprising, have look net pharma new very but There's academic an I'd company. order from an net It question academic a And of bigger we accounts and average reordering. I group, the the at that pharma were been is groups. size say ordering

so more it's would see to And the penetrating productive which been groups. great are only companies, have we also academic that but not industrial

Okay. Great. Maybe just for a quick follow-up on a that. Did you industry? pricing different mention versus that you structure had academic

So a for quarter middle it as of we the premium of yes, industry, the which for the then -- to was for where so same the the industry. strong. the beginning, a started price. pricing academic not premium was in have in is academic the And dislocation standard as quarter, at middle

say now practice I'll are we than So to the that standard in more be. we used

And the of Larew from Blair. next Matt coming William question will be

was change about area to onboarding takes Biopharma. little ramping on the noticed months the little the get in Larew. the And to fully the are And on Matt Biopharma Mollman bit an you a talk that touch Madeline you guidance? of wanted I is is Can know BD mentioned your how process of I down. It much where new in a X about contributed the process? you to BDIs ramped. I hires. bit that still that in previously for were Biopharma This came guide

the Yes. for Thank you question.

full at a this have point. team We

with have team. not travel that fully but it's and no in quite strong full we market vitro a of silicon. bit a at in team, the There and headcount, service extremely all. headwinds I with vivo ramped clear offering we technology, have yet, market The very terms is is product In that there. the that is in maybe

So are in on we it. but the timing, is my mind, certain, victory still working

right we all So the were doing things. just

we're the $X.X this on million funnel. encouraging. activity, for quarter orders The were focusing building Now at

it we so grow again And do now and to just this business. have

all but smallest characteristic It now strong that of lowest business differentiation do is the we very services. of more very is has a strong very the is convert well. it with I'm It of that business, the growth, the customers, And Twist confident a company. customers, the business has can of more we which connect right really as the business high

Great. Express colonal Gene colonal think sort Genes of then and how of includes, if color you as can, well? has Can a genes a trended, give you genes any XX% that monthly I current of quarter's said quarter. that revenue on were Express genes into quarter proportion as for And you the basis, on this

Sure. I'm about Adam, and talk This is it. happy to

we're to consistently month-over-month I Gene. fact this increases we Express seeing year. much in partly pretty we've seen launch, sequential think what Business the in January the the due launch since that late commercial did full

you'd So expect that step-up. natural

also the There is behavior.

earlier institutional they call, As the they Emily in larger the volumes. some customers of mentioned when order were high

seeing So [indiscernible] step-up a couple of are a orders we can have an impact, but especially early sequential on,

Tom Peterson question coming of next Baird. our from will And be

account quarter. Genes be conversions provided the some of of you to metrics some customer Express start that Congrats on here, these of first just the percentage colonal And be share any genes success that How it helpful. want for sort you think like targets I could are wins. defining or and Genes term, new the on whether would you or Express over that looking the of for you're medium offering? looks if what medium-term I

Yes.

customers, I is targets so science internal of numbers the -- gross for of all do is them sorry, Life of lines. working of and have product in we general, types of the one for of X us, margin, revenue, strengths type think have diverse of success the on thousands we fact applications. I'm that differentiated a very very diverse deal the the these is

results. sure only to And the have. it's great contribute that high above really, leverage so all all of to the products that lines team differentiated And the pushing Genes, Express can we we but the that are product of be I not

outlook, then helpful. XXXX. margin the That's XX% plus And on rate specifically exit kind gross of that maybe Great. one just by

Given the 'XX think fiscal the quarterly given that get about guide in for fiscal to 'XX, target cadence 'XX, to how the can guidance? we

are internally it's question, that think excited we're seen. I great we absolutely progress and we've a No, one about the it's

and will margin aggressive. the it those we X we're XX% the things is linear. I were linear grow we think to gains every And notice, see of idea use at And because over we a revenue be to won't do at perfectly sequential is you go process as happen initiatives, there -- with look I'll you'll quarters to we of always I growth ago, improvements. quarters the see gross here of last the that we expect did X some some not expect quarter it's back But and dealing but XXXX. think perfectly time, XX% it some continue into go example do also a on be over big

the then spend energy the but savings may before and make P&L. the to through you in advantage period, cost the a have the to the burn of inventory improvement get you you You need impact given process on

growth these business will sequential we that time, of increase as across some so both business expect the things the see but are improvements we take process the progress continued the throughout encouraged we of So well XXXX. the on by as the

be will coming Puneet question of next Souda from our And Leerink.

the if LDT. plans published diagnostics regulated needs saw My has if their approaching for the incremental You've is affect their Twist and done? you're curious was products final Puneet. to to products, for got I of the kind do any your question Michael anything, first diagnostic be of rules any with launching. FDA how We on of for changes

question. great a That's you. Thank

a We great present those of are rules.

those the players, are are think market. in number I penetrated new the general, encouraged the in players, that's [indiscernible]. fragmentation grandfather us. of that And maybe Regulation rules, in will in well good think the for to a reduce in I with general, largest extent we probably very larger benefit we quite

or so that the will for require probably more The work probably test and a us. new the to tailwind validation, test validate will be

Then modification. things do finally, as test be modify diagnostic to over to time, it -- to it make will a is of harder one little and just we bit modified, easier we provide be needs the

probably probably in things rules the -- -- to so And that's are all all, I scheme in grand benefiting of those beneficial us. think probably

exact the build recent use those cannot products be to of in into that going Europe And products us in the And be we regulation. launching CE a as you the those ported muscle past. mentioned, U.S., we'll a products inside leverage helped exercise the and with U.S. Mark company launched through new while in the able

do has to biopharma funding. my Great. second And then, question with

bit of between And quarter. in where you've we've if that if was small an some buying a activity uptick through, flow any curious pharma? time? large you in differences and first I lag the maybe have So seen views seen on might

big differences. sure not seeing I'm we're

of shares. able around few customers very market in been our on have share. products, And I gaining share the think us, high gain funding to kind for differentiation more the our we broadly are And been and we've fair the of mode market focused been -- than last because have of tightness in our years budget. of

Express the Genes So this, highly the we performance of little our again, now it what budgets as keep share? think the particular, label on of doing more it we I'm yes, see that, differentiated. will get to in the does bit by says be and taking encouraged it's easier, a where able I fair

in first launching the products to I to on in of a that volume also sure will budget is blanket order be that of we biopharma it's we that should budgets. term, the up of near more propositions number loosen Canada, those And enable orders QX, large planning the we those in which And us had a advantage QX, think as them. making step in take good which that are have take

for the over session turn ahead. Leproust to Emily go for does now Please This to the And remarks. would Q&A you. today. call closing Thank conclude, like I

your and Thank today. time for attention you

us we value keeping our unwavering commitment community allowed new for the and and Thank our you. customers, the opportunities forward unlock progress. innovation broader drive you of pushing to boundaries towards shareholders and will our look has profitability. to Our to We of apprised on continue path

This concludes today's conference call.

disconnect. all may You