Twist Bioscience (TWST) 2 Aug 242024 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to Twist Bioscience Fiscal 2024 Third Quarter Financial Results Conference Call. [Operator Instructions]. Please note that today's conference is being recorded. I would now like to turn the conference call over to Angela Bitting, SVP of Corporate Affairs. ahead. go Please

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

Dr. and Patrick on Today, call business President for CFO are Co-Founder CEO of opportunities. performance operational today's Leproust, Laponis, us Twist; financial well me progress, of With of we COO as Emily Twist. Fin, and join our Twist, growth Adam and Dr. and as will will discuss Q&A. the

limit a archived to requeue Investors recorded, your and our then We is to This portion courtesy weeks. one, will questions be in available for questions. open will the you call only as up on the X audio being for website call be the the others and and call. will of that We section ask

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

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

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

except that, required measure earned generally is EBITDA, disclaim other accepted measures any presented documents, the the our Information discuss similar be be also included than in differently as data non-GAAP our financial on call by date a in and Relations with non-GAAP and the be not forward-looking over law. any our website that information now found which will Officer GAAP we Leproust. as this statements, Dr. at We'll between reported, statements www.twistbioscience.com. conform and available of based update principles. turn companies. Investor financial are to Co-Founder, accounting to by forward-looking obligation I'll this Emily which may does us The hereof, With Executive presentation adjusted when can calculated reconciliation Chief at to

Angela, you, to growth am Thank revenue working another for of good morning, Twist. and everyone. pleased I quarter report record

surpassed [indiscernible]. This revenue, operational margin targets cash employing quarter, our and flow by disciplined execution we and

competitive serve introducing leveraging have products We and been to in position proper the company profitable that for technology pursuit our our advantage unique differentiated our customers, on to our diligent build growth.

third see period on built $XX.X the high-quality, new net to to The Express our XX% margin Revenue growing approximately [ for increased the with XXX and XX% our growth express Genes product of accounts. interest new differentiated million together Entire line, million. last of our increased $XX infrastructure We year engagement revenue expanding portfolio to Express grew of and sequentially. drive with versus continues products our year-over-year and with for robust of Genes, reported SynBio. which [ orders with million, quarter, customer driven XX.X% million. We points strong basis sensitive product a an XX.X% For we was $X.X line, quarter, versus orders by XX% growth quarter year-over-year in along IGS coming growth ] at increase ]. including in revenue biogy $XX.X gross

And exception Genes SynBio first of make in which we [indiscernible] Express reasonable [indiscernible] infrastructure. and and of ship this products the of provide the days outside gene in our clono important just customers. all all our offering we Express off customers with site. [ from are potential a Portland, we our offering, cost. genes ] Oregon express our at Genes site labor, and where manufacture differentiated DNA U.S., of a portfolio made our for Our X With ship and

we May, of This pursue direct base to [indiscernible] pulling myriad up synthesis synthesis pairs. direct lens customers enable applications. XXX fragments chain of multiplex In to frames with our launched along with

Some domains of functional of useful engineering, generated examples for and entire viable both antibody regions including parallel are including screen discovery include for enzyme proteins sequences. entire of for AML which very

In single addition, for or within to enable the fragment applications screens. two mRNA of for sequences airlines multiple important XXX complex sequences RNA a include include therapy customers guide CRISPR base personalized

that cycle. two we do not the need and optimization Multiplex for ] line infrastructure of in both illustrate applications making the of innovation antibody for the diverse on capacity. time selling our products XXX. Express drive The was [ the how to customers. continuously cut DNA These are and [indiscernible] while as express our July, expanding particular these new on fragrance currently antibodies for workflow. just line In all introduced we and Leading our express augment for discovery we showcase four the examples to of innovative and processes antibodies, products express benefit used to

In new new addition only portfolio driver customers continue the and contributes expansion, continues but net our margin products, revenue well sequential our the of ongoing life market not that existing serve science genes increasing add with a perform our wallet that we These to Express do Genes, customers. of for products target as showing to gross of have opportunities. and rapid to up will not of overall we as areas to market leverage to manufacturing. share today growth well, existing also potential that growth including products expand our open will key

to as our customers As long-term [indiscernible]. into is we from convert gene buyers gene convert makers well as indicated time at the launch, of intent

grow category and expand whole as the we offerings. Express as our market to our share expect continue a We to

add primarily revenue we in report because express to the continue building product will on we Moving overall and competitive more forward, more all reasons. [indiscernible] for our expect products infrastructure,

customers, million another are whom $XX.X in liquid in in to $XX.X came clinical of posted rare as and the many spaces. disease Moving increase Strength biopsy to of strong orders. year-over-year the very NGS. We quarter an grew quarter and revenue from primarily million, XX%

growth. additional to see however, with or a expand forward, to we expect minimal Starting XXXX last these residual we have our we continued revenue coming today, liquid what of customers bit growth as from areas substantial generate XXXX, beyond biopsy as with with Moving the strength similar revenue disease, in products in well in minimal avenues more MRD, several seen growth year.

mutations adapt ability library for unique prep assets. a genome MRD, assay, application. perhaps In with to our elaborate also customer sequencing for three kit to workflow of this [indiscernible] we rare the that competitive extracts three type provide distinct customers pursue DNA have offering customers low When a advantage for the also we to when more

to biopsy Second, particular ambition to to customers genes liquid type applies customized target custom provide samples. cancer that we build agnostic is enrichment of assays developing more target panels two for of variants This similar the use rolled panel customers. and all Twist to a a

Third, produced an we customer crops of workflow same XXX up informed at different developing mutations Twist for to speed to assay handful our asset more XXX [indiscernible] individualized pans, an for test as where cost where by average mutations a competitors. incorporate MRB can and the

into who customers multiple we and more fact, In scale the want mutations, to need. ability have some their to than meet thousands XXX of variants many

growth panels our whole in a RNA Twist Then, of products to differentiate sales rapidly including we to at see from benefits, prescription [indiscernible] customers on revenue workflow. with coming scale. partner bias this and ability transcription. and deliver We key the our shows through our Importantly, customized elimination RNA light RNA personalized

be by Our expression RNA other worflows. in solution could offers the missed potential visions and

more degraded from and generates and samples learn efficient results effectively to in In cost-effective customers manner. addition, sequencer certified our on a workflows samples the allow save time and

also ADMI, our barcodes orders, library NGS of target training and see bed share relates our vessel customers. better beyond original our We offering results more expanding on customers to prep, our of enrichment include for supporting differentiated flagship placing

of orders to Revenue $X.X Biopharma. increased $X.X million. million with

partners continue of spectrum discovered of [indiscernible] the We studies a ago, solutions our PBA-XXXX indications. weeks IgGX using synthetic been used discover validates Twist PA-XXXX [indiscernible] programs synthetic has our phage advancement of few antibody be libraries hard-to-treat clinical dosed first of biologics pure potential offerings. antibody A study This the to when for for libraries. cancer biopharma the the candidates to in into patient with human antibody antibody to across

expect other to studies human the initiate least year. We next partners at within one

quarter, out-licensing. a for is during key Additionally, we antibody, adenosine-X announced publication available the which detailing data for

work our to diligently in And and to continue increase resonates. offering orders We know for biopharma. we revenue fragmented market, this

in believe of strategically overall we bioproduct to line. and to time, In will to and addition, ensure do ramp will group group the the value. continues our with provides take a business Biopharma manage the this We that Solutions services spectrum products analyze and provide revenue continue fit

workflow valuable archive calendar with at continues, access see of of for we Terabit development the storage, and the technology data the we remain asset end For XXXX. of points Century enablement business on multiple development. our before focused Progress as a and series optionality of early

growth operations. year. margin last excess as growth see fluctuation we the and On continue significant to to in from exceeding gross to Increased dropped fiscal a year-over-year well XX% XX% majority gross revenue mix. growth than to profit third ending basis same forward. and NGS quarter like to for of More margin of of reported note that contribution expect growth the I'd Turning a adjustments. quarter our to increase XX.X%, while guidance gross XX% average, over of to other revenue points We of genes we profit the due call revenue to and the dropped moving of mix XXXX. approximately included as expect

supply XX% to operational points improve to end excellence by on that, we turn several of improvement it I'll We will margin to a by margin margin gross with track continuous including ahead, focus on discuss optimization, financials. continue percentage and chain the our fiscal north our With of improvement Looking over process in-sourcing. initiatives, Adam XXXX. to remain

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

line While we XXXX. came orders the trends. third patterns at every said, for only we than received historical margin quarter, blanket order our gross we of in with fiscal higher XX.X% expected It purchase do quarter saw in as

quarter, the million cash $X $XXX.X shipped reduction versus approximately the a X,XXX During quarter of third $XXX.X with short-term as cash, ended We we March million, of and million of XXXX. investments customers. XX, approximately equivalents

XX% growing million. dive includes of approximately jeans, $XX.X XX% million, IgG to in year-over-year genes fragments year-over-year. revenue, clonal into SynBio growth shipped increased million, with increased Taking a to and deeper $XX XXX,XXX We to $XX.X Synthetic gene the both quarter. increasing genes orders revenue which revenue. approximately

XXXX, to Within quarter in an approximately grew increase oligo million, $XX.X respectively. the DNA fiscal million, pool revenue increased NGS million $XX.X and revenue year-over-year. year-over-year the compared XX% to XX% million growth and SynBio third third $X.X of XX%, $X.X of increased for umbrella, libraries quarter revenue the of to

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

active as we the took long-term an of million. our original orders XX revenue of the we was shifted XX of biopharma, outlook million. we for programs the $X.X we programs For revisited forecast third growth XXXX, charge had quarter. quarter, as We and started of impairment $X.X view. In fund, believe new during million, and the approximately bio with June from the end $XX

We team took just as for continue development NGS to SynBio our time and mature commercial and teams accelerate. to the business

at team a the is We taking time Biopharma are expected perform level. to finding the that

pharma, Looking revenue diagnostic of XXXX of the rose million companies. by Chemical compared to increased third care revenue uptake for our to Health Industrial the of at 'XX, in the biotech quarter revenue $XX period million fiscal rose by reflecting same in XX% for and same products $XX.X million to to XXXX, XX% growth year-over-year. fiscal up the quarter $XX.X XX% million Academic in fiscal XXXX. $XX.X million the revenue the period from XXXX, of third $XX.X same period of up quarter, from rose third strong of the in million $XX.X industry.

revenue year-over-year. XX% to compared $XX.X to same geographically. quarter to in fiscal third million quarter revenue our compared the of Growth $XX.X of the Growth 'XX. million approximately in third for the was million XX% revenue $XX.X year-over-year the versus $X.X in third percentage of China XX% small APAC was million, fiscal revenue period $X.X in the Growth revenue $X.X quarter Looking reached the EMEA 'XX. $XX the period of a million same same year-over-year. increased fiscal total quarter. in period million to rose 'XX. of million of Americas in

with terms XXXX discounted have customer we contracted Our large QX. guidance. SymBio gross quarter, Of SynBio the and lifting quarter increased for a who Express customer XX.X%, by our their a step this factored margin genes from note, third in margin to offset saw in a fourth received this fiscal to me into order revenue, we take back we the expect strength

performance, gross in margin customer have offerings mix said expect we to a NGS individual we on to Our fluctuates puts and continue do quarter, see strong in our given to last continue and gross orders based margin margin or on customer contracted based quarter. takes as the

average, team XX% the the While the revenue we in XX% margin operating which $XX charge $XXX.X same noncash third of million on for quarter total, expenses were million executive to drop the the In the million, across volatility includes we focus and primary the company. with the throughout expect period for impairment XXXX. compared $XXX.X we foreseeable our as future quarterly expect to continue gross of initiatives, profit

'XX stock-based compared million $XXX.X period XXXX. charge, $XXX.X in same a non-GAAP excluding the basis, QX and expenses operating the with were While FY impairment compensation million

[ million manufacturing the a prior in new increased Breaking due increased Operating due Cost decreased depreciation is in on above compensation in $XX.X million $XX.X million of court business as compared this count impairment were the the fiscal million period of higher by $XX.X was this XXXX quarter Stock-based R&D same well increase stock-based the of of assets amortization product in investments to $XX.X and million with amortization quarter. in quarter forecast Noncash with $X [indiscernible] approximately time. fiscal bonus million services driven as to as XXXX. million the to period . was for FT&A mostly to capital $X.X the XXXX. charges primarily revenues million. and volumes supplies. for fiscal million compared storage, head well expenses in facility period down. to for intangibles for the XXXX, third the XXXX. of ] fiscal Wilsonville the quarter lab outside third included for $XX.X The biopharma and expense, of to The primarily due third in performing accruals compensation and as as reduction same million year and in approximately $XX $XX.X decrease $XX.X same data compared of the Appreciation the largely other

million approximately loss versus and improvement second quarter million and of cash the For fiscal $X of March quarter million, the quarter $XX We of third a ended million was million quarter the of the of balance an XXXX. $X of with cash, million approximately equivalents EBITDA fiscal a of versus $XXX adjusted short-term a improvement $X third $XXX.X as of XXXX investments reduction an XXXX, versus XX. fiscal of

breakeven. driving was strong we receivable evolve from position as working Our continues G&A flow other accounts capabilities. cash operational onetime and impressing to through continue performance the continued Cash operating gains as improve to driven chemical strong well and collections are we activities improvements as by our

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

to guidance. Turning

million, $XXX of million, million million growth $X increase $XX prior anticipated anticipated XXXX, we approximately range anticipated now XX% million, million of Biopharma to NGS increase previous by approximately $X the growth of guidance. to XX% Increase an the from of $XXX $XXX $XXX with million fiscal of at of up range to $X.X of revenue $XXX revenue the to million, with year-over-year. growth XX%. to For million, total million consistent in $XXX XX% year-over-year. revenue year-over-year and guidance midpoint of approximately to revenue $XXX bio approximately to million expect of across

end at and year. the range for high XX% the We of the gross the margin approximately be expect to

to in million Our operations $XX expected the taxes impairment range including of change. $XXX loss from before million million, $XXX the

of is the $XXX previous from the expected impairment to $XXX a guidance million loss $XXX range to be slight charge, Excluding our from basis, taxes $XXX million million decrease before operations in on non-GAAP to of million. a

million of from end $X the prior We a to $XXX of projected fiscal $XX XXXX. than project at fiscal for more decrease approximately of ending XXXX, CapEx million million be cash guidance.

quarter, the previous $XX high Adjusted of margin at XX%. loss EBITDA XXXX of margin increase $XX $XX approximately fourth guidance of guidance the of $XX million. from XX% previous million XX% million fiscal $XX to million. the revenue end quarter we range XX%. the fourth for of of expect For an we of gross expect quarter fourth the Gross million, be to overall to And approximately for of to

We we very planning, we have deliver $XXX revenue of capital future. capacity million over previous the with believe company. believe growth the of above a the levels and million been manufacturing our revenue capacity right $XXX in of these of the go to and have per on capacity estimate sustaining that sites part can Oregon we working is be facilities the significantly the investment, time today for in between exciting a the California It in year can of of facilities

march while will to With turn single to serving We adjusted that, breakeven our I'll customers continue EBITDA towards call Emily. back the day.

Thank you.

As our the final the fiscal year, continues quarter to in now of we are momentum grow.

growth. often are bioenergy [indiscernible] investors platform our by to the than unique groups city. us when for why in writing We to continue begins outperform asked DNA other It with pay total our

this to leverages products team innovative Our platform that generate customer meet needs.

success. products sustainability with turn products per very improve well our key progress with and these Well, to services. vision Our the in It's customer our reality. expanding pricing twister are and platform our into a truly we our portfolio of and and [indiscernible] to health

. creation. quarter portfolio and coupled well after services positions our value products and of sustained Our expanding performance financial growth with strong for quarter,

proprietary transformative industries. excited it ahead, act across we're and already is having of multiple the about potential Looking the our technology vast

profitable our by breakeven Operator? presented capitalize open let's With growth to for the to opportunities questions. drive capability. towards immense proprietary the that, will We adjusted path continue silicon-based synthesis pursuing call up EBITDA

the Instructions] Sachs. Sykes our and line Goldman from with coming [Operator first Matthew question

Matt. Ivy the on on for is Congrats This strong quarter.

seeing but peers my Are For the market, what are noted NGS strength? question, from in you what in seen market feedback you taking And they've from weakness overall, customers your been? first given then his we've share?

Like we a taking the notice are to Thank definitely It's quarter, great you. question. share. you

right IPO first we've we development to then time methylation focus think focused focus big moving on of that seeing on of a first and liquid bet a is investment are some of around the as others, the and very biopsy. in to that a growing. dominating technology in exposed in were our been bit liquid I the our application we and actually was very did way fruit now, the been a ways market technology. and little And to good

We are RNA-Seq We've do that portfolio thing markets. are And We same is in other very excited slow that our mentioned focus. we benefiting we're the that. MRD from launched trying to a running.

remarks, don't to my year. As MRD expect a we I big in mentioned revenue this contributor be

as a growth. biopsy we opportunity gain we liquid for customer future we see ramp, mRNA gain now, it as However, pilots as they and

excited very about NGS. So

of commercial as I as technology for a that really customers, very brings well think strategy we're combination it. again, it's chosen and rewarded strong we've a to the value being our

makers growth then Or in your stemming share market genes, this point? were given among already able gains mostly unlock the gene you And been Express market Great. have to still that outsourcing? players it is from strong at growth

converting. buyers mostly we still are is it now Right Yes. that

with products beginning customers. says the we're of it what does seeing tube. There's The However, the conversion. excitement on

consecutive seeing are growth. We

time, time. same new pleased us expressing file, the But It's at launch long that of it a enables very with which expand the said same the at so to take performance the are some tail. very, products will we And we very time.

Mah And with next from Cowen. question TD line the coming Steven our of

questions. quarter, Great -- the for thanks on the congrats and

of Express So questions a genes. couple on

can pricing another the the that you of you for data, algorithm sense give close model you quarter us the give and pricing subscription-like second dynamic us acceptance margins? So by of how can fixed this the And dynamic maximize a customer optimizing of trade larger now market at have sense a to to are pricing? pricing manner push of then question, accounts, you you when versus the part

you want do [indiscernible], question? take to that

the question. resonating for doing forward. taking exactly Thanks in continues to us that execute And well of says value which sort product the the proposition team Steve. is tremendous across is what The confidence Absolutely, all Yes. giving the is segments. it label,

do for continue we to in see adoption And price. obviously, of see organization. sequential so volume to the continue captured by good that's trade the committed I growth

continued. it's the And growth, So very and quarter-by-quarter it continue to launching product. be platform that the still that's we going since a product It's that this into to a execution. will see sequential opportunity. execute Again, is continue and early to is us with for

with continue have we adopt price that the very very, compelling. So to scale more shots goal customers the we on have is at point

line William question next our And coming from with Matt of the Larew Blair.

early but express know ]. into Obviously, be you [ from would for express days newer products, to metrics couple take antibodies early a any other more I what on you're just of including of type gene, any just you're alluded on terms success be there, those products, recently express get around kind just obviously of and quarters I I offering choline tracking expressing in of launches? most complex to customers would curious it but an

you the And We to some questions do use we to while, And value. clonal customers do received tools, and to genes, for for has product had in days. the as always resist to we're at ways And ITT a for which what slow the personalized to the they you time, crystal use X relatively add compared an do day make always an it some looking mRNA themselves. Yes. with for customers been same could infrastructure we've was what therapy. line thank were play. genes it ask our make for the always now question. product customers No,

have heard when is that that thereafter do. express launched launch gene, what we've shortly that express themselves. knew customers because an IgG they else our the we work rather so someone that we always And will And we any from do will open

a free up things our and [indiscernible] some able customers be to and grow IGG, the received. the lever customers IgG that slides, hack for great show our all was done great expression a extras telling be Up us us now, the launched were a expression. until to it's testing revenue. market in hack so we and of like of infrastructure. sensory, opportunity addition to our do for wallet well show it's thing more to to the will of share launching their And in

so into things happening the what keep DNA more work one that in we flow we life science that protein really to enable customers us that applications we key of sell. enabling the are us of call the And flavor to the is able that they more on the increasing or of to so focus is that And and to just be testing. their can reach

our question coming Barclays. line Sergott is Luke next the from of Now with

the touch kind quarter. in blanket the and to of wanted orders how just Great. those on progress

book an your from orders, the overall you the many can can give fear an book order conversion of could And the quantify legacy have the to If it progress growing you than blanket could of had? as faster you what guys rate on absolute come the us is air and order could more pocket. is? then lead the you medium-term And you in dollar this question is how long-term has conversion that idea a or

you the the dynamics guys of walk us different that are blankets. So on through just seeing kind

I'm happy to Luke, this the is it. talk question, Adam. through

see effect million have QX had the to excited blanket purchase year. normal the the purchase more earlier here I purchase up it a extremely run extremely roughly us, in that we term. was extra fair, January it that we that which, in rate fiscal so for of blanket We occurred did QX an Twist be this So saw of January than We've because $XX of articulated back, much to In return in trend step historical evolve. business. expect back. we're it always committing a excited. fiscal from years see that terms order, orders step a mean, in the what call just it step of orders. to effect, to January customers normal saw to in normal in continue a like we're I versus long I What are that business. orders what effect. kind really obviously, I blanket continue a what forward shows purchase taking being

the a terms In matter disorders, It's conversion much rates matter so extremely seeing if of not conversion a of timing. numbers. of we're high of it's

complete one things that talked is reps this that mainly And aren't get support really long-term order opportunity. go signal really we want the really for we see do It's is first to lead the about, more purchase of so of What blanket that a what we the capability are and customer a incentivized our and it a a to one. orders and next incentivized commitment. generation of is

to continue every So and we XXXX, that here. we in don't see growth quarter any perpetuity sequential risk of revenue air expect the pocket. We've in seen

with coming next our question the Vijay Evercore of from And line Kumar ISI.

the print on here. nice Congratulations

prudent Street's quarter. the little be about normal one related revenue QX you of for QX? and fiscal Just off And order third mentioned levels 'XX 'XX. blanket on jumping Adam, on to modeling fiscal that, to more we sort bit into Does sort imply kind need of a growth it questions. of XX% in

comps Your get harder.

spoken macro for below fiscal bit thoughts little of preliminary being Some more a your XX% growth 'XX. tougher Street have peers bit a the Any end on be trend. about prudent needs to whether about the being little markets

about I our know QX terms for we guidance year print No, for now talk as talking and let's But the on sequential the business. full about quarter. guidance just the range XXXX. growth across it's lot definitely QX the the plans of right building internally we're in guidance, a 'XX. have the our a we're We're gave across QX. step-up we expecting to something

on going strength business. on not as still clear lot I way when continues momentum give the our working 'XX. continues think I'm feeling We're about and So very can I the the to fiscal year. confident the are we're say a we

continue and expect Emily comes really, We business. continue the dynamic in we this growth certain exceeding was decrease see of see our to low to to areas, sequential we talking share. growth category what expect And terms in mid-single-digit to. of expect don't growth. in significantly and to And take down it trend to It's we're We where the that. it sequential is

to down that Obviously, we get into in we 'XX more expect color when give continue. sit We November. we'll as fiscal

Our is Ji from Nam next ScotiaBank. line of the with question Sung coming

earlier an Just following up on question.

in For your NGS the some has NGS our spending kind that given across delays projects, capital net there. doing obviously But business, players of cetera. been well sequencing, constraints et there large-scale

to funnel if any Just that. business after at a And you're then like I'd all. starting your just follow-up see kind curious of quick the

of business, for -- Or you're to . biopsy-based feel of stabilized if terms market you kind In continuing of the early-stage the a target? large lot to smaller has players of liquid the players? see kind your do

question. Thanks for here. It's the Paddy

think what platform of seeing we're the power is I the our segment. really in market

really value that's tough budgets I we stronger of and there. are when think anybody than enable. even resonates use about sequencing it maximizing platforms. is truly else And what twist out the your

web allowed think therefore, so us to I into opportunity. the that's execute And

towards And as feature many and The future It work in that's then panels. they new to the their quickly talk scales new product, on new the manufacturing directions. up with I new can a new customers think be customer there second the scale and product panel R&D overlooked and about scientists, develop just of many, our we'll do with goals. platform. the work up to scales the in part, I think continuing it's opportunity to

going touch into. market like customer, tough, yes, optimistic and we opportunity to always the then with in point continue And And execute is confident there's be when the although commercial our position. that excellence you forward. partner to we execute to every So

from the coming Nambi line of question Guggenheim next Securities. with Our Subu

SynBio an X.X, to X.X something is metric. have right, revenue decreased mentioned? China this softness? book-to-bill I seasonality else from Is Realizing intra-quarter China And or this the book-to-bill If is most to or is order related in? concentrated just large it you

it. take Excited to

of most the In January because -- in that's coming book-to-bill, noise terms you're particularly talked the I'll step-up seasonality call so about orders business from there, that going the that on some of that purchase see effect to been is SynBio side the where of occurred. it, we of orders real,

to year So going every seasonality we'd expect forward. that continue

you'll of from digits there's terms us it when percent our and say spread I put concerned it's quarter. In an this of question. opportunity not see it's seeing NGS, the but quarter see But relatively and business, definitely aren't Obviously, both of most of out effects for lot of folks in you'll a do we mid-single see print the We doing to our the this China. you we're revenue propensity It's million long it thanks term, than in NGS But Savio is the headwinds. will China, that about. across sides there's in stable. low a something it's business business, It's significant but a -- Q less quarter, China when terribly side. last of for with $X again towards

with And Partners. our next question Souda coming up from Puneet line the Leerink

top you're of I more appreciate it building down comments you look quarter when a for with products overall that's SynBio. your on at But Express fourth guide. the genes, that in in does that step we imply guide, and have the the your on SynBio growth

purchase about pickup orders in blanket last a last quarter. quarter was in talked SynBio You there and those orders significant

that on of be So I that, it some normalized. is I going the comments more hear to more mean

these the or quickly quarter? trying seeing order why so in given purchase a response of stepping down from competitive to Is the in sort momentum just the that different understand, you're there orders market? So backdrop, are pattern the blanket customers or

here. the to question Puneet, take this is Adam. I'm happy

QX. contracted but on pre-record, orders pretty in this a volume really I one of think on we had the and particularly set want we're in QX customer step particular my guide. over seeing get I quarter, into to taking mentioned my don't factored significant for And that is the It's me, just customer down in skis any in is QX. a dynamic quarter. particular

up So quarter-on-quarter terms we're that growth also seeing customer. in the in. customers a step We're from sequential in of step seeing each number in one quarter. SynBio we're seeing excluding revenue, in the We're business up the total across factoring a business. that customers, terms of the ordering

here But going the growth. of good our overall them, challenges, and the but we're we're not given So customers about to will feeling that pretty obviously, affect be base, it's to it. have support nature there

question next And the of from Baird. line of Tom coming our Peterson

for just me. Maybe one solid on Congrats print.

Would quarterly in EBITDA expect can Given fiscal million about us EBITDA the loss fiscal million $XX adjusted you give quarter, a year XXXX? just of help adjusted should -- you on guide us improvement off pacing that EBITDA think and just adjusted of trajectory. to be about think some in loss we how the the for here the fourth about thinking think sense $XX about

X to an in Yes, is profitability It's important now. on have that of organization. the for very of three needing mantra Thanks that driving laser-focused driving equity. North path the priorities, broad question. ensuring the ever go margins without growth That's This key and chair bill to it's as and our to been the the path focused we about me on Star months market we're kind in back been for for to that future charge really the that our Adam. and organization we're the standing gross

the adjusted XXXX at laser moving But the We move see continue as Again, the time and be talking but jumping in EBITDA to as -- guide. point, more path on improvements that earlier $XX expect the to we'll I that call, sequential to QX. organizational focus spend energy I million don't is looking mentioned important off just profit forward. been we that about focused stopping continued EBITDA We've loss in point forward. for marker a really an

the So more come at the year. of end we as get together to

the coming Tom line Research [ De ]. And our from of [ Borsen next ] question from Nippon

questions here. to going two Just combine

and and I'm that customers one heard we've first can on -- academic from the you biosphere, are sorry. hear both me? is So

We can hear you.

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customers that products and synthesis about We've pharma heard China. there moving academic is into concern proprietary Sorry. for from

tailwind the CapEx whether just United And going that approximately is you you in this million. is so And that on question level forward a $XX based the of just the expect being that's for thing? vice of would CapEx States? And second

DNA the predict that to let first competitors an it's it the expressed building our question. At we've hard probably the question. I'll CapEx are your excess answer On take geopolitical I'll not in U.S. yes, same congress. headwind the in is for time, a that past

product experience. view own so met So the for our in and on. on is their futures be fiscal the price that user our we added entire will

view our to experience you the some secure line. to We're will already it. share win. customers. is is providing headwinds on the execution we focused that and market possible will our for want very CapEx and question? At time, best that our So are strongly take user take Adam, And we it the competitor accelerate time for will

Absolutely. No. light the we It's Tom, question. thanks -- are pretty for year far. this yes, CapEx seeing in so a year

of the do $X XXXX just I think potential see and But north XX of we're step up amount year-to-date. I XX. year beginning this think could we in I million running the beyond modest a beyond. closer -- to

million the that of being That million roughly me. we down about in those get increase. quarter currently a $XX forward I by So I kind [indiscernible]. over to year said, as to stepping today. depreciation numbers we have $XX that to holding be expect move

later the quick on some the analysis focused my clarification previous on and in committee that add synthesis. focused investigate There genetic from June a It's answer, was asking FBI of competitor. bioprocessing. just our is to to actually not to And Chinese biosecure the

But headwinds. part not to basic itself geopolitical of some clear, at is point. be there is So this this is

no now for back Dr. call over Leproust And to the the questions queue further at any this I'm in turn showing will closing time. remarks. I Emily

are platform. we synthesis the continued from closing, property opportunities growth our impact in confident in very and In generated

Our customers our Thank course, exceptional for our defining employees revenue increasing our and portfolio growing product you. needle our positively customers, of industries. move multiple profile across the

conference gentlemen, Ladies the does for your you for that Thank and today. conclude participation.

now disconnect. You may