Twist Bioscience (TWST) 18 Nov 242024 Q4 Earnings call transcript

Welcome to Twist Biosciences 2024 Fourth 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.

Thank you, operator. Good morning, everyone. thank to joining fourth review results business to Biosciences for quarter like and call conference our progress. would you us for Twist financial I fiscal XXXX market press www.twistbioscience.com. at area results our financial our available at issued before We the and is website release the me on today call With Dr. are CFO Leproust, Laponis, Twist; CEO Dr. and of Co-Founder Twist; Emily and Adam of Patrick Fin, President and COO of Twist.

growth will and operational well as financial our performance progress, opportunities. business discuss Today, we as

being recorded, We section Instructions] is will will then This be X will for the of for weeks. and Investors the [Operator questions. and archived open call website be the portion available audio call in our

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

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

documents, be and principles. Leproust. found may financial reported, over turn the a as I forward-looking which may as matters today press not subject When on measures to the does any more website. will Information also call presented financial The as this will risks We'll now differently results be projected. update not accepted Investors disclaim these regarding non-GAAP statements, include by based except materialize, our periods are non-GAAP actual as to those With earlier any included measure data that a with accounting companies. and set with fully in could beliefs the and presentation hereof, forward-looking on law. risks differ available statements forth adjusted our EBITDA expectations to be release than cause results are obligation issued These our required to SEC. date those and uncertainties CEO filings reconciliation financial discuss and our Emily that GAAP well actual from other of information us earnings by that, conform in similar and Co-Founder, the materially generally we between section calculated we the Our in in described those of can the to in as

expenditure morning, a ending Thank our year cash in We metric, and every delivered Today, margin We for total in quarter $XX.X cash growth, million. revenue, sequentially. and strong a with increased is ending revenue and balance. a of revenue capital row, guidance you, the in XX% balance. good X% exceeded team margin, the Angela, gross our This seventh quarter everyone. an increase including year-over-year record and reporting

in fiscal reported $XXX increase at XX.X%. Gross For guidance revenue, million ahead of over XX% margin of we the quarter the year, XXXX. an our came in for

to well For margin the XXXX, our XX.X% with margin gross expansion higher cost the was of as volume compared year, demonstrating continuous to as improvement and commitment XX.X% leverage initiatives. ongoing for fiscal fixed

a in and as Trends product over from the whole, our express our year the portfolio portfolio. came tool alongside genes continued NGS growth and quarter

We XXXX. the momentum and remains strong, we are are fiscal traction into this positive also seeing that carry business us in will biopharma. confident Overall,

reflecting we from our it's since Before into over on IPO X worthwhile our ago. quarter, the dive the details just years journey

capturing strong portfolio sustainable all a customer growing upward been product trajectory, base, time, this During on expanding drive growth. market our we leveraging our and to platform have our proprietary by share,

for [indiscernible] our significant and and provides of to Twist. silicon chemistry technology manufacture differentiated Our and DNA advantages customers for

advantages an of price plate-based allows affordable approaches. Our at and significant platform to provide high-quality products deliver us sustainability

of scale, iterations growing we enables in which at menu for products geared the unmet synthesis Importantly, custom offer different diversification.

the range market base Today, of our skis with in expand diversifications, our share have innovation our selling product [indiscernible] engine multiple portfolio. X,XXX and a We strategically increasing customers across than of more to industries, of market. judiciously harness hundreds wide

operating with execution discipline. are incredible We financial and

adjusted the now crossing EBITDA milestone, of important towards threshold the incredibly in an final push are breakeven. We

date. on is reach to cash Our laser believe Once focused tremendous development disruptive be breakeven, innovation on for while EBITDA platform further potential we through growth our in will there We has becoming engine. built technology. we of positive, growth flow fueled our profitable this investing revenue all driving

R&D need. exceptional Our growth a our applies we continue dusting expertise sale underground have proactive and operational fuel that frontline acumen execution leadership, its the as to our of From the executive business company. an and with strategy to the next technical teams customers' of will

a results, SymBio. beginning deeper our with dive into Taking

of and this an year ago, is to have is we beginning. last the have ability Tim the just a at differentiated price, And launched express We over terms time deliver the we our Fragrance, in scale. industry portfolio of One course clonal year, added genes. that in turnaround and Express protein,

accounts have in new taking bring competitors. market new portfolio We already share from seen and customers this

is product and gaining share. line offerings new as this similar to margin. groups our And did our product market We into Twist. accretive the see coming quarter-over-quarter net from grew Revenue traction accounts Express

rare customers from Twist and developing diagnostics and include Turning myriad liquid in their customers assets to enrichment other target and saw These by and strong applications panels primarily to assays. for selling performance NGS. beyond. disease Twist work tools cancer We driven

due Today, quickly, significant The high thousands our minimal panels of from for residual test seeing in targeted custom we Building with to years launched MRD a provider. revenues uptake are delivering offering with a with this costs we success markets. associated revalidating ago. on disease tumor-informed panels several segment the switching different is sticky our

We their for phase requirement development call programs. DNA. test benefit that more each of R&D this advance as customers as We

whatever customers of providing compatible to a anticipated workflows applications key MRD many and for residual minimal remain platform trajectory partner disease. a our liquidity analytic revenue We maintaining growth expect XXXX. NGS with We in different substantial By similar equity prefer. workforce frequency meaning our our beyond fill with approach,

our Element Illumina highlighted inclusion with among others, collaboration workflow. we Previously, in month, last have our and the Trinity [indiscernible] announced

more forward, as continue truck we application build including moving as tools, growth solution see to car adding at our [indiscernible]. for Looking customers sequencing well buffer

thousands proprietary that is we it believe enzymes. so many then underappreciated in appropriately platform, rating we At GS and one weeks. dedicated growth matter by design across test can a workflows are And role investors XXXX, of variations Biopharma play creating a develop area using we entire ability prioritize vectors parallel fiscal in test SynBio and As in of to fact, moving is in the into to companies through cycle our going learn build enzyme Twist, enzymes.

significant and a This liquid sensitivity. CDNA have customers in applications, rapid with market. into to we feedback has specific deterioration library it us offerings the platform allows improvement to a enzyme data and positive the shows kit biopsy applying for develop SynBio it key for several The outperforms proprietary the products been our all prep last the customers. tailor new specific In quarters, to [indiscernible] seeing incorporated identified our

this ages [indiscernible] enrichment application. for in developed were these and can sequencing this Though [indiscernible]. walls improved pursue results that result specifically Customers see leverage

R&D while resulted new our X Importantly, from of ROI. only will development less year property an us working growth believe than vector to this have into allows lags we and X the for opportunities, tap market employees incredible new what

pursue We and providing value disciplined ins structured other several tapping classes customers new and a in to applications. manner into while intend to our to continue

an risk that and own our addition, making reduces enzyme our In is our improve margin. chain example in-sourcing supply of proprietary

Biopharma Services. to Turning

quarter-over-quarter. increased Our revenue

increased. orders importantly, More

the with For a to months. to this for biopharma potential service believe revenue in build revenue. we X orders We directly solid solutions X marks to point the services, convert continue know group turning to that biopharma

in $XX paid future to Validating and of our October half of to Zoma up for a date, million royalties milestones the as cash XXXX.

in half positive view of to drive our we the as EBITDA without the be retain adjusted has the future. Importantly, which cash the accessing breakeven today equity We upside, market. potential significant the in to

for the of mean sustainable initiatives. development synthesize lower change development water-based our over and advance cost enzymatic a to our on commentary technology some to I'd converted margin scale to product terabyte to chips. This and continues will team DNA chemistry call the on key [indiscernible] to now to turn under like more solution. recently CMOS-based applied Paddy

Emily. Thanks,

we close fiscal remain it's to As driving we as remarkable laser-focused what we've achieved XXXX, profitability. on

the And date. of improvements seen have automation For a process well-executed the have growing you've continue with and expand to working the relatively had is importantly, margin, place we sites, through series costs you our of that are those visiting we're along while implementation portfolio pleasure increase continuous It and revenue to able have on exceptional hold revenue. of our will flat while efficiency. impact has to the software our largest to diligently we capabilities in who in

include Through a process A the operational new we the moving well-executed efficiency improvements, distribution excellence, on of distribution efficiency continuous process and culture with operational a software growth see than margin headcount. increasing capacity same our examples doubled more that few focused continued forward.

the same of for Another day over to and is our XX us footprint. million the in per new that allows year double a oligo example process oligos number last oligos to implemented the time manufacturing

us our to example but second and revenue turnaround increases time, allows increase The available our capacity. efficiency not only also

Third, production These just we resulted savings more. tips increases which automate in also X annually from capacity. made reagents, plastic changes the and reduction that examples and of are are many panel NGS to there our significant

our consolidating sourcing on focused optionality. maintaining we're and supply our given vendors optimizing while chain Additionally, volume power, increasing purchasing second

XXXX gross to commitment exited our fiscal will and excellence QX allow push us believe march to to beyond. We and margin XX% automation continued operational

cost Twist. new larger introduce Our optimization of service for team and to profitable for process growth opportunities continues we vectors as

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

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

revenue to million, $XXX orders year-over-year. were an year-over-year. of XXXX, increased QX increase growth fiscal $XX.X XX% of For XX% million,

disclosures $XXX.X for $XXX.X million QX 'XX, revenue order focus XXXX. the given lead Starting of compared we longer Orders time year were the will biopharma solutions for in to fiscal million for recognition.

indicators both margin adjusted our business, full of we better we growth, the For are path revenue guidance believe gross which performance. disclosures profitability, on EBITDA and to for will and expansion focus

in Gross margin fourth of the XXXX. expected at XX.X% came for fiscal higher quarter than

we address and the may a X,XXX and/or having $XXX.X which as labs quarter, single sites. ended approximately as We to with of XX, shipped cash, the short-term multiple equivalents billable investments cash we XXXX. million During be bill quarter customers, define approximately to September of that

our October $XX royalty programs received cash not to select payments half cash million is in biopharma from in Zoma related Subsequently, milestone of This and year-end of we financials. in additional to that as XXXX, fiscal rights the date. XXXX of our potential included

SynBio million, $XX.X deeper of to increased to dive orders million. increasing $XX.X year-over-year into a revenue. with revenue growth Taking XX%

compared million an revenue 'XX, the to $XXX.X of to $XX.X full increased SynBio fiscal increase year, in XX%. million For

in fourth for to NGS revenue an to increase growth $XX quarter compared in of NGS the we for $XX.X $XX.X year-over-year. increased Orders fiscal XX% million 'XX, grew of see of quarter to and ahead. fourth sequential approximately year the continued million the million

NGS approximately quarter, top customers revenue. the our XX% of for NGS XX revenue For accounted from

adopted having million NGS NGS $XXX.X XXX fiscal of customers fiscal compared XXXX, our serve For the We to for exceptional products. XXX $XXX.X XXXX, million growth quarter revenue in increased to XX%. with

million, active Biopharma, $X.X had programs For of the million. We quarter. started the as new during end XX We of revenue XXXX. was $X.X with programs XX September orders of

$XX.X For fiscal revenue was XXXX million.

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

revenue. fiscal of year, XX% Americas for the the For accounted

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

to year, the EMEA the represented revenue. increased 'XX, growth in of period compared in $X.X million quarter fiscal fourth of year-over-year. X% For XX% of $X.X the million same APAC to fiscal revenue

China X% for portion small approximately total fiscal our APAC of X% to revenue continues relatively XXXX. of revenue. our a and accounted for revenue of be

P&L. Moving down the

the increased X for for increased and margin XX.X%, of gross gross versus improvement XX.X% year, fiscal points Our margin fourth XXXX. fiscal the to margin quarter an to

margin the year. including in resulted both revenue to initiatives, quarter covered holding those costs and their and expansion earlier while the commitment flat the Paddy portfolio, for the labor Express margin and growing Our overhead

the Looking drop excluding revenue fiscal expect, XX% revenues grow expand average, revenue focus continue $XX.X to $XX.X towards of the we of fourth continuing in on million gross were margin. line. XXXX, flat Highlighting the compared incremental cost Operating with while million expenses same period relatively for XX% quarter to XXXX. gross operating to margin our and on to of expenses, holding

in fourth the $XXX the million, Operating cost impairment $X fiscal XXXX million expenses was fiscal XXXX. for charge in including with compared of quarter. approximately revenues QX in fiscal included expenses, data the Operating million for of $XX $XX million excluding storage

progress our path our profitability. at to Looking and

loss an of fourth fourth $XX of fiscal quarter was approximately million For the $X a the EBITDA 'XX. 'XX, quarter fiscal million, of improvement versus adjusted of

approximately of For $XXX.X EBITDA of adjusted XXXX, was $XX improvement $XX.X XXXX. loss fiscal a approximately fiscal an million versus million million, for

million used compared adjusted XX, in XX-month Cash flow activities $XX.X for operating XX driving the continues in cash operating equivalent and to we was to from activities improve are months EBITDA the net breakeven for XXXX, ended $XXX.X the September million XXXX. period

short-term fiscal fiscal We reminder $XX reduction ended from of include 'XX XX. million the million, and $X of with as of that in not and this the Capital cash, $XX of approximately were CapEx versus million year a $XXX.X million versus million Zone. June cash investments in $XX million expenditures 'XX. equivalents cash in $XXX.X A does

to Turning guidance.

For million, of million we XX% expect $XXX of total revenue to to fiscal of $XXX XX% approximately to SynBio million million, $XXX XX% XXXX, year-over-year. $XXX revenue approximately growth growth of to XX% year-over-year.

We XX% expect to growth revenue of million, $XXX NGS to approximately $XXX XX% million year-over-year. of

of to approximately of X% growth X% million $XX year-over-year. million, For $XX biopharma revenue to

XX% fiscal million, SynBio approximately of For revenue QX revenue of XXXX. million, versus of year-over-year. growth $XX approximately total we approximately $XX expect approximately fiscal QX XXXX, of of of XX% growth

revenue $X growth $XX approximately biopharma of of revenue of approximately and XX% year-over-year, million. NGS million,

XXXX, For QX gross margin fiscal of the fiscal expect sequential XX%. XX% of improvements year margin in XXXX approximately gross quarterly we full of with

$XX fiscal improvement million with million adjusted EBITDA sequential $XX approximately XXXX versus quarters. to subsequent loss expect We fiscal QX an in $XX of of fiscal $XX XXXX, adjusted EBITDA million million million of improvement loss approximately approximately XXXX. $XX for to

QX to due bump to As the and promotional bonus OpEx an turn in contains I'll payouts. With a reminder, Emily. additional call that, back

Adam. Thank you,

As success. Twist. a the our relentless era The the new at of under we cusp the to a stand we begin of PASI for game-changing been technology trial products power general testament has customers' fiscal enable combining to XXXX,

revenue. We have portfolio product and grown advanced our

empowers solutions breakthroughs improve our and importantly, pioneer to challenges. our we most cutting-edge frostbite of delivering have products drive researchers and pressing health and providing across speed to efficiency, customers some take precision to world's our the commitment scalability More that economic myriad equipped By industries growth. in services,

our positive repo We we effect customers that globally. succeed of succeed, all that creating believe extends when change a

pushing are the we what's to of committed binaries more ahead, Looking than ever possible.

to growth. continue to We products provide and generate development, research that will in invest profitable fiscal employing discipline

We'll continue breakeven. march EBITDA discipline to financial to our our to and of entering focus all stakeholders, adjusted on hold firm delivering value to

conclude, I'd take our a our other to each been what day. I and to we every incredible serve and beyond have Twist, go to single customers employees recognition Before who above year employees like achieved for thank so and our It's a banner a for moment together.

our look forward is keeping to apprised progress. Operator? building, momentum we you of Our and

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

growth we for terms queue. of upfront OpEx us this ask products Express or the revenue efficiencies trends how year? QX? that you I'll it either you Could But get next and you that you phasing of in versus just operational and trended secondly, as of Adam, an about year should think questions guys year And Maybe growth. and just bio outlined, in spend course give just the give can -- of us this of portion was the can X for an idea quarterly what just and just back plus mix throughout the idea phasing how potentially the understanding and in both new genes in then SG&A year a this and next R&D

the Matt. I'll absolutely. Yes, first second for and come Excited back with question. be in first start to Thanks the to we'll X one. the here.

chunk in big modest In we inflationary one, as margin. with fairly it merit terms question, it saw gross last second annual of terms well Matt, the pretty increases your throughout in come year. of increases in growth of year, increases, the OpEx. phasing, modest of quarter balance terms as will the of we but year, in increases we very first in the expect I our as bonus line A drivers the call for in be of first terms do what in it will of

QX of I think reiterating the starting the gross the driving, throughout and the of XX% some still in continued for quarters improvement we're opportunities terms but Paddy that of we see exit the exciting we hit each going really margin on that about of projects year have margins in QX. and gross sequential in

Evercore question from Vijay of the next with comes Kumar ISI. line Our

lot to picture And you big NIH customers, is your here, change -- to the post elections, your budgets think, about talk what Can you compared competitive budgets? have the questions on landscape. exposure and -- know NIH behavior? Is where On a of is seen have I I in in share Twist asked manufacturing past you seeing more any genes Twist total gains?

Yes. Thank Vijay. you,

X%. exposure, than On we a the it's small have very NIH, less probably

to constrained. do And our high an very, price. a share. opportunity opportunity So again, market take very brand for quit at us good in were [indiscernible] for past budget there. we it's was Because the time, us know any better It an is to that

going lean around XXX% of So quarters, to the our us for be as into production is made an DNA think, is U.S. question as there's DNA it's over where in that. made. And being opportunity, I the few far more yes, definitely to then And last

it's definitely for supply And it's it's I be of our think And outside think U.S. definitely our us. going customers the manufacture headwind so thinking about their chain, that are -- tailwind to a and a I for competitors

minus Understood. is fourth in some the quarter in rate party I range? know of in P&L side much revenue? revenues? there your And was What EBITDA How is on XX% is it's confusion kind of related XX% related EBITDA of What minus here. related this one part was maybe the to party exit guidance quarter -- -- the it -- of implied

question. the take to Happy

way for the $XX the related said legacy. improvement And million netting In of XX% we $XX in line terms and in million sequential the QX, in year. year revenue the to about out the throughout EBITDA, XX% with all at what is party terms was relatively of in QX,

you're So about talking the are range unreasonable.

Bank. line Nam with of from Ji Scotia comes question the Sung next Our

Emily. Maybe one for

see great next-gen Twist has. that continued it's across partnership -- to Just sequencing the the providers

highly you prep. solutions of lot As sequencing at library kind providers, of are in they look a these next developing terms these of innovative

You mentioned And constellation about map tree Trinity. the Elements I et technology, Alumina think cetera. talked

kind I of opportunities provide greater from kind in total Or that future? just sales affects overall of do your, how are curious in Twist's like products? your curious the revenue innovations Just the kind opportunities what of net-net, standpoint, these new -- of essentially terms guess, of

is performance. positive with quality the have now and own Yes. our see it as benefit more a focused is Thanks R&D the enzymes -- with And for which our competitor the Yes. Pro, advances and the prep. we and maybe we technology works. question. our which is library provide our I as on that with other what compared at to speed And

evolve, to able on And revenue. our grow effication so and technologies to and we're as our edge the leveraging commercial bleeding both those stay innovation our

next the Nambi comes . Securities. from of with Our line question Subbu Guggenheim

for what Could in NGS you insights the XX% the you the are it or markets the you into elaborate Are different FDA provide which moving assuming reimbursements? And Genes Express are Medicare you assuming growth? to And on margin in end 'XX assumptions SynBio guide, you be? rules assuming to you could gross are parts XXXX anything upside? Or growth last, baking all any Is additional for market. target? also

I improvements basis our P&L. at only the year look sequential CapEx burn to of we've year, second it's made, step I the versus cash progress forward. of growth in of minimal the specifically as only first half, can up the of question. of thank we've are with XXX So a we're expect reduction half we back prior QX points, to to going in revenue. great kind drivers, When this for X question. at in at quarters OpEx say for GAAP million. GAAP looking we how gross to the expect of see We're you And margin and a in down what No, back the the $XX continue the in and kind moved see was we modeling. pleased year. the year, look And kind assumed

the We customer we're expansion MRD net For the going rep. in that genes, the improvement expanding seeing express seeing side, uptick improvement, of assumed of we're and then the we year. our base positive see number an SynBio in NGS, we and biopsy, not new seeing liquid We're can have assume this to already accounts. down expansion continued continue

We from gross year. We expect that areas see next improvement into we the the margin sequentially other continued throughout to in the continuation And expect do sit the year. the P&L where of of business. down

Our comes the next Sergott Barclays. with question from Luke of line

I are into can you Century with guess, the -- maybe end other commercialized of little next there give associated year being at helpful. bit Who the are Can the this archive slide is But this details about be that? I earn-outs access I at solution? a kind of you year, update talk this customers? about remember milestones? DNA storage, the this talking to suppose year, on on is the or guys us just early Any the

Luke. Yes. Thank you,

the know, vector key big. really hard into is taped existing And future you a be search technologies when that and with As to competitive are we of and really, us is need market that it, the for we ride. growth go

we the applications. on so focused terabyte are And and chip terabyte fully

team And so is that technology what development. is focusing on doing the

First, those a that a is what focus chips. an need. of And of of and it's enticer that on approach we point the and deployed cost for fully from view we And enzymatic moved at sustainability. this synthesis. for is fully the That's to a chip converged both the both point, reason combination

So at focused this that point, we strongly on development. really, really are

early a . customer, bit team little great speak it's progress. to And therefore, is the about but making so

question comes Matt Blair. Larew William next Our of line from with the

Adam, despite SynBio. For And the think margins I the above quarter. the gross coming in upside that's of top line from slightly

the your the came expectations? think about effect help else the where maybe future? in Just from think margin to terms that the towards gene So just Anything gross of upside curious scale if in express bias of reflects quarter? to relative us

before in profit. XX% will to that revenue or XX% And terms question. -- gross we of I've be the the NGS the mentioned to now incremental see it I drop gross think Great that of it SynBio margin whether upside.

genes a this reflection form, expectations. shape gross see But or with we're We're think of continue that we express any faster grow we improvements line out fall are is continue growth QX. in those but in play as was seeing more to sequential continues the it say a to to that here I'd way, quarter-on-quarter. than as growth. seeing tailwind see in outsized I not margin

week actually of So which when some I'd margin. bit also if of an quarter improvement call, that working all way XXXX, key on the hit a mentioned which initiatives look less we P&L, are is. to are think that of in are of the there and we cautious launch And tenth but the is adding of of to the you the week will on of the we sixth the the we have on on timing the impact in the improvements timing as on the a when quarter. gross excited we be be Paddy some those number will working We're of continued at into operational launches in been uncertain those more that but no bit the is improvement go expect XXXX, in than in of when improvements, see that points about a different they'll hit

Our Leerink of Puneet the Souda Partners. next question line comes from with

finalized which yet. the pharma I then more But providing wondering, on situation. revenue of fiscal of exposure? your just I could to political for HHS is question NI in So of X% NIH first Zoma and potential guide? those how given it Is I biopharma. you what more separate much potential exposure And you for with getting I the understand, low, share? and diagnostic sort assays? on the us is now you it in and combined first just all is But and by appointment, parts 'XX cuts, deal. ask again, mean, it into growth a pressure just FDA and sort And Is moving is given all, appreciate related XX% trying taking pharma your, just appreciate not that is maybe biotech of SynBio? more pharma of to confidence And which gives or but the one, XX% again, -- And quantify the NGS it's overall. around if could more

So and the work you? the biopharma how this leaders had part of XX% leadership you your to already business there, deal divisions one left was change is core competitors. of a of

core this business how is just to now? you So wondering

Thank Biopharma there been with second one I'll science. the Maybe start really always on you, first. Vijay. The great team the

So we candidate drugs, from know that for punching give I get of we've vitro struggling. really, we an we're vivo, commercially, to been technology when service -- the we target, know where really technology in the leverage order think of to strongly. we're a spectrum able full in get so a which point that We view,

I'm quarter. pleased that see so And very to orders the we achieved last

benefits And company. broader so it's an of to NFX, terms we have to do in it again. the But

is having the want Synbio work in same captured or to because if want the from customer offer we useful outsource. they the go they in products underappreciated we product, the the maybe them them service a can service think offer either selling biopharma -- and we are how to very offering the can with to if -- I the do that it's a lab really,

to that punch looking there all product upswing. X-X the is -- need revenue we're that's At I'm biopharma to and the all businesses, And But to useful very so the serve time, to on weight. same when their back pull the able the groups obviously, go both. forward

been been is last doing products we care accident know, And biopharma XX%. We sell. pressure, are shared services we there's As commercial we've no And that several with done combined and of violence when biopharma far funding really our both that NGS report. biopharma few to years differentiated think we've that and we over Symbio exposure our are go the years. as health exposure that funding product about apply really you it's well. and as group. some It's the well And

So the I future. look And quite forward we of to positive are that. more more about

with next Tom of the line from question Baird. Our Peterson comes

gains side directly DNA SynBio you the know seeing offering. I spend related you I you're disclose I maybe expecting missed can Maybe where share this on don't And just if -- perspective just tier second share in then mean from is question you mentioned conversion data OpEx seeing the 'XX of think DNA Are on share what with stores? to quickly gain from an elsewhere? a quickly the you're Did on resting I this. elaborate you gains makers?

here. of that. for question. take it's the Tom, first I'll Paddy Thanks the part

us good, workflow. more the express and is I more liking to think broadly for and with downstream for sequential the but customer it's also genes, growth obviously, expand and the

So continue. us boingG move and think to very a enabled positive performance, to preps fashion down will that we works

terms data a you storage, in at it In GAAP $XX basis, it closer million. million on basis, if XXXX around terms we OpEx, cash on spent to of $XX a of look

We XXXX. specific relatively in going stable provided in we're I guidance of to where But terms would investment a profile. haven't be expect

next line comes question from with Our of TD Cowen. Smith the Brendan

Smith. area sort the technology? that sort Have developments for little to Or that on now? proprietary products there right you on sort It's of why a that been [indiscernible] Could you enzymes of there? time a make Brendan launching mentioned, natural to just was deploy next the step this just this give more of color start

the Yes. question. well exploration new use for made enzymes of Yes. of platform Basically, obviously well under wonderful customer. We've it's the use and Thanks enzymes. by an products to very of we've another to received of have of advantage DNA proprietary we target for very, just It's workflows, features. interesting synthesis our enrichment us terms that's the a for differentiation that in point that scale and going making done the in gives

get Twist right ability molecules to the that it's on into efficient We you get is workflows the efficiency on sequencer. customer for the a product it, molecule around or When label the to more which the most be forward. and every drives going customer. very outcome our more of going to at first look for to theme use it to important essentially, of the the differentiated sequencer, the ligase mentioned make So good Emily molecules base really our of

coming got map we And through. road the of like we've timing the So good. enzymes is

next line Thomas comes the question Research. from with DeBourcy of Our Nephron

I in you relates dynamic start back the beginning. the you conversion My and question how open QX, XXXX, of those year? curious, you just to just as with, your of orders execution step-up orders with look I terms going in customer step expect in back a of up to year Sorry, to guess, you purchase guess, purchase I would of the similar was calendar go orders a And just orders? the purchase And saw from a to XXXX, calendar towards fiscal saw orders.

for the you with the Tom, it Adam, is look sequential you real We're and of the of question. is performing. quarters how at this hitting pleased increased And revenue. business kind X thank on as

to more that pattern different for a wanting longer-term customers order commitments making We easier are mechanisms that seeing procurement are perspective. with us use to and

expect both to We see sequential orders throughout in and year. year revenue growth the next

driving call will we'll not we in of up home then the primarily very and the revenue, just I the moving XXXX, are we but the on earlier, orders and we're really be our order revenue forecast continued disclosures the the focusing disclosures, be expansion, report forward P&L. and seeing expectation our down the on commentary pleased side, but truly biopharma on and in progress mentioned As and on will on with

from Our with question is next Larew Blair. a follow-up William Matt

have I X quick ones.

about couple of NIH. questions a -- first The

going comment I does you've And you or streamlined summer, in guess, to the some the things think more think Adam's that over forward? how I your clean the you years to there. positions academic And offering curious on then done make market. just last -- up historically

So on you but just saying, SynBio confirming. that's confirm, and be providing not forward, NGS, orders you're what will think I just going to

cover second Adam, first? question to want the do you

we take in take part. the forward for it. I'll biopharma that Absolutely. confirming that I'm going second Sure. disclosures be focusing are and 'XX. just area orders fiscal in the I'll to our moving

question, you, workflow, to Matt. user focusing for economic And have we for thank And the order. first indeed, been yes, on the the the expense

And ordering of products, the great they academic have equity, overall So user on And systems with great also the especially do, fast, the they cost e-commerce. low not need been we the our focused experience a website of integration a are institutions. then e-commerce high are which you to value. with we've only but

a So others. few you have [indiscernible]

the those revenue we we've in the working the internally, sorry, institution, so growth in seen -- could those first the that number and ones for see punch the as And institution. are positive. it e-commerce and -- out And from are link on we and roll new users that of really, so BXB net institutions really is out. supplier But we or integrating our between

first. the going That's strategy now, So also on the of focused of big on a strategy. we've the more been tail long But been accounts we're winning after historically, customers.

something for hook us. sign the top e-commerce. to asking, for with institution we is our think we good And a now, it's definitely have it's of And and up a an thanks getting that question solution. of So mind

Our comes ISI. with from the of next line Evercore Vijay question Kumar

Can why Adam, give does this? back flavor across come we disclose revenue. Twist is just other related term, party It's what a you maybe the is have -- some . this? on it's with just us just companies. why And don't on to --

of CEO company. whom X of them U.S.-based benign the that member that was companies, the a and pretty related related XXXX, party our it's Board X -- which fiscal at end And who have parties public to. here at on Happy the of the All our is is of middle no in in sense parties longer QX. the are of the of one of the sits is we of ours one Board one CEO

that stable. question. company appreciate XX-K So much disclose there. I out we're see relatively pretty our similar every in and Thank continue accounting to that -- XX-Q business requirement we with other to the you. will be And obviously an we

Our next with Rachel of the question comes from Vatnsdal JPMorgan. line

for then past Genes, on updated do could how into kind few this just wondering But squeeze was down us I Express you the Just just here is into launch, you And pricing meaningful targets for was of a laid for think today? first Genes Express what over further the 'XX for you're a can bit out if lastly, the us then the quantify you break X-parter. how Express Genes off, Genes quarters? that in you one quarter? premium about contribution now And Express from

thanks Yes. us, it It for topic up. and a for you, bringing important is very, Rachel. Thank very

but So initial only we've an not to as now reminder, launch actually call about build we on express genes, expert we're that what back a built step portfolio. as a talking express

So last prep certain you in can to get expressed fragments, days. ship get you so reported Express where can IgG able -- being in express get we can do quarter, to Express Genes, wherever protein IgG, express you

things. doing of a combination of that portfolio X-ray is that couple So

now The as growth clarification net The first sequential our buyers. is -- new boosting we make their converting customers used one And clonal Express portfolio. customers just be fragments can Well It's prep. making again, quick who their buy a clonal then it buy revenue. are into from were buyers genes our adding and seeing own they of to or customers. own they and It's they genes. will some makers

would the Now preps IgG. they or of buy IgG can prep they buyers were make they the can buy own and they now their

in portfolio. dropped that quarters we've last appreciate And So multiple our And margin differential NGS thanks row margin the reported in to that XX% a of gross is in XX% to increased margin line. conversion of past, contribution growth and revenue our the it's gross portfolio. to then really the to now Genes the Express and our a really, had is between we thing Express And we happening. to from buy makers the SynBio where

Now it's about the same.

dollar SynBio is the a NGS doesn't the if in, to or line, goes really so it it And if line the gross comes into same. new margin the benefit line the is that there matter

It's us forward, very we goal going margin our of we market. And EBITDA to the a the back getting look to much So revenue that going forward benefiting portfolio. to without and to to continue growth that adjusted get breakeven the leverage really winner. from benefit to

would like Leproust remarks. closing call the I to to now Emily for hand over back

As we close, delivered emphasize on let towards and long-term profitability are in we results record-breaking Twist continued me XXXX, this. a and growth. trajectory fiscal clear

innovation and customers and transforming is relentless education, technology we industries, focus poised investors momentum partnership on fiscal XXXX. back, in heights our to disciplined thank our today. trust Our and we want customers a shareholders. Thank together. joining are write us for your With new and disruptive for and at driving the as innovation to reach future our to value delivering I employees, you

This concludes for conference participation. Thank call. today's your you

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