Twist Bioscience Reports First Quarter Fiscal 2019 Financial Results and Highlig
-- Reports Record Revenue of $11.5 Million for First Quarter of Fiscal 2019 --
-- Increasing Orders Show Substantial Growth in Next-Generation Sequencing Products --
-- Diversified Revenue from Genes Products --
-- Updates Fiscal 2019 Financial Guidance --
SAN FRANCISCO--(BUSINESS WIRE)--Feb. 7, 2019-- Twist Bioscience Corporation (NASDAQ: TWST), a company enabling customers to succeed through its offering of high-quality synthetic DNA using its silicon platform, today reported financial results and business highlights for the first quarter of fiscal 2019 ended December 31, 2018.
“We accomplished several significant objectives during the first quarter of fiscal 2019 focused on expanding our product portfolio, diversifying our customer base and continuing to deliver on our mission to supply DNA for improved health and sustainability,” said Emily M. Leproust, Ph.D., CEO and co-founder of Twist. “Our NGS products are resonating with the market and drove top-line growth in the quarter. We received much larger orders more quickly than we anticipated, requiring increased staffing and resulting in higher fixed cost in the near- and medium-term.”
“Moving forward, we intend to maintain a strong top line, work to drive our margin up, and continue to invest strategically in our vertical market opportunities focused on antibody discovery and DNA data storage.”
FISCAL 2019 FIRST QUARTER FINANCIAL RESULTS
- Orders: Total orders received for the three months ended December 31, 2018 were $15.2 million, compared to $7.4 million for the same period of fiscal 2018.
- Revenue: Total revenues were $11.5 million for the three months ended December 31, 2018 compared to $4.3 million for the same period of fiscal 2018.
- Cost of Revenues: Cost of revenues for the three months ended December 31, 2018$11.9 million compared to $7.5 million for the similar period of fiscal 2018.
- Research and Development Expenses: Research and development expenses for the three months ended December 31, 2018 were $7.3 million compared to $4.3 million for the same period of fiscal 2018.
- Selling, General and Administrative Expenses: Selling, general and administrative expenses for the three months ended December 31, 2018 were $15.3 million compared to $9.3 million for the same period of fiscal 2018.
- Net Loss: Net loss for the fiscal 2019 first quarter was $22.6 million, or $1.18 per share, compared to $16.9 million, or $6.42 per share, for the fiscal 2018 first quarter.
- Cash Position: As of December 31, 2018, the company had $130.2 million in cash, cash equivalents and short term investments.
“We delivered significant revenue and order growth in the first quarter – both indicators that our products are gaining traction, and we have scaled our internal infrastructure and resources to position Twist for rapid growth, particularly from our NGS products,” commented Jim Thorburn, CFO of Twist.
Fiscal First Quarter 2019 and Recent Highlights
- Shipped approximately 71,000 genes in the first quarter of 2019, compared to approximately 44,800 in the first quarter of fiscal 2018. Current turnaround time for 1.8 kb genes is 14 days
- Continued progress in NGS product line, having shipped to 115 customers in the first quarter of fiscal 2019 with eighteen customers now in production mode
- Expanded the availability of genes five kilobases (5 kb) in length to all customers
- Introduced Twist Application Programming Interface (TAPI)
- Received International Organization for Standardization (ISO) 9001:2015 and 13485:2016 certification for its quality management systems for manufacturing its next-generation sequencing (NGS) Target Enrichment Panels1, the latter for medical device applications
- Generated early proof-of-concept data from the GPCR library and antibody optimization software for Twist Biopharma
Fiscal 2019 Milestones
- Offer customers 5kb genes at disruptive price – Complete
- Introduce Twist Application Programmable Interface (TAPI) for gene ordering - Complete
- Implement and execute new product introductions roadmap
Genomics and Targeted NGS
- Achieve ISO 13485:2016 certification for quality management systems (NGS TE Panels) - Complete
- Convert pilot NGS customers to full production
- Launch e-commerce platform for NGS products in the first half of 2019
- Leverage growth in top line to improve variable and gross margin
- Launch back-end production in China for NGS and other products
- Generate early proof-of-concept data from the GPCR library and antibody optimization software for Twist Biopharma – Complete
- Expand proof of concept data packages for the GPCR antibody library and the bio-better programs
- Advance the antibody discovery and optimization programs through non-dilutive collaborations
- Longer-term: seek revenue-generating partnerships
DNA Data Storage
- Execute roadmap to increase synthesis density on silicon platform and reduce DNA writing cost for DNA digital data storage
- Pursue non-dilutive funding for the continued development of DNA digital data storage
For the full fiscal year 2019, Twist continues to expect to report:
About Twist Bioscience Corporation
- Revenue in the range of $47 million to $49 million
- Net loss in the range of $92 million to $94 million due to:
- Increased stock-based compensation costs of approximately $7 million, a non-cash item
- $1.4 million associated with one-time public company readiness and NGS ramp costs incurred in the first quarter of fiscal 2019
- Increased investment in NGS operations of approximately $0.6 million per quarter driven by staffing increases associated with the increased NGS market opportunity
- $1.5 million investment in biopharma as we increase our projected investment from $5.0 million
Twist Bioscience is a leading and rapidly growing synthetic biology company that has developed a disruptive DNA synthesis platform to industrialize the engineering of biology. The core of the platform is a proprietary technology that pioneers a new method of manufacturing synthetic DNA by “writing” DNA on a silicon chip. Twist is leveraging its unique technology to manufacture a broad range of synthetic DNA-based products, including synthetic genes, tools for next-generation sequencing (NGS) preparation, and antibody libraries for drug discovery and development. Twist is also pursuing longer-term opportunities in digital data storage in DNA and biologics drug discovery. Twist make products for use across many industries including healthcare, industrial chemicals, agriculture and academic research.
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