Twist Bioscience(US:TWST)2022-02-08 16:00Revenue Growth - Revenue increased by 49% to $42.0 million for the three months ended December 31, 2021, compared to $28.2 million for the same period in 2020[120]. - Synthetic gene revenue grew to $13.5 million, up from $9.7 million in the previous quarter, driven by an increase in the customer base and new product launches[106]. - Antibody discovery revenue rose to $4.8 million from $2.6 million in the previous quarter, attributed to growth from the recent Abveris acquisition[106]. - The Americas accounted for 54% of total revenues, while EMEA and APAC contributed 37% and 9%, respectively[116]. Expenses and Losses - Net loss attributable to common stockholders was $45.6 million for the three months ended December 31, 2021, compared to a net loss of $32.9 million for the same period in 2020[112]. - Research and development expenses increased by 62% to $22.6 million, up from $14.0 million in the same quarter of 2020, primarily due to increased headcount and outside services[122]. - Selling, general and administrative expenses increased to $51.1 million from $35.8 million in the previous quarter, driven by higher payroll and professional services costs[106]. - Selling, general and administrative expenses increased to $51.1 million in Q4 2021 from $28.8 million in Q4 2020, a 77% increase, primarily due to payroll expenses rising by $15.6 million[123]. Cash Flow and Investments - Net cash used in operating activities was $(46.7) million in Q4 2021, compared to $(24.9) million in Q4 2020, reflecting a worsening cash flow situation[139][140]. - Investing activities in Q4 2021 resulted in a net cash outflow of $(226.6) million, significantly higher than $(45.9) million in Q4 2020, indicating increased investment activity[141][142]. - Financing activities led to a net cash outflow of $(1.0) million in Q4 2021, contrasting sharply with a net inflow of $326.9 million in Q4 2020, highlighting a shift in financing strategy[143][144]. - As of December 31, 2021, the company had $191.6 million in cash and cash equivalents, $110.2 million in short-term investments, and $106.8 million in long-term investments, indicating a strong liquidity position[129]. - The company had $69.7 million in commitments for capital expenditures as of December 31, 2021, reflecting ongoing investment in growth initiatives[137]. Operational Expansion - The company shipped approximately 125,000 genes in the three months ended December 31, 2021, a 49% increase from approximately 84,000 genes in the same period of 2020[120]. - The company has expanded its manufacturing operations with a 12-year lease for approximately 111,000 square feet and an additional 101,000 square feet in the Portland area[109]. - The company entered into a 7-year operating lease for office space in South San Francisco, with total future minimum lease payments of $13.1 million, indicating expansion plans[148]. Tax and Interest - The income tax benefit recorded in Q4 2021 was $10.4 million, a significant increase from an expense of $(0.05) million in Q4 2020, representing a 227% change[126]. - Interest income rose to $0.2 million in Q4 2021, a 15% increase from $0.1 million in Q4 2020, while interest expense decreased by 78% to $(0.03) million[125]. Financial Position and Risks - The company had cash, cash equivalents, and marketable securities totaling $408.7 million as of December 31, 2021, down from $477.9 million as of September 30, 2021[164]. - The company is exposed to interest rate risk, with a hypothetical 10% relative change in interest rates not expected to materially impact financial statements[165]. - Foreign currency transactions primarily involve the Euro, Chinese Yuan, and British Pound, exposing the company to foreign exchange risk[166]. - The company does not use derivative financial instruments for speculative trading purposes, minimizing counterparty risk through creditworthy banks[167]. Goodwill and Intangible Assets - Goodwill is tested for impairment annually, with significant judgment required to assess fair value against carrying value[162]. - Intangible assets from business acquisitions include goodwill and development technology, with critical estimates based on projected revenues and discount rates[160]. Revenue Recognition - Biopharma revenue primarily consists of research and development agreements, with contract assets of $4.4 million and contract liabilities of $0.9 million as of December 31, 2021[157]. - Revenue is recognized based on the timing of development activities, with no revenue recognized from performance obligations satisfied in previous periods[157]. - The company recognizes revenue from functional license agreements when the license is transferred to the customer, allowing them to use and benefit from the license[156]. Stock-Based Compensation - Stock-based compensation includes performance-based stock units (PSUs) granted to executive officers and senior employees, with fair value calculated using the Black-Scholes method[159].