Twist Bioscience(US:TWST)2022-02-04 19:45Financial Data and Key Metrics Changes - The company reported record revenue of $42 million for Q1 2022, representing a sequential growth of 11% and a year-over-year growth of 49% [39] - Orders for the quarter were $49.6 million, a sequential increase of 10% and a year-over-year growth of 48% [39] - Gross margin for Q1 was 35.6%, slightly up from 35.5% in Q1 2021 [49] - The company ended the quarter with cash and investments of approximately $409 million [40] Business Line Data and Key Metrics Changes - SynBio revenue reached $18 million, up from $13.9 million in the same quarter of fiscal 2021, with orders at $22.2 million, a 40% increase year-over-year [46][43] - NGS revenue was $19.2 million, reflecting a 23% growth year-over-year, with orders at $21.8 million, a 28% increase year-over-year [45][41] - Biopharma revenue was approximately $4.8 million, including one month of contribution from the Abveris acquisition [46] Market Data and Key Metrics Changes - Healthcare revenue was $21 million, up from $16 million in Q1 2021; Industrial Chemicals revenue was $12.5 million, compared to $7.1 million in the same period [47] - EMEA region revenue was $15.4 million, significantly up from $9.1 million in Q1 2021, while APAC revenue reached $4 million, up from $1.8 million [48] Company Strategy and Development Direction - The company plans to continue expanding its customer base in synthetic biology and aims to bring the Factory of the Future online to reduce turnaround times and launch new products [61] - In NGS, the focus is on growing the market for liquid biopsy and MRD, with expectations of significant revenue expansion as these products reach commercialization [62] - The biopharma segment aims to leverage the integration of Abveris to enhance revenue through partnerships and internal pipeline advancements [63] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in NGS, particularly in liquid biopsy and MRD, despite short-term impacts from the Omicron variant [39][86] - The company anticipates a strong second half of fiscal 2022, driven by increased customer adoption and product launches [86] Other Important Information - The company has increased its revenue guidance for fiscal 2022 to a range of $189 million to $198 million, up from the previous guidance of $183 million to $193 million [54] - The gross margin guidance remains at 35% to 37%, reflecting ongoing costs associated with the Portland brand [56] Q&A Session Summary Question: Can you discuss the path forward for the Enzymatic Synthesis platform? - The company plans to develop its own hardware for Enzymatic Synthesis, particularly for enterprise data storage, while remaining open to partnerships for other markets [67][69] Question: What is the pricing variation for NGS products, especially for liquid biopsy? - Pricing varies based on the number of probes in a panel and the volume of samples ordered, with the company targeting to capture 5% to 10% of the liquid biopsy market [70][71] Question: What drove the strong growth in the EMEA region, and is it sustainable? - Growth in EMEA is attributed to investments in the commercial organization and strong demand across key countries, with expectations for continued growth [75] Question: Were the production challenges from the last quarter resolved? - Production issues were resolved, and the company shipped a record 125,000 genes, indicating strong demand in SynBio [82] Question: Why is the NGS guidance flat despite strong momentum? - The flat guidance reflects near-term conservatism, but the company expects significant growth in the second half of the year driven by customer adoption [86] Question: How has the nature of conversations in biopharma changed? - The company has gained a strong reputation, making it easier to engage with larger, more conservative companies compared to a few years ago [101]