Twist Bioscience(US:TWST)2023-11-17 16:52Financial Data and Key Metrics Changes - Revenue for Q4 2023 grew to $66.9 million, bringing total revenue for fiscal year 2023 to $245.1 million, representing a year-over-year growth of approximately 20% [9][64] - Gross margin for both the quarter and the year was approximately 37% [9][49] - Cash, cash equivalents, and investments at the end of the year totaled approximately $336 million [9][42] Business Line Data and Key Metrics Changes - NGS revenue for Q4 increased to approximately $37.1 million, a 27% year-over-year growth, with full-year revenue reaching $123.7 million, up 25% from the previous year [36] - SynBio revenue for Q4 was $26.5 million, totaling $98.2 million for fiscal 2023, up from $80 million in fiscal 2022 [37] - Biopharma revenue for Q4 was $3.4 million, totaling $23.2 million for fiscal 2023, a decline from $24.2 million in fiscal 2022 [38] Market Data and Key Metrics Changes - EMEA revenue rose to $71.4 million compared to $62.1 million in fiscal 2022, while APAC revenue increased to $22.5 million from $19.1 million [39] - U.S. revenue increased to $151.3 million in fiscal 2023 from $122.5 million in fiscal 2022 [39] Company Strategy and Development Direction - The company is focused on profitable and stable growth moving into fiscal 2024, with strategic actions aimed at optimizing operations and increasing gross margins [26][74] - The launch of Express Genes is expected to enhance contribution margins and expand market opportunities [56][58] - The company aims to leverage its investments in the Wilsonville facility to drive future growth and profitability [27][74] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the recovery in Biopharma revenue, indicating that Q4 2023 may represent the low point for this segment [32] - The company is focused on scaling Express Genes and managing costs while continuing to grow revenue and expand gross margins [74][90] - Management acknowledged macroeconomic challenges but emphasized the differentiated product offerings that position the company favorably in the market [119][120] Other Important Information - The company ended fiscal 2023 with approximately $336 million in cash and investments, down from $39 million in inventory at the end of fiscal 2022 [42][64] - Operating expenses for fiscal 2023 decreased to approximately $306.8 million from $319 million in fiscal 2022 [40] Q&A Session Summary Question: Can you talk about how much of the guidance implies or bakes in the Fast Genes? - Management indicated that the guidance reflects expectations for Express Genes and its impact on margins [51] Question: What feedback are you getting for Express Genes? - Management noted positive feedback from a mix of large pharma, small pharma, and academic customers, with a focus on existing customers for initial uptake [53][55] Question: Can you provide insight on the current penetration of the makers market? - The company estimates the makers market to be a $1.4 billion opportunity, with current penetration being minimal but with significant potential for growth through Express Genes [85] Question: What are the expectations for data storage spending in fiscal 2024? - Data storage operating expenses are expected to be in the range of $37 million to $39 million for the year [123] Question: How should we think about adjusted EBITDA loss for Biopharma for the year? - Management indicated that the focus is on achieving adjusted EBITDA breakeven for Biopharma, NGS, and SynBio as quickly as possible [124]