Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| We feel good about our Express Genes |
| Our objective is to set a positive trajectory to our financial performance, moving towards profitability as a business |
| We enjoyed record bookings in quarter four and are excited about the launch of our Express Genes |
| So NGS, we’re doing extremely well |
| Oligo pools revenue grew to $14.5 million and that’s up from $12.4 million in fiscal ‘22, mainly due to strong growth in academic and large pharma customers |
| We’re well positioned |
| Across the business, our efforts over the last 24 months in building the Wilsonville facility, expanding our production line and streamlining workflows are now benefiting both our SynBio and NGS product lines to allow us to deliver what our customers need |
| Fiscal 2023 was a year of growth and strong execution for Twist |
| We had another strong year and excited about leveraging our investments in our Wilsonville facility |
| We ended the year very strong NGS orders, just under $40 million, making great progress on NGS |
| Our SynBio and NGS groups are stronger than ever, demonstrating consistent and sustained growth in revenue, customers and market share |
| With Express Genes, we have the opportunity to increase contribution margin for the SynBio product group as well as our overarching gross margin |
| We have nice orders |
| Third, with higher revenues through premium pricing for Express Genes, we expect to see margin improve |
| So we feel well positioned |
| At the same time, we expect to increase our margin from this differentiated product line while serving a large unmet need for our current and future customers |
| Q1, pretty solid front loaded guidance |
| As we continue to scale the factory, we’re going to see upside in terms of that gross margin as we execute |
| So, we feel that as we look next year, good solid growth in gross margin |
| The enhanced speed and efficiency of our operations has allowed us to gain a stronger foothold in the market while maintaining healthy contribution margins for this product line |
| In terms of SynBio, with another strong year of growth, the overall business, if you step back and look at it, excluding Biopharma, I think everybody is familiar with our Biopharma issues and it’s good to see Biopharma recurring |
| They’ll get faster science and we’ll get more orders and we think we’ll be able to take very significant market share |
| The Biopharma service group booked increasing orders in the fourth quarter, and we expect the positive momentum to continue |
| So not only are Express Genes an opportunity to increase margin and take market share, but they also laid a foundation for growth into the future |
| We served approximately 1,020 NGS customers in fiscal ‘23 and we believe our NGS products have a compelling competitive advantage and save our customers’ downstream sequencing costs |
| In summary, we exceeded fiscal 2023 with a solid cash position, growing revenues, reduced cost structure and incredible opportunities ahead |
| At a high level, our Life Sciences, Bio and NGS products grew at more than 23% year-over-year |
| We have built a diversified and complementary portfolio of products, services and future opportunities that put the company in a strong position to achieve consistent and sustained growth while minimizing risk |
| Revenue increased sequentially from quarter three to quarter four by roughly $3 million, and our gross margin dollars increased by $3 million |
| We have momentum going into fiscal year with the launch of Express Genes and the ability to unlock future product lines |
| Statement |
|---|
| So, I think the question is really the demand in the market, which according to most of the life science tools peers is weak, to put it briefly |
| I can see that -- I agree with you that when you look at our peers, it seems like the demand is weak |
| In pharma, on the SynBio side, there’s definitely some funding pressure |
| For Biopharma, revenue for the fourth quarter, it was $3.4 million, bringing the total revenue from Biopharma to $23.2 million in fiscal ‘23, and that’s a decline from $24.2 million in fiscal ‘22 |
| Your top end of your fiscal ‘24 guidance is just sort of slightly shy of where Street was in revenue |
| We had a stumble in commercial execution, and so we had a few quarters of Biopharma services going down, but now we’ve rebuilt the commercial team |
| As we’re thinking about next year, fiscal year ‘24, which we’re now in, we’ve got some macroeconomic environment issues that we’re taking into account |
| There’s always some macroeconomic environment issues that we need to comprehend |
| Could you maybe outline how much of that is from services or any other sort of milestone payments that you’re expecting here? Because when we look at some of the antibody discovery fears, obviously, the market is pressured by the emerging biotechs pulled back meaningfully |
| It was -- we were not suffering from market headwinds |
| I think what’s interesting as you do take a look at our forward guidance, the loss from operations this coming quarter is about $47 million, $48 million, and revenue $67 million to $68 million |
| It was more from a commercial execution headwind |
| Emily Leproust I know that definitely there is a funding pressure in Biopharma |
| And that’s going to decline sequentially throughout the year |
| And as we continue to scale, you’ll see that loss from operations decline, so cash loss declines |
| To break it down, R&D for the year was $106.9 million, a decline from $120.3 million in the previous fiscal year, primarily due to the conclusion of Revelar |
| Our expectations and beliefs regarding these matters may not materialize and actual results in financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected |
| If you look at the cadence here, gross margin, it seems like a more modest ramp, but your Q1 versus Q4 exit rate, I think implied numbers, your OpEx is going to step down, while your revenues are up from Q1 to Q2 -- Q4, I think are up like $10 million, and OpEx is down |
| But if you look at the components here, I think NGS is up like 50% implied by the guide, SynBio perhaps a little bit softer |
| SG&A for the year was $190 million and that’s a decline from $212.9 million which includes a $43 million reduction in stock-based compensation expense, offset by increases in pre-commercialization costs, facilities, payroll and IT-related service costs |
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