Twist Bioscience Corporation (TWST) Tops Q1 EPS by 2c, Revenues Beat; Offers FY21 Revenue Mid-Point Guidance Below Consensus

Twist Bioscience Corporation (NASDAQ: TWST) reported Q1 EPS of ($0.72), $0.02 better than the analyst estimate of ($0.74). Revenue for the quarter came in at $28.2 million versus the consensus estimate of $25.38 million.

FISCAL 2021 FIRST QUARTER FINANCIAL RESULTS

• Orders: Total orders received for the first quarter of fiscal 2021 were $33.6 million, compared to $24.8 million for the same period of fiscal 2020.
• Revenue: Total revenues were $28.2 million for the first quarter of fiscal 2021 compared to $17.2 million for the same period of fiscal 2020.
• Cost of Revenues: Cost of revenues for the first quarter of fiscal 2021 was $18.2 million compared to $13.8 million for the same period of fiscal 2020.
• Research and Development Expenses: Research and development expenses for the first quarter of fiscal 2021 were $14.0 million compared to $10.3 million for the same period of fiscal 2020.
• Selling, General and Administrative Expenses: Selling, general and administrative expenses for the first quarter of fiscal 2021 were $28.8 million compared to $26.4 million for the same period of fiscal 2020.
• Net Loss: Net loss for the first quarter of fiscal 2021 was $32.9 million, or $0.72 per share, compared to $55.6 million, or $1.69 per share, for the first quarter of fiscal 2020.
• Cash Position: As of December 31, 2020, the company had $587.3 million in cash, cash equivalents and short-term investments.

“We reported a strong quarter both for orders and revenue, building a solid foundation for fiscal 2021,” said Emily M. Leproust, Ph.D., CEO and co-founder of Twist Bioscience. “We see early evidence that our investment in synbio products for our pharmaceutical and biotech customers is beginning to gain traction, and for our NGS tools business, our liquid biopsy customers continue to drive revenue growth. Both our biopharma and DNA data storage teams made progress in advancing technologies, and we strengthened our balance sheet with $324 million through a recent equity offering.

“Looking ahead, we expect continued growth and diversification of our revenue stream as we build out our Factory of the Future as a second site in Oregon, continued focus on offering a business-to-business solution for multi-site institutions and a full launch of our NGS methylation solution. In addition, we anticipate out-licensing our first internally-generated antibodies and continued progress for our DNA data storage business.”

"We delivered another very strong quarter in what continues to be an uncertain environment due to the global pandemic,” commented Jim Thorburn, CFO of Twist. “We remain well positioned to leverage our DNA synthesis platform into growing market opportunities today as we plan for future success in the years ahead.”

GUIDANCE:

Twist Bioscience Corporation sees FY2021 revenue of $110-118 million, versus the consensus of $116.02 million.

For the full fiscal year 2021, Twist provided the following updated financial guidance:

• Maintaining revenue guidance in the range of $110 million to $118 million
  • Revenue from Ginkgo Bioworks expected to be in the range of $11 to $12 million
  • Synbio revenue excluding Ginkgo Bioworks is expected to be in the range of $41 to $44 million
  • NGS revenue is estimated to be in the range of $54 to $58 million
  • Biopharma revenue is estimated to be approximately $4 million
• Gross margin is expected to be 32% to 34% for fiscal 2021
• Operating expenses including R&D and SG&A are expected to be $182 million for the year
• Net loss expected in the range of $142 million to $147 million to reflect our increased investments in our commercial organization and research and development activities
  • R&D is expected to be approximately $60 million
  • Stock-based compensation is expected to be approximately $32 million
  • Depreciation is expected to be $9 million
  • Capital expenditures are expected to be $30 million, including expansion into “Factory of the Future”

For earnings history and earnings-related data on Twist Bioscience Corporation (TWST) click here.

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