Twist Bioscience Corporation (TWST) Misses Q2 EPS by 1c, Revenues Beat; Raises FY21 Revenues Guidance Above Consensus

Twist Bioscience Corporation (NASDAQ: TWST) reported Q2 EPS of ($0.78), $0.01 worse than the analyst estimate of ($0.77). Revenue for the quarter came in at $31.2 million versus the consensus estimate of $28.32 million.

FISCAL 2021 SECOND QUARTER FINANCIAL RESULTS

• Orders: Total orders received for the second quarter of fiscal 2021 were $41.7 million, compared to $24.6 million for the same period of fiscal 2020.
• Revenue: Total revenues were $31.2 million for the second quarter of fiscal 2021 compared to $19.3 million for the same period of fiscal 2020.
• Cost of Revenues: Cost of revenues for the second quarter of fiscal 2021 was $19.0 million compared to $13.6 million for the same period of fiscal 2020.
• Research and Development Expenses: Research and development expenses for the second quarter of fiscal 2021 were $15.8 million compared to $10.6 million for the same period of fiscal 2020.
• Selling, General and Administrative Expenses: Selling, general and administrative expenses for the second quarter of fiscal 2021 were $34.4 million compared to $27.2 million for the same period of fiscal 2020.
• Net Loss: Net loss for the second quarter of fiscal 2021 was $37.9 million, or $0.78 per share, compared to $31.8 million, or $0.85 per share, for the second quarter of fiscal 2020.
• Cash Position: As of March 31, 2021, the company had $555.7 million in cash, cash equivalents and short-term investments.

“The second quarter of our fiscal year delivered growth across all four areas of our business, with increasing revenue and very strong orders building momentum for the second half of the year,” said Emily M. Leproust, Ph.D., CEO and co-founder of Twist Bioscience. “We signed new biopharma partnerships with multiple associated programs, and we continue to drive increasing density for our data storage vertical.

“For the second half of fiscal 2021 we expect continued growth of our NGS and synbio customer base as we build out the Factory of the Future in Oregon. We intend to advance all programs with our biopharma partners while simultaneously generating data to support out-licensing for our proprietary antibodies. In addition, for data storage, we will continue to pursue innovative engineering and collaborate across the DNA Data Storage Alliance to prepare the market for this novel storage medium.”

“We increased our margin to 39%, reflecting the impact of scaling our revenue, leveraging our fixed costs and the benefit of higher NGS product mix,” commented Jim Thorburn, CFO of Twist. “Importantly, the solid results demonstrate excellent execution across all teams at Twist.”

GUIDANCE:

Twist Bioscience Corporation sees FY2021 revenue of $121-129 million, versus the consensus of $120.21 million.

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

• Increasing revenue guidance in the range of $121 million to $129 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 $43 to $46 million
  • NGS revenue is estimated to be in the range of $62 to $66 million
  • Biopharma revenue is estimated to be approximately $5 million
• Gross margin is expected to be 36% to 38% for fiscal 2021
• Operating expenses including R&D and SG&A are expected to be $192 million for the year
• Net loss expected in the range of $144 million to $150 million to reflect our increased investments in our commercial organization and research and development activities
  • R&D is expected to be approximately $66 million
  • Stock-based compensation is expected to be approximately $33 million
  • Depreciation is expected to be $10 million
  • Capital expenditures are expected to be $40 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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