Q2 2021 Twist Bioscience Corp Earnings Call
[music].
Welcome to twist Bioscience fiscal 2021 second quarter financial results Conference call.
At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session you will need to price just start on the one key on you touched on telephone.
Please be advised that today's conference is being recorded.
I'd now like to turn the conference call over to Jim Thorburn, Chief Financial Officer.
Thank you operator.
Good afternoon, everyone I'd like to thank all of you for joining us today for twist Bioscience Conference call to review, our fiscal 2021 second quarter financial results and business progress.
We did issue our financial results.
Earlier this afternoon, which is available at our website at Www Dot twist Bioscience Dot com.
With me on today's call is Dr. Emily on the Prost CEO and co founder of twist Emily will begin with a review of our recent progress on twist businesses.
We'll report on our financial and operational performance.
Emily will discuss our upcoming milestones and direction.
We'll then open the call for questions. As a reminder, this call is being recorded.
Do you have a portion will be archived in the investors section of our website and will be available for two weeks.
During today's presentation.
We will make forward looking statements within the meaning of the U S Federal Securities laws.
Forward looking statements generally relate to future events or future financial or operating performance.
Expectations and beliefs regarding these matters may not materialize.
And actual results and financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
These risks include those set forth in the press release, we issued earlier today as well as those more fully described in on.
Thanks for the Securities on Exchange Commission.
The forward looking statements in this presentation are based on information available to us as of the date hereof and we cannot at this time predicting for links that of the impact on the COVID-19 pandemic, and any resulting business alright economic impact with.
We disclaim any obligation to update any forward looking statements, except as required by law.
That.
I'll now turn the call over to our Chief Executive Officer, and co founder Dr. Emily with Frost.
Thank you Jim and good afternoon, everyone moving.
The second quarter of fiscal 2021, we reported strong revenue and a robust order growth progress across both for area for business.
New and she is based upon on the storage.
While we remain in the pandemic Andy landscape for the building we see system is returning to the lab after receiving recognition on the accretable excitement around new applications of value.
And genomic technologies, including drug discovery, DNA liquid biopsy and minimal residual disease or <unk>.
We grew revenue to $31 to get it on for the quarter and increases.
For the second quarter of 2020 with strength coming from Boston value and it's across multiple industries.
Of note most of your Christopher non compete for a significant different digital for revenue, indicating growth and diversified strength.
In addition, we reported 41.
Aldo.
An increase of Switzerland goes on.
Third quarter of fiscal 2020 is strong for the remainder of school.
Now I'd like to dive into the growth of all four business segments.
Beginning with <unk>.
We reported $29 million from revenue result is coming in very strong at 20 million barrels for the quarter as we continue to expand on footprint in the market.
Growth was seen by business, where do you guys define our customer base and current mix.
We see more system.
Obviously, you didn't see an increase in revenue for from a religion framework.
Andy and interest as well because for now for early access ITG.
We booked revenue of $2 for me as.
For ginkgo in the second quarter, returning to a margin cadence for them.
<unk> continues to gain important for center for two weeks and we have one year remaining on a contract.
As we continue to grow and diversify our business, we expect that would account for less than 10 for something for revenue at some point in the near future that'd be cool now ordering less.
Simply because on a revenue from a broad based on <unk>.
On the Youtube continues to increase.
In fact yesterday, the entire control, but 6% of our revenue.
To support our growth we are ramping up should make on.
Thank you for your future in Portland, Oregon operationally in 2022 assets.
Thanks for the futures come online next year, we believe it will allow us to tap into just enough. When you bear Muni products very quickly for me Paul.
Next I have a huge Kona grill, you Didnt make you buy it.
In addition.
We don't support on all reputable we exercised our right of first refusal approximately double the Portland for each.
Need to plan for space approximately 18.
224 months net them.
And these additional square footage provides us with optionality.
The manufacturing space for product lines, including the storage.
Emerging applications for fall.
DNA sequence.
Technology platform.
Looking at the competitive landscape.
These are trends and success in driving synthesis at scale, we are seeing for the potential endpoints.
And some of you have asked about enzymatic synthesis companies' specific kidney.
And one on why don't <unk> synthesis holds much promise for less expensive and longer opinions on where to go.
<unk> commercially.
That said, we do believe that it is the metal that's one.
So let me address what I believe an indemnity company needs in order to be successful in all market segments of Vincent visits LNG.
For <unk>.
LNG is method.
The high credit and.
Enable to make long pieces of DNA, beginning low cost building blocks and error rates that are significantly lower than for somebody that chemistry and.
It needs to be a high speed of incorporation of business and no sequence specific enrollment.
To be truly green there should be logging solvent production of building blocks all day on somebody's.
It is critical that.
Methods corporate quality control and even more importantly, biosecurity screening for all the sequences.
Indeed, the gooseneck shouldnt be able to get a final DNA needed without needing to do the owner the owner on Q.
NIPSCO.
This is a tall order.
Let's be convinced that this is required on delivering perfect Jenny.
So heico's liquidity and interest one credit.
For the near for them, we believe the classics for some great tenancy remains with.
This is for the applications that we sell.
Turning to genomics and targeted NDA.
We reported 17, new on the lost revenue and 18, six new they're all getting older for the quarter.
Okay to work with an increasing our growth disconnect.
I'll take them into their products.
Key customer wins.
And on the screen you just don't know specific rethink a geography to geography, we believe Omar.
I'm sure we'll fall into distributions.
We don't share and just net addition of addiction and in February.
For the debate that.
Bad debt plays a key role in many biological processes, including cancer.
This worked offshore customers a complete workflow solution that can be quickly get tonight for.
Yes.
It includes new England.
Simpler preparation to get there with our private debt issuance system for a robust end to end workflow.
And already we're hearing positive results from Gibson.
We are committed to developing the most robust fixable submission for customers to ensure that they kind of on sungard.
The one we used it with this unique from each day.
Edition for par.
Sure.
From infusion system women's for <unk>, which makes your genomics and innovative company. The planting happens depends on Nigeria linked to new applications of genomics by adding different partner elaborate preparation.
Hello made solution for all system.
For a wide array of applications, while at the same time mitigating supply chain dependencies.
Third quarter to get together with Bioshock, we received emergency use authorization from the new fault block could be to next generation sequencing assay.
I see is the ability to analyze the entire R&D viral sequence of those losses could be too.
To determine the presence or absence of the virus as well as the researches only reported on IV.
The sequence you did take genetic volume and leading edges of south QB two.
While we are nothing for the pandemic, we believe sales could be to we'll be mentally for sometimes.
And new volume continues to accumulate moving.
Please.
It could be very important to enable our customers to routine sequin clinical samples and frac volume as the mix in.
Importantly, twist as an organization a great deal by Brian for and receiving the authorization relative.
<unk> management system and building relationships.
We guide for the development across our businesses.
We also launched several new sales its economy controls for.
While new volume of COVID-19.
The decline in Brazil, and South Africa.
Revenue from controlled wild on material has been consistent and semi custom upcoming two tweaks to buy controls.
Additional product.
Often M.
Yes, because some panel for this as a great source of new just enough for us.
For Biopharma, we reported $2 $6 million in Aldo and $1 3 million in revenue.
The revenue on it includes a portion of the upfront license fees associated with our partnerships as we recognize revenue for the course of each project.
We announced partnerships with simple innovative medicines accelerate though as well as <unk> and pure biology, and we now have 21 partners many of whom at multiple programs ongoing and twist.
Currently well advancing 25 active programs for <unk>.
Which as milestones and royalties associated with them.
An additional nine programs are complete and now in the hands of all cash.
On that.
We published our sales if you read the paper on twist compounds for Q1 on this quarter.
Even if you kept the accomplishment for the Biopharma.
As many of you know <unk> is a good value.
And we identify novel compounds from our GP and elaborate on this was the first in terms of I guess, we had them to demonstrate proof of concept for biopharmaceutical.
The publication details on preclinical results.
For panel of 13 Hyatt.
DLP one on targeting antagonist antibodies generated from as you can tell them right as well as on.
And Debbie <unk> for nine best too.
Is that all demonstrated power off line.
And I would elaborate.
Generally put on antibodies in a wide range of clinical indications for.
For it either a two day.
Cookies have been tested in a humanized tumor model.
We found the Tau antibody increased T cell proliferation in the channel and as a result.
Volume decreased.
Quite eager to see a twist on.
Each clinical trial.
We're seeing many paths forward.
We're working with multiple partners in multiple programs as well and sitting on it.
For these two advanced clinical stage for hotels on things, we have many shots on goal.
During the quarter.
The size on options to build sales towards the TCR library and for.
With integrity optimization software.
In corporate collaborations on the distributed value.
We began working with distributed value back in 2016 before.
On that existed.
Meg for two five levels each month, using our silicon based platform.
That created a robust.
February to benefit both our partners and our internal antibody discovery.
Moving to business storage.
We continue to make solid progress on our engineering roadmap driving to up to 100 per loss per terabyte.
Last quarter that we had the one micron chip.
In.
This quarter.
Team was able to synthesize 200 days only going at good times in 300 millimeter wheels on this one Mike on chip. This is a significant engineering accomplishments and further derisk, our pool should be any debt or storage well.
While there is still more work to do on the one micron chip. This is truly an exciting items and we remain engaged.
Engaged team to drive for increased density.
For the storage Alliance is about 29 member of strong and soon we'll be releasing a white paper on the state of <unk>.
The storage as well as opportunities ahead.
As we talk to potential uses of cash.
Storage civil Pretzels Onvia.
For the growing appreciation for on Alcon.
Rich.
Initially then it would be used as a supplemental debt is storage system to augment current storage capabilities.
Bookings for the alliance, we will ensure that all items do not just the vision that everyone on ready to conduct pilot studies wanted to solutions available.
Available.
Phil.
We found that trip for preservation, including TV and movie production archives.
And industry total debt.
Which required for a rigor that would be the reasons will be the first applications of DNA data storage. This is a very very large market and many of those opportunities quickly will be flowing.
At this time I'd like to turn the corner on go to Jim to review our financial results for the current.
Alright, Thank you Emily.
As Emily noted we continued to prove out the power of our platform and had another day robust quarter.
Revenue for the quarter was $31 2 million up sequentially, 11% and year over year, 62%.
Orders for 41 7 million.
Up sequentially by 24% and year over year, 69% gross margin for the second quarter was 39%.
From a ship to approximately 1700 customers on the quarter.
And 2100 customers year to date.
And we concluded the quarter with cash on short term investments of approximately $555 million.
Now I will provide more details on orders for the second quarter.
Orders for the second quarter were $18 6 million as compared to $16 7 million and on <unk>.
And at December 31st 2020.
That 90% year on year growth, which reflects increased adoption and increasing number of ags applications.
During the quarter. We also received orders from approximately 700 mgs customers on.
And customers with the top 10 accounts place Argos from approximately $8 million.
As we continue to expand the breadth of our customer footprint our pipeline for larger opportunities continues to scale and we're now tracking 170 accounts up from 160 accounts. We noted on our last earnings call.
65 for a adopted our platform and Thats, an increase from 59 last quarter.
Turning to <unk>.
I've seen by orders, which includes ginkgo.
James do you.
Perhaps IGT.
<unk> on all the good pools.
<unk> to $20 4 million in the second quarter, and that's up from $14 1 million in March 2020 quarter.
<unk> bio non Gainesville business continues to scale.
Orders rose to $16 3 million and that's representing sequential growth of approximately 34% and 46% year over year growth.
Which highlights for continuing to make progress in penetrating the market and expanding our portfolio.
Our genes business continues to be strong as total genes orders grew to approximately $15 7 million from $12 2 million on the previous quarter.
Non Gainesville genes orders for the quarter of $11 5 million and that's up from $8 7 million in the quarter, one with key segments contribute to our growth including pharma academic.
Just real segments.
All of the pools rose again in the Corp, $2 $4 million with strong order demand largely coming from a pickup in the academic segment and gene therapy applications.
Biopharma orders in the quarter were $2 6 million for antibody discovery activities.
As noted earlier, we have 21 partners for 25 active programs for 17 of which of milestones under our royalties.
In summary, we provide orders not to directly translate into revenue.
But to provide a trend line for each product growth.
We anticipate both Ngls and ginkgo orders will fluctuate quarter to quarter.
Now, let me cover our revenue for the quarter.
On revenue was 71 2 million on asset growth of six 2% year over year, a sequential increase of 11%.
And GFS product revenue climbed to $17 million for the quarter.
Share to $7 7 million for the same quarter in the prior year.
Year over year on growth as a profit of 120%.
Sequential growth of 10%.
Our syn <unk> product revenue for the quarter was $12 9 million.
It's up sequentially from $11 5 million last quarter.
Greece from $11 million in Q2 FY 'twenty.
Ginkgo revenue on the quarter was $2 four.
$4 million.
Our outlook for Ginkgo revenue remains the same as our previous guidance of $11 million to $12 million for the fiscal year.
Q2 genes revenue was $9 2 million essentially flat with Q1 and also flat with Q2 FY 'twenty.
During the quarter, we shipped approximately 90000 genes as compared to 84000 in the previous quarter with the growth in jeans, reflecting the success of our cone already gene fragments for sure launched in December 2020.
Genes revenue, excluding ginkgo was $6 8 million in the quarter as compared to $5 1 million in the same quarter last year.
Biopharma our revenue in the quarter was $1 $3 million on that reflects upfront services on our antibody discovery project activities, including planning screening on high throughput ITG purification.
Now quickly touching on the regions.
<unk> revenue was $18 6 million as compared to $12 1 million for the same period last year.
EMEA continues to grow strongly with corp to revenue of $10 million.
Versus $6 2 million in the same period last year in EMEA now accounts for approximately 32% of our worldwide business.
APAC revenue was $2 7 million versus <unk> 9 million and were seeing a strong rebound in Asia. This year.
In terms of.
Segments healthcare.
Our largest segment and accounts for 53% of our business with revenue up six points $16 6 million in quarter two.
And thats compared to $5 $8 million from Q2 last year industrial chemicals was $8 7 million in Q2 versus $7 5 million in Q2 FY 'twenty.
Academic revenue in fiscal Q2 was $5 6 million versus pipeline $5 million as we noted earlier, we saw strong orders picked up in the academic sector. This quarter.
Now moving down the P&L gross margin was $12 2 million.
<unk> nine percentage of revenue.
Compared to 30% in quarter two last year.
This increase in margin reflects the impact of scaling our revenue.
Leveraging our fixed costs on.
The benefit of higher mix of NGL products.
Our operating expenses, excluding the cost of revenues for the second quarter increased to approximately $52 million.
R&D for the quarter was $15 8 million compared to $10 6 million from the second quarter of FY, 'twenty and $14 million in quarter, one of FY 'twenty. One just a reminder in quarter one of this year.
We had $1 1 million of spend offset for I ARPA on a confidential program.
Major contributors to the year over year growth in R&D for one 4 million investment data storage $1 4 million investment in Biopharma on our core R&D increased by $1 1 million.
SG&A increased to $34 4 million from $28 8 million in quarter, one and that was primarily due to higher stock based comp and increased investment in our commercial organization.
Our loss from operations for the quarter was $58 million, an increase from <unk> $2 8 million in the first quarter and that's.
Primarily due to the growth from stock based compensation.
Yes.
Note the loss from operations in Q2 includes stock based comp.
$7 million and $2 4 million depreciation.
Capex was approximately $8 6 million in the quarter, which brings total year to date Capex was approximately $12 million.
We ended the quarter with cash and short term investments of approximately $555 million.
Yes.
Briefly provide an update to our financial guidance for fiscal 'twenty one.
We had a very robust stock for your fiscal year.
Meantime, there remains uncertainty associated with the pandemic.
Although we have successfully navigated many challenges.
The pandemic we are.
Experiencing headwinds from a key supplier for one of our products.
We are working actively to mitigate this although it does remain a concern.
We've seen strong orders in the quarter.
We are increasing our guidance from the prior guidance for 110 to 118 to 121 to 102009 for fiscal year 'twenty one.
Ginkgo revenue is estimated to be approximately $11 million to $12 million.
Non game for us and <unk> $43 million to $46 million.
And GFS revenue estimated to be 62 to 66 million.
And biopharma estimated to be approximately $5 million.
Our gross margin range for the year.
This space will be attached to 6%, it's actually eight as compared to Texas to detach, 4% on our last guidance.
Operating expense, which includes R&D and SG&A is expected to be approximately $192 million for the year as compared to $182 million in our prior guidance, which reflects higher.
The higher stock based comp charges and investment in our R&D and sales and marketing organizations to support growth in FY 'twenty two.
Our R&D guidance for the year was approximately $6 6 million up from 60 million on our last guidance and Thats due to additional investment in data storage and Biopharma investments.
Our net loss for the year is expected to be in the range for 140 for $250 million.
Stock based comp was on.
Included is <unk>.
Included is approximately 33 million and depreciation is $10 million.
Capex for the year is $40 million and that's up from $30 million, which includes 16 million on capex for our Portland expansion.
Due to equipment lead times being extended.
<unk> orders ahead of original plan.
In summary, we had a solid first half to fiscal 'twenty. One we increased our guidance for the year, Brian joined broad demand from our customer base on new products are being well received I don't want investing on our platform as we continue to tap into new revenue streams and was that on now.
Turn on the call back to Emily.
Thank you Jim.
In conclusion in the third.
So for fiscal year, we reported almost $60 million in revenue with strong momentum heading into the second half of the year looking for them for seen by you.
<unk> continued growth on diversification of our revenue stream continued commercial ramp for cleaner religion frame on DNA print as well as production ramp for IGT.
We also expect rollout for <unk> solutions to allow us to give for a specific multi site institutions.
And an ongoing preparation of infrastructural and software platform for factory of the future to enable strong growth in 2022 and beyond.
<unk>, Yes, we expect continued revenue growth and just from a ramping production.
For the addition of your line and continued corrosion impact for ways to twist for sequencing.
For Biopharma.
We intend to sign additional partnerships in that program with the majority generating milestones and royalties.
A competitive be complementary or none of the above at at the height higher level or is it just your business model attractive and how are you positioning for it.
Oh. Thank you that's [noise] that's a great question right now the the good day Street in model he's flow market that much of the total Jason 12, because it was a credit pieces are just not day or enough.
To to be in the market <unk>, <unk> and and it's in <unk>.
So for instance, I have a confession you can buy Ah nobody go for three cents.
On our website, whereas the distribution model what he goes at at 50, good I'll put what he goes so it's it's kind of a very different different product offering and then the crazy that we have we have extremely high cuisine. We can make sure. It goes up to 300 base bills. So at this point.
With what we see is that.
We don't have to demand from <unk>, we don't heal dement from <unk> to make D N a.
In the labs with with which we hear is you could want.
Hi, Kuwait T. They won't veilleux price and they want.
Let me think what are they will they will shoot at two two did you feel.
But sometimes <unk> you don't have the market on and all plugged for me, saying no seek to the chemistry and if there was a bit documents for you would be the happy.
Two deployed on all on Nope that book.
Oh, that's very helpful. Thank you and then for my follow up and I would like to ask a question on on on the guidance day increase it and on any gross margin is that does that for you to higher sheriff and just for his like like you too or is there something else driving they outside their thank you.
Yeah, no the the increase in cross margin guidance as to a higher share of M. G S plus withdrawn.
We've increased her overall guidance for 110 118 up to 120 wanted to 129, so what'll average hang on fixed costs. So it's a combination of increase revenue plus the higher range yes.
Thank you.
And our next question.
Chin coming from your line on Katherine shop for my Bank on line or something.
Yeah. This is Tom on for Catherine Thanks for taking the questions first one I touch on on a core academic customer it seems like for an <unk> for more to trans rather that activity levels and improve it I just wanted to get a sense for what you saw on a quarter and it's specifically if there's any geographic dynamics to call on.
Here Uhm, given we've heard U S is sort of lagged from recovery stanway here.
So good good question on the dynamics on a quarter for interesting January started off a little bit weaker I mean, if you go back to January would boxing and for all I was just starting as a corner progressed, we saw increasing orders so academic sector.
For a cover up significantly from previous Trans we had a good cartoon Asia revenue was up at 2.7 million. So almost three acts totally saw last year Europe is very strong. So we're we're doing well in all regions. The products are obviously.
<unk> being well received by a customers so number customers actually increase to two 1700, so over the last year customer basis girl on we're seeing steady increase in bookings named book things were over 41 million, which which just highlights the strength of the portfolio.
Healthcare was on the industrial biotech was doing extremely while what's the what's noticeable are doing well actually on ginkgo business. So we continue to brought on that platform.
Great Thanks, and a as a follow up I appreciate the color on expectations around some additional biopharma partnership seems like a funnel a strong just wanted to get a sense for expectations as to kind of development time items in budget. Just wondering you know if.
Those are fairly consistent to any sort of COVID-19 uncertainty at this point, if biopharma sort of operating and a new normal on you would expect those budgets to be fairly locked in at this point.
Yeah, just need in terms of Oh spending budget, though but the total cost of milk.
Yeah, the customer spending budgets as well as sort of their development time lines, but yeah. So so you're in both homa. We we made a big push you in that area that the the last few shoe quotas. Both of these day by us on the team that discovering W. On them to do anything then for.
I thought that was the you can see the the number on a spot nothing going on my Bill of a program is going so that that's being when <unk> <unk> and then we will have somebody to push them on seen by Ya vitamin C. L. I G. G product so as soon as we're doing really well in in farmer.
<unk> has been useful tools another it's been pretty bad for society has been useful because we we.
We do the on discovery program again, so quickly than we were able to show that not the knee, we can <unk> antibodies against how to drug targets, but Ah. So we can do today first and so basically the the the bill for me.
Cause we had enough for by a farmer is is a really strong and and day much in line with you need for.
So we can say that the the defendant is is is they they strong and.
And.
We supposed it could be like Tweetie, that's probably more mostly <unk>.
Then the headwind.
Our next question coming from the line can I tell Peterson with J P. Morgan Your line is open.
Hi, guys. This is Casey on for Tyco Uhm can you elaborate a little bit on the academic markets free bad given the luminous commentary and then maybe how that can share that upside to M. G. S numbers I know you guys raised you on G. S guidance for it during the for your guidance, but so I applied there from academic recovery.
Yeah. The academic thanks for was up I I would say roughly 20 per cent and in terms of orders, which which is good in terms of positioning as well for a second half the not significant in terms of impact on the end yet on the edge, yeah, well most of the.
Academic pick up released it although we don't break it out as as as send <unk>. The good news is it did pick up we didn't see a significant drop off on academic over the last year, but it's good early indicator recovery there and in terms of M. G M.
Yes was very strong first off in M. G S and yeah, we've updated guidance, even though we have one one supplier of that so that's for working with who's constrained in terms of providing is a product M. A in the short term, but we feel good in terms of where we're at.
<unk> strong orders.
Broad customer base adoption, and we believe that the the product I mean, the increasing number of a large cast working with those interest again and I would continue to be very optimistic M. Bullish in terms of where we can take the business we were.
As he probably saw we increase our investment in in Portland, and that's in anticipation of positioning ask for strong growth in 22 23.
Gotcha and then maybe just you know you've talked previously about how COVID-19 isn't really materials for the business I'm just wondering if anything's changed their regarding you know the new variance research into various spread and and so forth.
Yeah. Thank you [noise].
So we.
Where where students of the of design for as you May remember we.
No the yoga in March we we we don't shelf system could be test for N. G. S M <unk> too and they both scientist to read the pay of Uhm virus sequence you know to take science.
And I need to take to just 70 matches. So we we.
We had.
No sense did a year ago that that science will be important science at the most.
We [noise].
We have launched and you put it to control against anything that we have more than 15.
My M. Today Bill on the on the on that website and then on the M type of decide we've we've <unk> to put on for Ya, Oh, that'd be became different different line so definitely value.
<unk> is the stuff of mine.
And and we we we're offering or the two so just on those two two to help in in the detection mm mm.
A study of designs.
Gotcha. Thank you.
Non next question coming from the line B J come on with alcohol on your line is open.
Hey, guys suck that's on a good for interior and thanks for taking my question I had T questions. Jim Day, that's supply headwind that you mentioned.
Is that baked guidance Uhm, I guess I'm asking the question the other way without the supply had one with the revenue Guy had been higher.
VJ I'd love your questions. Yeah. There you supply had one is baked into the the guidance, we're working with a supplier we have a really good relationship was flyer. We're working this week to week and we will give an update on our next earnings call and yeah. We.
Had a very strong force half so I mean, when we were growing as rapidly as we are we we've been anticipating supply spy issues. We did increase our inventory on the last year. It's just it was seen significant increase in demand and we'll work it out and we did <unk>.
<unk> make it into the guidance and as we work on resolving it will give an update on the next earnings call.
Any I guess any way to quantify Jim I'm looking at for Injurious guidance you guys day at about 120 per cent growth for for this have the annual Guy Eddie high on that thing, it's baking a 50% growth so.
Perhaps is that is that where it's hitting you guys on the N. G S items in any like a quantifier.
Yeah, I mean on the on the address I that is in pine town for Andrea side, and although we did increase guidance you know it's it's it's we wanted to note that we we do have a headwind there we will give an update on the next area. It's called me and obviously working to resolve it.
And.
Keep you posted.
Gotcha, and then Emily one for you I I you know I I missed the park I think he made some comments on data storage, having reached an important milestone maybe if you could just simplify confirm sofa.
You know wherever you are you know towards the angle I think you guys have to get to a certain cost metrics ask for where we are on the journey and what was this update you know if you could flushes out that would be helpful.
Yeah, Yeah, if you could do it for you to.
So.
As you as you remember what the goal is to get to a price point of 100 off what's going on right and.
And so to do that we need to be able to make D. N. A at the at the hundred 50 Micron dimension on the city again.
So <unk> cancel my twist your microphone.
Last year, we proved that we were able to to shrink mm don't to 10 microns M.
And right now well we we.
Working on on the on the one my country and.
Let me rephrase, just one thing I M. You spoke to go to get to 150 nanometer. So we want to go to a Hunter scheme M me too for.
For right now.
We we've gone from 50 my from 210 Micron, we have the one micron chip in hen.
And the month, so that we achieve this this this quarter is that we were able to synthesize 200 based on what he goes on that ship.
And so maybe a few with on with the cheap looks like the the free choose on one micron for.
The way from each other on the pitch he's one micron and the dimension of the she chose is 300 nanometers.
For well and so it's quite an achievement to to get there. We believe that is there longer than a made on on just wanted to sit you on the seat of city can ego. So it's definitely bleeding edge.
I'm not finished with on one of my country.
A few more experiments so we have to do another funeral months only to reach around the speed of synthesis credit T.
Mm mm and cook, but definitely a huge debt pillows to be able to make 200 basically on what he goes on that that'll make space.
Once for them is the one microchip.
Guidance recognizing that they have been impacted.
We're working on resolving that and is a week to week issue, we're working on with our partner.
And who will give an update on the next earnings call, but we've had very strong growth.
Don't break it out into liquid biopsy, but I would just highlight the number of large customers for dealing with the need is.
<unk> increased again.
And.
We're now at 170.
With 65, having adopted.
So seeing really good strong trends in terms of NGL supply, we're seeing strong trends across all our businesses and it's nice to see the academic segment rebound, which is up roughly about 20% on orders and we.
We believe we're really well positioned for the second half of this year.
In addition to that.
So we increased our capex for <unk> for the.
The year.
That's in anticipation of ramping up Cortland next year.
And we did increase our footprint in Portland, we saw that as a very cost effective.
In fact of option for.
For expansion in the future.
Okay. That's very helpful. Thanks for raising debt.
In terms of.
The assets that are used in liquid biopsy just wanted to get into it you know in terms of getting specced into those assets.
Any early indications as to what sort of work.
Where you think those initial trials for headed how confident are you that you will get be getting specced into these assays as they reach into larger trials and potentially.
You know commercialized.
And then if I could ask also on on the Biopharma front.
You know.
Obviously, the generally the outsourcing trend is increasing here in discovery.
What's your.
What's your expectation here.
Sort of longer term in order to get involved in a larger number of trials and also if there is any.
In the near term do you do you expect any.
The trial enrolled at essentially getting into a phase one trial any updates there that would be super helpful. Thank you.
Yes. Thank you thank.
Thank you puneet.
So there is timing.
For the last question there on Biopharma.
Yeah I'll comment on is very stronger on Biopharma.
It's clear that day.
Interest in <unk>.
In what we offer on discovery and optimization.
<unk> antibodies.
For the human and human derived from.
On day one.
I'm sorry.
When will twist antibody go into clinic.
<unk>.
We don't have a timing on that because oh partner funding to do that.
As I mentioned on the call that with non programs.
Out of our hands, meaning debt.
That's another partner channel.
On the timing.
And so.
It's just a question of time.
<unk> is a new kidney book to be clear.
Our pump knows we'd be doing well.
We'd be doing the work.
In terms of the liquid biopsy.
Question.
We are just going to be.
Uh huh.
Number of for Us.
I think we both.
C products.
We can only talk publicly about grail, because they've mentioned using twist exclusively we cant just curious.
Some of the debt mentioned twist.
But we are in the past.
We have one.
More than our fair share of.
Bake offs.
And we can see in the revenues.
Coming quarter over quarter after quarter that those liquid biopsy companies Oh.
Building sales building DNA.
Two two to do their work a validating.
Our product line.
I see.
<unk> of a commercial launch so that's where we were.
Quite bullish on on the long term prospect of the NGL pipeline because as those products go commercial.
The truth.
Enabled us to get continued revenue revenue ramp.
I'm not showing any further questions at this time I would now like to turn the call back over to Emily Lee for any closing remarks.
Thank you for that metric right now so.
So we've had a very strong sales football she's called young with momentum moving into the remainder of the year.
We see that our products resonate with our system sales all addressable market continuing to expand we have the team in place to drive innovation and we hold on a comparable to execute aggressively look for to sharing with you on our progress.
In the months ahead on that I'd like to thank you very much for your time today.
Ladies and gentlemen that does from teleconference for today. Thank you for your participation you may now disconnect.
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