Q1 2022 Twist Bioscience Corp Earnings Call

February 4, 2022

Welcome to twist Bioscience fiscal 2022 for our financial results Conference call. At this time, all participants are in a listen only mode.

After the speaker's presentation, there will an answer session to ask.

A question and answer session you will need to press star one on your telephone. Please be advised that today's conference is being recorded if you require.

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I would now like to turn the conference over to Angela bidding SVP of corporate Affairs, and Chief ESG Officer.

Thank you operator, good morning, everyone I would like to thank all of you for joining us today for twist Biosciences Conference call to review, our fiscal 2022 first quarter financial results and business progress.

We issued our financial results. This morning, which is available at our website www dot twist Bioscience Dot com.

With me on today's call are Dr. Emily <unk>, CEO and co founder of twist, and Jim Thorburn CFO of Twitter.

Emily will begin with a review of our recent progress on twist businesses, Jim will report on our financial and operational performance Emily will come back to discuss our upcoming milestones and direction and we will then open the call for questions.

We would ask that you limit your questions to a maximum of two and then re queue as a courtesy to others on the call.

As a reminder, this call is being recorded audio portion will be archived in the investors section of our website and will be available for two weeks.

During today's presentation, we will be making forward looking statements within the meaning of the U S Federal security laws.

Forward looking statements generally relate to future events or future financial or operating performance.

Our expectations and beliefs regarding these matters may not materialize and actual results and financial periods are subject to risks and uncertainties.

It 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 our filings with the Securities and 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 predict the full extent of the ongoing impact of the COVID-19, pandemic, and any resulting business or economic impact.

We disclaim any obligation to update any forward looking statements, except as required by law.

With that I will now turn the call over to our Chief Executive Officer, and co founder Dr. Emily <unk>.

Thank you Angela and good morning, everyone. We continued our momentum through the first quarter. If you could 2020 to report record revenue of fleet to me and then I'll ask Bill was audio signal at this stage for robust growth in 2022.

Our investment in new products.

The storage continues to accelerate innovation.

Got you.

Cool.

Beginning with <unk> I'm pleased to report record revenue of $8 million and orders of $22 2 million barrel. We shipped 125000 genes in the quarter, a new record for Chris and have increased our capacity to 65 machines come up with an eye towards.

90000 should come on.

Future.

The increased capacity allows us to accommodate both the ongoing demand as we work to bring to the future online.

<unk> revenues in order for the quarter with 19 continue on their own.

One 8 million barrel respectively.

Nci's revenue and orders were impacted by the timing of year to date.

At some point some of that.

Banco macro with strong growth projected for the remainder of fiscal quickly.

We have a great product offering the market look like the growth.

Our clients move from development to commercialization.

A bit more color I'd like to dive into two opportunities we see.

<unk> thousand two NPL midyear.

Great.

Market research estimates would be 19% announced a 2025.

When we do that developer.

Liquid biopsy test.

We estimate that the DNA portion is accrued so might you be Francesca cocco market.

We want them to be and then all the serviceable market.

Our liquid biopsy tests.

Bias disease.

Bore in their own drive to a commercialization, earning value of Twitter Clark.

Im just trying to create compelling products.

Those are completed the design and Brexit condition.

Using our <unk> product.

Clinical studies and a few already commercial.

At the clinical trial and commercial could you each patient samples.

Some.

Unit.

Two of them ended up Brian to commercialization and around the commercial because of your engineers for these increases proportionately.

Once it gets there.

From the U S and nutrition components of the test for the foreseeable future and changing the coker is difficult.

This kitchen of extremely.

To get to the <unk> now we're currently working with more than 20 companies.

Many of these customers you saw Moody's inclusive Luke segmentation.

In addition, we introduced circulating tumor DNA referenced which made clearly important forwarding chewning cure cancer detection.

We believe that developing and standardizing interest sensitive accurate.

As is common.

To ensure there isn't seasonality.

Informed clinical decisions reliably.

Yes.

As the test come to market.

Ultimate landscape clear Luka <unk>.

That's a tremendous upside for us.

And I was looking market, where we see things that kind of opportunity.

Anymore.

All MLD.

And all the assays are used to determine if cancer treatments are working to chegg for reconquered Gainesville and to guide fiscal treatment then.

Hey, Bob.

How are you.

For blood cancers, with our many test and development portfolio.

Concludes your predictions.

There are three ways that we work with.

And this reputation.

So we'll look at sequencing, where we provide the level of production.

Is straightforward and again immigration needs a library preparation.

One is where there is a universal covenant for all patients.

You may now could equal the assay.

The third way, we can work with them to get them out.

Either you're where every patient gets their own co primer.

While it is difficult for others to visco panel that specific dislocation Joseph.

80% of all Mds driven.

So just to make something well do it at a reasonable cost.

These are just two opportunities we see for growth in 2022 and beyond.

<unk> with Citigroup.

Product in the December and January timeframe that we believe will contribute.

Q2 growth.

Good morning.

Industry and content and government.

The 96 plus level of progression Keith a twisty quite a version of the product we acquired from high genomics that we believe will drive the conversion of Macquarie to twist.

And then Robert Kenny Nicole.

Hello, This is unreasonable.

With applications, notably in veterinary medicine, good Earth, no human health as well.

<unk> four turns to how disease rheumatoid and <unk> solutions.

We have seen onshore microbiome control.

So record for on time and critically important for the research yes COVID-19 .

<unk>.

Importantly, we have three separate microcontroller, which include the sale or micron volume.

Most recently in the United States and most of your growth.

Moving to Biopharma.

We closed the acquisition at very early time Bill.

Integration is going well.

The external perspective, we expect them to continue to operate relatively separately and relatively crude unit for Canada Goose.

Which will allow for a thoughtful and non disruptive integration.

Whereas the comfort PCB equipment your targets.

At that point in time.

Moving into 2023, we expect the combined offering will be the most comprehensive discovery platform in the industry, we sympathy in vivo in AI based tools to identify and that's nice.

Against a wide range of content.

We reported revenue of $4 8 million, the rest of the quarter and $5 $6 million, which includes one month of Adair.

In the fourth quarter, we had.

In eight new partner for crude by pharma.

42 partners in global initiatives 21, new programs with 52 active programs and growing at the end of the third quarter, we completed seven program during the quarter.

Total of 39 complete program for <unk> Biopharma.

91 total activity program.

50 of milestone and royalty.

An increase of six new programs with downstream economics.

During the third quarter fiscal 2020.

It varies.

72 projects underway, which as a reminder, our fee for service and typically takes three to six months to complete.

We recently announced the collaboration with Amgen for discovery around antibodies for diagnostic and such applications. This is a robust partnership that provides license fees and commercial milestone payments.

With line of collaborations with Cowen.

We discovered the Gpcs and.

In RPM.

We have next generation therapeutics.

In addition to our work for partners.

Published data detailing our Kirby that type of development in the peer reviewed journal Matt.

And really a lot based therapeutics.

At least a preprint paper showing that the bispecific antibody license from us.

803.

It is both micron and Elpida Alliance with South Korea.

By specific.

It's all in the environment of confirm today.

And I expect to submit an IND.

To begin clinical studies.

<unk>.

We call that regular was launched by tweaking the number 2021 and license the twist Biopharma discovery could antibodies, including <unk>, we are a little tricky.

Thank goodness.

<unk> for the achievement of key development rigorous.

And commercial milestones as well as mid single digit royalties on any future net sales of <unk>.

Alright, great.

We are committed to.

<unk> ended up being an issue for me.

You should remember that can enter into additional lease the program directly that none could be targets over the course of the next four years.

Each program subject to additional milestone payments and royalties.

Okay.

For the courage, we know that lithium metal.

Treatment.

It will be a couple market expected to reach 60% to 80% of the total storage market.

Yeah, but.

One just about the price of that storage was shipped and estimates show that by 2030. This enterprise.

Ship is expected to grow to 20 to 32 right now.

But Glenn could you estimate in this decade.

Be 10 to 30 times growth in the Americas divest originated.

The current technology is still better hard drive.

<unk> and tape.

Just not able to scale to this level.

These are huge cultural institutions and in our view.

And is the only technology that promises to scale feature of America.

In January we announced our first solution would be essentially archive, enabling story storage of data for 100 view, resulting in migration and LG all maintenance needed.

Product is not available from any provider.

Archived data currently.

With you on the five seven year timeframe.

Yeah.

Moving to the technology roadmap, we expect that our mix it will be a revenue raising poultry.

These chips.

The targeted sale of BNS storage capability.

Those are appropriate.

<unk> chip.

For the century archive.

To go through the rest of the service.

And we will share additional details as we refine our product offerings.

Looking further into the future as or with bank long term, even as we exit to debate. It we know that Hyperscale and.

Enterprise class storage and that it will have to run within their facility.

While these market the tentative as other chemicals.

And we likely need and at the center.

Is it.

When we began leucoline could be available options for enzymatic synthesis, we find that the hurdle to overcome.

Besides <unk>.

To sum it up Tonight.

One issue that.

This is offering today are very extensive.

Indeed other approaches to make.

Using enzymes.

1000 times more expensive than buying or to go on our website.

There are two reasons for that Heiko.

And then I think synthesis requires nucleoside triphosphate, which is a very expensive region.

The second issue is basically issue.

Constance health.

That's the high concentration of NPV is required for each base to be adding.

Using enzymatic synthesis.

So looking at the Mtp's extensive with a large excess of them as needed.

Connecticut Shannon's alternatives they look the chemistry.

One MCP, one enzyme which massively reduces the cost.

Now we have a local center might be extended method.

But there is an additional program problem created by linking the MTB to the enzyme that we need to navigate.

And that program is that it.

<unk> the pivotal the entry to the enzyme typically creates this call when the ACG.

Sure.

But over time as the call's accumulate.

Enzyme could handle materials.

Incentives and stuff.

Limiting the length of lingering interbank.

<unk>.

Cow Nathan.

Before which may create issues in downstream applications.

At twist welcoming these challenged by developing a unique and innovative.

Way to tell them.

It provides its current SG&A that is identical to the <unk>.

So now with an extensive process that is Luca Scarlet and finally.

The ability to develop and perfect. The enzyme quickly because we have built an MGA platform to screen hundreds of thousands of students at the same time.

That means that we can engineer accuracy faster and we can cover the IP space.

Because we have already tested more sequences.

While we are quite excited about our new approach today, we use chemical synthesis for all of our products and we do not see that changing anytime soon.

<unk> chemical synthesis, we remain instrumental as we continue to see billions of basis three year targets of customer.

We also believe and then I think that it would be useful in enterprise offering for storage, increasing new product line for our core business like cell based synthesis of DNA and decentralized synthesis.

But do not have to develop all of those applications also we are happy to OEM market.

I mean product consisting of the twist is that as we grow we will not lose our spirit of innovation. We are students of the market, we will always be exhibiting while we work to perfect. Our next innovation to continue to drive the future.

And I think that this is a perfect example of our culture of innovation.

Good question.

Now I'd like to turn it over to Jim to review our financials.

Alright. Thank you Emily we started off fiscal 2018 on a strong note as we continue to scale our platform.

Revenue for quarter, one was $42 million, which is a sequential growth of 11% and year over year growth of plus 9%.

Orders were $49 6 million for the quarter, a sequential increase of 10% and 48% year over year growth.

Gross margin for the first quarter was 35, 6%.

We shipped approximately 800 customers for the quarter and Thats up from 1500 in the first quarter of fiscal 'twenty one.

We ended the quarter with cash and investments of approximately $409 million.

Now I'll give some more color on orders.

<unk> for the first quarter were $21 8 million, which is an increase of 28% year over year.

During the quarter, we received orders from approximately 700 mgs customers.

Tanner cast place orders of approximately $7 million as compared to approximately $10 million for the top 10 in the previous quarter.

We're seeing continued diversification of our customer footprint.

Pipeline for larger opportunities continues to scale.

Tracking 225 accounts up from 119 90, we noted that last earnings call.

In quarter, 196% of adopted twist and Thats, an increase from 88 last quarter. This growth reinforces the robust and growing market off the changing.

Finding portfolio investments in our commercial organization, expanding our customer base with increased adoption of mgs applications, including liquid biopsy, MRV diagnostics RNA controls and clinical applications.

Turning to send <unk>.

We saw robust growth in our standby orders which includes genes.

Perhaps.

G live base and all of the pools.

Orders rose $22 2 million in the first quarter up from $20 1 million in the fourth quarter of fiscal 'twenty one.

Sequential growth of 10% and up approximately 40% from $15 9 million in the fourth quarter of fiscal 'twenty one.

The major contributor to growth as the industrial segment sector will healthcare and academia were also very strong in a quarter.

Now to Biopharma.

We continue to scale, our biopharma business, including in Paris as orders rose to $5 6 million for the first quarter and that's up from $3 4 million in quarter, four compared to $1 million in the first quarter of fiscal 'twenty one.

For our twist Biopharma antibody platform will flex to partners with 52 active programs.

We now have 50 milestone and royalty programs and Thats up from 75 in the last quarter.

Please note orders may not translate into revenue, but provide a trend line for each product group.

I am moving from August to revenue revenue for the first quarter was $42 million, representing approximately 49% growth for me $28 2 million in the first quarter of fiscal 'twenty one.

<unk> product revenue was $19 2 million in the first quarter 'twenty, two and that's 23% growth year over year in.

In quarter, one fiscal 'twenty, two top 20 customers accounted for approximately 44% of <unk> revenue.

Our <unk> product revenue for the quarter was approximately $18 million upfront caffeine dollars 9 million in the same quarter of fiscal 'twenty. One some of the highlights include shipping to approximately 500 <unk> customers in the quarter genes revenue was $13 5 million up from $8 9 million in the first quarter of fiscal 'twenty one.

We shipped approximately 125000 genes.

<unk> Biopharma, our revenue for the quarter was approximately $4 $8 million, which includes one month of it.

Yes.

I will now cover our revenue breakdown by industry <unk>.

Care revenue in quarter, one was $21 million up from $16 million in the first quarter of fiscal 'twenty, one industrial chemicals was $12 5 million versus $7 1 million in the first quarter of fiscal 'twenty one.

Even though our operating in the pandemic.

Many academic labs were impacted globally, our academic revenue was $7 9 million versus $4 9 million in Q1, 'twenty, one reflecting our continued focus on growing our long tail lines.

Cultural revenue was $4 6 million versus zero point $2 million in the first quarter of fiscal 'twenty one.

I will now briefly cover our regional progress for first quarter fiscal 'twenty two.

<unk> and building out our global commercial organization is reflected in the strong international growth EMEA had a great start to the year with first quarter revenue was $15 4 million versus $9 1 million in the first quarter of fiscal 'twenty, one APAC had a terrific quarter, one with revenue of $4 million up from $1 eight.

For the first quarter of fiscal 2011.

U S, which includes Americas revenue was $22 6 million in the first quarter of fiscal 'twenty two versus $17 3 million the same period of fiscal 'twenty one.

Now moving down the P&L.

Gross margin for the quarter was approximately $15 million, that's a five 6% of revenue versus 35, 5% in quarter, one fiscal 'twenty one our gross margin. This quarter was influenced by a combination of the production challenges we highlighted in our previous call and higher mix of <unk> products.

Operating expenses.

Tier one operating expense, which includes R&D SG&A and change in fair value of acquisitions of approximately $71 million.

R&D for the quarter was $22 6 million, an increase from $19 4 million in quarter, four primarily due to increased biopharma spend associated with the rigor and the various.

Acquisition.

Our SG&A costs in quarter, one was $51 1 million as compared to $38 2 million in quarter four due to increase in stock based comp of approximately $9 million.

And fair volume contingent considerations on them just to hold backs for the quarter resulted in a gain of $2 8 million.

Stock based compensation for the quarter was $18 1 million up from $9 2 million in quarter four.

A combination of annual stock grants.

Acquisition.

Depreciation was $2 8 million for quarter one.

Net loss before tax was approximately $56 million as compared to $40 9 million for quarter four primarily due to the aforementioned increases in operating expenses.

Our stock based compensation and costs associated with <unk>.

Quarter, one we recorded a tax gain of $10 million associated with the various transaction, which brings our loss after taxes of approximately $46 million.

Capex for the quarter was $22 million, mostly associated with a fraction of the future investments.

Given the global supply chain challenges, we have strategically increased our inventory to $14 million compared just thats a $2 million at the end of fiscal 'twenty one.

We ended the quarter with cash and investments of approximately $490 million.

I'll now provide updated financial guidance for fiscal 'twenty, two as we noted quarter. One bookings were strong and were optimistic in our opportunities on the same time, there remains uncertainty associated with the pandemic.

For the year 'twenty, two we are increasing our revenue guidance.

189 to 119 8 million and that's up from our previous guidance of $183 million to $193 million.

<unk> revenue is estimated in the range of $70 million to $72 million.

Care to 67% to $70 million in our previous guidance.

<unk> revenue is estimated to be in the range of $94 million to $96 million as we are projecting strong second half based on our increased pipeline production scaling.

Biopharma revenue, including the <unk> acquisition is estimated to be in the range of approximately $25 million to $30 million.

Care to previous guidance of $22 million to $27 million.

There is no change in our projected FY 'twenty two gross margin guidance in the range of 75 to <unk>, 7%, which reflects costs associated with our Portland, Brian exclude.

Excluding these costs gross margin guidance, we'd be fortitude plus 4%.

Operating expenses, which includes R&D and SG&A are expected to be approximately $375 million per year, including $130 million R&D expenses as we previously guided.

Our net loss guidance for the year will be approximately $260 million.

Stock based compensation for the year is projected to be approximately 74 million. This increase from our last projection of $47 million, primarily due to the boss acquisition.

Depreciation is projected to be at $14 million.

Our projected capex for FY 'twenty, two continues to be $18 million to $19 million, including $75 million for our factory at future investments in the Portland area.

In summary, I would like to welcome all of the various team aboard and thank all the twisters for delivering another terrific quarter of record growth as we continued to execute our strategy.

With that I'll turn the call back to Emily.

Thank you Jim.

Looking ahead, we have amazing opportunities across each area of our business to both grow revenue and expand the markets we serve.

In <unk>, we plan to continue to build our business and extend our customer base.

Remain focused on bringing up the factory of the future to reduce overall turnaround time, especially for gene.

And we just want to state that we have we expect to be able to launch new products and helping us to address new markets with some of those products are showing the potential of increased margins.

On NCS, we believe our serviceable market is growing and could extend.

I think Anthony as deeply boats and rvs is from our customer reached equivalent Shaw marketplace, which we expect will expand our revenue base accordingly.

In addition, we aimed to own the space between discomfort and sequencing.

We'll continue to grow our customer base, and Quickbooks and MLB, Yes, I think R&D and library preparation products and driving with Macquarie consumption now that we have launched the 19th.

February .

Gary Harmon.

Regulatory approvals, we expect to have the first covenant that begins.

Through <unk> at all.

And what are you gonna integration of tweaking. It varies we believe that we have a greater bookings to ramp third year.

And right size, our platform SKU weakening system of cross selling additional partnerships outlet sensing and advancing our internal pipeline.

I think that the storage, we have a roadmap to reach the terabyte scale of DNA storage offering.

Alfred Chip <unk>.

We have reduced the century archive solution and we continue to drive going into Christmas courage.

Okay.

Finally, I would like to mention that we issued our fifth we spoke at the end of January and you can't find it.

Extreme.

We're extremely pleased to share our thoughts.

Okay.

With that let the call for questions.

Operator.

Thank you as a reminder to ask a question you will need to press star one of your telephone to withdraw your question press the pound key.

We ask that you please limit yourself to one question and one follow up.

Please standby, while we compile the Q&A roster.

Our first question comes from Ken.

<unk> with Baird. Your line is open.

Hey, everyone. Thanks for the questions.

I guess first maybe on the enzymatic synthesis platform can you just talk through the path forward there.

Net milestones or update should we be expecting thank you.

'twenty two.

And it sounds like you might not be set on developing your own instrument, there, but rather work with a partner or license out your chemistry at what point do you think the chemistry.

And Betty.

Let's start with our partner conversations.

Yes. Thank you again, thanks for the question.

So the emphasis initially thought.

Synthesis.

The development was.

Our roadmap for the storage.

The first product that we're going to launch it with century archive.

John .

Storage as a service.

In our roadmap.

In future generation.

We know that we do.

Need to develop an enterprise version of <unk> that the storage and let the enterprise would be use the April scioto in their facility and there we won't be able to use.

The arch chemicals chemical synthesis, therefore full IP.

Hyperscale and enterprise storage, we need enzymatic synthesis and then we.

Probably we will do the development.

<unk>.

We will develop.

Our own hardware.

That's what's full estimating synthesis.

In a decentralized manner at least for the storage.

We have not closed the door.

Market has to do with Alto.

Although we do believe in being disciplined and focused on what we do and so that means that for all the markets.

It could be done we spot nodes or it could be also but we have not closed any deals we've created optionality.

Same time.

Very strong.

Internal roadmap for.

<unk> on the NCS.

<unk>.

And as we develop the enzymatic synthes approach and we get through the lens of error rates that we want.

As we launch new products internally.

We will have a choice and at the time, which was which is the best.

On technology to probe.

Does the product at the time.

Okay got it and then maybe for and yet we get a lot of questions on pricing.

And with that product and you talked a lot about liquid biopsy today.

There.

Average pricing when it comes to liquid biopsy customers.

Sure.

Pricing per sample very poor.

Panel versus an ecmo and so on and then deer methylation panels.

Different pricing.

So, yes pricing is a little bit.

Complex and just just because.

Many different combination of the product in general the more probe in the panel.

More expensive it yet.

Do you have a panel that has.

A million probes.

222.

Barry.

Wide.

Analysis of different genes that would be more expensive if you have a narrower panel.

50000 probes.

And then the pricing.

So sample.

Goes down as the number of <unk> samples goes up and so you buy a.

Panel that would capture a thousand patient.

The price would be.

Would be higher than the fleet.

And although that will be.

And be able to get a million.

So those are the two components.

In addition, so that's what the DNA. In addition, there is.

Elaborate Craig Cook, and so depending on where the customer chooses twist.

The <unk> the <unk> the beads.

At the enzyme.

The additional.

Cost in general.

We tend to incentivize.

Just enough to bundle and so.

It always is to drive revenue.

And margin.

So yes it is.

It is.

Relatively.

The complex.

The metrics that being said in general.

Tried to.

We.

Aim is that the.

The twist codecs from from a liquid.

<unk> revenue.

Point of view is about 5% to 10%.

<unk>.

With the liquid biopsy market is.

Liquidity that gives you a little bit of a <unk>.

<unk>.

The the revenue that we are targeting.

The accretion in liquid biopsy.

Thank you. Our next question comes from Tycho Peterson with Jpmorgan. Your line is open.

Hi, guys. This is Casey on for Tycho.

So it looks like EMEA had a strong quarter of growth can you talk a little bit about where the strength came from in that region and the growth there is sustainable.

Yes.

Sorry, I was on mute there, yes, so sorry, if I missed your question. There there was alignment went fuzzy domains.

Repeat the question.

Yes, yes, so EMEA it looks like it had a strong quarter growth can you talk a little bit about where the strength came from in that region and that growth is sustainable.

Yes, no the growth.

EMEA continues to sequential growth.

Every quarter, we've invested heavily on commercial organization EMEA delivering.

Delivering on some sym bio large pharma.

We're seeing opportunity.

Biopharma antibodies as well.

EMEA is doing exceptionally well and Ngls were seeing across all of our key.

And that would be Germany.

As in Netherlands.

Nardi exiting in the UK as well.

And so there's a couple of drivers.

Product quality.

With strong customer support.

Commercial.

Capabilities of our team in Europe . So we're really pleased with what's happening in Europe , and we see significant opportunity to do.

To continue our growth in Europe .

Okay got you and then just on the cash rent guide here are there any supply chain or inflationary headwinds that are baked in there.

Maybe what are some sources of upside here as we progress through the year.

Yes.

Supply chain is going well.

Sorry inventory.

We continue to manage that very aggressively.

A fantastic operations and purchasing team have worked well.

Our partners.

I mean, obviously, it's there's.

A lot of work.

Keeping on top of it.

If we go back to the beginning of the pandemic, we continue to invest in our inventory.

<unk> increased that to $40 million.

In terms of going forward.

We see plenty of opportunity for up sites in bio is extremely strong.

As Emily highlighted we are seeing opportunities of mgs liquid biopsy.

Good to see the number of large.

<unk> customers the pipeline continues to grow.

We continue to see significant growth opportunities not only in EMEA, but we see opportunities in APAC.

<unk> genomics upside coming as.

As we see more opportunities from microwave to Ngls conversion.

<unk> is doing extremely well.

The.

Team there is fantastic.

First month this quarter is looking good.

Optimistic and bullish on the outlook there.

Thank you. Our next question comes from Puneet <unk> with SBB Leerink. Your line is open.

Yes, Hi, Emily and Jim Thanks for taking the questions. So first one is really around the quarter. I mean, you delivered strong liens and sym bio but NGL.

<unk> was impacted by <unk> as you mentioned, so I just want to make sure that the production challenges that you had for the quarter.

We're all for the last quarter are all resolved if you could confirm that and.

If you can clarify what was the catch up and send buyout there.

And what are you currently seeing among the labs.

Especially the academic labs, returning back and overall NGL volumes currently and then I have a follow up on guidance.

Maybe.

A production issue and Jim can and so the <unk> part of the question.

So yes, the production issue.

Is is behind us.

In terms of.

Identification and resolution of the problem.

And shipping out all the backlog.

That may have been created by the pollution issue again.

Custom of naval goods, indeed by products, because the debt that you see that.

Some of the genes we had to be make.

So some some kits to Mount the extent some delay.

Again a clarification.

The production issue with only.

Limited to two gene production, so it did not impact NGL hurdle.

So we're quite pleased with the number of genes that we shipped last quarter on the 25000 genes.

That's a record and we had strong audience and value.

Yes.

Anthony.

Orders were very strong in <unk>.

With $22 million of artists and vital up sequentially.

We're seeing strong demand from an increase in customer base.

So we've got.

Wind in our sales in <unk> terms of Ngls, we had.

Almost $22 million in the quarter.

And Thats thats flat with quarter four.

Quarter, four September quarter tends to be strong business LNG gas.

We feel very good about the outlook for <unk> in terms of $94 million to $96 million.

That said the number of customers large customers continues to scale.

Adoption increases.

We're continuing to launch more products, we get by genomics opportunities coming ahead.

So I think the.

Setup for Ngls looks very good plus.

Go back to send bio.

We have a very strong June shipments, we shipped a 125000 genes that's one of our strongest quarters ever.

We've got the production issues behind us we've increased capacity and genes, we're getting set up to.

Open up port loans in July .

But that also gives us.

More capability.

And position us to have a really strong fiscal 'twenty three.

Okay, that's great and then.

On the guide.

Appreciate the guide raise appears to be about $6 5 million at the midpoint.

Including <unk>.

<unk> and it seems that about half of that is offset by our other half is on biopharma.

Your <unk> guide remains the same so just given the <unk>.

A number of comments that you've made throughout the call for liquid biopsy <unk> D. A.

A number of other products overall, just given the momentum you're sort of seeing in Ngls NGL guide does it still flat for the year. So just wanted to clarify if what I'm missing there and just wanted to make sure that we're capturing that as this just sort of a near term conservatism with omicron, we're just <unk>.

<unk> out of that or is there more to this and if you could clarify thanks.

So a couple of couple of bias near term conservatism.

Secondly, we're getting set up for very strong second half on Ngls.

Driven by adoption.

The growth in the customer base.

Just our outlook in terms, where we see the market growing.

So you just step back and look at the numbers.

We build about $19 million.

First quarter, and we're seeing significant step up from that as well.

Request for quarter, three and quarter four.

Thank you. Our next question comes from Sergey <unk> with Barclays. Your line is open.

Good morning, everybody. Thanks for.

Thanks for the question excuse me.

I just wanted to get a clarification to get an idea of how youre thinking about when you're going from you were at 40000 genes for months now you're at 65, and then Youre going to 90 in the near future can you give us a.

How should we think about that rolling through.

The revenue I mean, youre not seeing that type of step up implied in the guide.

Just kind of the dynamics there and then if you could give any clarification on near future that'd be helpful.

Yes. Thank you great question.

So the impetus for the increase.

Yeah.

Capacity.

Is to be able to.

Kept shoe search diamonds.

We have two types of customers that have the big Big accounts and then we have.

The the long term.

A few genes at a time.

<unk>.

So.

Last quarter, we had with.

125000 genes shipped and so.

In theory with 45000 gene capacity per months, we can do it however, depending on when those genes come in.

We also need to be able to get through the system and so.

By increasing.

The capacity that means that the.

James maybe the highest weight as soon as they hit the website for the next day they.

They can go online.

Firstly the sales demand.

And then the second is gives us a little bit of protection from what happened.

In.

August .

In a small way in October where we had a problem in the fab.

And.

When the fab is full and yes, we make some genes.

It's very hard to get sure because the fab is full you have margins coming in you have to remake and so.

It takes a lot longer to be clear, though from something thats relatively.

Simple to fix and so by being extra capacity is.

If we have an issue in the fab, where we have gone forward deal too.

It becomes completely transparent to the customer because we have additional capacity to just catch up.

That's really the impetus.

Yes.

And over time as we keep delivering.

We capture more market, we're growing at about twice the twice the rate of the market. So we're going to grow into that capacity.

And so the capacity of the effects of the future is going to be important for us.

In addition in the future will have new product features such as increased speed.

Enabled us to.

Two.

Increase.

<unk>.

Price of the product at about the same cost and so we get good.

Margin. So that's really why we're doing it.

Okay. That's helpful.

And then lastly, you guys have been signing a bunch of deals you can get one with Afghan recent most recently you have some of the artisan to do the next cell.

X generation cell therapy. So can you give us a sense of or update us on any expected milestones of kind of the pacing throughout the year.

Anything from any of the Biopharma partnerships other than I understand the guide, but any particular programs that stand out that we need to keep our bonds.

And then the.

Wichita Falls.

Is.

From the deal unless we get upfront payment because you're good at pace will be paid to below 50%, 60% margins. So it's great but.

As you suggest the majority of the economic value is actually in the milestones and royalties and so what we've been doing is banking and <unk> royalties last quarter out of.

<unk> won new programs 15 of them and my sense of royalty so that is great.

Sure.

Timing.

It is uncertain, we do our work in about six months.

And then you can take.

It can take.

18 to 24 months for our partners to go to Andy that will start where we can stumped predicting some milestones so we.

We know it will have been difficult to guide.

I'll point out that that outcome is an especially good.

Ill exciting deal for us because it's not in the therapeutics area. Its momentum in the research area of diagnostics and so that means that the potentials for milestones and royalty is a lot faster to happen there.

Then a therapeutic deal.

And so.

That was the.

And especially.

Strategic one for us.

And the last thing I'd say is that we differently.

Working how to coax.

Our partner to be able to be more public about the types of deal we are making.

The.

For instance, we were quite successful with Boehringer ingelheim.

We were able to describe.

The 710 million donuts of milestones that that.

We can have with them.

So we want to make more of those.

Disclosures, but unfortunately, we need.

Cooperations of the partners.

With.

Meaning to do that.

Do you have the data.

We are thinking those milestones aren't realty.

And.

<unk>.

We are quite excited the perfect.

Starting to be seeding.

Some of them.

Yes.

Thank you. Our next question comes from Mac Sykes with Goldman Sachs. Your line is open.

Hi, good morning, Thanks for taking my questions maybe on the lines of.

Thanks last question.

Just on the on the Biopharma I'm, just curious from a high level Emily as you talked about it early stages. The conversations you were having from an economic standpoint, we're in it's beneficial because you are still trying to prove out.

Your capabilities, but now you've gained a lot of momentum you signed a number of new collaborations and agreements I'm just wondering how the nature of the conversations have changed.

Not just from an economic standpoint, but perhaps folks coming to you as.

As the word gets out in terms of your capabilities and how you see that business in terms of growth trajectory today versus what you might have imagined it would have been a few years ago.

Yes.

It's quite.

Quite exciting.

The change.

A few years ago, we were very risky bet.

And.

Really.

Most likely we will get from small companies that were leaking leaking fully bleeding edge advantage.

Yes.

However, now that we have generic.

I see the data.

We are starting to develop a reputation.

And it's great.

Exciting.

Uh huh.

We engaged more and more under the base on that world two year.

People that Amit for the first time.

With you guys have been great for you guys.

We expected and so we are.

<unk>.

A lot easier.

And the century or kind of the most crossing the chasm.

<unk> pharma.

As we went from being a risky bet too.

<unk>.

Shifting that.

Even companies that get more prudent to be more competitive.

I think we need to to embracing.

That's really the benefit of all.

Science focused we knew that.

Because some of those.

Skeptical scientists in the head.

The VP of Biologics discovery.

David W. Sceptical until we we made an effort.

Building a strong.

And those that 50 speaking for itself and that translate into more partnerships.

In Brooklyn efficient around Equinix hearing.

Great. Thanks for that very helpful. And then maybe just one for you Jim just on the expense side, you've been pretty clear about.

The margin guidance and the Capex guidance and the impact from factory of the future I'm just wondering from a conservatism standpoint as you look out of the build out effect for the future kind of what's been built in.

For that and any potential issues that might come up over the course of the year.

Yes, so for prices to get share with Jackie on about $25 million of spend.

Opex spend.

As we for the year and as we ramp fabs in future Thats going to start impacting Q3 Q4.

The margin impact in Q4, probably going to say roughly about $78 million depends on timing.

Two.

Cogs in Q4.

One issue it highlights is that.

And what's interesting in our margins this year, we're giving guidance that 571.

One point of note if you look at Q1.

And you look at Q1 versus Q4, you why is it down.

While we had in Q4, 56% of our business with Ags Q1 is 4% to 6% and we're going to see that.

Ngls claim in terms of revenues through the year and Ngls whenever stronger margins. So we've got a couple of areas.

Absolutely so managing we feel good about the 35, 7% guidance for the year.

Thank you. Our next question comes from Vijay Kumar with Evercore ISI. Your line is open.

Hey, guys. Thanks for taking my question.

Jim.

I wanted to start off with the guidance here.

Q1 <unk>.

<unk> 37 to 38, you guys beat by.

And call it roughly $5 million ish.

Died raise was by a similar amount.

One was there any timing.

The impact in Q1, why wouldn't this trend carrier carries through to the back half and what was.

The M&A contribution in the Q when I look at the guide for US I think some effect was biopharma was that.

Adverse deal or was it the base Biopharma increase.

So good question.

Things.

Baroness did contribute.

And we're also seeing growth in that.

Based biopharma business, so combination we're doing well there.

In terms of against the original guidance.

We had a very strong set of <unk> Q1.

<unk> is continuing to do well at the same time.

Still some issues with the pandemic. So as always we are prudent in terms of our guidance.

We're looking at strong strong orders in Q1.

Or does what close to $50 million.

And at the same time.

We've got to we're dealing with pandemic, we're managing supply chain initiatives.

<unk>.

We are.

We are prudent in terms of our guidance.

Sorry.

What was.

What is being assumed for adverse contribution I think the prior guidance had a $10 million does that change.

At various has changed a little bit.

We're not we're not going to break last I don't know.

We're going to keep the interest.

Biopharma is total number but there is that increase a little bit.

Our antibody discovery.

These actions increased both that as well.

Thank you. Our next question comes from Matt <unk> with William Blair. Your line is open.

Hi, good morning.

That revenue growth and just kind of curious what you are seeing the fastest area of new customer growth and if you could tie.

Any of that some of the new products that you've added in the last six months.

Yes.

Customer growth is <unk>.

We had strong strong quarter.

Industrial was strong.

The number of genes, we shipped a record.

So we saw a very broad customer demand from.

Industrial.

Health care pharma.

And also.

Academic.

So the.

I would say, it's very broad demand.

It just highlights the strength of the portfolio.

So James as a strong quarter.

We saw a little bit of ITG.

Come on last quarter.

All of the pools.

We had another.

Another good quarter in all of your pool, so there's a broad broad range across in bio.

Okay and then obviously you just takes a few months away here from factory of the future opening.

You mentioned last quarter that the focus was on sort of adding the capital equipment starting to get the hiring funnel, calling what you see is.

Actual risks to the opening or do you feel like at this point you have equipment. Most of the hiring has been made it's just a matter of.

We're really getting through that we have to for life.

Yes.

We for the equipment.

I mean, obviously, we started engaging with suppliers last year.

So we keep close tabs on the supply chain.

Construction is going well.

We are hiring.

Obviously, the other key component is software.

Software team is on track.

The new software.

Don't have too many issues on the supply channel keep managing it.

Hiring I've said starting off so that started off well.

So we feel good about where we're at we're tracking to our internal plans.

The target date is July per average starts.

Thank you. Our next question comes from Dan Brennan with Cowen.

Your line is open great great.

Great. Thanks for the questions maybe the first one just on the revenue opportunity for Covid antibody.

The $100 million of potential payments, a pretty sizeable just wondering can you just walk us through.

Timing catalysts and what's the potential for milestone payments this year.

Yes, thanks for the question.

So in terms of timing.

They all do.

Having behalf too.

And in.

In the first half of this Kevin <unk> and then go into the clinic.

In terms of milestones.

Uh huh.

Classic.

Our structure.

A&D phase one phase two launch.

And so on and in addition, we have opportunities to <unk>.

Additional.

Fees and milestones.

The stumped the clearing.

Additional targets that they are going to go after them.

Got it thanks, Emily maybe maybe the conversion opportunity I haven't heard it come up on the call, but just kind of walk us through how those discussions are going.

Anything likely to close just kind of walk us through what the opportunity could look like for this year.

I'm, sorry, I missed the first part of the questions Conjuncture.

Yes, the SNP microarray.

Yes, yes, yes.

Yeah, Yeah, so very excited about that.

We've made the so we made the acquisition of a genomics it took us a few quarters to twist define the kit.

The kit.

Our relaunched.

96, <unk> library preparation kits and.

So now well.

Putting it into the twist channel that we've built.

And.

So we are quite excited.

To see the contribution.

That this <unk>.

Acquisition will make and so we shouldnt, we should see more conversion.

In the near term.

Yes.

Thank you and I'm currently showing no further questions at this time I would like to turn the call back over to Emily <unk> for closing remarks.

Thank you very much and thank you for joining us today.

The stock market has been a bit rocky lately, we continued to deliver solid revenue growth.

Across our businesses by focusing on executing every day.

And we'd call up to keeping you apprised of our innovations and advancements.

All driven by the very hard work all the twister.

Thank you very much.

This concludes today's conference call. Thank you for participating you may now disconnect.

[music].

Welcome to twist Biosciences fiscal 2022 for our financial results Conference call. At this time all participants are in a listen only mode. After the speaker's presentation, there will an answer session.

I'll ask a question during the session you will need to press star one on your telephone. Please be advised that today's conference is being recorded if you require any further assistance. Please press star zero.

I would now like to turn the conference over to Angela bidding SVP of corporate Affairs, and Chief ESG Officer.

We issued our financial results. This morning, which is available at our website www dot twist Bioscience Dot com.

With me on today's call are Dr. Emily <unk>, CEO and co founder of twist, and Jim Thorburn CFO of Twitter.

We would ask that you limit your questions to a maximum of two and then re queue as a courtesy to others on the call.

As a reminder, this call is being recorded the audio portion will be archived in the investors section of our website and will be available for two weeks.

During today's presentation, we will be making forward looking statements within the meaning of the U S Federal security laws.

Forward looking statements generally relate to future events or future financial or operating performance.

Our 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 our filings with the Securities and Exchange Commission.

We disclaim any obligation to update any forward looking statements, except as required by law.

With that I will now turn the call over to our Chief Executive Officer, and co founder Dr. Emily Law approved.

Thank you Angela and good morning, everyone. We continued our momentum through the third quarter. If you could comment 20 to report record revenue of fleet to me and then ill and almost 50.

Certainly at this stage for robust growth in 2022.

Our investment in new products, Biopharma and that the storage continues to accelerate innovation.

Upside opportunity.

Bill.

Beginning with <unk> I'm pleased to report record revenue of $8 million in orders of $22 2 million at all we shipped 125000 genes in the quarter, a new record for Chris and have increased our capacity to 65000 genes Kumar with an eye towards 90000 should come on given your future.

The increased capacity allows us to accommodate both the ongoing demand as we work to bring the effect of the future online.

<unk> revenues in order for the quarter were $19 $221 8 million respectively.

Yes revenue and orders were impacted by the timing of year to date.

Thank you Paco micron with strong growth projected for the remainder of fiscal <unk>.

We have a great product offering and market that's likely to grow as a Christian our Brooklyn move from development to commercialization.

You're a bit more color I'd like to dive into two opportunities we see.

<unk> thousand two and beyond.

Liquid biopsy.

Market the BCC research estimates would be 19 alongside.

And I would say 2025.

Why are we doing that developer.

We estimate that the DNA portion is a question that you would be fine too simple cocoa market as the warranty provision and then all the serviceable market.

Our liquid biopsy Justin.

Bias stages of development.

<unk> and their own drive to a commercialization <unk> Clark.

Im just trying to create.

Pellet products both of those.

<unk> completed the design and Brexit condition, including our MTS product and are conducting clinical studies.

If you already commercial.

At the clinical trial and commercial activities.

Each patient samples.

You have some.

DNA.

That then ended up drive towards commercialization and around the commercial with Tesla.

Mcs revenue increases proportionately.

Once that equipment is custom.

Received clearance from the U S and nutrition the components of the Tesla for the foreseeable future and changing the covenants is difficult.

As a result, these casinos are extremely sticky.

To get to the Congress for now we are currently working with more than 20 companies.

Yes.

Moody's inclusive.

Inclusive work closely with recommendation.

In addition, we introduced separating from tumor DNA reference, which may play an important role in tuning correct, yes cancer detection.

We believe that developing and standardizing processes yet.

Accurate.

As is common to ensure the reducing analogy.

Informed clinical decisions reliably.

As the test come to market.

In Boston Atlanta, It becomes clear liquid biopsy gift and that would represent a tremendous upside both ways.

Another key market, where we see things that kind of opportunities and minimal residual disease or <unk>.

Got it.

And all the assays are used to determine if cancer treatments are working to chegg for Concord cancer and to guide further treatment plan.

The assays are primarily being used for blood cancers, with our many test and development portfolio.

Concurrently our predictions.

There are three ways that we work with.

In this application.

We will look at sequencing, where we provide the library preparation.

Straightforward and again every patient centered needs a library preparation.

Account is where there is a universal comment for all patients.

You May now proceed.

Sure.

The third way, we can work with them, because either you or where ever.

Every patient gets their own bespoke level.

While it is difficult for although to a bespoke panel that specific dislocation Joseph.

80% of our MTS Rubin.

So just to make something we know well and do well.

Okay.

These are just two opportunities we see for growth in 2022 and beyond.

We've launched several products in the December January timeframe that we believe will contribute.

Q2 growth.

Thank you.

The industry, leading content and documents.

The 96 plus level of progression.

We see quite a version of the product we acquired from <unk> that we believe will drive the conversion of Macquarie to twist.

And the robust Kenny Nicole Hello.

So that's where these unreasonable configured with applications, notably in veterinary medicine.

Human health as well.

It tends to Hal disease, rheumatoid disease and <unk> solutions.

We also launched our macro volume control.

A record for on time and critically important for the research.

<unk> continues to evolve.

Importantly, we also three separate microcontroller, which include the sale or microphone volume.

Most recently in the United States.

Earlier this.

All geographies.

Moving to Biopharma, we closed the acquisition of Advair is in the early time, Bill and think through integration is going well.

An external perspective, we expect them to continue to operate relatively separately and retroactively suite Eunice Kim is ultimately going to.

Which will allow for a thoughtful and non disruptive integration.

As well as account for PCB equipment, you'd probably get at.

At that point in time.

Moving into 2023, we expect the combined offering will be the most comprehensive discovery platform in the industry we serve.

Entity in vivo in AI based tools to identify the best.

Against a wide range of things.

We reported Biopharma revenue.

8 million, the rest of the quarter and $5 $6 million.

Which includes one month of Advair.

In the fourth quarter, we added eight new partner for crude by pharma with 42 partners. In total we initiated 21, new programs with 52 active programs going on at the end of the third quarter, we completed seven program during the quarter.

Total of 39 complete program for <unk> Biopharma.

91, total active and completed program.

50 of milestones and royalties and increase assistant programs don't screen economics.

During the third quarter fiscal 2022.

At various at 72 projects underway, which as a reminder, our fee for service and typically takes three to six months to complete.

We recently announced the collaboration with Amgen for discovery around antibodies for diagnostic and certification. This is a robust partnership that provides license fees and commercial milestone payments.

With line of collaborations we supply a right go.

So onto rediscovering the GPC.

And RPM for discovery of next generation cell therapeutics.

In addition to our work for partners.

Perfect.

Our <unk> priority development in the peer reviewed journal Mab.

And really a lot based therapeutics.

Published a preprint paper showing that the bispecific antibody license from us.

801 screen.

As both micron and at Alliance with South Korea.

By specific.

It's all non violent confirm today.

And Robin I expect to submit an IND to begin clinical studies in the first half of calendar 2020.

We call that <unk> was launched by tweaking them about 2021 and license the twist Biopharma discovery create antibodies, including RBC all at once right.

<unk>.

Milestone payments.

100, and it allows for the achievement of key development regulatory and commercial milestones as well as mid single digit royalties on any future net sales of two or three.

We are committed to creating opinion that opinion issue for me.

In addition, remember that can enter into up to five additional lease up program directed at none could be targets over the course of the next four years.

Each program subject to additional milestone payments and royalties.

Okay.

Put into storage, we know that to date the amount of the Tesco increasing dramatically.

Market expected to reach 60% to 80% of the total storage market last year, but want to debate the president of storage were shipped.

Estimates show that by 2030 <unk> Enterprise edition.

Ship is expected to grow to 20 to 32 right now.

According to these estimates in this decade.

10 to 30 times growth in chemical storage needed.

The current technology to still better harddrive play slash and tape I'm, just not able to scale to these limits.

These are huge cultural insufficiency and in our view.

It is the only technology that holds promise to scale and future demand.

In January we announced our first solution would be a century archive, enabling story storage of data for 100 view without any migration energy all maintenance needed.

The product is not available from any provider.

Archived data currently.

With you on the five to seven year timeframe.

Moving to the technology roadmap, we expect that our next city can skip the attitude will be a revenue raising poultry.

These chips.

Terabyte scale of BNS storage capability.

It was the appropriate action as needed.

Sure Chip.

For the century archive, we intend to go through the original study.

And we will share additional details as we refine our product offering.

Looking further into the future as always think long term, even as we exit to debate. It we know that Hyperscale and enterprise class of storage and that it will have to run within their facility.

While these markets the tentative as other chemicals.

Lastly need enzymatic synthesis.

When we began listening could be available options for enzymatic synthesis, we found that the hurdles to overcome.

Besides <unk>, which I'm not yet optimized the main issue is that it wasn't a big centerpiece offerings today are very extensive.

Indeed other approaches to make.

They are using enzymes are about 1000 times more expensive than buying or do you go on our website.

There are two reasons for that HEICO. The first is the enzymatic synthesis requires nucleoside triphosphate, which is a very expensive region.

The second issue is the base liquid issue, where Mike Kelly's constant health.

<unk>.

The high concentration of Mvpds required.

Each base to be adding added using enzymatic synthesis.

So looking at the Mtp's extensive with a large excess of any state.

So how do you get these channels alternatives they looked at chemistry, where we had though when NTP, we'd want everything which massively reduces the cost.

And now we have a local since there might be some does it matter.

But there is an additional program problem created by linking the MTB to the enzyme that we need to navigate.

And that primarily that.

The linker that pivotal the entry to the airline typically creates this call when the ACG.

Yeah.

Well the total time as it's called accumulate.

Enzyme called handle nucleotide and incentives and stuff.

The length of the agreements with them.

In addition, this call.

Now maybe.

Metro, which may create issues in those applications.

At least welcoming these challenged by developing a unique.

Good way to tell them, which provides his comments DNA that is identical to the metro.

So now with an indemnity extensive process of these local scarlet and finally.

The ability to develop and perfect them quickly because we have built in MTS based platform to screen hundreds of thousands of students at the same time.

That means that we can engineer accuracy faster and we can cover the IP space more effectively because we have already tested more sequences.

While we are quite excited about our new approach today, we use chemical synthesis for all of our products and we do not see that changing anytime soon.

We believe chemical synthesis, we remain instrumental as we continue to see billions of basis to the year with thousands of customers.

We also believe that except that it would be useful in enterprise offering for better storage, increasing new product line for co business like cell based synthesis of testing DNA I mean decentralize synthesis.

But.

You have had to develop all of those applications often we are happy to OEM market.

And important things to note. The twist is that as we grow we will not lose our spirit of innovation. We're students of the market, we will always be exhibiting while we work to perfect. Our next generation.

Continued greater future enzymatic. So this is a perfect example of our culture of innovation.

Sure.

And now I'd like to turn it over to Jim to review our financials.

Alright, Thank you Emily.

Started off fiscal 2018 on a strong note as we continue to scale our platform.

Revenue for quarter, one was <unk> 2 million, which is a sequential growth of 11% and year over year growth of 49%.

Orders were $49 6 million for the quarter.

A sequential increase of 10% and 48% year over year growth.

Gross margin for the first quarter was 35, 6%.

We shipped approximately 800 customers for the quarter and that's up from 500 and the <unk>.

First quarter of fiscal 'twenty one.

And we ended the quarter with cash and investments of approximately $490 million.

Now I will give some more color on orders.

<unk> for the first quarter were $21 8 million, which is an increase of 28% year over year and during the quarter. We received orders from approximately 700 mgs customers.

Tanner cast place orders of approximately $7 million as compared to approximately $10 million for the top 10 in the previous quarter.

And certainly we're seeing continued diversification of our customer footprint.

Pipeline for larger opportunities continues to scale.

Tracking 225 accounts up from 119 90, we noted my last earnings call.

In quarter, 196% of adopted twist and Thats, an increase from last quarter.

Both reinforces our robust and growing market off with J&J.

Turning to send <unk>.

We saw robust growth in our spend by orders which includes genes.

Perhaps.

G live based on all of the pools.

Orders rose to $22 2 million in the first quarter up from $20 1 million in the fourth quarter of fiscal 'twenty one.

Sequential growth of 10% and up.

Approximately 40% from $15 9 million in the first quarter of fiscal 'twenty one.

The major contributor to growth as the industrial segment sector.

Health care and Academia were also very strong in the quarter.

Now to Biopharma we.

Twist Biopharma antibody platform substitute partners with 62 active programs and now have 50 milestone and royalty programs and Thats up from 75% in the last quarter.

Please note orders may not translate into revenue, but provide a trend line for each product group.

Now moving from August to revenue revenue for the first quarter was $42 million, representing approximately 49% growth for me $28 2 million in the first quarter of fiscal 'twenty one.

NGL product revenue was $19 2 million in the first quarter of 'twenty, two and that's 23% growth year over year in.

In quarter, one fiscal 'twenty, two top 20 customers accounted for approximately 44% of <unk> revenue.

Our <unk> product revenue for the quarter was approximately $18 million upfront captain <unk> 9 million in the same quarter of fiscal 'twenty. One some of the highlights include shipping to approximately <unk> hundred <unk> customers in the quarter genes revenue was $13 5 million up from $8 9 million in the first quarter of fiscal 'twenty one.

We shipped approximately 125000 genes.

<unk> Biopharma our revenue for the quarter was approximately $4 $8 million, which includes one month of SaaS.

I will now cover our revenue breakdown by industry.

Even though we are operating in a pandemic.

Many academic labs for impacted globally, our academic revenue was $7 9 million versus $4 9 million in Q1, 'twenty, one reflecting our continued focus on growing our long tail and agricultural revenue was 0.6 million versus zero point $2 million in the first quarter fiscal 'twenty one.

I will now briefly cover our regional progress for first quarter fiscal 'twenty two or.

Our investment in building out our global commercial organization is reflected in the strong international growth EMEA had a great start to the year with first quarter revenue was $15 4 million versus $9 1 million in the first quarter of fiscal 'twenty, one APAC had a terrific quarter, one with revenue of $4 million up from one.

$8 million from the first quarter of fiscal 2011.

U S, which includes Americas revenue was $22 6 million in the first quarter of fiscal 'twenty two versus $17 3 million the same period of fiscal 'twenty one.

Now moving down the P&L.

Our gross margin for the quarter was approximately $15 million, that's a five 6% of revenue versus 35, 5% in quarter, one fiscal 'twenty one.

Gross margin this quarter was influenced by a combination of the production challenges, we highlighted in our previous call and higher.

Makes us and buy our products to offer.

On expenses, our quarter, one operating expense, which includes R&D SG&A and change in fair value of acquisitions of approximately $71 million.

R&D for the quarter was $22 $6 million, an increase from $19 4 million in quarter four primarily due to increased biopharma spend associated with the rigor and the various acquisition.

Our SG&A costs in quarter, one was $51 1 million as compared to $38 2 million in quarter four due to increase in stock based comp of approximately <unk> 9 million.

Change in fair volume contingent considerations on damages the hold backs for the quarter resulted in a gain of $2 8 million stock.

Stock based compensation for the quarter was $18 1 million up from $9 2 million in quarter four due to a.

Combination of annual stock grants.

Vas acquisition.

Depreciation was $2 8 million for quarter one.

Net loss before tax was approximately $56 million as compared to $40 9 million for quarter four primarily due to the aforementioned increases in operating expenses.

Our stock based compensation and costs associated with rigor.

In quarter, one we recorded a tax gain of $10 million associated with the various transaction.

This brings our loss after taxes of approximately $46 million.

Capex for the quarter was $22 million, mostly associated with our factory of the future investments.

Given the global supply chain challenges, we have strategically increased our inventory to $40 million compared to statute 2 million at the end of fiscal 'twenty one.

We ended the quarter with cash and investments of approximately $409 million.

I will now provide updated financial guidance for fiscal 'twenty two as we noted quarter. One bookings were strong and were optimistic in our opportunities at the same time, there remains uncertainty associated with the pandemic.

<unk>.

For the year 'twenty, two we're increasing our revenue guidance.

189 to 119.

$8 million and that's up from the previous guidance of $183 million to $193 million.

<unk> revenue is estimated in the range of $70 million to $72 million compared to $67 million to $70 million in our previous guidance.

<unk> revenue is estimated to be in the range of $94 million to $96 million as we are projecting strong second half based on our increased pipeline production scaling.

Biopharma revenue, including the <unk> acquisition is estimated to be in the range of approximately $25 million to $30 million as compared to previous guidance of $22 million to $27 million.

There is no change in our projected FY 'twenty two cross margin guidance in the range of 75 to get 7%, which reflects costs associated with our Portland, Brian exclude.

Excluding these costs gross margin guidance would be 42% to 44%.

Operating expenses, which includes R&D and SG&A are expected to be approximately $375 million for the year, including $130 million R&D expenses as we previously guided.

Our net loss guidance for the year will be approximately $260 million.

Stock based compensation for the year is projected to be approximately $74 million. This has increased from our last projection of $47 million, primarily due to the <unk> acquisition.

Depreciation is projected to be $13 million.

Our projected capex for FY 'twenty, two continues to be $80 million to $90 million, including $75 million for our factory and future investments in the Portland area.

In summary, we would like to welcome all of the various team aboard and thank all the twisters for delivering another terrific quarter of record growth as we continued to execute our strategy.

With that I'll turn the call back to Emily.

Thank you Jim.

Looking ahead, we have amazing opportunities across each area of our business to both grow revenue and expand the markets we serve.

In <unk>, we plan to continue to build our business and expand our customer base, we remain focused on bringing up the factory of the future to reduce overall turnaround time, especially for James.

And with the additional space that we have we expect to be able to launch new products, enabling us to address new markets with some of those products are showing the potential of increased margins.

NCS, we believe our serviceable market is growing.

Could extend significantly as deeply boats in the MLB Etsy is from our customer reached equivalent Shaw marketplace, which we expect will expand our revenue base accordingly.

In addition, we aim to own the space between the comfort in sequence here.

We'll continue to grow our customer base and Quickbooks cinema.

I don't think and library preparation products and driving Macquarie consumption now that we have launched the 19th.

February .

Gary Harmon.

Regulatory approvals, we expect to have the first week equivalent type it in the clinic this year.

Through <unk>.

And what are you gonna progression of tweaking. It varies we believe that we have a greater bookings to ramp toward year.

And lead times are platforms, who are weakening system of cross selling additional partnerships out licensing and advancing our internal pipeline.

I think that the storage, we have a roadmap to reach the terabyte scale DNS storage offering.

Alfred Chip <unk>.

Plans to introduce a century archive solution and we work to continue to drive going into Christmas courage.

Okay.

Finally, I'd like to mention that we issued our first.

We spoke at the end of January and you can find it on our.

We're extremely pleased to share our thoughts in the front.

With that let's open the call for questions operator.

Thank you Andrew.

A reminder to ask a question you will need to press star one of your telephone to withdraw your question press the pound key.

We ask that you please limit yourself to one question and one follow up please standby, while we compile the Q&A roster.

Our first question comes from Ken <unk>.

<unk> with Baird. Your line is open.

Hey, everyone. Thanks for the questions.

I guess first maybe on the enzymatic synthesis platform can you just talk to the path forward there.

Net milestones or update should we be expecting.

'twenty two.

And it sounds like you might not be set on developing your own instrument, there, but rather work with a partner or license out your chemistry at what point do you think the chemistry.

Yeah.

To start with a partner conversations.

Yes. Thank you Frank for the question.

So the emphasis initially for the enzymatic synthesis.

Development was.

Roadmap for the storage.

The first product that we're going to launch at the century archive.

It can be run as is.

Storage as a service.

In our roadmap.

In future generation, we know that we need to develop an enterprise version of <unk> that the storage and let the enterprise would be used.

<unk> in their facilities and we won't be able to use.

The arch chemicals.

Chemical synthesis, therefore for the Hyperscale and enterprise storage, we need enzymatic synthesis, and then we will be probably.

Probably we will do the development so so.

We will develop.

Our own hardware.

That's where it's full estimating to do this.

In a decentralized manner at least for the storage.

We have not closed the door for the markets to do without them.

Although we do believe in being disciplined and focused on what we do and so that means that for all the markets.

It could be done we spot nodes or it could be also but we have not closed any deals with great optionality.

Same time, we have with them.

Very strong.

Internal roadmap for.

And Brian on Ngls.

And.

We developed the enzymatic synthes approach and we get through the the length on Aero rates that we want.

As we launch new products internally.

We'll have a choice and at the time, which was which is the best.

On technology to produce a product at the time.

Okay got it and then maybe for and yes, we get a lot of questions on pricing.

And with that product and you talked a lot about liquid biopsy today.

There.

Average pricing when it comes to liquid biopsy customers, how much can pricing per sample very poor.

Panel versus an extra element so on and gear methylation panels have have different pricing.

So, yes pricing is a little bit.

Complex and just just because.

The many different combination of the product.

In general.

More probe in the panel the more expensive it yet.

So you have a panel that has.

<unk> probes to two two.

Hi.

Wide.

Analysis of different genes that would be more expensive if you have a narrower panel.

As 50000 probes.

And then the pricing.

So sample.

Goes down as the number of samples goes up and so you buy.

Panel that would capture a thousand patients.

The simple price would be.

Would be higher than that.

And although that will.

Be able to get $1 million.

Samples.

So those are the two components.

Edition, so thats what the DNA.

<unk>.

Elaborate Craig Cook.

And so depending on whether the customer chooses twist.

For the adapters to broker the profile of the beads.

At the enzyme.

The additional.

Cost in general.

We tend to incentivize.

Just enough to bundle and so that enables us to drive revenue.

And margin.

So it is a relatively.

The complex.

Metrics.

That being said in general.

Tried to.

We aim.

Aim is that the.

The twist codecs from from a liquid.

<unk> revenue.

Point of view is about 5% to 10% of.

With the liquid biopsy market is.

Liquidity that gives you a little bit of a <unk>.

<unk>.

The the revenue that we are going to get.

<unk>.

Filtration and liquid biopsy.

Thank you. Our next question comes from Tycho Peterson with Jpmorgan. Your line is open.

Hi, guys. This is Casey on for Tycho.

So it looks like EMEA had a strong quarter of growth can you talk a little bit about where the strength came from in that region and the growth there is sustainable.

Yes.

Sorry, I was on mute there, yes, so sorry, if I missed your question. There. There was alignment went fuzzy remains so can you repeat the question.

Yes, yes, so EMEA it looks like it had a strong quarter growth can you talk a little bit about where the strength came from in that region and that growth is sustainable.

Yes, no the growth.

EMEA continues to sequential growth.

Every quarter, we've been invested heavily in our commercial organization in EMEA delivering.

Delivering on some sym bio large pharma.

We're seeing opportunity.

Biopharma antibodies as well plus EMEA is doing exceptionally well and Ngls were seeing across all of our key.

So that would be Germany.

As in Netherlands.

In Norway exiting in the UK as well.

Okay.

So there's a couple of drivers.

Product quality.

Our customer support.

The commercial.

The capabilities of our team in Europe . So we're really pleased with what's happening in Europe , and we see significant opportunity to grow.

To continue our growth in Europe .

Okay got you and then just on the cash rent guide here are there any supply chain or inflationary headwinds that are baked in there.

Maybe what are some sources of upside here as we progress through the year. Thank you.

Supply chain is going well, we've increased our inventory.

Continuing to manage that very aggressively.

Got it.

Fantastic operations purchasing team have worked well with.

Our partners.

I mean, obviously, it's there's a lot of work.

Keeping on top of it.

But if you go back to the beginning of the pandemic, we continue to invest in our inventory of net.

Increased that to $40 million.

In terms of going forward.

We see plenty of opportunity for upside <unk> bio is extremely strong.

This highlights that we're seeing opportunities of Ngls liquid biopsy.

To see the number of large.

<unk> customers the pipeline continues to grow and we continue to see significant growth opportunities not only in EMEA, but we see opportunities in APAC and then move to the <unk> genomics upside coming.

As we see more opportunities from microwave to lgs conversion.

<unk> is doing extremely well.

The.

Team there is fantastic.

First month this quarter is looking good.

Very optimistic and bullish on the outlook there.

Yeah.

Thank you. Our next question comes from Puneet <unk> with SBB Leerink. Your line is open.

Yes, Hi, Emily and Jim Thanks for taking the questions. So first one is really around the quarter. I mean, you delivered strong liens and sym bio but NGL.

<unk> was impacted by OMA krone as you mentioned, so I just want to make sure that the production challenges that you had for the quarter.

We're all for the last quarter are all resolved if you could confirm that and.

If you can clarify what was the catch up and send buyout there.

And what are you currently seeing among the labs.

Especially the academic labs, returning back and overall NGL volumes currently and then I have a follow up on guidance.

Maybe.

A production issue and Jim can and so the engie as part of the question.

So yes, the production issue.

Is is behind us.

In terms of.

Identification resolution of the problem.

And shipping out all the backlog.

That may have been created by the proteins you again.

Customer of naval goods any byproducts because the debt was that that you see that.

Some of the genes we had to remake.

So some customers extend some some delay and again a clarification.

The production issue with only.

Limited to two gene production, so it did not impact NGL hurdle.

So we're quite pleased with the number of genes that we shipped last quarter on the 25000 genes.

That's a record and we had strong audience and value.

Yes, so Anthony.

Are those were very strong in <unk>.

With $22 million of artists and bio up sequentially.

Seeing strong demand from an increase in customer base.

So we've got wind.

Wind in our sales in <unk> terms of Ngls, we had hoped.

Some are almost $22 million in the quarter.

And Thats thats flat with quarter four.

Quarter, four September quarter tends to be strong business LNG gas.

We feel very good about the outlook for <unk> in terms of $94 million to $96 million.

That said the number of customers large customers continues to scale Dr.

Adoption increases.

We're continuing to launch more products, we get by genomics opportunity coming ahead.

So I think the.

The setup for Ngls looks very good plus.

Goodbye to send bio we.

We have a very strong June shipments, we shipped a 125000 genes that's one of our strongest quarters ever.

We've got the production issues behind us we've increased capacity and genes, we're getting set up to.

Open up port loans in July .

But that also gives us more.

<unk> capability.

Physicians to have a really strong fiscal 'twenty three.

Okay, that's great and then.

On the guide.

Appreciate the guide raise that appears to be about $6 5 million at the midpoint.

Including.

<unk> and it seems that about half of that is on syn <unk> other half is on biopharma.

Your <unk> guide remains the same so just given the <unk>.

Number of comments that you made throughout the call for liquid biopsy Mardi a number of other products overall, just given the momentum you're sort of seeing in Ngls NGL guide is it still flat for the year. So just wanted to clarify.

What im missing there and just wanted to make sure that we're capturing that as this just sort of a near term conservatism with omicron. We're just emerging out of that or is there more to this and if you could clarify thanks.

So a couple of couple of bias near term conservatism secondly, we're getting set up for very strong second half on Ngls.

Driven by adoption driven by the growth in the customer base.

Just our outlook in terms of where we see the market going.

So if you just step back and look at the numbers.

We build about $19 million.

The first quarter, and we're seeing significant step up from that as well.

Requests for quarter, three and quarter four.

Thank you. Our next question comes from Lou <unk> with Barclays. Your line is open.

Good morning, everybody. Thanks for.

Thanks for the question excuse me.

I just wanted to get a clarification to get an idea of how youre thinking about when youre going from you were at 40000 genes for months now you're at 65, and then Youre going to 90 in the near future can you give us a.

How should we think about that rolling through the.

The revenue I mean, youre not seeing that type of step up implied in the guide.

Just kind of the dynamics there and then if you could give any clarification on near future that'd be helpful.

Yes. Thank you great question.

And so the impetus will be increased.

Yeah.

Capacity.

Is to be able to.

To capture.

Search tenants. So we have two types of customers that have the big Big accounts and then we have.

The the long term.

<unk> at the time.

Yeah.

So.

Last quarter, we had with them.

125000 genes shipped and so.

In theory with 45000 <unk> capacity per months, we can do it however, depending on when those genes come in.

We also need to be able to capture the Soc demand and so.

By increasing.

Yeah.

The capacity that means that the.

James maybe the highest weight as soon as they hit the website for the next day.

They can go online.

First in the sales demand.

And then the second is gives us a little bit of protection from what happened.

In.

In August .

In a small way in October where we had a problem in the fab.

And.

When the fab is full and yes, we made some genes.

It's very hard to catch up because the fab is full you have margins coming in you have to remake and so.

It takes a lot longer to be clear, though from something that's relatively.

It's simple to fix.

So by adding extra capacity.

If we have an issue in the fab, where we have gone for a deal to.

It becomes completely transparent to the customer because we have additional capacity to just catch up.

That's really the impetus.

Yeah.

And over time as we keep delivering.

We capture more market, we're growing at about twice the twice the rate of the market. So we are going to grow into that capacity.

And.

And so the capacity of the effects of the future is going to be important for us.

In addition in the.

The future will have new product features such as increased speed.

Really enabled us to.

Two <unk>.

The increase.

The price.

Price of the product at about the same cost and so get better margin.

It's really why we're doing it.

Okay.

Our Florida.

And then lastly, you guys have been signing a bunch of deals you can get one with Afghan recent most recently you have some of the artisan to do the next cell next.

Next generation cell therapy. So can you give us a sense of or update us on any expected milestones of kind of the pacing throughout the year.

Anything from any of the Biopharma partnerships other than I understand the guide, but any particular programs that stand out that we need to keep our bonds.

And then.

Wichita Falls.

Is.

From the deal unless we get upfront payment because you're good at pace will be paid to below 50%, 60% margins with great but.

As you suggest the majority of the economic value is actually in the milestones and royalties and so what we've been doing is banking.

Both makes him the royalties last quarter.

21, new programs 15 of them and my sense of royalty so that is great.

Timing.

It is uncertain, we do our work in about six months.

And then you can take.

It can take.

<unk> to 'twenty performance for our partners to go to Andy that will start where we can start predicting some milestones so.

We know it will have been difficult to guide.

I'll point out that that outcome is an especially good Alex.

Exciting deal for us because it's nothing to therapeutic Syria. It's.

In the research area diagnostics, and so that means that the potentials for milestones and royalty is a lot faster to happen then a therapeutic deal.

And so.

That's where the.

And especially.

Strategic one for us.

Last thing I'd say is that we definitely are.

Working how to coax.

Our partner to be able to be more public about the types of deals we are making.

For instance, we were quite successful.

Your line.

We were able to describe.

The 710 million donuts of milestones that.

We can have with them.

So we want to make molecules.

But unfortunately.

We need the cooperations with the partners who have done that.

Always.

<unk>.

We need to do that.

And you have the data.

We are thinking those milestones or royalties.

<unk> and <unk>.

We are quite excited at the prospect of.

Starting to be ceding some of them.

Yes.

Thank you. Our next question comes from Mac Sykes with Goldman Sachs. Your line is open.

Hi, good morning, Thanks for taking my questions maybe on the lines of this.

Thanks last question.

Just on the on the Biopharma I'm, just curious from a high level Emily as you talked about it early stages. The conversations you are having from an economic standpoint, one is beneficial because you are still trying to prove out.

Your capabilities, but now you've gained a lot of momentum you signed a number of new collaborations and agreements I'm just wondering how the nature of the conversations have changed.

Not just from an economic standpoint, but perhaps folks coming to you as.

As the word gets out in terms of your capabilities and how you see that business in terms of growth trajectory today versus what you might have imagined it would have been a few years ago.

Yes.

It's quite.

Quite exciting.

The change.

A few years ago, we were a very risky bet.

And.

Really.

The most likely deals we would get from small companies that were leaking leaking point.

Leading edge.

<unk>.

However, not as we have generic generates.

Generated data.

We are starting to.

To develop a reputation.

And it's great.

Exciting.

As we engage more and Melinda and device on a world two year.

I mean for the first time.

Yes.

With you guys have been great for you guys.

We expected and so we are becoming.

A lot easier.

And <unk>.

Century or kind of crossing the chasm.

Biopharma.

As we went from being a risky bet too.

<unk>.

Sure thing.

Even companies that bit more prudent to be more competitive.

I think we need to to embrace.

It's really the benefit of our science focused we knew that.

Because to move well.

Skeptical scientists on the head.

The VP of Biologics discovery.

David W. Sceptical until we we made an effort.

Building, a strong debt thats it.

Speaking for itself and that translate into more partnerships.

In the conversation around Equinix hearing.

Great. Thanks for that very helpful. And then maybe just one for you Jim just on the expense side, you've been pretty clear about.

The margin guidance on the Capex guidance and the impact from factory of the future Im just wondering from a conservatism standpoint as you look out of the build out of factory of the future kind of what's been built him for.

Any potential issues that might come up over the course of the year.

Yes, so for prices future with Jackie on the 25 million of spend.

Opex spend.

<unk>.

As we for the year.

As we ramp up the future that's going to start impacting Q3 Q4.

Margin impact.

In Q4, probably going to say roughly about.

$708 million depends on timing.

Two.

Cogs in Q4.

One issue it highlights is that.

And what's interesting in our margins this year as we've given guidance that five seven there's one one point of note. If you look at Q1.

Look at Q1 versus Q4, you why is it down.

While we had in Q4, 56% of our business with Ngls Q1 is 4% to 6% and we're going to see that.

And GFS claim in terms of revenues through the year and Ngls whenever stronger margins. So we've got a couple of areas that we're looking at something.

Managing.

All good about that that provides a thats, 7% guidance for the year.

Thank you. Our next question comes from Vijay Kumar with Evercore ISI. Your line is open.

Hey, guys. Thanks for taking my question.

Jim.

I want to start off with the guidance here.

Q1 Guide was 37 to 38, you guys beat by.

And call it roughly $5 million ish.

The guide raise was by a similar amount.

So one was there any timing.

Impact in Q1, why wouldn't this trend carrier carries through to the back half and what was.

The M&A contribution in the Q like when I look at the guide for US I think.

Some of it was biopharma was that.

Adverse deal or was it the base Biopharma increase.

So good question.

Things.

Awareness to contribute.

And we're also seeing growth in the base Biopharma business. So combination we're doing well there.

In terms of against the original guidance.

We had a very strong set of <unk> Q1.

<unk> is continuing to do well at the same time.

Still some issues with the pandemic. So as always we are prudent in terms of our guidance.

We're looking at strong strong orders in Q1.

Or does what close to $50 million.

But at the same time.

We're dealing with pandemic, we're managing the supply chain initiatives.

We're.

We are prudent in terms of our guidance.

Sorry, just on what was.

What is being assumed for adverse contribution I think prior guidance had a $10 million does that change.

Adverse has changed a little bit.

We're not we're not going to break last I don't know.

We're going to keep the interest.

Biopharma is total number but did increase a little bit.

Our antibody discovery projections increase both that as well.

Thank you. Our next question comes from Matt <unk> with William Blair. Your line is open.

Hi, good morning.

Obviously, you broke out some of the revenue by industry, but I'm curious more around the growth in <unk> customer base, assuming most of those customers are probably start small some might not tied to the revenue growth I, just kind of curious where youre seeing the fastest area of new customer growth and if you could tie.

Any of that some of the new products that you've added in the last six months.

Yes.

Customer growth is <unk>.

We had strong strong quarter.

Industrial was strong.

The number of genes we shipped was a record so we saw a very broad customer demand from.

Industrial.

Health care pharma.

And also.

Academic.

So the I would say, it's very broad demand.

Yes.

It just highlights the strength of the portfolio.

So James on the strong quarter.

We saw a little bit of ITG.

Come on last quarter.

All of the pools.

We had another.

Not a good quarter in all of your pool, So there's a broad broad range across in bio.

Okay and then.

Obviously, you just takes a few months away here from factory of the future opening.

You mentioned last quarter that the focus was on sort of adding the capital equipment starting to get the hiring funnel, calling what do you see as potential risks to the opening or do you feel like at this point you have equipment most of the hiring has been negative.

Just a matter of.

Like getting through then we have to go alive.

Yes.

<unk>.

For the equipment.

Obviously, we started engaging with suppliers last year.

So we keep close tabs on the supply chain.

Construction is going well.

We are hiring.

Obviously, the other key component is software.

Our team is on track.

The new software.

Don't have too many issues on the supply channel keep managing it.

Hiring.

Starting off so that started off well.

So we feel good about where we're at we're tracking to our internal plans.

The target date is July per hour.

Stocks.

Thank you. Our next question comes from Dan Brennan with Cowen.

Your line is open great great.

Great. Thanks for the questions maybe the first one just on the rebel opportunity for Covid antibody.

The $100 million of potential payments, a pretty sizeable just wondering can you just walk us through.

Timing catalysts and what's the potential for milestone payments this year.

Yes, thanks for the question.

So in terms of timing.

They are driving.

Driving up too.

And.

In the first half of this Kevin <unk> and then go into clinic.

In terms of milestones.

The.

A classic.

The structure.

And phase one phase two launch.

And so on and in addition, we have opportunities to.

Additional.

Fees and milestones when the stumped the clearing.

<unk> known targets that they are going to go after.

Got it thanks, Emily maybe maybe the conversion opportunity I haven't heard it come up on the call, but just kind of walk us through how those discussions are going.

Anything likely to close just kind of walk us through what the opportunity could look like for this year.

Okay.

I'm, sorry, I missed the first part of the question Conjuncture.

Yes, the SNP microarray.

Yes, yes, yes.

And so very excited about that.

We've made the so we made the acquisition of a genomics it took us a few quarters to twist define.

Kip.

The Kid has been relaunched.

96, <unk> library preparation kits and.

So now well.

Putting it into the twist channel that we've been in.

So we are quite excited.

To see the contribution.

That this <unk>.

Acquisition will make and so we should we should see more conversion.

In the near term.

Yes.

Thank you and I'm currently showing no further questions at this time I would like to turn the call back over to Emily <unk> for closing remarks.

Thank you very much and thank you for joining us today.

The stock market has been a bit rocky lately, we continued to deliver solid revenue growth.

Across our businesses by focusing on executing every day.

And we just saw up to keeping you appraised of our innovations and advancements.

All driven by the very hard work all the twister with that thank you very much.

This concludes today's conference call. Thank you for participating you may now disconnect.

Q1 2022 Twist Bioscience Corp Earnings Call

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