NASDAQ$TWST

Twist Bioscience Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported revenue increase of 49% year-over-year and reached a settlement agreement with Agilent in litigation.

Twist Bioscience reported a strong start to fiscal year 2020, with revenues of $17.2 million, a 49% increase over the same period last year. The company also reached a settlement agreement with Agilent, removing uncertainty and paving the way for future growth.

  • Total orders received for the first quarter of fiscal 2020 were $24.8 million, compared to $15.2 million for the same period of fiscal 2019.
  • Total revenues were $17.2 million for the first quarter of fiscal 2020 compared to $11.5 million for the same period of fiscal 2019.
  • Shipped products to approximately 1,000 customers in the first quarter of fiscal 2020, versus about 600 in the same period of fiscal 2019.
  • Signed a collaboration with Schrödinger, Inc. to discover new antibody therapeutics against G-protein coupled receptor (GPCR) targets.

Headline financials

Total Revenue

$17.2M

Previous: $11.5M+49.4%
EPS (adj)

-$1.00

Previous: -$1.18+15.3%
Gross Margin

3400000.0%

No prior period
Capital Expenditures

-$2.06M

Previous: -$1.92M-7.1%
Free Cash Flow

-$57.7M

Previous: -$24.6M-134.9%
Net Income

-$55.6M

Previous: -$22.6M-145.8%
Operating Income

-$55.8M

Previous: -$22.9M-143.8%
Gross Profit

$3.37M

Previous: -$365K+1023.8%
Cash & Equivalents

$26M

Previous: $66.5M-60.8%
Total Assets

$192M

Previous: $164M+16.9%

Revenue & EPS history

Twist Bioscience · Revenue · Quarterly

$17.2M

Q1 2020+49.4%vs Q1 2019
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

Revenue by segment

Twist Bioscience · $218M total across 2 segments · Q3 2023

  • NGS Applications
    $120M+23.7%
  • DNA Synthesis & Protein
    $98M+22.5%

Forward guidance

Twist Bioscience provided updated financial guidance for the full fiscal year 2020.

Tailwinds

  • Revenue expected in the range of $80 to $84 million consistent with our previous guidance
  • Revenue from Ginkgo Bioworks expected to be approximately $10 million
  • Synbio revenue excluding Ginkgo Bioworks is expected to be in the range of $32 to $33 million
  • NGS revenue is estimated to be in the range of $37 to $40 million
  • Biopharma revenue is estimated to be approximately $1.0

Headwinds

  • Gross margin is expected to be approximately 32% for fiscal 2020
  • Net loss (Excluding Litigation Settlement) is expected in the range of $107 million to $110 million, an increase from our previous guidance of $103 to $106 million primarily due to legal fees associated with the Agilent litigation in anticipation of a trial beginning February 24, 2020.
  • Net loss (Including Litigation Settlement) expected in the range of $129.5 to $132.5 million.
  • Legal fees associated with the Agilent litigation
  • Uncertainty of the litigation removed

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.1%

Avg return

Earnings day

-2.1%

Avg return

5 days after

+0.8%

Avg return

30 days after

47%

14 / 30 earnings

Positive

+29.7%

Q4 2023

Best reaction

-23.2%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-7.3%-5.9%+19.6%
Q1 2026+13.8%-5.9%-10.2%
Q4 2025-10.0%-14.9%+3.4%
Q2 2025-8.5%-16.9%-20.8%
Q1 2025+0.7%-0.1%-19.7%
Q4 2024+12.0%+14.5%+20.9%
Q3 2024-14.6%-16.0%-18.5%
Q2 2024+28.9%+34.9%+31.1%
Q1 2024+9.5%+5.1%+16.9%
Q4 2023+29.7%+24.9%+81.5%
Q3 2023+14.9%+9.3%+14.0%
Q2 2023+3.6%+2.1%+26.0%
Q1 2023-23.2%-15.2%-37.1%
Q4 2022+0.8%+0.5%-0.6%
Q3 2022+20.8%+12.4%-17.2%
Q2 2022-9.9%-16.3%-12.6%
Q1 2022-1.0%+6.0%-21.0%
Q4 2021-12.6%-14.1%-22.4%
Q3 2021-9.1%-15.8%-7.6%
Q2 2021+6.2%-9.4%-12.4%
Q1 2021-16.8%-5.5%-38.1%
Q4 2020-9.9%-0.8%+44.3%
Q3 2020-7.2%-16.3%-4.8%
Q2 2020+5.1%+4.6%+0.7%
Q1 2020+21.3%+14.0%+31.4%
Q4 2019+4.6%+5.8%-15.5%
Q3 2019-11.2%-11.8%-13.9%
Q2 2019-9.9%-9.7%-3.9%
Q1 2019-9.2%-11.8%-6.9%
Q4 2018-9.2%-9.4%+18.6%
Q3 2018
Q2 2018
Q1 2017
Q4 2017

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