Twist Bioscience Corporation (NASDAQ:TWST) Q2 2023 Earnings Call Transcript

Page 9 of 10

James Thorburn: So in terms of business, I mean, nobody can predict the future. However, what we’re going to do is manage the business based on environment. So, couple of key metrics, what does the market environment look like. Overall, we’re growing significant in that environment. We — investments in the Factory of the Future, we will manage our investments and we’ll manage our investments get to adjusted EBITDA breakeven and then focus on getting to profitability as Emily has highlighted, we’ve moderated our investment in DNA storage. So based on the environment we are then make — take the decisions to ensure that we’re delivering value for our shareholders, our customers, our employees. And part of that is having a strong balance sheet and other than those part of it is we’ve got — we’ve got to continue strong execution and innovation that Twist culture is known for, and we’re focused on supporting that transitioning to the growth opportunities and delivering fast genes in Q4 calendar this year.

Tom Peterson: Got it. Thanks.

Operator: Thank you. And our next question coming from the line of Rachel Vatnsdal with JPMorgan. Your line is open.

Rachel Vatnsdal: Great. Thanks for taking the question. So few questions on Biopharma, it looks like active partnerships between legacy at Biopharma and Abveris was roughly 112 active programs during fiscal 4Q. That’s set down to 95 during fiscal 1Q and then it looks like today you have 93 active programs. So can you just walk us through how much of that step down was really due to programs being cut and do you expect additional declines in program count throughout the year and then as a follow-up to that you’ve mentioned that challenges from Biopharma are purely just integrational and execution related. So can you just help us understand what exactly was the breakdown there from the integration issues?

Emily Leproust: Yes. Thank you, great question. So in terms of number of active program work is, we get an order for a program. And so we reported as an order probably until the next quarter or the one after that is done. We’ve provided the answers to the customers. And that gets revenue and then the program goes down, right. And so it’s not that those programs were cut that they may have been very small number of cancellation. But most likely those are programs that have been completed and move to revenue, and that’s why revenue is the lagging metric and order is the leading metric. And then in terms of the commercial integrations, we had to led at various run on its own. And so there were territories conflict. And there were some technology that had to be learned and that to a bit more time than we wanted and it happened a bit later than they were on it, but at this point the territories have been rationalized, we have re-platformed all the systems, and I’m confident that the BD sales team is having high activities and we have the right cadence of getting in front of new customers and closing them.

Thank you.

Rachel Vatnsdal: Great. And then maybe just a follow-up here and there has been quite a few questions on guidance macro backdrop, maybe I’ll just shift gears over to DNA data storage and I appreciate that you’re rationalizing some of the spend that operating just given the macro backdrop, but can you just talk about what are your plans for your enzymatic offering. If I recall, you were planning on getting that fully online to support that DNA data storage offering, which is going to be kind of key to the thesis in terms of the competitive positioning as peers have entered with their own enzymatic products. So can you walk us through, does that timeline has shifted of your asthmatic offering. And can you give us tech update in terms of how that’s trended as well. Thank you.

Page 9 of 10