Twist Bioscience Corp (TWST) 2024 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to Twist Bioscience fiscal 2024 third-quarter financial results conference call. (Operator Instructions) Please note that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 Twist Bioscience 2024 財年第三季財務業績電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to turn the conference call over to Angela Bitting, SVP of Corporate Affairs. Please go ahead.

我現在想將電話會議轉交給公司事務高級副總裁 Angela Bitting。請繼續。

Thank you, operator. Good morning, everyone. I would like to thank all of you for joining us today for Twist Bioscience's conference call to review our fiscal 2024 third-quarter financial results and business progress. We issued our financial results release before market and the release is available at our website at www.twistbioscience.com. With me on today's call are Dr. Emily Leproust, CEO and Co-Founder of Twist; and Adam Laponis, CFO of Twist. Dr. Patrick Finn, President and COO of Twist will join us for the Q&A.

謝謝你，接線生。大家早安。我要感謝大家今天參加 Twist Bioscience 的電話會議，回顧我們 2024 財年第三季的財務表現和業務進展。我們在上市前發布了財務業績報告，該報告可在我們的網站 www.twistbioscience.com 上取得。參加今天電話會議的有 Twist 執行長兼聯合創始人 Emily Leproust 博士；以及 Twist 財務長 Adam Laponis。Twist 總裁兼營運長 Patrick Finn 博士將與我們一起參加問答。

Today we will discuss our business progress, financial and operational performance, as well as growth opportunities. We will open up the call for questions. We ask that you limit your questions to only one and then re-queue as a courtesy to others on the call. This call is being recorded and the audio portion will be archived in the Investors section of our website and will be available for two weeks.

今天我們將討論我們的業務進展、財務和營運績效以及成長機會。我們將開放提問。我們要求您將問題限制為一個，然後出於對通話中其他人的禮貌而重新排隊。本次電話會議正在錄音，音訊部分將存檔在我們網站的投資者部分，並將提供兩週。

During today's presentation, we will make forward-looking statements within the meaning of the US Federal Securities 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. The forward-looking statements in this presentation are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements except as required by law. We'll also discuss adjusted EBITDA, which is a financial measure that does not reform with the generally accepted accounting principles. Information may be calculated differently than similar non-GAAP data presented by other companies. When reported a reconciliation between GAAP and non-GAAP financial measures will be included in our earnings documents, which can be found in our investor relations website at www.twistbioscience.com

在今天的演示中，我們將做出美國聯邦證券法含義內的前瞻性陳述。前瞻性陳述通常與未來事件或未來財務或經營績效有關。我們對這些事項的期望和信念可能不會實現，實際結果和財務週期受到風險和不確定性的影響，可能導致實際結果與預測有重大差異。這些風險包括我們今天早些時候發布的新聞稿中列出的風險，以及我們向美國證券交易委員會提交的文件中更全面描述的風險。本簡報中的前瞻性陳述基於截至本新聞稿發布之日我們可獲得的信息，除法律要求外，我們不承擔更新任何前瞻性陳述的義務。我們還將討論調整後的 EBITDA，這是一種不會根據公認會計原則進行改革的財務指標。資訊的計算方式可能與其他公司提供的類似非公認會計準則資料不同。在報告時，GAAP 和非 GAAP 財務指標之間的對帳將包含在我們的收益文件中，您可以在我們的投資者關係網站 www.twistbioscience.com 中找到該文件。

With that, I'll now turn the call over to our Chief Executive Officer and Co-Founder, Dr. Emily Leproust.

現在，我將把電話轉給我們的執行長兼聯合創始人 Emily Leproust 博士。

Thank you, Angela, and good morning, everyone. I am pleased to report another record-breaking quarter of revenue growth for Twist. This quarter we surpassed our revenue, margin, and cash burn targets by employing disciplined execution and operational excellence. We have been diligent in our pursuit to serve our customers, introducing differentiated products that build on our proprietary technology and leveraging our unique competitive advantage to position the company for profitable growth.

謝謝你，安琪拉，大家早安。我很高興地報告 Twist 又一個創紀錄的季度收入增長。本季度，我們透過嚴格的執行和卓越的運營，超越了收入、利潤和現金消耗目標。我們一直努力為客戶服務，推出基於我們專有技術的差異化產品，並利用我們獨特的競爭優勢使公司實現盈利成長。

For the third quarter, we increased revenue 28% year over year to $81.5 million, with orders coming at $85.3 million. The strong quarter was driven by growth in our synthetic biology product line including Express Genes along with robust growth in NGS. We reported a 43.3% gross margin for the quarter, an increase of approximately 900 basis points versus 34.4% for the same period last year.

第三季度，我們的營收年增 28% 至 8,150 萬美元，訂單量為 8,530 萬美元。這一季度的強勁成長得益於包括 Express Genes 在內的合成生物學產品線的成長以及 NGS 的強勁成長。我們報告本季毛利率為 43.3%，比去年同期的 34.4% 成長了約 900 個基點。

For SynBio, revenue increased to $33 million, with orders of $33.8 million. SynBio revenue grew 27% year over year and 11% sequentially. We see growing interest and engagement for our Express Genes product line which together with our expanding portfolio of high-quality differentiated products, build on our Express infrastructure continues to drive new customer growth and net new accounts.

SynBio 的營收增至 3,300 萬美元，訂單金額為 3,380 萬美元。SynBio 營收年增 27%，季增 11%。我們看到人們對 Express Genes 產品線的興趣和參與度不斷增長，加上我們不斷擴大的高品質差異化產品組合，建立在 Express 基礎設施的基礎上，繼續推動新客戶成長和淨新帳戶。

Our Express Genes provide a differentiated and important offering for our customers and potential customers. With this offering, we ship clonal genes in five days at a reasonable cost. And we manufacture and ship all Express Genes from our site just outside of Portland, Oregon in the US where we make all of our SynBio products with the exception of DNA libraries which are made in our South San Francisco site. Importantly, we continue to launch new products that build off of our Express Genes portfolio and infrastructure. In May, we launched Multiplexed Gene Fragments with direct synthesis of DNA up to 500 base pairs. This direct synthesis length along with pooling of fragments enable our customers to pursue myriad applications. Some examples include encoding entire viable regions for antibody discovery and encoding entire functional domains of proteins for enzyme engineering, both of which are very useful for parallel screening of AI or ML-generated sequences.

我們的 Express Genes 為我們的客戶和潛在客戶提供差異化且重要的產品。透過這項服務，我們可以在五天內以合理的成本運送克隆基因。我們在美國俄勒岡州波特蘭市郊外的工廠生產和運輸所有 Express Gene，我們在那裡生產所有 SynBio 產品，但 DNA 文庫除外，DNA 文庫是在南舊金山工廠生產的。重要的是，我們繼續推出基於 Express Genes 產品組合和基礎設施的新產品。5 月，我們推出了多重基因片段，可直接合成最多 500 個鹼基對的 DNA。這種直接合成長度以及片段匯集使我們的客戶能夠追求多種應用。一些例子包括編碼用於抗體發現的整個可行區域和編碼用於酶工程的蛋白質的整個功能域，這兩者對於並行篩選 AI 或 ML 生成的序列非常有用。

In addition, two important applications of this 500 base pairs length enable customers to encode mRNA sequences for personalized therapy or encode multiple guide RNA sequences within a single framework for complex CRISPR screens. These are just four examples of diverse applications for this innovative product that showcase how we augment our processes continuously to drive innovation and for new products while expanding our infrastructure capacity. Also building onto the Express workflow, in July, we introduced Express Antibodies, both for CHO and HEK293, the two most commonly used cell lines for the antibody discovery and optimization cycle. Multiplexed Gene Fragments and Express Antibodies illustrate the benefit of making all of our DNA on the Express timeline as we do not need to cut the line for particular customers.

此外，500 個鹼基對長度的兩個重要應用使客戶能夠編碼用於個人化治療的 mRNA 序列，或在單一框架內編碼多個指導 RNA 序列以進行複雜的 CRISPR 篩選。這些只是這種創新產品的不同應用的四個範例，展示了我們如何不斷增強流程以推動創新和新產品，同時擴大我們的基礎設施容量。同樣在 Express 工作流程的基礎上，我們於 7 月推出了 Express Antibodies，適用於 CHO 和 HEK293，這是抗體發現和優化週期中最常用的兩種細胞系。多重基因片段和 Express 抗體說明了在 Express 時間表上生產我們所有 DNA 的好處，因為我們不需要為特定客戶插隊。

In addition to growth for our existing portfolio of products, including Express Genes, we will continue to add products that leverage our rapid manufacturing. These products will target areas of the life science market that we do not serve today and have the potential to expand our share of wallet with existing customers as well as open up new market opportunities. Express Genes continues to perform well, showing ongoing sequential growth that contributes not only to revenue and growth margin expansion but also a key driver for our over-increasing net new customers.

除了包括 Express Genes 在內的現有產品組合的成長之外，我們還將繼續增加利用我們快速製造的產品。這些產品將瞄準我們目前尚未服務的生命科學市場領域，並有可能擴大我們在現有客戶中的份額，並開闢新的市場機會。Express Genes 繼續表現良好，顯示出持續的環比成長，這不僅有助於收入和利潤率的擴大，而且也是我們淨新客戶過度成長的關鍵驅動力。

As we indicated at the time of launch, our long-term intent is to convert gene makers into gene buyers as well as convert customers from competitors. We expect our market share and the category as a whole to continue to grow as we expand our Express offerings. Moving forward, because we continue to add more and more products building on the Express infrastructure, we will report all express product revenue in our overall SynBio numbers, primarily for competitive reasons.

正如我們在發佈時所指出的，我們的長期目標是將基因製造商轉變為基因買家，並將客戶從競爭對手轉變為客戶。我們預計，隨著我們擴展快遞服務，我們的市場份額和整個類別將繼續成長。展望未來，由於我們繼續在 Express 基礎設施上添加越來越多的產品，因此我們將在 SynBio 總體數據中報告所有 Express 產品收入，這主要是出於競爭原因。

Moving to NGS, we posted another very strong quarter as revenue grew to $43.4 million, an increase of 31% year over year and $46.7 million in orders. Strength in the quarter came primarily from clinical customers, many of whom are in the liquid biopsy and rare disease spaces. Moving forward, we see continued strength in these areas as well as several additional avenues of growth.

轉向 NGS，我們發布了另一個非常強勁的季度，收入增長至 4,340 萬美元，同比增長 31%，訂單量達到 4,670 萬美元。本季度的優勢主要來自臨床客戶，其中許多來自液體活檢和罕見疾病領域。展望未來，我們看到這些領域的持續優勢以及其他一些成長途徑。

Starting with Minimal Residual Disease or MRD, our products generate minimal revenue today. However, we expect revenue to expand a bit in 2025 with more substantial growth beyond 2025, similar to what we have seen with growth coming from liquid biopsy customers in the last year. In MRD, we provide three workflow offerings for customers with the ability to adapt to three distinct types of customer assays. When our customers pursue low pathogen sequencing for the assay, we offer a unique cfDNA library prep kit that extracts more rare mutations and to also library prep, a competitive advantage for this application.

從微小殘留疾病或 MRD 開始，我們的產品如今產生的收入微乎其微。然而，我們預計 2025 年收入將略有成長，並在 2025 年後出現更大的成長，類似於我們去年看到的來自液體活檢客戶的成長。在 MRD 中，我們為客戶提供三種工作流程產品，能夠適應三種不同類型的客戶檢測。當我們的客戶追求低病原體定序檢測時，我們提供獨特的 cfDNA 文庫製備試劑盒，可提取更多罕見突變並進行文庫製備，這是該應用的競爭優勢。

Second, customers developing tumor-agnostic assays use Twist to build a customized target enrichment panel of genes and variants related to a particular type of cancer that applies to all samples. This is similar to the custom target enrichment panels we provide for liquid biopsy customers. Third, customers developing tumor informed workflow or an assay test for individualized mutations can leverage Twist MRD 500 panels where we incorporate up to 500 different mutations for an individualized assay at the same speed and cost as a handful of probes produced by our competitors. In fact, some customers want many more than 500 mutations and we have the ability to scale into multiple thousands of variants to meet their needs. Importantly, this third avenue shines a light in Twist's ability to partner with our customers to deliver personalized and customized panels rapidly and at scale. (inaudible) we see growth coming from our RNASeq workflow.

其次，開發與腫瘤無關的檢測的客戶使用 Twist 建立適用於所有樣本的與特定類型癌症相關的基因和變異的客製化目標富集面板。這類似於我們為液體活檢客戶提供的客製化目標富集面板。第三，開發腫瘤知情工作流程或個人化突變檢測測試的客戶可以利用Twist MRD 500 面板，我們將多達500 個不同的突變納入個人化檢測，其速度和成本與我們競爭對手生產的少數探針相同。事實上，有些客戶想要超過 500 個突變，我們有能力擴展到數千個變體來滿足他們的需求。重要的是，這第三條途徑凸顯了 Twist 與客戶合作快速大規模交付個人化和客製化面板的能力。 （聽不清楚）我們看到 RNASeq 工作流程的成長。

We differentiate our RNA products on key benefits, including the elimination of bias through whole RNA transcription (inaudible) a transcription. Our RNA solution offers the potential to capture fusions and gene expression that could be missed by other workflows. In addition, it effectively generates results from degraded samples and our simplified and efficient workflows allow customers to save time and run more samples on the sequencer in a cost-effective manner. We also see customers expanding beyond our original flagship NGS offering of target enrichment to include our differentiated library prep kits, both on UDI, UMI barcodes, and more when placing orders expanding our share of wallet while supporting better results for our customers.

我們的 RNA 產品因主要優勢而脫穎而出，包括透過整個 RNA 轉錄（聽不清楚）和轉錄消除偏差。我們的 RNA 解決方案提供了捕獲其他工作流程可能錯過的融合和基因表現的潛力。此外，它還可以有效地從降解的樣品中產生結果，我們簡化且高效的工作流程使客戶能夠節省時間並以經濟高效的方式在定序儀上運行更多樣品。我們也看到客戶在下訂單時擴展到我們最初的旗艦NGS 標靶富集產品，包括我們差異化的文庫製備試劑盒（包括UDI、UMI 條碼等），擴大了我們的錢包份額，同時為我們的客戶提供更好的結果。

For biopharma, revenue increased to $5.1 million with orders of $4.9 million. We continue to deliver on programs for our partners across a spectrum of offerings. A few weeks ago, we announced that the first patient has been dosed in Pure Biologics' Clinical study of PBA-0405, a fully human IgG1 antibody discovered using Twist Biopharma solutions Synthetic antibody phage display libraries. This advancement of PBA-0405 into human studies validates the potential of our synthetic antibody libraries to be used to discover antibiotic candidates for how to treat cancer indications. We expect at least one of their partners to initiate human studies within the next year.

生物製藥方面，收入增加至 510 萬美元，訂單金額為 490 萬美元。我們繼續為我們的合作夥伴提供一系列的專案。幾週前，我們宣佈在 Pure Biologics 的 PBA-0405 臨床研究中，第一位患者已接受給藥，PBA-0405 是一種使用 Twist Biopharma 解決方案合成抗體噬菌體展示庫發現的全人 IgG1 抗體。PBA-0405 在人體研究中的進展驗證了我們的合成抗體庫用於發現治療癌症適應症的候選抗生素的潛力。我們預計他們的至少一個合作夥伴將在明年內啟動人體研究。

Additionally, during the quarter, we announced a key publication detailing data for adenosine A2A antibody which is available for out licensing. We continue to work diligently to increase revenue and orders for biopharma, and in this fragmented market, we know our offering resonates. In addition, the Biopharma Solutions Group provides a spectrum of products and services that fit strategically with our SynBio product line. We do believe the revenue ramp will take time and we will continue to analyze and manage the overall business to ensure this group continues to provide value.

此外，在本季度，我們宣布了一份重要出版物，詳細介紹了腺苷 A2A 抗體的數據，該抗體可供外部許可。我們繼續努力增加生物製藥的收入和訂單，在這個分散的市場中，我們知道我們的產品會引起共鳴。此外，生物製藥解決方案集團也提供一系列與我們的 SynBio 產品線策略契合的產品和服務。我們確實相信收入成長需要時間，我們將繼續分析和管理整體業務，以確保集團繼續提供價值。

For Data Storage. We remain focused on technology development and enablement of the Terabyte Century Archive workflow for early access before the end of calendar 2025. Progress continues and we see this area of our business as a valuable asset with optionality at multiple points of development.

用於資料儲存。我們仍然專注於技術開發和太字節世紀檔案工作流程的實現，以便在 2025 年底之前提前訪問。進展仍在繼續，我們將這一業務領域視為寶貴的資產，在多個發展點上具有選擇性。

Turning to operations, we reported a gross margin of 43.3% exceeding our guidance, and a significant increase of approximately 900 basis points over the same quarter last year increased revenue growth, the majority of margin growth, and included contribution from Express Genes as well as NGS mix.

談到運營，我們報告的毛利率為 43.3%，超出了我們的指導，比去年同期顯著增長了約 900 個基點，增加了收入增長，大部分利潤增長，包括 Express Genes 以及NGS 混合。

I'd like to note that while we expect fluctuation in any given quarter due to mix and other adjustments, more than 75% of the revenue growth year over year dropped to gross profit for the third quarter of fiscal 2024. On average, we expect to continue to see 75% to 80% of revenue growth drop to gross profit moving forward. Looking ahead, we will continue to focus on margin improvement initiatives, including continuous process improvements, supply chain optimization, operational excellence, and in-sourcing. We remain on track to improve our margin by several percentage points, with a path to a gross margin north of 50% by the end of fiscal 2025.

我想指出的是，雖然我們預計任何特定季度都會因組合和其他調整而出現波動，但 2024 財年第三季超過 75% 的收入同比增長下降為毛利。平均而言，我們預計未來營收成長將繼續下降到毛利的 75% 至 80%。展望未來，我們將持續專注於利潤改善舉措，包括持續流程改善、供應鏈優化、卓越營運和內包。我們仍有望將利潤率提高幾個百分點，到 2025 財年末毛利率將達到 50% 以上。

With that, I'll turn it over to Adam to discuss our financials.

接下來，我會將其交給 Adam 來討論我們的財務狀況。

Thank you, Emily. Revenue for the second quarter increased to $81.5 million, growth of 28% year over year and approximately 8% sequentially. Orders were $85.3 million, an increase of 34% year over year. While we received blanket purchase orders, as we do every quarter, we saw our order patterns in line with historical trends.

謝謝你，艾米麗。第二季營收增至 8,150 萬美元，年增 28%，季增約 8%。訂單金額為8,530萬美元，年增34%。雖然我們收到了一攬子採購訂單（就像每季一樣），但我們看到我們的訂單模式與歷史趨勢一致。

As Emily said, gross margin came in higher than expected at 43.3% for the third quarter of fiscal 2024. During the third quarter, we shipped to approximately 2,300 customers. We ended the quarter with cash, cash equivalents, and short-term investments of approximately $289.4 million, a reduction of $4 million versus the $293.3 million balance as of March 31, 2024.

正如 Emily 所說，2024 財年第三季的毛利率為 43.3%，高於預期。第三季度，我們向大約 2,300 名客戶發貨。截至本季末，我們的現金、現金等價物和短期投資約為 2.894 億美元，比截至 2024 年 3 月 31 日的 2.933 億美元餘額減少了 400 萬美元。

Taking a deeper dive into revenue. SynBio revenue increased to $33 million, growing 27% year over year, with orders increasing to $33.8 million. We shipped 212,000 genes in the quarter. Synthetic Genes revenue, which includes both clonal genes, gene fragments, and IgG, increased to approximately $24.9 million, growth of approximately 29% year over year. Within the SynBio umbrella, oligo pool revenue increased to $4.2 million and DNA libraries revenue increased to $3.8 million, year over year growth of 12% and 34%, respectively.

更深入地了解收入。SynBio 營收增至 3,300 萬美元，年增 27%，訂單增至 3,380 萬美元。本季我們運送了 212,000 個基因。合成基因收入（包括克隆基因、基因片段和 IgG）增加至約 2,490 萬美元，較去年同期成長約 29%。在 SynBio 旗下，寡核苷酸池營收增至 420 萬美元，DNA 文庫營收增至 380 萬美元，年比分別成長 12% 及 34%。

NGS revenue for the third quarter grew approximately $43.4 million, compared to $33.2 million in the third quarter of fiscal 2023, an increase of 31% year over year. For the quarter, revenue from our top 10 NGS customers accounted for approximately 39% of NGS revenue. Orders increased to $46.7 million, which we anticipate sets the stage for further NGS growth. We served 570 NGS customers in the quarter, with 141 having adopted our products.

第三季 NGS 營收成長約 4,340 萬美元，而 2023 財年第三季 NGS 營收為 3,320 萬美元，較去年同期成長 31%。本季度，來自我們十大 NGS 客戶的收入約佔 NGS 收入的 39%。訂單增加至 4,670 萬美元，我們預計這將為 NGS 的進一步成長奠定基礎。本季我們為 570 家 NGS 客戶提供服務，其中 141 家採用了我們的產品。

For biopharma, revenue was $5.1 million with orders of $4.9 million. We had 61 active programs as of the end of June 2024 and we started 43 new programs during the quarter. In the third quarter, we took an impairment charge of approximately $45 million as we revisited the long-term growth forecast for biopharma, and we believe the outlook shifted from our original view. We continue to mature the business development team and just as our commercial teams for SynBio and NGS took time to accelerate, we are finding that the biopharma team is taking time to perform at the expected level.

生物製藥業務收入為 510 萬美元，訂單金額為 490 萬美元。截至 2024 年 6 月，我們有 61 個活躍項目，本季啟動了 43 個新項目。第三季度，當我們重新審視生物製藥的長期成長預測時，我們提列了約 4,500 萬美元的減損費用，我們認為前景與我們最初的觀點發生了變化。我們不斷完善業務開發團隊，正如我們的 SynBio 和 NGS 商業團隊需要時間來加速一樣，我們發現生物製藥團隊也需要時間才能達到預期水準。

Looking at revenue by industry, healthcare revenue rose 26% to $42.8 million for the third quarter of 2024, compared to $34 million in the same period of fiscal 2023, reflecting the increased uptake of our products by pharma, biotech, and diagnostic companies. Industrial chemical revenue rose 38% to $23.2 million in the third quarter, up from $16.8 million in the same period of fiscal 2023 strong growth year over year. Academic revenue rose 20% to $14.9 million for the third quarter of 2024, up from $12.4 million in the same period of fiscal 2023.

從按行業劃分的收入來看，2024 年第三季的醫療保健收入增長了26%，達到4,280 萬美元，而2023 財年同期為3,400 萬美元，反映出製藥、生物技術和診斷公司對我們產品的採用增加。第三季工業化學品營收成長 38%，達到 2,320 萬美元，高於 2023 財年同期的 1,680 萬美元，較去年同期強勁成長。2024 年第三季學術營收成長 20%，達到 1,490 萬美元，高於 2023 財年同期的 1,240 萬美元。

Looking geographically, America's revenue increased to approximately $51.4 million in the third quarter compared to $39 million in the same period of fiscal 2023, growth of 32% year over year. EMEA revenue rose to $23.6 million in the third quarter versus $19.1 million in the same period of fiscal 2023, growth of 24% year over year. APAC revenue increased to $6.5 million in the third quarter compared to $5.7 million in the same period of fiscal 2023, growth of 15% year over year. China revenue was $1.8 million, a small percentage of our total revenue for the quarter.

從地理來看，美國第三季的營收增至約 5,140 萬美元，而 2023 財年同期為 3,900 萬美元，較去年同期成長 32%。第三季 EMEA 營收增至 2,360 萬美元，而 2023 財年同期為 1,910 萬美元，年增 24%。第三季亞太地區營收增至 650 萬美元，而 2023 財年同期營收為 570 萬美元，年增 15%。中國收入為 180 萬美元，僅占我們本季總收入的一小部分。

Our gross margin for the third quarter increased to 43.3%. We saw strength from Express Genes revenue lifting margin offset by a contracted SynBio customer who received a large order with their discounted terms in Q3. Of note, we expect this customer to take a step back in the fiscal 2024 fourth quarter and we have factored this into our SynBio guidance. Our NGS offerings continue to have strong gross margin performance and as we said last quarter, we do expect to continue to see puts and takes in our gross margin based on contracted customer mix. Our margin fluctuates based on the individual customer orders in a given quarter. While we expect quarterly volatility, on average, we expect 75% to 80% of revenue to drop the gross profit for the foreseeable future as we continue our margin initiatives, the primary focus across the Executive team and throughout the company.

我們第三季的毛利率增至43.3%。我們看到 Express Genes 營收提升利潤率的強勁勢頭被 SynBio 簽約客戶所抵消，該客戶在第三季以折扣條款收到了大筆訂單。值得注意的是，我們預計該客戶將在 2024 財年第四季退一步，我們已將這一點納入我們的 SynBio 指導中。我們的 NGS 產品繼續保持強勁的毛利率表現，正如我們上季度所說，我們確實預計我們的毛利率將繼續根據合約客戶組合而增加。我們的利潤根據特定季度的個別客戶訂單而波動。雖然我們預計季度波動，但平均而言，隨著我們繼續實施利潤率計劃，我們預計在可預見的未來，75% 至80% 的收入將下降毛利，這是執行團隊和整個公司的主要關注點。

In total, operating expenses for the third quarter were $170.4 million, which includes the $45 million non-cash impairment charge, compared with $124.5 million in the same period of 2023. On a non-GAAP basis excluding stock-based compensation and the Q3 FY 2024 impairment charge, operating expenses were $111.7 million, compared with $110.3 million in the same period of 2023. Breaking this down, cost of revenues increased to $46.2 million in the third quarter of 2024, compared with $41.8 million in the same period of fiscal 2023, primarily due to higher product volume as well as increased depreciation and amortization expense, mostly due to prior year capital investments for the new manufacturing facility in Wilsonville, Oregon.

總的來說，第三季的營運費用為 1.704 億美元，其中包括 4,500 萬美元的非現金減損費用，而 2023 年同期為 1.245 億美元。以非公認會計準則計算，不包括股票薪酬和 2024 財年第三季減損費用，營運費用為 1.117 億美元，而 2023 年同期為 1.103 億美元。細分來看，2024 年第三季的營收成本增至4,620 萬美元，而2023 財年同期為4,180 萬美元，這主要是由於產品產量增加以及折舊和攤銷費用增加（主要是由於前一年）為俄勒岡州威爾遜維爾的新製造工廠進行資本投資。

R&D decreased to $22.5 million, compared with $24.5 million in the same period of fiscal 2023, primarily due to the reduction in headcount as well as a decrease in outside services and lab supply. SG&A was $56.8 million for the third quarter, compared with $46.1 million in the same period of fiscal 2023. The increase was driven largely by stock-based compensation and bonus accruals as the business is performing above forecast this time. Non-cash impairment charges on biopharma, intangibles, and other assets were $45 million in the third quarter of fiscal 2024.

研發費用減少至 2,250 萬美元，而 2023 財年同期為 2,450 萬美元，這主要是由於員工人數減少以及外部服務和實驗室供應減少。第三季的銷售、行政管理費用為 5,680 萬美元，而 2023 財年同期為 4,610 萬美元。這一成長主要是由股票薪酬和應計獎金推動的，因為這次業務的表現超出了預期。2024 財年第三季度，生物製藥、無形資產和其他資產的非現金減損費用為 4,500 萬美元。

Operating expenses included approximately $6 million for data storage. Stock-based compensation for the quarter was approximately $13.7 million. Depreciation and amortization were $8.3 million for the quarter. For the third quarter of fiscal 2024, adjusted EBITDA was a loss of approximately $22 million, an improvement of $8 million versus the third quarter of fiscal 2023, and an improvement of $5 million versus the second quarter of fiscal 2024. We ended the quarter with cash, cash equivalents, and short-term investments of approximately $289.4 million, a reduction of $4 million versus the $293 million balance as of March 31st.

營運費用包括約 600 萬美元的資料儲存費用。本季以股票為基礎的薪酬約為 1,370 萬美元。該季度的折舊和攤提為 830 萬美元。2024 財年第三季度，調整後 EBITDA 虧損約 2,200 萬美元，較 2023 財年第三季增加 800 萬美元，比 2024 財年第二季減少 500 萬美元。截至本季末，我們的現金、現金等價物和短期投資約為 2.894 億美元，比截至 3 月 31 日的 2.93 億美元餘額減少了 400 萬美元。

Our strong cash position was driven by continued strong operational performance as well as one-time gains from improvements in accounts receivable collection and other working capital improvements, as we continue to evolve our G&A capabilities. Cash flow from operating activities continues to improve and we are driving the break even. For the nine months ended June 30, 2024, net cash used in operating activities was $48.8 million, compared to $121.8 million through the equivalent nine-month period in 2023.

我們強勁的現金狀況是由持續強勁的營運業績以及隨著我們不斷發展我們的一般管理能力而從應收帳款催收改善和其他營運資本改善中獲得的一次性收益所推動的。經營活動產生的現金流持續改善，我們正在實現損益平衡。截至 2024 年 6 月 30 日的 9 個月，經營活動使用的現金淨額為 4,880 萬美元，而 2023 年同期的 9 個月期間為 1.218 億美元。

Turning to guidance. For fiscal 2024, we now expect total revenue to increase by $8.5 million at the midpoint of the range to approximately $310 million to $311 million, with anticipated growth of approximately 27% year over year. Increased SynBio revenue of approximately $121 million, up from previous guidance of $118 million to $120 million with anticipated year-over-year growth of 23%.

轉向指導。對於 2024 財年，我們目前預計總營收將增加 850 萬美元（中間值），達到約 3.1 億至 3.11 億美元，預計年增約 27%。SynBio 營收增加約 1.21 億美元，從先前指引的 1.18 億美元增至 1.2 億美元，預計年增 23%。

NGS revenue of $169 million to $170 million, an increase of $6 million to $7 million across the range, an anticipated growth of 36% to 37% year over year. Biopharma revenue of approximately $20 million, consistent with prior guidance. We expect the gross margin to be at the high end of the range and approximately 42% for the year. Our expected loss from operations before taxes in the range of $227 million to $230 million, including the $45 million impairment change. Excluding the impairment charge, loss from operations before taxes is expected to be in the range $182 million to $185 million on a non-GAAP basis, a slight decrease from our previous guidance of $183 million to $188 million.

NGS 收入為 1.69 億美元至 1.7 億美元，整個範圍增加了 600 萬美元至 700 萬美元，預計將年增 36% 至 37%。生物製藥收入約為 2000 萬美元，與先前的指導一致。我們預計今年的毛利率將處於該範圍的高端，約為 42%。我們預計稅前營運損失在 2.27 億美元至 2.3 億美元之間，其中包括 4,500 萬美元的減損變動。不計減損費用，以非公認會計原則計算，稅前營運虧損預計在 1.82 億美元至 1.85 億美元之間，比我們先前指引的 1.83 億美元至 1.88 億美元略有下降。

CapEx is projected to be approximately $13 million for fiscal 2024, a decrease of $2 million from prior guidance. We project ending cash of more than $255 million at the end of fiscal 2024. For the fourth quarter, we expect overall revenue of approximately $82 million to $83 million, an increase from previous guidance of $77 million to $80 million. Gross margin for the fourth quarter of approximately 44% at the high end of the range of previous guidance of 43% to 44%. Adjusted EBITDA loss of $20 million and we expect gross margin for the fourth quarter of fiscal 2025 to be 50%.

2024 財年的資本支出預計約為 1,300 萬美元，比先前的指導減少 200 萬美元。我們預計到 2024 財年末期末現金將超過 2.55 億美元。我們預計第四季的總收入約為 8,200 萬美元至 8,300 萬美元，高於先前指導的 7,700 萬美元至 8,000 萬美元。第四季毛利率約為 44%，處於先前指引範圍 43% 至 44% 的高端。調整後 EBITDA 損失為 2,000 萬美元，我們預期 2025 財年第四季的毛利率為 50%。

We have been working on capacity planning and we believe that between the manufacturing facilities we have today, the revenue capacity of these facilities can go significantly above the previous estimate of $500 million in revenue. With sustaining levels of capital investment, we believe the capacity for our sites in Oregon and California can deliver over $700 million of revenue per year in the future. This is a very exciting time to be a part of the growth of the company. We will continue to march toward adjusted EBITDA breakeven while serving our customers every single day.

我們一直致力於產能規劃，我們相信，在我們今天擁有的製造工廠中，這些工廠的收入能力可以大大高於先前估計的 5 億美元收入。透過持續的資本投資水平，我們相信俄勒岡州和加州工廠的產能未來每年可以帶來超過 7 億美元的收入。這是一個非常令人興奮的時刻，能夠成為公司發展的一部分。我們將繼續努力實現調整後的 EBITDA 損益平衡，同時每天為客戶提供服務。

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

說完，我會把電話轉回給艾蜜莉。

Thank you, Adam. As we are now in the final quarter of our fiscal year, the momentum continues to grow. We are often asked by investors why our SynBio and NGS groups continue to outperform when others in the space show little to no growth. It begins with our unique platform for writing DNA on the silicon chip. Our team leverages this platform to generate innovative products that meet customer needs. Our platform and products pair very well with our customer prowess, bringing pricing and quality along with the expanding portfolio of products and services. While these are key to our success, it's truly our Twisters who turn our vision to improve health and sustainability into a reality. Our strong financial performance quarter after quarter, coupled with our expanding portfolio of products and services, positions us well for sustained growth and value creation.

謝謝你，亞當。由於我們現在正處於本財年的最後一個季度，這一勢頭仍在繼續增長。投資人經常問我們，為什麼我們的 SynBio 和 NGS 集團在該領域的其他集團幾乎沒有成長的情況下卻繼續表現出色。它始於我們在矽晶片上寫入 DNA 的獨特平台。我們的團隊利用這個平台來開發滿足客戶需求的創新產品。我們的平台和產品與我們的客戶實力完美結合，帶來定價和品質以及不斷擴大的產品和服務組合。雖然這些是我們成功的關鍵，但真正將我們改善健康和永續發展的願景變成現實的是我們的 Twisters。我們每季強勁的財務業績，加上我們不斷擴大的產品和服務組合，使我們為持續成長和價值創造做好了準備。

Looking ahead, we're excited about the vast potential of our proprietary technology and the transformative impact it is already having across multiple industries. We will continue to drive towards adjusted EBITDA breakeven pursuing profitable growth fast to capitalize on the immense opportunities presented by a proprietary silicon-based synthesis capability.

展望未來，我們對專有技術的巨大潛力及其已經對多個行業產生的變革性影響感到興奮。我們將繼續推動調整後的 EBITDA 損益平衡，追求利潤快速成長，以利用專有的矽基合成能力帶來的巨大機會。

With that, let's open up the call for questions. Operator?

接下來，讓我們開始提問。操作員？

(Operator Instructions) Matthew Sykes, Goldman Sachs.

（操作員指令）Matthew Sykes，高盛。

Hi, this is [Evia] on for Matt. Congrats on the strong quarter. For my first question, what are you seeing in NGS market overall? We've seen from peers, they've noted weakness in the market, but given your strength, are you taking share? And then what's the feedback from customers been?

大家好，我是 Matt 的 [Evia]。恭喜季度表現強勁。對於我的第一個問題，您對 NGS 市場的整體看法如何？我們從同行那裡看到，他們注意到了市場的疲軟，但鑑於你們的實力，你們是否正在搶佔份額？那麼客戶的回饋是什麼呢？

Yes, thank you. It's a great question. Like you noted, we -- it's a great quarter. We are definitely taking share. I think we've been very focused in our technology development to focus on first, application -- first and then moving to others. And a big bet that we did around the time of the IPO actually was our focus on methylation and liquid biopsy. And right now, we're seeing the fruit of that investment where in some ways it's a little bit overexposed in a good way to liquid biopsy. And as we have a very dominating technology and the market is growing, we are benefiting from that and we're very excited that we're trying to do the same thing in other markets.

是的，謝謝。這是一個很好的問題。正如您所指出的，我們——這是一個很棒的季度。我們一定會分享。我認為我們一直非常專注於技術開發，首先專注於應用，然後再轉向其他領域。我們在首次公開募股期間所做的一個大賭注實際上是我們對甲基化和液體活檢的關注。現在，我們看到了這項投資的成果，在某些方面，液體活檢有點過度暴露。由於我們擁有非常主導的技術並且市場正在成長，我們正在從中受益，我們非常興奮我們正在其他市場嘗試做同樣的事情。

We've launched a RNASeq portfolio that is also ramping. We mentioned our MRD focus. As I mentioned in my remarks, we don't expect MRD to be a big revenue contributor this year. However, similarly to liquid biopsy, as we gain customer now, we gain pilots, and as they ramp, we see it as a future opportunities for growth. So very excited about NGS. I think, again, it's a combination of the commercial strategy we've chosen as well as a very strong technology that really brings value to our customers and we're being rewarded for it.

我們推出了 RNASeq 產品組合，該產品組合也不斷增加。我們提到了我們對 MRD 的關注。正如我在發言中提到的，我們預計 MRD 不會成為今年的主要收入貢獻者。然而，與液體活檢類似，隨著我們現在獲得客戶，我們獲得了試點，隨著它們的發展，我們將其視為未來的成長機會。對於 NGS 非常興奮。我再次認為，這是我們選擇的商業策略與非常強大的技術的結合，真正為我們的客戶帶來了價值，我們也因此獲得了回報。

Great. And then given your strong growth in Express Genes, have you been able to unlock the gene makers market at this point, or is it still mostly growth stemming from market share gains among players that we're already outsourcing?

偉大的。然後考慮到你們在 Express Genes 上的強勁增長，你們現在是否能夠打開基因製造商市場，或者它的增長仍然主要來自於我們已經外包的參與者的市場份額的增長嗎？

Yes, right now it's still mostly buyers that we're converting. However, we're seeing the beginning of conversion. The product does what it says on the tube. There's excitement with customers. We are seeing consecutive growth. And so at the same time, we said it will take some time. It's a very long tail, but we are very, very pleased with the performance of Express Gene and the Express infrastructure which enables us to launch new products at the same time.

是的，目前我們轉換的仍然主要是買家。然而，我們正在看到轉變的開始。該產品的作用正如管子上所說的那樣。顧客們都很興奮。我們看到持續成長。同時，我們說這需要一些時間。這是一條很長的尾巴，但我們對 Express Gene 和 Express 基礎設施的性能非常非常滿意，它使我們能夠同時推出新產品。

Great, thank you.

太好了，謝謝。

Steven Mah, TD Cowen.

史蒂文·馬，TD·考恩。

Great, thanks. Congrats on the quarter and thanks for the questions. So a couple questions on Express Genes. So now that you have another quarter of market data, can you give us a sense for the customer acceptance of the dynamic pricing model and how close you are to optimizing the pricing algorithm to maximize margins? And then second part of the question, can you give us a sense of the push by larger accounts wanting to trade this -- trade at fixed pricing in a subscription-like manner versus this dynamic pricing?

太好了，謝謝。恭喜本季並感謝您的提問。關於 Express Genes 有幾個問題。現在您又掌握了四分之一的市場數據，您能否讓我們了解客戶對動態定價模型的接受程度，以及您距離優化定價演算法以實現利潤最大化的目標有多遠？然後問題的第二部分，您能否讓我們了解想要進行交易的較大帳戶的推動力——以類似訂閱的方式以固定定價進行交易，而不是動態定價？

Adam, do you want to take that question?

亞當，你想回答這個問題嗎？

Yes, absolutely. Steve, thanks for the question. The team continues to execute well. So the product is doing exactly what it says in the label, which is giving us tremendous confidence taking that forward. The value proposition is resonating across all segments. And so we continue to see good adoption that's captured by obviously sequential growth in the organization. And we do continue to see the trade of volume for committed price. That does continue. It's still very early since launching the product. And this is a product that is a platform for us and it's going to be quarter by quarter execution. Again, we continue to see it with sequential growth, and that will continue as we execute into the opportunity. So customers continue to adopt more shots on goal at the price point we have with the scale that we have is very, very compelling.

是的，絕對是。史蒂夫，謝謝你的提問。該團隊繼續表現良好。因此，該產品的性能完全符合標籤上的說明，這給了我們前進的巨大信心。這一價值主張在所有細分市場中引起共鳴。因此，我們繼續看到良好的採用率，這是由組織中明顯的連續成長所體現的。我們確實繼續看到數量與承諾價格的交易。這確實繼續下去。該產品推出還為時過早。這是一個產品，對我們來說是一個平台，它將逐季度執行。再次，我們繼續看到它的連續成長，隨著我們抓住機遇，這種成長將繼續下去。因此，客戶繼續以我們現有的價格點進行更多射門，我們的規模非常非常引人注目。

Matt Larew, William Blair.

馬特拉魯，威廉布萊爾。

Hi, good morning. Obviously a couple quarters index for Express Gene, but Emily, you alluded to some newer express products as well, including most recently Express Antibodies on CHO lines. I understand it would be early days there, but in terms of what you're hearing from customers on an Express type offering for other obviously more complex products, would just be kind of curious to get any -- your early take and any metrics you're tracking around successful launches.

嗨，早安。顯然 Express Gene 有幾個季度的指數，但 Emily，您也提到了一些較新的 Express 產品，包括最近 CHO 系列上的 Express Antibodies。我知道這還為時過早，但就您從客戶那裡聽到的有關其他明顯更複雜產品的 Express 類型產品的情況來看，您會很好奇獲得任何 - 您的早期成果和您的任何指標正在追蹤成功的發布。

Yes, no, thank you for the question. For us, the Express product has always been an infrastructure play. We make now clonal genes in five days. And we always ask the questions for customers, hey, what do you do with the genes? And some customers use it as CRISPR tools, some they use it to express IgG -- since they use it to make mRNA for personalized therapy. And we're always looking for ways to add value. And we've had an IgG product line for a while, which were received and at the same time, was relatively slow compared to what customers could do themselves.

是的，不，謝謝你的提問。對我們來說，Express 產品一直是一種基礎設施。我們現在在五天內製造出克隆基因。我們總是向顧客提出問題，嘿，你用基因做什麼？有些客戶使用它作為 CRISPR 工具，有些客戶使用它來表達 IgG，因為他們使用它來製造用於個人化治療的 mRNA。我們一直在尋找增加價值的方法。我們的 IgG 產品線已經有一段時間了，收到貨後，與客戶自己做的相比，速度相對較慢。

And so when we launched the Express Gene, we always knew that we will shortly, thereafter, launch an express IgG because that is what our customers will do. And we've heard from many of them that they rather have someone else do that work than themselves. And so it's a great opportunity for the customers to free up some of their resources to do other things like the testing of IgG. And it's a great thing for us to leverage our infrastructure to do market more wallet share and be able to grow our revenue.

因此，當我們推出 Express Gene 時，我們一直知道我們很快就會推出 Express IgG，因為這就是我們的客戶將要做的事情。我們從他們中的許多人那裡聽說，他們寧願讓別人來做這項工作，而不是自己做。因此，這對客戶來說是一個很好的機會，可以釋放一些資源來進行其他事情，例如 IgG 測試。對我們來說，利用我們的基礎設施來獲得更多的錢包份額並能夠增加我們的收入是一件好事。

And in addition to launching the Express IgG, we also launched a CHO expression. Up until now, all of our expression was done in HEK slides -- HEK cell, sorry. And a lot of our customers were telling us that CHO will be well received. And so we keep increasing what we call the flavor of DNA or protein that we sell. And that really is one of the key things that is enabling us to just reach into more applications that are happening in the life science and be able to enable the customers to offload to us more of their work so that they can focus on the testing.

除了推出 Express IgG 之外，我們還推出了 CHO 表達。到目前為止，我們所有的表達都是在 HEK 玻片上完成的——HEK 細胞，抱歉。我們的許多客戶都告訴我們 CHO 會受到好評。因此，我們不斷增加我們銷售的 DNA 或蛋白質的味道。這確實是關鍵的事情之一，它使我們能夠接觸到生命科學領域正在發生的更多應用，並使客戶能夠將更多的工作交給我們，以便他們可以專注於測試。

Luke Sergott, Barclays.

盧克·瑟戈特，巴克萊銀行。

Great, thanks. I just wanted to touch on the blanket orders and how those kind of progressed in the quarter, if you guys can quantify how many you had? And then it's kind of a more long-term or medium-term question. As you progress on these blanket orders, can you give us an idea of what the conversion rate from your legacy order book is? And the fear is that you could have the conversion of the absolute dollar come in faster than the overall order book growing, and this could lead to an air pocket. So just kind of walk us through the different dynamics that you guys are seeing on the blankets.

太好了，謝謝。我只是想談談一攬子訂單以及本季的進展情況，你們能量化一下你們有多少訂單嗎？這是一個更長期或中期的問題。當您在這些一攬子訂單上取得進展時，您能否告訴我們您的舊訂單簿的轉換率是多少？人們擔心的是，絕對美元的轉換速度可能會快於整體訂單的成長速度，這可能會導致空洞。請帶我們了解你們在毯子上看到的不同動態。

Hey, Luke, this is Adam. Thank you for the question. Happy to talk through it. So just kind of taking a step back, what occurred earlier this year. I mean, obviously, we're extremely excited. We've always had blanket purchase orders in the business, and we're extremely excited to see that continue to evolve. In Q2 fiscal, for us, I call it the January effect. We did see that step up in blanket purchase orders. And I've articulated roughly an extra $10 million in blanket purchase orders versus the normal run rate of the business.

嘿，路克，這是亞當。謝謝你的提問。很高興談論它。退一步來說，今年早些時候發生的事情。我的意思是，顯然我們非常興奮。我們的業務中一直都有一攬子採購訂單，我們非常高興看到這種情況繼續發展。在第二財季，對我們來說，我稱之為一月效應。我們確實看到一攬子採購訂單的增加。我已經明確表示，與正常的業務運作率相比，一攬子採購訂單大約會額外增加 1,000 萬美元。

What we saw here in fiscal Q3 was a much more return to normal in terms of it being a normal historical trend of blanket purchase orders. So a step back from what we saw in that January effect, which, to be fair, I expect the January effect to continue in years forward because it really just shows that customers are committing to Twist long-term. In terms of conversion orders, it's not a matter of so much of if we're seeing the conversion rates, extremely high numbers, it's a matter of timing. And so one of the things that we talk about, our reps aren't incentivized for orders, they're incentivized mainly in revenue. So what we see is this is really a lead generation capability and a customer support opportunity. What we really want to do is get the first blanket purchase order and complete it and go to the next one. It's really that more of a signal of a long-term commitment. So we don't see any risk of a revenue air pocket. We've seen the sequential growth every quarter in 2024, and we expect that to continue in perpetuity here, but thanks for the question.

我們在第三財季看到的是，從整體採購訂單的正常歷史趨勢來看，情況更加恢復正常。因此，從我們在一月份的效應中看到的情況來看，公平地說，我預計一月份的效應將在未來幾年持續下去，因為它確實表明客戶致力於長期使用 Twist。就轉換訂單而言，我們是否看到轉換率、極高的數字並不是問題，而是時間問題。因此，我們談論的一件事是，我們的代表不會受到訂單的激勵，他們主要受到收入的激勵。所以我們看到這確實是一種潛在客戶開發能力和客戶支援機會。我們真正想做的是獲得第一個一攬子採購訂單並完成它，然後轉到下一個。這實際上更多是長期承諾的信號。因此，我們認為不存在任何收入空缺的風險。我們已經看到了 2024 年每個季度的環比增長，我們預計這種情況將永遠持續下去，但感謝您的提問。

Vijay Kumar, Evercore ISI.

維傑·庫馬爾，Evercore ISI。

Hey, guys. Congratulations on the nice print here. Just one on the Q4 and sort of jumping off into fiscal 2025 kind of questions. Adam, you mentioned blanket orders for normal trend levels in third quarter. Does that imply we need to be a little bit more prudent on Q4. And sort of related to that, street's modeling about 20% revenue growth for fiscal 2025. Your comps get harder. Some of your peers have spoken about macro being a little bit tougher and markets being below trend. Any preliminary thoughts on whether the street needs to be a little bit more prudent about the 20% growth for fiscal 2025? Thank you.

嘿，夥計們。恭喜您獲得了精美的印刷品。只是一個關於第四季的問題，有點跳到 2025 財年之類的問題。亞當，您提到了第三季正常趨勢水準的總訂單。這是否意味著我們需要在第四季更加謹慎。與此相關的是，Street 預測 2025 財年的營收成長約為 20%。你的比賽變得更加困難。您的一些同行已經談到宏觀政策有點強硬，市場低於趨勢。對於華爾街是否需要對 2025 財年 20% 的成長更加謹慎一點，有什麼初步想法嗎？謝謝。

Vijay, thanks for the question. And no, it's definitely something we're talking a lot about right now internally, we're building our plans for 2025. But let's talk about 2024. I know we just gave the print on the full-year guidance and the Q4 guidance. We have a step up across the range in terms of our guides for the quarter. We're expecting sequential growth across the business, Q3 to Q4. So I think the strength continues and the momentum continues as we're ending out our fiscal year.

維傑，謝謝你的提問。不，這絕對是我們現在在內部經常討論的事情，我們正在製定 2025 年的計劃。但我們來談談 2024 年。我知道我們剛剛發布了全年指導和第四季度指導。就本季的指南而言，我們在整個範圍內取得了進步。我們預計第三季至第四季整個業務將實現環比成長。因此，我認為隨著我們的財政年度即將結束，這種力量和勢頭仍在繼續。

I'm not going to give a lot of color on 2025, we're still working through the plans. But I can say when we are feeling very confident about the business, we expect to see sequential growth continue in the business. And really what it comes down to is, Emily, talking to, it's the dynamic of we expect to continue to take share and where we see low to mid-single-digit category growth in certain areas and we're significantly exceeding that. We don't expect a trend to decrease in terms of our sequential growth. We expect that to continue. Obviously, we'll give more color as we get into fiscal 2025 when we sit down in November. But thanks for the question.

我不會對 2025 年給予太多說明，我們仍在製定計劃。但我可以說，當我們對業務非常有信心時，我們預計業務將繼續持續成長。艾米莉說，真正的問題是，我們期望繼續佔據份額，我們看到某些領域的低至中個位數類別成長，而且我們大大超過了這個數字。我們預計環比成長不會出現下降趨勢。我們預計這種情況會持續下去。顯然，當我們在 11 月坐下來時，我們將在進入 2025 財年時提供更多資訊。但謝謝你的提問。

Sung-Ji Nam, Scotiabank.

Sung-Ji Nam，豐業銀行。

Hi. Thanks for taking the question and congrats on the quarter. Just following up on an earlier question for your next-generation sequencing or NGS business obviously doing well there. But given that there has been kind of capital spending constraints across the NGS players, delays in some large-scale projects, et cetera, I was just kind of curious if you're starting to see any (technical difficulty) funnel at all.

你好。感謝您提出問題並祝賀本季。只是跟進之前關於您的下一代測序或 NGS 業務的問題，顯然在那裡做得很好。但考慮到 NGS 參與者存在某種資本支出限制、一些大型專案的延誤等等，我只是好奇你是否開始看到任何（技術難度）漏斗。

And then just a quick follow-up after that. In terms of your -- for the liquid biopsy-based business, if you're continuing to see a lot of smaller early-stage players target? Or do you feel the market has kind of stabilized to kind of the large players?

之後就是快速跟進。就基於液體活檢的業務而言，您是否繼續看到許多較小的早期參與者的目標？或者您認為市場已經穩定到大型企業的水平？

Thanks for the question. It's Patty here. I think what we're seeing is really the power of our platform in the market segment. I think when budgets are tough, Twist value resonates even stronger than anybody else out there. And it really is about maximizing the use of your sequencing platforms. I think that's what we truly enable. And so, therefore, I think that's allowed us to execute well into the opportunity.

謝謝你的提問。帕蒂在這裡。我認為我們所看到的確實是我們平台在細分市場中的力量。我認為，當預算緊張時，Twist 的價值比其他任何人都更能引起共鳴。這實際上是為了最大限度地利用測序平台。我認為這才是我們真正能夠實現的。因此，我認為這使我們能夠很好地抓住這個機會。

I think in the second part, just continuing to talk about scale and the opportunity to work with new customers, I think it's a feature that's often overlooked in our platform. It scales in many, many directions. For the R&D scientists, they can quickly do work to develop new product, new panels, and then we'll be there with the customer as the new panel or new product scales up towards the manufacturing or their future goals. So we like our position. And yes, although the market is tough, there's always opportunity to execute into. And when you partner that with excellence in commercial execution for every touch point for the customer, then we continue to be optimistic and confident going forward.

我認為在第二部分中，繼續討論規模和與新客戶合作的機會，我認為這是我們平台中經常被忽視的功能。它可以朝很多很多方向擴展。對於研發科學家來說，他們可以快速開發新產品、新面板，然後當新面板或新產品向製造或他們的未來目標擴大規模時，我們將與客戶在一起。所以我們喜歡我們的立場。是的，儘管市場艱難，但總有執行的機會。當您在客戶的每個接觸點上與卓越的商業執行合作時，我們將繼續保持樂觀和自信地前進。

Subbu Nambi, Guggenheim Securities.

Subbu Nambi，古根漢證券。

Hey, guys, thank you for taking my question. Realizing book to bill is an intra-quarter metric, if I have this right, SynBio book to bill decreased from 1.5 to 1.0. Is this just seasonality, something else, or the large order you mentioned, is it related to China softness? And which segment is China revenue most concentrated in? Thank you.

嘿，夥計們，謝謝你們回答我的問題。實現帳面比是季度內指標，如果我沒說錯的話，SynBio 帳面比從 1.5 下降到 1.0。這只是季節性因素，還是其他原因，或你提到的大訂單，是否與中國疲軟有關？中國收入最集中在哪個領域？謝謝。

Adam?

亞當？

Yes, and Subbu, thank you for the question. I'm excited to take it. In terms of book to bill, that seasonality of orders that we talked about from the, I'll call it the January effect, is real. So you're going to see some noise coming there, particularly on the SynBio side of the business, because that's where most of that step-up in blanket purchase orders occurred. So we'd expect that seasonality to continue every year moving forward. In terms of the China business, and you'll see this in Q from last quarter and you'll see it again when we put the printout this quarter. It's less than $2 million of revenue a quarter for us in China.

是的，Subbu，謝謝你的提問。我很高興接受它。就訂單到帳單而言，我們所討論的訂單季節性（我稱之為一月效應）是真實存在的。因此，你會看到一些噪音傳來，特別是在合成生物業務方面，因為這是大部分一攬子採購訂單增加的地方。因此，我們預計這種季節性將每年持續下去。就中國業務而言，您將在上個季度的季度中看到這一點，當我們在本季度發布列印輸出時，您將再次看到這一點。我們在中國每季的營收不到 200 萬美元。

It's relatively stable. Obviously, there's a lot of folks dealing with headwinds, but when it's low to mid-single digits a percent of the business, it's not something we're terribly concerned about. We do see an opportunity long term, but we aren't seeing significant effects of the headwinds. I will say most of our business in China, it is spread across both sides of SynBio and NGS, but there's definitely a propensity towards the NGS side. But thanks for the question.

是比較穩定的。顯然，有很多人面臨逆風，但當逆風只佔業務的百分之一到中個位數時，這並不是我們非常擔心的事情。我們確實看到了長期的機會，但我們沒有看到逆風的重大影響。我想說的是，我們在中國的大部分業務都分佈在 SynBio 和 NGS 兩方面，但肯定有偏向 NGS 方面的傾向。但謝謝你的提問。

Puneet Souda, Leerink Partners.

Puneet Souda，Leerink 合夥人。

Yes, hi, Emily and team. Thanks for taking my questions. I appreciate the comments that you have on the overall growth with Express Genes, that's in SynBio. You're building more products on top of that in your guide. But when we look at your guide, it does imply a step down in the fourth quarter for SynBio. You talked about blanket purchase orders last quarter in SynBio, and there was a significant pickup in those orders last quarter. So I mean, I hear some of the comments are on that, that it is more -- going to be more normalized. So just sort of trying to understand given that backdrop, why are these blanket purchase orders or the order momentum stepping down so quickly in the quarter? Is there a different pattern you're seeing from the customers or competitive response in the market?

是的，嗨，艾米麗和團隊。感謝您回答我的問題。我感謝您對 SynBio 中 Express Genes 整體成長的評論。您正在指南中的基礎上建立更多產品。但當我們查看您的指南時，它確實意味著 SynBio 在第四季度有所下降。您談到了 SynBio 上季的一攬子採購訂單，上季這些訂單大幅增加。所以我的意思是，我聽到一些評論是關於這一點的，那就是它會更加正常化。因此，我們想了解一下，在這種背景下，為什麼這些一攬子採購訂單或訂單動能在本季如此迅速下降？您從客戶或市場競爭反應中看到了不同的模式嗎？

No, Puneet, this is Adam. I'm happy to take the question here. And I think we mentioned it on the pre-record, but really the dynamic we're seeing in this quarter, particularly when we go into Q4, is one particular contracted customer had a pretty significant set of order volume in Q2 and Q3. That customer is taking a step down in Q4. It's factored into my guide. And for me, I just don't want to get over my skis on any particular quarter. So we're factoring that in.

不，普尼特，這是亞當。我很高興在這裡回答這個問題。我認為我們在預記錄中提到了這一點，但實際上我們在本季度看到的動態，特別是當我們進入第四季度時，是一個特定的簽約客戶在第二季度和第三季度擁有相當大的訂單量。該客戶將在第四季退出。它已納入我的指南中。對我來說，我只是不想在任何特定的季度超過我的滑雪板。所以我們將其考慮在內。

We're seeing sequential growth across the business from customers. We're seeing a step up in the total number of customers ordering each quarter. We're also seeing a step up quarter on quarter in the SynBio business in terms of the revenue excluding for that one customer. So we're feeling pretty good about it. But obviously, given the nature of our base, there will be customers that have challenges and we're here to support them. But it's not going to affect the overall growth.

我們看到整個業務的客戶數量持續成長。我們看到每季訂購的客戶總數增加。我們也看到 SynBio 業務的營收（不包括該客戶）逐季有所成長。所以我們對此感覺很好。但顯然，考慮到我們基地的性質，有些客戶會面臨挑戰，而我們會為他們提供支援。但這不會影響整體成長。

Tom Peterson, Baird.

湯姆·彼得森，貝爾德。

Hi, everyone, congrats on solid print, and thanks for taking my questions. Maybe just one from me. Given the guide for the adjusted EBITDA loss of about $20 million here in the fiscal fourth quarter, can you just give us some sense to think about how we should be thinking of adjusted EBITDA loss in fiscal 2025? Would you expect quarterly improvements off that $20 million figure? And just think about -- help us think about pacing on the adjusted EBITDA trajectory.

大家好，恭喜您獲得純色印刷，並感謝您回答我的問題。也許只是我的一件。鑑於第四財季調整後 EBITDA 損失約為 2000 萬美元，您能否給我們一些啟發，讓我們思考一下我們應該如何考慮 2025 財年調整後 EBITDA 損失？您預計 2000 萬美元的數字會有所改善嗎？想想看——幫助我們思考調整後的 EBITDA 軌跡的節奏。

This is Adam and thanks for the question. Yes, we're very laser-focused on our north star of the path to profitability. It's been for me, about six months in the chair now, it's really important as an organization that we're focused on our three key priorities, driving growth, driving gross margin, and ensuring that we have that path to profitability without needing to ever go back to the market for a future equity raise. That's been kind of the standing mantra and the charge of the organization. We've been looking at the $20 million adjusted EBITDA loss as an important marker in Q4. We don't see that as a stopping point, but really a jumping off point for continued sequential improvements as we move forward.

我是亞當，謝謝你的提問。是的，我們非常專注於獲利之路上的北極星。對我來說，擔任主席大約六個月了，作為一個組織，我們專注於三個關鍵優先事項，這非常重要：推動成長、提高毛利率，並確保我們擁有盈利之路，而無需永遠返回市場進行未來的股權融資。這是該組織的一貫口號和職責。我們一直將 2000 萬美元的調整後 EBITDA 損失視為第四季度的一個重要指標。我們並不認為這是一個停止點，而實際上是我們前進過程中持續連續改進的起點。

Again, I mentioned earlier in the call we'll spend more time talking about the 2025 guide, but I expect that path to profit focus and that the organizational energy to continue to just be laser-focused on that moving forward. So more to come as we get together at the end of the year. Thanks.

我再次在電話會議中提到，我們將花更多時間討論 2025 年指南，但我預計利潤重點的路徑以及組織的精力將繼續專注於向前發展。當我們在年底相聚時，還會有更多的事情發生。謝謝。

Tom DeBourcy, Nephron Research.

湯姆‧德布西 (Tom DeBourcy)，腎臟單位研究中心。

Hi. Thanks for taking the question. Just going to combine two questions here. So the first one is on BioSecure and we've heard from both academic and pharma customers that -- can you hear me? I'm sorry.

你好。感謝您提出問題。只是要在這裡合併兩個問題。第一個是在 BioSecure 上，我們從學術界和製藥客戶那裡聽到——你能聽到我嗎？對不起。

We can hear you.

我們能聽到你的聲音。

Okay. Sorry. We've heard from academic and pharma customers that there is concern about moving proprietary products for synthesis into China. And so whether that's a tailwind for you, being based in the United States. And the second question is just on CapEx of $13 million, and just is this approximately the level of maintenance CapEx that you would expect going forward? That's it for me. Thanks.

好的。對不起。我們從學術界和製藥客戶那裡聽說，人們對將用於合成的專有產品轉移到中國感到擔憂。那麼對於總部設在美國的你來說，這是否是順風車呢？第二個問題是 1300 萬美元的資本支出，這大約是您期望的未來維護資本支出水準嗎？對我來說就是這樣。謝謝。

Thank you. I'll take the first question, I'll let Adam answer the CapEx question. On the BioSecure, we've expressed in the past that, yes, it's probably a geopolitical headwind for our competitors that are not building DNA in the US. At the same time, it is hard to predict an act of Congress. So our view is that we will be on the merits, our products and on their own, for speed, scale, quality, price, added features, and so on, the entire user experience. So our views that we will take market share and we'll win, and it is possible that BioSecure headwinds for competitors will accelerate the timeline. We already saw it. And at the same time we are very strongly focused on execution and providing the best user experience to our customers. Adam, you want to take the CapEx question?

謝謝。我將回答第一個問題，我將讓 Adam 回答資本支出問題。關於 BioSecure，我們過去曾表示，是的，對於我們不在美國建造 DNA 的競爭對手來說，這可能是一種地緣政治逆風。同時，很難預測國會的行動。所以我們的觀點是，我們將根據我們的產品和自身的優點，針對速度、規模、品質、價格、附加功能等等，整個使用者體驗。因此，我們認為我們將佔據市場份額並獲勝，而 BioSecure 對競爭對手的不利因素可能會加快時間表。我們已經看到了。同時，我們非常注重執行並為客戶提供最佳的使用者體驗。Adam，您想回答資本支出問題嗎？

Absolutely, no, and Tom, thanks for the question. We are seeing a pretty light year in CapEx this year. So far. I think we're running just north of $3 million year to date. I do see a potential step up beyond the $13 million in 2025 and beyond. But the modest amount of I think we guided the beginning of this year closer to $20 million. So those kind of numbers wouldn't surprise me. That being said, we currently have about $30 million to $35 million a year in depreciation today. I don't expect that to increase. I expect that to be roughly holding flat or stepping down as we move forward over the long run.

絕對不，湯姆，謝謝你的提問。今年我們看到資本支出相當輕鬆。迄今為止。我認為今年迄今為止我們的營運成本已超過 300 萬美元。我確實認為 2025 年及以後可能會突破 1300 萬美元。但我認為今年年初我們指導的金額接近 2000 萬美元。所以這些數字不會讓我感到驚訝。話雖如此，目前我們每年的折舊金額約為 3,000 萬至 3,500 萬美元。我預計這一數字不會增加。我預計，從長遠來看，隨著我們的前進，這一數字將大致保持不變或下降。

Thank you, Adam. And to add to my previous answer, so just a quick clarification that BioSecure is actually nothing focused on DNA synthesis. It's focused on genetic analysis and bioprocessing. There was a letter from the Select Committee in China to asking the FBI to investigate some of our Chinese competitors. So there is some geopolitical headwinds. But to be clear, DNA synthesis itself is not part of BioSecure at this point.

謝謝你，亞當。補充我之前的回答，快速澄清一下 BioSecure 實際上並不專注於 DNA 合成。它專注於遺傳分析和生物加工。中國特別委員會寄來一封信，要求聯邦調查局調查我們一些中國的競爭對手。因此存在一些地緣政治阻力。但要先明確的是，DNA 合成本身目前還不是 BioSecure 的一部分。

Thank you. And I'm showing no further questions in the queue at this time. I will now turn the call back over to Dr. Emily Leproust for any closing remarks.

謝謝。目前我在隊列中沒有顯示任何其他問題。現在，我將把電話轉回給 Emily Leproust 博士，讓其發表結束語。

In closing, we are very confident in the continued impact and growth opportunities generated from our proprietary DNA synthesis platform. Our growing customer base, our increasing revenue profile, our defining product portfolio, and, of course, our exceptional employees positively move the needle for our customers across multiple industries. Thank you.

最後，我們對我們專有的 DNA 合成平台產生的持續影響和成長機會非常有信心。我們不斷成長的客戶群、不斷成長的收入狀況、我們定義的產品組合，當然還有我們優秀的員工，為我們跨多個行業的客戶帶來了積極的推動。謝謝。

Ladies and gentlemen, that does our conference for today. Thank you for your participation. You may now disconnect.

女士們、先生們，我們今天的會議到此結束。感謝您的參與。您現在可以斷開連線。