{ "docId": "019dd923-622c-750b-8b9a-4b91788fc785", "docSlug": "5fadb686cc03", "documentTitle": "Twist Bioscience (TWST)", "authorId": "58_Scorpion_Capital", "authorName": "Scorpion Capital", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2022-11-15 00:00:00", "orientation": "landscape", "aspectRatio": 1.2941177, "pageNumber": 112, "pageCount": 236, "prevPage": 111, "nextPage": 113, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 4, "notes": "The slide uses highlighted text to draw attention to specific claims about gross margin improvements and guidance.", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-4b91788fc785/112", "deckHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785#slide-112", "components": [ { "bbox": null, "kind": "callout", "text": "We think that Twist has every motive to fabricate its reported gross margin.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0932-77cf-bfed-5bb062a7afba", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.85, "x": 0.05, "y": 0.6 }, "kind": "list", "text": "Aug 1, 2019 press release: “…commented Jim Thorburn, CFO of Twist. “In addition, we delivered continued improvements in our gross margin, which increased to 16 percent of revenue in the third quarter…”", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5b92239a-90db-4eb5-bb62-4e5a4fcf234c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.85, "x": 0.05, "y": 0.48 }, "kind": "list", "text": "April 30, 2019 press release: “Leproust continued, “This quarter, we reported a positive gross margin of $1.8 million, and we expect to continue to improve our operational synergies…”", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9f8172d2-b4c3-4d12-81af-55b7acc59930", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.85, "x": 0.05, "y": 0.86 }, "kind": "list", "text": "Nov 23, 2020 press release: Fiscal 2021 Financial Guidance…Gross margin is expected to be approximately 32% for fiscal 2021", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "abb8f702-c09f-4dc9-9ef4-2f2b970da82d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.85, "x": 0.05, "y": 0.72 }, "kind": "list", "text": "Dec 11, 2019 press release: “We posted a positive 21% gross margin for the fiscal 2019 fourth quarter and 13% for the full year as our revenue scaled and we leveraged our cost structure,” commented Jim Thorburn, CFO of Twist… “Financial Guidance…Gross margin is expected to be approximately 32% for fiscal 2020”", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f3992f31-5807-416e-99ec-09644e9b7ce9", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "gross margin", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-0932-77cf-bfed-6257ed95d0a9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "paragraph", "text": "We think that Twist has every motive to fabricate its reported gross margin. Its stock price and ability to stay alive via frequent capital raises hinge on two metrics: revenue growth and gross margin. With stratospheric losses since inception and profitability nowhere in sight, Twist has only the usual carrot that keeps growth investors around: the eternal promise of operating leverage and profitability “at scale.” A rapidly improving gross margin is therefore essential to luring new money. Gross margin achievements feature prominently in Twist’s earnings releases and financial guidance, particularly after the company began providing annual gross margin guidance in 2019 – again illustrating its importance to the narrative.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "66d0a843-938f-481b-b1d3-f8373790604e", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"This quarter, we reported a positive gross margin of $1.8 million, and we expect to continue to improve our operational synergies...\" — Leproust, April 30, 2019 press release. \"In addition, we delivered continued improvements in our gross margin, which increased to 16 percent of revenue in the third quarter...\" — Jim Thorburn, CFO of Twist, Aug 1, 2019 press release. \"We posted a positive 21% gross margin for the fiscal 2019 fourth quarter and 13% for the full year as our revenue scaled and we leveraged our cost structure,\" — Jim Thorburn, CFO of Twist, Dec 11, 2019 press release.", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0932-77cf-bfed-5d0f1f831c08", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "f35cbf3c-176c-4e23-86a8-881aa955827b", "evidence": "The slide explicitly claims the company has a motive to fabricate financial metrics.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }