Alpha Teknova, Inc.

Thank you for standing by, and welcome to Technova's fourth quarter and four-year 2022 financial results call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. I would now like to hand the call over to Senior Vice President of Marketing, Jen Henry. Please go ahead.

Thank you, Operator. Welcome to Technova's fourth quarter and full year 2022 earnings conference call. With me on today's call are Stephen Gunstream, Technova's President and Chief Executive Officer, and Matt Lowell, Technova's Chief Financial Officer, who will make prepared remarks and then take your questions. As a reminder, the forward-looking statements that we make during this call, including those regarding business goals and the expectations for the financial performance of the company, are subject to risks and uncertainties that may cause actual events or results to differ. Additional information concerning these risk factors is included in the press release the company issued earlier today, and they are more fully described in the company's various filings with the SEC. Today's comments reflect the company's current views, which could change as a result of new information, future events, or other factors. and the company does not obligate or commit itself to update its forward-looking statements except as required by law. The company's management believes that, in addition to GAAP results, non-GAAP financial measures can provide meaningful insight when evaluating the company's financial performance and the effectiveness of its business strategies. During this call, we will therefore use non-GAAP financial measures of certain of our results. Reconciliations of GAAP to non-GAAP financial measures are included in the press release that we issued this afternoon, which is posted to Technova's website and at www.sec.gov. Non-GAAP financial measures should always be considered only as a supplement to, and not as a substitute for, or as superior to, financial measures prepared in accordance with GAAP. These non-GAAP financial measures in this presentation may differ from similarly named non-GAAP financial measures used by other companies. Please also be advised that the company has posted a supplemental slide deck to accompany today's prepared remarks. It can be accessed on the investor relations section of Technova's website and on today's webcast. And now I will turn the call over to Stephen.

Thank you, Jen. Good afternoon and thank you everyone for joining us for our fourth quarter and full year 2022 earnings call. Technova is a leading producer of critical reagents for the life sciences industry to accelerate the introduction of novel therapies, vaccines, and molecular diagnostics that will help people live longer, healthier lives. We manufacture high quality customer agents with short turnaround times and are positioned to scale with our customers as they advance their products from discovery to commercialization. In 2021, we presented a strategy to position the company for sustainable accelerated growth through investments in capacity expansion, commercial excellence, and scientific innovation. I'm pleased to report that we are effectively executing to that plan. First, our new state-of-the-art modular manufacturing facility became operational at the end of 2022 for research grade production and is on track for GMP production by mid-2023. In addition, we've modernized our supporting infrastructure to scale the business for years to come, including a new ERP system, an updated quality system, and the introduction of highly automated reagent manufacturing equipment. We believe these investments, plus our existing infrastructure, will give us the capacity to deliver approximately $200 million in annual product revenue when fully utilized. Second, In 2020, I hired the first two dedicated field sales representatives at Technova in what was the beginning of our commercial investment. I'm pleased to report we are now fully operational from a commercial and marketing perspective, including implementation of backend systems and processes such as Salesforce.com, automated marketing, and an e-commerce engine. Sales and marketing associates have been onboarded and are already driving demand for custom and GMP-grade reagents. Early indicators demonstrate our ability to move our catalog customers into our custom and clinical solutions products. Today, more than 76% of our annual revenue is generated from customers who purchase custom and or GMP-grade reagents, compared to 68% in 2020. Of those, 56 of our approximately 100 cell and gene therapy accounts now purchase custom and or GMP-grade reagents, compared to 32 in 2020. These cell and gene therapy customers today represent approximately 25% of our annual revenue. Lastly, on the R&D front, we have made great progress advancing our new product pipeline. In Q4, we introduced an early access program for two novel products intended to streamline downstream gene therapy process development, and we now have several customers enrolled in that program. On a related note, today we announced a collaboration arrangement with Sartorius via Separations, which is part of the international life science group Sartorius to help our customers improve their AAV purification processes with one of our early access products. Matt will provide specific comments on our guidance, but I want to give an update on some of the trends we continue to see in the market and some thoughts on what we are anticipating in 2023. With the certification of our new facility to produce GMP grade reagents anticipated in the middle of this year, and the recent strategic investments we have made to expand our commercial and marketing teams, we believe we are well positioned for future growth. For the next several quarters, however, we anticipate continued headwinds associated with limited demand from early-stage biopharma customers, which we expect to be partially offset by growth in other markets. Nevertheless, we remain optimistic about the long-term potential of early-stage biopharma. We continue to engage with these customers, including with those who have deferred orders, while establishing a strong pipeline of opportunities that we believe may begin to generate additional revenue in mid to late 2023. I will now hand the call over to Matt for a discussion of the financials.