Twist Bioscience Corporation (NASDAQ:TWST) Q3 2024 Earnings Conference Call August 2, 2024 8:00 AM ET Company Participants Angela Bitting - Senior Vice President, Corporate Affairs Emily Leproust - Chief Executive Officer & Co-Founder Adam Laponis - Chief Financial Officer Patrick Finn - President and COO Conference Call Participants Steven Mah - Cowen Matt Larew - William Blair Luke Sergott - Barclays Vijay Kumar - Evercore ISI Sung-Ji Nam - Scotiabank Subbu Nambi - Guggenheim Securities Puneet Souda - Lee ...

Twist Bioscience (TWST) came out with a quarterly loss of $0.86 per share versus the Zacks Consensus Estimate of a loss of $0.79. This compares to loss of $1.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -8.86%. A quarter ago, it was expected that this maker of synthetic DNA for the biotechnology industry would post a loss of $0.84 per share when it actually produced a loss of $0.79, delivering a surprise of 5.95%. Over ...

Financial Performance - Record revenue of $81.5 million in Q3 FY24, a 28% increase from $63.7 million in Q3 FY23[1] - Gross margin improved to 43.3% in Q3 FY24, up approximately 900 basis points from 34.4% in Q3 FY23[1] - Total orders received for Q3 FY24 grew to $85.3 million compared to $63.8 million in Q3 FY23[3] - SynBio revenue increased to $33.0 million in Q3 FY24 from $25.9 million in Q3 FY23, representing a growth of 27%[4] - NGS revenue rose to $43.4 million in Q3 FY24 from $33.2 million in Q3 FY23, indicating a growth of 31%[4] - Updated FY 2024 revenue guidance increased to approximately $310 million to $311 million, reflecting a year-over-year growth of about 27%[7] - Adjusted EBITDA loss for Q3 FY24 was $(22.0) million, an improvement from $(29.6) million in Q3 FY23[4] - Revenues for the three months ended June 30, 2024, were $81,464,000, a 28% increase from $63,740,000 in the same period of 2023[14] - Adjusted EBITDA for the three months ended June 30, 2024, was $(21,957,000), an improvement from $(29,604,000) in the same period of 2023[16] Expenses and Losses - Total operating expenses for the three months ended June 30, 2024, were $170,386,000, up from $124,521,000 in the prior year, representing a 37% increase[14] - Net loss attributable to common stockholders for the three months ended June 30, 2024, was $85,571,000, compared to a net loss of $57,395,000 for the same period in 2023[14] - Cost of revenues for the three months ended June 30, 2024, was $46,193,000, compared to $41,845,000 in the same period of 2023, reflecting a 10% increase[14] - Research and development expenses for the three months ended June 30, 2024, were $22,469,000, a decrease from $24,528,000 in the same period of 2023[14] - Selling, general and administrative expenses increased to $56,794,000 for the three months ended June 30, 2024, from $46,057,000 in the same period of 2023, marking a 23% increase[14] Cash and Assets - Cash position as of June 30, 2024, was $289.4 million, a decrease of approximately $4 million from the previous quarter[4] - Cash and cash equivalents as of June 30, 2024, were $239,142,000, down from $286,470,000 as of September 30, 2023[15] - Total assets decreased to $638,118,000 as of June 30, 2024, from $776,403,000 as of September 30, 2023[15] - Total stockholders' equity decreased to $491,139,000 as of June 30, 2024, from $623,432,000 as of September 30, 2023[15] Product Development - Company plans to achieve a gross margin over 50% by the end of FY 2025[2] - Launched new products including Twist Express Antibodies and Multiplexed Gene Fragments, enhancing product portfolio[6]

Company Overview - Twist Bioscience (TWST) is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended June 2024, with a consensus outlook suggesting a quarterly loss of $0.79 per share, reflecting a +21.8% change from the previous year [1][3]. Earnings Expectations - The consensus revenue estimate for Twist Bioscience is projected at $77.01 million, which represents a 20.8% increase compared to the same quarter last year [14]. - The consensus EPS estimate has been revised 0.44% higher over the last 30 days, indicating a positive reassessment by analysts [14]. Earnings Surprise Prediction - Twist Bioscience has an Earnings ESP (Expected Surprise Prediction) of +1.68%, suggesting a likelihood of beating the consensus EPS estimate [7][8]. - The company has a strong earnings surprise history, having beaten consensus EPS estimates in the last four quarters [10][18]. Analyst Sentiment - Analysts have recently become more optimistic about Twist Bioscience's earnings prospects, as indicated by the Most Accurate Estimate being higher than the Zacks Consensus Estimate [7]. - The company currently holds a Zacks Rank of 3 (Hold), which may complicate predictions regarding its ability to beat the consensus EPS estimate [12][17]. Industry Context - In the broader context of the Zacks Medical - Biomedical and Genetics industry, other companies like Vertex Pharmaceuticals (VRTX) are also expected to report earnings, with a significant year-over-year decline in EPS estimates [23].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Analysis: Twist Bioscience (TWST) - Twist Bioscience has a Momentum Style Score of B, indicating a positive momentum outlook [3] - The company currently holds a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [4] - Over the past week, TWST shares increased by 10.95%, significantly outperforming the Zacks Medical - Biomedical and Genetics industry, which rose by only 0.28% [6] - In a longer timeframe, TWST shares have gained 195.17% over the past year, compared to the S&P 500's increase of 28.67% [7] - The average 20-day trading volume for TWST is 1,303,897 shares, indicating a bullish sentiment as the stock is rising with above-average volume [8] Earnings Outlook - In the last two months, two earnings estimates for TWST have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from -$3.17 to -$3.12 [10] - For the next fiscal year, two estimates have also moved upwards without any downward revisions, reflecting a positive earnings outlook [10] Conclusion - Given the positive momentum indicators and earnings outlook, TWST is positioned as a strong candidate for investors seeking momentum stocks [11]

Financial Data and Key Metrics Changes - Revenue for the second quarter increased to $75.3 million, representing a 25% year-over-year growth and approximately 5% sequentially [44] - Gross margin for the second quarter came in higher than expected at 41%, with a significant contribution from Express Genes and NGS [44][50] - The company anticipates gross margin to exceed 50% by the end of fiscal 2025 [42][31] Business Line Data and Key Metrics Changes - SynBio revenue increased to $29.8 million, growing 24% year-over-year, with orders rising to $44.9 million [45] - NGS revenue grew to approximately $40.8 million, a 40% increase year-over-year, with orders increasing to $42.5 million [46] - Biopharma revenue was $4.7 million, with orders increasing to $5.8 million [41] Market Data and Key Metrics Changes - Healthcare revenue rose to $40.9 million, reflecting increased uptake by pharma, biotech, and diagnostic companies [48] - Industrial chemical revenue increased to $20.3 million, up from $14.4 million year-over-year [48] - Academic revenue was $13.7 million, up from $11.1 million, driven by growth in both SynBio and NGS customers [48] Company Strategy and Development Direction - The company is focused on expanding its synthetic biology, NGS, biopharma, and data storage segments, leveraging its proprietary DNA synthesis platform [62] - A marketing campaign for Express Gene was launched to attract customers from competitors, with a goal to capture a larger market share [32] - The company is negotiating contracts with suppliers and customers to provide volume commitments and fixed premium pricing, which is expected to enhance margins [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market potential for liquid biopsy applications, indicating significant growth opportunities [68] - The company noted that the increase in blanket purchase orders reflects customer confidence in their offerings, particularly Express Genes [71] - Management highlighted the importance of maintaining financial discipline and the path to profitability, with expectations for improved adjusted EBITDA in future quarters [54][58] Other Important Information - The company shipped to 2,253 customers during the second quarter and ended with approximately $292 million in cash and short-term investments [44] - Operating expenses for the second quarter were $124.2 million, with a net loss attributable to common stockholders of $45.5 million [57] Q&A Session Summary Question: Can you provide insights on the customer feedback regarding dynamic pricing? - Management indicated that there has been no negative feedback on premium pricing, with customers willing to provide volume commitments in exchange for fixed pricing [1] Question: What is the profile of the 100 net new accounts for Express Gene? - The new accounts are a mix of large and small pharma customers, with a significant number being academic groups [5] Question: How is the onboarding of new business development hires progressing? - Management confirmed that the team is in place, and while not fully ramped, they are optimistic about market opportunities and growth potential [10] Question: What are the expectations for Express Gene's contribution to margins? - Management noted that while Express Gene's contribution is still early, it is expected to positively impact gross margins as the year progresses [65] Question: Were there any one-time factors affecting the order trends this quarter? - Management clarified that the increase in orders was driven by a higher number of blanket purchase orders, reflecting customer confidence in their offerings [71]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38720 Twist Bioscience Corporation (Exact Name of Registrant as Specified in its Charter) Delaware 46-2058888 ...

Exhibit 99.1 Twist Bioscience Reports Fiscal Second Quarter 2024 Financial Results – Record revenue of $75.3M in 2QFY24, an increase of 25% over $60.2M in 2QFY23 – – Orders increased to $93.2M in 2QFY24, growth of 45% over $64.2M in 2QFY23 – — Increased FY 2024 revenue guidance to a range of $300M to $304M; Increased FY 2024 gross margin guidance to a range of 41.5 to 42.0% — — Company to host conference call today at 4:30 p.m. Eastern Time — SOUTH SAN FRANCISCO, Calif. -- (May 2, 2024) — Twist Bioscience C ...

SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Twist Bioscience Corporation (NASDAQ: TWST), a company enabling customers to succeed through its offering of high-quality synthetic DNA using its silicon platform, today announced that its executives will participate in fireside chats at the following upcoming investor conferences: Patrick Finn, Ph.D., president and COO, and Adam Laponis, CFO, will participate in a fireside chat at the TD Cowen 44th Annual Health Care Conference on Tuesday, March 5 in Boston, ...

Yuichiro Chino/Moment via Getty Images Twist Bioscience (NASDAQ:TWST) recently reported strong results in Q1 FY2024, particularly given how tepid the demand environment is. While some of this strength is a mirage created by lumpy NGS revenue, Twist's business continues to scale and progress towards cash flow breakeven. The stock may not look particularly cheap given its rise over the past 3 months, but it should be kept in mind that both the Biopharma and Data Storage businesses have significant potenti ...