Part I. Financial Information [Unaudited Financial Statements](index=7&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) This section presents Twist Bioscience Corporation's unaudited condensed consolidated financial statements for the quarter ended December 31, 2024, including balance sheets, statements of operations, stockholders' equity, cash flows, and notes [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2024, total assets were $608.6 million, total liabilities increased to $152.6 million due to a new future revenue liability, and total stockholders' equity decreased to $455.9 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | Dec 31, 2024 (in thousands) | Sep 30, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $221,403 | $226,316 | | Total current assets | $345,309 | $346,776 | | **Total assets** | **$608,580** | **$614,323** | | Total current liabilities | $69,646 | $71,006 | | Liability related to the sale of future revenue | $15,000 | $0 | | **Total liabilities** | **$152,639** | **$141,634** | | **Total stockholders' equity** | **$455,941** | **$472,689** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the three months ended December 31, 2024, revenues increased 24% to $88.7 million, loss from operations narrowed to $34.6 million, and net loss improved to $31.6 million or ($0.53) per share Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 FY2025 (ended Dec 31, 2024, in thousands) | Q1 FY2024 (ended Dec 31, 2023, in thousands) | | :--- | :--- | :--- | | **Revenues** | **$88,713** | **$71,498** | | Cost of revenues | $45,873 | $42,536 | | Total operating expenses | $123,357 | $118,475 | | **Loss from operations** | **($34,644)** | **($46,977)** | | **Net loss** | **($31,594)** | **($43,008)** | | **Net loss per share, basic and diluted** | **($0.53)** | **($0.75)** | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended December 31, 2024, net cash used in operations was $21.4 million, investing activities used $1.5 million, and financing activities provided $17.9 million, resulting in a $5.1 million net decrease in cash Cash Flow Summary (in thousands) | Cash Flow Activity | Three months ended Dec 31, 2024 (in thousands) | Three months ended Dec 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | ($21,428) | ($22,973) | | Net cash (used in) provided by investing activities | ($1,536) | $4,165 | | Net cash provided by (used in) financing activities | $17,944 | ($1,473) | | **Net decrease in cash, cash equivalents, and restricted cash** | **($5,073)** | **($20,165)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, financial position, revenue disaggregation, a new future revenue liability, lease obligations, and ongoing legal proceedings, confirming sufficient cash for at least one year of operations - The company believes its current cash, cash equivalents, and short-term investments are **sufficient to fund operations for at least one year** from the financial statement issuance date[28](index=28&type=chunk) - On October 21, 2024, the company received a **$15.0 million upfront payment** from XOMA Royalty in exchange for half of future potential milestone and royalty payments from certain customer agreements, which was recorded as a liability[94](index=94&type=chunk) - The company is involved in a putative securities class action lawsuit and a related shareholder derivative suit, both of which are in preliminary stages, and the company intends to defend itself vigorously[74](index=74&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=27&type=section&id=Item%202.%20Management%27s%20discussion%20and%20analysis%20of%20financial%20condition%20and%20results%20of%20operations) Management discusses Q1 FY2025 financial results, highlighting a 24% revenue increase, improved gross margin, and reduced net loss, alongside analysis of operating expenses, liquidity, and capital resources [Overview](index=27&type=section&id=Overview) Twist Bioscience, a synthetic biology company, serves approximately 3,562 customers, achieving 24% revenue growth to $88.7 million, a 48.3% gross margin, and an improved net loss of ($0.53) per share in Q1 FY2025 - The company serves approximately **3,562 customers** annually across various industries, including healthcare, chemicals/materials, and academic research, using a multi-channel strategy that includes a direct sales force and an e-commerce platform[101](index=101&type=chunk) Q1 FY2025 Financial Highlights vs. Q1 FY2024 | Metric | Q1 FY2025 | Q1 FY2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $88.7M | $71.5M | +24% | | Gross Margin | 48.3% | 40.5% | +7.8 p.p. | | Loss from Operations | ($31.6M) | ($43.0M) | Improved | | Net Loss per Share | ($0.53) | ($0.75) | Improved | [Results of Operations](index=28&type=section&id=Results%20of%20operations) Revenue increased 24% driven by NGS tools and synthetic genes, gross margin improved to 48.3%, R&D expenses decreased 8%, and SG&A expenses increased 6% due to personnel and third-party costs - Revenue grew **24%** to **$88.7 million**, primarily due to a **$9.2 million** increase in NGS tools revenue and a **$6.8 million** increase in synthetic genes revenue[114](index=114&type=chunk) - The number of genes shipped increased by **20%** to approximately **205,000** in Q1 FY2025 from **171,000** in Q1 FY2024[113](index=113&type=chunk)[114](index=114&type=chunk) - Gross margin increased by **7.8 percentage points** to **48.3%**, mainly due to higher revenue and better absorption of fixed costs[115](index=115&type=chunk) - R&D expenses decreased by **8%** to **$21.3 million**, driven by lower outside service, lab supply, and personnel costs[116](index=116&type=chunk)[118](index=118&type=chunk) - SG&A expenses increased by **6%** to **$56.2 million**, primarily due to a **$1.4 million** increase in personnel costs and a **$1.9 million** increase in third-party spending[119](index=119&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20capital%20resources) As of December 31, 2024, the company held $221.4 million in cash and equivalents, received a $15.0 million upfront payment from XOMA, and used $21.4 million in operating cash, with primary capital uses for compensation, manufacturing, and R&D - The company's liquidity is primarily financed through equity raises and commercial revenue, with cash, cash equivalents, and short-term investments totaling **$270.8 million** as of December 31, 2024[103](index=103&type=chunk)[123](index=123&type=chunk) - A significant financing event in the quarter was a **$15.0 million upfront payment** from XOMA for the right to receive half of future potential milestone and royalty payments from certain collaborations[124](index=124&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Activity | Three months ended Dec 31, 2024 (in thousands) | | :--- | :--- | | Net cash used in operating activities | ($21,428) | | Net cash used in investing activities | ($1,536) | | Net cash provided by financing activities | $17,944 | [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20qualitative%20disclosures%20about%20market%20risk) The company reports no material changes to its market risk exposure since the previous fiscal year-end, as detailed in its Annual Report on Form 10-K - There have been no material changes in the company's exposure to market risk since September 30, 2024[140](index=140&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20procedures) Management concluded the company's disclosure controls and procedures were effective as of December 31, 2024, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of December 31, 2024, the CEO and CFO concluded that the company's disclosure controls and procedures were **effective**[141](index=141&type=chunk) - No changes occurred during the quarter ended December 31, 2024, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[142](index=142&type=chunk) Part II. Other Information [Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20proceedings) Material pending legal proceedings are detailed in Note 6 of the financial statements, with management expecting no material adverse effect on the business from their final disposition - Details on material pending legal proceedings are described in Note 6 of the financial statements[145](index=145&type=chunk) - Management does not expect the final outcome of current legal matters to have a **no material adverse effect** on the company's business, financial position, or cash flows[145](index=145&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20factors) No material changes to the company's risk factors have occurred since those disclosed in the Annual Report on Form 10-K - There have been no material changes in risk factors from those described in the Annual Report on Form 10-K[147](index=147&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20sales%20of%20equity%20securities%20and%20use%20of%20proceeds) The company reported no unregistered sales of equity securities during the quarter - The company had **no unregistered sales** of equity securities during the quarter[148](index=148&type=chunk) [Other Information](index=37&type=section&id=Item%205.%20Other%20information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended December 31, 2024 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading plan during the quarter ended December 31, 2024[151](index=151&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including a consulting agreement, CEO and CFO certifications, and iXBRL data files - Exhibits filed include a consulting agreement with James Thorburn, certifications by the CEO and CFO, and iXBRL financial data[153](index=153&type=chunk)

Financial Data and Key Metrics Changes - The company reported record revenue of $88.7 million, an increase of 24% year-over-year and 5% sequentially [11][23]. - Gross margin for the quarter was 48.3%, up from 40.5% in the first quarter of fiscal 2024, reflecting improved operational efficiency [11][27]. - Adjusted EBITDA loss was approximately $16.3 million, an improvement of about $11.5 million compared to the first quarter of fiscal 2024 [29]. Business Line Data and Key Metrics Changes - Revenue from SynBio increased to $34.4 million, a 28% year-over-year growth [12][24]. - NGS revenue reached $48.6 million, up 23% year-over-year [13][24]. - Biopharma Services revenue was $5.7 million, with orders totaling $5.9 million [15][24]. Market Data and Key Metrics Changes - Revenue from the Americas increased to approximately $53.7 million, a 22% year-over-year growth [26]. - EMEA revenue rose to $28.3 million, reflecting a 33% year-over-year increase [26]. - APAC revenue increased to $6.7 million, a 6% year-over-year growth [26]. Company Strategy and Development Direction - The company aims to achieve adjusted EBITDA breakeven without raising capital while investing in profitable growth opportunities [11][22]. - The focus remains on leveraging proprietary technology for DNA synthesis to maintain a competitive edge in the market [34][38]. - The company is committed to continuous process improvements and innovation to drive gross margin growth [20][36]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate market challenges and capitalize on growth opportunities, particularly in NGS and SynBio [96][98]. - The company views current market uncertainties as opportunities to gain market share, especially in the Biopharma sector [108][96]. - There is a strong emphasis on maintaining operational discipline and focusing on customer satisfaction to drive revenue growth [87][96]. Other Important Information - The company has increased its revenue guidance for fiscal 2025 to a range of $372 million to $379 million, indicating a growth of approximately 20% at the midpoint year-over-year [30]. - The company is also focusing on developing proprietary enzymes to enhance product offerings and improve gross margins [21][69]. Q&A Session Summary Question: Can you discuss the mix shift in SynBio towards Express genes? - Management noted sequential improvement in Express gene revenue and highlighted the expansion of the Express portfolio, which is driving customer engagement and revenue growth [44]. Question: What is the timeline for achieving profitability? - Management emphasized a commitment to sequential improvements in gross margin and revenue, aiming for over 50% gross margin by Q4 [48]. Question: How are tariffs affecting operations in Canada and Mexico? - Management clarified that since all products are manufactured in the USA, the company remains unaffected by tariffs, while competitors may face challenges [52]. Question: What is the impact of the Express dynamic on margins? - Management indicated that revenue growth is the primary driver of gross margin expansion, with Express products contributing positively [58]. Question: Can you elaborate on gross margin progression throughout the year? - Management expects sequential improvements in gross margin, with initiatives in place to enhance operational efficiency [62]. Question: How is the company addressing geopolitical uncertainties in guidance? - Management expressed confidence in their diverse customer base and product offerings, viewing uncertainties as opportunities to capture market share [108].

Group 1 - Twist Bioscience reported a quarterly loss of $0.53 per share, better than the Zacks Consensus Estimate of a loss of $0.62, and an improvement from a loss of $0.75 per share a year ago, resulting in an earnings surprise of 14.52% [1] - The company achieved revenues of $88.71 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 2.04%, and showing growth from year-ago revenues of $71.5 million [2] - Over the last four quarters, Twist Bioscience has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2 - The stock has gained approximately 12.7% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is -$0.60 on revenues of $92.12 million, and for the current fiscal year, it is -$2.27 on revenues of $372.96 million [7] Group 3 - The Medical - Biomedical and Genetics industry, to which Twist Bioscience belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Twist Bioscience is currently mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Fiscal 2025 1Q Financial Results F E B R U A R Y 2 0 2 5 Agenda Welcome 2 | TWIST BIOSCIENCE | PROPRIETARY Business Highlights Patrick Finn President and Chief Operating Officer Financial and Operational Performance Adam Laponis Chief Financial Officer Milestones Emily Leproust Chief Executive Officer Q&A Session Angela Bitting SVP, Corporate Affairs; Chief Corporate Responsibility Officer Quarterly Highlights Emily Leproust Chief Executive Officer Legal Disclaimers This presentation contains forward-lookin ...

Financial Performance - Record revenue of $88.7 million in Q1 FY25, an increase of 24% from $71.5 million in Q1 FY24[1] - Gross margin improved to 48.3% in Q1 FY25, up 7.8 percentage points from 40.5% in Q1 FY24[1] - Full year fiscal 2025 revenue guidance is projected to be between $372 million and $379 million, indicating a year-over-year growth of 19% to 21%[6] - SynBio revenue for FY25 is expected to be between $144 million and $147 million, reflecting a growth of 17% to 18%[6] - NGS revenue guidance for FY25 is projected at $205 million to $209 million, representing a growth of 21% to 24%[6] - Adjusted EBITDA for Q1 FY25 was $(16.3) million, an improvement from $(27.8) million in Q1 FY24[5] - Net loss for Q1 FY25 was $31.6 million, or $0.53 per share, compared to a net loss of $43.0 million, or $0.75 per share, in Q1 FY24[5] Customer and Product Metrics - The company shipped products to approximately 2,376 customers in Q1 FY25, up from 2,140 customers in Q1 FY24[5] - Approximately 205,000 genes were shipped in Q1 FY25, compared to 171,000 genes in Q1 FY24[5] Future Projections - The company expects to achieve a gross margin of over 50% by Q4 FY25[3] Year-over-Year Comparisons - For the three months ended December 31, 2024, GAAP net income was $(31,594) thousand, an improvement from $(43,008) thousand in the same period of 2023[22] - Adjusted EBITDA for the three months ended December 31, 2024, was $(16,271) thousand, compared to $(27,786) thousand in the same period of 2023, indicating a significant reduction in losses[22] - The overall EBITDA loss improved from $(38,837) thousand in 2023 to $(28,331) thousand in 2024, a reduction of approximately 27%[22] Expense Management - Depreciation and amortization expenses decreased from $8,171 thousand in 2023 to $6,382 thousand in 2024, reflecting a reduction of approximately 22%[22] - Stock-based compensation expense increased slightly from $11,020 thousand in 2023 to $11,991 thousand in 2024, representing an increase of about 8.8%[22] - Interest income decreased from $(4,120) thousand in 2023 to $(3,240) thousand in 2024, a decline of approximately 21.4%[22] - Interest expense increased from $1 thousand in 2023 to $24 thousand in 2024, showing a significant rise[22] - Income tax expense remained relatively stable, decreasing slightly from $120 thousand in 2023 to $97 thousand in 2024[22] - Other income/expense, net improved from $31 thousand in 2023 to $69 thousand in 2024, indicating a positive change[22] Strategic Focus - The company continues to focus on reducing net losses and improving financial performance through strategic adjustments in expenses and income[22]

Investors might want to bet on Twist Bioscience (TWST) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individ ...

Core Viewpoint - Twist Bioscience (TWST) has shown a downtrend recently, losing 9.9% over the past week, but a hammer chart pattern suggests a potential trend reversal due to increased buying interest and optimism among analysts regarding future earnings [1] Group 1: Technical Analysis - The formation of a hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be exhausting [1] - A hammer pattern typically forms during a downtrend when the stock opens lower, makes a new low, but then closes near or above the opening price, signaling a potential loss of control by bears [2] - Hammer candles can appear on various timeframes and should be used alongside other bullish indicators for confirmation [2] Group 2: Fundamental Analysis - Recent upward revisions in earnings estimates for TWST serve as a bullish indicator, with the consensus EPS estimate increasing by 11.2% over the last 30 days [3] - Analysts covering TWST are largely in agreement about the company's potential for better earnings than previously predicted, indicating strong market sentiment [3] - TWST holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperform the market [3]

Financial Performance - The company incurred net losses of $208.7 million, $204.6 million, and $217.9 million for the years ended September 30, 2024, 2023, and 2022, respectively, with an accumulated deficit of $1,241.9 million as of September 30, 2024[142]. - The company expects to incur substantial losses and negative cash flow for the foreseeable future, influenced by market acceptance of products and inflationary pressures[142]. - Existing cash and cash equivalents are expected to fund planned operating expenses and capital expenditures for at least the next 12 months, but additional financing may be required sooner than planned[145]. - Future capital requirements will depend on the development of additional products, manufacturing processes, and the costs associated with expanding sales and marketing capabilities[146]. - The company has experienced significant revenue growth but may not achieve similar growth rates in the future, necessitating effective management of anticipated growth[150]. - A significant portion of sales depends on customers' research and development budgets, which can be affected by various external factors[171]. - The company relies heavily on its synthetic DNA products for revenue, with substantial investments in research and development for these products[180]. - The company relies on a limited number of large customers for a significant portion of its revenues, and the loss of any major customer could adversely affect its financial performance[194]. - The company has experienced increased operating costs due to inflation but does not believe it has materially affected its financial condition or results of operations[191]. - The company may encounter pricing pressures that could adversely affect its margins and overall financial performance if it cannot pass on cost increases to customers[213]. - The company may face potential credit risk if customers' financial conditions deteriorate, which could adversely affect its business operations[248]. - The company may face significant fluctuations in quarterly and annual operating results, making financial planning and forecasting challenging[313]. - Future sales and issuances of common stock could result in dilution of existing stockholders' ownership and potentially lower stock prices[324]. - The company’s guidance regarding future performance is speculative and may not materialize, leading to potential discrepancies between actual results and investor expectations[319]. Market and Competitive Landscape - The company aims to attract new customers and retain existing ones by delivering high-quality products and services, but faces risks related to clinical value and reimbursement determinations[152]. - Rapidly changing technology and competition in synthetic biology necessitate continuous development of new and improved products to remain competitive[160]. - The synthetic biology industry is experiencing rapid technological changes, with a focus on developing new products to meet evolving customer needs[161]. - The competitive landscape in the synthetic biology industry is intense, with the need to develop proprietary technologies to maintain a competitive edge[162]. - The company is the only DNA synthesis provider to synthesize DNA on a silicon chip at a large commercial level, which creates competitive advantages[164]. - Future revenue growth may depend on the ability to leverage DNA synthesis technology in adjacent markets, such as pharmaceutical biologics and digital data storage[169]. - The company faces intense competition from various providers in the synthetic biology and life sciences tools industries, which could impact its market position and profitability[210]. Operational Risks and Challenges - The company faces risks related to a single-source supplier for a critical component in its DNA synthesis process, which could disrupt operations if issues arise[181]. - There is a need to expand manufacturing capacity to meet increasing customer demand, which may involve significant challenges and investments[178]. - The integration of AI and machine learning into operations presents both opportunities for innovation and risks related to legal and regulatory compliance[166]. - The company must secure stable supplies of raw materials, as shortages could adversely affect production capabilities and financial performance[185]. - The company relies on third-party carriers for product delivery, making it vulnerable to disruptions that could harm customer relationships and financial results[239]. - The company is subject to strict regulatory controls for the export of its products, which could delay shipments and adversely affect revenues[226]. - The FDA's new LDT Final Rule could impose additional regulatory controls that may influence product sales and customer usage[228]. - Compliance with environmental laws and regulations is costly and may restrict operations, leading to potential fines and penalties[218]. - The company has consolidated all synthetic biology production in Wilsonville, Oregon, with significant portions of NGS products still manufactured in South San Francisco[234]. Intellectual Property and Legal Matters - The company owns or exclusively in-licenses over 150 issued or allowed patents and more than 250 pending patent applications as of September 30, 2024[258]. - The company has filed a patent opposition case with the European Patent Office regarding its European Patent No. 3030682, which relates to polynucleotide synthesis[259]. - The company may not be able to protect its intellectual property rights effectively in jurisdictions with less favorable laws[267]. - The company has taken steps to protect its proprietary technology through confidentiality agreements, but these may not provide adequate protection[271]. - The company may face challenges in enforcing its patent rights in foreign jurisdictions, which could limit its competitive advantage[270]. - The company may incur significant costs and management distraction from litigation to enforce its patents and proprietary rights, which is prevalent in the biotechnology industry[275]. - Patent infringement lawsuits can be expensive and disruptive, with unpredictable outcomes that may harm the company's reputation and financial condition[278]. - The company may need to obtain licenses from third parties in the event of a successful infringement claim, which could incur substantial costs and negatively affect gross margins[279]. - The complexity of products and patents may lead to disputes regarding the scope of licenses and royalty obligations, potentially impacting product marketing[294]. Management and Governance - The company is highly dependent on its senior management team and key personnel, particularly its CEO, and any loss of these individuals could harm its product development and business growth[197]. - The company has engaged in strategic transactions, including a business acquisition in Q1 2022, to expand its synthetic DNA product offerings[200]. - The company is subject to compliance with Section 404 of the Sarbanes-Oxley Act, which requires maintaining effective internal controls over financial reporting[251]. - The company has experienced at least one material weakness in internal control over financial reporting for the fiscal years ended September 30, 2020, 2021, 2022, and 2023[252]. - Provisions in the company's charter documents may delay or prevent changes in control, potentially reducing stock market value[298]. - The exclusive forum provisions in the company's amended and restated certificate of incorporation may limit stockholders' ability to bring claims in favorable jurisdictions, potentially increasing legal costs[305]. - The company may incur additional costs if courts find its choice of forum provisions unenforceable, impacting its financial resources[305]. Investment and Financial Strategy - The primary objective of the company's investment activities is to preserve capital while maximizing income from investments without assuming significant risk[461]. - The company maintains a portfolio of high credit quality and short-term duration investments, which mitigates the impact of interest rate fluctuations[461]. - A hypothetical 10% relative change in interest rates would not materially impact future interest income or the fair values of the investment portfolio[461]. - The majority of the company's transactions are conducted in U.S. dollars, but it is also exposed to foreign exchange risk due to transactions in Euro, Chinese Yuan, and British Pound[462]. - The company does not use derivative financial instruments for speculative trading and does not fully hedge foreign currency exchange rate exposure[463]. - Counterparties to forward foreign currency exchange contracts are creditworthy multinational commercial banks, minimizing counterparty risk[463]. Regulatory and Compliance Issues - The company has established a biosecurity program to comply with regulations, but inadvertent noncompliance could lead to legal penalties and reputational damage[222]. - Legislative initiatives regarding corporate tax reform may adversely affect the company's plans to expand internationally and impact its financial condition[247]. - The company is subject to risks related to evolving expectations around environmental, social, and governance (ESG) practices, which could adversely affect its reputation and financial condition[330]. - The company currently does not have additional insurance coverage for legal liability related to hazardous materials, which could expose it to significant financial risks[218]. - The company uses biological and hazardous materials, which require expertise and may result in claims against it[216]. - Changes in currency exchange rates may negatively impact the company's ability to compete internationally and affect costs of materials[241].

Group 1 - The biotech forum has seen significant discussions around profitable buy-write or covered call strategies on selected biotech stocks over recent months [1] - Twist Bioscience Corporation (NASDAQ: TWST) recently released its quarterly results, which were solid and warranted further analysis [2] - The investing group, The Biotech Forum, offers a model portfolio featuring 12-20 high upside biotech stocks, along with live chat for trade discussions and weekly market commentary [2] Group 2 - The article emphasizes the importance of ongoing analysis and updates in the biotech sector, particularly following quarterly earnings reports [2]

Financial Data and Key Metrics Changes - The company reported a record revenue of $84.7 million for Q4 2024, representing a 27% year-over-year increase and a 4% sequential increase [10] - For the full fiscal year 2024, total revenue reached $330 million, an increase of 28% compared to fiscal 2023 [10] - Gross margin for Q4 was 45.1%, exceeding guidance, while the annual gross margin improved to 42.6% from 36.6% in fiscal 2023 [11][47] - Adjusted EBITDA loss for Q4 was approximately $17 million, an improvement of $9 million year-over-year, while the annual adjusted EBITDA loss was approximately $93.5 million, improving by $54 million from fiscal 2023 [51] Business Line Data and Key Metrics Changes - SynBio revenue for Q4 increased to $33.9 million, a 28% year-over-year growth, with full-year revenue of $123.5 million, up 26% from fiscal 2023 [43] - NGS revenue for Q4 grew to approximately $45.5 million, a 23% year-over-year increase, with full-year revenue of $169.1 million, reflecting exceptional growth of 37% [44] - Biopharma revenue was $5.3 million for Q4, with full-year revenue of $20.3 million [45] Market Data and Key Metrics Changes - Revenue from the Americas increased to approximately $52.7 million for Q4, a 21% year-over-year growth, while EMEA revenue rose to $25.5 million, a 48% increase [45] - APAC revenue increased to $6.5 million for Q4, an 8% year-over-year growth, with China accounting for approximately 2% of total revenue for fiscal 2024 [46] Company Strategy and Development Direction - The company aims to reach adjusted EBITDA breakeven and become cash flow positive while investing in profitable growth through its innovation engine [17][60] - The strategy includes leveraging proprietary technology for custom synthesis at scale, expanding product offerings, and enhancing operational efficiency [14][18] - The company is focused on developing proprietary enzymes, which are expected to provide significant ROI and reduce supply chain risks [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining momentum into fiscal 2025, driven by strong customer demand and operational improvements [12][58] - The company sees opportunities for market share gains, particularly in light of potential NIH budget constraints, as it offers high-quality products at competitive prices [68] - Management highlighted the importance of continuous process improvements and automation in driving profitability [34][38] Other Important Information - The company ended Q4 with cash, cash equivalents, and short-term investments of approximately $276.4 million, not including an additional $15 million received from XOMA in October 2024 [42][53] - Capital expenditures for fiscal 2024 were $5 million, a reduction from $28 million in fiscal 2023 [53] Q&A Session Summary Question: Trends in Express Genes and operational efficiencies - Management indicated modest increases in operating expenses, primarily due to annual bonuses, while expecting continued sequential improvement in gross margins [65][66] Question: Exposure to NIH budgets and competitive landscape - The company has minimal exposure to NIH budgets, which is less than 1%, and sees this as an opportunity for market share gains [68] Question: Related-party revenue clarification - Related-party revenue was approximately $12 million in Q4, and the company disclosed this due to accounting requirements [70][118] Question: Insights on DNA storage and commercialization - The company is focused on developing competitive DNA storage solutions and is making significant progress in technology development [81] Question: Contribution of Express Genes to future targets - The Express portfolio is boosting revenue and converting makers into buyers, contributing positively to margins [123]