Twist Bioscience(US:TWST)2025-02-03 15:55Financial 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].