Twist Bioscience(US:TWST)2025-05-05 12:00Financial Data and Key Metrics Changes - For the second quarter of fiscal 2025, the company reported record revenue of $92,800,000, an increase of 23% year over year and 4.6% sequentially [13][23] - Gross margin for the quarter was 49.6%, up from 41% in the same quarter of fiscal 2024, reflecting improved operational efficiency [13][28] - Adjusted EBITDA loss was approximately $14,800,000, an improvement of about $11,900,000 compared to the second quarter of fiscal 2024 [29][32] Business Line Data and Key Metrics Changes - Revenue from Synbio increased to $36,000,000, a growth of 21% year over year [13][24] - NGS revenue grew to approximately $51,100,000, an increase of 25% year over year [16][24] - Biopharma services revenue was $5,700,000, reflecting a growth of 21% year over year [16][24] Market Data and Key Metrics Changes - Healthcare revenue rose to $52,800,000, a 29% increase year over year [25] - Industrial chemical revenue increased to $22,800,000, up 12% from the same period last year [25] - Academic revenue was $16,500,000, a 20% increase year over year [26] Company Strategy and Development Direction - The company has spun out DNA Data Storage as an independent entity, Atlas Data Storage, to focus on end-to-end data storage solutions [8][11] - The strategy emphasizes agility and innovation to capture market opportunities while maintaining operational efficiency [18][19] - The company aims to reach adjusted EBITDA breakeven by the end of fiscal 2026, leveraging the Atlas Data Storage transaction for improved financial performance [32][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing over $100,000,000 in orders booked in each of the last two quarters [37] - The leadership team is focused on innovation and customer impact, adapting to market conditions while maintaining a competitive edge [36][70] - The company anticipates continued share gains in the academic market despite funding pressures [65][72] Other Important Information - The company ended the quarter with cash, cash equivalents, and short-term investments of approximately $257,100,000 [29] - The company expects total revenue guidance for fiscal 2025 to be between $372,000,000 and $379,000,000, indicating a growth of approximately 20% at the midpoint [30] Q&A Session Summary Question: What is the impact of tariffs on guidance? - Management indicated that they have accounted for potential tariff impacts in their guidance, noting that tariffs may serve as a headwind for competitors rather than themselves [41][64] Question: How are promotions affecting Synbio growth? - Promotions have contributed to a 20% growth in the academic market, with expectations for continued positive impacts on margins [46][50] Question: What is the significance of the top 10 customers in NGS revenue? - The top 10 customers are expected to grow at a rate similar to the overall NGS business, with no specific increases assumed for the second half [52][54] Question: How will savings from the spin-off be reinvested? - The company plans to reinvest savings from the spin-off into higher priority R&D initiatives, contributing to improved adjusted EBITDA [56][60] Question: What is the outlook for the academic market? - The academic market presents a significant growth opportunity, with the company underpenetrated in this segment and optimistic about future performance [82][84]