Twist Bioscience(US:TWST)2025-11-14 14:02Financial Data and Key Metrics Changes - The company reported a record revenue of $99 million for Q4, representing a 17% year-over-year increase and marking the 11th consecutive quarter of growth [7] - For the full year, revenue reached $376.6 million, a growth of 20% over fiscal 2024 [7][23] - Gross margin for Q4 was 51.3%, and for the full year, it was 50.7%, an increase from 42.6% in fiscal 2024 [7][23] - Adjusted EBITDA loss improved to approximately $7.8 million for Q4 and $46.9 million for the full year, showing significant improvement compared to fiscal 2024 [27][28] Business Line Data and Key Metrics Changes - SynBio revenue for Q4 was $39.5 million, up 17% year-over-year, and for the full year, it increased to $145 million, also a 17% growth [8][23] - NGS revenue for Q4 grew to approximately $53 million, a 16% increase year-over-year, and for the full year, it reached $208.1 million, a growth of 23% [12][24] - Biopharma revenue was $6.4 million for Q4, a 22% increase year-over-year, with full-year revenue at $23.5 million, a growth of 15% [14][24] Market Data and Key Metrics Changes - Revenue from the Americas increased to approximately $57.3 million in Q4, a 9% year-over-year growth, while EMEA revenue rose to $34.6 million, a 35% increase [25] - APAC revenue increased to $7.2 million in Q4, a 9% year-over-year growth [25] - China accounted for approximately 1% of total revenue for fiscal 2025, indicating a relatively small market share [25] Company Strategy and Development Direction - The company aims to achieve adjusted EBITDA breakeven by the end of fiscal 2026, focusing on setting the stage for future growth acceleration [8] - A new product introduction for NGS aimed at minimal residual disease (MRD) is expected to launch commercially in early 2026, enhancing the company's offerings in cancer diagnostics [18][21] - The company plans to combine SynBio and Biopharma revenue reporting under the term DNA Synthesis and Protein Solutions to better reflect its customer base and operational synergies [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in AI-enabled drug discovery, with significant orders from customers in this area [10][29] - The company anticipates total revenues of $425 million to $435 million for fiscal 2026, reflecting a growth of approximately 13% to 15.5% year-over-year [29] - Management emphasized the importance of staying close to customers to anticipate emerging needs and drive product innovation [32] Other Important Information - The company ended fiscal 2025 with cash, cash equivalents, and short-term investments of approximately $232.4 million [28] - Capital expenditures for fiscal 2025 were $28 million, reflecting investments in growth for the upcoming fiscal year [28] Q&A Session Summary Question: On gross margins and pricing - Management indicated that gross margin expectations are influenced by customer mix and that they expect to maintain a strong margin trajectory moving forward [36][37] Question: NGS growth expectations - Management clarified that NGS growth is expected to rebound to 20% by Q4 2026, with a significant customer ramp anticipated [39][40] Question: Biopharma order sustainability - Management expressed optimism about the sustainability of AI-driven orders and the close ties between Biopharma and SynBio offerings [41][42] Question: Guidance for gross margins - Management expects gross margins to improve throughout fiscal 2026, driven by revenue growth and continuous process improvements [44][45] Question: Market opportunity definition - Management acknowledged the need for clearer market opportunity definitions and metrics to help investors understand growth potential [60][63]