Twist Bioscience(US:TWST)2026-02-02 14:00Financial Data and Key Metrics Changes - Revenue for Q1 increased to $103.7 million, representing a 17% year-over-year growth and approximately 5% sequentially [20] - Gross margin improved to 52.0%, an increase of approximately four margin points compared to Q1 of Fiscal 2025 [20][24] - Adjusted EBITDA loss was approximately $13.4 million, an improvement of about $2.8 million versus Q1 of Fiscal 2025 [24] Business Line Data and Key Metrics Changes - DNA synthesis and protein solutions revenue rose to $51.1 million, a 27% year-over-year increase driven by AI-enabled discovery [20] - NGS applications revenue grew to approximately $52.6 million, with an 18% year-over-year growth when excluding one large customer [20] - Revenue from therapeutics increased to approximately $37.2 million, reflecting a 39% year-over-year growth [21] Market Data and Key Metrics Changes - Americas revenue increased to approximately $58.4 million, a 9% year-over-year growth [21] - AMEA revenue rose to approximately $38.4 million, a 36% year-over-year increase [21] - APAC revenue increased to approximately $7 million, compared to $6.7 million in the same period of Fiscal 2025 [21] Company Strategy and Development Direction - The company aims to leverage its semiconductor-based DNA synthesis platform to enhance speed, scale, quality, and affordability for customers [5] - The estimated serviceable market has expanded from approximately $2 billion in 2020 to roughly $7 billion today, with a target of over $12 billion by 2030 [7][8] - The company is focused on disciplined product innovation and expanding its addressable markets while maintaining margin discipline [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching Adjusted EBITDA break-even by Q4 of Fiscal 2026, supported by consistent revenue growth and disciplined investment in operating expenses [11][27] - The company sees a durable opportunity in AI-enabled discovery, with increasing orders from large pharma and biotech customers [31][49] - Management highlighted the importance of maintaining a scalable cost structure while investing in growth [12][27] Other Important Information - The company plans to host an investor day in May to provide deeper insights into its strategy, product roadmap, and market expansion opportunities [28] - The company ended the quarter with $197.9 million in cash, cash equivalents, and short-term investments [25] Q&A Session Summary Question: Demand for AI-driven discovery and its duration - Management noted that demand is expected to be durable, with customers returning for larger orders, indicating strong growth potential [31] Question: Increased guidance confidence for DNA synthesis and NGS - Management attributed increased confidence to overall strong performance across the board and the return of a previously mentioned customer [37] Question: Gross margin expectations for Q2 and beyond - Management indicated that while gross margin improvements are expected, investments in growth may moderate the pace of margin expansion [44][46] Question: Strategic investments made in the quarter - Management detailed structural investments in hiring sales personnel and transient investments in digital infrastructure to support growth [50][52] Question: New partnerships in the diagnostic space - Management confirmed that growth in NGS for FY 2026 will primarily come from existing partners, with new partnerships being crucial for sustained growth in 2027 and beyond [56]