Twist Bioscience(US:TWST)2024-05-03 02:54Financial Data and Key Metrics Changes - Revenue for the second quarter increased to $75.3 million, representing a 25% year-over-year growth and approximately 5% sequentially [44] - Gross margin for the second quarter came in higher than expected at 41%, with a significant contribution from Express Genes and NGS [44][50] - The company anticipates gross margin to exceed 50% by the end of fiscal 2025 [42][31] Business Line Data and Key Metrics Changes - SynBio revenue increased to $29.8 million, growing 24% year-over-year, with orders rising to $44.9 million [45] - NGS revenue grew to approximately $40.8 million, a 40% increase year-over-year, with orders increasing to $42.5 million [46] - Biopharma revenue was $4.7 million, with orders increasing to $5.8 million [41] Market Data and Key Metrics Changes - Healthcare revenue rose to $40.9 million, reflecting increased uptake by pharma, biotech, and diagnostic companies [48] - Industrial chemical revenue increased to $20.3 million, up from $14.4 million year-over-year [48] - Academic revenue was $13.7 million, up from $11.1 million, driven by growth in both SynBio and NGS customers [48] Company Strategy and Development Direction - The company is focused on expanding its synthetic biology, NGS, biopharma, and data storage segments, leveraging its proprietary DNA synthesis platform [62] - A marketing campaign for Express Gene was launched to attract customers from competitors, with a goal to capture a larger market share [32] - The company is negotiating contracts with suppliers and customers to provide volume commitments and fixed premium pricing, which is expected to enhance margins [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market potential for liquid biopsy applications, indicating significant growth opportunities [68] - The company noted that the increase in blanket purchase orders reflects customer confidence in their offerings, particularly Express Genes [71] - Management highlighted the importance of maintaining financial discipline and the path to profitability, with expectations for improved adjusted EBITDA in future quarters [54][58] Other Important Information - The company shipped to 2,253 customers during the second quarter and ended with approximately $292 million in cash and short-term investments [44] - Operating expenses for the second quarter were $124.2 million, with a net loss attributable to common stockholders of $45.5 million [57] Q&A Session Summary Question: Can you provide insights on the customer feedback regarding dynamic pricing? - Management indicated that there has been no negative feedback on premium pricing, with customers willing to provide volume commitments in exchange for fixed pricing [1] Question: What is the profile of the 100 net new accounts for Express Gene? - The new accounts are a mix of large and small pharma customers, with a significant number being academic groups [5] Question: How is the onboarding of new business development hires progressing? - Management confirmed that the team is in place, and while not fully ramped, they are optimistic about market opportunities and growth potential [10] Question: What are the expectations for Express Gene's contribution to margins? - Management noted that while Express Gene's contribution is still early, it is expected to positively impact gross margins as the year progresses [65] Question: Were there any one-time factors affecting the order trends this quarter? - Management clarified that the increase in orders was driven by a higher number of blanket purchase orders, reflecting customer confidence in their offerings [71]