Twist Bioscience ((TWST)) has held its Q1 earnings call. Read on for the main highlights of the call.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Twist Bioscience’s recent earnings call exuded confidence and optimism, driven by impressive revenue growth and significant improvements in gross margin. The company’s SynBio and NGS segments were highlighted as key contributors to this robust performance, although challenges in the Biopharma segment and minimal exposure to the Chinese market were noted. The strategic investments and innovative platform underscore Twist Bioscience’s potential for future growth.
Record Revenue and Growth
Twist Bioscience achieved a milestone with a record revenue of $88.7 million for the first quarter of fiscal 2025. This marks a notable 24% increase year-over-year and a 5% rise sequentially. Such growth underscores the company’s expanding market presence and operational efficiency.
Gross Margin Improvement
The company’s gross margin improved significantly to 48.3%, up from 40.5% in the same quarter of the previous fiscal year. This improvement highlights the effective leverage of fixed costs against increasing volumes, showcasing operational efficiency.
Significant Growth in SynBio Revenue
Revenue from the SynBio segment surged to $34.4 million, marking a 28% year-over-year growth. This growth is attributed to a diverse and expanding global customer base, positioning SynBio as a critical revenue driver for Twist Bioscience.
NGS Revenue Growth
NGS revenue also saw remarkable growth, reaching $48.6 million, a 23% increase from the previous year. This was fueled by the commercialization of liquid biopsy and rare disease assays, demonstrating the strength of Twist’s product offerings in this segment.
Positive Adjusted EBITDA Trend
The company reported an improved adjusted EBITDA loss of $16.3 million, representing an $11.5 million improvement compared to the first quarter of fiscal 2024. This positive trend indicates progress towards achieving breakeven.
Geographic Revenue Growth
Revenue growth was observed across different geographies, with the Americas increasing by 22% year-over-year, EMEA by 33%, and APAC by 6%. This widespread growth indicates a strong global presence and market penetration.
Biopharma Revenue Challenges
Although Biopharma revenue reached $5.7 million, the company remains cautious, noting potential challenges as the opportunity funnel continues to build. This segment remains a focus for future growth strategies.
Limited Exposure to China
Twist Bioscience’s exposure to the Chinese market remains limited, with China accounting for only about 2% of total revenue. This highlights an area for potential growth in a significant global market.
Forward-Looking Guidance
Looking ahead, Twist Bioscience has increased its full fiscal year 2025 revenue guidance to between $372 million and $379 million. The company anticipates sequential improvements in gross margins, aiming to exceed 50% by the fourth quarter of fiscal 2025. This guidance reflects confidence in sustained growth and operational efficiencies.
In summary, Twist Bioscience’s earnings call painted a picture of strong performance and future potential. With record revenue growth and strategic investments in key segments, the company is well-positioned for continued success, despite challenges in certain markets. Investors and market watchers will find Twist Bioscience’s trajectory and strategic focus areas particularly engaging.
