Loading...
01/11 04:42
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call indicates several concerning factors: a missed EPS expectation, increased operational costs, and ongoing financial challenges. While there is revenue growth and improved gross margins, the lack of a shareholder return plan and unclear guidance on tariffs and R&D reinvestment pose risks. The market's uncertainty, especially with policy shifts, further compounds these issues. Given the company's small market cap, these negative elements could lead to a stock price decrease in the short term.
Revenue $92.8 million, an increase of 23% year-over-year and approximately 4.6% sequentially.
Gross Margin 49.6%, an improvement of almost 9 percentage points compared to 41% for the second quarter of fiscal 2024, primarily due to increased revenue, volume leverage, and faster-than-anticipated gains in continuous process improvements.
SynBio Revenue $36 million, growth of 21% year-over-year from $29.8 million in Q2 fiscal 2024.
NGS Revenue $51.1 million, an increase of 25% year-over-year from $40.8 million in the same period last year.
Biopharma Revenue $5.7 million, growth of 21% year-over-year from $4.7 million in the same period of fiscal 2024.
Operating Expenses Approximately $87.6 million, compared to approximately $79.8 million in the same period of 2024, driven by a $5.5 million increase in noncash stock-based compensation.
Adjusted EBITDA Loss of approximately $14.8 million, an improvement of about $11.9 million versus the second quarter of fiscal 2024.
Cash Flow from Operating Activities Continues to improve, with cash, cash equivalents, and short-term investments at approximately $257.1 million.
New Product Launch: Twist has developed a proprietary high fidelity polymerase for internal SynBio workflows, enhancing performance and reducing costs.
Customer Engagement Initiative: Introduced the Twist Wallet, allowing customers to manage credits for ordering, and a promotional program for Express Genes to attract new customers.
Market Expansion: Spun out DNA data storage into a new company, Atlas Data Storage, to focus on commercialization and leverage significant investment.
Revenue Growth: Reported record revenue of $92.8 million, a 23% increase year-over-year, with strong growth in SynBio and NGS sectors.
Operational Efficiency: Increased capacity for NGS product line by 200% while reducing turnaround time by 20% through automation.
Cost Optimization: Optimizing costs to increase operational leverage while maintaining quality and driving long-term growth.
Strategic Shift: Transitioning to a dual-company model with Twist focusing on core operations and Atlas Data Storage dedicated to data storage solutions.
Earnings Expectations: Twist Bioscience Corporation reported an EPS of $-0.66, missing expectations of $-0.56, indicating potential financial instability.
Market Conditions: The company is operating in a time of accelerated change due to policy shifts, trade adjustments, and evolving financial markets, which may pose risks to business operations.
Investment in DNA Data Storage: Twist has constrained spending in DNA data storage to less than $25 million annually, indicating a risk of underinvestment in a potentially lucrative market.
Supply Chain Challenges: The company expects minimal impact from tariffs on its supply chain, but ongoing monitoring is necessary to mitigate risks associated with raw material sourcing.
Operational Costs: Operating expenses increased to approximately $87.6 million, driven by a rise in noncash stock-based compensation, which could affect profitability.
Adjusted EBITDA Loss: The adjusted EBITDA loss of approximately $14.8 million indicates ongoing financial challenges, although it shows improvement compared to the previous year.
Future Profitability: The company expects to reach adjusted EBITDA breakeven by the end of fiscal 2026, highlighting the uncertainty in achieving profitability in the near term.
Spin-out of DNA Data Storage: Twist has spun out DNA data storage as an independent company named Atlas Data Storage, focusing on end-to-end data storage solutions.
Investment in Atlas Data Storage: Atlas Data Storage received a significant $155 million investment from various joint venture partners to accelerate development and commercialization.
Equity Interest: Twist will retain a 24% equity interest in Atlas Data Storage and will receive royalties on future sales and up to $75 million in milestone payments.
Operational Agility: Twist is employing real-time operational agility to monitor and refine commercial and supply chain strategies.
Customer Engagement Programs: Twist introduced programs like the Twist Wallet and promotional offers for academic customers to enhance customer experience.
Total Revenue Guidance: Twist expects total revenue of $372 million to $379 million for fiscal 2025, indicating approximately 20% growth year-over-year.
SynBio Revenue Guidance: SynBio revenue is guided at $144 million to $147 million, reflecting approximately 18% growth year-over-year.
NGS Revenue Guidance: NGS revenue is guided at $205 million to $209 million, indicating approximately 23% growth year-over-year.
Biopharma Revenue Guidance: Biopharma revenue is guided at $23 million, reflecting approximately 13% growth year-over-year.
Q3 Fiscal 2025 Revenue Expectation: For Q3 fiscal 2025, total revenue is expected to be approximately $94 million to $97 million, indicating 17% growth year-over-year.
Adjusted EBITDA Loss Expectation: Adjusted EBITDA loss is expected to be approximately $48 million to $53 million for fiscal 2025, an improvement of $41 million to $46 million versus fiscal 2024.
Future Margin Expectations: Twist expects gross margin of approximately 49.5% for fiscal 2025, with expectations to exceed 50% in the latter half of the fiscal year.
Shareholder Return Plan: Twist Bioscience Corporation has not announced any share buyback program or dividend program during the Q2 2025 earnings call.
The earnings call summary and Q&A indicate a positive sentiment. The company shows strong revenue growth guidance across all segments, improving gross margins, and a strategic focus on AI synergies. Despite some guidance below expectations, management remains optimistic about long-term growth, especially in NGS and Biopharma. The expected breakeven point for adjusted EBITDA and new product launches further support a positive outlook. The market cap suggests a moderate reaction, leading to a predicted positive stock price movement of 2% to 8% over the next two weeks.
The earnings call highlights strong revenue growth across multiple segments, particularly in NGS and healthcare. Despite some challenges like customer pushouts and SynBio weakness due to tough comparisons, the overall sentiment remains positive with optimistic future guidance. The company expects to reach adjusted EBITDA breakeven by 2026, and gross margins are improving. The Q&A section reveals analysts' confidence in the company's strategic direction and growth potential, especially with new product introductions and international expansion efforts. Given the market cap, a positive reaction (2% to 8%) is expected over the next two weeks.
The earnings call indicates several concerning factors: a missed EPS expectation, increased operational costs, and ongoing financial challenges. While there is revenue growth and improved gross margins, the lack of a shareholder return plan and unclear guidance on tariffs and R&D reinvestment pose risks. The market's uncertainty, especially with policy shifts, further compounds these issues. Given the company's small market cap, these negative elements could lead to a stock price decrease in the short term.
Despite risks like market conditions and tariffs, Twist shows strong financial performance with 23% revenue growth and improved gross margins. The spin-off of Atlas Data Storage reduces cash burn and enhances EBITDA. Positive guidance and strategic reinvestment plans further bolster sentiment. The market cap suggests moderate sensitivity to these developments, leading to a positive stock price prediction.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
