How did TWST's Q2 2024 earnings surprise the market?

Twist Bioscience's (TWST) Q2 2024 earnings report surpassed market expectations in several key aspects, reflecting the company's strategic initiatives and market positioning:

1. **Revenue Outperformance**: Twist Bioscience reported a record revenue of $75.3 million for Q2 2024, marking a 25% increase year-over-year. This exceeded market estimates of $70.76 million. The growth was driven by significant orders, which reached a record $93.2 million, indicating strong demand for the company's products.
2. **Earnings Per Share (EPS) Improvement**: Although Twist Bioscience reported an EPS loss of $0.79 for the quarter, this was better than the consensus estimate of -$0.81. The company's net loss narrowed by 23% year-over-year, indicating improved profitability trends.
3. **Gross Margin Expansion**: The company's gross margin improved significantly to 41%, up from 31% in the same quarter the previous year. This reflects operational efficiencies and market positioning, with a future target of gross margin above 50% by the end of fiscal 2025.
4. **Product and Market Expansions**: Twist Bioscience's strategic expansions in product offerings and market penetration contributed to revenue growth. The introduction of new products, such as the cell-free DNA library prep, enhanced the company's competitive edge in liquid biopsy research. Additionally, the company's entry into regulated markets with CE-marked products in Europe positions it well for future regulatory changes in the U.S..

Overall, Twist Bioscience's Q2 2024 earnings report demonstrated robust growth in revenue and gross margin, alongside improved profitability trends, which likely contributed to the company's positive performance relative to market expectations.