Twist Bioscience's Q1 2025: Dissecting Contradictions in Express Genes Revenue, Margins, and Market Strategy

These are the key contradictions discussed in Twist Bioscience's latest 2025Q1 earnings call, specifically including: Express Genes revenue and growth expectations, impact of Express Genes on gross margins, market share and competitive position, and express genes revenue and pricing strategy:



Revenue Growth and Margin Expansion:
- Twist Bioscience reported record revenue of $88.7 million for Q1 2025, up 24% year-over-year and 5% sequentially.
- The gross margin for the quarter was 48.3%, a significant improvement from the previous year's 40.5%.
- Growth was driven by strong sequential increases in both SynBio and NGS segments, alongside operational efficiencies and fixed cost leverage.

Express Portfolio Performance:
- The Express portfolio, including Express genes and other products, displayed sequential growth in revenue and number of net new accounts.
- The majority of gene fragments and clonal genes were shipped within two and four days, respectively, contributing to the growth.
- The speed and affordability of Express products expanded the customer base and increased wallet share within existing accounts.

Gross Margin Driver and Enzyme Production:
- Approximately 75% to 80% of incremental revenue dropped to the gross margin line on average, with additional improvement from process efficiencies and new enzyme development.
- The company is leveraging its innovative platform to identify proprietary enzymes that enhance product performance and optimize workflows.
- This strategy is expected to provide significant ROI and contribute to margin expansion.

Geographic Revenue Growth:
- Americas revenue increased by 22% year-over-year, while EMEA revenue grew by 33%.
- APAC revenue also saw a 6% increase year-over-year, despite China contributing only 2% of total revenue.
- Growth in these regions was driven by expanding customer bases and market penetration, particularly in the SynBio segment.