Twist Bioscience's Q4 Earnings And Q1 Guidance Surpass Expectations, Stock Jumps

Twist Bioscience (TWST) reported its fiscal fourth-quarter and full-year 2024 financial results, surpassing expectations and driving a significant jump in its stock price. The company's strong performance was driven by growth in its synthetic biology (SynBio) and next-generation sequencing (NGS) segments, as well as improved gross margins. Here's a closer look at Twist Bioscience's impressive earnings and the factors contributing to its success.

Twist Bioscience's Q4 FY24 earnings report highlighted several key achievements. The company reported record revenue of $84.7 million, a 27% increase from the same period last year. This growth was fueled by a 28% increase in SynBio revenue to $33.9 million and a 23% increase in NGS revenue to $45.5 million. Additionally, the company's gross margin improved to 45.1%, up from 36.6% in Q4 FY23, demonstrating its ability to manage costs effectively.

The company's impressive performance can be attributed to several factors. First, Twist Bioscience's proprietary DNA synthesis platform has enabled it to expand its product portfolio, including the Express portfolio, NGS tools, and recently developed enzymes. This diversification has allowed the company to tap into multiple growth opportunities and deliver consistent revenue growth.

Second, Twist Bioscience's investment in research and development (R&D) has paid off, with the company successfully developing new products and improving its existing offerings. The company's R&D expenses decreased by 15% year-over-year to $90.9 million in fiscal 2024, indicating increased efficiency in research and development efforts.



Lastly, Twist Bioscience's strategic focus on SynBio, NGS, and biopharma has positioned it well to capitalize on emerging opportunities in the life sciences sector. The company's ability to leverage its proprietary platform to deliver growth and margin expansion has enabled it to maintain a strong competitive position.

Looking ahead, Twist Bioscience expects revenue in the range of $367 million to $377 million for full-year fiscal 2025, with a projected gross margin of 50% for Q4FY25. The company is also targeting adjusted EBITDA breakeven in the coming year, demonstrating its commitment to achieving long-term profitability.

In conclusion, Twist Bioscience's Q4 FY24 earnings and Q1 guidance surpassed expectations, driven by strong performance in its SynBio and NGS segments, as well as improved gross margins. The company's success can be attributed to its proprietary platform, investment in R&D, and strategic focus on growth opportunities in the life sciences sector. As Twist Bioscience continues to execute on its growth strategy, investors can expect the company to maintain its competitive edge and deliver strong financial performance in the coming years.