On November 18, 2024, Twist Bioscience Corp (TWST, Financial) released its 8-K filing, reporting impressive financial results for the fourth quarter and full fiscal year 2024. The synthetic biology company, known for its innovative DNA synthesis platform, achieved record revenue of $313.0 million for the year, marking a 28% increase from the previous year. The fourth quarter alone saw a 27% revenue increase to $84.7 million, surpassing analyst estimates of $82.20 million.
Company Overview
Twist Bioscience Corp is a leader in synthetic biology, utilizing a proprietary semiconductor-based DNA synthesis platform. This technology allows for the rapid and cost-effective production of high-quality synthetic DNA, primarily serving the United States market. The company's platform is pivotal in overcoming traditional inefficiencies, enabling researchers to capitalize on new opportunities swiftly.
Performance and Challenges
Twist Bioscience's fiscal 2024 performance underscores its growth trajectory, with significant revenue increases across its SynBio and NGS segments. SynBio revenue rose by 26% to $123.5 million, while NGS revenue surged by 37% to $169.1 million. However, the company faced a slight decline in Biopharma revenue, which fell to $20.3 million from $23.2 million in the previous year. Despite these challenges, the company's ability to maintain growth in its core segments is crucial for sustaining its competitive edge in the Medical Diagnostics & Research industry.
Financial Achievements
Twist Bioscience's financial achievements are noteworthy, particularly its gross margin improvement to 42.6% for fiscal 2024, up from 36.6% in fiscal 2023. This margin expansion is vital for the company's profitability and reflects its operational efficiencies. The company's strategic focus on expanding its product portfolio, including the launch of new enzymes and NGS tools, has been instrumental in driving revenue growth and margin improvements.
Key Financial Metrics
Twist Bioscience reported a net loss of $208.7 million for fiscal 2024, consistent with the previous year's loss of $204.6 million. The adjusted EBITDA improved significantly to $(93.5) million from $(147.3) million, indicating progress towards operational efficiency. The company's cash position remains robust, with $276.4 million in cash, cash equivalents, and short-term investments as of September 30, 2024.
| Metric | Q4 FY2024 | FY2024 |
|---|---|---|
| Revenue | $84.7 million | $313.0 million |
| Gross Margin | 45.1% | 42.6% |
| Net Loss | $34.7 million | $208.7 million |
| Adjusted EBITDA | $(17.0) million | $(93.5) million |
Analysis and Outlook
Twist Bioscience's consistent revenue growth and improved margins highlight its strong market position and operational capabilities. The company's strategic initiatives, including product diversification and technological advancements, are expected to drive future growth. As Twist Bioscience continues to invest in research and development, it aims to achieve adjusted EBITDA breakeven, positioning itself for long-term profitability.
Exiting fiscal 2024, we saw another quarter of record revenue and our seventh consecutive quarter of revenue growth. We continue to leverage our proprietary platform to add to our portfolio of solutions that deliver growth and margin expansion," said Emily M. Leproust, Ph.D., CEO and co-founder of Twist Bioscience.
Twist Bioscience's fiscal 2025 guidance projects revenue growth of 17% to 20%, with expectations of achieving a 50% gross margin by the fourth quarter. This outlook reflects the company's confidence in its growth strategy and market potential.
Explore the complete 8-K earnings release (here) from Twist Bioscience Corp for further details.
