On February 3, 2025 Twist Bioscience Corporation (NASDAQ: TWST), a core mid-cap growth and value equity company in the life sciences segment of the health care sector, reported financial results and business highlights for the first quarter of fiscal 2025 ended December 31, 2024 (Press release, Twist Bioscience, FEB 3, 2025, View Source [SID1234650003]).

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"We ended the first quarter of fiscal 2025 with our eighth consecutive quarter of revenue growth and continued improvement in gross margin. We’re starting the fiscal year strong, demonstrating our unwavering commitment to progressing toward adjusted EBITDA breakeven," said Emily M. Leproust, Ph.D., CEO and co-founder of Twist Bioscience.

Dr. Leproust continued, "As we move through 2025, we are pursuing multiple growth vectors that we believe will help us to achieve adjusted EBITDA breakeven and then build on our foundation to drive sustainable growth in the years to come. Importantly, we expect to exit the fourth quarter of fiscal 2025 with gross margin over 50%."

See "Non-GAAP Information" below for a discussion of the measure adjusted EBITDA.

FISCAL 2025 FIRST QUARTER FINANCIAL RESULTS

•Revenue: Total revenues for the first quarter of fiscal 2025 grew to $88.7 million compared to $71.5 million for the same period of fiscal 2024.
◦SynBio revenue grew 28% to $34.4 million for the first quarter of fiscal 2025 compared to $26.9 million for the same period of fiscal 2024.
◦NGS revenue grew 23% to $48.6 million for the first quarter of fiscal 2025 compared to $39.4 million for the same period of fiscal 2024.
◦Biopharma revenue was $5.7 million for the first quarter of fiscal 2025 compared to $5.2 million in the same period of fiscal 2024.
•Cost of Revenues: Cost of revenues for the first quarter of fiscal 2025 was $45.9 million compared to $42.5 million for the same period of fiscal 2024.
•Gross Margin: Gross margin for the first quarter of fiscal 2025 increased to 48.3% compared to 40.5% for the same period of fiscal 2024.

•Research and Development Expenses: Research and development expenses for the first quarter of fiscal 2025 were $21.3 million compared to $23.1 million for the same period of fiscal 2024.
•Selling, General and Administrative Expenses: Selling, general and administrative expenses for the first quarter of fiscal 2025 were $56.2 million compared to $52.8 million for the same period of fiscal 2024.
•Net Loss: Net loss attributable to common stockholders for the first quarter of fiscal 2025 was $31.6 million, or $0.53 per share, compared to $43.0 million, or $0.75 per share, for the same period of fiscal 2024.
•Adjusted EBITDA: Adjusted EBITDA for the first quarter of fiscal 2025 was $(16.3) million compared to $(27.8) million for the same period of fiscal 2024. See the table included in this release for a reconciliation between our adjusted EBITDA and net loss attributable to common stockholders, the most directly comparable GAAP financial measure.
•Cash Position: As of December 31, 2024, the company had $270.8 million in cash, cash equivalents and short-term investments.

Recent Highlights:

•Shipped products to approximately 2,376 customers in the first quarter of fiscal 2025, versus approximately 2,140 customers in the first quarter of fiscal 2024.
•Shipped approximately 205,000 genes during the first quarter of fiscal 2025, compared with approximately 171,000 genes during the first quarter of fiscal 2024.

Updated Fiscal 2025 Financial Guidance

The following statements are based on Twist’s current expectations for fiscal 2025, including the second quarter of fiscal 2025. The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under "Forward-Looking Statements" below.

For the full fiscal year 2025, Twist expects:

•Total revenue to be in the range of $372 million to $379 million compared to the previous guidance of $367 million to $377 million, indicating growth of 19 to 21 percent year over year, including:
◦SynBio revenue of $144 million to $147 million, compared to previous guidance of $142 million to $146 million, growth of 17 to 18 percent
◦NGS revenue of $205 million to $209 million, compared to previous guidance of $204 million to $209 million, growth of 21 to 24 percent

◦Biopharma revenue of $23 million, compared to previous guidance of $21 million to $22 million, growth of 13 percent
•Gross margin is projected to be approximately 49% for fiscal 2025 with quarterly sequential improvements, compared to previous guidance of 48% and 4QFY25 gross margin is projected to be over 50%
•Adjusted EBITDA of approximately $(55) million to $(60) million for fiscal 2025 compared to previous guidance of $(60) million to $(65) million

For the second quarter, Twist expects:

•Total revenue of approximately $91 million to $93 million, growth of 21 to 24 percent year over year
•SynBio revenue of approximately $35.5 million to $36 million, growth of approximately 19 to 21 percent year over year
•NGS revenue of approximately $50 million to $51 million, growth of 23 to 25 percent year over year
•Biopharma revenue of approximately $5.5 million to $6.0 million
•Adjusted EBITDA of approximately $(16) million with sequential improvements throughout 2025

Non-GAAP Information

This release includes EBITDA and adjusted EBITDA, which are non-GAAP financial measures, for the periods presented. EBITDA is defined as net loss adjusted to exclude interest income, interest expense, income tax expense and depreciation and amortization. Adjusted EBITDA is defined as net loss adjusted to exclude interest income, interest expense, income tax expense, depreciation and amortization, other income/expense, net and stock-based compensation expense detailed in the reconciliation table below that we believe are not indicative of our ongoing results. These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles (GAAP) and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Management believes that these non-GAAP financial measures, when considered together with our financial information prepared in accordance with GAAP, can enhance investors’ and analysts’ ability to meaningfully compare our results from period to period and to our forward-looking guidance, and to identify operating trends in our business. However, non-GAAP information is not superior to financial measures calculated in accordance with GAAP, is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. A reconciliation table of the most comparable GAAP financial measure to the non-GAAP financial measures is included at the end of this press release.

A reconciliation of adjusted EBITDA for fiscal 2025 and the second quarter of fiscal 2025 to a corresponding GAAP financial guidance measure is not available on a forward-looking basis because the Company does not provide guidance on GAAP net loss and is not able to present the various reconciling cash and non-cash items between GAAP net loss and adjusted EBITDA without unreasonable effort. In particular, stock-based compensation expense is impacted by the Company’s future hiring and retention needs, as well as the future fair market value of its common stock, all of which is difficult to predict and is subject to change. The actual amount of these expenses during fiscal 2025 and the second quarter of fiscal 2025 will have a significant impact on Twist’s future GAAP financial results.

Conference Call Information

The company plans to hold a conference call and live audio webcast for analysts and investors at 8:00 a.m. Eastern Time today to discuss its financial results and provide an update on the company’s business. The conference call will be webcast live through the Investor Relations section under the "Company" tab at www.twistbioscience.com. Those parties interested in participating via telephone must register on the Company’s Investor Relations website. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. The webcast replay will be available for two weeks.