Twist Bioscience Corp Q2 FY2025 earnings call

• Spun out DNA data storage: Twist has spun out DNA data storage as Atlas Data Storage, with $155 million investment from joint venture partners. Twist receives equity, royalties, and milestone payments. - Strong financial results: Recorded $92.8 million in revenue for Q2 2025, a 23% year-over-year growth and 4.6% sequential growth. Gross margin was 49.6%, ahead of guidance. - Operational initiatives: Introduced Twist Wallet for customer flexibility and a promotion for academic customers on Express Genes to help them try Express Speed. - NGS and Biopharma: NGS grew from commercial assays for diagnostics, with a partnership in AgBio. Biopharma services saw revenue growth with increasing orders. - Operational agility: Actively monitoring and refining commercial and supply chain strategies, deepening customer relationships, investing in innovation, and optimizing costs.

SynBio: Revenue of $36 million, a 21% year-over-year growth. NGS: Generated $51.1 million in revenue, marking a 25% year-over-year increase. Biopharma services: Registered $5.7 million in revenue, with a 21% year-over-year growth. Revenue by industry: Healthcare saw a rise to $52.8 million (29% increase year-over-year), Industrial Chemical climbed to $22.8 million (12% increase), and Academic revenue reached $16.5 million (20% increase). Geographically, Americas revenue was $55.2 million (20% increase), EMEA revenue was $30.6 million (38% increase), and APAC revenue was $7 million (slight change from prior year).

• Total revenue: Reiterates total revenue guide of $372 million to $379 million for fiscal 2025, 20% midpoint growth. - Segment guidance: SynBio: $144M-$147M (18% midpoint growth), NGS: $205M-$209M (23% midpoint growth), Biopharma: $23M (13% growth). - Q3 2025: Expect total revenue of $94M-$97M, 17% growth vs Q3 2024 midpoint. - Full year 2025: Expect gross margin ~49.5%, margin above 50% in back half. Adjusted EBITDA loss $48M-$53M for 2025, expect adjusted EBITDA breakeven by end of 2026.

• Uncertainties: Risks related to tariffs, market conditions, and other macroeconomic factors that could impact financial performance, as mentioned in press releases and SEC filings.

Q: Luke Sergott on tariffs and BioSecure demand.

A: Adam Laponis on share gains, baked-in guidance, and academic growth.

Q: Matt Sykes on academic promotions.

A: Emily Leproust on promotion impact, market share shifts.

Q: Subbu Nambi on NGS top 10 customers.

A: Adam Laponis on growth from existing and new customers.

Q: Doug Schenkel on reinvestment, MRD launches, and pacing.

A: Adam Laponis on pacing, reinvestment, and MRD launch contemplation.

Q: Vijay Kumar on tariffs and US A&G.

A: Emily Leproust on tariffs as tailwind, academia growth.

Q: Matt Larew on market conditions and customer behavior.

A: Emily Leproust on varied market dynamics across segments.

Q: Puneet Souda on US academic growth and orders.

A: Adam Laponis on academic growth continuation and order trends.

Q: Sung-Ji Nam on academic market importance and Express Gene.

A: Patrick Finn on academic value proposition and Express Gene opportunity.

Q: Thomas Peterson on adjusted EBITDA breakeven.

A: Adam Laponis on path to adjusted EBITDA positive.

Q: Brendan Smith on segment profitability.

A: Adam Laponis on incremental revenue impact on gross margin and growth trends.