Twist Bioscience Corporation, a company enabling customers to succeed through its offering of high-quality synthetic DNA using its silicon platform, today reported financial results and business highlights for the second quarter of fiscal 2024 ended March 31, 2024.

"This was another very strong quarter for Twist with both revenue and orders increasing to $75.3 million and $93.2 million, respectively," said Emily M. Leproust, Ph.D., CEO and co-founder of Twist Bioscience. "We're encouraged by the reception of Express Genes, with more than 700 accounts, including 100 net new accounts ordering this differentiated product since launch. We see consistent strength In NGS, where our tools are used across fields and during the quarter we announced several differentiated products spanning research areas and geographies."

Dr. Leproust continued, "We remain steadfast and focused on our path to profitability. For the full business, gross margin improved from 31% to 41% for 2QFY23 and 2QFY24, respectively. More importantly, cash flow from operating activities continues to improve, and we are driving to breakeven. For the six months ended March 31, 2024, net cash used in operating activities was $42.4 million, compared to $98.4 million for the equivalent six month period in 2023. And, as we grow revenue, we continue to take steps to improve gross margin, driving toward gross margin over 50% by the end of fiscal 2025."

FISCAL 2024 SECOND QUARTER FINANCIAL RESULTS

• Orders: Total orders received for the second quarter of fiscal 2024 increased to $93.2 million compared to $64.2 million for the same period of fiscal 2023.
• Revenue: Total revenues for the second quarter of fiscal 2024 increased to $75.3 million compared to $60.2 million for the same period of fiscal 2023.
  • SynBio revenue increased to $29.8 million for the second quarter of fiscal 2024 compared to $24.2 million for the same period of fiscal 2023.
  • NGS revenue increased to $40.8 million for the second quarter of fiscal 2024 compared to $29.0 million for the same period of fiscal 2023.
  • Biopharma revenue was $4.7 million for the second quarter of fiscal 2024 compared to $7.0 million in the same period of fiscal 2023.
• Cost of Revenues: Cost of revenues for the second quarter of fiscal 2024 was $44.4 million compared to $41.7 million for the same period of fiscal 2023.
• Gross Margin: Gross margin for the second quarter of fiscal 2024 increased to 41% compared to 31% for the same period of fiscal 2023.
• Research and Development Expenses: Research and development expenses for the second quarter of fiscal 2024 were $24.1 million compared to $27.4 million for the same period of fiscal 2023.
• Selling, General and Administrative Expenses: Selling, general and administrative expenses for the second quarter of fiscal 2024 were $55.6 million compared to $54.0 million for the same period of fiscal 2023.
• Net Loss: Net loss attributable to common stockholders for the second quarter of fiscal 2024 was $45.5 million, or $0.79 per share, compared to $59.2 million, or $1.04 per share, for the same period of fiscal 2023.
• Adjusted EBITDA: Adjusted EBITDA for the second quarter of fiscal 2024 was -$26.8 million compared to -$45.5 million for the same period of fiscal 2023. 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 March 31, 2024, the company had $293.3 million in cash, cash equivalents and short-term investments.

Recent Highlights:

• Shipped products to 2,253 customers in the second quarter of fiscal 2024, compared to approximately 2,100 customers in the second quarter of fiscal 2023.
• Shipped approximately 193,000 genes during the second quarter of fiscal 2024, compared with approximately 152,000 genes during the second quarter of fiscal 2023.
• Launched the cfDNA Library Preparation Kit to maximize the number of unique cfDNA molecules captured during library preparation for higher confidence in the accuracy and sensitivity of liquid biopsy tests.
• Launched IVDR-compliant Twist Precision Dx Products¹, the first Twist products specifically developed to be included within regulated customer products.
• Announced technology early access of the Twist Flex Prep Ultra High-Throughput (UHT) Kit, designed to accelerate NGS's microarray conversion and adoption in agricultural genomics by enabling unparalleled throughput at a fraction of the cost of existing on market solutions.
• Collaborated with Element Biosciences to develop the Twist for Element, Exome 2.0 plus Comprehensive Exome Spike-in Workflow for Element's AVITI™ System.
• Launched a new Human Pangenome Spike-in for the Twist Exome 2.0 panel, developed to enable researchers to detect a more complete view of genetic variation during whole exome sequencing.

Updated Fiscal 2024 Financial Guidance

The following statements are based on Twist’s current expectations for fiscal 2024, including the third and fourth quarters of fiscal 2024. 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 2024, Twist provided the following updated financial guidance:

• Total revenue is expected to be in the range of $300 million to $304 million compared to previous guidance of $288 million to $293 million, indicating year over year growth of 22 to 24 percent, and includes the following:
  • SynBio revenue is expected to be in the range of $118 million to $120 million compared to the previous estimate of $114 million to $117 million, indicating year over year growth of 20 to 22 percent
  • NGS revenue is expected to be in the range of $162 million to $164 million compared to the previous estimate of $150 million to $152 million, indicating year over year growth of 31 to 33 percent
  • Biopharma revenue is expected to be approximately $20 million compared to the previous estimate of approximately $24 million, indicating year over year decrease of approximately 13 percent
• Gross margin is expected to be approximately 41.5% to 42.0% for fiscal 2024, an increase from previous guidance of 40% to 41%
• Loss from operations before taxes of approximately $183 million to $188 million, a decrease from $189 million to $194 million provided previously
• Capital expenditure of $15 million, unchanged from prior guidance
• Ending cash, cash equivalents and short-term investments at September 30, 2024 of more than $245 million.

For the third quarter of fiscal year 2024, Twist provided the following financial guidance:

• Total revenue of approximately $77 million
  • SynBio revenue of approximately $31 million
  • NGS revenue of approximately $41 million
  • Biopharma revenue of approximately $5 million
• Gross margin of 41-42%

For the fourth quarter of fiscal year 2024, Twist provided the following financial guidance:

• Total revenue in the range of $77 million to $80 million
• Gross margin of 43-44%