Twist Bioscience (TWST) investor relations material

Growth drivers and market positioning

• Achieved 20% projected growth for FY2025 and 17% last quarter, outpacing sector peers through new product introductions, share gains, and account expansion.

• Rapidly expanded total addressable market from $2B in 2020 to $7B in 2025 by launching new products and leveraging silicon chip economics.

• Differentiation achieved via product quality, speed, cost, and customer support, with a focus on commercial excellence and e-commerce.

• AI-driven drug discovery products have become a fast-growing segment, demonstrating agility in identifying and meeting emerging market needs.

• Scale, automation, and software enable delivery of thousands of protein sequences in 15-20 days, supporting high-throughput drug discovery.

Financial performance and operational strategy

• Maintained a 24% CAGR in revenue over three years, with gross margin expanding from low 30s to over 50%.

• 75%-80% of revenue growth drops to gross margin due to low variable costs; disciplined OpEx management supports adjusted EBITDA breakeven by Q4.

• Shifted focus from milestone/royalty contracts to fee-for-service for faster revenue recognition, especially in monospecifics.

• Bispecifics, enabled by Invenra B-Body technology, are expected to drive future royalties and growth.

• Automated high-throughput facilities and targeted sales force expansion support scalable growth and margin improvement.

Market trends and customer engagement

• AI and automation are transforming protein expression and drug discovery, with new startups and top pharma adopting these approaches.

• Strategy is to offer a comprehensive menu (in vivo, in vitro, AI, various displays) to meet diverse customer needs and break revenue barriers.

• Achieved $111M in therapeutics drug discovery revenue, doubling the $50M barrier and growing 21%-25% last year.

• MRD segment is highly sticky due to speed, scale, and pricing advantages; MRD Express aims to reduce delivery from five days to one.

• E-commerce rollout and territory-focused sales teams target under-penetrated academic and institutional markets.