Twist Bioscience (TWST) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 FY24 revenue of $81.5 million, up 28% year-over-year, surpassing guidance and driven by strong SynBio and NGS demand.

• Gross margin improved to 43.3%, up 900 basis points year-over-year, exceeding guidance.

• Adjusted EBITDA loss improved to $22 million, a 64.7% year-over-year improvement.

• Net loss widened to $85.6 million, primarily due to a $44.9–$45 million biopharma impairment charge.

• Ended the quarter with $289.4 million in cash, cash equivalents, and short-term investments.

Financial highlights

• Q3 FY24 revenue: $81.5 million (+28% year-over-year); orders: $85.3 million (+34% year-over-year).

• Gross margin: 43.3% (vs. 34.4% prior year); operating expenses: $170.4 million (includes $44.9–$45 million impairment charge).

• Adjusted EBITDA loss: $22 million, improved from $29.6 million prior year.

• R&D expenses: $22.5 million; SG&A: $56.8 million.

• Net cash used in operating activities for nine months: $48.8 million (vs. $121.8 million prior year period).

Outlook and guidance

• FY24 revenue guidance raised to $310–$311 million (+27% year-over-year).

• FY24 gross margin expected at ~42%; Q4 revenue guidance: $82–$83 million, gross margin ~44%.

• SynBio revenue expected at $121 million (+23% year-over-year); NGS at $169–$170 million (+36–37% year-over-year); Biopharma at $20 million.

• FY24 adjusted operating loss (excl. impairment): $182–$185 million; Q4 adjusted EBITDA loss: $20 million.

• Year-end cash expected above $255 million; CapEx for FY24 projected at $13 million.