Twist Bioscience Reports 24% Revenue Growth to $88.7 Million in Q1 Fiscal 2025

Twist Bioscience Corporation reported a revenue increase of 24% for the first quarter of fiscal year 2025, with revenues reaching $88.7 million compared to $71.5 million in the same period last year. This growth was primarily driven by increased demand for next-generation sequencing (NGS) tools and synthetic genes. The company also noted a significant improvement in gross margin, which rose to 48.3% from 40.5%, attributed to higher sales volume and the spreading of fixed costs over a larger revenue base. Despite the revenue growth, Twist Bioscience continued to incur net losses, reporting a net loss of $31.6 million, down from $43.0 million in the prior year.

In terms of operational metrics, the number of customers purchasing products increased to approximately 2,376, up from 2,140 in the previous year. The company shipped around 205,000 genes during the quarter, a 20% increase from the 171,000 genes shipped in the same quarter of the previous year. The Americas region accounted for 61% of total revenues, while EMEA and APAC contributed 32% and 8%, respectively. The company’s product offerings included synthetic genes, oligo pools, DNA libraries, antibody discovery services, and NGS tools, with the latter generating the highest revenue at $48.6 million.

Twist Bioscience's operating expenses for the quarter totaled $123.4 million, an increase from $118.5 million year-over-year. Research and development expenses decreased by 8% to $21.3 million, while selling, general, and administrative expenses rose by 6% to $56.2 million, reflecting higher personnel costs and increased spending on outside services. The company also recorded interest income of $3.2 million, down from $4.1 million, due to a lower balance of cash equivalents and short-term investments.

The company’s balance sheet as of December 31, 2024, showed total assets of $608.6 million, with cash and cash equivalents of $221.4 million and short-term investments of $49.4 million. Total liabilities increased to $152.6 million, primarily due to the recognition of a $15 million liability related to the sale of future revenue from a Royalty Purchase Agreement with XOMA (US) LLC. This agreement allows XOMA to receive a portion of future milestone and royalty payments from certain customer contracts.

Looking ahead, Twist Bioscience remains focused on leveraging its proprietary DNA synthesis technology to expand its product offerings and market presence. The company anticipates that its current cash reserves will be sufficient to fund operations for at least the next year. Management emphasized the importance of successfully commercializing additional products in synthetic biology and biologic drug sectors to achieve profitability in the future.