Core Viewpoint - Twist Bioscience has shown improved revenue and gross margins but continues to face significant financial challenges, including a notable EPS miss and an impairment charge affecting future growth prospects [2][8]. Financial Performance - The company reported revenue of 81.5millioninQ22024,a284 million [2]. - The gross margin improved to 43.3% from 34.4% year-over-year, indicating enhanced operational efficiency [5]. - EPS came in at -1.47,missingexpectationsof−0.74, primarily due to a 44.9millionimpairmentchargerelatedtothebiopharmasegment[2][8].RevenueEstimates−ForfiscalQ4,Twistraisedrevenueestimatestobetween82 million and 83million,upfromapreviousestimateof77 million to 80million[2].MarketSegments−Thenext−generationsequencing(NGS)segmentsawa3143.4 million, driven by demand from clinical customers [5]. - The biopharma segment, previously expected to be a significant growth driver, has underperformed, leading to a reassessment of long-term growth forecasts [8]. Research and Development - R&D expenses for the nine months ended June 30, 2024, were reported at 69million,indicatingapotentiallimitationingrowthandmarketleadership[7].−Thecompanyaimsforgrossmarginsexceeding50239.142 million in cash and cash equivalents, indicating the ability to meet short-term obligations [10]. - The comprehensive loss for the nine months ended June 30, 2024, was 174million,suggestingacashburnofapproximately58 million per quarter, providing an estimated runway of about 5 quarters [11]. Competitive Landscape - Twist's proprietary silicon-based DNA synthesis platform offers potential advantages, but faces competition from established companies and other emerging technologies [6]. - The NGS market is highly competitive, with major players like Thermo Fisher Scientific and Illumina dominating due to continuous innovation [5].
Twist Bioscience(TWST) Seeking Alpha·2024-08-04 12:50