Twist Bioscience Corporation has recently released its 10-Q report, providing a detailed look at its financial performance for the three months ended June 30, 2024. The company, headquartered in South San Francisco, California, specializes in synthetic biology and genomics, offering a range of synthetic DNA-based products including synthetic genes, oligo pools, NGS tools, DNA libraries, and antibody discovery services. It caters to a diverse customer base of approximately 3,450 customers annually across industries such as healthcare, industrial chemicals/materials, academic research, and food/agriculture.
In the three months ended June 30, 2024, Twist Bioscience reported revenues of $81.5 million, marking a 28% increase from the $63.7 million reported for the same period in 2023. The revenue growth was primarily driven by increased orders in NGS tools and synthetic genes. The number of genes shipped also saw a significant increase, rising to 212,000 from 171,000 in the same period the previous year.
Despite the revenue growth, the company incurred a net loss of $85.6 million for the three months ended June 30, 2024, compared to a net loss of $57.4 million for the same period in 2023. Twist Bioscience has experienced significant operating losses since its inception, accumulating a net deficit of $1,207.3 million. The company's ability to achieve profitability depends heavily on the success of its existing products and the development and commercialization of additional products in the synthetic biology, biologic drug, and data storage industries.
The breakdown of revenues by product and industry reveals that NGS tools accounted for 54% of total revenues in the three months ended June 30, 2024, followed by synthetic genes at 29%. The healthcare industry contributed the highest share of revenues at 54%, followed by industrial chemicals/materials at 27%.
Twist Bioscience has also made progress in reducing its net cash used in operating activities, which decreased to $48.8 million for the nine months ended June 30, 2024, from $121.8 million for the same period in 2023.
The company's financial report highlights its efforts to build a scalable commercial platform, employing a multichannel strategy that includes a direct sales force, international distributors, and an e-commerce platform launched in fiscal 2018. This platform allows customers to design, validate, and place on-demand orders of customized DNA online.
The market has reacted to these announcements by moving the company's shares -19.0% to a price of $42.97. If you want to know more, read the company's complete 10-Q report here.
