Twist Bioscience Corporation

Good day. Thank you for standing by. Welcome to TWIST Biosciences 2025 First Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. After this speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automatic message advising your hand is raised. Please note that today's conference may be recorded. I would now like to turn the conference Over to Angela Binning, SVP of Corporate Affairs. Please go ahead.

Thank you, operator. Good morning, everyone. I would like to thank you for joining us for Twist Bioscience's conference call to review our fiscal 2025 first quarter financial results and business progress. We issued our financial results press release before the market, and it is available at our website at www.twistbioscience.com. With me on the call today are Dr. Emily Leprous, CEO and co-founder of Twist, Adam Laponis, CFO of Twist, and Dr. Patrick Finn, President and COO of Twist. Today we will discuss our business progress, financial and operational performance, as well as growth opportunities. We will then open the call for questions. We ask that you limit your questions to only one and then read Q as a courtesy to others on the call. This call is being recorded. The audio portion will be archived in the investor section of our website and will be available for two weeks. During today's presentation, we will make forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements generally relate to future events or future financial or operating performance. Our expectations and beliefs regarding these matters may not materialize, and actual results of financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include those set forward in the press release we issued earlier today, as well as those more fully described in our filings with the Securities and Exchange Commission. The forward-looking statements in this presentation are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements except as required by law. We'll also discuss adjusted EBITDA, a financial measure that does not conform with generally accepted accounting principles. Information may be calculated differently than similar non-GAAP data presented by other companies. When reported, a reconciliation between GAAP and non-GAAP financial measures will be included in our earnings documents. which can be found on the investor section of our website. With that, I'll now turn the call over to our CEO and co-founder, Emily Leproust.

Thank you, Angela, and good morning, everyone. We are pleased to report yet another quarter of strong sequential growth in both revenue and gross margin, demonstrating our unwavering progress towards the milestone of adjusted EBITDA breakeven and subsequent growth. Driving our success is our cutting-edge DNA synthesis platform, a breakthrough innovation that not only powers our business, but also positions us to capitalize on a wide array of market opportunities. This platform is proprietary, differentiated, scalable, and adaptable. Importantly, the platform serves as a foundation for every product group across the company. Years ago, we set an ambitious yet clear path to profitability, and today, we are proud to be delivering on that promise. Through disciplined execution and the momentum we have built across our initiatives, we will remain firmly on course to achieve adjusted EBITDA break-even without raising capital while continuing to invest in profitable growth opportunities for the future. Getting into the financials, we exceeded our guidance for revenue and margin, reporting another quarter of record revenue of $88.7 million, an increase of 3.4% year-over-year and 5% sequentially. Growth margin for the quarter, came in ahead of our guidance at 48.3% compared to 40.5% for the first quarter of fiscal 2024, demonstrating the leverage of fixed costs with higher volume, as well as our ongoing commitment to continuous improvement and margin expansion initiatives. In addition, this is another quarter of showing that 75% to 80% of incremental revenue, on average, drops to the gross margin line. Revenue for SYNBIO increased to $34.4 million, an increase of 28% year-over-year, with a growth in this product group reflecting a diverse global customer base. We continue to see sequential growth in our express portfolio, both in revenue and number of net new accounts. We continue to push our time-to-time, with the majority of gene fragments shipped within two days and clonal genes shipped within four days, with the full express portfolio benefiting from this speed. Our ability to deliver product quickly at a reasonable cost, expands our customer base, and also is extending our wallet share within existing accounts. With our speed and price, we have seen new applications and innovations from researchers across the globe and will continue to be inspired by their drive to improve health and sustainability. For NGS, we reported $48.6 million in revenue, an increase of 23% year-over-year. The continued strength was driven primarily by customers commercializing liquid biopsy and rare disease assays. In addition, we see initial uptake in emerging applications of our differentiated library prep products, along with other workflow components, as customers choose Twist to supply all reagents between the sample and the sequencer. And during the quarter, we saw a very significant conversion from microwave to Twist plus sequencing, this one in human health. By maintaining our sequencer-agnostic approach, meaning our workflow is compatible with different sequencers based on our customers' preference, we remain a key partner providing NGS workflows for many different applications in addition to liquid biopsy and minimal residual disease. Turning to biopharma services, our revenue increased to $5.7 million with orders of $5.9 million. We remain cautiously optimistic as the funnel of opportunities continues to build. By leveraging our strategic fit across our SynBio and BioPharma services portfolio, we continue to remain focused on delivering valuable services for our partners. Our data storage team continues to advance development of the technology, working with water-based enzymatic chemistry to synthesize DNA on our CMOST-based chips for the terabyte-scale product. I would now like to turn the call over to Paddy for commentary on growth margin and innovation. Thanks, Henry.