Twist Bioscience Corporation

Welcome to Twist Biosciences' 2025 Fourth Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To participate, you will need to press star one one on your telephone. You will then hear a message advising your hand is raised. To withdraw your question, simply press star one one again. Please note, this conference is being recorded. I would now like to turn the call over to Angela Biding, Senior Vice President of Corporate Affairs. Please go ahead.

Thank you, Operator. Good morning, everyone. I would like to thank you for joining us for TWIST Bioscience Conference Call to review our fiscal 2025 fourth quarter and full year 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 LaProost, 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 a call for questions. We ask that you limit your questions to only one and then re-queue 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 in financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include those set forth in our press release we issued earlier today, as well as 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 will now turn the call over to our CEO and co-founder, Dr. Emilie Lacroost.

Thank you, Angela, and good morning, everyone. Today, our team delivered a record quarter with $99 million in revenue, exceeding our guidance. This represents an increase of 17% year-over-year and our 11th quarter of consecutive growth. For the year, we reported $376.6 million in revenue growth of 20% over fiscal 2024. Growth margin for a quarter came in at 51.3%. For the year, growth margin was 50.7% compared to 42.6% for fiscal 2024, demonstrating the leverage of fixed costs with higher volume and reflecting our focus over the last two years on continuous margin improvement. I'd like to underscore that over the course of fiscal 2025, we grew our business 20%. leveraging our proprietary silicon chip-based technology platform to deliver high-quality products and services rapidly to our growing customer base. Importantly, through the addition of new products and solutions, we expanded our market share with an eye towards addressing new services in the market in the year ahead. Our commitment to commercial excellence continues to ensure we meet and exceed our customers' expectations. Today, with our differentiated manufacturing technology, Our innovative R&D for the continuous introduction of new products, our base of more than 3,800 customers across multiple industries, our hundreds of SKUs having a wide range of diverse applications, and an increasing market share in multiple markets, we're operating with incredible execution and financial discipline. And with the GCDB tiebreak even within our reach by the end of fiscal 2026, this year we'll focus on setting the stage for future growth acceleration. Turning to our results. SynBio revenue came in at $39.5 million, up 17% year-over-year. Our growth in SynBio continues to be led by the Express portfolio, which remains best-in-class in terms of price, turnaround time, and scalability. Two years after launch, our customers have come to depend on the rapid turnaround time, high quality, and exceptional experience they receive from Twist as their new normal and what they expect regularly. We have decreased the turnaround time for gene fragments, clonogenes, high-throughput DNA preps, and high-throughput IgG proteins, and we now run assays and provide antibiotic characterization data as part of our offering for many customers. One area of substantial growth for Symbiont Biopharma offerings came from customers choosing Twisto Power, their therapeutic discovery initiatives, both traditional drug discovery and AI-enabled discovery, because our platform delivers precision, scale, and speed at enabling economics. While traditional discovery continues to be a focus of many customers, the rapid expansion of AI-enabled drug discovery creates powerful new opportunities and amplifies the value of our technology. Recently, this AI-driven discovery fueled significant growth for TWIFT. In fiscal 2025, orders from customers working on AI discovery projects grew more than $25 million versus fiscal 2024. These projects primarily fall into the seen-by-and-by farmer bucket today, and a customer pursuing AI-enabled discovery delivered our single largest purchase order to date. And the emergence of dozens of new organizations across pharma, biotech, and big tech pursuing new discovery approaches expands the market opportunity for SynBio and Biopharma groups today. Relatively, as we have moved further up the value chain from fragment to genes to prep to protein to delivering characterization data and beyond, the strategy connection between our FinBuy and Biopharma Groups tightens. More customers now leverage both products and services to accelerate discovery and identify breakthrough therapeutics. This growing convergence highlights the power of our integrated platforms and reinforces Twist's unique position to serve the full spectrum of innovation in discovery, with more products and services to facilitate this growing opportunity coming in the months ahead. Over the last several years, our product introductions are focused on pharma and biotech customers pursuing therapeutic discovery as well as academic research. As we analyze the future market opportunities, we believe this continues to be a ripe area of focus for additional tools and services. Moving forward, we have a robust roadmap and planned product introductions to augment our portfolio that we believe will continue to drive revenue growth in 2026 and in the future. According to NGS, we reported revenues of $53 million, growth of 16% year-over-year, driven largely by continued commercial success from our diagnostic customers' clinical assays. Our NGS products are an integral component within many commercial diagnostic workflows. Recall that we provide tools for customers offering tests for therapy selection, liquid biopsy, comprehensive genomic profiling, rare disease, non-invasive prenatal testing, and procreation genetics. In addition, we continue to support minimal residual disease customers with several of these groups targeting commercial launch in late 2026 and planning commercial scaling into 2027. And we are beginning to see conversion of the microarray to FlexPleb plus sequencing workflow. Introduced about a year ago, we believe this product provides significant potential growth opportunities both for population genetics and agbio applications. During the quarter, We had two significant population genetic wins, with the funnel growing in serviceable opportunity for the $500 million market that uses SNP macroarray technology today. Customers in both segments run millions of samples, so once converted, the business is bulky. We have maintained our sequencing agnostic strategies throughout our NGS product portfolio with all sequencing platforms. While the majority of our customers continues to use DLMA platform, and we have an active OEM agreement with Illumina, we also see growing interest in other platforms. To this end, we announced an advancement of our agreement with Element Biosciences last month that enables us to gain exclusive access to Element's new Trinity Freestyle workflow, facilitating the use of Twist, a full lineup of library props for the IVT system. Together, Element and Twist shortens the workflow from sample to sequencer from more than 20 hours down to 5 hours. a true time savings. In addition, we are powering the gene-by-gene population genetics test that runs on the Ultima Genomics sequencing platform. This complements our work with PacBio, Oxfam and OPPOR, and others. We continue to see traction, building for RNA-seq workflows, having customers who offer diagnostic tests as well as labs offering clinical services with growth expected across all areas of the NGS portfolio in 2026. Looking at BioPharma services, we reported $6.4 million in revenue, an increase of 22% year-over-year. Importantly, orders of approximately $11.5 million for the fourth quarter, or fiscal 25, reflect a large order that spans both SinBio and BioPharma, from a key account that we do not expect to repeat every quarter. More customers now partner with Swiss across the full design, build, test, and learn cycle for developability assays and characterization data. This trend continues to grow, especially among AI-driven drug discovery companies. Many of these customers operate without a wet lab and rely on TWIST to execute the critical experiments that bring their designs to life. We help them move fast, generate robust data, and advance programs with great confidence. We see much more integration between our SINBAI and BAFAMA businesses, as customers increasingly use both our products and services to power their discovery pipelines. To capture this opportunity, we aligned our sales organizations to deepen collaboration and fully leverage the synergies between the two. We also received valuable feedback from investors that our SynBio and BioPharma names for revenue groupings feel more clear. Reflecting this progress and feedback, we will combine SynBio and BioPharma revenue for reporting going forward under the terms DNA Synthesis and Protein Solutions. indicating synthesis and manufacturing of sequences for DNA, RNA, proteins, and data for customers going through the design, build, test, learn cycle. DNA synthesis and protein solutions more accurately represents our customer base, and we intend to provide additional insight into industry groupings that better reflects how we serve a broad range of customers. Our NGS tools will now be called NGS applications, as its products and services facilitate DNA reading sequencing workflows. Beginning in the first quarter of fiscal 26, we will be breaking out industry groupings into therapeutics, diagnostics, industry and applied markets, as well as academics and government. In addition, something that is underappreciated about Twist is the number of organizations that buy products from Twist and then resell them under a different brand name. As such, we will also share global supply partner revenue encompassing distributor and OEM partners as part of our industry breakdown. These new groupings enhance transparency, and better align with how our business operates, providing investor insight into our strong growth engine. I would now like to turn the call over to Paddy for commentary on our growth initiative for 2020.