Twist Bioscience Corp (TWST) Reports 20% Revenue Growth in Fiscal 2023
Twist Bioscience Corp (NASDAQ:TWST) sees a 20% increase in annual revenue, reaching $245.1 million in Fiscal 2023.
Orders rise by 17% year-over-year, signaling strong demand for TWST's synthetic DNA products.
Net loss narrows as the company reduces operating expenses and focuses on a path to profitability.
On November 17, 2023, Twist Bioscience Corp (NASDAQ:TWST) released its 8-K filing, detailing its financial results for the fourth quarter and full fiscal year of 2023. The company, a pioneer in synthetic DNA manufacturing, has reported a significant 20% increase in revenue, reaching $245.1 million for the fiscal year ended September 30, 2023. This growth is attributed to robust sales in Next-Generation Sequencing (NGS) and synthetic biology (synbio) products.
Fiscal 2023 Financial Highlights
Twist Bioscience Corp (NASDAQ:TWST) has demonstrated a solid financial performance with orders climbing to $264 million, marking a 17% increase from the previous fiscal year. The company's cost of revenues also rose to $155.4 million, up from $119.3 million in Fiscal 2022. However, TWST managed to reduce its research and development expenses to $106.9 million, down from $120.3 million, and its selling, general, and administrative expenses to $189.7 million, a decrease from $212.9 million in the prior year.
These strategic cost reductions contributed to a narrower net loss of $204.6 million, or $3.60 per share, compared to a net loss of $217.9 million, or $4.04 per share, in Fiscal 2022. As of September 30, 2023, TWST's cash position stood at $336.4 million in cash, cash equivalents, and investments.
Fourth Quarter Fiscal 2023 Performance
For the fourth quarter of Fiscal 2023, TWST continued its upward trajectory with orders totaling $71.1 million, a jump from $62.1 million in the same period last year. Revenue for the quarter also increased to $66.9 million, up from $57.3 million in the fourth quarter of Fiscal 2022. The company's cost of revenues saw an uptick to $42.4 million, while research and development expenses decreased to $23.7 million. Selling, general, and administrative expenses were trimmed down to $47.4 million.
These efforts resulted in a reduced net loss of $46.2 million, or $0.81 per share, for the quarter, improving from a net loss of $51.1 million, or $0.91 per share, in the prior year's corresponding quarter.
Operational and Strategic Developments
During Fiscal 2023, TWST expanded its customer base to approximately 3,450 customers and increased the number of genes shipped to approximately 634,000. The company also strengthened its executive team and launched new products, including Twist Express Genes and Twist Full Length Unique Dual Index Adapters. Notably, TWST entered into significant partnerships with Bayer and Ono Pharma, and collaborated with IMIDomics, highlighting its commitment to innovation and growth in the biopharma sector.
Looking Ahead: Fiscal 2024 Financial Guidance
For the upcoming fiscal year, TWST anticipates revenue to be in the range of $285 million to $290 million, representing a growth of 16 to 18 percent. The company projects a gross margin of approximately 39% to 40% and operating expenses between $294 to $298 million. The anticipated loss from operations before taxes is expected to decrease by 15 to 18 percent, indicating a focused path toward profitability.
Twist Bioscience Corp (NASDAQ:TWST) has set a clear strategy for the future, aiming to increase gross margin over time and drive the business toward profitability. With a cautious optimism for the Biopharma Solutions trajectory and a solid financial foundation, TWST is positioning itself for sustainable growth and success in the dynamic field of synthetic biology.
Investors and analysts can find more detailed information on the company's financials and future outlook during the conference call and live audio webcast hosted by TWST.
Explore the complete 8-K earnings release (here) from Twist Bioscience Corp for further details.
This article first appeared on GuruFocus.
