Twist Bioscience Corporation ( NASDAQ: TWST ) lost ~6% pre-market Friday after the maker of synthetic DNA products issued Q1 FY23 results setting its guidance for the second quarter below expectations.
Thanks to $49M of combined SynBio revenue and NGS revenue, the company expects its revenue for the current quarter to reach $56.5M compared to $61.8M in the consensus.
Meanwhile, the expenses associated with the Wilsonville, Oregon manufacturing facility are expected to drive down the Q1 FY23 gross margin to 30%.
However, Twist ( TWST ) reaffirmed its revenue outlook for fiscal 2023 and 2024, indicating $261M – $269M and $350M in line with $265.6M and better than $345M in the consensus, respectively.
The company expects SynBio and NGS revenue for FY23 to reach $104M – $106M and $120M –$123M, respectively, while gross margin is projected to reach 39% – 40%, unchanged from the previous outlook.
During the December quarter, Twist ( TWST ) recorded $54.2M in revenue with ~29% YoY growth as total orders jumped ~30% to $64.7M while the company shipped products to ~2.1K customers, a ~14% rise.
Meanwhile, net loss contracted ~8% YoY to $41.8M as SG&A expenses fell ~17% YoY to $42.3M. And the company recorded $316.7M in cash and cash equivalents at the end of the quarter, a ~16% YoY decline from the FY21 end.
Read: Seeking Alpha contributor Ranjit Thomas thinks that TWST “operates in a trendy space, with good growth, but atrocious margins.”
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Twist Bioscience slips after Q1 results as outlook disappoints