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  "documentTitle": "Twist Bioscience (TWST)",
  "authorId": "58_Scorpion_Capital",
  "authorName": "Scorpion Capital",
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  "presentationDate": "2022-11-15 00:00:00",
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  "notes": "The slide uses a red box to highlight the 'Gross margin' row and a red arrow to draw attention to the trend, framing the discrepancy as a potential accounting issue.",
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      "text": "Twist has reported rapidly rising gross margins every year, projected to keep rising per CFO comments",
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      "text": "gross margin: 60%",
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      "text": "During our research, we were troubled by a massive discrepancy: ex-employees, competitors, and industry experts provided overwhelming color that Twist sells below its cost of goods, due to its 1) its reckless customer subsidy and discounting scheme, and 2) the turmoil in its manufacturing operations from errors, re-work, redundancy, etc. However, Twist’s financials report an unusually high gross margin for a commodity manufacturer – a margin that steadily, smoothly increases every year. The CFO frequently pushes the gross margin narrative, asserting recently that “there’s no reason that it should not be a 60-plus precent gross margin business.”",
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      "text": "“there’s no reason that it should not be a 60-plus precent gross margin business.” — CFO",
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      "text": "Source: Capital IQ data; CFO comments excerpted from Capital IQ transcript of conference Q&A on Aug 9, 2022",
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