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Mar 31, 2024
Ginkgo Bioworks Q1 2024 Earnings Report
Announced first quarter 2024 financial results and initiatives to accelerate path to Adjusted EBITDA breakeven by end of 2026.
Key Takeaways
Ginkgo Bioworks reported a decrease in total revenue to $38 million for Q1 2024, down from $81 million in the comparable prior year period. The company is implementing initiatives to reduce operating expenses by $200 million by mid-2025 and targeting adjusted EBITDA breakeven by the end of 2026, supported by a cash balance of $840 million.
Total revenue for Q1 2024 was $38 million, a 53% decrease compared to the prior year, primarily due to the ramp down of K-12 testing in the Biosecurity segment.
Cell Engineering revenue for Q1 2024 was $28 million, an 18% decrease compared to the prior year.
Biosecurity revenue for Q1 2024 was $10 million, with a gross profit margin of 8%, reflecting the transition to a more recurring business model.
The company aims to achieve Adjusted EBITDA breakeven by the end of 2026 through cost reductions and simplification of customer programs.
Revenue by Segment
Forward Guidance
Ginkgo expects total revenue of $170-$190 million in 2024, with Cell Engineering services revenue expected to be $120-140 million and Biosecurity revenue expected to be at least $50 million.
Positive Outlook
- Targeting Adjusted EBITDA breakeven by the end of 2026.
- Reducing annualized run-rate operating expenditures by $200 million by mid-2025.
- Consolidating Foundry operations into core facilities like Biofab1.
- Reducing labor expenses by at least 25% across G&A and R&D functions.
- Simplifying and standardizing customer programs to drive increased automation.
Challenges Ahead
- Weaker than expected revenue ramp during the year.
- Uncertainty relating to the timing of technical milestones.
- Potential near-term impact of restructuring actions.
- Exclusion of potential downstream value share from revenue guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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