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Jun 30, 2023
Ginkgo Bioworks Q2 2023 Earnings Report
Ginkgo Bioworks reported a decrease in total revenue due to the expected ramp down of K-12 testing in the Biosecurity segment, but saw growth in Cell Engineering revenue and added 21 new Cell Programs to the Foundry platform.
Key Takeaways
Ginkgo Bioworks reported a total revenue of $81 million, a 44% decrease compared to the prior year, driven by the expected ramp down of K-12 testing in the Biosecurity segment. However, Cell Engineering revenue increased slightly, and the company added 21 new Cell Programs to its Foundry platform. The company ended the quarter with approximately $1.1 billion in cash and cash equivalents.
Added 21 new Cell Programs to the Foundry platform, a 62% increase over the prior year period.
Cell Engineering segment revenue was $45 million, a slight increase from $44 million in the prior year period.
Biosecurity segment revenue was $35 million, shifting away from COVID-19 testing programs towards a more recurring model.
Ended Q2 2023 with approximately $1.1 billion in cash and cash equivalents.
Ginkgo Bioworks
Ginkgo Bioworks
Ginkgo Bioworks Revenue by Segment
Revenue by Segment
Cell Engineering Revenue
CapyFin.comBiosecurity Revenue
CapyFin.com Forward Guidance
Ginkgo is targeting 100 new Cell Programs and expects total revenue of $245 to $260 million in 2023, including Cell Engineering revenue of $145 to $160 million and Biosecurity revenue of at least $100 million.
Positive Outlook
- Targeting 100 new Cell Programs to the Foundry platform in 2023
- Expecting Total revenue of $245 to $260 million in 2023
- Revised expectation for Cell Engineering revenue to $145 to $160 million in 2023
- Expect Biosecurity revenue in 2023 of at least $100 million
- Mix shift towards emerging product lines that are expected to be more recurring in nature
Challenges Ahead
- Revenue decrease primarily driven by the expected ramp down of K-12 testing in Ginkgo’s Biosecurity segment
- Revision is driven by an evolution in the typical size and structure of our contracts, including success-based pricing which is impacting the timing of revenue recognition.
- Challenging environment, particularly for industrial biotechnology
- Biosecurity remains an uncertain business
- Adjusted EBITDA of $(75) million, down from $(24) million in the comparable prior year period
Revenue & Expenses
Visualization of income flow from segment revenue to net income