NYSE$DNA

Ginkgo Bioworks Holdings · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Announced first quarter 2024 financial results and initiatives to accelerate path to Adjusted EBITDA breakeven by end of 2026.

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.

Headline financials

Total Revenue

$37.9M

Previous: $80.7M-53.0%
EPS

-$0.08

Previous: -$4.40+98.2%
Capital Expenditures

-$6.71M

Previous: -$19.4M+65.5%
Free Cash Flow

-$173M

Previous: -$224M+23.1%
Net Income

-$166M

Previous: -$205M+19.1%
Operating Income

-$178M

Previous: -$216M+17.5%
R&D Expense

$124M

No prior period
Stock-Based Comp

$40.8M

Previous: $73M-44.1%

Revenue & EPS history

Ginkgo Bioworks · Revenue · Quarterly

$37.9M

Q1 2024-53%vs Q1 2023
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Changes to deal structures.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-2.5%

Avg return

Earnings day

-8.6%

Avg return

5 days after

-12.3%

Avg return

30 days after

32%

7 / 22 earnings

Positive

+25.4%

Q4 2021

Best reaction

-20.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.9%-17.5%-19.4%
Q4 2025+3.1%-28.6%-36.8%
Q3 2025-20.8%-26.0%-18.1%
Q1 2025+14.8%+28.8%+17.7%
Q4 2024-11.5%-22.2%-40.5%
Q3 2024-1.8%-27.3%+17.9%
Q2 2024-1.5%+2.6%-48.4%
Q1 2024-14.8%-3.4%-42.4%
Q4 2023-15.1%-24.3%-23.7%
Q3 2023-18.2%-16.9%-11.7%
Q2 2023-15.9%-13.9%+0.0%
Q1 2023-2.9%-3.6%+35.0%
Q4 2022-4.8%-7.5%-9.5%
Q3 2022-6.3%-23.2%-41.1%
Q2 2022+3.0%-21.5%-15.4%
Q1 2022+3.0%-1.9%-2.6%
Q4 2021+25.4%+14.8%-6.3%
Q4 2019-0.3%-0.5%-11.8%
Q3 2021+8.5%+4.3%-15.9%
Q2 2021-0.1%-0.3%+1.5%
Q1 2021+0.0%-0.2%+0.2%
Q4 2020+0.0%-0.2%+0.2%
Q3 2020
Q2 2020
Q1 2020

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