NYSE$DNA

Ginkgo Bioworks Holdings · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$80.6M

Previous: $145M-44.3%
EPS (adj)

-$3.60

Previous: -$16.40+78.0%
Capital Expenditures

-$33M

Previous: -$13.2M-150.7%
Free Cash Flow

-$206M

Previous: -$682M+69.8%
Net Income

-$173M

Previous: -$669M+74.1%
Operating Income

-$184M

Previous: -$647M+71.5%
Gross Profit

$62.5M

Previous: $80.7M-22.6%
Cash & Equivalents

$1.11B

Previous: $1.38B-19.7%
Total Assets

$2.29B

Previous: $1.99B+14.9%
Stock-Based Comp

$61.5M

Previous: $607M-89.9%

Revenue & EPS history

Ginkgo Bioworks · Revenue · Quarterly

$80.6M

Q2 2023-44.3%vs Q2 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

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.

Tailwinds

  • 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

Headwinds

  • 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

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 Q2 2023

Historical avgQ2 2023

-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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