Ginkgo Bioworks (DNA) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $56.2 million, down 30% year-over-year, with declines in both Cell Engineering and Biosecurity segments.

• Net loss for Q2 2024 was $217.2 million, driven by lower revenue and a $47.9 million goodwill impairment.

• Aggressive cost reduction plan underway, including a 35% workforce reduction and facility consolidation, targeting $200 million in annualized OpEx cuts by mid-2025.

• Ended the quarter with $730 million in cash and no bank debt, providing a strong margin of safety.

• New programs and partnerships signed in Q2, including LDaaS deals with a large cap tech company and a collaboration with Syngenta.

Financial highlights

• Cell Engineering revenue was $36.2 million, down 20% year-over-year; Biosecurity revenue was $20 million, down 43% year-over-year.

• Adjusted EBITDA for Q2 2024 was $(99) million, compared to $(80) million in Q2 2023.

• Operating expenses for Q2 2024 were $279 million, up 5% year-over-year.

• Goodwill impairment of $47.9 million and restructuring charges of $17.1 million were recorded in Q2 2024.

• Cash and cash equivalents stood at $730 million at quarter-end.

Outlook and guidance

• Full-year 2024 revenue guidance reaffirmed at $170–$190 million, with Cell Engineering expected at $120–$140 million and Biosecurity at $50 million+.

• Targeting adjusted EBITDA breakeven by end of 2026.

• Restructuring plan expected to reduce operational overhead, with most workforce reductions and facility consolidations to be completed by 2025.

• LDaaS and tools offerings expected to contribute to future growth if demand materializes.