Ginkgo Bioworks (DNA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $89 million, up 61% year-over-year, driven by a $45 million non-cash deferred revenue release from the Motif contract termination and growth in cell engineering programs.

• Adjusted EBITDA loss improved to $(20) million from $(84) million in Q3 2023, reflecting cost reductions and operational efficiency.

• Net loss narrowed to $(56) million from $(303) million in Q3 2023, aided by lower R&D and G&A expenses and absence of large asset impairments.

• Major restructuring included a 35% workforce reduction, site consolidation, and sale of the Altar subsidiary, with further cost optimization ongoing.

• Cash and cash equivalents stood at $616 million at quarter-end, with no bank debt and sufficient liquidity for at least the next 12 months.

Financial highlights

• Q3 2024 total revenue: $89 million (up 61% year-over-year); cell engineering revenue: $75 million (up 102%); biosecurity revenue: $14 million (down 24%).

• Excluding the $45 million non-cash item, cell engineering revenue was $30 million, down 20% year-over-year.

• Operating expenses decreased 58% year-over-year to $144 million in Q3 2024.

• Stock-based compensation expense fell to $14 million, down from $54 million year-over-year.

• Goodwill impairment of $47.9 million and restructuring charges of $20 million year-to-date.

Outlook and guidance

• 2024 total revenue guidance updated to $215–235 million, reflecting the $45 million non-cash deferred revenue release.

• Cell engineering services revenue expected at $165–185 million; biosecurity revenue at least $50 million.

• Targeting annualized cost savings of ~$200 million by mid-2025 and Adjusted EBITDA breakeven by end of 2026.