Core Insights - Regeneron Pharmaceuticals is acquiring the assets of 23andMe for $256 million, which includes its personal genome service, total health, research services, and biobank of genetic samples [1] - 23andMe will continue to provide consumer genome services post-acquisition [1] Group 1: Acquisition Details - The acquisition aims to enhance 23andMe's mission of helping individuals understand their DNA and improve personal health, while also supporting Regeneron's genetic research initiatives [2] - The deal is expected to close in the third quarter of this year, with Regeneron required to adhere to 23andMe's privacy policies regarding customer data [3] Group 2: Company Background - 23andMe filed for Chapter 11 bankruptcy protection in March, leading to the immediate resignation of CEO Anne Wojcicki [4] - The company, which went public in 2021 with a valuation of $6 billion, has struggled to achieve profitability and faced significant challenges, including a $30 million settlement for a data breach and substantial layoffs [5] - As of November, 23andMe reported debts of $2.3 billion and approximately $126 million in cash and cash equivalents, indicating a need for additional liquidity [5]

Financial Performance & Targets - Ginkgo achieved $205 million in annual run-rate cost savings from Q1 2024 to Q1 2025[13] - The company maintains a strong financial position with $517 million in cash, cash equivalents, and marketable securities[15] - Total Adjusted EBITDA improved from $(117) million in Q1 2024 to $(47) million in Q1 2025, a 59% increase[34] - Ginkgo is targeting Adjusted EBITDA breakeven by the end of 2026[11, 49] - The company aims for $250 million of annualized run-rate savings target by the end of Q3 2025[53] Revenue & Growth - Cell Engineering revenue increased by 37% year-over-year, reaching $38 million in Q1 2025[34] - This includes recognition of $75 million non-cash deferred revenue from BiomEdit[24] - Total revenue increased by 27% year-over-year, from $38 million to $48 million[34] - Biosecurity revenue remained stable at $10 million in Q1 2025 compared to Q1 2024[34] Biosecurity Expansion - Ginkgo's biosecurity segment has expanded its reach to 127 countries of origin of flights sampled, representing 65% of nations globally[33] - The biosecurity network includes 11 key international airports and 45 collection nodes cumulatively in 2025[33]

Core Insights - Ginkgo Bioworks Holdings, Inc. reported a quarterly loss of $1.58 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.23, marking an earnings surprise of -28.46% [1] - The company generated revenues of $48.32 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 17.12% and showing a year-over-year increase from $37.94 million [2] - Ginkgo Bioworks shares have declined approximately 29.5% year-to-date, contrasting with the S&P 500's decline of -3.9% [3] Company Performance - Over the last four quarters, Ginkgo Bioworks has surpassed consensus EPS estimates only once, indicating inconsistent performance [2] - The current consensus EPS estimate for the upcoming quarter is -$0.47 on revenues of $44.55 million, and for the current fiscal year, it is -$3.72 on revenues of $171.48 million [7] Industry Context - The Medical - Biomedical and Genetics industry, to which Ginkgo Bioworks belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Ginkgo Bioworks' stock performance [5][6]

Financial Data and Key Metrics Changes - The company achieved a reduction in annual run rate costs of $205 million between Q1 2024 and Q1 2025, surpassing the initial target of $200 million [8] - Total company adjusted EBITDA improved to negative $47 million in Q1 2025 from negative $117 million in Q1 2024 [17] - Cash burn decreased significantly to $58 million in Q1 2025 from $104 million in Q1 2024 [18] Business Line Data and Key Metrics Changes - Cell engineering revenue reached $38 million in Q1 2025, a 37% increase year-over-year, with a 10% increase to $31 million when excluding noncash revenue [11][12] - Biosecurity revenue was $10 million in Q1 2025, with a segment gross margin of 28% [13] - The number of revenue-generating programs in cell engineering increased by 32% year-over-year, totaling 123 programs [12] Market Data and Key Metrics Changes - The company has 28 government projects across cell engineering and biosecurity, with a contracted backlog exceeding $180 million [30] - The biotechnology sector is currently facing challenges in capital markets, but companies that navigate these difficulties are expected to emerge stronger [10][25] Company Strategy and Development Direction - The company aims to reach adjusted EBITDA breakeven by the end of 2026 while maintaining a cash margin of safety [5][6] - A focus on expanding the tools business to market directly to a wider range of customers, moving beyond traditional R&D solutions [7] - The company is positioning itself as a trusted R&D service provider to the U.S. government, with ongoing investments in biotechnology and biosecurity [20][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the biotechnology sector's resilience and the potential for growth despite current market challenges [10][25] - The new U.S. administration is expected to continue funding biotechnology, with a focus on reducing regulations and increasing investment in critical technologies [26][30] - The company is well-positioned with over $517 million in cash and no bank debt, allowing it to navigate the current market environment effectively [9][25] Other Important Information - The company has made significant progress in restructuring efforts, achieving substantial cost reductions while maintaining service to existing customers [8][19] - The introduction of new metrics for revenue-generating programs aims to provide more useful data for analysts and improve revenue modeling [12] Q&A Session Summary Question: Is there an opportunity for data points to evolve into a SaaS cloud computing product? - Management acknowledged the potential for Ginkgo to assist large pharma companies in developing their data architecture and systems, indicating a possible opening in the SaaS space [85][86] Question: Can you provide more details on the ARPA H contract and its revenue recognition? - The ARPA H contract is a $29 million, two-year agreement, with revenue expected to be recognized over that period, significantly derisking the company's guidance for the year [92][94]

Financial Data and Key Metrics Changes - The company achieved a reduction in annual run rate costs of $205 million between Q1 2024 and Q1 2025, surpassing the initial target of $200 million [7] - Cash and cash equivalents on the balance sheet stand at $517 million with no bank debt, positioning the company strongly among peers in the biotechnology sector [8][26] - Total company adjusted EBITDA improved to negative $47 million in Q1 2025 from negative $117 million in Q1 2024, indicating significant progress in profitability [17] - Cash burn decreased to $58 million in Q1 2025 from $104 million in Q1 2024, reflecting the impact of restructuring efforts [18] Business Line Data and Key Metrics Changes - Cell engineering revenue reached $38 million in Q1 2025, a 37% increase year-over-year, with a 10% increase to $31 million when excluding noncash revenue [11] - The biosecurity business generated $10 million in revenue in Q1 2025, with a segment gross margin of 28% [13] - The number of revenue-generating programs in cell engineering increased by 32% year-over-year, totaling 123 programs [12] Market Data and Key Metrics Changes - The company has 28 government projects across cell engineering and biosecurity, with a contracted backlog exceeding $180 million [32] - The company is positioned to benefit from increased government investment in biotechnology, as highlighted by recent speeches from government officials [28][32] Company Strategy and Development Direction - The company aims to reach adjusted EBITDA breakeven by the end of 2026 while maintaining a cash margin of safety [4] - The strategic focus includes expanding the tools business and enhancing the way the platform is sold, moving beyond traditional R&D solutions [6][21] - The company is actively pursuing opportunities in the automation and data points sectors, leveraging its expertise in high-throughput screening and AI [46][84] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the biotechnology sector's resilience despite current market challenges, emphasizing that companies that navigate this period successfully will be in a strong position [9][26] - The management highlighted the importance of government funding for biotechnology and expressed confidence in the continuation of such funding [32][96] Other Important Information - The company has made significant strides in cost reduction while continuing to serve existing customers effectively [7][20] - The introduction of new metrics for revenue-generating programs aims to provide more useful data for analysts and investors [12] Q&A Session Summary Question: Is there an opportunity for data points to evolve into a SaaS cloud computing product? - The management acknowledged the potential for Ginkgo to assist large pharma companies with data architecture and automation technology, but clarified that the approach to market is still being evaluated [87][89] Question: Can you provide more details on the ARPA H contract and its revenue recognition? - The ARPA H contract is valued at $29 million over two years, with revenue expected to be recognized accordingly, which significantly derisks the revenue guidance for the year [94][95] - The management remains hopeful about the continuation of funding for biotechnology projects despite potential cuts in government spending [96]

Revenue and Financial Performance - Ginkgo's revenue from Cell Engineering primarily comes from license and collaboration agreements, with service fees structured as upfront payments, milestone payments, and downstream value share payments [141]. - Cell Engineering revenue increased to $38.2 million for the three months ended March 31, 2025, up from $27.9 million in the same period of 2024, representing a growth of 37.0% [167]. - Total revenue for the three months ended March 31, 2025, was $48.3 million, compared to $37.9 million in 2024, marking an increase of $10.4 million or 27.4% [166]. - Net loss for the three months ended March 31, 2025, was $90.9 million, compared to a net loss of $165.9 million in the same period of 2024, reflecting an improvement of $74.9 million [166]. - Adjusted EBITDA for Q1 2025 was $(47.5) million, compared to $(117.0) million in Q1 2024, indicating a significant reduction in losses [187]. - The company reported a net loss of $91.0 million for Q1 2025, adjusted for a net change in operating assets and liabilities of $11.6 million and non-cash charges of $51.0 million [193]. Research and Development (R&D) Expenses - The company reported a decrease in R&D expenses in Q1 2025 compared to Q1 2024, attributed to the restructuring plan [153]. - Research and development expenses decreased to $70.9 million in Q1 2025 from $136.5 million in Q1 2024, a reduction of 48.0% [174]. - The company plans to continue R&D activities and invest in its Foundry and Codebase [191]. General and Administrative (G&A) Expenses - General and administrative expenses fell to $49.0 million in Q1 2025, down from $70.3 million in Q1 2024, a decrease of 30.1% [175]. - The company anticipates that G&A expenses will either remain consistent or decline in 2025, reflecting the impact of restructuring actions [155]. Restructuring Plan - Ginkgo's restructuring plan, initiated in Q2 2024, is expected to stabilize R&D and G&A expenses, with a focus on prioritizing investments in Foundry, Codebase, and cell engineering tools [153][155]. - Restructuring charges include severance costs and asset impairments due to facility consolidation, with reductions in force expected to be substantially completed in 2025 [157]. - The company incurred restructuring charges of $5.3 million in Q1 2025 related to its restructuring plan, which began in Q2 2024 [176]. - Restructuring charges in Q1 2025 included employee termination costs from a reduction in force initiated in June 2024 [190]. Biosecurity Services - Ginkgo's biosecurity services include two core offerings: Canopy and Horizon, aimed at biomonitoring and bioinformatics support, with partnerships established domestically and internationally [149]. - The cost of Biosecurity revenue includes expenses related to sample collection, laboratory analysis, and customer support, which are recognized as services are performed [151]. Cash Flow and Investments - Cash and cash equivalents, along with marketable securities, totaled $516.9 million as of March 31, 2025, sufficient to fund projected operations for at least the next 12 months [189]. - Net cash used in operating activities for Q1 2025 was $51,521,000, compared to $89,259,000 in Q1 2024, indicating a decrease in cash outflow [192]. - Cash used in investing activities for Q1 2025 was $198,684,000, primarily due to purchases of marketable debt securities of $191.2 million [195]. - The company had cash equivalents and marketable debt securities totaling $483.8 million as of March 31, 2025, which are exposed to interest rate risk [202]. - The net decrease in cash, cash equivalents, and restricted cash for Q1 2025 was $250,338,000, compared to $102,371,000 in Q1 2024 [192]. Changes in Commercial Terms - Changes to commercial terms for new customer contracts were announced in Q2 2024, including revised intellectual property terms and the removal of downstream value share from certain program types [144]. Future Plans and Acquisitions - The company aims to potentially acquire and integrate companies or assets that align with its objectives [198]. Other Financial Metrics - Interest income, net decreased to $6.1 million in Q1 2025 from $11.7 million in Q1 2024, a decline of 52.1% [178]. - Loss on investments increased to $3.7 million in Q1 2025 from $2.5 million in Q1 2024, an increase of 48.0% [179]. - Foreign currency translation gain was $0.8 million for Q1 2025, compared to a loss of $3.0 million in Q1 2024 [203]. New Offerings - In Q3 2024, Ginkgo launched new cell engineering tools offerings, including Datapoints and lab automation solutions, aimed at providing large biological datasets for AI model training [145]. - Ginkgo's Foundry and Codebase enhancements are expected to improve service delivery and efficiency in biological R&D [133][136].

Revenue Performance - Total revenue for Q1 2025 was $48 million, a 27% increase from $38 million in the same period last year, primarily due to a $7 million non-cash revenue release[6]. - Cell Engineering revenue for Q1 2025 was $31 million, up 10% from $28 million in the prior year, driven by growth with biopharma and government customers[6]. - Cell Engineering revenue increased to $38,230,000 in Q1 2025 from $27,889,000 in Q1 2024, representing a growth of 37.5%[19]. - Total revenue for Q1 2025 was $48,318,000, up from $37,944,000 in Q1 2024, marking a 27.5% increase[19]. - Full year 2025 revenue guidance updated to $167-$187 million, with Cell Engineering revenue projected at $117-$137 million[12]. Financial Losses and Improvements - GAAP net loss for Q1 2025 was $(91) million, an improvement from $(166) million in the same period last year[6]. - Net loss narrowed to $90,957,000 in Q1 2025 compared to a net loss of $165,911,000 in Q1 2024, improving by 45.0%[19]. - Basic net loss per share improved to $(1.68) in Q1 2025 from $(3.31) in Q1 2024[19]. - Adjusted EBITDA for Q1 2025 was $(47) million, an improvement from $(117) million in the prior year, attributed to increased revenue and decreased operating expenses[6]. - Adjusted EBITDA for Q1 2025 was $(47,451,000), an improvement from $(117,001,000) in Q1 2024[29]. - The total segment operating loss for Q1 2025 was $(36,773,000), compared to $(103,471,000) in Q1 2024, reflecting a significant reduction in losses[25]. Cost Management - The company aims to achieve $250 million in annualized cost reductions by the end of Q3 2025, with a current run-rate cost reduction of $205 million[6]. - Research and development expenses decreased to $70,923,000 in Q1 2025 from $136,457,000 in Q1 2024, a reduction of 48.0%[19]. - Total operating expenses decreased to $137,286,000 in Q1 2025 from $215,946,000 in Q1 2024, a decline of 36.4%[19]. - The company incurred restructuring charges of $5,273,000 in Q1 2025, primarily related to employee termination costs[26]. Cash and Backlog - Cash, cash equivalents, and marketable securities as of March 31, 2025, totaled $517 million[6]. - Cash and cash equivalents at the end of Q1 2025 were $312,420,000, down from $840,440,000 at the end of Q1 2024[23]. - Ginkgo has a contracted backlog of approximately $180 million across 28 US Government projects in Cell Engineering and Biosecurity[6]. Market Position and Growth - Ginkgo's Datapoints and Automation offerings are gaining traction, including a new deal with Aura Genetics, marking its first diagnostics company customer[6]. - The company is well-positioned in the biotechnology sector, which is emphasized as a critical area of national importance by US government reports[6].

Core Insights - Ginkgo Bioworks has made significant progress in its restructuring efforts, targeting $250 million in cost savings by Q3 2025 [1][3][7] - The company reported a total revenue of $48 million for Q1 2025, a 27% increase from $38 million in the same period last year, primarily due to a $7 million non-cash revenue release [6][22] - Ginkgo's Solutions business is becoming a trusted R&D service provider for the US Government and biopharma industry, while its Tools business is gaining traction in AI-related opportunities [3][7] Financial Performance - Q1 2025 total revenue was $48 million, with $31 million from Cell Engineering (up 10% year-over-year) and $10 million from Biosecurity (flat year-over-year) [6][22] - The company reported a GAAP net loss of $91 million for Q1 2025, an improvement from a net loss of $166 million in the prior year [6][22] - Adjusted EBITDA for Q1 2025 was $(47) million, an improvement from $(117) million in the prior year, driven by increased revenue and reduced operating expenses [6][22] Strategic Positioning - Ginkgo is well-positioned in the biotechnology sector, with 28 US Government projects and a contracted backlog of approximately $180 million [7] - The company is focusing on biosecurity and R&D services, which are deemed critical by national policy reports [7] - Ginkgo's Datapoints and Automation offerings are generating new deals, including a recent agreement with Aura Genetics [7] Guidance and Outlook - Ginkgo has updated its 2025 guidance to reflect total revenue expectations of $160-$180 million, with Cell Engineering revenue projected at $110-$130 million and Biosecurity revenue at least $50 million [5][13] - The company aims to achieve Adjusted EBITDA breakeven by the end of 2026 [7]

Core Insights - Phytolon and Ginkgo Bioworks have successfully completed the second development milestone in their collaboration to produce natural food colors, leading to an equity milestone distribution to Ginkgo [1][6] - The collaboration aims to develop yeast strains for vibrant, functional replacements to synthetic dyes, responding to regulatory pressures and consumer demand for natural alternatives [2][9] Industry Context - There is increasing regulatory pressure in the U.S. to eliminate artificial food dyes due to health concerns, with initiatives from the FDA and state-level bans on synthetic dyes [3] - The shift towards natural color alternatives is being accelerated by consumer demand and government actions, creating a significant market opportunity for companies like Phytolon and Ginkgo [3][9] Company Developments - Ginkgo Bioworks utilized its AI modeling and high-throughput screening to enhance production efficiency by nearly three times, allowing Phytolon to meet coloring standards across various food categories [4] - Phytolon's fermentation-based process is more energy-efficient and cost-effective compared to traditional farming methods for natural colors, reducing production costs and carbon footprint [5] Future Prospects - The achievement of the second milestone positions Ginkgo to gain additional equity in Phytolon, paving the way for further collaborations in the natural food color sector [6][9] - Phytolon is set to introduce "Beetroot Red" and "Prickly Pear Yellow" in U.S. markets pending FDA approval, expanding its product offerings in the food and beverage market [5][11]

Core Insights - Ginkgo Bioworks Holdings, Inc. plans to host a presentation and Q&A session to review its business performance for Q1 2025 on May 6, 2025, at 5:30 p.m. ET [1] - The presentation details and a replay will be available on Ginkgo's investor relations website [2] - Ginkgo Bioworks is recognized as a leading platform for cell programming, offering services across various markets including food, agriculture, pharmaceuticals, and chemicals [3] Company Overview - Ginkgo Bioworks provides flexible, end-to-end services to address challenges in diverse sectors [3] - The company is also focused on biosecurity, developing infrastructure and technologies to manage biological threats [3] - For further information, Ginkgo maintains an active presence on social media and its websites [3]