The Good Brigade/DigitalVision via Getty Images In recent years, you won't find many names that have done worse than cell programming and biosecurity company Ginkgo Bioworks (NYSE:DNA). The company has continued to miss lofty revenue growth targets, leading to its shares losing almost all of their value. Now that management is trying to turn things around and two major negative catalysts are behind us, it's time to see if this company can finally get on track. Previous coverage of the name I've been bearish ...

Have shares of the troubled life sciences business fallen too far? To say the past year has been rough for investors in Ginkgo Bioworks (DNA -13.85%) would be an understatement of the highest order. As of Aug 14, shares of the synthetic-biology stock were down by 86% in 2024. A beaten-down price isn't the only way the stock market has signaled low expectations. Ginkgo stock has been trading at a steeply negative enterprise value. It's a debt-free company that finished June with $730 million in cash and cash ...

Efficiency in core processes is set to increase substantially due to AI. As we've all been told, artificial intelligence (AI) is going to disrupt everything in healthcare, from scheduling a doctor's appointment to developing new medicines. But there's a lot more to AI than large language models (LLMs) like ChatGPT. In fact, there's a good chance that AI's impact on biotech will go far beyond what consumer-facing AI applications might imply. Investors will accrue many of the benefits. Here's my predictions f ...

Financial Data and Key Metrics Changes - The company ended the quarter with $730 million in cash and no bank debt, indicating a strong cash position [3] - Adjusted EBITDA for the quarter was negative $99 million, down from negative $80 million in Q2 2023, driven by a decrease in total revenue [12] - The net loss includes noncash income and expenses, making adjusted EBITDA a more indicative measure of profitability [12] Business Line Data and Key Metrics Changes - Cell engineering revenue was $36 million, down 20% compared to Q2 2023, primarily due to a decrease in revenue from early-stage customers [7] - Biosecurity revenue generated $20 million in Q2 2024, with a gross margin of 41%, significantly up due to the timing of a customer contract [9] Market Data and Key Metrics Changes - The company supported a total of 140 active programs across 82 customers on the cell engineering platform, representing a 33% increase in active programs year-over-year [7] - The sales pipeline for both cell engineering and biosecurity categories remains solid, with new contracts and programs being added [8] Company Strategy and Development Direction - The company aims to reach adjusted EBITDA breakeven while maintaining a cash margin of safety, with plans to cut annualized operating expenses by $200 million by mid-2025 [3][4] - Ginkgo is focusing on opening its platform directly to customer scientists, democratizing access to its technology assets [4] - The company is narrowing its focus on specific offerings in agriculture and biopharma to improve efficiency and profitability [31][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the restructuring efforts and the ability to continue delivering for customers while implementing cost-cutting initiatives [20] - The company reaffirmed its guidance for 2024, expecting cell engineering revenue between $120 million to $140 million and biosecurity revenue of at least $50 million [13] Other Important Information - The company has notified approximately 450 employees, or roughly 35% of the workforce, about the reduction in force, which is expected to save over $85 million in annualized costs [5] - The company is implementing a genomic analysis program for H5N1, leveraging existing practices to monitor and respond to biological threats [45][46] Q&A Session Summary Question: What is the current outlook on some of Ginkgo tech? Any signs of breakthroughs in the next 1 to 2 years? - Management discussed the democratization of access to their platform and the effectiveness of their automation technology, which has shown promising results [49][50] Question: How has the progress been with accelerating the start-up time for new projects using the racks? - Management noted improvements in the scalability and manufacturability of their rack systems, allowing for quicker deployment and integration into existing setups [55][56] Question: What is the perspective on the demand environment for biosecurity and cell engineering? - Management indicated that while biosecurity revenue saw a spike, it should not be viewed as a new run rate, and they are cautious about the cell engineering side due to ongoing restructuring [58][59] Question: How is the organization adapting to the headcount cuts? - Management confirmed that restructuring has led to the creation of smaller business units to enhance accountability and efficiency in delivering customer services [60][61]

Table of Contents ______________________________________________ ______________________________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ______________________________________________ FORM 10-Q ______________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANG ...

Ginkgo provides update on its restructuring process including estimated annualized cost savings of over $85 million from reduction in force BOSTON, Aug. 8, 2024 /PRNewswire/ -- Ginkgo Bioworks Holdings, Inc. (NYSE: DNA, "Ginkgo"), which is building the leading platform for cell programming and biosecurity, today announced its results for the second quarter ended June 30, 2024. The update, including a webcast slide presentation with additional details on the second quarter and supplemental financial informat ...

Ginkgo Bioworks (NYSE:DNA) stock is falling on Friday after the cell programming company announced plans for a reverse split of its shares. Ginkgo Bioworks wants to enact a reverse stock split for DNA shares in the range of one-for-20 to one-for-40. This has it holding a shareholder meeting to get approval from investors for the reverse stock split. That meeting is set to take place on Aug. 14, 2024 at 4:00 pm Eastern Time. If shareholders approve the reverse stock split, it will be up to the board of direc ...

Special meeting to take place virtually on August 14, 2024 at 4:00 pm ET BOSTON, Aug. 2, 2024 /PRNewswire/ -- Ginkgo Bioworks Holdings, Inc. (NYSE: DNA, "Ginkgo"), which is building the leading platform for cell programming and biosecurity, will be holding a special meeting of shareholders virtually on August 14, 2024 at 4:00 pm ET to vote to permit, at the discretion of the Board of Directors, a reverse stock split of the issued and outstanding shares of Class A common stock and Class B common stock in a r ...

Presentation and Q&A session scheduled for post-market on Thursday, August 8, 2024 BOSTON, Aug. 1, 2024 /PRNewswire/ -- Ginkgo Bioworks Holdings, Inc. (NYSE: DNA, "Ginkgo"), which is building the leading platform for cell programming and biosecurity, today announced that it plans to host a presentation and Q&A session reviewing business performance for the second quarter ended June 30, 2024, on Thursday, August 8, 2024, beginning at 5:30 p.m. ET. The presentation details and webcast link will be available o ...

The latest trading session saw Ginkgo Bioworks Holdings, Inc. (DNA) ending at $0.37, denoting a +0.3% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 0.5%. Elsewhere, the Dow saw an upswing of 0.5%, while the tech-heavy Nasdaq depreciated by 1.28%. The investment community will be closely monitoring the performance of Ginkgo Bioworks Holdings, Inc. in its forthcoming earnings report. In that report, analysts expect Ginkgo Bioworks Holdings, Inc. to post ...