Ginkgo Bioworks Reports Fourth Quarter and Full Year 2024 Financial Results

Core Insights - Ginkgo Bioworks has reported significant improvements in cash flow and revenue growth in its fourth quarter of 2024, alongside a restructuring process aimed at enhancing operational efficiency [1][6][7] Financial Performance - Fourth quarter 2024 total revenue reached $44 million, an increase from $35 million in the same period of 2023 [6] - Cell Engineering revenue for the fourth quarter was $35 million, reflecting a 29% growth compared to $27 million in the prior year [6] - Biosecurity revenue in the fourth quarter was $9 million, up from $8 million year-over-year, with a gross profit margin of 17% [6] - The company reported a GAAP net loss of $(108) million for the fourth quarter, an improvement from $(212) million in the same quarter of 2023 [6] - Adjusted EBITDA for the fourth quarter was $(57) million, an improvement from $(101) million in the prior year [6] Annual Financial Highlights - For the full year 2024, total revenue was $227 million, down 10% from $251 million in 2023, primarily due to a shift in Biosecurity revenue models [7] - Cell Engineering revenue for the full year was $174 million, up 21% from $144 million in the previous year [7] - Biosecurity revenue for the full year decreased by 51% to $53 million from $108 million in 2023 [7] - The full year GAAP net loss was $(547) million, compared to $(893) million in 2023 [7] - Adjusted EBITDA for the full year improved to $(293) million from $(365) million in the prior year [7] Strategic Developments - Ginkgo has made significant strides in its restructuring efforts, achieving an annualized run-rate cost reduction of $190 million, with a target of $250 million by Q3 2025 [6][7] - The company added 31 new programs and contracts to its Cell Engineering platform in Q4 2024, indicating strong customer engagement [7] - Ginkgo secured a contract with the European Health and Digital Executive Agency for next-generation diagnostics, potentially worth up to €24 million over four years [7] Cash Flow and Liquidity - As of December 31, 2024, Ginkgo had cash and cash equivalents of $562 million, with a cash flow of $(55) million in Q4, an improvement from $(114) million in Q3 [6][7] - The company is on track to reach Adjusted EBITDA breakeven by the end of 2026, supported by ongoing cost-cutting measures and revenue growth initiatives [7]