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]

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]