Ginkgo Bioworks (DNA) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Ginkgo Bioworks ended Q4 2024 with $562 million in cash and no bank debt, significantly reducing cash burn to$ 55 million from $114 million in Q3 2024 [10][32][48] - Total company adjusted EBITDA for Q4 was negative$ 57 million, an improvement from negative $101 million in Q4 2023, with full-year adjusted EBITDA at negative$ 293 million, up from negative $365 million in 2023 [30][31][32] Business Line Data and Key Metrics Changes - Cell Engineering revenue reached$ 35 million in Q4 2024, a 29% increase year-over-year, with full-year revenue at $174 million, down 10% from 2023 when excluding a one-time noncash revenue impact [15][17] - Biosecurity revenue was$ 9 million in Q4 2024, down from $53 million in 2023, reflecting a 51% decline due to the end of K-12 COVID testing contracts [23][24] Market Data and Key Metrics Changes - The company reported a total of 138 active programs across 85 customers in the Cell Engineering platform, a 5% increase year-over-year [17] - The government segment has been a strong source of growth, although uncertainties in this area are factored into revenue guidance [38][40] Company Strategy and Development Direction - Ginkgo aims to reach adjusted EBITDA breakeven by mid-2026 while maintaining a cash margin of safety, focusing on cost reductions and expanding revenue sources [10][43] - The company is expanding into life science tools and services, responding to market trends in biopharma for more data to support AI models [44][65] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging biotech R&D market but expressed optimism about the potential of new tools offerings and the government segment [38][39] - The company is taking a conservative approach to revenue guidance for 2025, estimating Cell Engineering revenue between$ 110 million and $130 million and Biosecurity revenue at least$ 50 million [39][40] Other Important Information - Ginkgo has remediated its SOX material weakness, indicating improved financial reporting processes [43] - The company has achieved a $190 million annualized run rate reduction in spending compared to Q1 2024 [47] Q&A Session Summary Question: What are the ideal customer personas Ginkgo needs to close for new client acquisition? - The ideal customer persona varies by product; for solutions deals, it is typically the head of R&D in large biopharma or the CEO in small biotechs. For data points, it is usually a lead for a drug program, and for automation, it is automation leads responsible for building out new setups [88][90][91]