DNA Earnings Prediction
The chart below shows how DNA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DNA sees a +4.04% change in stock price 10 days leading up to the earnings, and a -12.02% change 10 days following the report. On the earnings day itself, the stock moves by -1.62%. This data can give you a slight idea of what to expect for the next quarter's release.
DNA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
43.85M
26.16%
-50.76%
Gross Margin
78.06%
-3.61%
-9.78%
Operating Margin
-230.67%
37.63%
287.16%
Net Margin
-245.25%
-59.74%
287.20%
EPS
-2.00
-53.27%
85.19%
No Data Available
DNA Earnings Analysis
Ginkgo Bioworks Holdings Inc Corporation (DNA.N) Earnings Conference Call
Positive
Cell Engineering Revenue Surge: Cell Engineering revenue increased by 29% in Q4 2024 compared to Q4 2023, driven by growth with large biopharma customers and government accounts.
Cash Management Improvement: Ginkgo 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.
Technical Milestones Achievement: The company achieved a record number of technical milestones in Q4 2024, showcasing its ability to deliver innovative solutions for customers.
New Programs and Contracts Growth: Ginkgo added 31 new programs and contracts in Q4 2024, including 5 new large pharma logos and 7 new data points contracts, indicating strong customer engagement.
Operating Expense Reduction: The restructuring efforts resulted in a significant reduction in operating expenses, with R&D expenses down 31% and G&A expenses down 49% in Q4 2024 compared to Q4 2023.
EBITDA Improvement Analysis: Total company adjusted EBITDA improved to negative $57 million in Q4 2024, up from negative $101 million in Q4 2023, reflecting better revenue and reduced operating expenses.
Adjusted EBITDA Breakeven Target: The company is targeting adjusted EBITDA breakeven by the end of 2026, with a conservative revenue guidance range of $160 million to $180 million for 2025, indicating a cautious but optimistic outlook.
Biosecurity Business Expansion: Ginkgo's Biosecurity business is expanding with new projects, including a €24 million initiative funded by the EU to develop point-of-care sequencing technologies, highlighting growth opportunities in this segment.
Negative
Cell Engineering Revenue Decline: Cell Engineering revenue for 2024 was $174 million, down 10% compared to 2023, indicating a decline despite a 29% increase in Q4 2024 revenue due to a shift in customer mix.
Biosecurity Revenue Decline: Biosecurity revenue for 2024 was $53 million, down 51% from $108 million in 2023, primarily due to the end of K-12 COVID testing contracts and reliance on government funding.
Adjusted EBITDA Decline: Total company adjusted EBITDA in Q4 was negative $57 million, although improved from negative $101 million in Q4 2023, indicating ongoing financial challenges.
Milestone Payments Decrease: The potential milestone payments decreased by approximately $700 million from 2023 to 2024, reflecting a reduction in new milestone-bearing programs due to commercial changes.
Cash Burn Reduction: Cash burn in Q4 2024 was $55 million, down from $114 million in Q3 2024, but still indicates significant cash outflow as the company restructures.
Government Funding Uncertainties: The company acknowledged uncertainties in government funding for Biosecurity, which could impact future revenue guidance.
Restructuring Challenges: The restructuring efforts, while yielding some cost reductions, indicate that the company is still navigating a challenging macro environment.
DNA FAQs
How does DNA typically perform around its earnings report dates?
Is Ginkgo Bioworks Holdings Inc (DNA) Q4 2024 Earnings Call Summary positive or negative?
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DNA Earning Call Sentiment
Ginkgo Bioworks Holdings, Inc. (DNA) Q4 2024 Earnings Call Transcript
DNA.N
5.3%Positive
The earnings call highlights several concerns: significant revenue decline in Biosecurity, high cash burn, and decreased milestone payments. The lack of shareholder return plans and reliance on government contracts add to uncertainties. Although there's improvement in EBITDA and reduced expenses, guidance remains conservative, and management's unclear responses in the Q&A contribute to a negative sentiment. Despite some positive growth in Cell Engineering revenue, the overall outlook is overshadowed by risks and uncertainties, leading to a likely negative stock price reaction.
