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.
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.
Ginkgo Bioworks Holdings, Inc. (DNA) Q4 2024 Earnings Call Transcript
DNA.N
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