Ginkgo Bioworks Holdings, Inc. Q1 FY2025 earnings call

• Restructuring efforts: Achieved $205 million annual run rate cost reduction, exceeding the $200 million target. Cash burn in Q1 2025 was $58 million, down from $104 million in Q1 2024. • Government relationships: Has 28 government projects across Cell Engineering and Biosecurity with ~$180 million+ backlog. Won ARPA-H REACT and WHEAT programs. • Tools businesses: Datapoints launched GDP A1 data set. Automation has RAC systems for integrated lab automation, with interest from customers for expandable and quick-deploy solutions.

Cell Engineering: Revenue was $38 million in Q1 2025, up 37% year-over-year. Excluding $7.5 million noncash revenue from a deferred revenue release, it was $31 million, up 10%. Had 123 revenue-generating programs, a 32% increase year-over-year. Biosecurity: Generated $10 million in revenue in Q1 2025 with a segment gross margin of 28%.

• Total revenue updated to $167 million to $187 million, Cell Engineering revenues to $117 million to $137 million, and Biosecurity remains at least $50 million. • Expect further cash burn reduction significantly by Q4 2025, though some lumpiness due to working capital timing.

• Macro environment uncertainty affecting R&D spending. • Potential hesitancy in outsourcing R&D services impacting the solutions business.

Q: Does Jason think there's a possible opportunity for Datapoints to evolve into a SaaS cloud computing product tool to compete with traditional companies in the space like Veeva Systems?

A: Yes, Ginkgo is doing consultative work to help pharma with data and software architecture for automated labs.

Q: On ARPA-H news, details on economics and government contracts?

A: $29M contract recognized over two years, government contracts still under review but biotech remains a priority. Ginkgo is the prime on ARPA-H contract, recognizing full revenue.

Q: On revenue-generating program metric, how to track economics per program?

A: Mix of bigger solutions deals and data point deals. New metric excludes de minimis revenue programs. Flavor includes big solutions, data points, and small automation deals.

Q: View on longer-term opportunity within diagnostics for RACs?

A: RACs are expandable and a great fit for diagnostics, with interest from customers in the space.