Ginkgo Bioworks Holdings, Inc. Q2 FY2025 earnings call

Management Statement and Operational Highlights

• Cost Cutting: Achieved a $250 million annual run rate cost savings target 3 months earlier than planned. Cash burn in Q2 2025 was $38 million, down from $110 million in Q2 2024.
• Life Science Tools Expansion: Focus on automation (reconfigurable automation carts and software for general-purpose lab automation), datapoints (CRO services like perturbation response profiling and ADME with high throughput), and reagents. Launched cell-free protein synthesis kit with early sales and academic interest.

Segment Performance

• Cell Engineering: Revenue in Q2 2025 was $39 million, up 8% from Q2 2024. Supported 120 revenue-generating programs, a 10% year-over-year increase. R&D expenses decreased 63% from $84 million in Q2 2024 to $31 million in Q2 2025; G&A expenses decreased 57% from $33 million in Q2 2024 to $14 million in Q2 2025.
• Biosecurity: Generated $10 million in revenue in Q2 2025 with a segment gross margin of 18%. Revenue guidance for 2025 is at least $40 million for Biosecurity.

Guidance

• Reaffirmed total revenue guidance for 2025: $167 million to $187 million. Cell Engineering revenue expected to be $117 million to $137 million. Biosecurity revenue expected to be at least $40 million.
• Continues to execute core objectives while navigating macroeconomic uncertainty.

Risks

• Underutilized lease space contributing to carrying costs.
• Geopolitical tensions affecting biosecurity contracts.

Question and Answer

• Q: Could you please share whether Ginkgo Automation is expected to become a primary driver of the company's revenue? And I ask if Ginkgo is considering acquiring additional companies in the near future. Could you elaborate on the strategic significance of Ginkgo RNA solutions for the company?
  • A: Automation is expected to be a major driver. No immediate acquisition plans. RNA solutions are services radiating from solution space work, turning expertise into off-the-shelf services.
• Q: Could you provide some more color into your ADME data generation software? And are you planning to develop any of your own models on the generated ADME data as a separate build-out for customers? And how does the meter beat pricing work in terms of licensing over the course of a contract's lifetime? And are you pushing the service to any partners that house their own RAC systems?
  • A: ADME data generation uses efficient data production. Models may be developed as data sets grow. Meter beat pricing is to match CRO prices. Pushing services to partners with RAC systems.
• Q: On the lower biosecurity guide, are you seeing any areas that are particularly exposed to geopolitical pullback or tensions? Are there any end markets that are seeing particular exposure as well?
  • A: Biosecurity revenue guidance reduced due to international contract delays, particularly affected by geopolitical tensions.
• Q: Regarding your target of adjusted EBITDA profitability next year, could you walk us through the key levers you're focused on to bridge the gap from today? Specifically, where do you see the most significant impact coming from? Is it increased foundry automation, AI-driven efficiencies or disciplined SG&A management?
  • A: Key levers include cost management, revenue growth from tools (automation, datapoints, reagents), and sublease management. Automation and AI-driven efficiencies are significant revenue drivers.