Ginkgo Bioworks (DNA, Financial) has renegotiated its partnership with Twist Bioscience, modifying their previous 2022 agreement. The renewed arrangement, spanning three years and valued at $15 million, allows Ginkgo to continue procuring DNA products from Twist with favorable pricing terms. Unlike the prior agreement, this updated deal does not enforce minimum purchase requirements, although Ginkgo will make annual prepayments.
As part of the revised terms, Twist Bioscience will gain licenses and assignments related to certain long DNA technologies and reagents, serving as a credit against the previous contract from 2022. Meanwhile, Ginkgo maintains the rights to utilize the intellectual property associated with these transferred resources.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Ginkgo Bioworks Holdings Inc (DNA, Financial) is $8.20 with a high estimate of $12.00 and a low estimate of $5.00. The average target implies an upside of 10.66% from the current price of $7.41. More detailed estimate data can be found on the Ginkgo Bioworks Holdings Inc (DNA) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Ginkgo Bioworks Holdings Inc's (DNA, Financial) average brokerage recommendation is currently 3.8, indicating "Underperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ginkgo Bioworks Holdings Inc (DNA, Financial) in one year is $25.97, suggesting a upside of 250.47% from the current price of $7.41. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ginkgo Bioworks Holdings Inc (DNA) Summary page.
DNA Key Business Developments
Release Date: May 06, 2025
- Cell Engineering Revenue: $38 million in Q1 2025, up 37% compared to Q1 2024.
- Noncash Revenue: $7.5 million from deferred revenue release related to BiomEdit agreement termination.
- Adjusted Cell Engineering Revenue: $31 million, up 10% compared to Q1 2024.
- Revenue-Generating Programs: 123 programs, a 32% increase year over year.
- Biosecurity Revenue: $10 million in Q1 2025 with a segment gross margin of 28%.
- Cell Engineering R&D Expense: Decreased 41% from $82 million in Q1 2024 to $49 million in Q1 2025.
- Cell Engineering G&A Expense: Decreased 53% from $38 million in Q1 2024 to $18 million in Q1 2025.
- Biosecurity Operating Expenses: Decreased 33% year over year.
- Adjusted EBITDA: Negative $47 million in Q1 2025, improved from negative $117 million in Q1 2024.
- Cash Burn: $58 million in Q1 2025, down from $104 million in Q1 2024.
- Cash and Cash Equivalents: $517 million with no bank debt.
- Annual Run Rate Cost Reduction: $205 million between Q1 2024 and Q1 2025.
- Full Year Revenue Guidance: Updated to $167 million to $187 million.
- Cell Engineering Revenue Guidance: Updated to $117 million to $137 million.
- Biosecurity Revenue Guidance: At least $50 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ginkgo Bioworks Holdings Inc (DNA, Financial) achieved a $205 million reduction in annual run rate costs, surpassing their target of $200 million.
- The company reported a 37% increase in Cell Engineering revenue for Q1 2025 compared to Q1 2024, driven by growth with biopharma and government customers.
- Ginkgo Bioworks Holdings Inc (DNA) has $517 million in cash and cash equivalents with no bank debt, positioning it strongly among peers.
- The company is expanding its market reach by offering its platform as a tools business, allowing for a broader customer base.
- Ginkgo Bioworks Holdings Inc (DNA) secured a $29 million contract with ARPA-H, enhancing revenue visibility and derisking guidance for the year.
Negative Points
- The company reported a negative adjusted EBITDA of $47 million for Q1 2025, although this was an improvement from the previous year.
- There is ongoing pressure in the biotech capital markets, which could impact future funding and growth opportunities.
- Revenue per program appears to be down, attributed to a mix shift from larger solutions deals to smaller data point deals.
- The tools business, while promising, is still in early stages and contributes less than 10% of cell engineering revenue.
- The company faces challenges in subleasing excess space, which remains a cash operating cost not related to driving revenue.
