Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) Q2 2024 Earnings Conference Call August 8, 2024 5:30 PM ET

Company Participants

Megan LeDuc - Manager, IR
Jason Kelly - Founder, CEO & Director
Mark Dmytruk - CFO

Conference Call Participants

Tejas Savant - Morgan Stanley
Matt Sykes - Goldman Sachs
Steve Mah - TD Cowen
Mike Ryskin - Bank of America
Mark Massaro - BTIG
Matt Larew - William Blair

Megan LeDuc

Good evening. I'm Megan LeDuc, Manager of Investor Relations at Ginkgo Bioworks. I'm joined by Jason Kelly, our Co-Founder and CEO; and Mark Dmytruk, our CFO. Thanks as always for joining us. We're looking forward to updating you on our progress.

As a reminder, during the presentation today, we will be making forward-looking statements, which involve risks and uncertainties. Please refer to our filings with the SEC to learn more about these risks and uncertainties.

Today, in addition to updating you on the quarter, we are going to provide updates on our path towards adjusted EBITDA breakeven, including a deeper dive on how we're executing against our cost reduction targets as well as what we're doing to drive revenue. As usual, we'll end with a Q&A session, and I'll take questions from analysts, investors and the public. You can submit those questions to us in advance via X at #GinkgoResults results or e-mail investors at ginkgobioworks.com.

All right. Over to you, Jason.

Jason Kelly

Thanks, Megan, and thanks, everyone, for joining us. We always start with our mission of making biology easier to engineer. And in order to do so, particularly in this quarter and the quarters to come, we're focused on three objectives. First, reaching adjusted EBITDA breakeven while maintaining a cash margin of safety. We ended this quarter with $730 million in cash and no bank debt. We also made aggressive moves in headcount reduction and other reductions that will be reflected in reducing our cash OpEx spending in the coming quarters.

Second, while we're cutting these costs, we need to keep serving our current customers well. I'm happy with our revenue number this quarter, which are indicative of continuing to serve our current customers. This is a big lift for the team alongside a riff and a change in how we are organized, but it's an early indication that these changes were effective in improving the efficacy of our delivery.

Finally, we want to grow our revenue in solutions and expand into selling tools. So I'm going to cover this more in the strategic session, but we're excited to open our platform directly to our customer scientists. Previously, it's been something we just had available to ourselves here at Ginkgo and we're getting that out there in a more democratized way. Our technology assets in bioengineering are world leading. So I'm excited to find more ways to sell them and drive growth.