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Ginkgo Bioworks Stock Falls on Disappointing Q1 Sales: “This Trend Must Change” – Ginkgo Bioworks Holdings (NYSE:DNA)

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20-year-old professional trader reveals his “MoneyLine”

Forget your indicators and use the “MoneyLine”. One simple line tells you when to buy and sell without guessing. It's a line on a chart that helped Nic Chahine win on 83% of his options purchases. That's how he does it.


Ginkgo Bioworks Holdings, Inc. (NASDAQ:DNA) announced its first quarter financial results on Thursday after the market closed. Here is a look at the key data of the report.

The details:

Ginkgo Bioworks reported quarterly revenue of $38 million, missing analysts' consensus estimate of $46.044 million by 17.47% and representing a year-over-year decline of 52.91%. The company said the decline in sales was primarily due to the expected decline in K-12 testing in Ginkgo's biosecurity segment.

According to Ginkgo, Cell Engineering's revenue for the quarter was $28 million, down 18%, driven by a decline in revenue from early-stage customers, partially offset by growth from large/enterprise customers. Biosecurity revenue was $10 million with a gross profit margin of 8%, which the company said reflected the early stages of transitioning to a more recurring business model.

“Ginkgo is an increasingly important part of the biotech ecosystem and we are taking decisive action to keep it that way,” he said Jason Kelly, CEO of Ginkgo. “We have shown that we can offer a large number of different programs on a common platform, but I am disappointed with our sales in the first quarter. This trend needs to change, and we are simplifying both what we sell to customers and how we do the work that drives sales at Ginkgo.”

The company announced a plan to reach break-even in adjusted EBITDA on an annualized basis by the end of 2026. The plan calls for a reduction in the physical footprint and associated costs by up to 60% and a reduction in workforce, resulting in a reduction in labor costs of at least 25%.

Related news: What's going on with Peloton stock?

DNA price promotion: According to Benzinga Pro, shares of Ginkgo Bioworks were down 10% to 83 cents in after-hours trading at the time of publication on Thursday.

Image: Gerd Altmann from Pixabay


20-year-old professional trader reveals his “MoneyLine”

Forget your indicators and use the “MoneyLine”. One simple line tells you when to buy and sell without guessing. It's a line on a chart that helped Nic Chahine win on 83% of his options purchases. That's how he does it.


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