Ginkgo Bioworks Holdings (NYSE: DNA) stock plunged over 15% on Friday after the company reported disappointing Q4 financial results and issued an FY24 revenue forecast below analyst expectations.
Ginkgo Bioworks (DNA) reported a loss of 11 cents per share for the fourth quarter, missing the analyst consensus estimate of 10 cents. The quarterly sales figure reached $34.76 million, diverging by 18.22% from the expected $42.5 million and marking a substantial 64.64% decrease from the previous year’s $98.28 million.
The company attributed the decline in sales to the expected ramp-down in K-12 testing in Ginkgo’s Biosecurity segment, alongside the effects of Cell Engineering downstream value share from equity milestones in 2022, which did not recur in 2023.
Ginkgo’s CEO, Jason Kelly, expressed optimism despite the challenges, stating,
“2023 was a breakout year for Ginkgo.”
Kelly emphasized the company’s commitment to building a durable platform that transforms R&D in biotech. He highlighted significant growth in the biopharma sector, marking it as the company’s largest untapped market. Kelly announced the addition of several new programs with major enterprises, including Boehringer Ingelheim, Merck, Novo Nordisk, and Pfizer. He foresees strong momentum in the pharmaceutical industry in 2024.
Ginkgo Bioworks plans to add 100-120 new Cell Programs to the Cell Engineering platform in 2024. The company expects total revenue between $215 million and $235 million for the year, falling below the $279.546 million consensus estimate.
Ginkgo Bioworks (NYSE: DNA) Stock Movement
DNA stock tumbled 15.13% to close at $1.29 on Friday. The traders had exchanged hands with 60,095,536 (60.09 million) shares compared to the average daily trading volume of 21.96 million.
