By Shares of Ginkgo Bioworks took a hit on Friday as the company reported lower-than-expected fourth-quarter revenue and a less optimistic 2024 outlook.
Stock Performance
The stock experienced a 10% decline to $1.37 during midday trading, despite still showing an 8% increase over the last month.
Revenue Details
Ginkgo Bioworks, headquartered in Boston, disclosed that their revenue for the fourth quarter dropped by 65% to $34.8 million, falling short of analysts’ expectations of $42.5 million.
For the year 2024, Ginkgo anticipates revenue between $215 million and $235 million, a decrease from the previous year’s $251.5 million. Analysts surveyed by FactSet originally predicted $279.5 million in revenue for 2024.
Factors Affecting Revenue
The company attributed the decline in fourth-quarter revenue to the planned reduction in K-12 testing within the biosecurity segment. Additionally, Ginkgo reported no downstream value share revenue in its cell engineering segment.
Financial Performance
In the quarter ending December 31, Ginkgo posted a loss of $211.7 million, equivalent to 11 cents per share, in contrast to the prior year’s loss of $175.5 million, or 10 cents per share.
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