Here are 1-3 brief analogies for Ginkgo Bioworks:

• Ginkgo Bioworks is like an **AWS for programming cells**, providing the foundational infrastructure and tools for companies to develop bio-based products.
• It's the **TSMC for engineered biology**, acting as a specialized "foundry" that designs and manufactures biological systems (like microbes) for a wide range of other companies.
• Think of it as the **Microsoft for biology**, building the fundamental operating system and development tools that enable others to program living cells for various applications.

• Cell Programming and Biomanufacturing Development: Ginkgo engineers organisms at scale using its automated foundry to develop novel biological processes and products for clients in industries such as pharmaceuticals, agriculture, and industrials.
• Biosecurity and Pathogen Monitoring: Through its Concentric by Ginkgo offering, the company provides large-scale genomic sequencing and bioinformatics for pathogen detection and environmental monitoring, aiding in public health and biodefense.

Ginkgo Bioworks (symbol: DNA) primarily sells its organism design and biomanufacturing services to other companies, making its business model primarily Business-to-Business (B2B).

Its major customers are typically large corporations across various industries that leverage Ginkgo's platform for research, development, and scaling of bio-based products and processes. While Ginkgo has numerous partners and collaborations, some prominent examples of companies that utilize Ginkgo's services include:

• Novo Nordisk (symbol: NVO) - For the discovery and development of new medicines.
• Merck & Co. (symbol: MRK) - For enzyme discovery and optimization to improve drug manufacturing processes.
• Cargill - A privately held global food corporation, collaborating on developing new fermentation processes for sustainable ingredients.
• Archer-Daniels-Midland Company (ADM) (symbol: ADM) - For the development of sustainable food ingredients.
• Moderna (symbol: MRNA) - For optimizing and accelerating mRNA vaccine manufacturing.

Major suppliers of Ginkgo Bioworks (DNA):

• Twist Bioscience (TWST)

Ginkgo Bioworks (DNA) faces several significant risks to its business, primarily centered around its financial performance, the viability of its business model, and challenges in scaling its commercial operations. The key risks, ordered from most to least significant, are:

1. Lack of Profitability and High Cash Burn: Ginkgo Bioworks has consistently reported substantial financial losses and a high rate of cash consumption. The company recorded significant losses, totaling $859.8 million against revenues of $315 million over a recent past year, with cash reserves dwindling from over $1.1 billion within the same year. Despite efforts to reduce costs and aims for adjusted EBITDA breakeven by mid-2026, losses remain substantial, and there is limited scope for further significant cost reductions without impacting core operations. Analysts remain unconvinced about a near-term turnaround, and the company continues to operate at a loss, a concern for investors. This ongoing financial strain has contributed to a significant decline in its market capitalization since its initial public offering.
2. Unproven Business Model and Uncertain Revenue Growth: The company's business model remains largely unproven, with questions regarding its ability to generate sustainable revenue. Ginkgo has experienced declining or volatile revenue, particularly with the sharp reduction in its biosecurity segment revenue post-pandemic. For example, a major customer deal termination resulted in a significant drop in reported revenue in a recent quarter, and excluding non-cash deferred revenue, actual year-over-year revenue decreased. While the company is transitioning and expanding its cell engineering services, there is still uncertainty about achieving a strong product-market fit that can drive consistent and substantial revenue growth.
3. Challenges in Customer Demand and Scaling Commercial Applications: There are concerns that even with cost controls, Ginkgo's target customers may not find its value proposition sufficiently compelling. The complexity of providing bioengineering services means there isn't a one-size-fits-all solution, and if Ginkgo's streamlining efforts lead to a reduction in specialized or niche solutions, it could cause a decline in revenue. Analysts have also cited skepticism about the company's ability to scale commercial applications of its platform and noted muted demand for bio-manufactured products. Delays in key partnership announcements further highlight challenges in commercialization and market adoption.

Ginkgo Bioworks (DNA) is focusing on several key areas to drive future revenue growth over the next two to three years:

1. Expansion of AI and Lab Automation (Tools Business Model): Ginkgo is strategically investing in and expanding its "frontier autonomous lab" capabilities, integrating artificial intelligence (AI) and robotics to control lab operations. This initiative is central to a broader shift towards a "tools business model," with a long-term goal of 80% of its revenue coming from tools and 20% from services by 2030. By offering advanced platforms like Ginkgo Automation and Ginkgo Datapoints, the company aims to make biology easier to engineer, reduce R&D costs for its customers, and attract new clients with cutting-edge technological offerings.

2. Growth in Cell Engineering Programs with Biopharma and Government Customers: A significant driver is the company's focus on increasing its revenue-generating cell engineering programs, particularly within the biopharmaceutical and government sectors. Ginkgo is offering its research solutions business, leveraging its in-house robotics platform. The company reported a 10% increase in Cell Engineering revenue in the first quarter of 2025, excluding non-cash items, primarily fueled by growth with these customer segments.

3. Expansion and Monetization of the Biosecurity Segment: Ginkgo is actively working to expand its biosecurity business, which involves developing and deploying infrastructure and technologies for predicting, detecting, and responding to various biological threats. Securing substantial government contracts, such as the $22 million award from the Biomedical Advanced Research and Development Authority (BARDA) for monoclonal antibody manufacturing, is expected to directly contribute to revenue growth in this sector.

4. Leveraging Strategic Partnerships and Collaborations: The company continues to foster and extend multi-year strategic partnerships, exemplified by its collaboration with Bayer for agricultural biological products. These ongoing and new collaborations are crucial for driving research and development projects, increasing platform utilization, and generating potential milestone-based revenue.

Share Issuance

• Ginkgo Bioworks' shares outstanding increased by 7.60% in one year, reaching 55.43 million shares as of November 2025.
• The company reported significant stock-based compensation expenses, including $1.9 billion in 2022 and $1.7 billion in 2021, which contributes to share issuance.
• Ginkgo Bioworks completed its initial public offering (IPO) in September 2021 via a SPAC, a major event for capital inflow and share issuance.

Inbound Investments

• From September 2019 through July 2021, prior to its public listing, Ginkgo Bioworks raised substantial capital through Series E preferred stock financing, totaling over $200 million from various affiliated entities.
• The company's largest funding round was a Series E for $290 million in September 2019, led by T. Rowe Price.

Outbound Investments

• Ginkgo Bioworks has made a total of 12 acquisitions between 2021 and 2024, with peak activity in 2022 (6 acquisitions) and 2024 (3 acquisitions).
• Notable acquisitions include Patch, Proof Diagnostics, and Reverie Labs in February 2024, and Zymergen in July 2022.
• Cash spent on acquisitions amounted to approximately $12.04 million in 2021, $74.73 million in 2022, and $5.4 million in 2024.

Capital Expenditures

• Ginkgo Bioworks' capital expenditures were $58 million in 2020, $57 million in 2021, $52 million in 2022, $36 million in 2023, and $62 million in 2024.
• The company anticipates cumulative capital expenditure spending to be in the range of $70 million over the next 12 months (as of December 31, 2023).
• Primary focus of capital expenditures includes investments in R&D activities, the Foundry and Codebase, facilities to support R&D, expansion of offerings like Biosecurity, and upgrading operational systems.