Ginkgo Bioworks: Not Enough Progress
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Ginkgo Bioworks reported mixed Q3 results, with a $45 million one-time revenue boost masking underlying revenue growth issues. Despite cost-cutting efforts, the company continues to report large losses and burned $325 million in cash in the first nine months of 2023. The balance sheet is weakening, and long-term revenue estimates have been lowered.
November 13, 2024 | 2:00 pm
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Ginkgo Bioworks' Q3 results show a $45 million one-time revenue boost, but underlying revenue growth issues persist. The company reported large losses and burned $325 million in cash in the first nine months of 2023, leading to a weakening balance sheet and lowered long-term revenue estimates.
The one-time revenue boost of $45 million masks underlying issues with revenue growth, which is a concern for investors. The significant cash burn of $325 million in the first nine months of 2023 indicates financial instability. The weakening balance sheet and lowered long-term revenue estimates suggest potential challenges ahead, likely leading to a negative short-term impact on the stock price.
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