Ginkgo Bioworks’s restructuring starting to bear fruit, says TD Cowen

Ginkgo Bioworks (DNA) reported strong Q3 results driven by $45M in released deferred revenues from the terminated contract with Motif, and cost reduction remains a key priority and is starting to bear fruit, TD Cowen tells investors in a research note. Despite lower Cell Engineering revenue, TD Cowen believes the company’s recent pivot towards providing higher-margin data and AI tools offerings could provide significant opportunities for long-term growth and meaningful, early share capture assuming the market continues its momentum towards AI-enabled drug development. The firm expects a 2025 loss per share of ($6.01) and revenue of $215M.