Ginkgo Bioworks Holdings, Inc. (DNA): Business Model Canvas [10-2024 Updated]

Ginkgo Bioworks Holdings, Inc. (DNA) is revolutionizing the field of synthetic biology with its innovative cell programming platform, enabling companies across diverse industries to engineer organisms at scale. By leveraging strategic partnerships and a robust foundry of automated biology labs, Ginkgo is positioned at the forefront of biotechnology and biosecurity solutions. Discover how their unique business model drives success and fosters collaboration in this rapidly evolving sector.

Ginkgo Bioworks Holdings, Inc. (DNA) - Business Model: Key Partnerships

Collaborations with multinationals and financial investors

Ginkgo Bioworks has established partnerships with various multinational corporations and financial investors to enhance its operational capabilities and market reach. Notably, the company has received significant investments through Simple Agreements for Future Equity (SAFEs), amounting to approximately $11.0 million in prepayments for Cell Engineering services during the six months ended June 30, 2023.

The partnerships with financial investors have also facilitated Ginkgo's strategic initiatives. For instance, the company reported net proceeds of approximately $1.5 billion from its merger with SRNG in September 2021, which included $760 million from investments by accredited investors.

Partnerships with CDC and XpresCheck for biosecurity services

Ginkgo Bioworks has engaged in strategic partnerships with the Centers for Disease Control and Prevention (CDC) and XpresCheck to enhance its biosecurity services. This collaboration focuses on developing scalable biosecurity infrastructures and delivering global surveillance programs. The revenue from biosecurity services has shown a significant decline, totaling $20.0 million for the three months ended June 30, 2024, down from $35.3 million in the same period in 2023.

Despite the decrease in revenue, the company is transitioning its biosecurity focus from COVID-19 testing to broader pathogen monitoring and analytics services. This shift is expected to maintain and potentially grow its partnerships in the biosecurity sector.

Engagements with early-stage synthetic biology companies

Ginkgo has actively engaged with early-stage synthetic biology companies through its Platform Ventures initiative, which includes partnerships with firms such as Motif FoodWorks, Allonnia, Arcaea, Verb Biotics, BiomEdit, and Ayana. These collaborations have allowed Ginkgo to leverage complementary assets for high-potential applications in synthetic biology.

As of June 30, 2024, Ginkgo's significant deferred revenue from related parties includes amounts such as $45.5 million from Motif FoodWorks and $36.4 million from Allonnia. These figures highlight the ongoing financial commitments and potential for revenue generation through these strategic engagements.

Partnership	Investment Amount	Revenue (3 Months Ended June 30, 2024)	Deferred Revenue
Motif FoodWorks	$45.5 million	$20.0 million	$45.5 million
Allonnia	$36.4 million	$20.0 million	$36.4 million
CDC	N/A	$20.0 million	N/A

Ginkgo Bioworks Holdings, Inc. (DNA) - Business Model: Key Activities

Development and operation of cell programming platform

The core of Ginkgo Bioworks' business model is its advanced cell programming platform designed for efficient biological engineering. As of June 30, 2024, Ginkgo reported $36.2 million in revenue from Cell Engineering for the second quarter, a decrease from $45.3 million in the same quarter of 2023. The company has initiated 10 new programs in Q2 2024, compared to 21 new programs in Q2 2023, while the total number of active programs rose to 140.

R&D services for engineered organisms

Ginkgo's research and development (R&D) services are essential for creating engineered organisms tailored to various industry needs. For the first half of 2024, R&D expenses totaled $270.7 million, with significant allocations towards personnel costs, which reached $76.5 million. The company's R&D efforts are supported by its proprietary Foundry and Codebase, which facilitate rapid prototyping and testing of engineered organisms.

Biosecurity monitoring and analytics services

Ginkgo has shifted its Biosecurity focus towards scalable biosecurity infrastructure, generating $20.0 million in service revenue from biosecurity in Q2 2024, down from $24.5 million in Q2 2023. This decline is attributed to the discontinuation of COVID-19 testing services in schools; however, the company has expanded its offerings in biomonitoring and bioinformatics, which are expected to contribute to future revenue streams.

Key Activity	Q2 2024 Revenue	Q2 2023 Revenue	R&D Expenses (H1 2024)	New Programs (Q2 2024)	Active Programs (Q2 2024)
Cell Programming Platform	$36.2 million	$45.3 million	$270.7 million	10	140
Biosecurity Services	$20.0 million	$24.5 million	N/A	N/A	N/A

Ginkgo Bioworks Holdings, Inc. (DNA) - Business Model: Key Resources

Foundry: Automated Biology Lab Facilities

The Foundry of Ginkgo Bioworks is a critical asset that enables the company to conduct high-throughput organism engineering. This facility is equipped with advanced automated biology labs capable of scaling the production of biological products. As of June 30, 2024, Ginkgo Bioworks operates with a total of approximately $210.6 million in property, plant, and equipment, which includes investments in laboratory infrastructure. The company has also established a 15-year lease for a new office and laboratory space in Boston, Massachusetts, which consists of approximately 260,000 rentable square feet and is expected to cost around $21.1 million annually. This investment reflects Ginkgo's commitment to enhancing its production capabilities and maintaining its position as a leader in the synthetic biology sector.

Codebase: Extensive Biological Data and IP

Ginkgo Bioworks has developed a substantial intellectual property (IP) portfolio, which is central to its business model. As of June 30, 2024, the company reported $90.6 million in net carrying value of intangible assets, which primarily includes developed technology and customer relationships. The codebase comprises extensive biological data and proprietary methodologies that facilitate organism design and engineering. This data not only enhances Ginkgo's operational efficiency but also positions the company to capitalize on various applications across industries, including pharmaceuticals, agriculture, and industrial biotechnology.

Skilled Workforce in Synthetic Biology and Bioinformatics

Ginkgo Bioworks employs a highly skilled workforce specializing in synthetic biology and bioinformatics. The company has invested significantly in talent acquisition, with a reported research and development expense of $270.7 million for the six months ended June 30, 2024. This investment reflects Ginkgo's strategy to attract and retain top talent that can drive innovation in organism engineering. As of the same date, the company had a total workforce that contributes to its mission of advancing synthetic biology, emphasizing the importance of human resources in delivering value to customers.

Key Resources	Description	Financial Value
Foundry	Automated biology lab facilities for high-throughput organism engineering	$210.6 million (Property, plant, and equipment)
Codebase	Extensive biological data and IP portfolio	$90.6 million (Intangible assets)
Skilled Workforce	Experts in synthetic biology and bioinformatics	$270.7 million (Research and development expenses)

Ginkgo Bioworks Holdings, Inc. (DNA) - Business Model: Value Propositions

Simplifying biological engineering for various industries

Ginkgo Bioworks focuses on making biological engineering accessible across multiple sectors, including pharmaceuticals, agriculture, and food. The company utilizes its proprietary Foundry, a high-throughput platform that streamlines the design, build, and test phases of biological engineering processes. In 2024, Ginkgo reported $36.2 million in revenue from its Cell Engineering segment for the second quarter, a decrease from $45.3 million in the same quarter of 2023.

End-to-end cell programming services with high success rates

Ginkgo provides comprehensive cell programming services, which include custom solutions tailored to the specific needs of its clients. This service model has resulted in a growing number of Current Active Programs, which increased to 151 in the first half of 2024, up from 118 in the same period of 2023. The company has also reported a total of 269 cumulative programs as of June 30, 2024.

Metric	Q2 2024	Q2 2023
Cell Engineering Revenue	$36.2 million	$45.3 million
Current Active Programs	151	118
Cumulative Programs	269	198

Robust biosecurity solutions for public health threats

Ginkgo's Biosecurity segment has shifted focus to global surveillance programs and analytics services following the end of COVID-19 testing. In the first half of 2024, total Biosecurity revenue decreased to $30.1 million, compared to $81.9 million in the same period of 2023, primarily due to the cessation of COVID-19 testing services. However, the company is expanding its offerings to include biomonitoring and bioinformatic support services, which are expected to enhance public health readiness and response capabilities.

Biosecurity Revenue	Q2 2024	Q2 2023
Total Revenue	$30.1 million	$81.9 million
Service Revenue	$30.1 million	$59.4 million

Ginkgo Bioworks Holdings, Inc. (DNA) - Business Model: Customer Relationships

Collaborative partnerships with customers for tailored solutions

Ginkgo Bioworks engages in collaborative partnerships with its customers, focusing on creating tailored solutions that meet specific needs. As of June 30, 2024, the company reported 140 active programs with 82 customers, up from 105 active programs and 63 customers in the prior year period. This growth reflects Ginkgo's commitment to developing customized biotechnological solutions through direct collaboration.

Long-term engagement through R&D and licensing agreements

Long-term customer engagement at Ginkgo is primarily facilitated through research and development (R&D) and licensing agreements. The company recognized $29.4 million in revenue from contract liabilities during the six months ended June 30, 2024. This revenue was part of a total contract liabilities balance of $202.5 million as of December 31, 2023. Ginkgo's licensing agreements often involve upfront payments, which significantly contribute to its revenue streams.

Period	Contract Liabilities (in millions)	Revenue Recognized from Contract Liabilities (in millions)
June 30, 2024	$202.5	$29.4
June 30, 2023	$222.6	$44.1

Support and analytics for biosecurity services

Ginkgo Bioworks has transitioned its biosecurity services to focus on global surveillance programs and analytics. For the three months ended June 30, 2024, the company reported $20.0 million in biosecurity revenue, a decrease from $35.3 million in the same period of the previous year. This shift follows the conclusion of COVID-19 testing services, as Ginkgo now emphasizes biomonitoring and bioinformatic support services, enhancing customer relationships through ongoing support and analytics.

Category	Revenue (in millions)	Change from Previous Year (in millions)
Biosecurity Revenue (Q2 2024)	$20.0	-$15.3
Biosecurity Revenue (Q2 2023)	$35.3	N/A

Ginkgo Bioworks Holdings, Inc. (DNA) - Business Model: Channels

Direct sales and service agreements with clients

Ginkgo Bioworks engages in direct sales and service agreements with clients primarily within its Cell Engineering segment. For the six months ended June 30, 2024, Ginkgo generated $64.1 million in revenue from Cell Engineering, down from $79.4 million in the same period for 2023. The decrease is attributed to the timing of completed programs and a shift towards cash consideration in new agreements. Ginkgo's contracts often include upfront payments and milestone payments upon achieving specified technical criteria, aligning compensation with the success of customer programs.

Online platforms for biosecurity monitoring and reporting

In the Biosecurity segment, Ginkgo's online platforms facilitate biosecurity monitoring and reporting services. For the six months ended June 30, 2024, biosecurity revenue totaled $30.1 million, a significant decrease from $81.9 million in the same period for 2023. This decline was primarily due to the cessation of COVID-19 testing services, which comprised a large portion of previous revenues. The company has pivoted to offering biomonitoring and bioinformatic support services, which are delivered through strategic partnerships with organizations such as the CDC and international entities. These services focus on pathogen surveillance and analytics, which are essential for public health authorities worldwide.

Strategic partnerships for product development and commercialization

Ginkgo Bioworks actively pursues strategic partnerships to enhance product development and commercialization efforts. The company collaborates with various organizations, including Motif FoodWorks and Genomatica, to leverage complementary capabilities in synthetic biology. These partnerships allow Ginkgo to expand its service offerings and tap into new markets. As of June 30, 2024, Ginkgo reported 82 customers in its Cell Engineering segment, an increase from 63 in the prior year. The partnerships not only facilitate access to new technologies but also enable shared R&D costs and risk mitigation, providing a comprehensive approach to product commercialization.

Channel Type	Revenue (in millions)	Customer Count	Key Partnerships
Direct Sales	$64.1	82	Various clients in biotech and industrial sectors
Online Platforms	$30.1	N/A	CDC, International health organizations
Strategic Partnerships	N/A	82	Motif FoodWorks, Genomatica

Ginkgo Bioworks Holdings, Inc. (DNA) - Business Model: Customer Segments

Pharmaceutical and Biotech Companies

Ginkgo Bioworks serves a significant number of pharmaceutical and biotech companies, which constitute a crucial customer segment. As of June 30, 2024, approximately 22% of Ginkgo's Cell Engineering revenue was derived from this sector, a decrease from 40% in the same quarter of the previous year. The total revenue from Cell Engineering for Q2 2024 was $36.2 million, down from $45.3 million in Q2 2023. Ginkgo’s offerings include custom cell programming to develop therapeutics and biologics, which are essential for advancing drug discovery and development processes.

Agriculture and Food Technology Sectors

The agriculture and food technology sectors represent another vital customer group for Ginkgo Bioworks. In Q2 2024, 23% of the Cell Engineering revenue was attributed to agriculture, slightly up from 20% in Q2 2023. Ginkgo provides solutions that enhance crop yields and develop sustainable food products. The total revenue from Cell Engineering in the agriculture segment has remained stable, reflecting ongoing demand for biotechnological innovations in food production.

Government and Defense Agencies for Biosecurity

Government and defense agencies are increasingly turning to Ginkgo for biosecurity solutions. As of June 30, 2024, 25% of Ginkgo's revenue in the Cell Engineering segment came from government-related contracts, up from 4% in Q2 2023. The total revenue from biosecurity services was $20.0 million for Q2 2024, a decline from $35.3 million in Q2 2023, largely due to the cessation of COVID-19 testing programs. Ginkgo's biosecurity initiatives focus on developing scalable infrastructure to combat biological threats, leveraging its platform to provide advanced monitoring and analytics capabilities.

Customer Segment	Q2 2024 Revenue Contribution	Q2 2023 Revenue Contribution	Total Revenue (Q2 2024)
Pharmaceutical and Biotech Companies	22%	40%	$36.2 million
Agriculture and Food Technology	23%	20%	$36.2 million
Government and Defense Agencies	25%	4%	$20.0 million

Ginkgo Bioworks Holdings, Inc. (DNA) - Business Model: Cost Structure

Significant R&D expenditures for platform development

Ginkgo Bioworks allocates a substantial portion of its budget to research and development (R&D), reflecting its commitment to enhancing its synthetic biology platform. For the three months ended June 30, 2024, R&D expenses totaled $134.2 million, compared to $144.3 million for the same period in 2023. For the six months ended June 30, 2024, R&D expenses were $270.7 million, down from $306.9 million in 2023 .

These expenses mainly encompass personnel costs, including stock-based compensation, laboratory consumables, and facility-related costs. Specifically, personnel costs accounted for approximately $76.5 million of R&D expenses for the six months ended June 30, 2024 .

Operational costs for Foundry and Codebase maintenance

The operational costs associated with maintaining Ginkgo’s Foundry and Codebase are significant. The company reported operational costs of $11.8 million for the Biosecurity segment and $1.9 million for other revenues during the three months ended June 30, 2024 . For the six months ended June 30, 2024, total operational costs reached $495.1 million, a decrease from $561.2 million in the previous year .

Ginkgo’s operational costs also include expenses related to facility maintenance, utilities, and technology upgrades necessary to support its advanced biomanufacturing capabilities. The company aims to optimize these costs while scaling its operations to meet growing market demands .

General and administrative expenses related to corporate functions

General and administrative (G&A) expenses for Ginkgo Bioworks reflect the costs incurred for corporate functions and overhead. For the three months ended June 30, 2024, G&A expenses were $66.3 million, a significant decrease from $102.3 million in the same period of 2023. Over the six-month period, G&A expenses totaled $136.6 million, down from $213.8 million in the prior year .

This reduction in expenses can be attributed to the deconsolidation of Zymergen and a decrease in stock-based compensation, which fell by $12.1 million year-over-year . The company continues to focus on managing its G&A expenses effectively while supporting its R&D and operational initiatives.

Expense Category	Q2 2024 (in millions)	Q2 2023 (in millions)	YTD 2024 (in millions)	YTD 2023 (in millions)
Research & Development	$134.2	$144.3	$270.7	$306.9
Operational Costs	$11.8	$18.1	$495.1	$561.2
General & Administrative	$66.3	$102.3	$136.6	$213.8

Ginkgo Bioworks Holdings, Inc. (DNA) - Business Model: Revenue Streams

Service fees from cell engineering projects

In the second quarter of 2024, Ginkgo Bioworks generated $36.2 million in revenue from cell engineering, a decrease from $45.3 million in the same period in 2023. For the first half of 2024, the cell engineering revenue totaled $64.1 million, down from $79.4 million in the first half of 2023.

The revenue from cell engineering primarily comprises service fees, with a notable shift toward cash consideration rather than non-cash arrangements. In Q2 2024, $8.2 million of the revenue was derived from non-cash consideration, compared to $16.8 million in Q2 2023. The company reported a total of 10 new programs initiated in Q2 2024, down from 21 new programs in Q2 2023.

Downstream value shares from successful product commercialization

While specific financial figures for downstream value shares are not directly recognized as revenue, they represent potential future cash flows from equity interests received as part of cell engineering contracts. The successful commercialization of products developed through Ginkgo's platform may lead to revenue streams from equity appreciation, although the timing and amounts are unpredictable.

As of June 30, 2024, Ginkgo Bioworks had a total of 151 active programs and 88 customers, indicating a growing portfolio that could enhance downstream revenue opportunities in the future.

Fees for biosecurity services and analytics

Biosecurity revenue for Ginkgo Bioworks was reported at $20.0 million in Q2 2024, down from $35.3 million in Q2 2023. For the first half of 2024, biosecurity revenue totaled $30.1 million, compared to $81.9 million in the first half of 2023. This decline was attributed to the cessation of COVID-19 testing services previously offered in schools, which had a significant impact on revenue.

The biosecurity segment is evolving, focusing on global surveillance programs and analytics services, with the company shifting its resources toward new offerings such as biomonitoring.

Revenue Source	Q2 2024 Revenue (in millions)	Q2 2023 Revenue (in millions)	H1 2024 Revenue (in millions)	H1 2023 Revenue (in millions)
Cell Engineering	$36.2	$45.3	$64.1	$79.4
Biosecurity Services	$20.0	$35.3	$30.1	$81.9
Total Revenue	$56.2	$80.6	$94.2	$161.3