Today, in the individual stock news, a post from investing.c...

In the individual stock news today, a repost of an article from investing.com about the August financial report conference call, although it is not from today, still provides some updates, as follows:

⭕The main content of Ginkgo Bioworks Holdings Inc (DNA) 2024 Q2 financial report conference call and some easily overlooked issues:

⭕Routine content

Review of the company's financial performance in the second quarter, including cell engineering business, biosafety business, and overall financial condition.
The company's strategic restructuring measures taken to achieve EBITDA balance after adjustment include layoffs, cost reduction, and adjustment of business models.
The company's future growth strategy includes opening the platform to customer scientists, focusing on service products in areas of strength, and expanding biosecurity business, especially in monitoring and responding to H5N1 bird flu.

🎯 Focus and analysis of the Q&A session

🚩 Outlook on technological breakthroughs:
The questioner wanted to know about Ginkgo's future direction for technological breakthroughs, but CEO Jason Kelly's response focused on platform openness and utilization of existing facilities, such as rack automation and laboratory data-as-a-service, without directly addressing the question of technological breakthroughs.
This may reflect the company's current emphasis on commercializing existing technologies rather than pursuing breakthrough innovations.

★ Commercialization brings cash flow first, avoid excessive spending!

🚩 Strategy for matching business capabilities with tools market:
The asker focuses on how the company ensures the alignment of its business capabilities with the shift to the tool market, Jason Kelly's response emphasizes the advantage of the internal tooling model within the company, as well as the experience of the scientist team in serving customers, but does not detail specific matching strategies and measures.
This may mean that the company believes its existing business model and team are sufficient to address the challenges of the tool market,

★★Lack of specific implementation plans and evaluation indicators.

🚩Impact of layoffs on company operation:
The asker is concerned about the potential negative impact of layoffs on employee morale and operational stability, but the company did not provide a positive response during the Q&A session.
This may be the company deliberately avoiding sensitive issues, but it may also reflect the company's approach

There is a lack of sufficient evaluation and response measures for the stability of operations and team morale after layoffs.

Economic benefits of Laboratory Data as a Service (LDaaS):
The questioner wanted to understand the value and economic benefits of the LDaaS project compared to existing cell engineering projects. CFO Mark Dmytruk's response indicated that the LDaaS project is smaller in scale, shorter in duration, but customers may purchase multiple datasets, leading to potential revenue matching that of larger cell engineering projects.
This suggests that the company's profit model for LDaaS business is still in the exploratory stage.

Its long-term value and sustainability are still subject to observation.

Progress on the H5N1 Avian Influenza Monitoring Project:
The questioner was concerned about the specific timeline for the H5N1 Avian Influenza Genome Analysis project proposed by the company. Jason Kelly's response indicated that the company is entering into a pilot testing agreement with dairy farms, and further progress depends on the results of data generation and funding support from government or private sectors.

This indicates that the project is still in the early stages, and its success depends on multiple factors, including data quality, funding sources, and cooperation with partners.

🚩Other issues worth paying attention to.
❌Although the company has reiterated its revenue expectations for 2024, it has not provided more information on the specific path and measures to achieve this goal, as well as how to deal with the profitability pressure caused by the increase in research and development expenses.
❌❌In the Q&A session, the company emphasized more on the advantages of its technical platform and automation capabilities, but lacked deeper elaboration on specific business models, market competition strategies, and how to respond to market changes.
❌❌❌Transition period, turning point, if unsuccessful, it will be a desperate situation.