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Ginkgo Bioworks Reports First Quarter 2022 Financial Results

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$168 million of Total revenue in Q1 2022, representing an increase of 282% over Q1 2021

11 new Cell Programs added in Q1 2022, representing 175% growth over Q1 2021

Increasing full year guidance for Total revenue from $325$340 million to $375$390 million, reiterating Foundry revenue guidance and increasing Biosecurity revenue guidance

Recently announced plans to expand platform capabilities in agricultural biologicals through a series of M&A transactions and flagship collaboration with Bayer

$1.5 billion cash balance provides meaningful multi-year runway as we drive towards profitability

BOSTON, May 16, 2022 /PRNewswire/ -- Ginkgo Bioworks Holdings, Inc. (NYSE: DNA, "Ginkgo"), the leading horizontal platform for cell programming, today announced its results for the first quarter ended March 31, 2022. The update, including a webcast slide presentation with additional details on the first quarter and supplemental financial information, will be available at investors.ginkgobioworks.com.

(PRNewsfoto/Ginkgo Bioworks)
(PRNewsfoto/Ginkgo Bioworks)

"We sometimes remark that the pace of change never seems to slow at Ginkgo, and the beginning of 2022 has been no exception," said Jason Kelly, co-founder and CEO of Ginkgo. "We added 11 new programs in our cell programming business in the first quarter of 2022, including in many novel areas of work, and realized record revenues in our biosecurity business. We believe we are well positioned for this market downturn and expect to continue to invest in platform growth, both organically and through M&A, while ensuring we maintain a healthy balance sheet. We are particularly excited about our planned transactions with Bayer, in which they will be establishing a flagship partnership with Ginkgo in the field of agricultural biologicals and transferring their physical platform and team to Ginkgo to extend our platform capabilities in this field. We expect to see strategic moves like this in other industries in the coming years."

Recent Business Highlights & Strategic Positioning

  • Added 11 new Cell Programs to the Foundry platform in Q1 2022, representing 175% growth over the prior year period

  • Concentric, Ginkgo's biosecurity and public health offering, grew rapidly in Q1, reaching $147 million in revenue

  • Closed acquisition of FGen AG, a Swiss company specializing in ultra-high-throughput (uHT) screening for strain development and optimization

  • Announced plan to expand platform capabilities in agricultural biologics and launch flagship partnership with Bayer

First Quarter 2022 Financial Highlights

  • First quarter 2022 Total revenue of $168 million, up from $44 million in the comparable prior year period, an increase of 282%

  • First quarter 2022 Foundry revenue of $21 million, down from $23 million in the comparable prior year period, a decrease of 5%. First quarter 2022 Foundry revenue did not include material downstream value share payments and included a higher mix of early-stage programs that have not yet ramped or achieved significant technical milestones which drive revenue recognition

  • First quarter 2022 Biosecurity revenue of $147 million with gross profit margin of 42%

  • First quarter 2022 Loss from operations of $(675) million (inclusive of stock-based compensation expense of $659 million), compared to Loss from operations of $(57) million in the comparable prior year period. The stock-based compensation expense primarily relates to the continued GAAP accounting for the modification of restricted stock units issued prior to becoming a public company, as disclosed in our Form 10-K filed with the SEC on March 29, 2022

  • First quarter 2022 Adjusted EBITDA of $(2) million, improved from $(51) million in the comparable prior year period

  • Cash and cash equivalents balance as of the end of the first quarter of $1.5 billion puts Ginkgo in a strong financial position to pursue its strategic objectives

Full Year 2022 Guidance

  • Ginkgo continues to expect to add 60 new Cell Programs to the Foundry platform in 2022

  • Ginkgo increased its expectation for Total revenue from $325$340 million to $375$390 million in 2022

Conference Call Details
Ginkgo will host a videoconference today, Monday, May 16, 2022, beginning at 4:30 p.m. ET. The presentation will include an overview of the first quarter financial performance, recent business updates, a discussion on Ginkgo's outlook, as well as a moderated question and answer session.

To ask a question ahead of the presentation, please submit your questions to @Ginkgo on Twitter (hashtag #GinkgoResults) or by sending an e-mail to investors@ginkgobioworks.com.

A webcast link is available on Ginkgo's Investor Relations website and a replay will be made available following the presentation.

Ginkgo Investor Website: https://investors.ginkgobioworks.com/events/

Audio-Only Dial Ins:
+1 646 876 9923 (New York)
+1 301 715 8592 (Washington DC)
+1 312 626 6799 (Chicago)
+1 669 900 6833 (San Jose)
+1 253 215 8782 (Tacoma)
+1 346 248 7799 (Houston)
+1 408 638 0968 (San Jose)

Webinar ID: 928 8373 1262

If you experience technical difficulties with any of these dial-ins or if you need international dial-in numbers, please visit our web site at https://investors.ginkgobioworks.com/events/ for updated dial-in information.

About Ginkgo Bioworks
Ginkgo is building a platform to enable customers to program cells as easily as we can program computers. The company's platform is enabling biotechnology applications across diverse markets, from food and agriculture to industrial chemicals to pharmaceuticals. Ginkgo has also actively supported a number of COVID-19 response efforts, including K-12 pooled testing, vaccine manufacturing optimization, and therapeutics discovery. For more information, visit www.ginkgobioworks.com.

Forward-Looking Statements of Ginkgo Bioworks
This press release, the presentation, and the conference call and webcast contain certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our plans, strategies, current expectations, operations and anticipated results of operations, both business and financial, all of which are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, market trends, or industry results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements generally are identified by the words "believe," "can," "project," "potential," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including but not limited to: (i) the effect of Ginkgo's business combination with Soaring Eagle Acquisition Corp. ("Soaring Eagle") on Ginkgo's business relationships, performance, and business generally, (ii) risks that the business combination disrupts current plans of Ginkgo and potential difficulties in Ginkgo's employee retention, (iii) the outcome of any legal proceedings that may be instituted against Ginkgo related to its business combination with Soaring Eagle, (iv) volatility in the price of Ginkgo's securities now that it is a public company due to a variety of factors, including changes in the competitive and highly regulated industries in which Ginkgo operates and plans to operate, variations in performance across competitors, changes in laws and regulations affecting Ginkgo's business, changes in the combined capital structure and expectations associated with increases in the number of shares available for sale, (v) the ability to implement business plans, forecasts, and other expectations after the completion of the business combination, and ability to identify and realize additional opportunities, (vi) the risk of downturns in demand for products using synthetic biology, (vii) the unpredictability of the duration of the COVID-19 pandemic and the demand for COVID-19 testing and the commercial viability of our COVID-19 testing business, and (viii) changes to the biosecurity industry, including due to advancements in technology, emerging competition and evolution in industry demands, standards and regulations. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of Ginkgo's annual report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") on March 29, 2022, and other documents filed by Ginkgo from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Ginkgo assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Ginkgo does not give any assurance that it will achieve its expectations.

Use of Non-GAAP Financial Measures
Certain of the financial measures included in this release, including Adjusted EBITDA, have not been prepared in accordance with generally accepted accounting principles ("GAAP"), and constitute "non-GAAP financial measures" as defined by the SEC. Ginkgo has included these non-GAAP financial measures because it believes they provide an additional tool for investors to use in evaluating Ginkgo's financial performance and prospects. Due to the nature and/or size of the items being excluded, such items do not reflect future gains, losses, expenses or benefits and are not indicative of our future operating performance. These non-GAAP financial measures are supplemental to, should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. In addition, these non-GAAP financial measures may differ from non-GAAP financial measures with comparable names used by other companies. See the reconciliation below for additional information regarding certain of the non-GAAP financial measures included in this release, including a description of these non-GAAP financial measures and a reconciliation of the historic measures to Ginkgo's most comparable GAAP financial measures.

Ginkgo Bioworks Contacts:

INVESTOR CONTACT:
investors@ginkgobioworks.com

MEDIA CONTACT:
press@ginkgobioworks.com

Ginkgo Bioworks Holdings, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except per share data, unaudited)








As of March 31,


As of December 31,



2022


2021

Assets





Current assets:





Cash and cash equivalents


$ 1,492,971


$ 1,550,004

Accounts receivable, net


167,256


131,544

Accounts receivable - related parties


3,814


4,598

Inventory, net


8,697


3,362

Prepaid expenses and other current assets


33,094


33,537

Total current assets


1,705,832


1,723,045

Property and equipment, net


149,171


145,770

Investments


103,031


102,037

Equity method investments


8,207


13,194

Intangible assets, net


20,829


21,642

Goodwill


21,040


21,312

Other non-current assets


49,616


43,990

Total assets


$ 2,057,726


$ 2,070,990

Liabilities and Stockholders' Equity





Current liabilities:





Accounts payable


$35,257


$8,189

Deferred revenue


35,232


33,240

Accrued expenses and other current liabilities


88,758


93,332

Total current liabilities


159,247


134,761

Non-current liabilities:





Deferred rent, net of current portion


19,262


18,746

Deferred revenue, net of current portion


170,176


155,991

Lease financing obligation


27,309


22,283

Warrant liabilities


50,803


135,838

Other non-current liabilities


16,881


35,992

Total liabilities


443,678


503,611

Commitments and contingencies





Stockholders' equity:





Preferred stock, $0.0001 par value



Common stock, $0.0001 par value


162


161

Additional paid-in capital


4,471,418


3,804,844

Accumulated deficit


(2,888,430)


(2,297,925)

Accumulated other comprehensive loss


(2,355)


(1,715)

Total Ginkgo Bioworks Holdings, Inc. stockholders' equity


1,580,795


1,505,365

Non-controlling interest


33,253


62,014

Total stockholders' equity


1,614,048


1,567,379

Total liabilities and stockholders' equity


$ 2,057,726


$ 2,070,990

Ginkgo Bioworks Holdings, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share data, unaudited)








Three Months Ended March 31,



2022


2021

Foundry revenue


$ 21,488


$ 22,504

Biosecurity revenue:





Product


13,947


5,775

Service


132,970


15,818

Total revenue


168,405


44,097

Costs and operating expenses:





Cost of Biosecurity product revenue


8,095


9,935

Cost of Biosecurity service revenue


77,337


13,765

Research and development


322,720


59,585

General and administrative


434,768


17,927

Total operating expenses


842,920


101,212

Loss from operations


(674,515)


(57,115)

Other income (expense):





Interest expense, net


(397)


(475)

Loss on equity method investments


(20,887)


(28,624)

Gain on investments


450


12,622

Change in fair value of warrant liabilities


85,035


Gain on deconsolidation of subsidiary


15,900


Other income (expense), net


1,637


(1,345)

Total other income (expense), net


81,738


(17,822)

Loss before income taxes


(592,777)


(74,937)

Income tax benefit


(184)


(159)

Net loss


(592,593)


(74,778)

Net loss attributable to non-controlling interest


(2,088)


(1,209)

Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders


$ (590,505)


$ (73,569)

Net loss per share attributable to Ginkgo Bioworks Holdings, Inc. common stockholders, basic and diluted


$ (0.37)


$ (0.06)

Weighted average common shares outstanding, basic and diluted


1,607,499,887


1,290,282,994

Comprehensive loss:





Net loss


$ (592,593)


$ (74,778)

Other comprehensive loss:





Foreign currency translation adjustment


(640)


Total other comprehensive loss


(640)


Comprehensive loss


$ (593,233)


$ (74,778)

Ginkgo Bioworks Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands, unaudited)








Three Months Ended March 31,



2022


2021

Cash flows from operating activities:





Net loss


$ (592,593)


$ (74,778)

Adjustments to reconcile net loss to net cash used in operating activities:





Depreciation and amortization


9,488


5,629

Stock-based compensation


652,821


118

Loss on equity method investments


20,887


28,624

Gain on investments


(450)


(12,622)

Change in fair value of loans receivable


(584)


1,825

Change in fair value of warrant liabilities


(85,035)


Change in fair value of contingent consideration liability


1,513


Gain on deconsolidation of subsidiary


(15,900)


Other non-cash activity


104


Changes in operating assets and liabilities:





Accounts receivable


(34,928)


(9,541)

Prepaid expenses and other current assets


700


1,633

Inventory


(5,335)


(681)

Other non-current assets


2,212


(678)

Accounts payable


26,250


516

Accrued expenses and other current liabilities


9,973


16,807

Deferred revenue, current and non-current


11,444


(5,512)

Deferred rent, non-current


516


688

Other non-current liabilities


(20,981)


(159)

Net cash used in operating activities


(19,898)


(48,131)

Cash flows from investing activities:





Purchases of property and equipment


(3,580)


(21,935)

Prepayment for marketable equity securities


(3,691)


Deconsolidation of subsidiary - cash


(28,772)


Prepayment for business acquisition



(1,210)

Other


58


99

Net cash used in investing activities


(35,985)


(23,046)

Cash flows from financing activities:





Proceeds from exercise of stock options


75


27

Taxes paid related to net share settlement of equity awards


(981)


Principal payments on capital leases and lease financing obligation


(286)


(285)

Payment of deferred offering costs



(175)

Net cash used in financing activities


(1,192)


(433)

Effect of foreign exchange rates on cash and cash equivalents


(8)


Net decrease in cash, cash equivalents and restricted cash


(57,083)


(71,610)






Cash and cash equivalents, beginning of period


1,550,004


380,801

Restricted cash, beginning of period


42,924


5,076

Cash, cash equivalents and restricted cash, beginning of period


1,592,928


385,877






Cash and cash equivalents, end of period


1,492,971


308,128

Restricted cash, end of period


42,874


6,139

Cash, cash equivalents and restricted cash, end of period


$ 1,535,845


$ 314,267

Ginkgo Bioworks Holdings, Inc.


Selected Non-GAAP Financial Measures


(in thousands, unaudited)










Three Months Ended March 31,




2022


2021


Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders


$ (590,505)


$ (73,569)


Interest expense, net


397


475


Income tax benefit


(184)


(159)


Depreciation and amortization


9,488


5,629


EBITDA


(580,804)


(67,624)


Stock-based compensation (1)


659,035


118


Loss on equity method investments (2)


20,264


27,415


Gain on investments (3)


(450)


(12,622)


Change in fair value of warrant liabilities


(85,035)



Gain on deconsolidation of subsidiary


(15,900)



Other (4)


939


1,575


Adjusted EBITDA


$ (1,951)


$ (51,138)


(1)

For the three months ended March 31, 2022, includes $6.2 million in employer payroll taxes.

(2)

For the three months ended March 31, 2022 and 2021, represents losses on equity method investments under the hypothetical liquidation at book value method of $20.9 million and $28.6 million, respectively, net of losses attributable to non-controlling interests.

(3)

Includes gain on the change in fair value of our common stock investments in Synlogic and Cronos and warrants to purchase Synlogic common stock, which are all carried at fair value.

(4)

For the three months ended March 31, 2022, includes a $0.6 million gain on the change in fair value of the Access Bio Convertible Notes offset by $1.5 million loss on the change in fair value of contingent consideration liability related to a business acquisition. For the three months ended March 31, 2021, includes $2.1 million loss on the change in fair value of the Access Bio Convertible Notes offset by a $0.5 million gain related to a settlement payment from Amyris.

Ginkgo Bioworks Holdings, Inc.

Segment Information

(in thousands, unaudited)






Three Months Ended March 31,


2022


2021

Revenue:




Foundry

$ 21,488


$ 22,504

Biosecurity

146,917


21,593

Total revenue

168,405


44,097

Segment cost of revenue:




Biosecurity

85,432


23,700

Segment research and development expense:




Foundry

47,289


30,894

Biosecurity

517


23,403

Total segment research and development expense

47,806


54,297

Segment general and administrative expense:




Foundry

26,693


13,155

Biosecurity

13,235


4,535

Total segment general and administrative expense

39,928


17,690

Segment operating income (loss):




Foundry

(52,494)


(21,545)

Biosecurity

47,733


(30,045)

Total segment operating income (loss)

(4,761)


(51,590)

Operating expenses not allocated to segments:




Stock-based compensation (1)

659,035


118

Depreciation and amortization

9,206


5,407

Change in fair value of contingent consideration liability

1,513


Loss from operations

$ (674,515)


$ (57,115)





(1) For the three months ended March 31, 2022, includes $6.2 million in employer payroll taxes.

Cision
Cision

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SOURCE Ginkgo Bioworks