$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.
"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
-
- Concentric has continued to empower communities with COVID-19
monitoring programs across the United
States while piloting new modalities and offerings,
including passive monitoring of wastewater and air
- Since inception, Concentric has tested more than 9,000,000
samples for SARS-CoV-2, including an average of over 260,000
individual samples per week over the past three months, and has
sequenced over 31,000 viral samples
- Concentric is well-positioned to play a role in the response to
longer-term needs, including endemic COVID-19 and broader
infectious disease preparedness and public health response
- Closed acquisition of FGen AG, a Swiss company specializing in
ultra-high-throughput (uHT) screening for strain development and
optimization
-
- FGen's technology is expected to significantly enhance Ginkgo's
cell screening capabilities and enable Ginkgo to explore wider
expanses of genetic opportunity space
- Announced plan to expand platform capabilities in agricultural
biologics and launch flagship partnership with Bayer
-
- Ginkgo plans to acquire Bayer's West Sacramento agricultural
biologicals site and team and gain access to Bayer's large
agricultural strain collection
- Bayer is expected to be a flagship customer of Ginkgo's
agricultural biologicals offering, upon entering into a significant
new multi-year, multi-product collaboration, building on the work
done by Joyn Bio, the joint venture
between Ginkgo Bioworks and Leaps by Bayer, which is expected to be
integrated into Ginkgo
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
-
- Ginkgo continues to expect Foundry revenue of $165 – $180 million
in 2022
- While Biosecurity remains an uncertain business, based on
strong year-to-date performance Ginkgo now expects Biosecurity
revenue in 2022 of at least $210
million
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.
|
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SOURCE Ginkgo Bioworks