Ginkgo Bioworks Reports Second Quarter 2022 Financial Results
08/15/2022 - 04:01 PM
$145 million 231% growth over Q2 2021
13 new Cell Programs added in Q2 2022, representing 86% growth over Q2 2021
Pending acquisitions of Zymergen and Bayer's West Sacramento agricultural biologicals capabilities expected to enable new growth opportunities in the coming years
Approximately $1.4 billion
BOSTON , Aug. 15, 2022 /PRNewswire/ -- Ginkgo Bioworks Holdings, Inc. (NYSE: DNA) ("Ginkgo"), the leading horizontal platform for cell programming, today announced its results for the second quarter ended June 30, 2022 . The update, including a webcast slide presentation with additional details on the second quarter and supplemental financial information, will be available at investors.ginkgobioworks.com
"We delivered a strong quarter across both our cell programming and biosecurity businesses," said Jason Kelly , co-founder and CEO of Ginkgo. "We added 13 new Cell Programs and more than doubled our second-quarter Foundry revenue year-over-year. We executed well on our biosecurity business through the remainder of the school year and are seeing traction across this business with longer-term, diversified biosecurity opportunities, including being awarded a new contract from the CDC to continue our pathogen monitoring work in airports. We are excited about our recently announced transactions with Zymergen and Bayer, which we expect to significantly improve our platform and drive future value. Our strong cash balance of approximately $1.4 billion
Recent Business Highlights & Strategic Positioning
Generated Foundry revenue of $44 million 105% growth over the comparable prior year period, including a previously announced equity milestone from the successful completion of the third productivity target in our collaboration with Cronos Group Inc. Added 13 new Cell Programs to the Foundry platform in Q2 2022, representing 86% growth over the comparable prior year period Concentric by Ginkgo, Ginkgo's biosecurity and public health offering, had another strong quarter, producing $100 million Concentric was recently awarded the contract to continue CDC's traveler-based SARS-CoV-2 genomic surveillance program, which we expect will expand inbound pathogen monitoring at ports of entry, building on our partnership over the last year with XpresCheck On July 24, 2022 , Ginkgo entered into a definitive agreement to acquire Zymergen in an all-stock transaction The merger is expected to improve the capacity, capabilities, and efficiency of Ginkgo's platform for its diverse customer base and enable new growth opportunities across many end markets The transaction is expected to close by Q1 2023, subject to approval by Zymergen's stockholders, receipt of regulatory approvals, and satisfaction or waiver of other closing conditions Also on July 24, 2022 , Ginkgo entered into a definitive agreement to acquire Bayer's West Sacramento agricultural biologicals R&D facility As part of the transaction, Bayer will be entering into a multi-year partnership with Ginkgo, representing Ginkgo's largest ever cell programming contract (in terms of R&D service fees) and with the potential to earn downstream value in the form of royalties on net sales from products developed under the partnership The transaction is expected to close in Q4 2022, subject to regulatory approvals and customary closing conditions Added Dr. Kathy Hopinkah Hannan to the Ginkgo Board of Directors Dr. Hannan brings over thirty years of experience as a senior C-Suite executive, corporate advisor, independent board director and strategist leading significant operations and high priority initiatives Second Quarter 2022 Financial Highlights
Second quarter 2022 Total revenue of $145 million $44 million 231% Second quarter 2022 Foundry revenue of $44 million $22 million 105% . Second quarter 2022 Foundry revenue included downstream value share revenue related to the equity milestone achievement by Cronos Group Inc. Second quarter 2022 Biosecurity revenue of $100 million 36% Second quarter 2022 Loss from operations of $(647) million $607 million $(60) million March 29, 2022 Second quarter 2022 Adjusted EBITDA of $(23) million $(38) million Cash and cash equivalents balance as of the end of the second quarter of approximately $1.4 billion Full Year 2022 Guidance
Ginkgo continues to expect to add 60 new Cell Programs to the Foundry platform in 2022 Ginkgo further revised its expectation for Total revenue from $375 – $390 million $425 –$440 million in 2022 Ginkgo continues to expect Foundry revenue of $165 – $180 million While Biosecurity remains an uncertain business, based on strong year-to-date performance Ginkgo now expects Biosecurity revenue in 2022 of at least $260 million Conference Call Details
Ginkgo will host a videoconference today, Monday, August 15, 2022 , beginning at 4:30 p.m. ET . The presentation will include an overview of the second 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 investors@ginkgobioworks.com
A webcast link is available on Ginkgo's Investor Relations website
Ginkgo Investor Website: https://investors.ginkgobioworks.com/events/
Audio-Only Dial Ins: New York )Washington DC )Chicago )San Jose )Houston )San Jose )
Webinar ID: 924 3540 6075
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/
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, (viii) changes to the biosecurity industry, including due to advancements in technology, emerging competition and evolution in industry demands, standards and regulations, and (ix) our ability to close and realize the expected benefits of pending merger and acquisition transactions. 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 most recent quarterly report on Form 10-Q filed with the U.S. Securities and Exchange Commission (the "SEC"), 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 June 30,
As of December 31,
2022
2021
Assets
Current assets:
Cash and cash equivalents
$1,377,152
$1,550,004
Accounts receivable, net
171,624
131,544
Accounts receivable - related parties
3,253
4,598
Inventory, net
8,102
3,362
Prepaid expenses and other current assets
38,717
33,537
Total current assets
1,598,848
1,723,045
Property and equipment, net
176,221
145,770
Investments
89,068
102,037
Equity method investments
6,914
13,194
Intangible assets, net
39,180
21,642
Goodwill
30,973
21,312
Other non-current assets
53,015
43,990
Total assets
$1,994,219
$2,070,990
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$19,459
$8,189
Deferred revenue
45,504
33,240
Accrued expenses and other current liabilities
70,059
93,332
Total current liabilities
135,022
134,761
Non-current liabilities:
Deferred rent, net of current portion
20,214
18,746
Deferred revenue, net of current portion
156,981
155,991
Lease financing obligation
51,545
22,283
Warrant liabilities
27,294
135,838
Other non-current liabilities
36,107
35,992
Total liabilities
427,163
503,611
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.0001 par value
—
—
Common stock, $0.0001 par value
164
161
Additional paid-in capital
5,098,018
3,804,844
Accumulated deficit
(3,557,255)
(2,297,925)
Accumulated other comprehensive loss
(5,496)
(1,715)
Total Ginkgo Bioworks Holdings, Inc. stockholders' equity
1,535,431
1,505,365
Non-controlling interest
31,625
62,014
Total stockholders' equity
1,567,056
1,567,379
Total liabilities and stockholders' equity
$1,994,219
$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 June 30,
Six Months Ended June 30,
2022
2021
2022
2021
Foundry revenue
$44,242
$21,592
$65,730
$44,096
Biosecurity revenue:
Product
3,887
355
17,834
6,130
Service
96,489
21,689
229,459
37,507
Total revenue
144,618
43,636
313,023
87,733
Costs and operating expenses:
Cost of Biosecurity product revenue
2,444
1,820
10,539
11,755
Cost of Biosecurity service revenue
61,467
15,290
138,804
29,055
Research and development (1)
289,188
52,031
611,908
111,616
General and administrative (1)
438,427
34,440
873,195
52,367
Total operating expenses
791,526
103,581
1,634,446
204,793
Loss from operations
(646,908)
(59,945)
(1,321,423)
(117,060)
Other (expense) income:
Interest income (expense), net
1,674
(478)
1,277
(953)
Loss on equity method investments
(10,166)
(4,346)
(31,053)
(32,970)
(Loss) gain on investments
(38,673)
2,755
(38,223)
15,377
Change in fair value of warrant liabilities
23,509
—
108,544
—
Gain on deconsolidation of subsidiary
—
—
15,900
—
Other (expense) income, net
(51)
7,119
1,586
5,774
Total other (expense) income, net
(23,707)
5,050
58,031
(12,772)
Loss before income taxes
(670,615)
(54,895)
(1,263,392)
(129,832)
Income tax benefit
(45)
(431)
(229)
(590)
Net loss
(670,570)
(54,464)
(1,263,163)
(129,242)
Net loss attributable to non-controlling interest
(1,745)
(523)
(3,833)
(1,732)
Net loss attributable to Ginkgo Bioworks Holdings,
$(668,825)
$(53,941)
$(1,259,330)
$(127,510)
Net loss per share attributable to Ginkgo Bioworks
$(0.41)
$(0.04)
$(0.78)
$(0.10)
Weighted average common shares outstanding, basic
1,620,703,542
1,292,538,294
1,614,138,189
1,291,416,874
Comprehensive loss:
Net loss
$(670,570)
$(54,464)
$(1,263,163)
$(129,242)
Other comprehensive loss:
Foreign currency translation adjustment
(3,141)
—
(3,781)
—
Total other comprehensive loss
(3,141)
—
(3,781)
—
Comprehensive loss
$(673,711)
$(54,464)
$(1,266,944)
$(129,242)
(1) In the first half of 2022, R&D and G&A expenses included a significant charge to stock-based compensation expense as a result of the $0.8 million and $7.0 million in employer payroll taxes for the three and six months ended June 30, 2022, respectively,
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2022
2021
2022
2021
Research and development
$217,291
$22
$483,631
$40
General and administrative
389,979
14,497
782,674
14,597
Total
$607,270
$14,519
$1,266,305
$14,637
Ginkgo Bioworks Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
Six Months Ended June 30,
2022
2021
Cash flows from operating activities:
Net loss
$ (1,263,163)
$ (129,242)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
19,096
12,794
Stock-based compensation
1,259,336
14,637
Loss on equity method investments
31,053
32,970
Loss (gain) on investments
38,223
(15,377)
Non-cash customer consideration
(18,139)
—
Change in fair value of loans receivable
292
(4,384)
Change in fair value of warrant liabilities
(108,544)
—
Gain on deconsolidation of subsidiary
(15,900)
—
In-process research and development
1,162
—
Other non-cash activity
510
—
Changes in operating assets and liabilities:
Accounts receivable
(38,598)
(6,479)
Prepaid expenses and other current assets
4,973
4,854
Inventory
(4,740)
20
Other non-current assets
(419)
(55)
Accounts payable
10,650
(7,321)
Accrued expenses and other current liabilities
(12,758)
19,139
Deferred revenue, current and non-current
(19,708)
(6,067)
Deferred rent, non-current
1,468
914
Other non-current liabilities
(3,989)
555
Net cash used in operating activities
(119,195)
(83,042)
Cash flows from investing activities:
Cash acquired in acquisition
1,440
—
Purchase of convertible note
(6,500)
—
Purchases of property and equipment
(13,153)
(45,969)
Purchase of marketable equity securities
(3,691)
—
Deconsolidation of subsidiary - cash
(28,772)
—
Prepayment for business acquisition
—
(1,210)
Other
28
202
Net cash used in investing activities
(50,648)
(46,977)
Cash flows from financing activities:
Proceeds from exercise of stock options
76
39
Taxes paid related to net share settlement of equity awards
(981)
—
Principal payments on capital leases and lease financing obligation
(720)
(448)
Contingent consideration payment
(521)
—
Payment of deferred offering costs
—
(2,147)
Net cash used in financing activities
(2,146)
(2,556)
Effect of foreign exchange rates on cash and cash equivalents
(104)
—
Net decrease in cash, cash equivalents and restricted cash
(172,093)
(132,575)
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
1,377,152
235,893
Restricted cash, end of period
43,683
17,409
Cash, cash equivalents and restricted cash, end of period
$ 1,420,835
$253,302
Ginkgo Bioworks Holdings, Inc.
Selected Non-GAAP Financial Measures
(in thousands, unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2022
2021
2022
2021
Net loss attributable to Ginkgo Bioworks Holdings, Inc.
$ (668,825)
$ (53,941)
$(1,259,330)
$ (127,510)
Interest (income) expense, net
(1,674)
478
(1,277)
953
Income tax benefit
(45)
(431)
(229)
(590)
Depreciation and amortization
9,608
7,165
19,096
12,794
EBITDA
(660,936)
(46,729)
(1,241,740)
(114,353)
Stock-based compensation (1)
607,270
14,519
1,266,305
14,637
Loss on equity method investments (2)
9,952
3,823
30,216
31,238
Loss (gain) on investments
38,673
(2,755)
38,223
(15,377)
Change in fair value of warrant liabilities
(23,509)
—
(108,544)
—
Gain on deconsolidation of subsidiary
—
—
(15,900)
—
Merger and acquisition related expenses (3)
2,716
—
6,562
—
In-process research and development (4)
1,605
—
1,605
—
Other (5)
906
(6,406)
332
(4,831)
Adjusted EBITDA
$ (23,323)
$ (37,548)
$ (22,941)
$ (88,686)
(1) For the three and six months ended June 30, 2022, includes employer payroll taxes of $0.8 million and $7.0 million , respectively.
(2) Represents losses on equity method investments under the hypothetical liquidation at book value method, net of losses attributable to non-
(3) Represents transaction and integration costs directly related to mergers and acquisitions including (i) due diligence, legal and other
(4) Represents acquired intangible assets expensed to research and development associated with an asset acquisition.
(5) For the three and six months ended June 30, 2022, includes change in fair value of Access Bio Convertible Notes. For the three and six
Ginkgo Bioworks Holdings, Inc.
Segment Information
(in thousands, unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2022
2021
2022
2021
Revenue:
Foundry
$ 44,242
$ 21,592
$ 65,730
$ 44,096
Biosecurity
100,376
22,044
247,293
43,637
Total revenue
144,618
43,636
313,023
87,733
Segment cost of revenue:
Biosecurity
63,911
17,110
149,343
40,810
Segment research and development expense:
Foundry
62,779
40,828
110,068
71,722
Biosecurity
443
4,374
960
27,777
Total segment research and development expense
63,222
45,202
111,028
99,499
Segment general and administrative expense:
Foundry
36,601
14,722
63,294
27,877
Biosecurity
12,409
5,084
25,644
9,619
Total segment general and administrative expense
49,010
19,806
88,938
37,496
Segment operating income (loss):
Foundry
(55,138)
(33,958)
(107,632)
(55,503)
Biosecurity
23,613
(4,524)
71,346
(34,569)
Total segment operating income (loss)
(31,525)
(38,482)
(36,286)
(90,072)
Operating expenses not allocated to segments:
Stock-based compensation (1)
607,270
14,519
1,266,305
14,637
Depreciation and amortization
9,326
6,944
18,532
12,351
Change in fair value of contingent consideration
(1,213)
—
300
—
Loss from operations
$ (646,908)
$ (59,945)
$(1,321,423)
$ (117,060)
(1) Includes $0.8 million and $7.0 million in employer payroll taxes for the three and six months ended June 30, 2022, respectively.
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SOURCE Ginkgo Bioworks
