Pond Technologies

Ginkgo Bioworks Reports Third Quarter 2022 Financial Results

14 November 2022
  • 15 new Cell Programs added and $66 million of Total revenue in Q3 2022
  • Closed four acquisitions in October, including Zymergen and Bayer's West Sacramento agricultural biologicals capabilities, enabling commencement of integration and pursuit of new growth opportunities
  • End of quarter cash balance of over $1.3 billion provides continued financial flexibility

BOSTON, Nov. 14, 2022 /PRNewswire/ -- Ginkgo Bioworks Holdings, Inc. (NYSE: DNA, "Ginkgo"), which is building the leading platform for cell programming and biosecurity, today announced its results for the third quarter ended September 30, 2022. The update, including a webcast slide presentation with additional details on the third quarter and supplemental financial information, will be available at investors.ginkgobioworks.com.

"I'm very excited about the strategic progress we have made at Ginkgo, highlighted by the four acquisitions we completed in October, and I'm thrilled to welcome our new team members. I believe these additions will meaningfully strengthen our platform and services," said Jason Kelly, co-founder and CEO of Ginkgo. "Our team worked extremely hard to close both the Zymergen and Bayer transactions efficiently, with the Zymergen transaction in particular closing well in advance of our initial expectations. The faster Zymergen closing timeline provides us with significant strategic benefits, including a higher acquired cash balance and the ability to immediately focus Zymergen's outstanding team and assets on Ginkgo's core service offering. Successful M&A execution illustrates our ability to take advantage of opportunities catalyzed by the current market environment, while our strong standalone cash balance of over $1.3 billion at the end of the third quarter continues to afford us substantial flexibility."

Recent Business Highlights & Strategic Positioning

  • Generated Foundry revenue of $25 million in Q3 2022
  • Added 15 new Cell Programs to the Foundry platform in Q3 2022, representing 50% growth over the comparable prior year period
    • Continued traction in pharma and biotech, including a collaboration with Merck to engineer enzymes for use as biocatalysts in Merck's active pharmaceutical ingredient (API) manufacturing efforts
  • Concentric by Ginkgo, Ginkgo's biosecurity and public health offering, executed well in Q3 2022, generating $42 million in Biosecurity revenue
    • Expanded internationally, including Memoranda of Understanding with the Rwanda Development Board and the Ministry of Investment of Saudi Arabia
    • Added enhanced analytic modules, including epidemiological tracking, modeling, and forecasting capabilities, and announced computational tools to detect engineered biology in collaboration with the Intelligence Advanced Research Projects Activity (IARPA)
    • Continuing to pilot new modalities and offerings, including passive monitoring of wastewater and air
  • Completed acquisitions of Zymergen and Bayer's West Sacramento Biologics Research & Development site in October
    • The swift closing of the Zymergen transaction delivers more cash at close and enables Ginkgo to commence integration activities and pursue new growth opportunities faster than originally anticipated
  • Also in October, acquired Altar, which has developed a robust adaptive laboratory evolution (ALE) platform, and Circularis, a proprietary circular RNA and promoter screening platform

Third Quarter 2022 Financial Highlights

  • Third quarter 2022 Total revenue of $66 million, down from $78 million in the comparable prior year period, a decrease of 14%
    • Third quarter 2022 Foundry revenue of $25 million, down from $35 million in the comparable prior year period, a decrease of 29%. Third quarter 2022 Foundry revenue did not include any large milestone payments, while the third quarter 2021 Foundry revenue included downstream value share revenue related to an equity milestone achievement by Cronos Group Inc.
    • Third quarter 2022 Biosecurity revenue of $42 million, down from $43 million in the comparable prior year period, a decrease of 3%. Third quarter 2022 Biosecurity gross profit margin of 41%
  • Third quarter 2022 Loss from operations of $(653) million (inclusive of stock-based compensation expense of $563 million), compared to Loss from operations of $(27) 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 annual report on Form 10-K filed with the SEC on March 29, 2022
  • Third quarter 2022 Adjusted EBITDA of $(70) million, down from $(18) million in the comparable prior year period
  • Cash and cash equivalents balance as of the end of the third quarter of over $1.3 billion puts Ginkgo in a strong financial position to pursue its strategic objectives

Full Year 2022 Guidance

  • Ginkgo expects to add 55-60 new Cell Programs to the Foundry platform in 2022
  • Ginkgo further revised its expectation for Total revenue from $425$440 million to $460$480 million in 2022
  • Ginkgo revised its expectation for Foundry revenue to $150$170 million in 2022, which reflects our current assumptions and uncertainty regarding the timing of certain discrete milestone payments
  • While Biosecurity remains an uncertain business, based on strong year-to-date performance Ginkgo now expects Biosecurity revenue in 2022 of at least $310 million

Conference Call Details

Ginkgo will host a videoconference today, Monday, November 14, 2022, beginning at 4:30 p.m. ET. The presentation will include an overview of the third 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 This email address is being protected from spambots. You need JavaScript enabled to view it..

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: 936 0665 8370

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 Bioworks is the leading horizontal platform for cell programming, providing flexible, end-to-end services that solve challenges for organizations across diverse markets, from food and agriculture to pharmaceuticals to industrial and specialty chemicals. Ginkgo's biosecurity and public health unit, Concentric by Ginkgo, is building global infrastructure for biosecurity to empower governments, communities, and public health leaders to prevent, detect and respond to a wide variety of biological threats. For more information, visit ginkgobioworks.com and concentricbyginkgo.com, read our blog, or follow us on social media channels such as Twitter (@Ginkgo and @ConcentricByGBW), Instagram (@GinkgoBioworks and @ConcentricByGinkgo), or LinkedIn.

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) volatility in the price of Ginkgo's securities 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, and changes in laws and regulations affecting Ginkgo's business, (ii) the ability to implement business plans, forecasts, and other expectations, and to identify and realize additional business opportunities, (iii) the risk of downturns in demand for products using synthetic biology, (iv) 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, (v) changes to the biosecurity industry, including due to advancements in technology, emerging competition and evolution in industry demands, standards and regulations, and (vi) our ability to realize the expected benefits of 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:
This email address is being protected from spambots. You need JavaScript enabled to view it. 

MEDIA CONTACT:
This email address is being protected from spambots. You need JavaScript enabled to view it. 

Ginkgo Bioworks Holdings, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except per share data, unaudited)

     
  

As of September 30,

 

As of December 31,

  

2022

 

2021

Assets

    

Current assets:

    

Cash and cash equivalents

 

$1,302,603

 

$1,550,004

Accounts receivable, net

 

113,661

 

131,544

Accounts receivable - related parties

 

2,095

 

4,598

Inventory, net

 

5,860

 

3,362

Prepaid expenses and other current assets

 

37,784

 

33,537

Total current assets

 

1,462,003

 

1,723,045

Property and equipment, net

 

187,577

 

145,770

Investments

 

96,310

 

102,037

Equity method investments

 

4,135

 

13,194

Intangible assets, net

 

47,938

 

21,642

Goodwill

 

28,804

 

21,312

Other non-current assets

 

43,928

 

43,990

Total assets

 

$1,870,695

 

$2,070,990

Liabilities and Stockholders' Equity

    

Current liabilities:

    

Accounts payable

 

$ 11,323

 

$ 8,189

Deferred revenue

 

40,505

 

33,240

Accrued expenses and other current liabilities

 

72,990

 

93,332

Total current liabilities

 

124,818

 

134,761

Non-current liabilities:

    

Deferred rent, net of current portion

 

21,001

 

18,746

Deferred revenue, net of current portion

 

150,637

 

155,991

Lease financing obligation

 

59,842

 

22,283

Warrant liabilities

 

39,739

 

135,838

Other non-current liabilities

 

34,922

 

35,992

Total liabilities

 

430,959

 

503,611

Commitments and contingencies

    

Stockholders' equity:

    

Preferred stock, $0.0001 par value

 

 

Common stock, $0.0001 par value

 

165

 

161

Additional paid-in capital

 

5,668,791

 

3,804,844

Accumulated deficit

 

(4,226,310)

 

(2,297,925)

Accumulated other comprehensive loss

 

(7,910)

 

(1,715)

Total Ginkgo Bioworks Holdings, Inc. stockholders' equity

 

1,434,736

 

1,505,365

Non-controlling interest

 

5,000

 

62,014

Total stockholders' equity

 

1,439,736

 

1,567,379

Total liabilities and stockholders' equity

 

$1,870,695

 

$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 September 30,

 

Nine Months Ended September 30,

  

2022

 

2021

 

2022

 

2021

Foundry revenue

 

$24,679

 

$34,737

 

$90,409

 

$78,833

Biosecurity revenue:

        

Product

 

5,190

 

8,492

 

23,024

 

14,622

Service

 

36,529

 

34,381

 

265,988

 

71,888

Total revenue

 

66,398

 

77,610

 

379,421

 

165,343

Costs and operating expenses:

        

Cost of Biosecurity product revenue

 

2,660

 

3,430

 

13,199

 

15,185

Cost of Biosecurity service revenue

 

21,995

 

18,872

 

160,799

 

47,927

Research and development (1)

 

259,580

 

53,021

 

871,488

 

164,637

General and administrative (1)

 

435,184

 

28,959

 

1,308,379

 

81,326

Total operating expenses

 

719,419

 

104,282

 

2,353,865

 

309,075

Loss from operations

 

(653,021)

 

(26,672)

 

(1,974,444)

 

(143,732)

Other (expense) income:

        

Interest income (expense), net

 

5,820

 

(528)

 

7,097

 

(1,481)

Loss on equity method investments

 

(22,711)

 

(39,651)

 

(53,764)

 

(72,621)

(Loss) gain on investments

 

(1,758)

 

(12,368)

 

(39,981)

 

3,009

Change in fair value of warrant liabilities

 

(12,445)

 

(18,482)

 

96,099

 

(18,482)

Gain on deconsolidation of subsidiaries

 

15,989

 

 

31,889

 

Other (expense) income, net

 

(957)

 

(4,911)

 

629

 

863

Total other (expense) income, net

 

(16,062)

 

(75,940)

 

41,969

 

(88,712)

Loss before income taxes

 

(669,083)

 

(102,612)

 

(1,932,475)

 

(232,444)

Income tax benefit

 

(28)

 

(207)

 

(257)

 

(797)

Net loss

 

(669,055)

 

(102,405)

 

(1,932,218)

 

(231,647)

Net loss attributable to non-controlling interest

 

 

(524)

 

(3,833)

 

(2,256)

Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders

 

$(669,055)

 

$(101,881)

 

$ (1,928,385)

 

$(229,391)

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

 

$(0.41)

 

$(0.08)

 

$(1.19)

 

$(0.18)

Weighted average common shares outstanding, basic and diluted

 

1,630,910,628

 

1,323,574,063

 

1,619,790,335

 

1,302,253,729

Comprehensive loss:

        

Net loss

 

$(669,055)

 

$(102,405)

 

$ (1,932,218)

 

$(231,647)

Other comprehensive loss:

        

Foreign currency translation adjustment

 

(2,414)

 

(877)

 

(6,195)

 

(877)

Total other comprehensive loss

 

(2,414)

 

(877)

 

(6,195)

 

(877)

Comprehensive loss

 

$(671,469)

 

$(103,282)

 

$ (1,938,413)

 

$(232,524)

 

1)     In the three and nine months ended September 30, 2022, R&D and G&A expenses included a significant charge to stock-based compensation expense as a result of the modification of
        the vesting terms of restricted stock units and all related earnout shares. Total stock-based compensation expense, inclusive of $0.2 million and $7.2 million in employer payroll taxes for
        the three and nine months ended September 30, 2022, respectively, was as follows:

 
 
  

Three Months Ended September 30,

 

Nine Months Ended September 30,

(in thousands)

 

2022

 

2021

 

2022

 

2021

Research and development

 

$187,019

 

$20

 

$ 670,650

 

$60

General and administrative

 

376,366

 

107

 

1,159,040

 

14,704

Total

 

$563,385

 

$ 127

 

$ 1,829,690

 

$14,764

Ginkgo Bioworks Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands, unaudited)

     
  

Nine Months Ended September 30,

  

2022

 

2021

Cash flows from operating activities:

    

Net loss

 

$ (1,932,218)

 

$(231,647)

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

    

Depreciation and amortization

 

28,602

 

21,073

Stock-based compensation

 

1,822,472

 

14,764

Loss on equity method investments

 

53,764

 

72,621

Loss (gain) on investments

 

39,981

 

(3,009)

Non-cash customer consideration

 

(18,139)

 

(12,562)

Change in fair value of notes receivable

 

(269)

 

1,196

Change in fair value of warrant liabilities

 

(96,099)

 

18,482

Gain on deconsolidation of subsidiaries

 

(31,889)

 

In-process research and development

 

1,162

 

Loss on disposal of equipment

 

3,091

 

Other non-cash activity

 

303

 

Changes in operating assets and liabilities:

    

Accounts receivable

 

20,521

 

(28,670)

Prepaid expenses and other current assets

 

8,347

 

5,565

Inventory

 

(2,498)

 

(738)

Other non-current assets

 

144

 

(35)

Accounts payable

 

3,893

 

(2,771)

Accrued expenses and other current liabilities

 

(15,637)

 

29,599

Deferred revenue, current and non-current

 

(35,365)

 

(5,538)

Deferred rent, non-current

 

2,255

 

4,320

Other non-current liabilities

 

82

 

29,073

Net cash used in operating activities

 

(147,497)

 

(88,277)

Cash flows from investing activities:

    

Purchase of convertible note

 

(10,000)

 

Purchases of property and equipment

 

(26,626)

 

(51,407)

Purchase of investment in equity securities

 

(3,691)

 

(5,000)

Deconsolidation of subsidiaries - cash

 

(55,721)

 

Business and asset acquisitions, net of cash acquired

 

(657)

 

(21,382)

Other

 

(439)

 

304

Net cash used in investing activities

 

(97,134)

 

(77,485)

Cash flows from financing activities:

    

Proceeds from reverse recapitalization, net of redemptions of $867,253 and offering costs of $106,838

 

 

1,510,909

Proceeds from exercise of stock options

 

120

 

41

Taxes paid related to net share settlement of equity awards

 

(981)

 

Repurchase of Founder shares

 

 

(24,998)

Principal payments on capital leases and lease financing obligation

 

(1,082)

 

(764)

Non-controlling interest contributions

 

 

60,000

Contingent consideration payment

 

(521)

 

Payment of equity offering issuance costs

 

(132)

 

Net cash (used in) provided by financing activities

 

(2,596)

 

1,545,188

Effect of foreign exchange rates on cash and cash equivalents

 

(191)

 

(8)

Net (decrease) increase in cash, cash equivalents and restricted cash

 

(247,418)

 

1,379,418

     

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

 

1,302,603

 

1,739,056

Restricted cash, end of period

 

42,907

 

26,239

Cash, cash equivalents and restricted cash, end of period

 

$1,345,510

 

$1,765,295

     

Ginkgo Bioworks Holdings, Inc.

Selected Non-GAAP Financial Measures

(in thousands, unaudited)

         
  

Three Months Ended September 30,

 

Nine Months Ended September 30,

  

2022

 

2021

 

2022

 

2021

Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders

 

$ (669,055)

 

$ (101,881)

 

$(1,928,385)

 

$ (229,391)

Interest (income) expense, net

 

(5,820)

 

528

 

(7,097)

 

1,481

Income tax benefit

 

(28)

 

(207)

 

(257)

 

(797)

Depreciation and amortization

 

9,506

 

8,279

 

28,602

 

21,073

EBITDA

 

(665,397)

 

(93,281)

 

(1,907,137)

 

(207,634)

Stock-based compensation (1)

 

563,385

 

127

 

1,829,690

 

14,764

Loss on equity method investments (2)

 

22,711

 

39,127

 

52,927

 

70,365

Loss (gain) on investments

 

1,758

 

12,368

 

39,981

 

(3,009)

Change in fair value of warrant liabilities

 

12,445

 

18,482

 

(96,099)

 

18,482

Gain on deconsolidation of subsidiaries

 

(15,989)

 

 

(31,889)

 

Merger and acquisition related expenses (3)

 

12,017

 

 

18,579

 

In-process research and development (4)

 

 

 

1,605

 

Other (5)

 

(561)

 

5,192

 

(229)

 

421

Adjusted EBITDA

 

$ (69,631)

 

$ (17,985)

 

$ (92,572)

 

$ (106,611)

   

(1)     For the three and nine months ended September 30, 2022, includes employer payroll taxes of $0.2 million and $7.2 million, respectively.

(2)     Represents losses on equity method investments under the hypothetical liquidation at book value method, net of losses attributable to
          non-controlling interests.

(3)     Represents transaction and integration costs directly related to mergers and acquisitions including (i) due diligence, legal and other
         professional fees associated with acquisitions and (ii) the fair value adjustments to contingent consideration liabilities resulting from
         acquisitions.

(4)     Represents acquired intangible assets expensed to research and development associated with an asset acquisition.

(5)     For the three and nine months ended September 30, 2022, includes changes in fair value of the Access Bio Convertible Notes and the
         Glycosyn Promissory Note. For the three and nine months ended September 30, 2021, includes changes in fair value of the Access Bio
         Convertible Notes and the Glycosyn Promissory Note as well as gain related to a settlement payment.

Ginkgo Bioworks Holdings, Inc.

Segment Information

(in thousands, unaudited)

        
 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2022

 

2021

 

2022

 

2021

Revenue:

       

Foundry

$24,679

 

$34,737

 

$90,409

 

$78,833

Biosecurity

41,719

 

42,873

 

289,012

 

86,510

Total revenue

66,398

 

77,610

 

379,421

 

165,343

Segment cost of revenue:

       

Biosecurity

24,655

 

22,302

 

173,998

 

63,112

Segment research and development expense:

       

Foundry

63,402

 

42,897

 

173,470

 

114,619

Biosecurity

387

 

2,093

 

1,347

 

29,870

Total segment research and development expense

63,789

 

44,990

 

174,817

 

144,489

Segment general and administrative expense:

       

Foundry

41,569

 

17,026

 

104,863

 

44,903

Biosecurity

17,039

 

11,689

 

42,683

 

21,308

Total segment general and administrative expense

58,608

 

28,715

 

147,546

 

66,211

Segment operating income (loss):

       

Foundry

(80,292)

 

(25,186)

 

(187,924)

 

(80,689)

Biosecurity

(362)

 

6,789

 

70,984

 

(27,780)

Total segment operating income (loss)

(80,654)

 

(18,397)

 

(116,940)

 

(108,469)

Operating expenses not allocated to segments:

       

Stock-based compensation (1)

563,385

 

127

 

1,829,690

 

14,764

Depreciation and amortization

9,224

 

8,148

 

27,756

 

20,499

Change in fair value of contingent consideration liability

(242)

 

 

58

 

Loss from operations

$(653,021)

 

$(26,672)

 

$ (1,974,444)

 

$(143,732)

        

(1)      Includes $0.2 million and $7.2 million in employer payroll taxes for the three and nine months ended September 30, 2022, respectively.

Sign Up To Get Daily Green Stock News In Your Inbox

Please review our Disclaimer and Privacy Policy before subscribing.

STOCK QUOTE

FEATURED GREEN STOCK

GreenPower Motor

GreenPower Motor designs, builds and distributes a full suite of high-floor and low-floor all-electric medium and heavy-duty vehicles, including transit buses, school buses, shuttles, cargo van, and a cab and chassis...

CLICK TO LEARN MORE

FEATURED GREEN STOCK

Pond Technologies

Pond Technologies has developed a proprietary system that can profitably transform CO2 into valuable products. The company's carbon business focuses on absorbing greenhouse gas emissions, transforming these into...

CLICK TO LEARN MORE

COPYRIGHT ©2022 GREEN STOCK NEWS