EX-99 2 dna-ex99_1.htm EX-99.1 EX-99

Exhibit 99.1

 

img197909486_0.jpg 

 

Ginkgo Bioworks Reports Fourth Quarter and Full Year 2022 Financial Results

$478 million of total revenue in 2022, representing an increase of 52% over 2021 and toward the high end of guidance

 

59 new Cell Programs added in 2022, representing 90% growth over 2021 and toward the high end of guidance

 

Year end cash balance of over $1.3 billion provides meaningful multi-year runway as we drive towards profitability

 

BOSTON -- March 1, 2023 -- Ginkgo Bioworks Holdings, Inc. (NYSE: DNA, “Ginkgo”), which is building the leading platform for cell programming and biosecurity, today announced its results for the fourth quarter and year ended December 31, 2022. The update, including a webcast slide presentation with additional details on the fourth quarter and supplemental financial information, will be available at investors.ginkgobioworks.com.

 

“We added 59 new programs to the cell programming platform in 2022 as our team delivered toward the high end of our program guidance,” said Jason Kelly, co-founder and CEO of Ginkgo. “This outstanding performance illustrates strong growth in customer demand as our capabilities progress. Each new program is valuable to Ginkgo, expanding and scaling our platform capabilities and driving financial value. Importantly, we continue to see great sales momentum with biopharma customers, who represent both the most sophisticated and largest end market opportunity for us today. Our long-term Biosecurity strategy is also developing nicely as we build a strong base of more recurring biosecurity revenue through our biosurveillance and international partnerships on top of any potential continued COVID-19 testing. I’m very excited about Ginkgo’s ability to drive growth and platform improvements in 2023, and our cash balance of over $1.3 billion provides us significant flexibility in an uncertain macroeconomic environment.”

 

Recent Business Highlights & Strategic Positioning

Added 20 new Cell Programs to the Foundry platform in the fourth quarter of 2022, for a total of 59 new programs in the full year, representing 90% growth over 2021
Generated Foundry revenue of $144 million in 2022, representing growth of 27% over 2021
o
As previously announced, a subset of targeted milestones that were expected to contribute to 2022 Foundry revenue remained unearned in the fourth quarter, though Ginkgo continues to work toward the achievement of these milestones
Concentric by Ginkgo, Ginkgo's biosecurity and public health offering, generated $334 million in Biosecurity revenue in 2022, representing growth of 66% over 2021 and more than doubling the original guidance provided in March 2022
o
Concentric continued to expand the Traveler-Based Genomic Surveillance program with Centers for Disease Control and Prevention (CDC) and XpresCheck, adding three new participating airports (for a total of seven) and completing a recent pilot initiative to detect influenza variants in addition to SARS-CoV-2
o
Concentric continues to establish international partnerships, including in Australia, Botswana, Qatar, Rwanda, Saudi Arabia, the United Kingdom, and Ukraine, as well as multilateral partnerships with Africa CDC and African Risk Capacity
Downstream value – which consists of potential value to Ginkgo from its Cell Engineering customers and includes potential royalties, milestone payments, and equity interests – is an important component of the financial potential of most programs, and Ginkgo added over $2.0 billion in aggregate revenue potential from downstream milestone payments in connection with new Cell Programs in 2022. This is in addition to the financial potential from royalties and equity consideration obtained in connection with those Cell Programs
Ginkgo launched Ginkgo Enzyme Services, which aims to solve challenges for R&D teams developing enzymes, from discovery of novel enzyme activity through optimization of enzyme function and large scale manufacturing
Ginkgo opened Bioworks7, which adds 6,600 square feet of Biosafety Level 2 (BSL-2) lab space at Ginkgo's headquarters in Boston's Seaport District, expanding its mammalian foundry platform to provide significant runway to support new program additions in the pharma & biotech vertical

 

Fourth Quarter 2022 Financial Highlights


Fourth quarter 2022 Total revenue of $98 million, down from $148 million in the comparable prior year period, a decrease of 34%, due to the expected reduction in K-12 COVID-19 testing services
o
Fourth quarter 2022 Foundry revenue of $53 million, up from $34 million in the comparable prior year period, an increase of 56%
o
Fourth quarter 2022 Biosecurity revenue of $45 million, down from $114 million in the comparable prior year period, a decrease of 61%, with fourth quarter 2022 Biosecurity gross profit margin of 33%
Fourth quarter 2022 Loss from operations of $(235) million (inclusive of stock-based compensation expense of $111 million), compared to Loss from operations of $(1,685) million (inclusive of stock-based compensation expense of $1,673 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
Fourth quarter 2022 Adjusted EBITDA of $(80) million, down from $1 million in the comparable prior year period
Cash and cash equivalents balance as of the end of the fourth quarter of over $1.3 billion puts Ginkgo in a strong financial position to pursue its strategic objectives

 

Full Year 2022 Financial Highlights

Full year 2022 Total revenue of $478 million, up from $314 million in the prior year, an increase of 52%
o
Full year 2022 Foundry revenue of $144 million, up from $113 million in the prior year, an increase of 27%
o
Full year 2022 Biosecurity revenue of $334 million, up from $201 million in the prior year, an increase of 66%, with full year 2022 Biosecurity gross profit margin of 39%
Full year 2022 Loss from operations of $(2.2) billion (inclusive of stock-based compensation expense of $1.9 billion), compared to $(1.8) billion (inclusive of stock-based compensation expense of $1.7 billion) in the prior year
Full year 2022 Adjusted EBITDA of $(173) million, down from $(106) million in the prior year

 

Full Year 2023 Guidance

Ginkgo expects to add 100 new Cell Programs to the Foundry platform in 2023
Ginkgo expects Total revenue of at least $275 million in 2023
o
Ginkgo expects Foundry revenue of at least $175 million in 2023. This guidance excludes the impact of any downstream value share revenue, although Ginkgo is still working toward the achievement of downstream value share in 2023
o
While Biosecurity remains an uncertain business, Ginkgo expects Biosecurity revenue in 2023 of at least $100 million, with nearly half of this revenue expected to come from emerging product lines that are more recurring in nature, such as federal and international partnerships supporting pathogen monitoring and biosecurity infrastructure development

 

Timing of Filing Annual Report on Form 10-K

Ginkgo became a large accelerated filer as of December 31, 2022, which resulted in a filing deadline 30 days ahead of our deadline last year. While we believe our financial statements are final, additional time is necessary to finalize materials required to complete the audit of our annual financial statements, including accompanying footnote disclosures.

 

As such, we will be filing a Form 12b-25 for an automatic extension to our Form 10-K filing deadline. We are working diligently to file our Annual Report as soon as practicable and within the automatic extension period of fifteen calendar days from the prescribed due date.

 

Conference Call Details

Ginkgo will host a videoconference today, Wednesday, March 1, 2023, beginning at 4:30 p.m. ET. The presentation will include an overview of the fourth quarter and full year 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: 999 3790 5942

 

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, including the potential for future revenue related to downstream value in the form of potential future milestone payments and royalties and/or equity consideration, 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, (vi) our ability to realize the expected benefits of merger and acquisition transactions, (vii) the outcome of any legal proceedings against Ginkgo, including as a result of recent acquisitions, (viii) our ability to realize the expected benefits from and the success of our Foundry platform programs, (ix) our ability to successfully develop engineered cells, bioprocesses, data packages or other deliverables, and (x) the product development or commercialization success of our customers. 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 December 31,

 

As of December 31,

 

 

2022

 

2021

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

 $ 1,315,792

 

 $ 1,550,004

Accounts receivable, net

 

80,907

 

131,544

Accounts receivable - related parties

 

1,558

 

4,598

Inventory, net

 

4,364

 

3,362

Prepaid expenses and other current assets

 

47,458

 

33,537

Total current assets

 

1,450,079

 

1,723,045

Property and equipment, net

 

314,773

 

145,770

Operating lease right-of-use assets

 

400,762

 

Investments

 

112,188

 

102,037

Equity method investments

 

1,543

 

13,194

Intangible assets, net

 

111,041

 

21,642

Goodwill

 

60,210

 

21,312

Other non-current assets

 

88,725

 

43,990

Total assets

 

 $ 2,539,321

 

 $ 2,070,990

Liabilities and Stockholders’ Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

 $ 10,451

 

 $ 8,189

Deferred revenue

 

47,817

 

33,240

Accrued expenses and other current liabilities

 

114,694

 

93,332

Total current liabilities

 

172,962

 

134,761

Non-current liabilities:

 

 

 

 

Deferred rent, net of current portion

 

 

18,746

Deferred revenue, net of current portion

 

174,767

 

155,991

Operating lease liabilities, non-current

 

413,256

 

Lease financing obligation

 

 

22,283

Warrant liabilities

 

10,868

 

135,838

Other non-current liabilities

 

31,191

 

35,992

Total liabilities

 

803,044

 

503,611

Commitments and contingencies

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock, $0.0001 par value

 

 

Common stock, $0.0001 par value

 

 190

 

 161

Additional paid-in capital

 

 6,136,378

 

 3,804,844

Accumulated deficit

 

 (4,397,659)

 

 (2,297,925)

Accumulated other comprehensive loss

 

 (2,632)

 

 (1,715)

Total Ginkgo Bioworks Holdings, Inc. stockholders’ equity

 

 1,736,277

 

 1,505,365

Non-controlling interest

 

 

 62,014

Total stockholders’ equity

 

 1,736,277

 

 1,567,379

Total liabilities and stockholders’ equity

 

 $ 2,539,321

 

 $ 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 December 31,

 

Year Ended December 31,

 

 

2022

 

2021

 

2022

 

2021


Foundry revenue

 

 $ 53,257

 

 $ 34,156

 

 $ 143,666

 

 $ 112,989

Biosecurity revenue:

 

 

 

 

 

 

 

 

Product

 

12,431

 

8,418

 

35,455

 

23,040

Service

 

32,597

 

105,920

 

298,585

 

177,808

Total revenue

 

98,285

 

148,494

 

477,706

 

313,837

Costs and operating expenses:

 

 

 

 

 

 

 

 

Cost of Biosecurity product revenue

 

7,447

 

4,832

 

20,646

 

20,017

Cost of Biosecurity service revenue

 

22,771

 

61,746

 

183,570

 

109,673

Research and development (1)

 

181,155

 

985,025

 

1,052,643

 

1,149,662

General and administrative (1)

 

121,420

 

781,626

 

1,429,799

 

862,952

Total operating expenses

 

332,793

 

1,833,229

 

2,686,658

 

2,142,304

Loss from operations

 

(234,508)

 

(1,684,735)

 

(2,208,952)

 

(1,828,467)

Other income (expense):

 

 

 

 

 

 

 

 

Interest income

 

11,412

 

496

 

20,262

 

837

Interest expense

 

1,647

 

(551)

 

(106)

 

(2,373)

Gain (loss) on equity method investments

 

10,003

 

(4,663)

 

(43,761)

 

(77,284)

Loss on investments

 

(13,354)

 

(14,552)

 

(53,335)

 

(11,543)

Change in fair value of warrant liabilities

 

28,871

 

77,097

 

124,970

 

58,615

Gain on settlement of partnership agreement

 

 

23,826

 

 

23,826

Gain on deconsolidation of subsidiaries

 

 

 

31,889

 

Other income (expense), net

 

7,005

 

(2,596)

 

7,634

 

(1,733)

Total other income (expense), net

 

45,584

 

79,057

 

87,553

 

(9,655)

Loss before income taxes

 

(188,924)

 

(1,605,678)

 

(2,121,399)

 

(1,838,122)

Income tax benefit

 

(14,770)

 

(683)

 

(15,027)

 

(1,480)

Net loss

 

(174,154)

 

(1,604,995)

 

(2,106,372)

 

(1,836,642)

Net loss attributable to non-controlling interest

 

2,390

 

(4,339)

 

(1,443)

 

(6,595)

Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders

 

 $ (176,544)

 

 $ (1,600,656)

 

 $ (2,104,929)

 

 $ (1,830,047)

Net loss per share attributable to Ginkgo Bioworks Holdings, Inc. common stockholders:

 

 

 

 

 

 

 

 

Basic

 

 $ (0.09)

 

 $ (1.05)

 

 $ (1.25)

 

 $ (1.35)

Diluted

 

 $ (0.10)

 

 $ (1.10)

 

 $ (1.25)

 

 $ (1.39)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

1,854,951,611

 

1,531,138,824

 

1,679,061,465

 

1,359,848,803

Diluted

 

1,856,609,515

 

1,531,551,830

 

1,679,838,849

 

1,360,373,343

Comprehensive loss:

 

 

 

 

 

 

 

 

Net loss

 

 $ (174,154)

 

$ (1,604,995)

 

 $ (2,106,372)

 

 $ (1,836,642)

Other comprehensive loss:

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

5,278

 

(838)

 

(917)

 

(1,715)

Total other comprehensive loss

 

5,278

 

(838)

 

(917)

 

(1,715)

Comprehensive loss

 

 $ (168,876)

 

 $ (1,605,833)

 

 $ (2,107,289)

 

 $ (1,838,357)

 

 

(1)

R&D and G&A expenses included a significant charge for stock-based compensation expense as a result of the modification of the vesting terms of RSUs and all related earnout shares. Total stock-based compensation expense inclusive of employer payroll taxes was allocated as follows (in thousands):

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

(in thousands)

 

2022

 

2021

 

2022

 

2021

Research and development

 

 $ 68,171

 

 $ 930,300

 

 $ 738,821

 

 $ 930,360

General and administrative

 

43,059

 

742,543

 

1,202,099

 

757,247

Total

 

 $ 111,230

 

 $ 1,672,843

 

 $ 1,940,920

 

 $ 1,687,607

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ginkgo Bioworks Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands, unaudited)

 

 

 

 

 

 

 

Year Ended December 31,

 

 

2022

 

2021

Cash flows from operating activities:

 

 

 

 

Net loss

 

 $ (2,106,372)

 

 $ (1,836,642)

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

 

 

 

 

Depreciation and amortization

 

42,552

 

 29,076

Stock-based compensation

 

1,930,641

 

1,606,020

Non-cash customer consideration

 

(34,263)

 

 (24,185)

Loss on equity method investments

 

43,761

 

 77,284

Loss on investments

 

53,335

 

 11,543

Change in fair value of notes receivable

 

(3,757)

 

 3,508

Change in fair value of warrant liabilities

 

(124,970)

 

(58,615)

Gain on deconsolidation of subsidiaries

 

(31,889)

 

Deferred income tax benefit

 

(14,609)

 

Loss on disposal of equipment

 

3,091

 

Non-cash lease expense

 

19,082

 

Amortization of finance lease right-of-use assets

 

1,871

 

Non-cash severance and retention bonus expense associated with an acquisition

 

6,152

 

Other non-cash activity

 

183

 

(270)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

55,024

 

 (114,094)


Prepaid expenses and other current assets

 

(8,687)

 

 (2,981)

Inventory

 

164

 

(626)

Operating lease right-of-use assets

 

13,233

 

Other non-current assets

 

921

 

(539)

Accounts payable

 

(10,844)

 

 (2,247)

Accrued expenses and other current liabilities

 

(39,639)

 

 44,796

Deferred revenue, current and non-current

 

(36,417)

 

 (10,498)

Operating lease liabilities, current and non-current

 

(10,792)

 

Deferred rent, non-current

 

 

 6,032

Other non-current liabilities

 

 31

 

 18,620

Net cash used in operating activities

 

 (252,198)

 

 (253,818)

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment

 

(52,271)

 

(56,521)

Deconsolidation of subsidiaries - cash

 

(55,721)

 

Business acquisitions, net of cash acquired

 

82,367

 

(12,040)

Asset acquisitions, net of cash acquired

 

(7,639)

 

Purchases of notes receivable

 

(40,000)

 

Proceeds from notes receivable

 

10,000

 

304

Purchase of investment in equity securities

 

(3,691)

 

(5,000)

Other

 

(439)

 

Net cash used in investing activities

 

 (67,394)

 

 (73,257)

Cash flows from financing activities:

 

 

 

 

Proceeds from reverse recapitalization, net of redemptions of $867,253 and offering costs of $108,118

 

 

1,509,629

Proceeds from exercise of stock options

 

  240

 

  167

Repurchases of common stock

 

  —

 

  (24,998)

Taxes paid related to net share settlement of equity awards

 

  (981)

 

  (9,463)

Principal payments on finance/capital leases and lease financing obligation

 

  (1,237)

 

  (1,123)

Contributions from non-controlling interests

 

  —

 

  59,933

Proceeds from public offering, net of issuance costs

 

  99,303

 

  —

Proceeds from issuance of Series E convertible preferred stock, net of issuance costs

 

  —

 

  —

Contingent consideration payment

 

  (521)

 

  —

Payment of equity issuance costs

 

  (1,467)

 

  —

Net cash provided by financing activities

 

  95,337

 

  1,534,145

Effect of foreign exchange rates on cash and cash equivalents

 

  908

 

  (19)

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

 

  (223,347)

 

  1,207,051

 

 

 

 

 

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

 

1,315,792

 

1,550,004

Restricted cash, end of period

 

53,789

 

42,924

Cash, cash equivalents and restricted cash, end of period

 

 $ 1,369,581

 

 $ 1,592,928

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ginkgo Bioworks Holdings, Inc.

Selected Non-GAAP Financial Measures

(in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

2021

 

2022

 

2021

Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders

 

 $ (176,544)

 

 $ (1,600,656)

 

 $ (2,104,929)

 

 $ (1,830,047)

Interest income

 

(11,412)

 

  (496)

 

 (20,262)

 

  (837)

Interest expense

 

(1,647)

 

  551

 

106

 

  2,373

Income tax benefit

 

(14,770)

 

  (683)

 

 (15,027)

 

  (1,480)

Depreciation and amortization

 

13,950

 

  8,003

 

 42,552

 

  29,076

EBITDA

 

(190,423)

 

  (1,593,281)

 

(2,097,560)

 

  (1,800,915)

Stock-based compensation (1)

 

111,230

 

  1,672,843

 

1,940,920

 

  1,687,607

(Gain) loss on equity method investments (2)

 

(7,612)

 

  4,080

 

 45,315

 

  74,445

Loss on investments

 

13,354

 

 14,552

 

 53,335

 

  11,543

Change in fair value of warrant liabilities

 

(28,871)

 

  (77,097)

 

 (124,970)

 

  (58,615)

Gain on settlement of partnership agreement

 

 —

 

  (23,826)

 

 —

 

  (23,826)

Gain on deconsolidation of subsidiaries

 

 —

 

  —

 

 (31,889)

 

  —

Merger and acquisition related expenses (3)

 

26,045

 

  —

 

 46,229

 

  —

Other (4)

 

(3,924)

 

  3,291

 

 (4,153)

 

  3,712

Adjusted EBITDA

 

 $ (80,201)

 

 $ 562

 

 $ (172,773)

 

 $ (106,049)

 

 

 

(1)

For the years ended December 31, 2022 and 2021, includes $10.3 million and $5.0 million, respectively, in employer payroll taxes.

 

(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, consulting and accounting fees associated with acquisitions, (ii) post-acquisition employee retention bonuses and severance payments, (iii) the fair value adjustments to contingent consideration liabilities resulting from acquisitions, and (iv) acquired intangible assets expensed to research and development associated with an asset acquisition.

 

(4)

For the year ended December 31, 2022, includes $1.2 million in mark-to-market loss on the Access Bio Convertible Notes and Glycosyn Promissory Note and a $5.3 million fair market value remeasurement gain on the convertible promissory notes from Joyn. For the year ended December 31, 2021, includes $3.7 million in mark-to-market adjustments on the Access Bio Convertible Notes and Glycosyn Promissory Note.

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

Ginkgo Bioworks Holdings, Inc.

Segment Information

(in thousands, unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2022

 

2021

 

2022

 

2021

Revenue:

 

 

 

 

 

 

 

Foundry

 $ 53,257

 

  $ 34,156

 

 $ 143,666

 

 $ 112,989

Biosecurity

 45,028

 

 114,338

 

 334,040

 

 200,848

Total revenue

 98,285

 

 148,494

 

 477,706

 

 313,837

Segment cost of revenue:

 

 

 

 

 

 

 

Biosecurity

 30,218

 

 66,578

 

 204,216

 

 129,690

Segment research and development expense:

 

 

 

 

 

 

 

Foundry

 99,886

 

 46,015

 

 273,356

 

 160,634

Biosecurity

590

 

 1,165

 

 1,937

 

 31,035

Total segment research and development expense

 100,476

 

 47,180

 

 275,293

 

 191,669

Segment general and administrative expense:

 

 

 

 

 

 

 

Foundry

 63,723

 

 29,504

 

 168,586

 

 74,407

Biosecurity

 13,670

 

 9,731

 

 56,353

 

 31,039

Total segment general and administrative expense

 77,393

 

 39,235

 

 224,939

 

 105,446

Segment operating income (loss):

 

 

 

 

 

 

 

Foundry

 (110,352)

 

 (41,363)

 

 (298,276)

 

 (122,052)

Biosecurity

550

 

 36,864

 

 71,534

 

 9,084

Total segment operating loss

 (109,802)

 

 (4,499)

 

 (226,742)

 

 (112,968)

Operating expenses not allocated to segments:

 

 

 

 

 

 

 

Stock-based compensation (1)

 111,230

 

 1,672,843

 

1,940,920

 

 1,687,607

Depreciation and amortization

 14,796

 

 7,686

 

 42,552

 

 28,185

Change in fair value of contingent consideration liability

 (1,320)

 

 (293)

 

 (1,262)

 

 (293)

Loss from operations

 $ (234,508)

 

 $ (1,684,735)

 

 $ (2,208,952)

 

 $ (1,828,467)

 

 

 

 

 

 

 

 

1.
Includes $10.3 million and $5.0 million in employer payroll taxes for the years ended December 31, 2022 and 2021. Employer payroll taxes for the year ended December 31, 2020 were not material.