On August 15, 2022 Ginkgo Bioworks Holdings, Inc. (NYSE: DNA) ("Ginkgo"), the leading horizontal platform for cell programming, reported its results for the second quarter ended June 30, 2022 (Press release, Ginkgo Bioworks, AUG 15, 2022, View Source [SID1234618389]). 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.
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"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 affords us the ability to play offense when compelling opportunities arise, while we remain focused on our cash runway and can consider multiple levers as we drive towards profitability."
Recent Business Highlights & Strategic Positioning
Generated Foundry revenue of $44 million in Q2 2022, representing 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 in revenue in Q2 2022
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, up from $44 million in the comparable prior year period, an increase of 231%
Second quarter 2022 Foundry revenue of $44 million, up from $22 million in the comparable prior year period, an increase of 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 with a gross profit margin of 36%
Second quarter 2022 Loss from operations of $(647) million (inclusive of stock-based compensation expense of $607 million), compared to Loss from operations of $(60) 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
Second quarter 2022 Adjusted EBITDA of $(23) million, improved from $(38) million in the comparable prior year period
Cash and cash equivalents balance as of the end of the second quarter of approximately $1.4 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 further revised its expectation for Total revenue from $375 – $390 million to $425 –$440 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 $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 on Twitter (hashtag #GinkgoResults) or by sending an e-mail to [email protected].
A webcast link is available on Ginkgo’s Investor Relations website and a replay will be made available following the presentation.