Ginkgo provides update on its restructuring
process including an acceleration of site consolidation initiatives
and continued progress on cost reductions
Ginkgo signs new and expanded deals with Novo
Nordisk and achieves a major research milestone with
Merck
BOSTON, Nov. 12,
2024 /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,
2024. 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.
Third Quarter 2024 Financial Results
- Third quarter 2024 Total revenue of $89
million, up from $55 million
in the comparable prior year period, an increase of 61% driven by
$45 million of non-cash revenue from
a release of deferred revenue relating to the mutual termination of
a customer agreement. Excluding this impact, Total revenue in the
quarter was $44 million, a decrease
of 21% over the prior year period
- Excluding the $45 million
non-cash deferred revenue release, third quarter 2024 Cell
Engineering revenue of $30 million,
down from $37 million in the
comparable prior year period, a decrease of 20% driven by the
continued shift from early stage customers to large/enterprise
customers along with commercial changes related to the
restructuring
- Third quarter 2024 Biosecurity revenue of $14 million with gross profit margin of 28%.
Biosecurity revenue decreased from the comparable prior year period
due to the expected ramp down of K-12 testing
- Third quarter 2024 Loss from operations of $(55) million (inclusive of stock-based
compensation expense of $14 million
and M&A and restructuring related costs of $2 million, net), compared to Loss from
operations of $(286) million
(inclusive of stock-based compensation expense of $54 million and M&A and restructuring related
costs, including asset impairments, of $124
million) in the comparable prior year period. The 2024
period also benefited from the above non-cash deferred revenue
release
- Third quarter 2024 Adjusted EBITDA of $(20) million, up from $(84) million in the comparable prior year
period, driven by the above non-cash deferred revenue release and a
decrease in operating expenses
- Cash and cash equivalents balance as of the end of the third
quarter of $616 million
"I'm extremely proud of the significant progress we made in the
third quarter," said Jason Kelly,
co-founder and CEO of Ginkgo. "The team has been laser-focused on
delivering for customers while driving down costs even further. We
are achieving ambitious milestones, signing new deals with several
new and existing customers while also launching our new Automation,
Datapoints and AI offerings. Beyond customer successes, we will
substantially consolidate our overall real estate footprint by
exiting several facilities in Cambridge,
MA and Europe by year end.
We couldn't have done this without the support of our Board and
we're very grateful to Arie for all of his service and
contributions to our journey since going public, and look forward
to working closely with Sri as he brings a wealth of knowledge in
the automation and life science tools space as we expand
increasingly into tools. It's an incredibly important time to be
pursuing the mission of making biology easier to engineer and
creating sustainable biosecurity infrastructure for the future. I
am excited by the momentum we are gaining to meet that mission as
we close out this year on a substantially reduced cost base."
Recent Business Highlights & Strategic
Positioning
- Cell Engineering closed deals with new and existing customers
- Added 25 new programs and other customer contracts to the Cell
Engineering platform in Q3 2024, of which 11 were comparable in
size and scope to historically reported New Programs and an
additional 14 contracts that represent a variety of other deal
archetypes, such as Datapoints projects
- Signed a new deal with Novo Nordisk focused on the discovery
and development of proteins while also expanding Ginkgo's existing
collaboration on expression systems for pharmaceutical
products
- Delivered on a major research milestone for Ginkgo's previously
announced deal with Merck. As part of this milestone completion,
Ginkgo will receive a fee of $9
million in cash, expected in Q4 2024, and will move to Stage
2 to work towards making an even more effective production
process
- Signed three new Datapoints deals with a major TechBio company
and two of the top 25 pharmaceutical companies
- Ginkgo Biosecurity continues to work towards creating solutions
that offer persistent, pervasive monitoring
- Ginkgo validated its approach to rapidly detect H5N1 and has
updated its offerings to include DNA sequencing of raw milk,
bioinformatics as a service and comprehensive analyzed data
sets
- Ginkgo made significant progress on its plan to reach Adjusted
EBITDA breakeven by the end of 2026
- The reduction in force is estimated to achieve over
$85 million in annualized savings by
mid-2025
- Ginkgo has continued implementing significant non-people cost
cutting measures, including rationalizing third-party costs and
site consolidation
- Dr. Sri Kosuri, CEO of Octant
and former associate professor at UCLA
in the Chemistry and Biochemistry Department, joined our Board on
November 6, 2024. Dr. Arie
Belldegrun, a director since September
2021 and member of our compensation committee, resigned from
the Board on November 7, 2024
Full Year 2024 Outlook
- Ginkgo previously issued 2024 guidance for Total revenue of
$170-190 million; Cell Engineering
services revenue of $120-140 million;
and Biosecurity revenue of at least $50
million. Ginkgo updates its previously issued guidance
solely to reflect the impact of the previously mentioned
$45 million non-cash deferred revenue
release in the third quarter to:
- Total revenue guidance of $215-235 million in 2024;
- Cell Engineering services revenue of $165-185 million in 2024; and
- Biosecurity revenue of at least $50
million in 2024.
Conference Call Details
Ginkgo will host a
videoconference today, Tuesday, November 12,
2024, beginning at 5:30 p.m.
ET. The presentation will include an overview of 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 X (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: 920 8859 2008
If you experience technical difficulties with any of these
dial-ins or if you need international dial-in numbers, please visit
our website 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 Biosecurity is building
and deploying the next-generation infrastructure and technologies
that global leaders need to predict, detect, and respond to a wide
variety of biological threats. For more information, visit
ginkgobioworks.com and ginkgobiosecurity.com, read our blog,
or follow us on social media channels such as X (@Ginkgo and
@Ginkgo_Biosec), Instagram (@GinkgoBioworks), Threads
(@GinkgoBioworks) 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, including with respect to our
current expectations, operations and anticipated results of
operations, both business and financial, including the timing for
attaining Adjusted EBITDA breakeven and profitability, our
reduction in workforce and anticipated impacts thereof, the timing
and structuring of our facilities consolidation and the potential
financial impact thereof, potential customer success, including
successful application of our offerings by our customers,
expectations with regard to revenue, expenses, including our
stock-based compensation expenses, our full year 2024 outlook, and
the market environment, 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) our ability to realize near-term and long-term cost
savings associated with our site consolidation plans, including the
ability to terminate leases or find sub-lease tenants for unused
facilities, (ii) 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, (iii) the
ability to implement business plans, forecasts, and other
expectations, and to identify and realize additional business
opportunities, (iv) the risk of downturns in demand for products
using synthetic biology, (v) the uncertainty regarding the demand
for passive monitoring programs and biosecurity services, (vi)
changes to the biosecurity industry, including due to advancements
in technology, emerging competition and evolution in industry
demands, standards and regulations, (vii) the outcome of any
pending or potential legal proceedings against Ginkgo, (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, (x) the product development or commercialization
success of our customers, and (xi) the potential negative impact on
our business of our planned reduction in force or the failure to
realize the anticipated savings associated therewith. 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 February 29, 2024 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, and 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 September 30,
2024
|
|
As of December 31,
2023
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
616,214
|
|
$
944,073
|
|
Accounts receivable,
net
|
|
23,411
|
|
17,157
|
|
Accounts receivable -
related parties
|
|
531
|
|
742
|
|
Prepaid expenses and
other current assets
|
|
22,324
|
|
39,777
|
|
Total current
assets
|
|
662,480
|
|
1,001,749
|
|
Property, plant, and
equipment, net
|
|
211,035
|
|
188,193
|
|
Operating lease
right-of-use assets
|
|
405,911
|
|
206,801
|
|
Investments
|
|
62,103
|
|
78,565
|
|
Intangible assets,
net
|
|
79,566
|
|
82,741
|
|
Goodwill
|
|
—
|
|
49,238
|
|
Other non-current
assets
|
|
59,788
|
|
58,055
|
|
Total assets
|
|
$
1,480,883
|
|
$
1,665,342
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
15,700
|
|
$
9,323
|
|
Deferred
revenue
|
|
22,894
|
|
44,486
|
|
Accrued expenses and
other current liabilities
|
|
75,833
|
|
110,051
|
|
Total current
liabilities
|
|
114,427
|
|
163,860
|
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred revenue, net
of current portion
|
|
105,247
|
|
158,062
|
|
Operating lease
liabilities, non-current
|
|
445,592
|
|
221,835
|
|
Other non-current
liabilities
|
|
17,674
|
|
24,433
|
|
Total
liabilities
|
|
682,940
|
|
568,190
|
|
Commitments and
contingencies
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Preferred stock,
$0.0001 par value
|
|
—
|
|
—
|
|
Common stock, $0.0001
par value
|
|
5
|
|
5
|
|
Additional paid-in
capital
|
|
6,527,698
|
|
6,386,191
|
|
Accumulated
deficit
|
|
(5,730,023)
|
|
(5,290,528)
|
|
Accumulated other
comprehensive income
|
|
263
|
|
1,484
|
|
Total stockholders'
equity
|
|
797,943
|
|
1,097,152
|
|
Total liabilities and
stockholders' equity
|
|
$
1,480,883
|
|
$
1,665,342
|
|
Ginkgo Bioworks
Holdings, Inc.
|
|
Condensed Consolidated
Statements of Operations and Comprehensive Loss
|
|
(in thousands, except
per share data, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Cell Engineering
revenue
|
|
$
75,089
|
|
$
37,176
|
|
$
139,183
|
|
$
116,555
|
|
Biosecurity
revenue:
|
|
|
|
|
|
|
|
|
|
Product
|
|
—
|
|
6,495
|
|
—
|
|
28,949
|
|
Service
|
|
13,957
|
|
11,759
|
|
44,013
|
|
71,196
|
|
Total
revenue
|
|
89,046
|
|
55,430
|
|
183,196
|
|
216,700
|
|
Costs and operating
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of
Biosecurity product revenue
|
|
—
|
|
906
|
|
—
|
|
7,481
|
|
Cost of
Biosecurity service revenue
|
|
9,987
|
|
6,017
|
|
30,996
|
|
39,913
|
|
Cost of
other revenue
|
|
2,016
|
|
—
|
|
3,930
|
|
—
|
|
Research
and development (1)
|
|
77,006
|
|
156,662
|
|
347,684
|
|
463,583
|
|
General
and administrative (1)
|
|
52,292
|
|
82,028
|
|
188,864
|
|
295,802
|
|
Impairment
of lease assets
|
|
—
|
|
96,210
|
|
—
|
|
96,210
|
|
Goodwill
impairment
|
|
—
|
|
—
|
|
47,858
|
|
—
|
|
Restructuring charges
|
|
2,949
|
|
—
|
|
20,015
|
|
—
|
|
Total operating
expenses
|
|
144,250
|
|
341,823
|
|
639,347
|
|
902,989
|
|
Loss from
operations
|
|
(55,204)
|
|
(286,393)
|
|
(456,151)
|
|
(686,289)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest
income, net
|
|
9,251
|
|
15,020
|
|
31,275
|
|
43,914
|
|
Loss on
equity method investments
|
|
—
|
|
—
|
|
—
|
|
(1,516)
|
|
Loss on
investments
|
|
(6,912)
|
|
(36,324)
|
|
(16,282)
|
|
(44,815)
|
|
Loss on
deconsolidation of subsidiary
|
|
(7,013)
|
|
—
|
|
(7,013)
|
|
—
|
|
Change in
fair value of warrant liabilities
|
|
1,528
|
|
1,891
|
|
5,701
|
|
(1,387)
|
|
Other
income, net
|
|
1,572
|
|
2,893
|
|
2,821
|
|
9,045
|
|
Total other income
(expense)
|
|
(1,574)
|
|
(16,520)
|
|
16,502
|
|
5,241
|
|
Loss before income
taxes
|
|
(56,778)
|
|
(302,913)
|
|
(439,649)
|
|
(681,048)
|
|
Income tax expense
(benefit)
|
|
(375)
|
|
(22)
|
|
(154)
|
|
127
|
|
Net loss
|
|
$ (56,403)
|
|
$ (302,891)
|
|
$ (439,495)
|
|
$
(681,175)
|
|
Net loss per share,
basic and diluted
|
|
$
(1.08)
|
|
$
(6.21)
|
|
$
(8.58)
|
|
$
(14.09)
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
52,240
|
|
48,770
|
|
51,244
|
|
48,330
|
|
Diluted
|
|
52,246
|
|
48,770
|
|
51,250
|
|
48,330
|
|
Comprehensive
loss:
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$ (56,403)
|
|
$ (302,891)
|
|
$ (439,495)
|
|
$
(681,175)
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustment
|
|
494
|
|
(1,599)
|
|
(2,713)
|
|
(267)
|
|
Reclassification of foreign currency translation
adjustment
realized upon sale of
foreign
subsidiary
|
|
1,492
|
|
—
|
|
1,492
|
|
—
|
|
Total other
comprehensive income (loss)
|
|
1,986
|
|
(1,599)
|
|
(1,221)
|
|
(267)
|
|
Comprehensive
loss
|
|
$ (54,417)
|
|
$ (304,490)
|
|
$ (440,716)
|
|
$
(681,442)
|
|
|
(1) Total
stock-based compensation expense, inclusive of employer payroll
taxes, was allocated as follows (in thousands):
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Research and
development
|
|
$
3,214
|
|
$
33,976
|
|
$
48,028
|
|
$
122,086
|
|
General and
administrative
|
|
10,799
|
|
19,671
|
|
46,608
|
|
69,238
|
|
Total
|
|
$
14,013
|
|
$
53,647
|
|
$
94,636
|
|
$
191,324
|
|
Ginkgo Bioworks
Holdings, Inc.
|
|
Condensed Consolidated
Statements of Cash Flows
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net loss
|
|
$
(439,495)
|
|
$
(681,175)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
47,368
|
|
57,670
|
|
Stock-based
compensation
|
|
91,783
|
|
187,047
|
|
Goodwill
impairment
|
|
47,858
|
|
—
|
|
Restructuring related
impairment charges
|
|
4,823
|
|
—
|
|
Loss on investments and
equity method investments
|
|
16,282
|
|
46,331
|
|
Loss on deconsolidation
of subsidiary
|
|
7,013
|
|
—
|
|
Change in fair value of
warrant liabilities
|
|
(5,701)
|
|
1,387
|
|
Change in fair value of
contingent consideration liability
|
|
3,698
|
|
10,217
|
|
Non-cash lease
expense
|
|
20,619
|
|
24,635
|
|
Non-cash in-process
research and development
|
|
19,796
|
|
3,981
|
|
Impairment of
long-lived assets
|
|
—
|
|
121,404
|
|
Other non-cash
activity
|
|
655
|
|
3,053
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
(6,101)
|
|
21,168
|
|
Prepaid expenses and
other current assets
|
|
3,487
|
|
13,557
|
|
Operating lease
right-of-use assets
|
|
19,224
|
|
9,277
|
|
Other non-current
assets
|
|
(196)
|
|
(2,733)
|
|
Accounts
payable, accrued expenses and other current
liabilities
|
|
(31,099)
|
|
(4,822)
|
|
Deferred revenue,
current and non-current
|
|
(67,779)
|
|
(29,382)
|
|
Operating lease
liabilities, current and non-current
|
|
(11,383)
|
|
(18,310)
|
|
Other non-current
liabilities
|
|
1,998
|
|
(974)
|
|
Net cash used in
operating activities
|
|
(277,150)
|
|
(237,669)
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(48,831)
|
|
(37,355)
|
|
Business
acquisition
|
|
(5,400)
|
|
—
|
|
Proceeds from sales of
marketable securities
|
|
3,951
|
|
—
|
|
Proceeds from sale of
equipment
|
|
591
|
|
3,000
|
|
Other
|
|
538
|
|
336
|
|
Net cash used in
investing activities
|
|
(49,151)
|
|
(34,019)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Proceeds from exercise
of stock options
|
|
84
|
|
79
|
|
Principal payments on
finance leases
|
|
(694)
|
|
(977)
|
|
Contingent
consideration payment
|
|
(922)
|
|
(1,082)
|
|
Other
|
|
(4)
|
|
(604)
|
|
Net cash used in
financing activities
|
|
(1,536)
|
|
(2,584)
|
|
Effect of foreign
exchange rates on cash and cash equivalents
|
|
(208)
|
|
(690)
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
|
(328,045)
|
|
(274,962)
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
944,073
|
|
1,315,792
|
|
Restricted cash,
beginning of period
|
|
45,511
|
|
53,789
|
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
989,584
|
|
1,369,581
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
|
616,214
|
|
1,049,244
|
|
Restricted cash, end of
period
|
|
45,325
|
|
45,375
|
|
Cash, cash equivalents
and restricted cash, end of period
|
|
$
661,539
|
|
$
1,094,619
|
|
Selected Non-GAAP
Financial Measures
|
|
(in thousands,
unaudited)
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net loss
(1)
|
|
$
(56,403)
|
|
$
(302,891)
|
|
$
(439,495)
|
|
$
(681,175)
|
|
Interest income,
net
|
|
(9,251)
|
|
(15,020)
|
|
(31,275)
|
|
(43,914)
|
|
Income tax expense
(benefit)
|
|
(375)
|
|
(22)
|
|
(154)
|
|
127
|
|
Depreciation and
amortization
|
|
17,171
|
|
21,060
|
|
47,368
|
|
57,670
|
|
EBITDA
|
|
(48,858)
|
|
(296,873)
|
|
(423,556)
|
|
(667,292)
|
|
Stock-based
compensation (2)
|
|
14,013
|
|
53,647
|
|
94,636
|
|
191,324
|
|
Impairment expense
(3)
|
|
—
|
|
112,403
|
|
47,858
|
|
121,404
|
|
Restructuring charges
(4)
|
|
2,949
|
|
—
|
|
20,015
|
|
—
|
|
Merger and acquisition
related expenses (5)
|
|
(796)
|
|
12,253
|
|
6,110
|
|
43,127
|
|
Loss on equity method
investments
|
|
—
|
|
—
|
|
—
|
|
1,516
|
|
Loss on
investments
|
|
6,912
|
|
36,324
|
|
16,282
|
|
44,815
|
|
Loss on deconsolidation
of subsidiary
|
|
7,013
|
|
—
|
|
7,013
|
|
—
|
|
Change in fair value of
warrant liabilities
|
|
(1,528)
|
|
(1,891)
|
|
(5,701)
|
|
1,387
|
|
Change in fair value of
convertible notes
|
|
281
|
|
317
|
|
1,127
|
|
121
|
|
Adjusted
EBITDA
|
|
$
(20,014)
|
|
$
(83,820)
|
|
$
(236,216)
|
|
$
(263,598)
|
|
|
|
(1)
|
All periods include
non-cash revenue when earned, including $45.4 million in the three
and nine months ended September 30, 2024, recognized pursuant to
the termination of revenue contracts with Motif.
|
|
(2)
|
Includes $0.2 million
and $1.1 million in employer payroll taxes for the three months
ended September 30, 2024 and 2023, respectively, and $2.9 and $4.3
million for the nine months ended September 30, 2024 and 2023,
respectively.
|
|
(3)
|
For 2024, includes
$47.9 million related to goodwill impairment. For the three months
ended September 30, 2023, includes a $16.2 million impairment loss
on lab equipment and a $96.2 million impairment loss on an
operating lease right-of-use asset and related leasehold
improvements associated with an exited Zymergen leased facility.
For the nine months ended September 30, 2023, includes a $25.2
million impairment loss on lab equipment and a $96.2 million
impairment loss on lease assets associated with the exited Zymergen
leased facility.
|
|
(4)
|
Restructuring charges
consist of employee termination costs from the reduction in force
commenced in June 2024, as well as the impairment of a right-of-use
asset relating to facilities consolidation.
|
|
(5)
|
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, (iv) costs associated with the Zymergen Bankruptcy,
as well as securities litigation costs, net of insurance recovery.
Not included in this adjustment are non-cash charges for acquired
in-process research and development expenses, which totaled $19.8
million and $4.0 million in the nine months ended
September 30, 2024 and 2023, respectively.
|
|
Ginkgo Bioworks
Holdings, Inc.
|
|
Segment
Information
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Cell
Engineering
|
$
75,089
|
|
$
37,176
|
|
$
139,183
|
|
$
116,555
|
|
Biosecurity
|
13,957
|
|
18,254
|
|
44,013
|
|
100,145
|
|
Total
revenue
|
89,046
|
|
55,430
|
|
183,196
|
|
216,700
|
|
Segment cost of
revenue:
|
|
|
|
|
|
|
|
|
Cell
Engineering
|
2,016
|
|
—
|
|
3,930
|
|
—
|
|
Biosecurity
|
9,987
|
|
6,923
|
|
30,996
|
|
47,394
|
|
Segment research and
development expense:
|
|
|
|
|
|
|
|
|
Cell
Engineering
|
57,201
|
|
90,889
|
|
253,790
|
|
275,494
|
|
Biosecurity
|
141
|
|
313
|
|
720
|
|
1,408
|
|
Total segment research
and development expense
|
57,342
|
|
91,202
|
|
254,510
|
|
276,902
|
|
Segment general and
administrative expense:
|
|
|
|
|
|
|
|
|
Cell
Engineering
|
29,319
|
|
42,617
|
|
103,167
|
|
155,216
|
|
Biosecurity
|
10,040
|
|
12,207
|
|
33,169
|
|
42,862
|
|
Total segment general
and administrative expense
|
39,359
|
|
54,824
|
|
136,336
|
|
198,078
|
|
Segment operating
(loss) income:
|
|
|
|
|
|
|
|
|
Cell
Engineering
|
(13,447)
|
|
(96,330)
|
|
(221,704)
|
|
(314,155)
|
|
Biosecurity
|
(6,211)
|
|
(1,189)
|
|
(20,872)
|
|
8,481
|
|
Total segment operating
loss
|
(19,658)
|
|
(97,519)
|
|
(242,576)
|
|
(305,674)
|
|
Operating expenses
not allocated to segments:
|
|
|
|
|
|
|
|
|
Stock-based
compensation (1)
|
14,013
|
|
53,647
|
|
94,636
|
|
191,324
|
|
Depreciation and
amortization
|
17,171
|
|
21,060
|
|
47,368
|
|
57,670
|
|
Impairment expense
(2)
|
—
|
|
112,403
|
|
47,858
|
|
121,404
|
|
Restructuring
charges
|
2,949
|
|
—
|
|
20,015
|
|
—
|
|
Change in fair value of
contingent consideration liability
|
1,413
|
|
1,764
|
|
3,698
|
|
10,217
|
|
Loss from
operations
|
$ (55,204)
|
|
$
(286,393)
|
|
$
(456,151)
|
|
$
(686,289)
|
|
|
|
(1)
|
Includes $0.2 million
and $1.1 million in employer payroll taxes for the three months
ended September 30, 2024 and 2023, respectively, and $2.9 million
and $4.3 million in employer payroll taxes for the nine months
ended September 30, 2024 and 2023, respectively.
|
|
(2)
|
For 2024, includes
$47.9 million related to goodwill impairment. For the three months
ended September 30, 2023, includes a $16.2 million impairment loss
on lab equipment and a $96.2 million impairment loss on an
operating lease right-of-use asset and related leasehold
improvements associated with an exited Zymergen leased facility.
For the nine months ended September 30, 2023, includes a $25.2
million impairment loss on lab equipment and a $96.2 million
impairment loss on lease assets associated with the exited Zymergen
leased facility.
|
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SOURCE Ginkgo Bioworks
