Ginkgo provides update on its restructuring
process including estimated annualized cost savings of over
$85 million from reduction in
force
BOSTON, Aug. 8, 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
second quarter ended June 30, 2024.
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.
Second Quarter 2024 Financial Results
- Second quarter 2024 Total revenue of $56
million, down from $81 million
in the comparable prior year period, a decrease of 30% primarily
driven by the expected ramp down of K-12 testing in Ginkgo's
Biosecurity segment
- Second quarter 2024 Cell Engineering revenue of $36 million, down from $45
million in the comparable prior year period, a decrease of
20% driven by a decline in revenue from early stage customers
partially offset by growth from large/enterprise customers
- Second quarter 2024 Biosecurity revenue of $20 million with gross profit margin of 41%
- Second quarter 2024 Loss from operations of $(223) million (inclusive of stock-based
compensation expense of $38 million
and M&A and restructuring related costs, including asset
impairments, of $72 million),
compared to Loss from operations of $(184)
million (inclusive of stock-based compensation expense of
$62 million and M&A and
restructuring related costs, including asset impairments, of
$26 million) in the comparable prior
year period
- Second quarter 2024 Adjusted EBITDA of $(99) million, down from $(80) million in the comparable prior year
period, driven by the decrease in Total revenue partially offset by
a decrease in certain operating expenses
- Cash and cash equivalents balance as of the end of the second
quarter of $730 million
"This past quarter was a quarter of focused execution for
Ginkgo," said Jason Kelly,
co-founder and CEO of Ginkgo. "During the Q1 2024 earnings call, we
announced that we were taking decisive action to reduce costs in
order to reach Adjusted EBITDA breakeven by the end of 2026 and, in
June, we commenced a reduction in force impacting 35% of the
workforce. Alongside the RIF, we continued to deliver well for
customers as reflected in our second quarter revenue and I'm happy
we have gained initial traction with our new lab data as a service
("LDaaS") offering, including our first few deals with a large cap
tech company."
Recent Business Highlights & Strategic
Positioning
- Cell Engineering worked to close deals as Ginkgo's new
commercial terms begin to gain traction
- Added 18 new programs and other customer contracts to the Cell
Engineering platform in Q2 2024, of which 10 were comparable in
size and scope to historically reported New Programs and an
additional 8 contracts that represent a variety of smaller deal
archetypes, such as LDaaS projects
- Signed first LDaaS deals with a large cap tech company in
protein characterization
- Delivered on a major technical milestone for a large
pharmaceutical customer
- Announced a new collaboration with Syngenta Crop
Protection aimed at accelerating the launch of a new biological
solution to develop and optimize a microbial strain that can meet
the productivity targets of a secondary metabolite from the
Syngenta Biologicals pipeline
- Ginkgo Biosecurity continues to work towards creating solutions
that offer persistent, pervasive monitoring
- Ginkgo has put forth a proposed Genomic Analysis Program
to address the threat of H5N1. The program builds upon existing
practices of pooling and sampling milk for food safety, and
integrates novel capabilities to generate genomic analysis of H5N1
if it spreads and evolves
- Ginkgo began executing 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 is also implementing significant non-people cost cutting
measures, including rationalizing third-party costs and site
consolidation
Full Year 2024 Outlook
- Ginkgo reaffirms Total revenue of $170-$190 million
in 2024
- Ginkgo continues to expect Cell Engineering services revenue of
$120-140 million in 2024
- Ginkgo continues to expect Biosecurity revenue of at least
$50 million in 2024
Conference Call Details
Ginkgo will host a videoconference today, Thursday, August 8, 2024, beginning at
5:30 p.m. ET. The presentation will
include an overview of 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 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: 991 5650 6740
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 balance sheet and cash runway, current
expectations, operations and anticipated results of operations,
both business and financial, including the timing for attaining
Adjusted EBITDA breakeven and profitability, the success of our new
LDaaS offering and anticipated impacts on our results, our planned
reduction in workforce and anticipated impacts thereof, the timing
and structuring of our planned site consolidation and the potential
financial impact thereof, opportunities for and timing of increased
operational efficiency and the expected impact on our operational
expenditures, our manufacturing capabilities, potential customer
success, including successful application of our offerings by our
customers, the capabilities and potential operational and financial
success of our acquisitions, partnerships and collaborations, and
expected timing thereof, expectations with regard to revenue, the
nature of such revenue and any related downstream value share
associated with such revenue, funding that is contingent upon
Ginkgo's achievement of milestones, expenses, including our
stock-based compensation expenses, our full year 2024 outlook, the
expansion, timing and potential capabilities of our biosecurity
monitoring, surveillance and detection systems, 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 June 30,
2024
|
|
As of December 31,
2023
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
730,367
|
|
$
944,073
|
|
Accounts receivable,
net
|
|
18,589
|
|
17,157
|
|
Accounts receivable -
related parties
|
|
302
|
|
742
|
|
Prepaid expenses and
other current assets
|
|
34,104
|
|
39,777
|
|
Total current
assets
|
|
783,362
|
|
1,001,749
|
|
Property, plant, and
equipment, net
|
|
210,582
|
|
188,193
|
|
Operating lease
right-of-use assets
|
|
418,008
|
|
206,801
|
|
Investments
|
|
62,490
|
|
78,565
|
|
Intangible assets,
net
|
|
90,602
|
|
82,741
|
|
Goodwill
|
|
—
|
|
49,238
|
|
Other non-current
assets
|
|
60,211
|
|
58,055
|
|
Total
assets
|
|
$
1,625,255
|
|
$
1,665,342
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
23,029
|
|
$
9,323
|
|
Deferred
revenue
|
|
26,007
|
|
44,486
|
|
Accrued expenses and
other current liabilities
|
|
117,118
|
|
110,051
|
|
Total current
liabilities
|
|
166,154
|
|
163,860
|
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred revenue, net
of current portion
|
|
152,869
|
|
158,062
|
|
Operating lease
liabilities, non-current
|
|
452,265
|
|
221,835
|
|
Other non-current
liabilities
|
|
20,895
|
|
24,433
|
|
Total
liabilities
|
|
792,183
|
|
568,190
|
|
Commitments and
contingencies
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Preferred stock,
$0.0001 par value
|
|
—
|
|
—
|
|
Common stock, $0.0001
par value
|
|
206
|
|
199
|
|
Additional paid-in
capital
|
|
6,508,209
|
|
6,385,997
|
|
Accumulated
deficit
|
|
(5,673,620)
|
|
(5,290,528)
|
|
Accumulated other
comprehensive (loss) income
|
|
(1,723)
|
|
1,484
|
|
Total stockholders'
equity
|
|
833,072
|
|
1,097,152
|
|
Total liabilities and
stockholders' equity
|
|
$
1,625,255
|
|
$
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
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Cell Engineering
revenue
|
|
$
36,205
|
|
$
45,283
|
|
$
64,094
|
|
$
79,379
|
|
Biosecurity
revenue:
|
|
|
|
|
|
|
|
|
|
Product
|
|
—
|
|
10,788
|
|
—
|
|
22,454
|
|
Service
|
|
20,001
|
|
24,497
|
|
30,056
|
|
59,437
|
|
Total
revenue
|
|
56,206
|
|
80,568
|
|
94,150
|
|
161,270
|
|
Costs and
operating expenses:
|
|
|
|
|
|
|
|
|
|
Cost of
Biosecurity product revenue
|
|
—
|
|
2,034
|
|
—
|
|
6,575
|
|
Cost of
Biosecurity service revenue
|
|
11,807
|
|
16,062
|
|
21,009
|
|
33,896
|
|
Cost of
other revenue
|
|
1,914
|
|
—
|
|
1,914
|
|
—
|
|
Research
and development (1)
|
|
134,221
|
|
144,282
|
|
270,678
|
|
306,921
|
|
General
and administrative (1)
|
|
66,285
|
|
102,341
|
|
136,572
|
|
213,774
|
|
Goodwill
impairment
|
|
47,858
|
|
—
|
|
47,858
|
|
—
|
|
Restructuring charges
|
|
17,066
|
|
—
|
|
17,066
|
|
—
|
|
Total operating
expenses
|
|
279,151
|
|
264,719
|
|
495,097
|
|
561,166
|
|
Loss from
operations
|
|
(222,945)
|
|
(184,151)
|
|
(400,947)
|
|
(399,896)
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
|
Interest
income, net
|
|
10,313
|
|
14,349
|
|
22,024
|
|
28,894
|
|
Loss on
equity method investments
|
|
—
|
|
(67)
|
|
—
|
|
(1,516)
|
|
Loss on
investments
|
|
(6,826)
|
|
(2,121)
|
|
(9,370)
|
|
(8,491)
|
|
Change in
fair value of warrant liabilities
|
|
3,233
|
|
(4,482)
|
|
4,173
|
|
(3,278)
|
|
Other
income (expense), net
|
|
(766)
|
|
3,224
|
|
1,249
|
|
6,152
|
|
Total other
income
|
|
5,954
|
|
10,903
|
|
18,076
|
|
21,761
|
|
Loss before income
taxes
|
|
(216,991)
|
|
(173,248)
|
|
(382,871)
|
|
(378,135)
|
|
Income tax
expense
|
|
190
|
|
67
|
|
221
|
|
149
|
|
Net loss
|
|
(217,181)
|
|
(173,315)
|
|
(383,092)
|
|
(378,284)
|
|
Net loss per share,
basic and diluted
|
|
$
(0.11)
|
|
$
(0.09)
|
|
$
(0.19)
|
|
$
(0.20)
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
2,054,801
|
|
1,933,437
|
|
2,029,630
|
|
1,924,251
|
|
Diluted
|
|
2,055,024
|
|
1,933,437
|
|
2,029,853
|
|
1,924,251
|
|
Comprehensive
loss:
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
(217,181)
|
|
$ (173,315)
|
|
$ (383,092)
|
|
$
(378,284)
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustment
|
|
(172)
|
|
314
|
|
(3,207)
|
|
1,332
|
|
Total other
comprehensive (loss) income
|
|
(172)
|
|
314
|
|
(3,207)
|
|
1,332
|
|
Comprehensive
loss
|
|
$
(217,353)
|
|
$
(173,001)
|
|
$ (386,299)
|
|
$
(376,952)
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Total stock-based
compensation expense, inclusive of employer payroll taxes, was
allocated as follows (in thousands):
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Research and
development
|
|
$
20,693
|
|
$
40,569
|
|
$
44,814
|
|
$
88,110
|
|
General and
administrative
|
|
17,533
|
|
21,908
|
|
35,809
|
|
49,567
|
|
Total
|
|
$
38,226
|
|
$
62,477
|
|
$
80,623
|
|
$
137,677
|
|
Ginkgo Bioworks
Holdings, Inc.
|
|
Condensed Consolidated
Statements of Cash Flows
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net loss
|
|
$
(383,092)
|
|
$
(378,284)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
30,199
|
|
36,610
|
|
Stock-based
compensation
|
|
77,928
|
|
134,474
|
|
Goodwill
impairment
|
|
47,858
|
|
—
|
|
Restructuring related
impairment charges
|
|
4,823
|
|
—
|
|
Loss on investments
and equity method investments
|
|
9,370
|
|
10,007
|
|
Change in fair value
of warrant liabilities
|
|
(4,173)
|
|
3,278
|
|
Change in fair value
of contingent consideration liability
|
|
2,284
|
|
8,453
|
|
Non-cash lease
expense
|
|
13,070
|
|
16,327
|
|
Non-cash in-process
research and development
|
|
19,795
|
|
3,981
|
|
Impairment loss on
assets held for sale
|
|
—
|
|
9,001
|
|
Other non-cash
activity
|
|
2,097
|
|
2,429
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
(1,102)
|
|
15,397
|
|
Prepaid expenses and
other current assets
|
|
1,770
|
|
12,087
|
|
Operating lease
right-of-use assets
|
|
14,373
|
|
4,096
|
|
Other non-current
assets
|
|
(833)
|
|
(2,426)
|
|
Accounts payable,
accrued expenses and other current liabilities
|
|
10,864
|
|
(4,004)
|
|
Deferred revenue,
current and non-current
|
|
(17,012)
|
|
(21,372)
|
|
Operating lease
liabilities, current and non-current
|
|
(3,866)
|
|
(13,250)
|
|
Other non-current
liabilities
|
|
1,998
|
|
(922)
|
|
Net cash used in
operating activities
|
|
(173,649)
|
|
(164,118)
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(33,742)
|
|
(32,974)
|
|
Business
acquisition
|
|
(5,400)
|
|
—
|
|
Proceeds from sale of
equipment
|
|
191
|
|
2,926
|
|
Other
|
|
—
|
|
(590)
|
|
Net cash used in
investing activities
|
|
(38,951)
|
|
(30,638)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Proceeds from exercise
of stock options
|
|
84
|
|
24
|
|
Principal payments on
finance leases
|
|
(494)
|
|
(648)
|
|
Contingent
consideration payment
|
|
(661)
|
|
(1,042)
|
|
Other
|
|
—
|
|
(603)
|
|
Net cash used in
financing activities
|
|
(1,071)
|
|
(2,269)
|
|
Effect of foreign
exchange rates on cash and cash equivalents
|
|
(173)
|
|
(495)
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
|
(213,844)
|
|
(197,520)
|
|
|
|
|
|
|
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
|
|
730,367
|
|
1,105,787
|
|
Restricted cash, end of
period
|
|
45,373
|
|
66,274
|
|
Cash, cash equivalents
and restricted cash, end of period
|
|
$
775,740
|
|
$
1,172,061
|
|
Ginkgo Bioworks
Holdings, Inc.
|
|
Selected Non-GAAP
Financial Measures
|
|
(in thousands,
unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net loss
|
|
$ (217,181)
|
|
$ (173,315)
|
|
$
(383,092)
|
|
$
(378,284)
|
|
Interest income,
net
|
|
(10,313)
|
|
(14,349)
|
|
(22,024)
|
|
(28,894)
|
|
Income tax
expense
|
|
190
|
|
67
|
|
221
|
|
149
|
|
Depreciation and
amortization
|
|
17,330
|
|
17,652
|
|
30,199
|
|
36,610
|
|
EBITDA
|
|
(209,974)
|
|
(169,945)
|
|
(374,696)
|
|
(370,419)
|
|
Stock-based
compensation (1)
|
|
38,226
|
|
62,477
|
|
80,623
|
|
137,677
|
|
Impairment expense
(2)
|
|
47,858
|
|
9,001
|
|
47,858
|
|
9,001
|
|
Restructuring charges
(3)
|
|
17,066
|
|
—
|
|
17,066
|
|
—
|
|
Merger and acquisition
related expenses (4)
|
|
4,512
|
|
12,212
|
|
6,906
|
|
30,874
|
|
Loss on equity method
investments
|
|
—
|
|
67
|
|
—
|
|
1,516
|
|
Loss on
investments
|
|
6,826
|
|
2,121
|
|
9,370
|
|
8,491
|
|
Change in fair value of
warrant liabilities
|
|
(3,233)
|
|
4,482
|
|
(4,173)
|
|
3,278
|
|
Change in fair value of
convertible notes
|
|
(480)
|
|
(152)
|
|
846
|
|
(196)
|
|
Adjusted
EBITDA
|
|
$
(99,199)
|
|
$
(79,737)
|
|
$
(216,200)
|
|
$
(179,778)
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes $1.1 million
and $1.0 million in employer payroll taxes for the three months
ended June 30, 2024 and 2023, respectively, and $2.7 and $3.2
million for the six months ended June 30, 2024 and 2023,
respectively.
|
|
(2)
|
Impairment expense
includes $47.9 million related to goodwill impairment in the three
and six months ended June 30, 2024 and $9.0 million related to lab
equipment acquired as part of the Zymergen acquisition in the three
and six months ended June 30, 2023.
|
|
(3)
|
Restructuring charges
include $12.2 million in employee termination costs from the
reduction in force commenced in June 2024 and $4.8 million in
impairment of right-of-use asset relating to facilities
consolidation.
|
|
(4)
|
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 $3.0
million and $4.0 million in the three months ended June 30, 2024
and 2023, respectively, and $19.8 million and $4.0 million in the
six months ended June 30, 2024 and 2023, respectively.
|
|
Ginkgo Bioworks
Holdings, Inc.
|
|
Segment
Information
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Cell
Engineering
|
|
$
36,205
|
|
$
45,283
|
|
$
64,094
|
|
$
79,379
|
|
Biosecurity
|
|
20,001
|
|
35,285
|
|
30,056
|
|
81,891
|
|
Total
revenue
|
|
56,206
|
|
80,568
|
|
94,150
|
|
161,270
|
|
Segment cost of
revenue:
|
|
|
|
|
|
|
|
|
|
Cell
Engineering
|
|
1,914
|
|
—
|
|
1,914
|
|
—
|
|
Biosecurity
|
|
11,807
|
|
18,096
|
|
21,009
|
|
40,471
|
|
Segment research and
development expense:
|
|
|
|
|
|
|
|
|
|
Cell
Engineering
|
|
96,487
|
|
86,083
|
|
196,588
|
|
184,605
|
|
Biosecurity
|
|
458
|
|
528
|
|
578
|
|
1,095
|
|
Total segment research
and development expense
|
|
96,945
|
|
86,611
|
|
197,166
|
|
185,700
|
|
Segment general and
administrative expense:
|
|
|
|
|
|
|
|
|
|
Cell
Engineering
|
|
33,615
|
|
50,907
|
|
73,848
|
|
112,599
|
|
Biosecurity
|
|
11,179
|
|
16,699
|
|
23,130
|
|
30,655
|
|
Total segment general
and administrative expense
|
|
44,794
|
|
67,606
|
|
96,978
|
|
143,254
|
|
Segment operating
(loss) income:
|
|
|
|
|
|
|
|
|
|
Cell
Engineering
|
|
(95,811)
|
|
(91,707)
|
|
(208,256)
|
|
(217,825)
|
|
Biosecurity
|
|
(3,443)
|
|
(38)
|
|
(14,661)
|
|
9,670
|
|
Total segment
operating loss
|
|
(99,254)
|
|
(91,745)
|
|
(222,917)
|
|
(208,155)
|
|
Operating expenses
not allocated to segments:
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation (1)
|
|
38,226
|
|
62,477
|
|
80,623
|
|
137,677
|
|
Depreciation and
amortization
|
|
17,330
|
|
17,652
|
|
30,199
|
|
36,610
|
|
Impairment expense
(2)
|
|
47,858
|
|
9,001
|
|
47,858
|
|
9,001
|
|
Restructuring
charges
|
|
17,066
|
|
—
|
|
17,066
|
|
—
|
|
Change in
fair value of contingent consideration liability
|
|
3,211
|
|
3,276
|
|
2,284
|
|
8,453
|
|
Loss from
operations
|
|
$ (222,945)
|
|
$ (184,151)
|
|
$ (400,947)
|
|
$ (399,896)
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes $1.1 million
and $1.0 million in employer payroll taxes for the three months
ended June 30, 2024 and 2023, respectively, and $2.7 million
and $3.2 million in employer payroll taxes for the six months ended
June 30, 2024 and 2023, respectively.
|
|
(2)
|
Includes $47.9 million
related to goodwill impairment in the three and six months ended
June 30, 2024 and $9.0 million related to impairment of lab
equipment acquired as part of the Zymergen acquisition in the three
and six months ended June 30, 2023.
|
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SOURCE Ginkgo Bioworks
