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      Ginkgo Bioworks Reports Fourth Quarter and Full Year 2023 Financial Results

      (PRNewsfoto/Ginkgo Bioworks)

      News provided by

      Ginkgo Bioworks

      Feb 29, 2024, 17:01 ET

      Share this article

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      $251 million of Total revenue in 2023

      $139 million in Cell Engineering services revenue, representing 31% growth over 2022

      78 new Cell Programs added in 2023, representing 32% growth over 2022 and continued penetration in biopharma

      Year-end cash balance of nearly $950 million provides meaningful multi-year runway as we drive towards profitability and begin recognizing benefits from improved platform efficiency

      BOSTON, Feb. 29, 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 fourth quarter and year ended December 31, 2023. The update, including a webcast slide presentation and supplemental financial information, will be available at investors.ginkgobioworks.com.

      "2023 was a breakout year for Ginkgo," said Jason Kelly, co-founder and CEO of Ginkgo. "We're working to build a durable platform that fundamentally transforms R&D in biotech. I'm particularly pleased with our growth in biopharma, which represents our largest untapped market - we added several new programs across modalities with large enterprises including Boehringer Ingelheim, Merck, Novo Nordisk, and Pfizer and are seeing strong momentum in pharma going into 2024. I am also thrilled to see a real ecosystem building around Ginkgo - we're honored by the trust placed in us by the terrific founders of Patch Biosciences, Reverie Labs, and Proof Diagnostics to bring their technologies to customers and by the over 25 inaugural partners in our newly announced Technology Network. We are committed to bringing the best technologies together to support our customers, and we've never been better positioned to deliver."

      Recent Business Highlights & Strategic Positioning

      • Added 78 new Cell Engineering Programs in 2023, representing 32% growth over the prior year period
      • Ginkgo's Cell Engineering segment generated services revenue, which does not include downstream value share revenue, of $139 million in 2023, a 31% increase versus 2022
      • Ginkgo's Biosecurity segment generated $108 million of revenue in 2023 as the Biosecurity business shifted to a more recurring model focused on global reach and multiple pathogens to build a long-term biosecurity global infrastructure
        • Ginkgo continues to expand its global bioradar network—with pilots, programs, or MOUs in 14 countries and 10 airports—and advance capabilities for multi-target and multimodal biological threat detection, characterization, and forecasting for next-generation biological intelligence
        • Ginkgo is partnering with the Qatar Free Zones Authority (QFZ) and Doha Venture Capital (DVC) to build a Center for Unified Biosecurity Excellence in Doha (CUBE-D), envisioned as the first of several hubs for biosecurity sample and data analysis in our global network
        • Ginkgo is partnering with Illumina, a global leader in DNA sequencing and array-based technologies, to advance localized biosecurity capabilities in countries around the world
      • Downstream value share – 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. As of December 31, 2023 Ginkgo has approximately $2.4 billion in aggregate revenue potential from downstream milestone payments alone in addition to royalties.
      • Ginkgo recently announced the launch of its Technology Network of over 25 companies, creating a more integrated approach to biotech R&D. Ginkgo has a long history of integrating diverse technologies to deliver on customers' complex program goals and believes that customers should not have to choose a technical approach prematurely but should be able to test many approaches in an unbiased way. Ginkgo customers will be able to benefit from the integration of technologies from network partners in their programs, and Ginkgo expects to expand the network based on customer needs and feedback.
      • Ginkgo also announced several acquisitions including Patch Biosciences, Proof Diagnostics and Reverie Labs. These acquisitions are expected to expand Ginkgo's capabilities in AI and biopharma.

      Fourth Quarter 2023 Financial Highlights

      • Fourth quarter 2023 Total revenue of $35 million, down from $98 million in the comparable prior year period, a decrease of 65% primarily driven by the expected ramp down of K-12 testing in Ginkgo's Biosecurity segment and the impact of Cell Engineering downstream value share from equity milestones in 2022 that did not recur in 2023
        • Fourth quarter 2023 Cell Engineering services revenue, which does not include downstream value share revenue, of $27 million, down 26% from $36 million in the comparable prior year period. There was no material downstream value share revenue received in the fourth quarter of 2023.
        • Fourth quarter 2023 Biosecurity revenue of $8 million with gross profit margin of 15% is reflective of the early stages of transitioning to a more recurring business model
      • Fourth quarter 2023 Loss from operations of $(178) million (inclusive of stock-based compensation expense of $44 million), compared to Loss from operations of $(231) million in the comparable prior year period (inclusive of stock-based compensation expense of $111 million). Just under half of the stock-based compensation expense relates to the continued GAAP accounting for the modification of restricted stock units issued prior to Ginkgo becoming a public company, as disclosed in our annual report on Form 10-K filed with the SEC on March 13, 2023, and which we expect to continue to ramp down significantly in the coming quarters.
      • Fourth quarter 2023 Adjusted EBITDA of $(96) million, down from $(76) million in the comparable prior year period driven by the decline in Total revenue partially offset by a decline in operating expenses
      • Cash and cash equivalents balance as of the end of the fourth quarter of $944 million puts Ginkgo in a strong financial position to pursue its strategic objectives

      Full Year 2023 Financial Highlights

      • Full year 2023 Total revenue of $251 million, down from $478 million in the prior year, a decrease of 47% as Biosecurity revenue transitioned from K-12 testing to a more recurring business model
        • Full year 2023 Cell Engineering revenue of $144 million remained stable over the prior year, representing 31% growth in services revenue offset by a decrease in downstream value share from equity milestones
        • Full year 2023 Biosecurity revenue of $108 million, down from $334 million in the prior year, a decrease of 68%, with full year 2023 Biosecurity gross profit margin of 50%
      • Full year 2023 Loss from operations of $(864) million (inclusive of stock-based compensation expense of $235 million), compared to $(2.2) billion (inclusive of stock-based compensation expense of $1.9 billion) in the prior year
      • Full year 2023 Adjusted EBITDA of $(355) million, down from $(173) million in the prior year

      Full Year 2024 Guidance

      • Ginkgo expects to add 100-120 new Cell Programs to the Cell Engineering platform in 2024
      • Ginkgo expects Total revenue of $215-$235 million in 2024
        • Ginkgo expects Cell Engineering services revenue of $165-185 million in 2024 driven by expected growth in biopharma and government programs. This guidance excludes the impact of any potential downstream value share revenue.
        • Ginkgo expects Biosecurity revenue in 2024 of at least $50 million, representing approximate current contracted backlog, with potential upside from additional opportunities in the pipeline

      Conference Call Details
      Ginkgo will host a videoconference today, Thursday, February 29, 2024, beginning at 5:30 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 X (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.

      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: 928 9136 7332

      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 X (@Ginkgo and @ConcentricByGBW), 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, acquisitions, current expectations, operations and anticipated results of operations, both business and financial, including opportunities for increased operational efficiency, 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 future security and commercial applications of the BIOINT industry, the expansion, timing and potential capabilities of our bioradar network and the national biodefense strategy, plans to develop and deploy AI tools for biology and biosecurity for both internal use and external release, including the expected timing thereof, 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) 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 uncertainty regarding the demand for passive monitoring programs and biosecurity services, (v) changes to the biosecurity industry, including due to advancements in technology, emerging competition and evolution in industry demands, standards and regulations, (vi) the outcome of any pending or potential legal proceedings against Ginkgo, (vii) our ability to realize the expected benefits from and the success of our Foundry platform programs, (viii) our ability to successfully develop engineered cells, bioprocesses, data packages or other deliverables, and (ix) 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, 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:
      [email protected]

      MEDIA CONTACT:
      [email protected]

      Ginkgo Bioworks Holdings, Inc.

      Condensed Consolidated Balance Sheets

      (in thousands, except per share data, unaudited)

       
       

      As of December 31,

       

      2023

       

      2022

      Assets

           

      Current assets:

           

      Cash and cash equivalents

      $       944,073

       

      $    1,315,792

      Accounts receivable, net

      17,157

       

      80,907

      Accounts receivable - related parties

      742

       

      1,558

      Prepaid expenses and other current assets

      39,777

       

      51,822

      Total current assets

      1,001,749

       

      1,450,079

      Property, plant and equipment, net

      188,193

       

      314,773

      Operating lease right-of-use assets

      206,801

       

      400,762

      Investments

      78,565

       

      112,188

      Equity method investments

      —

       

      1,543

      Intangible assets, net

      82,741

       

      111,041

      Goodwill

      49,238

       

      60,210

      Other non-current assets

      58,055

       

      88,725

      Total assets

      $    1,665,342

       

      $    2,539,321

      Liabilities and Stockholders' Equity

           

      Current liabilities:

           

      Accounts payable

      $           9,323

       

      $         10,451

      Deferred revenue

      44,486

       

      47,817

      Accrued expenses and other current liabilities

      110,051

       

      114,694

      Total current liabilities

      163,860

       

      172,962

      Non-current liabilities:

           

      Deferred revenue, net of current portion

      158,062

       

      174,767

      Operating lease liabilities, non-current

      221,835

       

      413,256

      Warrant liabilities

      5,700

       

      10,868

      Other non-current liabilities

      18,733

       

      31,191

      Total liabilities

      568,190

       

      803,044

      Stockholders' equity:

           

      Preferred stock, $0.0001 par value; 200,000 shares authorized; none issued

      —

       

      —

      Common stock, $0.0001 par value

      199

       

      190

      Additional paid-in capital

      6,385,997

       

      6,136,378

      Accumulated deficit

      (5,290,528)

       

      (4,397,659)

      Accumulated other comprehensive income (loss)

      1,484

       

      (2,632)

      Total stockholders' equity

      1,097,152

       

      1,736,277

      Total liabilities and stockholders' equity

      $    1,665,342

       

      $    2,539,321

      Ginkgo Bioworks Holdings, Inc.

      Condensed Consolidated Statements of Operations and Comprehensive Loss

      (in thousands, except per share data, unaudited)

       
       

      Three Months Ended December 31,

       

      Year Ended December 31,

       

      2023

      2022

       

      2023

      2022

      Cell Engineering revenue

      $          26,976

      $          53,257

       

      $         143,531

      $         143,666

      Biosecurity revenue:

               

      Product

      —

      12,431

       

      28,949

      35,455

      Service

      7,779

      32,597

       

      78,975

      298,585

      Total revenue

      34,755

      98,285

       

      251,455

      477,706

      Costs and operating expenses:

               

      Cost of Biosecurity product revenue

      —

      7,447

       

      7,481

      20,646

      Cost of Biosecurity service revenue

      6,611

      22,771

       

      46,524

      183,570

      Research and development

      117,038

      177,548

       

      580,621

      1,052,643

      General and administrative

      89,223

      121,383

       

      385,025

      1,429,799

      Impairment of lease assets

      —

      —

       

      96,210

      —

      Total operating expenses

      212,872

      329,149

       

      1,115,861

      2,686,658

      Loss from operations

      (178,117)

      (230,864)

       

      (864,406)

      (2,208,952)

      Other income (expense):

               

      Interest income

      13,303

      11,441

       

      57,217

      20,262

      Interest expense

      (93)

      (106)

       

      (93)

      (106)

      Loss on equity method investments

      (1,119)

      10,003

       

      (2,635)

      (43,761)

      Loss on investments

      (10,012)

      (13,354)

       

      (54,827)

      (53,335)

      Change in fair value of warrant liabilities

      6,555

      28,871

       

      5,168

      124,970

      (Loss) gain on deconsolidation of subsidiaries

      (42,502)

      —

       

      (42,502)

      31,889

      Other income (expense), net

      93

      6,161

       

      9,138

      7,634

      Total other income (expense), net

      (33,775)

      43,016

       

      (28,534)

      87,553

      Loss before income taxes

      (211,892)

      (187,848)

       

      (892,940)

      (2,121,399)

      Income tax benefit

      (198)

      (14,770)

       

      (71)

      (15,027)

      Net loss

      (211,694)

      (173,078)

       

      (892,869)

      (2,106,372)

      Loss attributable to non-controlling interest

      —

      2,390

       

      —

      (1,443)

      Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders

      $      (211,694)

      $      (175,468)

       

      $       (892,869)

      $   (2,104,929)

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

      common stockholders:

               

      Basic

      $            (0.11)

      $            (0.09)

       

      $             (0.46)

      $             (1.25)

      Diluted

      $            (0.11)

      $            (0.10)

       

      $             (0.46)

      $             (1.25)

      Weighted average common shares outstanding:

               

      Basic

      1,977,708

      1,854,952

       

      1,944,420

      1,679,061

      Diluted

      1,978,843

      1,856,610

       

      1,944,420

      1,679,839

      Comprehensive loss:

               

      Net loss

      $      (211,694)

      $      (173,078)

       

      $       (892,869)

      $   (2,106,372)

      Other comprehensive loss:

               

      Foreign currency translation adjustment

      4,383

      5,278

       

      4,116

      (917)

      Total other comprehensive gain (loss)

      4,383

      5,278

       

      4,116

      (917)

      Comprehensive loss

      $      (207,311)

      $      (167,800)

       

      $       (888,753)

      $   (2,107,289)

       

      (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 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)

      2023

      2022

       

      2023

      2022

      Research and development

      $         26,775

      $         68,171

       

      $        148,861

      $          738,821

      General and administrative

      16,809

      43,059

       

      86,047

      1,202,099

      Total

      $         43,584

      $       111,230

       

      $        234,908

      $       1,940,920

      Ginkgo Bioworks Holdings, Inc.

      Condensed Consolidated Statements of Cash Flows

      (in thousands, unaudited)

       
       

      Year Ended December 31,

       

      2023

       

      2022

      Cash flows from operating activities:

           

      Net loss

      $       (892,869)

       

      $    (2,106,372)

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

           

      Depreciation and amortization

      70,507

       

      42,552

      Stock-based compensation

      229,884

       

      1,930,641

      Non-cash customer consideration

      (1,373)

       

      (34,263)

      Loss on equity method investments

      2,635

       

      43,761

      Loss on investments

      54,827

       

      53,335

      Change in fair value of notes receivable

      2,416

       

      (3,757)

      Change in fair value of warrant liabilities

      (5,168)

       

      (124,970)

      Change in fair value of contingent consideration liability

      9,168

       

      (1,262)

      Loss (gain) on deconsolidation of subsidiaries

      42,502

       

      (31,889)

      Impairment of long-lived assets

      121,404

       

      —

      Deferred income tax benefit

      (801)

       

      (14,609)

      Loss on disposal of equipment

      842

       

      3,091

      Non-cash lease expense

      28,313

       

      19,082

      Non-cash in-process research and development

      9,182

       

      1,162

      Amortization of finance lease right-of-use assets

      1,047

       

      1,871

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

      —

       

      6,152

      Other non-cash activity

      2,147

       

      283

      Changes in operating assets and liabilities:

           

      Accounts receivable

      50,068

       

      55,024

      Prepaid expenses and other current assets

      10,473

       

      (8,523)

      Operating lease right-of-use assets

      9,275

       

      13,233

      Other non-current assets

      2,570

       

      921

      Accounts payable

      (1,183)

       

      (10,844)

      Accrued expenses and other current liabilities

      16,899

       

      (39,639)

      Deferred revenue, current and non-current

      (35,917)

       

      (36,417)

      Operating lease liabilities, current and non-current

      (22,800)

       

      (10,792)

      Other non-current liabilities

      452

       

      31

      Net cash used in operating activities

      (295,500)

       

      (252,198)

      Cash flows from investing activities:

           

      Purchases of property and equipment

      (40,801)

       

      (52,271)

      Deconsolidation of subsidiaries - cash

      (42,980)

       

      (55,721)

      Business acquisitions, net of cash acquired

      —

       

      82,367

      Asset acquisitions, net of cash acquired

      —

       

      (7,639)

      Purchases of notes receivable

      (350)

       

      (40,000)

      Proceeds from notes receivable

      —

       

      10,000

      Purchase of investment in equity securities

      —

       

      (3,691)

      Proceeds from sale of equipment

      4,428

       

      —

      Other

      (990)

       

      (439)

      Net cash used in investing activities

      (80,693)

       

      (67,394)

      Cash flows from financing activities:

           

      Proceeds from exercise of stock options

      93

       

      240

      Taxes paid related to net share settlement of equity awards

      (23)

       

      (981)

      Principal payments on finance/capital leases and lease financing obligation

      (1,295)

       

      (1,237)

      Proceeds from public offering, net of issuance costs

      —

       

      99,303

      Contingent consideration payment

      (1,411)

       

      (521)

      Payment of equity issuance costs

      (580)

       

      (1,467)

      Net cash (used in) provided by financing activities

      (3,216)

       

      95,337

      Effect of foreign exchange rates on cash and cash equivalents

      (588)

       

      908

      Net decrease in cash, cash equivalents and restricted cash

      (379,997)

       

      (223,347)

             

      Cash and cash equivalents, beginning of period

      1,315,792

       

      1,550,004

      Restricted cash, beginning of period

      53,789

       

      42,924

      Cash, cash equivalents and restricted cash, beginning of period

      1,369,581

       

      1,592,928

             

      Cash and cash equivalents, end of period

      944,073

       

      1,315,792

      Restricted cash, end of period

      45,511

       

      53,789

      Cash, cash equivalents and restricted cash, end of period

      $         989,584

       

      $      1,369,581

      Ginkgo Bioworks Holdings, Inc.

      Selected Non-GAAP Financial Measures

      (in thousands, unaudited)

       
       

      Three Months Ended December 31,

       

      Year Ended December 31,

      (in thousands)

      2023

      2022

       

      2023

      2022

      Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders

      $      (211,694)

      $      (175,468)

       

      $       (892,869)

      $    (2,104,929)

      Interest income

      (13,226)

      (11,412)

       

      (57,217)

      (20,262)

      Interest expense

      15

      77

       

      93

      106

      Income tax benefit

      (198)

      (14,770)

       

      (71)

      (15,027)

      Depreciation and amortization

      12,837

      15,667

       

      70,507

      42,552

      EBITDA

      (212,266)

      (185,906)

       

      (879,557)

      (2,097,560)

      Stock-based compensation (1)

      43,584

      111,230

       

      234,908

      1,940,920

      Impairment of long-lived assets (2)

      —

      —

       

      121,404

      —

      Merger and acquisition related expenses (3)

      23,663

      26,045

       

      70,771

      46,229

      Loss on investments

      10,012

      13,354

       

      54,827

      53,335

      Loss (gain) on deconsolidation of subsidiaries

      42,502

      —

       

      42,502

      (31,889)

      Loss on equity method investments (4)

      1,119

      (7,612)

       

      2,635

      45,315

      Change in fair value of warrant liabilities

      (6,555)

      (28,871)

       

      (5,168)

      (124,970)

      Change in fair value of notes receivable

      2,174

      (3,924)

       

      2,295

      (4,153)

      Adjusted EBITDA

      $        (95,767)

      $        (75,684)

       

      $       (355,383)

      $       (172,773)

         

      (1)

      For the years ended December 31, 2023 and 2022, includes $5.0 million and $10.3 million, respectively, in related employer payroll taxes.

      (2)

      For the year ended December 31, 2023, includes $25.2 million impairment loss on lab equipment and $96.2 million impairment loss on a right-of-use asset and the related leasehold improvements associated with an exited Zymergen leased facility.

      (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, (iv) acquired intangible assets expensed as in-process research and development, and (v) costs associated with the Zymergen Bankruptcy, as well as securities litigation costs, net of insurance recovery.

      (4)

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

      Ginkgo Bioworks Holdings, Inc.

      Segment Information

      (in thousands, unaudited)

       
       

      Three Months Ended December 31,

       

      Year Ended December 31,

       

      2023

      2022

       

      2023

      2022

      Revenue:

               

      Cell Engineering

      $            26,976

      $         53,257

       

      $       143,531

      $       143,666

      Biosecurity

      7,779

      45,028

       

      107,924

      334,040

      Total revenue

      34,755

      98,285

       

      251,455

      477,706

      Segment cost of revenue:

               

      Biosecurity

      6,611

      30,218

       

      54,005

      204,216

      Segment research and development expense:

               

      Cell Engineering

      77,999

      95,408

       

      353,493

      273,356

      Biosecurity

      191

      590

       

      1,599

      1,937

      Total segment research and development expense

      78,190

      95,998

       

      355,092

      275,293

      Segment general and administrative expense:

               

      Cell Engineering

      60,047

      63,686

       

      215,263

      168,586

      Biosecurity

      12,652

      13,670

       

      55,514

      56,353

      Total segment general and administrative expense

      72,699

      77,356

       

      270,777

      224,939

      Segment operating (loss) income:

               

      Cell Engineering

      (111,070)

      (105,837)

       

      (425,225)

      (298,276)

      Biosecurity

      (11,675)

      550

       

      (3,194)

      71,534

      Total segment operating loss

      (122,745)

      (105,287)

       

      (428,419)

      (226,742)

      Operating expenses not allocated to segments:

               

      Stock-based compensation (1)

      43,584

      111,230

       

      234,908

      1,940,920

      Impairment of long-lived assets

      —

      —

       

      121,404

      —

      Depreciation and amortization

      12,837

      15,667

       

      70,507

      42,552

      Change in fair value of contingent consideration liability

      (1,049)

      (1,320)

       

      9,168

      (1,262)

      Loss from operations

      $        (178,117)

      $     (230,864)

       

      $     (864,406)

      $  (2,208,952)

         

      (1)

      Includes $5.0 million and $10.3 million in related employer payroll taxes for the years ended December 31, 2023 and 2022, respectively.

      SOURCE Ginkgo Bioworks

      Modal title

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