Ginkgo Bioworks (US:DNA)2022-05-17 02:32Financial Data and Key Metrics Changes - Total revenue in Q1 2022 increased to $168 million, representing growth of nearly 4 times compared to Q1 2021 [14] - Adjusted EBITDA in Q1 2022 was negative $2 million, an improvement from negative $51 million in the comparable prior year period [26] - The company ended the quarter with approximately $1.5 billion in cash, providing a strong financial foundation for future growth [11][34] Business Line Data and Key Metrics Changes - The Foundry business added 11 new cell programs in Q1 2022, supporting a total of 64 active programs across 32 customers [15][16] - Foundry revenue was $21 million in Q1 2022, a decrease of 5% compared to Q1 2021, impacted by the timing of downstream value share and a shift in program mix [16][17] - Biosecurity revenue from the Concentric offering generated $147 million in Q1 2022, driven primarily by K-12 pooled testing due to the Omicron variant [21][22] Market Data and Key Metrics Changes - Related party revenue represented 63% of Foundry revenue in Q1 2022, up from 56% in Q1 2021, indicating a shift in revenue timing [19][20] - Biosecurity gross margin was 42% in Q1 2022, consistent with the prior quarter [22] Company Strategy and Development Direction - The company aims to maintain a strong cash margin of safety while adding new programs from diverse markets and customers [34] - A strategic focus on M&A activities is emphasized, with the recent acquisition of FGen and a collaboration with Bayer in agricultural biologicals [12][49] - The company is positioning itself as a platform provider for engineered cells across various industries, including agriculture and biosecurity [48][66] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges of operating in a difficult market environment but emphasizes the importance of maintaining a strong cash position to support long-term growth [36][71] - The company expects to add 16 new cell programs in 2022 and has increased its full-year revenue guidance to $375 million to $390 million [29][31] - There remains significant uncertainty in the biosecurity market, particularly regarding funding and testing levels for the next fiscal school year [31] Other Important Information - The company is actively working on new opportunities in biosecurity, including international efforts [42] - The planned acquisition of Bayer's agricultural biologicals R&D facility is expected to enhance the company's capabilities in ag biologicals [63][66] Q&A Session Questions and Answers Question: Why was Foundry revenue light this quarter despite adding new clients? - Management explained that Foundry revenue can be lumpy due to the timing of downstream value share, which is dependent on customer activities [76][77] Question: Are you lowering upfront fees for higher backend economics? - Management clarified that the revenue mix and timing of contracts can lead to fluctuations, but they have reiterated their full-year guidance [77][78]