Ginkgo Bioworks (US:DNA)2022-03-29 04:11Financial Data and Key Metrics Changes - Total revenue in Q4 2021 increased to $148 million, representing growth of over 4x compared to Q4 2020. For the full year 2021, total revenue grew to $314 million, also 4x the prior year [10] - Adjusted EBITDA in Q4 was positive $1 million, while for the full year 2021 it was negative $106 million, impacted by noncash expenses [20] - CapEx for the full year 2021 was $57 million, reflecting investments in foundry capacity and capabilities [21] Business Line Data and Key Metrics Changes - Foundry revenue increased to $34 million in Q4 2021 from $16 million in Q4 2020, representing 108% growth. For the full year 2021, foundry revenue increased to $113 million, exceeding the outlook of $100 million and representing growth of 91% over the previous year [13] - The company added 10 new cell programs to the foundry platform in Q4 2021, bringing the total for the year to 31, which is a 72% increase from 2020 [11] - Biosecurity revenue reached $114 million in Q4 2021, bringing the full year revenue to $201 million, significantly exceeding the previous outlook of $110 million [16] Market Data and Key Metrics Changes - The Biosecurity initiative has scaled tremendously, growing from almost nothing in 2020 to over $200 million in revenue in 2021, driven primarily by K-12 pool testing [6][16] - The company supported a total of 71 active programs across 33 customers in 2021, with strong growth coming from pharma and biotech sectors [12] Company Strategy and Development Direction - The company aims to add an incremental 60 new cell programs in 2022, targeting total revenue of $325 million to $340 million, with foundry revenue expected to be between $165 million and $180 million [26] - Ginkgo is focused on maintaining a strong cash position, ending 2021 with $1.5 billion in cash, which provides a significant runway for growth [34] - The company is committed to a horizontal platform strategy in biotech, aiming to diversify its customer base across various sectors to mitigate risks [35][58] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging market environment for growth companies, with Ginkgo's stock down over 60% since going public, but emphasized the company's strong position and growth potential [5][31] - The management expressed excitement about the potential of synthetic biology and the company's ability to scale its operations effectively [63][64] - There is recognition of the unpredictability of biology and the longer development cycles in biotech, which may pressure valuations in the near term [54] Other Important Information - The company experienced a significant increase in stock-based compensation expense due to modifications in vesting terms, resulting in a one-time catch-up adjustment of approximately $1.5 billion in Q4 2021 [23][25] - The management is cautious about the future of the Biosecurity market, acknowledging uncertainties in funding and demand as the pandemic situation evolves [18][60] Q&A Session Summary Question: What is the outlook for Biosecurity revenue? - Management expects Biosecurity revenue to be at least $160 million for full year 2022, but acknowledges significant uncertainty in the market [27] Question: How does Ginkgo plan to manage cash flow in the current environment? - The company plans to manage its cash balance carefully, considering objectives such as adding new programs and improving operational efficiency [29] Question: What are the key challenges Ginkgo faces in achieving scale? - Management highlighted the unpredictability of biology, the need for significant automation, and the importance of maintaining a diverse customer base as key challenges [41][51]