Boston, Massachusetts, USA
November 14, 2022

• 15 new Cell Programs added and $66 million of Total revenue in Q3 2022
• Closed four acquisitions in October, including Zymergen and Bayer's West Sacramento agricultural biologicals capabilities, enabling commencement of integration and pursuit of new growth opportunities
• End of quarter cash balance of over $1.3 billion provides continued financial flexibility

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, 2022. 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.

"I'm very excited about the strategic progress we have made at Ginkgo, highlighted by the four acquisitions we completed in October, and I'm thrilled to welcome our new team members. I believe these additions will meaningfully strengthen our platform and services," said Jason Kelly, co-founder and CEO of Ginkgo. "Our team worked extremely hard to close both the Zymergen and Bayer transactions efficiently, with the Zymergen transaction in particular closing well in advance of our initial expectations. The faster Zymergen closing timeline provides us with significant strategic benefits, including a higher acquired cash balance and the ability to immediately focus Zymergen's outstanding team and assets on Ginkgo's core service offering. Successful M&A execution illustrates our ability to take advantage of opportunities catalyzed by the current market environment, while our strong standalone cash balance of over $1.3 billion at the end of the third quarter continues to afford us substantial flexibility."

Recent Business Highlights & Strategic Positioning

• Generated Foundry revenue of $25 million in Q3 2022
• Added 15 new Cell Programs to the Foundry platform in Q3 2022, representing 50% growth over the comparable prior year period
  • Continued traction in pharma and biotech, including a collaboration with Merck to engineer enzymes for use as biocatalysts in Merck's active pharmaceutical ingredient (API) manufacturing efforts
• Concentric by Ginkgo, Ginkgo's biosecurity and public health offering, executed well in Q3 2022, generating $42 million in Biosecurity revenue
  • Expanded internationally, including Memoranda of Understanding with the Rwanda Development Board and the Ministry of Investment of Saudi Arabia
  • Added enhanced analytic modules, including epidemiological tracking, modeling, and forecasting capabilities, and announced computational tools to detect engineered biology in collaboration with the Intelligence Advanced Research Projects Activity (IARPA)
  • Continuing to pilot new modalities and offerings, including passive monitoring of wastewater and air
• Completed acquisitions of Zymergen and Bayer's West Sacramento Biologics Research & Development site in October
  • The swift closing of the Zymergen transaction delivers more cash at close and enables Ginkgo to commence integration activities and pursue new growth opportunities faster than originally anticipated
• Also in October, acquired Altar, which has developed a robust adaptive laboratory evolution (ALE) platform, and Circularis, a proprietary circular RNA and promoter screening platform

Third Quarter 2022 Financial Highlights

• Third quarter 2022 Total revenue of $66 million, down from $78 million in the comparable prior year period, a decrease of 14%
  • Third quarter 2022 Foundry revenue of $25 million, down from $35 million in the comparable prior year period, a decrease of 29%. Third quarter 2022 Foundry revenue did not include any large milestone payments, while the third quarter 2021 Foundry revenue included downstream value share revenue related to an equity milestone achievement by Cronos Group Inc.
  • Third quarter 2022 Biosecurity revenue of $42 million, down from $43 million in the comparable prior year period, a decrease of 3%. Third quarter 2022 Biosecurity gross profit margin of 41%
• Third quarter 2022 Loss from operations of $(653) million (inclusive of stock-based compensation expense of $563 million), compared to Loss from operations of $(27) million in the comparable prior year period. The stock-based compensation expense primarily relates to the continued GAAP accounting for the modification of restricted stock units issued prior to becoming a public company, as disclosed in our annual report on Form 10-K filed with the SEC on March 29, 2022
• Third quarter 2022 Adjusted EBITDA of $(70) million, down from $(18) million in the comparable prior year period
• Cash and cash equivalents balance as of the end of the third quarter of over $1.3 billion puts Ginkgo in a strong financial position to pursue its strategic objectives

Full Year 2022 Guidance

• Ginkgo expects to add 55-60 new Cell Programs to the Foundry platform in 2022
• Ginkgo further revised its expectation for Total revenue from $425 – $440 million to $460 – $480 million in 2022
• Ginkgo revised its expectation for Foundry revenue to $150 – $170 million in 2022, which reflects our current assumptions and uncertainty regarding the timing of certain discrete milestone payments
• While Biosecurity remains an uncertain business, based on strong year-to-date performance Ginkgo now expects Biosecurity revenue in 2022 of at least $310 million

Website: http://www.ginkgobioworks.com.

Published: November 16, 2022