Ginkgo Bioworks 3Q22 Digest

Update on the Short Thesis

Disclaimer: The calculations herein have not been reviewed by anyone and some of them are just high level approximations. Please don’t rely on this information for your investment decisions. I am not providing financial advice with this newsletter. This is simply me trying to figure out this company and inviting you to join me in this journey. Feedback is always welcome in case you have comments, questions or additional context.

On November 14, 2022, DNA 0.00%↑ reported their 3Q22 earnings. In this article, I will contextualize their results in terms of my overall view on the stock and where I see the fair value at this point. I had done something similar as a Twitter thread after 2Q22:

Fallacy Alarm @fallacyalarm

1/Yesterday, $DNA reported their 1H22 earnings. Revenue +257% vs. prior year. What a fabulous first half of 2022 it was! Or was it? Join me for a journey into the financials of a company that creates something from nothing. The emperor is nude. 🧵

Company background

Ginkgo Bioworks was founded in 2009 by MIT scientists based on the mission to find industrial applications for the genetic engineering of microbes. I have written about them in my Amyris articles, most notably here:

Tree Wars - Comparing Amyris' vs. Ginkgo's SynBio platforms

Revenue cycle in full swing

I have explained the Ginkgo revenue cycle in detail in the article above. Just giving a short summary here to refresh your memory: