What happened
Shares of Ginkgo Bioworks (DNA -8.05%) were jumping 18.2% higher as of 10:58 a.m. ET. The nice gain came after the company announced its 2021 fourth-quarter and full-year results.
Ginkgo reported total revenue in the fourth quarter of $148 million, a 363% year-over-year increase. The consensus Wall Street estimate was for Q4 revenue of $83.8 million. The company posted a net loss in the fourth quarter of $1.6 billion, or $1.10 per diluted share. The average analysts' estimate was for a net loss of $0.04 per share.
The cell programming company also provided revenue guidance for full-year 2022 of between $325 million and $340 million. The midpoint of this range reflects an increase of nearly 6% year over year. It's also well above the consensus estimate of $305.8 million.
So what
It's obvious from the solid gain for the biotech stock today that investors are prioritizing revenue performance above Ginkgo's bottom line. That makes sense at this stage for the company. Ginkgo is rightly focused primarily on growth while working toward eventual profitability.
The company is in a strong financial position to pursue this strategy. Ginkgo's cash stockpile stood at more than $1.5 billion at the end of 2021.
Image source: Getty Images.
Now what
Ginkgo thinks it will add 60 new cell programs in 2022 to its biological factories that are part of its Foundry platform. Unsurprisingly, Foundry platform revenue is expected to make up more than half of total revenue this year.
The rest of Ginkgo's revenue will come from its biosecurity products and services, especially its SARS-CoV-2 monitoring program. The company acknowledged that biosecurity "remains an uncertain business." Ginkgo's ability to deliver on its 2022 guidance could hinge on what happens with COVID-19.
