Press Releases

We lead the synthetic biology industry, having developed and successfully commercialized the most Lab-to-Market™ ingredients. Our sustainable ingredients are used in thousands of top global brands, including our own family of consumer brands in Clean Beauty and Health markets.

AMYRIS, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2022 FINANCIAL RESULTS
  • Fourth quarter Consumer revenue of $52.8 million increased 64% over the prior year and was another record quarter. Core revenue of $75.8 million grew 17% over the prior year
  • Full year Consumer revenue of $176.9 million increased 92% and outperformed prestige beauty industry growth of 15%. Core revenue of $269.8 million grew 44% over prior year
  • Use of cash for operating and investing activities sequentially improved each quarter; Q4 2022 down $102 million versus Q1 2022
  • Actions taken to simplify portfolio, streamline management structure and deliver efficiencies

EMERYVILLE, Calif., March 15, 2023 /PRNewswire/ -- Amyris, Inc. (Nasdaq: AMRS), a leading synthetic biotechnology company accelerating the world's transition to sustainable consumption through its Lab-to-MarketTM technology platform and clean beauty consumer brands, today announced financial results for the fourth quarter and full year ended December 31, 2022.

Q4 2022 Core revenue of $75.8 million grew 17% versus the prior year quarter driven by record Consumer revenue of $52.8 million, a 64% year-over-year increase for the quarter and 92% for the full year 2022. Amyris' consumer brands continued their robust growth trajectory, outperforming prestige beauty industry growth of 15% according to NPD Group. Their year-end report confirms that every category in prestige beauty posted double-digit gains in 2022, with skin care, hair care, and color cosmetics growing 12%, 22%, and 18%, respectively. Amyris' brands delivered 44%, 744%, and 145% growth, respectively, in these categories.

"We have focused our brand leadership teams and are making differentiated portfolio choices placing our investment on attractive beauty categories such as skin care, hair care, color cosmetics, baby care and healthy aging with our flagship brands Biossance, JVN, Rose Inc., Pipette, Stripes and MenoLabs," commented John Melo, President and Chief Executive Officer. "We have grouped our other, more nascent, brands under one leader to achieve economies of scale. We also expanded our Technology Access partnerships by signing an agreement with Givaudan for beauty and personal care, similar to existing partnerships with DSM in flavor and fragrance and Ingredion in food and beverage. We are actively working on a partnership for human health."

"We continued to have access to the necessary capital to fund our operations," added Melo. "We secured $150 million in funding in the fourth quarter and communicated yesterday that we secured an additional $50 million to bridge us to the $200 million upfront cash payment from our strategic transaction, which is expected to close in the next 30-45 days following HSR review."

During 2022, Amyris reduced its use of cash for operating and investing activities sequentially each quarter from ($200) million in Q1 to ($189) million in Q2 to ($164) million in Q3 to ($97) million in Q4. The company also reduced its inventory holdings in Q4 and continues to build on these initial cost and cash improvements. Although management was not fully satisfied with the progress toward reducing operating expense, the company did substantially reduce the costs involved with inbound air shipping from Q3 to Q4 by $9.2 million or 72% and delayered its leadership structure effecting a $1.2 million initial restructuring charge.

"We have much more to do on our Fit-to-Win agenda and are committed to delivering quarter-by-quarter improvements in profitability and cash generation from operations. We continue to be well-positioned to execute our Lab-to-Market strategy. We own the underlying science, we are the long-term producer at scale, we partner with leaders in their respective end-markets and bring some of the best performing clean beauty, health and wellness products to consumers with our family of leading prestige brands. To fully leverage our assets and drive enterprise value, we are focused on efficiency, lowering our cost and significantly simplifying our portfolio. We expect these actions to meet our objective of ending 2023 as a self-sufficient enterprise," concluded Melo.

Revenue













Three Months Ended
December 31,


Year Ended
December 31,



(In thousands)

2022

2021

%
Change


2022

2021

%
Change



(Unaudited)




















Consumer

$52,839

$32,155

64 %


$176,918

$  91,989

92 %



Technology Access

22,963

32,621

(30 %)


92,929

96,029

(3 %)













Core revenue1

75,802

64,776

17 %


269,847

188,018

44 %













Strategic Transactions & Other2

-

-

n/a


-

153,799

(100 %)













Total Reported Revenue

$75,802

$64,776

17 %


$269,847

$341,817

(21 %)













1 Core revenue comprises Consumer and Technology Access revenue. Technology Access includes ingredient product revenue,  R&D collaboration, and technology licenses. Core revenue excludes strategic transactions and other. Totals may not foot due to rounding.


2 Strategic Transactions & Other includes $143.6 million Flavors & Fragrances transaction (Q1 2021); $0.2 million discontinued ingredients value share (Q1 2021); and $10.0 million RebM transaction (Q2 2021)

Q4 2022 Financial Highlights

  • Core revenue of $75.8 million increased 17% compared to Q4 2021 Core revenue of $64.8 million. Excluding $13.0 million of Q4 2021 technology license revenue attributable to joint ventures, Core revenue increased by 46%. Q4 2022 Core revenue included Consumer revenue of $52.8 million, an increase of $20.7 million or 64% compared to Q4 2021 and the seventh consecutive quarter of record growth.
  • Consumer revenue growth was primarily driven by the Biossance®, JVNTM and MenoLabs® brands. Overall performance within the Company's clean beauty consumer portfolio outperformed the public peer group in year-over-year revenue growth. Direct-to-consumer sales grew 61% compared to Q4 2021, and retail sales through third party channels grew 66%. Biossance, Pipette®, JVN, and Rose Inc.® products were available in more than 14,000 physical locations compared to approximately 2,100 in 2021.
  • Technology Access revenue declined 30% compared to Q4 2021, primarily due to $13.0 million of Q4 2021 joint venture revenue. Ingredients product revenue decreased 12% to $14.3 million, reflecting temporary supply and working capital constraints, resulting in significant unfulfilled orders, as the business transitioned from higher cost toll manufacturing to lower cost internal sourcing from the new fermentation plant in Brazil. R&D collaboration revenue decreased 37% to $2.0 million.
  • Non-GAAP gross margin in Q4 2022 of $21.4 million (28% of revenue) decreased from $22.0 million (34% of revenue) in Q4 2021. Excluding the impact of technology license revenue in each period, non-GAAP gross margin increased from $9.0 million (17% of revenue) in Q4 2021 to $14.8 million (21% of revenue) in Q4 2022, reflecting Consumer revenue growth and margin expansion.
  • Non-GAAP cash operating expense of $148.3 million increased by $44.9 million compared to Q4 2021 due to increased headcount, consumer brand freight and fulfillment activities, and investments in consumer brands.
  • Adjusted EBITDA of ($156.8) million decreased $60.6 million, primarily due to higher operating expense.
  • Q4 2022 net loss was $149.8 million ($0.46 loss per diluted share) compared to net income of $37.8 million ($0.43 loss per diluted share) in Q4 2021. Non-cash mark-to-market adjustments related to changes in the fair value of debt and derivatives were $10.3 million favorable in Q4 2022 and $180.0 million favorable in Q4 2021. In addition, there was a favorable non-cash change in fair value of acquisition-related contingent consideration of $24.9 million in Q4 2022.
  • Total cash at the end of Q4 2022 was $70.6 million, compared to $24.6 million at the end of Q3 2022.

FY 2022 Financial Highlights

  • Core revenue of $269.8 million increased 44% compared to $188.0 million in 2021. Full year 2022 Core revenue included record Consumer revenue of $176.9 million, an increase of 92% compared to 2021, and Technology Access revenue of $92.9 million, a decrease of 3%. Total revenue of $269.8 million decreased 21% compared to 2021, which included $153.8 million from strategic transactions.
  • Non-GAAP gross margin was $105.1 million (39% of revenue) in 2022 and $227.0 million in 2021. Excluding $153.8 million of 2021 strategic transactions, non-GAAP gross margin in 2022 increased $31.9 million year over year.
  • Non-GAAP cash operating expense of $539.9 million increased by $238.5 million over the prior year, primarily due to increased headcount (both organic and from acquisitions) and investments in consumer brands.
  • Adjusted EBITDA was ($521.0) million in 2022 and ($107.1) million in 2021. Excluding $153.8 million of 2021 strategic transactions, Adjusted EBITDA in 2022 decreased $260.1 million, primarily due to increased operating expense and higher ingredients cost of goods sold for contract manufactured intermediate and finished product.
  • Net loss was $528.5 million ($1.69 loss per diluted share), compared to a net loss of $270.5 million ($0.97 loss per diluted share) in 2021. Non-cash mark-to-market adjustments related to changes in the fair value of debt and derivatives were $57.3 million favorable in 2022 and $37.2 million unfavorable in 2021. In addition, there was a favorable non-cash change in fair value of acquisition-related contingent consideration of $24.9 million in 2022 and an unfavorable loss upon extinguishment of debt of $32.5 million in 2021.

Q1 and 2023 Financial Outlook
Total revenue (Core revenue plus strategic transaction) is expected to grow 95-100% for full year 2023 compared to 2022. The strategic transaction with Givaudan is expected to generate $200 million of license revenue in the second quarter.

Core revenue (Consumer plus Technology Access revenue) is expected to follow approximate quarterly phasing of 15% of full year Core revenue expected in Q1, 25% expected in Q2, 27% expected in Q3, and 33% expected in Q4. Consumer brands are expected to continue to deliver industry leading growth in skin care, hair care, color cosmetics, baby care and healthy aging.

We are prioritizing delivering on our cash use targets from sequential quarterly improvements in our cost base, both cost of goods sold and operating expense. Our "Fit-to-Win" program is expected to deliver over $150 million of annualized cash cost improvements and working capital efficiencies.

Capital expenditure is estimated at $55 million, 50% lower than 2022. No M&A activities are contemplated.

Conference Call
Amyris will host a conference call today at 4:30 pm ET (1:30 pm PT) to discuss its Q4 and full year 2022 financial results and provide a business and financial update.

Live audio webcast/conference call:

Webcast: please visit http://investors.amyris.com.
U.S. Dial-In Number: (844) 850-0551. International Dial-In Number: (412) 902-4203.

Please connect to the website or dial in to the conference call 15 minutes prior to the start of the call to avoid connection delays. If a participant will be listen-only, they are encouraged to listen via the webcast on Amyris' investor page.

A replay of the webcast will be available on the Investor Relations section of Amyris' website.

FINANCIAL RESULTS AND NON-GAAP INFORMATION

To supplement our financial results and guidance presented in accordance with U.S. generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures that we believe are helpful in understanding our financial results. These non-GAAP financial measures are among the factors management uses in planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Amyris' historical performance as well as comparisons to the operating results of other companies. Management believes these non-GAAP financial measures, when considered together with financial information prepared in accordance with GAAP, can enhance investors' and analysts' abilities to meaningfully compare our results from period to period, identify operating trends in our business, and track and model our financial performance. In addition, our management believes that these non-GAAP financial measures allow for greater transparency into the indicators used by management to understand and evaluate our business and make operating decisions.

Non-GAAP financial information is not prepared under a comprehensive set of accounting rules, and therefore, should only be read in conjunction with financial information reported under GAAP in order to understand Amyris' operating performance. A reconciliation of the non-GAAP financial measures presented in this release to the most directly comparable GAAP financial measure, is provided in the tables attached to this press release.

Our Non-GAAP financial measures include the following:

Non-GAAP Gross Margin is calculated as GAAP revenue less non-GAAP cost of products sold. Non-GAAP cost of products sold excludes other costs and provisions, inventory lower of cost or net realizable value adjustments, inventory write-offs, excess capacity, manufacturing capacity fee adjustments, stock-based compensation expense, depreciation and amortization.

Non-GAAP Cash Operating Expense is calculated as GAAP Operating Expense minus stock-based compensation, depreciation, amortization, M&A transaction expense, contract credit loss reserve, R&D performance agreement termination, gain from change in fair value of acquisition-related contingent consideration, restructuring, and impairment.

EBITDA is calculated as GAAP net income (loss) less interest, expense, income taxes, depreciation, amortization, and loss allocated to participating securities.

Adjusted EBITDA is calculated as EBITDA less income/loss attributable to noncontrolling interest, gain/loss from change in fair value of derivatives, gain/loss from changes in the fair value of debt, gain/loss upon debt extinguishment, other income/expense, loss from investment in affiliate, inventory lower of cost or net realizable value adjustments, inventory write-offs, M&A transaction expense, stock-based compensation expense, R&D performance agreement termination, manufacturing capacity fee adjustment, contract asset credit loss reserve, gain from change in fair value of acquisition-related contingent consideration, restructuring, and impairment.

About Amyris
Amyris (Nasdaq: AMRS) is a leading synthetic biotechnology company, transitioning the Clean Health & Beauty and Flavors & Fragrances markets to sustainable ingredients through fermentation and the company's proprietary Lab-to-MarketTM technology platform. This Amyris platform leverages state-of-the-art machine learning, robotics and artificial intelligence, enabling the company to rapidly bring new innovation to market at commercial scale. Amyris ingredients are included in over 20,000 products from the world's top brands, reaching more than 300 million consumers. Amyris also owns and operates a family of consumer brands that is constantly evolving to meet the growing demand for sustainable, effective and accessible products. For more information, please visit http://www.amyris.com

Amyris, the Amyris logo, Biossance, JVN, Lab-to-Market, MenoLabs, Pipette, Rose Inc. and Stripes are trademarks or registered trademarks of Amyris, Inc. or its subsidiaries in the U.S. and/or other countries.

Forward-Looking Statements
This release contains forward-looking statements, and any statements other than statements of historical fact could be deemed to be forward-looking statements. These forward-looking statements include, among other things, statements regarding future events, such as Amyris' financial outlook for 2023; Amyris' 2023 goals, including cost reduction initiatives, growth, profitability and other financial and business goals, such as securing a partnership in the human health category; and Amyris' expectations regarding the closing of its strategic transaction and the timing thereof. These statements are based on management's current expectations and actual results and future events may differ materially due to risks and uncertainties, including risks related to Amyris' liquidity and ability to fund operating and capital expenses, risks related to its financing activities, risks related to potential delays or failures in completing and integrating planned acquisitions, risks related to potential delays or failures in development, regulatory approval, launch, production and commercialization of products, risks related to global economic trends, inflation and policy measures undertaken to address inflation, the COVID-19 pandemic and any other geopolitical events, including the Ukraine conflict, resulting in global economic, financial and supply chain disruptions that may negatively impact Amyris' business operations and financial results or cause market volatility, risks related to Amyris' reliance on third parties particularly in the supply chain, and other risks detailed from time to time in filings Amyris makes with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Amyris disclaims any obligation to update information contained in these forward-looking statements, whether as a result of new information, future events, or otherwise.

Financial Tables Follow

 

Amyris, Inc. 



CONSOLIDATED BALANCE SHEETS



(In thousands

December 31,
2022
(Unaudited)

December 31,
2021

Assets



Current assets:



Cash and cash equivalents

$           64,437

$   483,462

Restricted cash

71

199

Accounts receivable, net

45,775

37,074

Accounts receivable - related party, net

6,608

5,667

Contract assets

806

4,227

Contract assets - related party

36,638

-

Inventories

111,880

75,070

Prepaid expenses and other current assets

40,146

33,513

Total current assets

306,361

639,212

Property, plant and equipment, net

182,224

72,835

Restricted cash, noncurrent

6,090

4,651

Recoverable taxes from Brazilian government entities

29,472

16,740

Right-of-use assets under financing leases, net

152

7,342

Right-of-use assets under operating leases, net

97,216

32,428

Goodwill

142,575

131,259

Intangible assets, net

46,938

39,265

Other assets

13,904

10,566

Total assets

$         824,932

$   954,298

Liabilities, Mezzanine Equity and Stockholders' (Deficit) Equity



Current liabilities:



Accounts payable

$         190,486

$     79,666

Accrued and other current liabilities

73,565

71,457

Financing lease liabilities

13

140

Operating lease liabilities

2,255

7,689

Contract liabilities

26

2,530

Debt, current portion

1,916

896

Related party debt, current portion

118,886

107,427

Total current liabilities

387,147

269,805

Long-term debt, net of current portion

674,891

309,061

Related party debt, net of current portion

97,350

-

Financing lease liabilities, net of current portion

48

61

Operating lease liabilities, net of current portion

86,195

19,829

Derivative liabilities

5,403

7,062

Acquisition-related contingent consideration

34,555

64,762

Other noncurrent liabilities

7,053

4,510

Total liabilities

1,292,642

675,090

Commitments and contingencies



Mezzanine equity:



Contingently redeemable common stock

5,000

5,000

Contingently redeemable noncontrolling interest

28,892

28,520

Stockholders' (deficit) equity:



Common stock

36

31

Additional paid-in capital

2,455,567

2,656,838

Accumulated other comprehensive loss

(64,114)

(52,769)

Accumulated deficit

(2,880,178)

(2,357,661)

Total Amyris, Inc. stockholders' (deficit) equity

(488,689)

246,439

Noncontrolling interest

(12,913)

(751)

Total stockholders' (deficit) equity

(501,602)

245,688

Total liabilities, mezzanine equity and stockholders' (deficit) equity

$         824,932

$   954,298

 

Amyris, Inc. 






CONSOLIDATED STATEMENTS OF OPERATIONS
(Three-month periods, year ended December 31, 2022, are unaudited)







Three Months Ended 


Year Ended


December 31,


December 31,

(In thousands, except shares and per share amounts)

2022

2021


2022

2021

Revenue:






Renewable products

$        65,905

$        47,844


$      222,323

$      149,703

Licenses and royalties

6,554

13,006


32,434

173,812

Collaborations, grants and other

3,343

3,926


15,090

18,302

Total revenue

75,802

64,776


269,847

341,817

Cost and operating expenses:






Cost of products sold

87,925

61,807


258,668

155,139

Research and development

28,966

24,709


110,215

94,289

Sales, general and administrative

135,417

94,914


493,629

257,811

Change in fair value of acquisition-related contingent consideration

(24,874)

-


(24,874)

-

Restructuring

1,192

-


1,192

-

Impairment

-

12,204


-

12,204

Total cost and operating expenses

228,626

193,634


838,830

519,443

Loss from operations

(152,824)

(128,858)


(568,983)

(177,626)

Other income (expense):






Interest expense

(7,877)

(10,748)


(24,733)

(25,605)

Gain from change in fair value of derivative instruments

146

14,279


3,905

1,453

Gain (loss) from change in fair value of debt

10,179

165,710


53,400

(38,649)

Loss upon extinguishment of debt

-

(5,406)


-

(32,464)

Other (expense) income, net

(1,630)

540


(2,214)

580

Total other income (expense), net

818

164,375


30,358

(94,685)

(Loss) income before income taxes and loss from investment in affiliate

(152,006)

35,517


(538,625)

(272,311)

Benefit from income taxes

1,344

8,284


2,697

8,114

Loss from investment in affiliate

(934)

(7,028)


(7,443)

(7,595)

Net (loss) income

(151,596)

36,773


(543,371)

(271,792)

Loss attributable to noncontrolling interest

1,799

1,072


14,861

823

Net (loss) income attributable to Amyris, Inc.

(149,797)

37,845


(528,510)

(270,969)

Loss allocated to participating securities

-

-


-

507

Net (loss) income attributable to Amyris, Inc. common stockholders

$    (149,797)

$        37,845


$    (528,510)

$    (270,462)







Weighted-average shares of common stock outstanding used in computing (loss) income per share of common stock, basic

327,731,297

308,438,591


320,752,600

292,343,431

(Loss) income per share attributable to common stockholders, basic

$          (0.46)

$            0.12


$          (1.65)

$          (0.93)







Weighted-average shares of common stock outstanding used in computing loss per share of common stock, diluted

348,102,243

326,405,153


339,333,994

292,667,631

Loss per share attributable to common stockholders, diluted

$          (0.46)

$          (0.43)


$          (1.69)

$          (0.97)

 

Amyris, Inc. 






RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(Unaudited)







Three Months Ended


Year Ended


December 31,


December 31,


2022

2021


2022

2021

Net (loss) income attributable to Amyris, Inc. common stockholders

$    (149,797)

$        37,845


$    (528,510)

$    (270,462)

Interest expense

7,877

10,748


24,733

25,605

Income taxes

(1,344)

(8,284)


(2,697)

(8,114)

Depreciation and amortization

5,377

2,720


16,815

9,726

Loss allocated to participating securities

-

-


-

(507)

EBITDA

(137,887)

43,029


(489,659)

(243,752)

Inventory lower-of-cost-or-net realizable value adjustment

(2,304)

1,091


(3,314)

(92)

Inventory write-off

3,882

2,644


3,788

3,894

Change in fair value of acquisition-related contingent consideration

(24,874)

-


(24,874)

-

Restructuring

1,192

-


1,192

-

Impairment

-

12,204


-

12,204

Manufacturing capacity fee adjustment

-

-


2,956

1,482

R&D Performance Agreement termination

-

-


-

1,850

M&A transaction expense

512

2,558


2,666

8,081

Stock-based compensation expense

12,220

11,461


48,764

33,393

Gain from change in fair value of derivative instruments

(146)

(14,279)


(3,905)

(1,453)

Gain (loss) from change in fair value of debt

(10,179)

(165,710)


(53,400)

38,649

Loss upon extinguishment of debt

-

5,406


-

32,464

Other (expense) income, net

1,630

(540)


2,214

(580)

Loss from investment in affiliate

934

7,028


7,443

7,595

Loss attributable to noncontrolling interest

(1,799)

(1,072)


(14,861)

(823)

Adjusted EBITDA

$    (156,819

$      (96,180)


$    (520,990)

$    (107,088)

 

Amyris, Inc. 






RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(Unaudited)







Three Months Ended
December 31,


Year Ended
December 31,

(In thousands)

2022

2021


2022

2021

NON-GAAP GROSS MARGIN






Revenue






Renewable products

$   65,905

$   47,844


$ 222,323

$ 149,703

Licenses and royalties

6,554

13,006


32,434

173,812

Collaborations, grants and other

3,343

3,926


15,090

18,302

Total revenue

$   75,802

$   64,776


$ 269,847

$ 341,817







Cost of products sold

$   87,925

$   61,807


$ 258,668

$ 155,139

Other costs and provisions

(28,212)

(14,912)


(82,411)

(31,035)

Excess capacity

(1,637)

244


(3,744)

(1,555)

Manufacturing capacity fee adjustment

-

-


(2,956)

(1,482)

Inventory write-off

(3,882)

(2,644)


(3,788)

(3,894)

Inventory lower-of-cost-or-net realizable value adjustment

2,304

(1,091)


3,314

92

Stock-based compensation expense

(69)

(80)


(307)

(295)

Depreciation and amortization

(1,983)

(501)


(4,013)

(2,118)


$   54,446

$   42,823


$ 164,763

$ 114,852







Non-GAAP gross margin

$   21,356

$   21,953


$ 105,084

$ 226,965

Non-GAAP gross margin %

28 %

34 %


39 %

66 %







NON-GAAP CASH OPERATING EXPENSE






Research and development expense

$   28,966

$   24,709


$ 110,215

$   94,289

Sales, general and administrative expense

135,417

94,914


493,629

257,811


164,383

119,623


603,844

352,100

Stock-based compensation expense

(12,151)

(11,381)


(48,457)

(33,098)

Depreciation and amortization

(3,394)

(2,220)


(12,802)

(7,608)

R&D performance agreement termination

-

-


-

(1,850)

M&A transaction expense

(512)

(2,558)


(2,666)

(8,081)

Non-GAAP cash operating expense

$ 148,326

$ 103,464


$ 539,919

$ 301,463

 

SOURCE Amyris, Inc.

For further information: Investors: Argot Partners, Jason Finkelstein, amyris@argotpartners.com, +1 (212) 600-1902; Media: Amyris, Inc., Lauren White, lwhite@amyris.com, +1 (202) 320-8677
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