Ginkgo Bioworks Holdings, Inc. · NYSE:DNA
Ginkgo Bioworks — Q2 2024 Earnings Presentation
44 slides from Ginkgo Bioworks's earnings presentation, Aug 8, 2024
Slide 1: Q2 2024 Update & Business Review
August 8, 2024 Q2 2024 Update Grow with Ginkgo & Business Review Q1 2024 UPDATE & BUSINESS REVIEW Property of Ginkgo Bioworks — 1
Slide 2: Disclaimer
Disclaimer Property of Ginkgo Bioworks — 2 FORWARD-LOOKING STATEMENTS This presentation, the conference call and webcast contain contain certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our plans, strategies, including with respect
Slide 3: Agenda
Property of Ginkgo Bioworks — 3 Introduction Jason Kelly, Co-Founder and CEO Q2 2024 Financial Update Mark Dmytruk, CFO Agenda Q2 2024 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Megan LeDuc, Manager of Investor Relations
Slide 4: Our mission and objectives
Property of Ginkgo Bioworks — 4 OUR MISSION Make biology easier to engineer OBJECTIVES Reaching Adjusted EBITDA breakeven by the end of 2026 while maintaining a cash Q2 2024 UPDATE & BUSINESS REVIEW margin of safety Cutting costs while serving current customers Growing revenue in solutions and expan
Slide 5: Significant cost reductions planned over the next year
Reminder: Ginkgo plans significant cost reductions over the next Property of Ginkgo Bioworks — 5 year across all areas of the business ~$500M (1) Significantly consolidate by Q4 2024 by mid 2025 Space global footprint $100M $200M Reduction in labor target annualized run-rate target annualized run-rate
Slide 6: Reduction in force, ~35% headcount reduction
Executing on previously announced reduction in force resulting in Property of Ginkgo Bioworks — 6 ~35% headcount reduction 1 Over 300 positions impacted as of June 30, 2024 2 Anticipate ~100 positions to transition out by the end of 2024 Q2 2024 UPDATE & BUSINESS REVIEW 3 Total of 450+ reduction in
Slide 7: Agenda
Property of Ginkgo Bioworks — 7 Introduction Jason Kelly, Co-Founder and CEO Q2 2024 Financial Update Mark Dmytruk, CFO Agenda Q2 2024 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Megan LeDuc, Manager of Investor Relations
Slide 8: Cell Engineering Highlights
Cell Engineering Highlights (Unaudited) Property of Ginkgo Bioworks — 8 CELL ENGINEERING REVENUE ($M) CURRENT ACTIVE PROGRAMS TOTAL ACTIVE CUSTOMERS BY TYPE 33% 30% (20%) Government Pharma & Biotech Q2 2024 UPDATE & BUSINESS REVIEW Food & Agriculture Industrial & Environmental Consumer & Technology
Slide 9: New programs in the quarter
New programs in the quarter included opportunities with DVS as Property of Ginkgo Bioworks — 9 well as new LDaaS offerings NEW PROGRAMS YEAR TO DATE Other Customer Contracts (1) Q2 2024 UPDATE & BUSINESS REVIEW ● 2 LDaaS deals signed in the quarter with a large cap tech company in the protein charact
Slide 10: Biosecurity Highlights
Biosecurity Highlights Property of Ginkgo Bioworks — 10 (Unaudited) BIOSECURITY REVENUE ($M) Ginkgo HQ CUBE-D 20 North America 24 Europe 34 Asia Q2 2024 UPDATE & BUSINESS REVIEW 30 8 Africa South BIOSECURITY GROSS PROFIT MARGIN America 3 Oceania Countries in which Ginkgo has programs, pilots, or sig
Slide 11: Q2 2024 Financial Summary
Q2 2024 Financial Summary (Unaudited) Property of Ginkgo Bioworks — 11 Three Months Ended June 30, Six Months Ended June 30, In millions of USD except % YoY 2024 2023* % YoY 2024 2023* % YoY Revenue: Cell Engineering $ 36 $ 45 (20%) $ 64 $ 79 (19%) Biosecurity 20 35 (43%) 30 82 (63%) Total revenue 5
Slide 12: Reaffirming 2024 Full Year Outlook
Reaffirming 2024 Full Year Outlook Property of Ginkgo Bioworks — 12 HISTORICAL OUTLOOK In millions of USD FY2021 FY2022 FY2023 FY2024 Revenue Cell Engineering $113 $144 $144 $120-140 Services $86 $106 $139 $120-140 Downstream Value $27 $38 $4 Not provided Biosecurity $201 $334 $108 $50+ Q2 2024 UPDATE
Slide 13: Agenda
Property of Ginkgo Bioworks — 13 Introduction Jason Kelly, Co-Founder and CEO Q2 2024 Financial Update Mark Dmytruk, CFO Agenda Q2 2024 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Megan LeDuc, Manager of Investor Relations
Slide 14: We believe...
Property of Ginkgo Bioworks — 14 We believe… 1 2 3 Ginkgo is focused on Democratizing access to Biosecurity continues to consistent execution as it better tools to engineer see growth opportunities takes the necessary steps biology is important and as it tackles emerging to reach adjusted EBITDA Gin
Slide 15: We believe...
Property of Ginkgo Bioworks — 15 We believe… 1 2 3 Ginkgo is focused on Democratizing access to Biosecurity continues to consistent execution as it better tools to engineer see growth opportunities takes the necessary steps biology is important and as it tackles emerging to reach adjusted EBITDA Gin
Slide 16: Significant cost reductions planned over the next year
Reminder: Ginkgo plans significant cost reductions over the next Property of Ginkgo Bioworks — 16 year across all areas of the business ~$500M (1) Significantly consolidate by Q4 2024 by mid 2025 Space global footprint $100M $200M Reduction in labor target annualized run-rate target annualized run-rat
Slide 17: First wave of cost restructuring achieved through people cost actions
The first wave of cost restructuring has been achieved through Property of Ginkgo Bioworks — 17 People Cost actions while additional effort is underway for Non-People Cost 2024 2025 Total SPEND Annualized Savings Annualized Savings Annualized Savings Estimate CATEGORY Current Estimate (2) Current Esti
Slide 18: Non-people savings through systemic cost reduction
Non-people savings will be accomplished through systemic cost Property of Ginkgo Bioworks — 18 reduction measures across multiple spend categories ● Realize efficiencies among third party vendors and negotiate vendor agreements as necessary Third Party Costs ● Reduce contingent labor via process inter
Slide 19: Delivering for customers alongside cost cutting
Alongside our cost cutting Property of Ginkgo Bioworks — 19 initiatives, Ginkgo continues to deliver for its customers Ginkgo delivered on a major technical milestone for a large pharma customer Commenced four new ag deals in Q2, including a major deal with Syngenta aimed at accelerating the Q2 2024
Slide 20: We believe...
Property of Ginkgo Bioworks — 20 We believe… 1 2 3 Ginkgo is focused on Democratizing access to Biosecurity continues to consistent execution as it better tools to engineer see growth opportunities takes the necessary steps biology is important and as it tackles emerging to reach adjusted EBITDA Gin
Slide 21: Kit-based vs automation-based approach to lab data
Kit-based, small batch vs Automation-based, large batch approach Property of Ginkgo Bioworks — 21 to generating lab data provide different advantages Q2 2024 UPDATE & BUSINESS REVIEW ADVANTAGE ADVANTAGE Maximal flexibility to scientists, rapid onboarding of new Improvement with scale techniques, PhDs
Slide 22: Offering the platform directly to customer scientists
Property of Ginkgo Bioworks — 22 Head of R&D Customer Scientist Ginkgo will offer our platform directly to Scientific Solutions Tools customer scientists as Q2 2024 UPDATE & BUSINESS REVIEW Deliverable tools Ginkgo Platform
Slide 23: Cell engineering offerings from Solutions to Tools
Property of Ginkgo Bioworks — 23 Cell engineering offerings are on a continuum from “Solutions” to “Tools” Customization for Customer & Technical Risk borne by Ginkgo CELL ENGINEERING SOLUTIONS CELL ENGINEERING TOOLS HIGHER Asset Licensing Deal (i.e. selling a drug candidate to a large biopharma) GIN
Slide 24: Traditional cell engineering solutions in agriculture, pharma and industrial biotech
Property of Ginkgo Bioworks — 24 Ginkgo’s “traditional” cell engineering solutions remain in agriculture, pharma and industrial biotech Customization for Customer & Technical Risk borne by Ginkgo CELL ENGINEERING SOLUTIONS CELL ENGINEERING TOOLS HIGHER Asset Licensing Deal (i.e. selling a drug candi
Slide 25: Agriculture team's four product offerings
Property of Ginkgo Bioworks — 25 Ginkgo’s agriculture team is focused on four product offerings that leverage acquired assets and repurpose work that we have successfully completed Strain Optimization for Early Development Leads Bioproduction Plant Traits Existing Products to Advance to Field Trials*
Slide 26: Pharma and industrial solutions business
Property of Ginkgo Bioworks — 26 Our pharma and industrial solutions business is focused on helping customers optimize manufacturing and production in several areas Natural products discovery and Protein Engineering Protein Production small molecule bioproduction Build and optimize small Build and o
Slide 27: Tools business enabling AI/ML in preclinical R&D
Property of Ginkgo Bioworks — 27 Ginkgo’s tools business aspires to enable AI/ML in preclinical R&D by generating the large datasets needed to train the best models CELL ENGINEERING SOLUTIONS CELL ENGINEERING TOOLS HIGHER Asset Licensing Deal (i.e. selling a drug candidate DRUG DISCOVERY to a large
Slide 28: LDaaS workflow and initial applications
Property of Ginkgo Bioworks — 28 Ginkgo’s tools business aspires to enable AI/ML in preclinical R&D by generating the large datasets needed to train the best models LDaaS WORKFLOW INITIAL APPLICATIONS Sample multimodal data Customer scopes dataset Description readouts High-content imaging The effects
Slide 29: We believe...
Property of Ginkgo Bioworks — 29 We believe… 1 2 3 Ginkgo is focused on Democratizing access to Biosecurity continues to consistent execution as it better tools to engineer see growth opportunities takes the necessary steps biology is important and as it tackles emerging to reach adjusted EBITDA Gin
Slide 30: H5N1 bird flu has recently mutated
Property of Ginkgo Bioworks — 30 H5N1 (bird flu) has recently mutated 1996 H5N1 first identified in China and can now infect several different mammals, reemphasizing the need for 2020 Highly Pathogenic Avian Influenza (HPAI) persistent, pervasive monitoring variant detected in Europe 2021 HPAI detected i
Slide 31: USDA actions to protect livestock health
Property of Ginkgo Bioworks — 31 USDA Actions to Protect In April, the USDA announced $824 Livestock Health From million in new funding to protect Highly Pathogenic H5N1 livestock from the impacts of H5N1 Avian Influenza Federal Order to assist with developing a baseline of critical information and l
Slide 32: Validating genomic surveillance of H5N1 in dairy cows
Ginkgo is validating its novel method for genomic surveillance of Property of Ginkgo Bioworks — 32 H5N1 among dairy cow populations GINKGO’S PROPOSED GENOMIC ANALYSIS PROGRAM (GAP) Milk Collection & Shipment Testing & Sequencing Data Sharing Results are used to inform disease Real-time PCR methods d
Slide 33: Let's grow the world we want to see
we want to see Let’s grow the world Q1 2024 UPDATE & BUSINESS REVIEW Property of Ginkgo Bioworks — 33
Slide 34: Agenda
Property of Ginkgo Bioworks — 34 Introduction Jason Kelly, Co-Founder and CEO Q2 2024 Financial Update Mark Dmytruk, CFO Agenda Q2 2024 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Megan LeDuc, Manager of Investor Relations
Slide 35: Appendix
APPENDIX Q1 2024 UPDATE & BUSINESS REVIEW Property of Ginkgo Bioworks — 35
Slide 36: Cell Program Counts
Cell Program Counts Property of Ginkgo Bioworks — 36 Three Months Ended June 30, Six Months Ended June 30, LTM (1) 2024 2023 2024 2023 2024 New Programs 10 21 27 34 71 Current Active Programs 140 105 151 118 166 Cumulative Programs 269 198 269 198 269 New Programs: New Programs represent the number
Slide 37: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (Unaudited) Property of Ginkgo Bioworks — 37 In millions of USD Three Months Ended June 30, Six Months Ended June 30, 2024 2023* 2024 2023* Net loss $ (217.2) $ (173.3) $ (383.1) $ (378.3) Interest income, net (10.3) (14.3) (22.0) (28.9) Income tax expense (benefit) 0.2
Slide 38: Segment Information
Segment Information (Unaudited) Property of Ginkgo Bioworks — 38 In millions of USD, except % YoY Three Months Ended June 30, Six Months Ended June 30, 2024 2023 % YoY 2024 2023 % YoY Revenue: Cell Engineering $ 36 $ 45 (20%) $ 64 $ 79 (19%) Biosecurity 20 35 (43%) 30 82 (63%) Total Revenue 56 81 (3
Slide 39: Cell Engineering Revenue
Cell Engineering Revenue (Unaudited) Property of Ginkgo Bioworks — 39 In millions of USD, except % of total Three Months Ended June 30, Six Months Ended June 30, 2024 % of Total 2023 % of Total 2024 % of Total 2023 % of Total Related Parties $5 14% $7 14% $6 9% $ 11 14% Third Parties 31 86% 38 86% 5
Slide 40: M&A and Restructuring Related Costs
M&A and Restructuring Related Costs (Unaudited) Property of Ginkgo Bioworks — 40 In millions of USD Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 M&A and Restructuring Related Costs (excl. SBC) Amount included in Research and Development expenses (excl. SBC): 3.9 4.6 22.1
Slide 41: Stock-Based Compensation
Stock-Based Compensation (Unaudited) Property of Ginkgo Bioworks — 41 In millions of USD, except % YoY Three Months Ended June 30, Six Months Ended June 30, 2024 2023 % YoY 2024 2023 % YoY Total Stock-Based Compensation $ 38.2 $ 62.5 (39%) $ 80.6 $ 137.7 (41%) Amount included in Research and Develop
Slide 42: Stock Based Compensation Expense Supplement
Stock Based Compensation Expense Supplement (Unaudited) Property of Ginkgo Bioworks — 42 As disclosed in our SEC filings, the vast majority of Ginkgo’s stock-based compensation expense since going public relates to the accounting treatment of RSUs granted prior to Ginkgo becoming a publicly traded co
Slide 43: Founder Selling Supplement
Founder Selling Supplement Property of Ginkgo Bioworks — 43 Ginkgo’s Founders currently own nearly 20% of the outstanding shares of Ginkgo, the vast majority of which are in Class B shares ● Class B shares are not freely tradable (must be converted to Class A) and are often not shown on automated da
Slide 44: Share Supplement
Share Supplement Property of Ginkgo Bioworks — 44 Illustrative Fully-Diluted Share Count Shares in millions Basic Shares (1) 2,071 RSUs (2) 219 Fully-Diluted Shares (3) 2,290 Memo: Remaining Earnout Shares Outstanding (4) 152 Q2 2024 UPDATE & BUSINESS REVIEW Memo: Shares Underlying Warrants (public
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