Ginkgo Bioworks Holdings, Inc. · NYSE:DNA
Ginkgo Bioworks — Q3 2024 Earnings Presentation
40 slides from Ginkgo Bioworks's earnings presentation, Nov 12, 2024
Slide 1: Q3 2024 Update & Business Review
Property of Ginkgo Bioworks — 1 Grow with Ginkgo Q3 2024 Update & Business Review Q1 2024 UPDATE & BUSINESS REVIEW November 12, 2024
Slide 2: Disclaimer: Forward-Looking Statements
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 Q3 2024 Financial Update Mark Dmytruk, CFO Agenda Q3 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 margin of Q3 2024 UPDATE & BUSINESS REVIEW safety Cutting costs while serving current customers Growing revenue in solutions and expan
Slide 5: Annualized cost savings target of ~$200 million by mid-2025
Reminder: Ginkgo targets annualized cost savings of ~$200 million Property of Ginkgo Bioworks — 5 by mid-2025 2024 2025 Total SPEND Annualized Savings Annualized Savings Annualized Savings Target by CATEGORY Original Target Original Target mid-2025 People OpEx (1) $75M $10M $85M Non-People OpEx $25M
Slide 6: Agenda
Property of Ginkgo Bioworks — 6 Introduction Jason Kelly, Co-Founder and CEO Q3 2024 Financial Update Mark Dmytruk, CFO Agenda Q3 2024 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Megan LeDuc, Manager of Investor Relations
Slide 7: Cell Engineering Highlights
Cell Engineering Highlights (Unaudited) Property of Ginkgo Bioworks — 7 CELL ENGINEERING REVENUE ($M) CURRENT ACTIVE PROGRAMS TOTAL ACTIVE CUSTOMERS BY TYPE 17% 7% 102% Government Pharma & Q3 2024 UPDATE & BUSINESS REVIEW Biotech Includes recognition of $45M non-cash deferred revenue from Motif. Foo
Slide 8: New programs in the quarter showed strong execution in biopharma
New programs in the quarter showed strong execution in the Property of Ginkgo Bioworks — 8 biopharma industry NEW PROGRAMS YEAR TO DATE Other Customer Contracts ● 2 out of the 14 contracts are Datapoints deals Q3 2024 UPDATE & BUSINESS REVIEW ● 7 out of the 14 contracts are biopharma deals New Progr
Slide 9: Biosecurity Highlights
Biosecurity Highlights Property of Ginkgo Bioworks — 9 (Unaudited) BIOSECURITY REVENUE ($M) Ginkgo HQ CUBE-D 20 North America 24 Europe 34 Asia Q3 2024 UPDATE & BUSINESS REVIEW 30 8 Africa South BIOSECURITY GROSS PROFIT MARGIN America 3 Oceania Countries in which Ginkgo has programs, pilots, or sign
Slide 10: Q3 2024 Financial Summary
Q3 2024 Financial Summary (Unaudited) Property of Ginkgo Bioworks — 10 Three Months Ended September 30, Nine Months Ended September 30, In millions of USD except % YoY 2024 2023 % YoY 2024 2023* % YoY Revenue: Cell Engineering ⁽¹⁾ $ 75 $ 37 102% $ 139 $ 117 19% Biosecurity 14 18 (24%) 44 100 (56%) T
Slide 11: Ginkgo updates guidance to reflect $45 million non-cash deferred revenue release
Ginkgo updates guidance solely to reflect the $45 million non-cash Property of Ginkgo Bioworks — 11 deferred revenue release HISTORICAL OUTLOOK In millions of USD FY2021 FY2022 FY2023 FY2024 Revenue Cell Engineering $113 $144 $144 $165-185 Services $86 $106 $139 $120-140 Downstream Value $27 $38 $4 -
Slide 12: Agenda
Property of Ginkgo Bioworks — 12 Introduction Jason Kelly, Co-Founder and CEO Q3 2024 Financial Update Mark Dmytruk, CFO Agenda Q3 2024 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Megan LeDuc, Manager of Investor Relations
Slide 13: We believe…
Property of Ginkgo Bioworks — 13 We believe… 1 2 3 Ginkgo has the potential Ginkgo continues to build The H5N1 threat has to exceed cost cutting its customer relationships progressed in recent goals in 2024 while as it delivers technical weeks and Ginkgo stands maintaining revenue milestones and sig
Slide 14: We believe…
Property of Ginkgo Bioworks — 14 We believe… 1 2 3 Ginkgo has the potential Ginkgo continues to build The H5N1 threat has to exceed cost cutting its customer relationships progressed in recent goals in 2024 while as it delivers technical weeks and Ginkgo stands maintaining revenue milestones and sig
Slide 15: Restructuring accomplishments to date
Restructuring accomplishments to Property of Ginkgo Bioworks — 15 Annualized, Run-Rate Cash Opex (1) ~$515M (1) date ~$500M Space ● Transitioning out of several offices to reduce overall Space footprint ~$375M (1) ● Boston area site consolidation complete by end of year, approximately 6 months ahead o
Slide 16: Six months ahead of schedule in site consolidation
Property of Ginkgo Bioworks — 16 Ginkgo is six months ahead of schedule in Site Consolidation Boston / Cambridge Evry ✘1 ABP (Parcel O/P) 21-25 Drydock ✘ Sold Altar SAS to Lesaffre including 23 Drydock Zeist, NDL ALE entity in France. Transaction 27 Drydock 451D Ultrechtseweg 48 closed 9/30/2024. ✘10
Slide 17: Restructuring focus areas moving forward
Property of Ginkgo Bioworks — 17 Restructuring focus areas moving forward Subleasing Non-Productive Space & Additional Space Consolidation 1 Find tenants to maximize the use of excess real estate resources & continued optimization of operational footprint required to deliver programs. Strict Focus o
Slide 18: We believe…
Property of Ginkgo Bioworks — 18 We believe… 1 2 3 Ginkgo has the potential Ginkgo continues to build The H5N1 threat has to exceed cost cutting its customer relationships progressed in recent goals in 2024 while as it delivers technical weeks and Ginkgo stands maintaining revenue milestones and sig
Slide 19: Expanding into tools opens new revenue from existing assets
Property of Ginkgo Bioworks — 19 Expanding into tools opens new revenue from existing assets 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) GINKGO CUSTOMIZA
Slide 20: Ginkgo remains focused on delivering for customers
Property of Ginkgo Bioworks — 20 Ginkgo remains focused on delivering for customers, while Q3 2024 UPDATE & BUSINESS REVIEW remaining disciplined in cutting costs
Slide 21: Ginkgo advances collaboration with Merck to improve biologics manufacturing
Property of Ginkgo Bioworks — 21 Ginkgo Bioworks Advances Ginkgo continues to deliver for its Collaboration with Merck to customers as it reaches a major Improve Biologics Manufacturing research milestone with Merck “We're excited to achieve the first milestone of our collaboration with Merck and con
Slide 22: Novo Nordisk represents a model for key customers
Novo Nordisk represents a model for what we can Property of Ginkgo Bioworks — 22 accomplish with key customers as we demonstrate our capabilities Ginkgo Bioworks and Novo Ginkgo Bioworks and Novo Expansion of the Nordisk to Collaborate on Nordisk Expand Alliance to collaboration on expression Expres
Slide 23: Datapoints products: cell-based data
Beyond our traditional Solutions Property of Ginkgo Bioworks — 23 offerings, we’ve also launched two Datapoints products Flexibility & Choose from cell types, compound Customization library, data readouts. We handle both perturbation and End-to-End readouts. Tell us what you need, and we will deliver
Slide 24: Datapoints products: antibody developability
Beyond our traditional Solutions Property of Ginkgo Bioworks — 24 offerings, we’ve also launched two Datapoints products ● Screen over 2,400 antibody sequences in parallel Scale ● Enabled by our highly automated lab and over $1 billion of invested wet lab infrastructure 1. We take your antibody seque
Slide 25: We believe…
Property of Ginkgo Bioworks — 25 We believe… 1 2 3 Ginkgo has the potential Ginkgo continues to build The H5N1 threat has to exceed cost cutting its customer relationships progressed in recent goals in 2024 while as it delivers technical weeks and Ginkgo stands maintaining revenue milestones and sig
Slide 26: H5N1 outbreak shifted from livestock threat to human transmission
Property of Ginkgo Bioworks — 26 The H5N1 outbreak has shifted from a threat to livestock to human transmission in a matter of months NEWS AS OF AUG 8, 2024 NEWS AS OF NOV 12, 2024 How Countries Are Feds to spend CDC calls for US detects H5N1 Preparing for a millions to contain expanded testing for
Slide 27: Ginkgo's current H5N1 offerings
Ginkgo’s current H5N1 offerings work Property of Ginkgo Bioworks — 27 GINKGO’S CROSS-SPECIES H5N1 US TRACKER to detect and prevent the spread ● Detects and provides genomic information for Flu A in raw milk Testing & ● Delivers necessary information to accelerate the Sequencing development of diagnos
Slide 28: Ginkgo's next steps on H5N1
Property of Ginkgo Bioworks — 28 Serologic Evidence of Recent Recent CDC announcements indicate Infection with Highly the need for strategies to detect and Pathogenic Avian Influenza A(H5) Virus Among Dairy prevent the spread of H5N1 Workers — Michigan and Colorado, June–August 2024 GINKGO’S NEXT STE
Slide 29: Let's grow the world we want to see
world Let’s grow the we want to see Q1 2024 UPDATE & BUSINESS REVIEW Property of Ginkgo Bioworks — 29
Slide 30: Agenda
Property of Ginkgo Bioworks — 30 Introduction Jason Kelly, Co-Founder and CEO Q3 2024 Financial Update Mark Dmytruk, CFO Agenda Q3 2024 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Megan LeDuc, Manager of Investor Relations
Slide 31: Appendix
APPENDIX Q1 2024 UPDATE & BUSINESS REVIEW Property of Ginkgo Bioworks — 31
Slide 32: Cell Program Counts
Cell Program Counts Property of Ginkgo Bioworks — 32 Three Months Ended September 30, Nine Months Ended September 30, LTM (1) 2024 2023 2024 2023 2024 New Programs 11 21 38 55 61 Current Active Programs 136 116 162 139 169 Cumulative Programs 280 219 280 219 280 New Programs: New Programs represent
Slide 33: Cell Engineering Revenue
Cell Engineering Revenue (Unaudited) Property of Ginkgo Bioworks — 33 In millions of USD, except % of total Three Months Ended September 30, Nine Months Ended September 30, 2024 % of Total 2023 % of Total 2024 % of Total 2023 % of Total Related Parties $ 47 62% $9 23% $ 52 37% $ 20 17% Third Parties
Slide 34: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (Unaudited) Property of Ginkgo Bioworks — 34 In millions of USD Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023* Net loss ⁽¹⁾ $ (56.4) $ (302.9) $ (439.5) $ (681.2) Interest income, net (9.3) (15.0) (31.3) (43.9) Income tax expense
Slide 35: M&A and Restructuring Related Costs
M&A and Restructuring Related Costs (Unaudited) Property of Ginkgo Bioworks — 35 In millions of USD Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 M&A and Restructuring Related Costs (excl. SBC) Amount included in Research and Development expenses (excl. SBC): 0
Slide 36: Segment Information
Segment Information (Unaudited) Property of Ginkgo Bioworks — 36 In millions of USD, except % YoY Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 % YoY 2024 2023 % YoY Revenue: Cell Engineering $ 75 $ 37 102% $ 139 $ 117 19% Biosecurity 14 18 (24%) 44 100 (56%) Total Reven
Slide 37: Stock-Based Compensation
Stock-Based Compensation (Unaudited) Property of Ginkgo Bioworks — 37 In millions of USD, except % YoY Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 % YoY 2024 2023 % YoY Total Stock-Based Compensation $ 14.0 $ 53.7 (74%) $ 94.6 $ 191.3 (51%) Amount included in Research
Slide 38: Stock Based Compensation Expense Supplement
Stock Based Compensation Expense Supplement (Unaudited) Property of Ginkgo Bioworks — 38 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 39: Founder Selling Supplement
Founder Selling Supplement Property of Ginkgo Bioworks — 39 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 40: Share Supplement
Share Supplement Property of Ginkgo Bioworks — 40 Illustrative Fully-Diluted Share Count Shares in thousands Basic Shares (1) 53,683 RSUs (2) 4,078 Fully-Diluted Shares 57,761 Memo: Remaining Earnout Shares Outstanding (3) 3,796 Q3 2024 UPDATE & BUSINESS REVIEW Memo: Shares Underlying Warrants (4) 5
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