Ginkgo Bioworks Holdings, Inc. · NYSE:DNA
Ginkgo Bioworks — Q1 2024 Earnings Presentation
44 slides from Ginkgo Bioworks's earnings presentation, May 9, 2024
Slide 1: Q1 2024 Update & Business Review
May 9, 2024 Q1 2024 Update & Business Review Grow with Ginkgo Q1 2024 UPDATE & BUSINESS REVIEW Property of Ginkgo Bioworks — 1
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 Agenda Introduction Jason Kelly, Co-Founder and CEO Q1 2024 Financial Update Mark Dmytruk, CFO Q1 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: Make biology easier to engineer
OUR MISSION easier to engineer Make biology Q1 2024 UPDATE & BUSINESS REVIEW Property of Ginkgo Bioworks — 4
Slide 5: Ginkgo is an increasingly important part of the biotech ecosystem
Non-exhaustive Property of Ginkgo Bioworks — 5 Ginkgo is an increasingly important part of the biotech ecosystem PHARMA INDUSTRIAL BIOTECHNOLOGY AGRICULTURE LARGE COMPANIES Q1 2024 UPDATE & BUSINESS REVIEW STARTUPS
Slide 6: Taking decisive action to reach Adjusted EBITDA breakeven by end of 2026
Property of Ginkgo Bioworks — 6 We are taking decisive action now while we are in a position of strength to drive towards Adjusted EBITDA(1) breakeven by the end of 2026 Strong Balance Sheet Driving Efficiencies Ended Q1 2024 with Targeting annualized run-rate opex reduction of Q1 2024 UPDATE & BUSINE
Slide 7: Agenda
Property of Ginkgo Bioworks — 7 Agenda Introduction Jason Kelly, Co-Founder and CEO Q1 2024 Financial Update Mark Dmytruk, CFO Q1 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
Property of Ginkgo Bioworks — 8 Cell Engineering Highlights (Unaudited) New Programs Current Active Programs 44% Government 31% Pharma & Biotech Food & Agriculture Industrial & Environmental Consumer & Technology Q1 2024 UPDATE & BUSINESS REVIEW Total Active Customers Cell Engineering Revenue ($M) b
Slide 9: Biosecurity Highlights
Property of Ginkgo Bioworks — 9 Biosecurity Highlights (Unaudited) Biosecurity Revenue ($M) Ginkgo HQ CUBE-D 20 North America 24 Europe 34 Asia Q1 2024 UPDATE & BUSINESS REVIEW 30 8 Africa Biosecurity Gross Profit Margin South America 3 Oceania Countries in which Ginkgo has programs, pilots, or signe
Slide 10: Q1 2024 Financial Summary
Property of Ginkgo Bioworks — 10 Q1 2024 Financial Summary (Unaudited) In millions of USD Three Months Ended March 31, except new programs and % YoY 2024 2023 % YoY Revenue: Cell Engineering $ 28 $ 34 (18%) Biosecurity 10 47 (78%) Total revenue 38 81 (53%) Biosecurity cost of sales 9 22 (59%) Resear
Slide 11: Agenda
Property of Ginkgo Bioworks — 11 Agenda Introduction Jason Kelly, Co-Founder and CEO Q1 2024 Financial Update Mark Dmytruk, CFO Q1 2024 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Megan LeDuc, Manager of Investor Relations
Slide 12: We believe…
Property of Ginkgo Bioworks — 12 We believe… 1 2 3 Customers choose Ginkgo We are changing We are laser focused on because of the scale of commercial terms to bringing the company to data Ginkgo can offer, but remove friction in sales Adjusted EBITDA(1) ramping new programs breakeven by the end of ha
Slide 13: We believe: customers choose Ginkgo because of data scale
Property of Ginkgo Bioworks — 13 We believe… 1 2 3 Customers choose Ginkgo We are changing We are laser focused on because of the scale of commercial terms to bringing the company to data Ginkgo can offer, but remove friction in sales Adjusted EBITDA(1) ramping new programs breakeven by the end of ha
Slide 14: Active program count has grown but revenue declined YoY
Property of Ginkgo Bioworks — 14 Ginkgo has consistently grown its active program count, but we see a decline in revenue YoY because getting to large scale data generation is too slow Current Active Programs Cell Engineering Revenue ($M) by Type 44% (18%) (93%) Government Pharma & Biotech Q1 2024 UP
Slide 15: Customers choose Ginkgo because of the scale of data we generate
Property of Ginkgo Bioworks — 15 Customers choose Ginkgo because of the scale of data we generate Customer Deliverable Cycle Ginkgo Deliverable Cycle Customer Customer R&D Leader R&D Leader Deliverable Deliverable Customer Ginkgo Scientist Scientist Q1 2024 UPDATE & BUSINESS REVIEW Design Analyze La
Slide 16: RAC automation serves diverse customers at different scales
Property of Ginkgo Bioworks — 16 RAC automation allows us to efficiently serve diverse customers at different scales MOST FLEXIBILITY MOST SCALE FLEXIBILITY AT SCALE The traditional lab automation continuum is limited by a tradeoff Ginkgo’s modular automation technology is flexible, extensible, between fl
Slide 17: Transferring workflows from the Foundry to RAC workcells
Property of Ginkgo Bioworks — 17 Transferring workflows from the Foundry 80-90% labor time reduction to RAC workcells is a major technical unlock for us and will improve onboarding 0-60% cycle time reduction speed Customer R&D Leader The promise of automation has delivered beyond our expectations Del
Slide 18: Reconfigurable Automation Carts (RACs)
Property of Ginkgo Bioworks — 18 Reconfigurable Automation Carts Optional HEPA Filter (RACs) Hardware building blocks for the automated lab Dedicated robotic arm improves reliability and throughput A RAC is a standardized enclosure for integrating Lab device of choice, scientific instrumentation. from
Slide 19: RACs come in standard sizes
Property of Ginkgo Bioworks — 19 RACs come in standard sizes, making new device integration Q1 2024 UPDATE & BUSINESS REVIEW quick and easy
Slide 20: RAC Systems can rearrange and scale with demand
Property of Ginkgo Bioworks — 20 RAC Systems can rearrange and scale with demand Linear RAC System Mega RAC System (5 RACs) (185 RACs) Q1 2024 UPDATE & BUSINESS REVIEW Closed Loop RAC System (15 RACs) Individual RACs or entire loops can be added, altered, or isolated to accommodate customer programs
Slide 21: Biofab1 will be a Lab Data Center
Property of Ginkgo Bioworks — 21 Biofab1 will be a Lab Data Center. Q1 2024 UPDATE & BUSINESS REVIEW Common, scaled hardware generating large amount of diverse lab data output for customers on a fee-for-service basis
Slide 22: We believe: changing commercial terms to remove friction in sales
Property of Ginkgo Bioworks — 22 We believe… 1 2 3 Customers choose Ginkgo We are changing We are laser focused on because of the scale of commercial terms to bringing the company to data Ginkgo can offer, but remove friction in sales Adjusted EBITDA(1) ramping new programs breakeven by the end of ha
Slide 23: Orienting future deals around fees to bring in new demand
Property of Ginkgo Bioworks — 23 Certain customers are deterred by our IP and DVS negotiations so we are orienting our future deals around fees to bring in new demand Customer Deliverable Cycle Ginkgo Deliverable Cycle Customer Customer ✘ Scientific Control R&D Leader R&D Leader ✘ IP ✘ DVS Deliverabl
Slide 24: Orienting future deals around fees to bring in new demand
Property of Ginkgo Bioworks — 24 Certain customers are deterred by our IP and DVS negotiations so we are orienting our future deals around fees to bring in new demand Customer Deliverable Cycle Ginkgo Deliverable Cycle Customer Customer ✘ Scientific Control R&D Leader R&D Leader ✔ IP ✔ DVS (most) Del
Slide 25: Selling directly to scientists through Lab Data as a Service
Property of Ginkgo Bioworks — 25 We will also start selling directly to scientists through our Lab Data as a Service offering to allow customers to maintain scientific control Ginkgo Deliverable Cycle Customer ✔ Scientific Control Ginkgo Bioworks Previews Today's R&D Leader ✔ IP ✔ DVS Annual Ferment Co
Slide 26: Common platform serves cell engineering and Lab Data as a Service
Property of Ginkgo Bioworks — 26 Our common technology platform can service both traditional cell engineering services and new Lab Data as a Service offering Sold to: Corporate Development Budget Sold to: R&D Budget Decisionmaker is opportunistic and focused on novel strategies Enable routine and nec
Slide 27: Lab data is the missing ingredient for AI in Bio
Property of Ginkgo Bioworks — 27 Lab data is the “missing ingredient” for AI in Bio AI modeling relies on three key ingredients: ● Compute ● Technology / talent ● Data In biology, data is the biggest Q1 2024 UPDATE & BUSINESS REVIEW bottleneck: ● Highly variable ● Not interpretable ● Astronomical se
Slide 28: We believe: making changes on revenue and cost side
Property of Ginkgo Bioworks — 28 We believe… 1 2 3 Customers choose Ginkgo We are changing We are laser focused on because of the scale of commercial terms to bringing the company to data Ginkgo can offer, but remove friction in sales Adjusted EBITDA(1) ramping new programs breakeven by the end of ha
Slide 29: Planning significant cost reductions across all areas of the business
Property of Ginkgo Bioworks — 29 Planning significant cost reductions over the next year across all areas of the business ~$500M(1) Significantly consolidate Space global footprint 25%+ reduction in labor spending, across both G&A and $100M $200M People R&D, enabled by simplification target annualized
Slide 30: Moving core Foundry operations to Biofab1 in mid-2025
Property of Ginkgo Bioworks — 30 We plan to move our core Foundry operations to Biofab1 in mid-2025, leveraging our most advanced automation ● Biofab1 is designed as a consolidated “data center”, leveraging RAC automation and is set to open in mid-2025. We plan to consolidate our operations into tha
Slide 31: Reducing other operational costs through simplification
Property of Ginkgo Bioworks — 31 Other operational costs (labor and other expenses) can be reduced as a result of operational simplification ● Site consolidation, automation deployment, and process efficiencies will reduce team needs across departments ○ Less operational overhead (facilities, G&A, etc.
Slide 32: Updated 2024 Full Year Outlook
Property of Ginkgo Bioworks — 32 Updated 2024 Full Year Outlook In millions of USD Historical Outlook Guidance Commentary except new programs FY2021 FY2022 FY2023 FY2024 Management is focused on managing run-rate cash-flow above all other metrics. Revenue We will be prioritizing quality over Cell Eng
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 Agenda Introduction Jason Kelly, Co-Founder and CEO Q1 2024 Financial Update Mark Dmytruk, CFO Q1 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
Property of Ginkgo Bioworks — 36 Cell Program Counts Three Months Ended March 31, LTM (1) 2024 2023 2024 New Programs 17 13 82 Current Active Programs 140 97 166 Cumulative Programs 259 177 259 Q1 2024 UPDATE & BUSINESS REVIEW New Programs: New Programs represent the number of unique programs commen
Slide 37: Adjusted EBITDA Reconciliation
Property of Ginkgo Bioworks — 37 Adjusted EBITDA Reconciliation (Unaudited) In millions of USD Three Months Ended March 31, 2024 2023 Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders $ (165.9) $ (205.0) Interest income (11.8) (14.6) Interest expense 0.1 0.0 Income tax expense (be
Slide 38: Segment Information
Property of Ginkgo Bioworks — 38 Segment Information (Unaudited) In millions of USD, except % YoY Three Months Ended March 31, 2024 2023 % YoY Revenue: Cell Engineering $ 28 $ 34 (18%) Biosecurity 10 47 (78%) Total Revenue 38 81 (53%) Segment cost of revenue: Biosecurity 9 22 (59%) Segment research
Slide 39: Cell Engineering Revenue
Property of Ginkgo Bioworks — 39 Cell Engineering Revenue (Unaudited) In millions of USD, except % of total Three Months Ended March 31, 2024 % of Total 2023 % of Total Related Parties $1 3% $5 14% Third Parties 27 97% 29 86% Cell Engineering Revenue $ 28 100% $ 34 100% Cash consideration $ 24 86% $
Slide 40: Merger and Acquisition Related Expenses
Property of Ginkgo Bioworks — 40 Merger and Acquisition Related Expenses (Unaudited) In millions of USD, except % YoY Three Months Ended March 31, 2024 2023 % YoY Merger and Acquisition Related Expenses ⁽¹⁾ Amount included in Research and Development expenses: 18.2 6.2 193% Amount included in Genera
Slide 41: Stock-Based Compensation
Property of Ginkgo Bioworks — 41 Stock-Based Compensation (Unaudited) In millions of USD, except % YoY Three Months Ended March 31, 2024 2023 % YoY Total Stock-Based Compensation $ 42.4 $ 75.2 (44%) Amount included in Research and Development expenses: 24.1 47.5 (49%) Stock-Based Compensation 23.2 4
Slide 42: Stock Based Compensation Expense Supplement
Property of Ginkgo Bioworks — 42 Stock Based Compensation Expense Supplement (Unaudited) 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
Property of Ginkgo Bioworks — 43 Founder Selling Supplement 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
Property of Ginkgo Bioworks — 44 Share Supplement Illustrative Fully-Diluted Share Count Shares in millions Basic Shares (1) 2,059 RSUs (2) 239 Fully-Diluted Shares (3) 2,298 Memo: Remaining Earnout Shares Outstanding (4) 152 Q1 2024 UPDATE & BUSINESS REVIEW Memo: Shares Underlying Warrants (public
Ginkgo Bioworks Holdings — Q1 2024 Earnings Presentation on 6ix