Ginkgo Bioworks Holdings, Inc. · NYSE:DNA
Ginkgo Bioworks — Q4 2023 Earnings Presentation
47 slides from Ginkgo Bioworks's earnings presentation, Feb 29, 2024
Slide 1: Grow with Ginkgo: Q4 and FY 2023 Update & Business Review
Grow with Ginkgo Q4 and FY 2023 Update & Business Review February 29, 2024
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Property of Ginkgo Bioworks — 2 Forward-Looking Statements This presentation, the conference call and webcast contain certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our plans, strategies, including with respect to our b
Slide 3: Agenda
Property of Ginkgo Bioworks — 3 Agenda Introduction Jason Kelly, Co-Founder and CEO Q4 and FY 2023 Financial Update Mark Dmytruk, CFO Strategic Review Jason Kelly, Co-Founder and CEO 2023 UPDATE & BUSINESS REVIEW 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 2023 UPDATE & BUSINESS REVIEW Property of Ginkgo Bioworks — 4
Slide 5: Making biology engineerable will change the world
Property of Ginkgo Bioworks — 5 We truly believe that figuring out how to make biology engineerable will change the world 2023 UPDATE & BUSINESS REVIEW
Slide 6: 2023 saw continued growth, with many new programs across industries
Non-exhaustive Property of Ginkgo Bioworks — 6 2023 saw continued growth, with many new programs across industries BIOPHARMA INDUSTRIAL BIOTECHNOLOGY AGRICULTURE LARGE COMPANIES 2023 UPDATE & BUSINESS REVIEW STARTUPS
Slide 7: With advancements in AI, we plan to build on biopharma growth in 2024
Property of Ginkgo Bioworks — 7 With our advancements in AI, we plan to build on our growth in biopharma in 2024 Cell Engineering - Biopharma Revenue(1) ($M) LEARN MORE LEARN MORE Pfizer hooks up Busy dealmakers with Ginkgo for Ginkgo, Boehringer $331M biobucks Ingelheim sign one Biopharma revenue de
Slide 8: Horizontal platform providing seamless integrated R&D experience
Property of Ginkgo Bioworks — 8 As a horizontal platform, we seek to provide our customers with a seamless and integrated R&D experience BUILD: FOUNDRY & CODEBASE PARTNER: GINKGO’S TECHNOLOGY NETWORK Our Customers 2023 UPDATE & BUSINESS REVIEW BUY: PATCH, PROOF, REVERIE …and many more to come!
Slide 9: Agenda
Property of Ginkgo Bioworks — 9 Agenda Introduction Jason Kelly, Co-Founder and CEO Q4 and FY 2023 Financial Update Mark Dmytruk, CFO Strategic Review Jason Kelly, Co-Founder and CEO 2023 UPDATE & BUSINESS REVIEW Q&A Session Moderated by Megan LeDuc, Manager of Investor Relations
Slide 10: Cell Engineering Highlights
Property of Ginkgo Bioworks — 10 Cell Engineering Highlights New Programs Current Active Programs 32% 45% 36% 15% 2023 UPDATE & BUSINESS REVIEW Total Active Customers Cell Engineering Revenue ($M) by Type 63% 48% (89%) (49%) 31% (99%) (26%)
Slide 11: Biosecurity Highlights
Property of Ginkgo Bioworks — 11 Biosecurity Highlights Biosecurity Revenue ($M) GINKGO NEWS — Feb. 27, 2024 LEARN MORE Phase out of K-12 Ginkgo testing HQ CUBE-D 20 North America 22 Europe 30 Asia 26 7 Africa 2023 UPDATE & BUSINESS REVIEW Biosecurity Gross Profit Margin South America 3 Oceania Count
Slide 12: Revenue growth complemented by operating efficiency
Property of Ginkgo Bioworks — 12 Revenue growth is complemented by operating efficiency Strong Balance Sheet Coupled With Improving Efficiency Achievement of M&A-related cost synergies Reduced quarterly OpEx Ended 2023 with (R&D + G&A excl SBC) nearly G&A reductions through lower by approximately profes
Slide 13: 2023 Financial Summary
Property of Ginkgo Bioworks — 13 2023 Financial Summary In millions of USD Three Months Ended December 31, Twelve Months Ended December 31, except new programs and % YoY 2023 2022 % YoY 2023 2022 % YoY Revenue: Cell Engineering $ 27 $ 53 (49%) $ 144 $ 144 (0%) Biosecurity 8 45 (83%) 108 334 (68%) To
Slide 14: Business shifting towards higher revenue opportunities with large biopharma
Property of Ginkgo Bioworks — 14 Ginkgo’s business is shifting towards higher revenue opportunities with large biopharma Cell Engineering - New Biopharma Programs Biopharma Revenue ⁽¹⁾ ($M) Top 10 Biopharma R&D Budgets ($B) 2023 R&D Spend ($B) $18.3 $16.1 $15.1 $10.7 2023 UPDATE & BUSINESS REVIEW $1
Slide 15: Large biopharma accounts generating higher potential DVS opportunities
Property of Ginkgo Bioworks — 15 Penetrating large biopharma accounts is also generating significantly higher potential DVS opportunities Milestone Pool Opportunity as of Year End Downstream Value Shifting Towards Milestones & Royalties As of the end of 2023, there was over $2 billion in aggregate po
Slide 16: 2024 Full Year Outlook
Property of Ginkgo Bioworks — 16 2024 Full Year Outlook In millions of USD Historical Outlook Guidance Commentary except new programs FY2021 FY2022 FY2023 FY2024 Expect to see continued mix shift New programs 31 59 78 100-120 towards larger enterprise accounts in biopharma Revenue Cell Engineering $
Slide 17: Agenda
Property of Ginkgo Bioworks — 17 Agenda Introduction Jason Kelly, Co-Founder and CEO Q4 and FY 2023 Financial Update Mark Dmytruk, CFO Strategic Review Jason Kelly, Co-Founder and CEO 2023 UPDATE & BUSINESS REVIEW Q&A Session Moderated by Megan LeDuc, Manager of Investor Relations
Slide 18: We believe…
Property of Ginkgo Bioworks — 18 We believe… 1 2 3 Ginkgo’s lab automation Ginkgo wants to make it We’re forming an provides a unique easy for R&D leaders to integrated global network back-end to generate the buy new product for biosecurity large amounts of data development tools and for needed to p
Slide 19: We believe…
Property of Ginkgo Bioworks — 19 We believe… 1 2 3 Ginkgo’s lab automation Ginkgo wants to make it We’re forming an provides a unique easy for R&D leaders to integrated global network back-end to generate the buy new product for biosecurity large amounts of data development tools and for needed to p
Slide 20: Infrastructure services enable trillion dollar biotech companies
Property of Ginkgo Bioworks — 20 Infrastructure services are why we see trillion dollar tech companies – we need them to enable trillion dollar biotech companies Enabled Tech Ginkgo Customers Foundation 2023 UPDATE & BUSINESS REVIEW Ginkgo & Partners Enabled Tech Foundation The commonality of DNA an
Slide 21: Conventional wisdom is to vertically integrate into products
Property of Ginkgo Bioworks — 21 The conventional wisdom in biotech is that you must vertically integrate into products Mastering the Value Chain: An Interview with Mark Levin of Millennium Pharmaceuticals But we’ve become increasingly aware that we cannot afford to remain a research company because
Slide 22: Lab automation needed to generate large biological datasets
Property of Ginkgo Bioworks — 22 Lab automation is needed to generate Foundry-scale data generation capabilities in large biological datasets economically diverse systems enable discovery, product development, and AI model training Proprietary database for parts mining ● Database encompasses over 2.
Slide 23: Generating labeled biological data at scale unlocks AI applications
Property of Ginkgo Bioworks — 23 The ability to generate “labeled” biological data at scale unlocks AI applications in biotech Project-based data Data as a service: Bottlenecked by the quantity and quality / Project-based data specificity of public data, large biopharma companies and AI Project-based
Slide 24: Zymergen acquisition brought scale and automation
Property of Ginkgo Bioworks — 24 Our acquisition of Zymergen brought in an unprecedented level of scale and automation to generate data Ginkgo Completes Acquisition of Zymergen LEARN MORE Q4 22 Q3 23 First RACs deployed in Boston Q4 23 2023 UPDATE & BUSINESS REVIEW Bioworks 5 RAC expansion Q2 24 RAC
Slide 25: Building out data generating infrastructure with Biofab1
Future planned state of Biofab1; for illustrative purposes only Property of Ginkgo Bioworks — 25 And we continue to build out our data generating infrastructure with Biofab1 expected to open in 2025 "We built the Foundry - and are building Biofab1 - to create more opportunities for our partners to i
Slide 26: We believe…
Property of Ginkgo Bioworks — 26 We believe… 1 2 3 Ginkgo’s lab automation Ginkgo wants to make it We’re forming an provides a unique easy for R&D leaders to integrated global network back-end to generate the buy new product for biosecurity large amounts of data development tools and for needed to p
Slide 27: History of integrating technology through partnerships and acquisitions
Non-exhaustive Property of Ginkgo Bioworks — 27 Ginkgo has a history of integrating technology onto its platform through vendor partnerships and acquisitions M&A Strategy Drives Deeper Technical Integrations 2017 2018 2019 2020 2021 2022 2023 2024 2023 UPDATE & BUSINESS REVIEW Broad Industry Relatio
Slide 28: Recent acquisitions add specialized AI and biopharma capabilities
Property of Ginkgo Bioworks — 28 Our recent acquisitions add specialized AI and biopharma capabilities ● Developed AI for sequence design models ● IP and libraries around OMEGA (Obligate ● Focused on building infra/automation for for engineering gene therapies and RNA Mobile Element Guided Activity)
Slide 29: Launch of the Technology Network
Property of Ginkgo Bioworks — 29 Now we're taking this integration to the next level with the launch of the Technology Network - making the broader ecosystem available to customers Our Customers 2023 UPDATE & BUSINESS REVIEW …and many more to come!
Slide 30: Case Study: Cradle's genAI protein engineering studio
Property of Ginkgo Bioworks — 30 Case Study: Driving results with Cradle's genAI-powered protein engineering studio integrated with Ginkgo's flexible and scalable experimental platform ILLUSTRATIVE Iterative libraries of protein designs generated from Cradle’s platform 2023 UPDATE & BUSINESS REVIEW S
Slide 31: Case Study: Integrating bit.bio's ioCells
Property of Ginkgo Bioworks — 31 Case Study: Integrating bit.bio’s ioCells into Ginkgo’s drug discovery workflows for customers ILLUSTRATIVE bit.bio provides wild type and disease model ioCells that may be customized for customer programs Validated drug candidates to Ginkgo’s customer 2023 UPDATE & B
Slide 32: Platform impact on key value drivers for biopharma drug discovery
Property of Ginkgo Bioworks — 32 The scale and flexibility of Ginkgo’s platform can have a direct impact on the three key value drivers for biopharma drug discovery and development Probability of Success Time to Results Cost ● Increased throughput can drive a ● Flexible automation creates the ● Autom
Slide 33: We believe…
Property of Ginkgo Bioworks — 33 We believe… 1 2 3 Ginkgo’s lab automation Ginkgo wants to make it We’re forming an provides a unique easy for R&D leaders to integrated global network back-end to generate the buy new product for biosecurity large amounts of data development tools and for needed to p
Slide 34: Data and analytics will transform the biosecurity tech stack
Property of Ginkgo Bioworks — 34 Data and analytics will transform the future biosecurity tech stack Persistent Global Monitoring Establishing “continuous custody” of biothreat data Bioradar & BIOINT are the first frontiers Decision Support 2023 UPDATE & BUSINESS REVIEW Generating analysis to enable
Slide 35: Systems integration partnership with Illumina
Property of Ginkgo Bioworks — 35 Our systems integration partnership with Illumina can drive accelerated bioradar network growth and global capacity building Illumina is a global leader in DNA sequencing technologies whose solutions can enable Concentric by Ginkgo stakeholders to gain a more complet
Slide 36: Launching biosecurity analytics center in Doha
Property of Ginkgo Bioworks — 36 We’re launching a first-in-kind biosecurity analytics center in Doha as a hub in our global network The Center for Unified Biosecurity Excellence in Doha (CUBE-D) “represents the next generation of biosecurity infrastructure” Matt McKnight General Manager, Biosecurity
Slide 37: Let's grow the world we want to see
____________________ Let’s grow the world we want to see
Slide 38: Agenda
Property of Ginkgo Bioworks — 38 Agenda Introduction Jason Kelly, Co-Founder and CEO Q4 and FY 2023 Financial Update Mark Dmytruk, CFO Strategic Review Jason Kelly, Co-Founder and CEO 2023 UPDATE & BUSINESS REVIEW Q&A Session Moderated by Megan LeDuc, Manager of Investor Relations
Slide 39: Appendix
APPENDIX
Slide 40: Cell Program Counts
Property of Ginkgo Bioworks — 40 Cell Program Counts Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 New Programs 23 20 78 59 Current Active Programs 131 96 162 112 Cumulative Programs 242 164 242 164 New Programs: New Programs represent the number of unique prog
Slide 41: Adjusted EBITDA Reconciliation
Property of Ginkgo Bioworks — 41 Adjusted EBITDA Reconciliation In millions of USD Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders $ (211.7) $ (175.5) $ (892.9) $ (2,104.9) Interest income (13.2
Slide 42: Segment Information
Property of Ginkgo Bioworks — 42 Segment Information In millions of USD, except $ YoY Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 % YoY 2023 2022 % YoY Revenue: Cell Engineering $ 27 $ 53 (49%) $ 144 $ 144 (0%) Biosecurity 8 45 (83%) 108 334 (68%) Total Revenue 35 98 (
Slide 43: Cell Engineering Revenue
Property of Ginkgo Bioworks — 43 Cell Engineering Revenue In millions of USD, except % of total Three Months Ended December 31, Twelve Months Ended December 31, 2023 % of Total 2022 % of Total 2023 % of Total 2022 % of Total Related Parties $2 9% $7 14% $ 22 15% $ 39 27% Third Parties 25 91% 46 86%
Slide 44: Stock-Based Compensation
Property of Ginkgo Bioworks — 44 Stock-Based Compensation In millions of USD, except % YoY Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 % YoY 2023 2022 % YoY Total Stock-Based Compensation $ 43.6 $ 111.2 (61%) $ 234.9 $ 1,940.9 (88%) Amount included in Research and Deve
Slide 45: Stock Based Compensation Expense Supplement
Property of Ginkgo Bioworks — 45 Stock Based Compensation Expense Supplement 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 company, which
Slide 46: Founder Selling Supplement
Property of Ginkgo Bioworks — 46 Founder Selling Supplement Ginkgo’s Founders currently own over 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 data
Slide 47: Share Supplement
Property of Ginkgo Bioworks — 47 Share Supplement Illustrative Fully-Diluted Share Count Shares in millions Basic Shares (1) 2,000 RSUs (2) 152 Options (Treasury-stock method) (3) 3 Fully-Diluted Shares 2,155 Memo: Remaining Earnout Shares Outstanding (4) 152 2023 UPDATE & BUSINESS REVIEW Memo: Shar
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