Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| So this is very powerful |
| We’re excited and gratified to see our international partners leaning into the long-term growth of regional biosecurity ecosystems |
| These initiatives demonstrate the growing momentum in the new market for global biosecurity and the huge potential for rapid progress in building resilience to biological threats |
| We think this evolving customer profile is attractive on many dimensions |
| In addition, we also expect the government vertical to be a strong contributor to growth in 2024 based on a record pipeline we have there |
| We expect that will favorably impact the composition of our program and revenue base, while the industrial biotech vertical is still dealing with unfavorable macroeconomic conditions |
| This was really efficiency gains from more volume coming through improved automation |
| And I think good execution on that puts us on a trajectory to further improve on that number in 2025 |
| I think the sources of growth for us right now, which are government programs and biopharma, and then within biopharma, large biopharma are all better than sort of average revenue per programs |
| I’m really excited about our progress |
| So that’s very exciting |
| I think it sets us up well and appreciate all of your confidence in us |
| This is an enormous market and as we continue to deliver for our early customers, we see significant growth potential ahead |
| Importantly, we continue to be successful in adding new programs with large enterprise pharma customers |
| This represents substantial growth and diversification in programs relative to the 96 active programs across 54 customers in the fourth quarter of 2022 |
| The magic here is that Ginkgo gets bit.bio cell lines running at high throughput, which is great for our customers |
| Both of these figures were favorable to our internal targets, despite the revenue shortfall relative to our original guidance |
| The combination of our expected revenue growth and decrease in OpEx is expected to drive an improved cash burn level in 2024 and successful execution here would also put us on a trajectory for further improvements to cash burn in 2025 |
| A famous example, one that I like a lot is Millennium, really from the genomics boom in the early 2000, huge platform story, amazing leadership, great technology |
| So, okay, in summary, I’m really excited about the great work we’ve done in 2023 and what we’ve already accomplished in 2024 thus far, especially the work that was done to enable Ginkgo to be a one stop shop for all types of biotech infrastructure services |
| We’re really excited to bring on the teams, particularly as we’re trying to grow our strength in AI and modeling and ML in these areas |
| The government vertical has also emerged as a driver of growth |
| And I’m excited about the technology, but in all of these cases, I’m especially excited about the teams that are coming over in these acquisitions |
| So I am really excited about it in that regard, especially in these near years where we’re trying to make sure again that the cash coming in from non-DVS, earlier research, funding and fees helps us not need to raise |
| And I think what’s really exciting is what we’ve been doing over the last year and a half in particular, is moving to like a new generation of the infrastructure |
| So we added several new biopharma programs in 2023, including with Pfizer, Boehringer Ingelheim, Novo Nordisk, Merck, as well as successfully completing our first project with Biogen |
| So, it’s nice to see $1.5 billion of revenue potential coming in from downstream milestone payments this year |
| Proof offers massive libraries of obligate mobile element guided activity, omegas for short, with RNA programmable nucleases and nickases that will enhance our code base and overall offerings to pharma companies |
| Excellent |
| But certainly, there’s a lot of opportunity for us to achieve downturn value share in 2024 are much higher than the $4 million that was achieved in 2023 |
| Statement |
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| When looking just at the fourth quarter of 2023, Cell Engineering revenue was $27 million, down 49% compared to the fourth quarter of 2022, primarily due to the decline in downstream value share just mentioned |
| Services revenue, which excludes the impact of downstream value share, was also down year-over-year |
| Second point was that when you look at Q4, it’s not a great sort of comp because we did have a specific contract amendments on a single customer that impacted revenue negatively in Q4 |
| Full year 2023 adjusted EBITDA was negative $355 million compared to negative $173 million in the prior year |
| Adjusted EBITDA in the fourth quarter of 2023 was negative $96 million compared to negative $76 million in the comparable prior year period |
| The decrease was driven by lower revenue and higher operating expenses year-over-year |
| Yes, we did – I did make a comment to the effect that we did have a contract amendment late that had a negative accounting impact to revenue and so that’s really what happened with revenue |
| And then building on the operational improvements discussed on our second quarter earnings call, we are constraining OpEx in our microbial platform, which is our most mature platform capability |
| Stock-based comp, consistent with prior quarters in 2023, you’ll notice a significant drop in stock-based comp in the 4th quarter and in the full year 2023 |
| So I’ve been bouncing around, but did you explain why the program number, and basically you put out a press release on the 10th of January saying you were going to meet your targets, and the numbers actually came in below on the programs, and if I missed the beginning of my apologies of why it came below those from the results |
| So first of all the, some of the newer programs we’re doing on the industrial biotech side are coming in at a lower revenue per program or booking per program than what we’ve seen historically |
| So I do think that is just a net dampener on biotech versus tech |
| I guess the revenue per active program is like, why is that falling so sharply relative it is |
| But you can – can you elaborate? Jason Kelly So on the revenue point; we came in a little bit below |
| I think it is a tough market in general for biotech companies, and we don’t want to have to be raising if we don’t want to be raising |
| So you do have like a component of the new program mix is industrial biotech that’s lower than average |
| The decrease was driven by lower revenue, partially offset by lower operating expenses year-over-year |
| And we have – as we have scaled at Ginkgo, we are seeing a 40% to 50% average year-over-year drop in the cost of our campaigns |
| And there’s unpredictability to that as it’s fundamentally a question of new sales |
| But there’s still a very meaningful number of industrial biotech programs that we’re signing, which are often being signed at lower than average |
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