Ginkgo Bioworks (DNA) 1 Mar 232022 Q4 Earnings call transcript

Good afternoon. This is Anna Marie Wagner, SVP of Corporate Development at Ginkgo Bioworks.

As usual, I'm joined by Jason Kelly, our Co-Founder and CEO; and Mark Dmytruk, our CFO. We thank you for joining us and look forward to providing you with an update on the last quarter and full year '22.

As a reminder, during the presentation today, we'll be making forward-looking statements, which involve risks and uncertainties. filings about Securities these our to Exchange to more learn risks refer with and the Commission Please and uncertainties.

on packed providing providing as to call, our deeper on a we our we also taking for alluded got agenda strategic more potential to but while we'll the today, see today We've dig time we'll the standard downstream year format, last progress priorities. an in Ginkgo. financial on our information our the update value be and guidance for follow at In particular,

questions the analysts, enter Q&A We'll session, and and we'll take public. from the investors

those You ginkgobioworks.com. submit #Ginkgoresults or in at questions can advance via Twitter, to us at investors e-mail

Over Jason. All to you, right.

drives decisions do our many scaling easier much and for even Thanks, make the want Ginkgo, in strategy and of we that the Marie. Anna always mission start long-term day-to-day We Very engineer at biology with programming to by simply, company. to cells. we platform our slide our because

So -- work? An simple research to Research for biopharma companies the is a way how be a does Ginkgo work biopharma really aren't outsourcing CRO, traditional are their don't In us. they want But called to companies just Contract that that think they're that would outsourcing normally Organization. about industry, research CRO, easy that to do.

do that that can't whereas assets, coming to automation IP available they're they when Ginkgo, aren't Ginkgo's our internally. running like chemical, to data, to or animal other in-house. an outsource really a Think scale, They again, access work synthesizing study it's want themselves

refrain Schindler, partners expertise unique well. Bayer hearing we talking bring last in our and partners, open saw what our external new and Novo as in similar Synbio. here our discussions deals we're comment a saying You who can see year large of one about in a to with biopharma Nordisk, are Marcus mirrors That's they capabilities complementary and CFO, from

have we have of scale an automation. is obvious the our most that asset of internally don't our The example customers

build So we've I'm physical invested custom hundreds hardware here of factory. millions sitting to like Boston. software well to where lab of in today, as as to out both date our run a dollars That's

the we're October the excited As you right to of coming of be see super video technology software and that's that a integrating on XXXX. here, that in Zymergen acquisition our newest in closed the can automation of via

five PhD potential pipettes our a the on as like lab listening call, at is available hand. really here. service. customers a infrastructure all logo working For no this quickly at with MIT, my to years I during in I spent the down this Look, my you pipette bench

lab do associated in with making cell the services lab Biotech and use to lead automated work There and me scientists are of future our are instead automation time the instead designing is who ultra-low clear happen. of put Ginkgo running to should spending engineering that experiments that throughput down Ginkgo's make at customers total pipettes. their are to really with It's pipettes their work. brilliant experiments their be hoping will scientists hand by really

manufacturing better This don't R&D. up. In I'll you foundry is but the scale. or unit the The normally gets output cars, see other last of in in point that facility something make see as it fall traditionally on you is goes costs microchips words, things in our like with this

So they more have customers scientists pipettes at by that those getting capacity any better. will year-over-year, our Ginkgo the Services, that unlike aren't expect using have we

same do call this important the this really has All code asset about customers, projects generated lot tools. data. its and we a mostly We is automation secret that larger big generates are data, hearing been something new you've because grows sure base AI Everyone these data our the algorithms reuse The I'm year. we this retain commodities. rights each that of to year access when algorithms. to for

to you really to service. types what's space a built in a it own won't a And Ginkgo model. again, for our every the of customers, in this product see day. are Ginkgo available train customers. very to biopharma has adding proprietary unique our you space And to so data pipeline, the use company, make the but AI to drug company, develop a asset pipeline to an a to We would drug is these available Most is not you biological themselves the models companies here. and And as keep asset is like their there want this services

to discuss programs minute, for new in programs in our Mark am QX, XX I proud will to financial emphasize a end of range. performance the us the took adding full which of high towards XX want So how team but our year I for guidance the

Each of first combination like a this the IP the at of the new just XXXX, mentioned. a demand only and On is adds This programs. to service of downstream compared value, to deal. Ginkgo drive assets, quarter right, data added I scale we program foundries huge four revenue, our where

bulk are of have most into this budgets, valuable our you awesome These see. left ag program and which the biotech the penetration can to they see biotechnology. some that biopharma in The large is and of industries, industries side, by growth the on products was driven R&D

programs diversification downstream demonstrated signing we're and we share in closing. in types value both and XXXX, up the the markets in we're in of Overall,

valuable allows especially underestimated This diversification for often services where I is. a think type the it's platform. of shift is, to action us that how

go can pharmaceuticals, there, there. So industrial demand area if go certain or of biotech we we area ag, lot there's a certain in in can a

whether conditions deals whatnot, or or can certain types move. the royalties equity of we market it's or If favor milestones

excited range about the diversification we I really am 'XX. in So had of

well. year was it think for sets up us I really us an amazing that

the and strategic into section about longer business well. financial another had monitoring recurring dig will quarter of biosecurity contracts in towards solid coming we're we've at transitioning my some that about up, as excited doing business Mark and that been Biosecurity airports. like highlights very term talk I'll

ended is of and this a an Finally, the of provides over advantage on source in we year this which us $X.X multiyear market with important sheet, runway cash billion balance environment. with competitive

right. off on. now dig I'll and hand it the focused Mark of the through things numbers, to we're into we'll deeper then to All go some

with Thanks, of Jason. I'll engineering the our cell begin discussion business.

business Before is that term I this dive you cell in, is may on we reflective we're foundry revenue to the We use of done of referring internally. historically. as notice the instead slide we've believe engineering the and more revenue

not our in it time is And in refer this incorporated way we XX-K. this to to so it to this it forward, so make a into decision bit get even a if updating be did mouthful, filings we'll of going

XXXX, new critical which full Jason programs of new cell As us mentioned, and in quarter XXXX to Ginkgo's engineering outcome value. for are long-term the growth believe we driver is cell new programs added compared as cell the fourth XX XX% year the to a we the brought to key XXXX. year full represents XX platform a This of programs

of a to total diversification XX fourth active XXXX. customers relative XX of the customers fourth in quarter of supported and represents in the programs platform. in active programs XX on the This XX We growth programs quarter across our substantial XXXX across

the compared compared of Cell the the million engineering was XXXX, $XX up XX% XXXX contribution engineering fourth downstream quarter in revenue of the -- the of the to $XX in fourth share $XX an was from to in quarter, quarter which fourth quarter services Cell XXXX. increase value million of to excludes revenue, XX%. million

million execution Cell demonstrates third Bayer saw solid increase from to of to of programs. year in Cell full compared cell meaningful the of to sequential $XXX XX% revenue compared full We $XXX quarter XXXX, the engineering XX% year the a increase including engineering for an XXXX. scaling, XXXX, an engineering and revenue new XXXX. year services which was million, a was contribution revenue increase the compared services platform full the

Now turning to biosecurity.

of million XX% continued year million to perform $XXX generating $XX was increase fourth in to an of Biosecurity full quarter. the compared the offering the Our well year quarter the XXXX in XXXX. revenue revenue for of Concentric full XXXX,

doubled testing original exceeded guidance we Full to through primarily biosecurity back of year. previously more XXXX, services March announced guidance provided in than due the durability the year revenue COVID of the XXXX and our

X XX% in in prior part gross products. quarter fourth by decrease The approximate driven was for was inventory an decrease percentage margin sequential point margin from in performance. the the gross quarter, purchased an Biosecurity percentage reserve

million commentary provide the is in fourth shown comp, from of quarter I'll stock-based where million figures now exclude OpEx. on increased the more excluding P&L, these quarter expense, $XX rest in compensation fourth of to $XXX the And R&D with expense, noted, separately. XXXX. of the which stock-based XXXX Starting

expected as we of the stock-based in latter in year-over-year and to growth, quarter in which invested expense, expenses, from operating acquisitions our million in expense functions of our support as increased G&A same to $XX XXXX at had rate. the comp, fourth quarter various excluding closed fourth million in items layered quarter in the four expect $XX consulting relatively the not XXXX. high the These the to fourth do continue platform we of we increased

example, million is M&A For included these of integration expenses. related onetime $XX numbers in approximately and

full expense full million year and expense $XX numbers, full million incurred while full R&D M&A of approximately in year. in Included $XXX $XXX XXXX, $XXX $XXX these one-time the G&A year increased XXXX. from expenses in the XXXX year increased the the in full million the XXXX in year from in integration to million we to million

about functions, offset. we'll could for By core targeted quarter which decent As point. transition you we'll out expenses, fourth one-time G&A and costs starting business, and XXXX end R&D also costs of XXXX the largely support phase levels, in make think is the some related Zymergen G&A largely investments certain a the instance, excluding XXXX,

income to as financial detailed number to loss of adjusted more as items, and/or and measure Because in includes our our Net of we profitability. statements. these that of non-cash loss, look EBITDA net is it non-cash important a expenses our other more fully indicative nonrecurring a note

million Adjusted the attributable COVID segment quarter $XX million for $X period. was EBITDA compared is the negative decline this to in as Nearly positive comparable the prior declined. services of demand to year biosecurity testing half in

to adjusted $XXX release. full compared provided A million XXXX expenses year by operating XXXX. offset in by Full year reconciliation earnings this negative higher decrease in in million This EBITDA appendix year-over-year, of EBITDA and full the $XXX to is driven the negative presentation higher was our was revenues. partially

quarter full a invested fourth million, was the optimize $XX we our year CapEx capacity and was the to our increase $XX initial year capabilities. CapEx beginning which XXXX in we the million, in sequential as boundary XXXX of significantly sought as efficiency. at as below finally, capital expected was of expectations And in

CapEx similar XXXX. expect at in levels to We remain

a becoming reminder, relating accounting to restricted in company. modification ago release year disclosure units Regarding as issued provided prior we our extensive to of the stock-based a a the compensation, public earnings XXXX GAAP QX for stock

quarter step Our stock-based fourth down million, and declined $XXX our and pre-public as sequentially restricted units expect the XXXX. comp in further a the of substantial XXXX of a we normalization stock in company impact was GAAP

Before the on to two guidance, like I XXXX move to to I'd financials. relating XXXX comments make

growth after First, we going public. status emerging graduated from shortly company

first timetable, last on filing And an so our year is accelerated earlier year. days than this XX

our we to some our we finalized, time While EY and numbers and complete at need extra believe procedures are auditors documentation.

filing automatic our notification possible, within extension intend We late soon XX-day event period. XX-K the as as are in of a but file submitting any to and

also Second, to internal and XXXA our required Sarbanes-Oxley first on we environment this control which are report under in our is XXXB. sections year formally

statements. the weakness assess accuracy environment, on While material in control SOX we our financial bearing a had it of our did no

certain can our by weakness the The we internal on in XXXX to team; principally in evidence flows. be further and that supplement due level two, and to external operation the team, in remedied our to order training the expanding extensively controls. believe we to: automation and of documentation was resources This investing something we need produce of specialists more the one, fact of data is rely

which QX from new I'd acquisitions. thank SOX we work multiple progress substantial, the the in done business has grew team to company we we've like easy tremendous is lift all QX to during and completed were in for where for year significantly the not made an date. a been public to a the and

provide to outlook our like commentary some I'd XXXX. Now for the full on year

efforts. some growth, We that new their to XX% to strong XXX our environment. And remain of in in We environment XXXX. advantage might our add programs This as the work excited customers about macro look reflects even expect guidance pipeline to year-over-year. despite program cases, environment R&D outsource another year

million. We expect total revenue for XXXX $XXX the be to year least full at

revenue. of to and any Our cell value of over downstream course we is impact revenue $XXX at million, share engineering guidance least which of ramp expect the meaningfully excludes the the year

here represents are pause more revenue and that we growth to because that in our know want are aspirational from XXXX, have employees this. to listening our than XX% employees this I higher and call, we services are our -- targets listening although, goals this internal even

investment we in we'll see However, and continue an that maintaining this very and credibility business operating as nimble we with want to important community commit outlook us environment. the the to reasonably it preservation remain to to is cash today. with And reflects expenses

in of full services business I XXXX. growth prepared of towards the that that to guidance year still in To And we're working revenue million achievement our time. the at including $XXX XXXX is for over of But given quarter supportive also at expectations downstream want the represents to we cell additional engineering clear Cronos least share XXXX. that be this value milestones. are fourth point, services this give growth guidance only our of of our revenue XX% XXXX, lumpiness potential performance

range Our least $XXX at biosecurity million. is guidance

of we supporting just from COVID-XX. nearly half recurring expected be monitoring emerging come development and as in pathogen infrastructure such product that Importantly, to biosecurity this expect international are partnerships and more revenue federal beyond to nature, lines

half of the comprises primarily COVID our K-XX For the that businesses. testing remaining revenue,

guidance to how years. couple have approaching past are we similar during the We of

year. have we testing that business through this last the commitments of includes we guidance to that into, full Our visibility remainder specifically expect

We We on usual other included year, inherently our second is have reiterate K-XX K-XX marginal the testing have although, half that COVID and of biosecurity contracts, a working state contribution with the opportunities we have governments continue projects. we even from services, business do business where testing caveat COVID the to testing known in uncertain. only the

remains quarter in overall continues and execution a recurring years to as strong In company's and cell expect coming are solid streams meaningful Biosecurity we pleased in cash summary, over we billion and with growth progress strong. more XXXX. growth revenue revenue perform the position well of total a engineering, our of expect We from and and contribution the outlook. evolve program had $X.X services

Mark. Thanks,

our Before strategic on I section, the I move guidance to on approach comment for our to want year.

fair us in services So engineering didn't part like cell of last we and together of downstream value a that as to got feedback combining year, share we the XXXX. people bit revenue guided

we seen over year, can as value you've for be received timing share, the past milestone of And with Cronos downstream the those unpredictable. achievements example,

the to of to of going we're to XXXX, only services out story. in So revenue some guide the take quarter-to-quarter noise

listening output internal is The on is target said numbers that converting we're XXXX. in in I efficiency cell a what that. in Ginkgo increase team about XXXX. aiming year million today to at we're deliver want cell do least engineering Also, improving revenue, services something than engineering to this Mark The over there engineering the cell reason to platform reiterate represent for it expected in they're our Ginkgo of higher even pushing business. although into higher services one number in knows does $XXX the progress focus a XX%

we're for make context, focused up you able were sales build that I our many focus And more launches our and onboarding sure shoring wasn't handle infrastructure our systems 'XX, on in 'XX. program In to want primary demand we per really onboarding the quarter. to give services. To program, to

and I'm And how super in the I keep But the And coming there. biopharma biotech nicely. industries. see did and into happy budgets 'XX, larger R&D wanted and we we're demand ag us in to to that is I think of pushing went both that, now expand with going

in deliver we all Ginkgo. while on us costs about So that in on the running driving the big to down keep 'XX, platform is efficiency challenge for demand

that So we how drive a by standardization. First, efficiency? will

services. more about good trying Ginkgo offer a this. us of for We're internally enzyme talk customer is This offering actually you see a get to So the to we efficiently. is standard more work example may drive so to the easier us that

for it reliable. And the too, projects customer, that's good the makes more

in customization looking in engineering. the of are However, cell majority for still customers today, market the really their

little I for important we so all us, up right? meeting efficiency utilization all operational snapshots, projects approach our included a you across weekly can and get sense from of most give to drive you review recent projects. drive this, across few the weeds to the And so improved business how our And our most here a a to facility is in of our

are But our output. XX rate these in So deck. our that on measure of slides call see three out which top, you we is can -- the something versus what against plan, we card variance internally

work. billable measure each basically is a one company. the of the this those So of of columns teams of And is

about it a the a Is see talking you spend they can time of a Is the getting we On by chart, the of are planning it side so where program. And right middle broken the problem? problem? out on demand teams lot similar a calculation chart stuck?

we're of program is is how an are it. those plan. is where on So the matches ideally, the the the sort one much a each XX-degree programs performance size running, dots program And going line of the on the of absolute through basis,

time lot And spend have so we of the a deviation. the largest ones on that

the a And snapshot the to you address can we on and foundry. try what see look might of do bottlenecks bottom, ahead down to on

are the so teams. rows there foundry And individual

the red, areas that relieve You us allow a bottleneck, If can the it where into greens. see be bottleneck. might are That spare tap to we capacity might some we of in overcapacity. in

here, labs staggered solve and overall, equipment leverage and to a the performance our at supported software automation implementation, utilization. proprietary We is like though, all boarding, scale. And And overall by most important at S&OP we effectiveness like and a we shifting and infrastructure factory. bottlenecks, point treat look unique people tools running

the I we try to we really our at else leveraging as is hit out factory of scale, doing that anyone anything heck the goals will secret don't a running of like our it know in XXXX. and R&D Ginkgo. biotech like be Approaching sauce

All right.

to on strategic the topics. Moving

So for Ginkgo share driver critical has first, potential downstream value value and financial is for a us. significant

spend in that digging topic. on time want I to So some

Second, in see a biopharma, you'll we that grew that. ton through super excited XXXX, about

We will that. continue

going our I'm about there. strategy to So talk

of the we're to biosecurity finally, May. in given projecting health in end the revenue emergency then 'XX, in And U.S. public decline the COVID

We we see It's recurring not mix and significant to to programs, don't to infrastructure-like describe at revenue also as you'll more and never plan we this increase beyond. We stop as and more in look a COVID 'XX translate what business. fee-based have. However, doing. a would we something biosecurity expect

going to talk it. about So we're

Okay.

in. dive Let's

quick the is business. this economic programs a fees unit business They snapshot of just So and page our of downstream upfront or Ginkgo's value. really drive core both

As the on more over ag. has the customers. penetrating you'll And quite by markets slide, end see like of left traditional mix past entirely biopharma and our I changed side this year, mentioned, driven biotech bit we're a program third-party as

happy including mix our each And how Those I'm see come what has and diversified revenue, really on the top cash non-cash upstream with last the program programs services is right you can consideration in year. also expected future to is of statements accelerate this on value visible building. today, not portfolio share. large potential we're as a year. value But financial the that but with it come downstream It's programs

So deeper value let's downstream dig that share. on

Okay.

value different and cut of words, Royalty In that the and the structure our other are are will markets. equity. most milestones margin they industry. common there across all So downstream categories the all of royalties, three reflect rates share: often of Royalties verticals.

They higher lower. and full our our also in we'll lower margin that leverage the program the rates chain. industries and in vary words, in see by ones higher value Rates role by stage. in So industry other in royalty vary

program to the illustrative next does it we'll vary program. some but numbers show So slide, on

up biopharma and side, milestones. in be deals ag. in And have in for in to types last these value milestones. a pull you'll that, success customer's we're order more in space to for a you'll forward growth when We're words, the to market. product see right time pushing and And hand has technical compensated notice longer particularly In year increasingly other deals of with that significant the programs the signing on

it's the some product. a does equity gain whole becoming Finally, Ginkgo. share for been value common we downstream tool us diversification historically, single It has benefit, form company give of a but useful less versus to exposure for us

growth biotech on and And our by and greater a milestones portfolio. part that's much as the has really However, big royalties our customers third-party this takeaway been just of slide. driven traditional customers, have become

'XX our of combination compares our You'll see than two XXXX quarter have some about that new years of structures, XX% ago. those -- less to of a programs programs two and

Okay.

it wanted So model we when value, have downstream even information, share has previously. it we think value to hard more you but financial is perfect data have does have than -- this on to significant we and

it. to have So model you all tools better

on So our in you'll project how a here see to from that royalties, of ranging royalty rates and with by digits double-digits low-single industry showing chart vary revenues. industry, type product

on all because easier can much we other hand, contracts. add dollar up Milestones the just you quantify in potential the are our actually to for

And individual these not don't want not we're enough done so like kind that contracts away of of we've that giving to. us

So aggregate aggregate we cash to added billion about milestones in to $XXX in this. million XXXX. from potential $X revenue of XXXX were able compared We

to be our partnership that shared want over from a which just of $X we in Selecta, press previously with release. And comes I billion clear,

So listen, percentage that amount, to not that $X significant trying get we're it. the even you we're a or full convince billion of going to

pipeline milestones, you for for particular, in discounts where get us as a You a to ones. like those modeling of bit technical factor have commercial dark to drug commercial the can success in think green this and

like that milestones Though is are XXXX programs. what Ginkgo those I about XX across

think are for the healthy are our portfolio I we again, So business. in ways diversifying

cell companies service we we've we paid private provide our engineering from XX Finally, addition equity equity have others that -- fees. in where attempt to valuations going received but equity with downstream in aren't for to stakes to been for for we companies, value

we're lot potential of all we're and because of quarter. that growth, rate program every about value of a potential new value, new that's the excited So adding

has be into for big to get happens technical potential And needs customers at turn us that checks. to finish. it to needs value And that really eventually, value Ginkgo. importantly, to commercially work However, to the when programs relevant realized so complete,

believe show we already. don't really do able will yet. you have while do and of examples $X doubles them and that then of product that over we've of more tens royalties of in of been of and through love flashy that, we've recurring past to streams couple come the partnership, we you What singles about blockbuster revenue see are some been millions And achieved can We've to those a several of up have on time, the one-time sort And million stack our we'd left. we Cronos which discussing revenue million is quarters. milestones

Finally, although we portfolio. to programs we And will haven't on expect how sometimes there year out. two, liquidity positions in varying philosophy asked these monetized basically our ends do depending up or our be play on equity opportunities next We're date, this. the it in that about

Okay.

I biopharma illustrative together to program. So laying an discovery all bring by it out want

the the this difference and fees, milestones a and royalty see even timing potential embedded single-digit can also market. You between in royalties rate in

significantly we program that Bottom our potential XXX our add to in downstream the current line portfolio. XXXX excited potential programs should is, downstream The value I'm share about resides plan strengthen in really value.

I you forward progress updating So here. on our over to time look

All Okay. right.

is of lot areas to share. let's downstream excited talk I'm biopharma, which the about So add of value a one

market the in it's for newest the new going I'm terms to valuable us but most because biopharma about continue you it market growing Ginkgo. fastest and So also remind to for is of programs,

the in about modalities, okay? biopharma therapeutics that These come referred So the to industry to flavors. in thing as industry many understand is are different the

or therapies and is molecules like cancer. insulin that's Then and modality, right? So that's for is modalities RNA COVID another drugs drugs and cell aspirin therapies. Biologics small like vaccine or have you statins, and therapeutics the modality, antibody newer one like gene like

up platform is support that the manufacturing top, very these a of and the in can in discovery, modalities. programs industry that's So variety Ginkgo and our unique both wide at

we skeptical these we all very do leaders signed and How across scientifically modalities. know companies R&D have that? Because with deals

proud are projects. logos on own So R&D have for can very you see customers these highly internal can there. use that they teams the the sophisticated really all their These of who capable typically slide

a means lot to with it choose when Ginkgo they So us and work to stat.

very automation, It asked would or at as a customer I because us? things, is do And the start why simple data own IP it can't It's or customer just that question labs. their I if in is is So get could today, as the scale as a said work the of offering with simply their access it hire Ginkgo call they that. and scientists own frequently in-house.

to won't up. have or differentiated have something these We customers sign

the watch recommend potential often or see all there's biopharma data have as review you our their their the like, since I'd Conference, area of to I time want modality customers that Importantly, to in scientific it platform shows example, application interest don't specific whatnot. of in for there. my biopharma in focused Healthcare but back today, from the largely a of room talk JPMorgan on was just customers January it lot

therapy. JPMorgan over this on And meetings shared you in gene had XX we in at the cell and year. fact, see I editors here data could And right customer

to difference different in market, and a sell So a for really biopharma years thanks in and Ginkgo the night from ago new demonstrated to modalities. having of in this data our day these all ability couple that's

Okay.

asked the comes also value support get therapeutics biopharma for is, I we of to why bigger back reason in downstream a like, such question didn't R&D big cell start near-term has service And model. Why the budgets do share business value to start just and revenue market? our if in the that So lot industrials opportunity biopharma market? engineering Ginkgo the the given

services are business. I a remind we So you, will

enough be simply us product a would by customer A internal differentiated is. move that to market, sign product management years overcome choose at the cannot have They have And work enough signing a the is to a that company So platform wasn't drug into we to of Say, like or up a whatever market Board deal. can order our great the that platform to up five us. with development to customers in our good enough deal. groups. means to because just ago, enter has for or tell R&D thinks a scale they biopharma

scientifically industrial R&D very excellent could, overcome on resourced are smaller, I of resourced. and mean very other the the the less groups. scale We biotech hand, groups these well

that industrial And who right? why most it operating that's reasons, market. today, Like been for to in there biotech, Ginkgo sales started right? know So we we in or considered companies if was you a for as while. are, we've either result, a compare It have,

potential But us deal from like get any a this. potential with who idea exciting seeing a minimum, don't we capabilities meeting first biopharma organization. perspective. that are sales are. can never customers of That's We're in what have within often literally have biopharma, we a heard at a our we And or expand that company, very once

manufacturing We deal in a same and group in can from focus with company real on. cross-sell different then you gets really go this a into like and tools. And so the group if research a they're enterprise is doing modality a modality one I really the groups and -- like that to excited deal you doing It's a sales. sort or these great research sell thing personally the deals. of from really

other the the on believe we is hand, market potential biotech industrial In enormous.

it nascent. biotechnology Biotech but ag. pharma -- on is or of things and chemicals more has it the that hasn't So like much penetrated into energy, market and like application so materials in and

that So market embedded grows, companies I so think in as with those we're that biotech space.

as We alongside that as industry of fast will grow just goes. it

model already model. customers mill CRO they been I mentioned Finally, it research the had like in contract, for things In the using on -- outsourcing more a actually be hurdle haven't They it. biotech, outsource have sell R&D. their just those used some of Like into companies the of of it industry. that stuff of lower run discovery. CRO they're earlier, In much services to to ways, to tends because actually this for to biopharma today we sort they as educate to industrial outsourced know biopharma, things we some

that's for to us, huge So the deals easier do. tailwinds a makes lot

Okay.

Candidly, I not I I today. This today biosecurity. think that's into So and a to this probably to from develop that dive continues bit want want a to I on investors, getting enough think finish and shortsighted. from nicely, bit business credit we're

on more little So to I it. a want spend time

Okay.

that the response source service did reminder cash we're transitory COVID efforts or pandemic of for a flow want during not Ginkgo I a -- So start simply to Ginkgo. a nice with public

lasting has establish intent always been to Our infrastructure. biosecurity

is reason with our is this essential we that Ginkgo easier biology to mission do the that make And and it responsibly is to for at that engineer. care. And

the that just required if kind safely. make cyber The -- think like a robust require as we safely. is to decades, to power and so were tools like expansion over biology you we comparison, using to tools capacity are ultimately of going And sure biosecurity of access robust sure the and make access of approaching computers expansion to synthetic security of those to

is importantly, And this not just conceptual.

recurring in year. As revenue to contracts and entities. this Mark significant our almost of federal discussed to past guidance, is with XXXX represents a more come revenue compared shift from his expected half That international

we're financial So long-term intent, like our our into and now seeing interest in filter outlook. of our results long-term usage biosecurity

Okay.

the tests and have the vast sampling departments that health to programs with does this like to what have of in our schools. So reporting correlates a number monitoring based. primarily the state U.S. our been of and comprised revenue public systems. Those So biosecurity activities words, been collection much then of and school programs, those revenue other primarily of have we COVID out our volume collect analysis date of consists K-XX In majority platform and folks evolution going and look business? our for

still monitoring, a in COVID to there's schools. Now sustainable likely revenue in path but it's domestic K-XX not

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to resource Advancing mission our short-term accounting we'll market will decisions is considerations, the based is We ensure or leader. not intensive. long-term market make on decisions Ginkgo make

to expect reinvest into markets expand our the cash stockholders. continue We and platform its on and into a focus value for back the long-term business to new company with to scale

future value. Market increases enable is to platform's critical cash for and our leadership stockholder which free our flows us growth. will Growth scale, ultimately,

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less approximately total represents million of this So give to of context, you XX my shareholdings X% than shares.

of out you don't over So the by to years. get ownership in level selling a company this

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Ginkgo. we'll So the if the growing you existing by of value make is idea only this shareholdings do in year more money our

Okay.

just upfront. for going formal with to And So Marie cover I'm Anna Q&A. hand Thanks. to I the want off that, that it to

Thanks, right. Jason. that. I appreciate All

All So right. Instructions] a moments. Q&A we'll [Operator switch few to formal in

I back all here. think we're

current question to Ryan from to So economic foundry We a then be there. Twitter, the larger able get going This from from climate. start more more and numbers retail. services the there always one through. given lot less Is clients, of that is I'm not or appetite

Yeah, I can take that.

So companies I basically and large efficiency. affects environment are small that think companies companies have in on And you this ways. in focused two different

our interest smaller companies, drive the it services. more does for So

like I think move to cost to outsourced they're we looking neutral. more more cut fixed spending, do that. it's providers efficient companies, think see Larger I

they're variable on external open and say, stop our that going either an option cut the small provider like a we're actually, is our efficiency, or eyes they one similar drive looking the goes to R&D ways, two to and budgets maintain back services side our so to external spending. cost to cut of internal company, and just their It on

companies, the smaller driving it So but interest. out in more wash didn't the the companies a bigger that little bit, is come

Thanks, All Jason. right.

the analysts to from take you Sachs. We'll want Matt Goldman just first your line Let's to cover if now. question Sykes opened unmute. Matt, I've from

Can me? Great. hear you

Yeah.

Yeah. Hey, Matt. All right.

not has end is that potential royalties. extended -- value terms our for of a change and rationale, know forecast. I that that elongate the in about any part Good that that projects the just in ask terms those including deal makes been questions. because inherent of it with really wanted behind I'm afternoon, rationale guess been that I the or on key things to of downstream like it the unpredictability my of is, downstream everybody. too, that, milestones we of pacing sure, We have unpredictability cadence of taking just the there and inherent I sort of -- downstream that, in value Thanks for like really appreciate of on or process

Yeah.

it. feel and take Mark of free So this, I can part to add to

been think that to the unpredictability, So want two we guide this don't milestones more In did things is year. actually would the other we have general, In happen. One, last unprintable right? the I words, happened saying are thought then we reason happen.

news that's So interaction with you. bad all for of our

whole in of like, milestone, hands lot our right external not the happen second, internally, then got and those hand. of of not whatever, end the at team our like at milestones what end is when on like or year, customers' the one the day, focused But a the actually makes

compared particularly we're are of think yield that us So things more the efficiency mission just not effectiveness that driving platform for I to doing will and the the critical ending. gymnastics

on terms do still that, come to you'll stuff And customer of the yes, will a wash dependent in out in various but again, be things, finishing.

what I doing it analysts so So with our like was for why. that's didn't what like internally. investors and was didn't and relationship happening I

Got it. you detail. much that very for Thank

Just question. a follow-up

and you've contracts As we fees, depending program is. revenue sort focus of past the on it of just foundry talked to of service and sort the on the type in toggling the about

try and just Given what's be fees that's to the to the in upfront there view is growth boost business? service, going to foundry to modeled, maybe focus increase R&D that those on a

of milestones the front then noticed a the just I more drive generating. little you're of in to loading, completion that one earlier part kind And certainty around trying necessary revenue based but you a secondarily, also Is bit about talked progress. on or technical slides creating clinical of that stream

can you front of loading. it And think Yeah. like

things in I the mentioned allows this diversity play options look, during So you like, the of of depending differently I I like one think to is on game this like, environment. what's talk around the the happening

a can drive towards larger concerned we're about like have deals if So We want we safety, the absolutely. margin of and milestones. fees and macro more more to environment, bigger

opposed more, or royalties, simplify as could to so to it, but later, equity. like right, all which, -- argue you pay say, Now

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worried harder and little higher So to easier about get to toggle without royalties a sales, affecting milestones drive not fees way from it's a it's for little sales. me to

to we watch have closely. that just so really And

do obviously, I we would think love that. to

it foundry it we and things, move future down sales about adds we adds and I don't safety code -- to growth all also It If fees. a slowed down to big Like downstream want faster profitability towards but we're is -- margin growth. valuable the the making we thing based, greedy with for value, scale, have, it you Ginkgo. our slow we're trying be is a like hugely adds mistake because

Thank it. you very right. much. Got All

Thanks, ahead, line. Matt. All right. I’ve unmute. James. Rahul Sarugaser from Raymond you opened your if want Go to

me Great. Can you hear right?

Rahul. Yeah,

our taking Good much Terrific. so questions. folks. Thanks evening for

that Should to average is around So to sort give directionality case just previous variables it's is it's you NPV per still us and the of the thinking look XX, NPV great Slide project, or of and kind of great it which guidance. lower? Is gave you of milestones, that that see be study, guidance given around good average study that? terrific million you of we from so decoupling now is case it apply the as us as Can case we $XX study it of same at your the $XX ultimate [indiscernible], when milestones million a to essentially sort on on see of higher?

and in jump might supplement. I and Rahul, let Yes. Mark then Jason

looks probability One a you of it of gets that trying plenty with were sort out is look, is like. it like to to at line And tools this the of updated to is what give there average things around, drug what time customers. -- look royalty the do these makes once there's are of we and data information that industry, by what okay, to look the this clinic, to rates package

provide And the between success data looking value. the that, you exercise at quite even with as across we're around your a it to probabilities Jason mix able we We're information, information program but the will that tools type It's of have. between so that around portfolio based give assumptions to and more there. industry hard then perfect to downstream a mentioned, and of on basis on share candidly, we're few that different trying quarterly meant hopeful make a

as very a for There any be is question you, this we with a in making quarter follow-on then what as leaking sense actually next Mark. expecting us milestones again, our need as those that estimates to And potentially milestones very were this That on helpful. decoupling, start million QX, will some Could more Great. quarter. over you to perhaps to you this $XX QX, in assessments milestones just give those were the -- into quick for what in quarter?

Yeah.

those. We work There ours we've do slippage we had actively as JPMorgan and the there. in mentioned during manufacturing that milestones some of largely demonstrating conduct some -- for milestones of are and milestone Ginkgo we pilots discrete completed on hit to believe still we technical had achievements. update, we see in that dependency successful two targeted parties that are effect, not So did facilities is the outside to working didn't QX

there's still And achieving so just those very more on to there. are milestones do but much working are work we that

our again questions. for Great. taking Thanks

want opening you up Thanks, line, to right. I Rahul. Tejas, All go if am ahead. your unmute,

a basis, milestone it leave on annually? that you perhaps quick even the something around disclose you. doing number potential of if those big start Maybe the or again. do of is Thank the achievement you'll quarterly anticipate you line you with exclusion time a guys. milestones of sort milestone Jason, think only time. Hey, I'll on aspect aggregate Thanks follow-up for the the

Yeah.

just who to I think like part didn't have enough -- us. want year with the have challenge done by Right. was it like the wouldn't don't I you is because think milestones of do that told customer I it announce the not, what year this like, that, where publicly was first big a quarterly we'll

share have So all more we we confidentiality of have also But able that's to we're you this playing sort with to sharing. with that's game and the been And of maintain to our with received. we're customers. hopefully happy today, why

do tough maybe on I for think the but new think in I programs and it numbers on on be so bit. so quarter, And will get how depends it to it eventually little the a

Got it.

custom color joys is And hope Okay. stage from this on year-end? demand Because of could to be impact any you customer And share near-term then that companies on the you mix have the a earlier foundry by your on working typically, versus vendor. programs of lot for of a with attention today standardized can get where services? you one of

navigate? sort hope So as you look to something how more the to you that of offering dynamic a is possible, cookie-cutter to extent

Yeah.

it's basically be right? history a this. market, about experiment mean Ginkgo, the industry we're to deals. So running what pharma I'm date, in -- the I right. honest, or all to like, if what custom excited do by cell of industry. an customer want And Ginkgo do in customer super is To All fragrance you So industry at we're ag you is engineer or look like the

challenge Your Okay, a the you want you protein, you want want to is, manufacturing. small a molecule, right? optimize

You on It's have Discovery. something over the here over all place.

Okay.

all custom Ginkgo at things. these receiving team the hard And has had of a very job

software our factory. stuff, flexible like logistics, that's of where a we our this automation, say it secret sauce. And somehow run the all a a common lot infrastructure. is lab lab running a This And I through

not We variable have is a extra test that's that or factory. same that like R&D No, a a the being It exact running is very like factory, million run hard. challenge the no. diagnostic we're times through Quest LabCorp, and

project that keep either So again. or a talk seeing need whole we no that we're over customers, still a we we people of portion a project, seeing and customization, over going is, to like sometimes offer to What problem. as are

better is therapeutics might you So a if this enzyme, a okay? this find of good want company, were, me you example enzyme right? say, an And

needs enzyme want new to be enzyme, as have of enzyme like they they those optimization. probiotic make an a you care molecule as about a and it could company enzyme enzyme It for in so Synlogic laundry optimized, that Like could is that bugs a chemical. you're little be so biotech, be to okay, or industrial a small detergent a part pathway four a

kind same of The third those all of optimized. project. to Well, be feel enzyme needs in pathway like the that

running more close deals make the essentially would It faster. It would experiment we work let cookie-cutter this the could And faster. to where that so that's offering. we're make see happen

like The is underlying really -- money out about something. makes industry, to customer is success, know the I'm have have they -- to they're engineers. spend right? more excited budgets. tool on super the time Because get of its thing this what a money like research hoping software. belief industry, that is what over my unpredictability software, starts certainty company the going not tech not But spend They get bunch a They of software software spend they will that -- of not is biotech money to

more that where predictable. a loop pieces to though it. a more nice can we standard, bridge going building. are are part pre-engineering idea they're little the of the there's a building feedback and going carve in standard out is bridge the Spend confidence customer like a offerings getting of to even still hopefully, building to something money get And get biotech is think you're with confidence the higher And they we a have a on and or living

of 'XX? in it. Mark pretty needing fair share the cash And quick burn dip Mark, tap your again? can underpins color 'XX you a on material that here. capital it for is markets one not for Got sort essentially to one to And confidence assume any in

Yeah.

kind for just start of So XXXX, frame it with let's you. to

consider framework. you a EBITDA, It million. like. And of sort from think in million start so then a $XX cash CapEx if roughly in big would $XXX the point to -- there biosecurity can was roughly was including cash XXXX burn, XXXX starting look or And operating a contribution -- thinking the was that you of what We're that's I about good XXXX.

don't number. guide the cash burn to So even though we

from are of to that and course, biosecurity business. not that What you also assume, is big you're expanding the do contribution we can assume going get

And there so some is OpEx expansion.

of But that's far sort get out. the is you year. not to think key And this cash And will the reduce company that the burn or we're in a initiatives so let that for can as one the efficiency XXXX. of -- that sort burn. us you should would focus levers where the sort XXXX, that huge what operating place Jason mentioned, ultimately do is think foundry. in we absolute driving on a within core of discussion, be of about that commenting

Appreciate guys. Thanks, color. Yeah. the

year, Yes. bit efficiency a other little job and add If and actually in without ballooning our more spending. really programs I'll that. do words, more we more this to drive one and

scale efficiency out listening. to focus for is in right side we If more scaling on we efficient the right very right? lot system I platform and like So going it's a this this to up this healthy problem, of the now, of time a would are people a in the Like having of be the have us on say, be future, effectiveness on sort in programs. dream. terms working work to solve if a future now, company delivering in against We

exciting. this things So kind of it of and -- for the What strategy down it's global the company. what internally of this those I'm really that excited that's trying middle is really between making think to targets. engineer. year, alignment biology that's And the easier I particularly commercial we're about there's why and do an It's our one it's right to

tune from better as doesn't standpoint, good the a on really just feels I like delivering like a the mission practical very like we when feel up mission getting foundry. That as So way. at selling like like

about excited I'm 'XX. So

it. Jason. Thanks, Got

Yeah.

Steve from right. All Mah Cowen.

to is want you unmute. line if Your open,

Two-parter Okay. the here biopharma Great. Thanks taking on for the questions. business.

programs, like about industry the it of on So active is mix looks XX%. Promote

percentage you expect that So mix do continue forward? going to

don't And a in lot then pay that heard to of cash of a money discussions, second lot part, upfront we've want conservation concerns. of partnership from peers their partners there's because that

maybe seeing you're Could the on help services bit XX% versus trends growth suggests cell a give us reconcile engineering aren't the that in However, upfront and color that. seeing us of in you more you value. your downturn maybe XXXX on weighting

that. on comment I'll Yeah.

of would where to So we terms in go. like like

capabilities. these is of a highlight to it there's show and industrials. will I direction drive And That's the just don't seen have reason, our and of data, why in want for biopharma. it wanted it more hope main market first us I haven't I in Like said They again, lot talk, I more companies meetings will is us. untapped -- think to like We then to we think substantially excitement. some -- than the today. the we know

companies, If two one it it us have about for that the just of there more want they -- than I'm just and the like more similar product being large for themselves. was industrial know that not better to biotech, them side excitement on that breakthroughs they to said doing right? they more didn't would do waiting years ago, we're

do for our think increase you'll So see job like I doing us that if we're right.

I made terms In the from kind question upfront first on. people point on the that coming of paying of This Twitter. in is and so

the from much for to and upfront is all right. appetite what Like pay think you're hearing peers just I as smaller companies, not that. there's

companies so the For right? much say. I -- mean, -- companies I as I the budget larger don't budgets, have would with we don't large And biopharma, see that

it. Got Okay.

So the adds mix? more guiding new versus driven program growth XX% you're to, by that's just or

about... little want to comment do Mark, you bit a

in customers. of mind consideration new Yeah. a Keep that programs. we fee form as cases, It's in well. it's service new No, as will a the program on take equity upfront some for

cases, conserving you're to of kind that referencing situation so we've -- cash. some how handled that point companies in that's And with are the that's

growth. in all XX% that's So the

actually that taking a Yeah, lot. of quite lieu the companies, in can help so for equity help cash smaller with can Yes.

of guys. So we some that the do for smaller

Steve, and R&D or we've I be that don't R&D is thing the this pressured, about facility only The interesting idea thing or add, where getting in us. to budgets really leads a people of it's that, the closing might laying is an that past hard off are with something talked dynamic I faced want there when a know like

down sure as the you working folks of a in is hiring feels plant scale idea not budget and vendor how you're safer year. a cost environment you're to have when variable than healing so this can building next of or more with lot going and like that much a treat And and a new ton an up

macro in think of think actually could nice catalyst are a biopharma, environment as that factors penetration And the so type I a that increase we in be this particular, shift. could over about for time, what

Thanks the Okay. sneak just color. let for one And Yeah. in. more me

think when you milestones appreciate later the you and of guidance guidance you that date, removed at be I you when more mature have programs, a and unpredictability So why would providing because that at point would happen? yeah, Thanks. do whatnot. But

question. good a It's

I like right? some with I large happening think So don't you're just it there's numbers a know, to things of enough obvious thing, be at like law will more starting like point, that move trends.

that So do us it then I for would be I will say, to think you'll right? until it,

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to that like distracting just a that's event But start our of the the out like it. think enough I to of internally. way, prediction, maybe somewhere game form think But individual in outside because we're comes it's the along control of utility back then extremely the in extreme I just don't do there's there, enough want it. particularly of and wash we get I in

Jason. Great. Thanks, Okay.

unmute, right. if ask All Madeline your you. you want welcome Thank Blair. to line, you from question. are your William Opened

(ph). Larew for Madeline is This on Matt

Just wanted to go said back to you something earlier.

in more business the a that XXXX you making to phaseout to of some think some be the might Zymergen talk the impact. in mentioned I that be you that offset that investments little bit specifically of Could you're going you're where about investing? going

Yeah.

you -- about So well, our talk Jason, some do biopharma capabilities? some to of want the of

Well, know you that? so I to explain want specific the do don't Zymergen,

Yes.

OpEx. Madeline is really we're just about talking what So

into would end at of look of because of to by you if QX gone some to that numbers, sort so in be QX, we as And nature. they of our support costs certain going XXXX which relate will you're functions the Zymergen layered think have transitional

once the so integration And done. is

capabilities, core you're to the have sort some on Ginkgo counter R&D be of coming expansion, So out, would a sort to we sort and mammalian not back have if you're of elaborate. I'm have of example, but continued of sure, that. people. Jason, targeted so also some you We all investments that's going mean cost for acting want still that I in our side, And I going to meant right? don't by hire some

will and spend mammalian general, trying not to Yes, particularly some 'XX of I moves, in more in Mark saying, the In of do on say, focus capacity. is other would but us No, words, expansion, effectiveness you we a biopharma see lot efficiency right. the that's use platform. could as targeted

not functions it's foundry heavily just that And dedicated like like from is again, are that but more the organized weighted it's certain only that way. in our platform really the about there like testing not works exactly purely way, are

more not invest really and So our we there. functions construction, synthesis and to particular a want would But other on, to analytics. of so That's lot market. assays any specific

So to new build adjust without stuff. can having there, we

Great. Thank you.

from Mark questions. right. to your your to you ask All are want I’ve BTIG. unmute, if opened line, you welcome

on porting over be estate Just if we on deploy you to just you're XXXX? automation capabilities Zymergen XXXX Maybe about or status Terrific. real you And the do in the last racks. cards think planning the the question then that California. year. you're reconfigurable to as that a core and acquisition What any believe curious completed

is else extremely on racks the answer. chime I'm real the can the and Yes So someone the I'll to on estate. excited. speak in latest

when people You can Slack all Boston. rack channels time, Yes. here put I ask because in in go in up the our I can the show it will

we're excited that about automation. extremely flexible So

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integration platform so side. is on high And it the

on As product company. we acquisition Ginkgo the mentioned not product during is a the whole side

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Yes.

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when do this folks the monetize Bayer we we You've you about as and When much this, how you hear How think asset evaluating a called can perhaps engine? out code-base? into one of turning think believe. that's might should evolving I and commercial

Yeah. Okay.

So this question. a is great

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gene mentioning we don't start we that really billion on X,XXX X,XXX big genome or know like like all like whatever big, make sequence a or the over, were would X like with but collection. some case synthesized nice have website, our from I you where big, like enzymes like like We study. a like

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So that are that today. selling is -- we

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a sense? is Does today cell stand-alone asset make It of larger a data integrated offering program. as not product. actually are part offered only that We as that

that. quick Thank Yes, it And you if last ask one. does. I for can one

I'd for you've lead from be the then your curious Like typical seen your maybe any any changes a a closing and funnel you're lead time XXXX seeing beat I'm new to XXX close to our like here? estimate changes guidance for if what identifying Your of is time in XX program of enter it? And components if programs curious, as we just XXXX. deal?

Yeah.

So I one things. trying started can we quarter-to-quarter big current metronome potential across customers, it's that right? like I say is was the customers I make healthiest of the new this but inside to -- I've of a also And good points our as since Ginkgo. I I'd really to generally we like that's to two it's and way, a not here. year, new attached have feel total the the into earlier by similar vary going to sales say increasingly programs One, it's look is thing our seen both ability But like have right? them, Like set like

is is that then talking you the in an -- manufacturing you shorten have I mean deal, next close doing customer. deal, time you deal. starting biopharma, maybe thing about if a -- a new our like the thing do very you're have obvious our to deal know and That R&D that cycle So program was versus current I of to a we a different, to customers a a brand-new as state close one adding it's deal

take and exactly, don't But is but there committee know to time, we're steering right? Like The at, you're right? every what just convince brand have if three have I you new a six just quarter. a is on. to meeting it customers and so still online joint people relationship looking So months with a and months, process you

depending new your spend to under And new When you by current a kind -- legal umbrella So a can up faster, we right, all we then bimodal you kind the of negotiations, do money. it's things it's new a in whole It's existing of a deal, on but deal on it agreement. just a decision makes right? to boot get timing? gosh, and a deal on whether see customer place right? kind or like a average that of it's

ferments Great. to forward and see I’ll you month. I look next

be Yeah. It’s Please good going a one. do come out. Yeah. to

up I've Thanks, right. Gaurav, All ahead. opened your Mark. line. Go

going? I Hey. How in a if it late, is hopped so little covered. were apologies these

for Just two ones me. quick

that near programs. seems the It markets most case and relatively there this contribute Are terms term to those programs new of of like will First, the the more can in the remain untapped looks creep comprising end like cell in any pharma. new and bulk in materially XXXX the in attractive look really were X it to programs new markets end of for the AgBio midterm?

X is I fire. suddenly that where this of years of things benefit Canada actually there Great question. from being that's deal to or on like, lot companies, for of biotech and happening. made a a if be don't too I be. Like the was start-up certain was we were remember acquiring mean platform going we And one we did in these cannabinoids XX think where I I was that X Canada have don't clock things legal Cronos know. ago when like interest to you

three just ago where move four we're we flexible to could then, were that action even substantially right? the than back we is. more or flex into now years to And And

is have thoughts go it I'd wherever it it. probably, try to and to some I right? degree, what like watch, to Like just doesn't but make don't right? then like We is, do have matter, able to personal So predict rather my we go and

think do like you as the it's I country shore up COVID, at countries consequence changing is seeing onshore I infrastructure critical certain API you're whatever, shore like, or basically like don't -- called But it's example, on manufacturing a wanting activities, for seeing like and done. know, friendly of I think are to least where like,

the of So manufacturing they countries critical scale to weren't world, but years opportunities on their of. have couple the that polarized sure like you could to particularly in not event more might see there just think drugs the a economics, I because a API make ago, on as access of example because are putting in one of foot

one, pipeline. me. like in for on XXXX days? quick you. seems just that that milestones then Have It realized? just was guys you of still milestones right? it Thank or terms And I XX, think Or Got -- been XXXX that Of of between it early racked the a Slide it. a one million potential and any is up last of $XXX

give down technical of to a Yeah, that of Gaurav. are chart completion you technical just The would often, represent of in further [Multiple lot earliest additional value quite and a the little program milestones then are milestones of at them the context. not that Maybe bit stream kind a intermediate, of the Speakers] product.

yet. product our our that expected average see average program is -- to from wouldn't is sources those milestones so years, And given we couple a of have

it. Thanks, Got Appreciate Congrats. guys. it.

All right. Thanks.

up at America. Our last can’t is you. your from opened Bank you John might I’ve John unmute. John, hear to here question of line. We need

me? Can you hear

Yes.

guide I would Hey. Thanks financial like back on. go me letting to to for the here.

out you that foundry fee-for-service being the Is pushed to fair have purely quarter capture Given just that discussed fourth it expect revenues recent were milestones terms to the again, recognize you guys there's quantifiable would that that that, able sort of assume soon. revenues if range any milestone could you 'XX, and to in be the -- you great. in might provide be that and if of

Yeah.

in. milestone revenue So on We've deck, revenue have fourth breaks got quarter Slide did the in it out. XX that

the see quarter you'll about was so million $XX of it million value of fact in $XX downstream And of was in share the the plus revenue revenue. milestone

second the XXXX was sorry, of question -- then expectation. the part And

There I'll we We is think actively We're our on the didn't. There that very to some I much -- of were are comment are that. some hoping working reiterate very largely hit we those. much made sort is there, guess were the QX just that still there technical So but on work milestones before. I we outside in working control still done. of factors discrete

you. you. for Thank you. all Got That’s Thank me.

Thanks, last formal question. John. All was That right. our

remarks, So can got unless good any anyone's night. we closing say

Thanks, everybody.

Bye.