23andMe Holding Co. (Nasdaq: ME) (23andMe), a leading human
genetics and biopharmaceutical company with a mission to help
people access, understand, and benefit from the human genome, today
reported its financial results for the fourth quarter (Q4) and full
year of fiscal year 2023 (FY2023), which ended March 31, 2023.
23andMe is the only company with multiple U.S. Food and Drug
Administration (FDA) authorizations for over-the-counter genetic
health risk reports. The Company has also created the world’s
largest, re-contactable crowdsourced platform of genotypic
information paired with billions of phenotypic data points
contributed by engaged customers. This unique platform enables the
Company to discover new genetic insights, develop impactful risk
prediction reports for common health conditions, and accelerate the
identification of novel drug discovery programs rooted in human
genetics across a spectrum of disease areas.
“23andMe had a productive year with numerous consumer and
therapeutics business milestones. We grew our customer base to over
14 million genotyped customers, and launched 11 new health reports
for our 23andMe+ members, including the first and only
direct-to-consumer FDA-authorized report on hereditary prostate
cancer. As we continue to add value to our subscription product and
integrate Lemonaid’s telehealth and pharmacy services, we believe
we can truly help fulfill the promise of personalized care,” said
Anne Wojcicki, Chief Executive Officer and Co-Founder of 23andMe.
“Our Therapeutics group continues to advance a number of programs,
including 23ME-00610, a wholly-owned immunotherapy currently in the
Phase 2a portion of a Phase 1/2a study. We also remain well
positioned to pursue collaborations with multiple pharma partners
on a number of drug discovery and development and disease awareness
efforts. By enhancing our efforts to provide a leading
genetics-based health service and utilizing our discovery engine
for new therapeutics, we have the opportunity to transform how we
predict, prevent and treat diseases in the future.”
Full Year FY2023 Financial Results Summary
- Delivered full year performance in FY23 that was within or
better than guidance.
- $299 million revenue
- $312 million net loss
- $161 million Adjusted EBITDA deficit
- Solid balance sheet with cash of $387 million at year end.
Recent Highlights
ConsumerThe Company continued to add reports
for 23andMe+ members, and launched a collaboration with Novartis
for disease awareness.
- Launched three new reports for 23andMe+ members in the fourth
quarter, and 11 total member-exclusive report launches in
FY2023.
- The new reports released in the fourth quarter include:
- Preeclampsia PRS report
- Attention deficit/hyperactivity disorder PRS report
- Hereditary prostate cancer (HOXB13-related) genetic health risk
report
- Announced a collaboration with Novartis Pharmaceuticals
Corporation to increase awareness for Lipoprotein(a) (Lp(a)). High
levels of Lp(a) are associated with increased risk of heart attack,
stroke and other life threatening conditions. The level of Lp(a) is
almost entirely determined by genes and is unrelated to diet,
exercise or obesity, creating the need for greater awareness.
Therapeutics The Company continued to progress
its wholly-owned 23ME-00610 program in the clinic.
- Presented results from the Phase 1 portion of the
first-in-human Phase 1/2a study of 23ME-00610 in a poster at the
2023 American Association for Cancer Research (AACR) Annual
Meeting. The results showed 23ME-00610 demonstrated an acceptable
safety and tolerability profile, with favorable pharmacokinetics
and peripheral CD200R1 saturation in patients with advanced solid
malignancies.
- Dosed the first patient in the Phase 2a portion of its Phase
1/2a study evaluating the anti-tumor activity of the 23ME-00610
monotherapy in a number of previously disclosed expansion cohorts.
Dosing will be at 1400 mg intravenously every 3 weeks based on
Phase 1 data. The Phase 2a portion of the study will further
characterize the safety, tolerability, pharmacokinetic and
pharmacodynamic profile of 23ME-00610.
CorporateThe Company added to its experienced
leadership team and published its first ESG report.
- Announced the appointment of Reza Afkhami as Chief Corporate
Development Officer overseeing corporate development efforts across
the Company’s therapeutics, research services and consumer groups.
Afkhami will lead the Company’s current efforts to pursue a wide
range of collaborations, including leveraging the Company’s
pipeline of genetically validated discovery and clinical programs,
as well as patient recruitment and disease awareness
campaigns.
- Published inaugural environmental social and governance (ESG)
report that outlines the Company’s strategy and initiatives to
ensure ethical management, promote a diverse and equitable culture,
and implement sustainable business operations. The full report is
available to view here.
“Our 2023 fiscal year was important for 23andMe as we continued
to prioritize the roll out of our next-generation genomic health
services and advance our therapeutics efforts, while also remaining
focused on growing our consumer business,” said Joe Selsavage,
Interim Chief Financial and Accounting Officer of 23andMe. “We
continue to use a disciplined approach in the advancement of our
therapeutics portfolio and to focus our efforts on creating a new
customer experience with our prevention-based genetic health
services, further enabling our opportunities for growth.”
FY2023 Fourth Quarter and Full Year Financial
ResultsTotal revenue for the three and twelve months ended
March 31, 2023, was $92 million and $299 million, respectively,
compared to $101 million and $272 million, respectively, for the
same periods in the prior year, representing a decrease of 8% and
an increase of 10%, respectively. The decrease in fourth quarter
revenue was primarily driven by a decrease in Research Services
revenue from the GSK collaboration as the prior year included a
cumulative revenue adjustment due to a change in estimate of total
project resources, resulting in a higher percentage of completion
to date, and a decrease in Consumer Services revenue from lower
volumes on Personal Genome Service (PGS) kit sales as we focused on
driving improved margins through higher average selling prices.
Full year revenue growth was primarily driven by an increase in
Consumer Services revenue attributable to a full year of telehealth
services revenue from the Lemonaid Health Acquisition, whereas the
prior year included only 5 months, and an increase in subscription
services revenue, partially offset by a decrease in PGS kit
revenue. Research Services revenue increased primarily due to an
increase in GSK collaboration revenue related to GSK exercising
their option to extend the exclusive target discovery period of our
collaboration for a fifth year and an increase in revenue under
research contracts with third parties.
Revenue from Consumer Services, which includes PGS, telehealth
and subscription services, represented approximately 88% and 83% of
total revenue, respectively, for the three and twelve months ended
March 31, 2023. Research Services revenue is primarily derived from
the collaboration with GSK and accounted for approximately 12% and
17% of total revenue, respectively, for those same periods.
Operating expenses for the three and twelve months ended March
31, 2023, were $109 million and $459 million, respectively,
compared to $117 million and $387 million, respectively, for the
same periods in the prior year. The decrease in operating expenses
in the three-month period was primarily due to a one time net
litigation settlement payment in fiscal year 2022 and timing
differences in marketing campaigns and fewer promotional windows
between the comparative periods. The increase in operating expenses
in the twelve-month period was primarily attributable to increased
personnel-related expenses driven by increased salaries and related
taxes as a result of inflation and headcount growth, and a non-cash
impairment charge of an intangible asset. These increases in
operating expenses were primarily related to the previously
acquired telehealth business.
Net loss for the three and twelve months ended March 31, 2023,
was $64 million and $312 million, respectively, compared to a net
loss of $70 million and $217 million, respectively, for the same
periods in the prior year. The improvement in the three-month
period was primarily attributable to lower operating expenses (as
noted above) and an increase in interest income from interest
yields earned on cash held in money market funds. The increase in
the twelve-month period was primarily attributable to the increase
in operating expenses discussed above, as well as a benefit from
change in fair value of warrant liabilities of $33 million and an
income tax benefit of $3 million in the twelve months ended March
31, 2022.
Total Adjusted EBITDA (as defined below) for the three and
twelve months ended March 31, 2023, was a deficit of $39 million
and $161 million, respectively, compared to a deficit of $30
million and $151 million, respectively, for the same periods in the
prior year. The increase in the Adjusted EBITDA deficit for the
three and twelve-month periods was primarily due to the increase in
operating expenses noted above. Please refer to the tables below
for a reconciliation of U.S. GAAP to Non-U.S. GAAP financial
measures.
Balance Sheet23andMe ended March 31, 2023 with
cash and cash equivalents of $387 million, compared to $553 million
as of March 31, 2022.
FY2024 Financial GuidanceThe Company’s full
year fiscal 2024 guidance is based on a conservative approach,
recognizing the current uncertainties in the general economy and
financial markets. Within the existing Consumer businesses of PGS
and telehealth, the Company is prioritizing the minimization of
cash burn over initiatives intended to create incremental top-line
growth. For those areas of the business expected to drive future
growth, which include the Company’s new genomic health services and
Therapeutics, the Company plans to focus on the most strategically
and financially valuable allocation of capital and invest
appropriately. Given the Company’s shift in focus to higher margins
rather than volume growth in PGS and telehealth, as well as the end
of the target discovery term of the GSK collaboration, the Company
does not foresee meaningful revenue contribution from these areas
of Consumer in FY2024. Revenue guidance for FY2024, which will end
on March 31, 2024, is projected to be in the range of $255 million
to $280 million, with a net loss in the range of $340 million to
$365 million. Full year adjusted EBITDA deficit is projected to be
in the range of $170 to $195 million for fiscal year 2024.
The Adjusted EBITDA guidance, assumes the following:
- We will continue to advance our current Therapeutic assets
- No additional revenue from new strategic partnerships
- No savings incurred from cost reduction initiatives, such as
those related to the evaluation of opting-in or out of our GSK
programs, out-licensing or partnering on our therapeutic programs
or other internal operating cost reductions
Adjusted EBITDA is our best proxy for cash burn and we do not
assume the sale of any equity under our At-the-Market Sales program
with Cowen and Company, LLC (the “ATM Program”).
Conference Call Webcast Information23andMe will
host a conference call at 4:30 p.m. Eastern Time on Thursday, May
25, 2023 to discuss the financial results for the full year and Q4
FY2023 and report on business progress. The webcast can be accessed
on the day of the event
at https://investors.23andme.com/news-events/events-presentations.
A webcast replay will be available at the same address for a
limited time within 24 hours after the event.
About 23andMe23andMe is a genetics-led consumer
healthcare and therapeutics company empowering a healthier future.
For more information, please visit investors.23andme.com.
Additional InformationThis press release shall
not constitute an offer to sell or a solicitation of an offer to
buy any of the securities, nor shall there be any sale of these
securities, in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
Forward-Looking StatementsThis press release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, including, without
limitation, statements regarding the future performance of
23andMe’s Consumer and Research Services and Therapeutics
businesses, the growth and potential of its proprietary research
platform ,the development of the Company’s products and
therapeutics programs, and access to and use of the ATM Program,
including potential sales of shares pursuant thereto and the
benefits thereof. All statements, other than statements of
historical fact, included or incorporated in this press release,
including statements regarding 23andMe’s expected future operating
results, strategy, financial position, funding for continued
operations, cash reserves, projected costs, plans, and objectives
of management, are forward-looking statements. The words
"believes," "anticipates," "estimates," "plans," "expects,"
"intends," "may," "could," "should," "potential," "likely,"
"projects," “predicts,” "continue," "will," “schedule,” and "would"
or, in each case, their negative or other variations or comparable
terminology, are intended to identify forward-looking statements,
although not all forward-looking statements contain these
identifying words. These forward-looking statements are predictions
based on 23andMe’s current expectations and projections about
future events and various assumptions. 23andMe cannot guarantee
that it will actually achieve the plans, intentions, or
expectations disclosed in its forward-looking statements and you
should not place undue reliance on 23andMe’s forward-looking
statements. These forward-looking statements involve a number of
risks, uncertainties (many of which are beyond the control of
23andMe), or other assumptions that may cause actual results or
performance to differ materially from those expressed or implied by
these forward-looking statements. The forward-looking statements
contained herein are also subject generally to other risks and
uncertainties that are described from time to time in the Company’s
filings with the Securities and Exchange Commission, including
under Item 1A, “Risk Factors” in the Company’s most recent Annual
Report on Form 10-K, as filed with the Securities and Exchange
Commission, and as revised and updated by our Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K. The statements made
herein are made as of the date of this press release and, except as
may be required by law, 23andMe undertakes no obligation to update
them, whether as a result of new information, developments, or
otherwise.
Use of Non-GAAP Financial MeasureTo supplement
the 23andMe’s unaudited condensed consolidated statements of
operations and unaudited condensed consolidated balance sheets,
which are prepared in conformity with generally accepted accounting
principles in the United States of America (GAAP), this press
release also includes references to Adjusted EBITDA, which is a
non-GAAP financial measure that 23andMe defines as net income
(loss) before net interest income (expense), net other income
(expense), income tax expenses (benefit), depreciation and
amortization, impairment charges, stock-based compensation expense,
acquisition-related costs, and other items that are considered
unusual or not representative of underlying trends of our business,
including but not limited to: changes in fair value of warrant
liabilities, litigation settlement, and restructuring and other
charges, if applicable for the periods presented. 23andMe has
provided a reconciliation of net loss, the most directly comparable
GAAP financial measure, to Adjusted EBITDA at the end of this press
release.
Adjusted EBITDA is a key measure used by 23andMe’s management
and the board of directors to understand and evaluate operating
performance and trends, to prepare and approve 23andMe’s annual
budget and to develop short- and long-term operating plans. 23andMe
provides Adjusted EBITDA because 23andMe believes it is frequently
used by analysts, investors and other interested parties to
evaluate companies in its industry and it facilitates comparisons
on a consistent basis across reporting periods. Further, 23andMe
believes it is helpful in highlighting trends in its operating
results because it excludes items that are not indicative of
23andMe’s core operating performance. In particular, 23andMe
believes that the exclusion of the items eliminated in calculating
Adjusted EBITDA provides useful measures for period-to-period
comparisons of 23andMe’s business. Accordingly, 23andMe believes
that Adjusted EBITDA provides useful information in understanding
and evaluating operating results in the same manner as 23andMe’s
management and board of directors.
In evaluating Adjusted EBITDA, you should be aware that in the
future 23andMe will incur expenses similar to the adjustments in
this presentation. 23andMe’s presentation of Adjusted EBITDA should
not be construed as an inference that future results will be
unaffected by these expenses or any unusual or non-recurring items.
Adjusted EBITDA should not be considered in isolation of, or as an
alternative to, measures prepared in accordance with GAAP. Other
companies, including companies in the same industry, may calculate
similarly-titled non-GAAP financial measures differently or may use
other measures to evaluate their performance, all of which could
reduce the usefulness of Adjusted EBITDA as a tool for comparison.
There are a number of limitations related to the use of these
non-GAAP financial measures rather than net loss, which is the most
directly comparable financial measure calculated in accordance with
GAAP. Some of the limitations of Adjusted EBITDA include (i)
Adjusted EBITDA does not properly reflect capital commitments to be
paid in the future, and (ii) although depreciation and amortization
are non-cash charges, the underlying assets may need to be replaced
and Adjusted EBITDA does not reflect these capital expenditures.
When evaluating 23andMe’s performance, you should consider Adjusted
EBITDA alongside other financial performance measures, including
net loss and other GAAP results.
ContactsInvestor Relations
Contact: investors@23andMe.comMedia
Contact: press@23andMe.com
23andMe Holding
Co.Condensed Consolidated Statements of Operations
and Comprehensive Loss(In thousands, except share
and per share data)(Unaudited)
|
|
Three Months
EndedMarch 31, |
|
|
Year EndedMarch 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
|
$ |
92,377 |
|
|
$ |
100,559 |
|
|
$ |
299,489 |
|
|
$ |
271,893 |
|
Cost of revenue |
|
|
52,395 |
|
|
|
53,502 |
|
|
|
164,993 |
|
|
|
138,948 |
|
Gross profit |
|
|
39,982 |
|
|
|
47,057 |
|
|
|
134,496 |
|
|
|
132,945 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
60,719 |
|
|
|
50,324 |
|
|
|
222,596 |
|
|
|
189,377 |
|
Sales and marketing |
|
|
21,779 |
|
|
|
29,351 |
|
|
|
119,927 |
|
|
|
100,338 |
|
General and
administrative |
|
|
26,758 |
|
|
|
36,836 |
|
|
|
115,984 |
|
|
|
97,383 |
|
Total operating expenses |
|
|
109,256 |
|
|
|
116,511 |
|
|
|
458,507 |
|
|
|
387,098 |
|
Loss from operations |
|
|
(69,274 |
) |
|
|
(69,454 |
) |
|
|
(324,011 |
) |
|
|
(254,153 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
4,369 |
|
|
|
64 |
|
|
|
9,676 |
|
|
|
277 |
|
Change in fair value of
warrant liabilities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
32,989 |
|
Other income (expense),
net |
|
|
174 |
|
|
|
(122 |
) |
|
|
(93 |
) |
|
|
(83 |
) |
Loss before income taxes |
|
|
(64,731 |
) |
|
|
(69,512 |
) |
|
|
(314,428 |
) |
|
|
(220,970 |
) |
Benefit from income taxes |
|
|
(633 |
) |
|
|
32 |
|
|
|
(2,772 |
) |
|
|
(3,480 |
) |
Net loss |
|
|
(64,098 |
) |
|
|
(69,544 |
) |
|
|
(311,656 |
) |
|
|
(217,490 |
) |
Other comprehensive income
(loss), net of tax |
|
|
(309 |
) |
|
|
215 |
|
|
|
(799 |
) |
|
|
179 |
|
Total comprehensive loss |
|
$ |
(64,407 |
) |
|
$ |
(69,329 |
) |
|
$ |
(312,455 |
) |
|
$ |
(217,311 |
) |
Net loss per share of Class A
and Class B common stock attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.14 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.69 |
) |
|
$ |
(0.60 |
) |
Weighted-average shares used
to compute net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
456,254,405 |
|
|
|
444,139,193 |
|
|
|
451,504,377 |
|
|
|
361,528,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23andMe Holding
Co.Condensed Consolidated Balance
Sheets(In thousands, except share and per share
amounts)(Unaudited)
|
|
March 31, |
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
386,849 |
|
|
$ |
553,182 |
|
Restricted cash |
|
|
1,399 |
|
|
|
1,599 |
|
Accounts receivable, net |
|
|
1,897 |
|
|
|
3,380 |
|
Inventories |
|
|
10,247 |
|
|
|
10,789 |
|
Deferred cost of revenue |
|
|
5,376 |
|
|
|
7,700 |
|
Prepaid expenses and other
current assets |
|
|
19,224 |
|
|
|
25,139 |
|
Total current assets |
|
|
424,992 |
|
|
|
601,789 |
|
Property and equipment,
net |
|
|
38,608 |
|
|
|
49,851 |
|
Operating lease right-of-use
assets |
|
|
56,078 |
|
|
|
55,577 |
|
Restricted cash,
noncurrent |
|
|
6,974 |
|
|
|
6,974 |
|
Internal-use software,
net |
|
|
15,661 |
|
|
|
9,635 |
|
Intangible assets, net |
|
|
45,520 |
|
|
|
73,905 |
|
Goodwill |
|
|
351,744 |
|
|
|
351,744 |
|
Other assets |
|
|
3,021 |
|
|
|
2,593 |
|
Total assets |
|
$ |
942,598 |
|
|
$ |
1,152,068 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
12,924 |
|
|
$ |
37,930 |
|
Accrued expenses and other
current liabilities |
|
|
66,430 |
|
|
|
44,588 |
|
Deferred revenue |
|
|
62,521 |
|
|
|
62,939 |
|
Operating lease
liabilities |
|
|
7,541 |
|
|
|
7,784 |
|
Total current liabilities |
|
|
149,416 |
|
|
|
153,241 |
|
Operating lease liabilities,
noncurrent |
|
|
77,763 |
|
|
|
78,524 |
|
Other liabilities |
|
|
1,480 |
|
|
|
4,647 |
|
Total liabilities |
|
|
228,659 |
|
|
|
236,412 |
|
Stockholders'
equity |
|
|
|
|
|
|
Preferred stock - par value
$0.0001, 10,000,000 shares authorized as of March 31, 2023 and
2022; zero shares issued and outstanding as of March 31, 2023 and
2022 |
|
|
— |
|
|
|
— |
|
Common stock, par value
$0.0001 - Class A shares, 1,140,000,000 shares authorized,
293,020,474 and 228,174,718 shares issued and outstanding as of
March 31, 2023 and 2022, respectively; Class B shares, 350,000,000
shares authorized, 168,179,488 and 220,637,603 shares issued and
outstanding as of March 31, 2023 and 2022, respectively |
|
|
46 |
|
|
|
45 |
|
Additional paid-in
capital |
|
|
2,220,897 |
|
|
|
2,110,160 |
|
Accumulated other
comprehensive income (loss) |
|
|
(620 |
) |
|
|
179 |
|
Accumulated deficit |
|
|
(1,506,384 |
) |
|
|
(1,194,728 |
) |
Total stockholders’
equity |
|
|
713,939 |
|
|
|
915,656 |
|
Total liabilities and
stockholders’ equity |
|
$ |
942,598 |
|
|
$ |
1,152,068 |
|
|
23andMe Holding
Co.Condensed Consolidated Statements of Cash
Flows(In
thousands)(Unaudited)
|
|
Year Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Net loss |
|
$ |
(311,656 |
) |
|
$ |
(217,490 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
Depreciation and
amortization |
|
|
32,071 |
|
|
|
23,699 |
|
Amortization and impairment of
internal-use software |
|
|
4,427 |
|
|
|
2,449 |
|
Stock-based compensation
expense |
|
|
116,017 |
|
|
|
57,933 |
|
Changes in fair value of
warrant liabilities |
|
|
— |
|
|
|
(32,989 |
) |
Impairment of long-lived
assets |
|
|
10,126 |
|
|
|
— |
|
Other |
|
|
77 |
|
|
|
85 |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
Accounts receivable, net |
|
|
1,483 |
|
|
|
(899 |
) |
Inventories |
|
|
542 |
|
|
|
(4,262 |
) |
Deferred cost of revenue |
|
|
2,325 |
|
|
|
(2,219 |
) |
Prepaid expenses and other
current assets |
|
|
6,653 |
|
|
|
(10,077 |
) |
Operating right-of-use
assets |
|
|
7,393 |
|
|
|
7,078 |
|
Other assets |
|
|
(429 |
) |
|
|
(1,820 |
) |
Accounts payable |
|
|
(24,573 |
) |
|
|
22,856 |
|
Accrued expenses and other
current liabilities |
|
|
2,671 |
|
|
|
8,316 |
|
Deferred revenue |
|
|
(418 |
) |
|
|
(8,799 |
) |
Operating lease
liabilities |
|
|
(8,934 |
) |
|
|
(7,054 |
) |
Other liabilities |
|
|
(3,165 |
) |
|
|
(3,635 |
) |
Net cash used in operating
activities |
|
|
(165,390 |
) |
|
|
(166,828 |
) |
Cash flows from
investing activities: |
|
|
|
|
|
|
Purchases of property and
equipment |
|
|
(4,043 |
) |
|
|
(3,967 |
) |
Purchases of intangible
assets |
|
|
— |
|
|
|
(5,500 |
) |
Capitalized internal-use
software costs |
|
|
(7,262 |
) |
|
|
(4,505 |
) |
Cash paid for acquisitions,
net of cash acquired |
|
|
— |
|
|
|
(94,165 |
) |
Net cash used in investing
activities |
|
|
(11,305 |
) |
|
|
(108,137 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
Proceeds from exercise of
stock options |
|
|
4,203 |
|
|
|
16,998 |
|
Proceeds from issuance of
common stock under employee stock purchase plan |
|
|
6,464 |
|
|
|
— |
|
Payments for taxes related to
net share settlement of equity awards |
|
|
(197 |
) |
|
|
— |
|
Payments of deferred offering
costs |
|
|
(693 |
) |
|
|
(30,642 |
) |
Proceeds from issuance of
common stock upon merger |
|
|
— |
|
|
|
309,720 |
|
Proceeds from PIPE |
|
|
— |
|
|
|
250,000 |
|
Proceeds from exercise of
merger warrants |
|
|
— |
|
|
|
44 |
|
Payment for warrant
redemptions |
|
|
— |
|
|
|
(116 |
) |
Net cash provided by financing
activities |
|
|
9,777 |
|
|
|
546,004 |
|
Effect of exchange rates on
cash and cash equivalents |
|
|
385 |
|
|
|
(146 |
) |
Net increase
(decrease) in cash, cash equivalents and restricted
cash |
|
|
(166,533 |
) |
|
|
270,893 |
|
Cash, cash equivalents and
restricted cash—beginning of period |
|
|
561,755 |
|
|
|
290,862 |
|
Cash, cash equivalents
and restricted cash—end of period |
|
$ |
395,222 |
|
|
$ |
561,755 |
|
Reconciliation of
cash, cash equivalents, and restricted cash within the consolidated
balance sheets to the amounts shown in the consolidated statements
of cash flows above: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
386,849 |
|
|
$ |
553,182 |
|
Restricted cash, current |
|
|
1,399 |
|
|
|
1,599 |
|
Restricted cash,
noncurrent |
|
|
6,974 |
|
|
|
6,974 |
|
Total cash, cash equivalents
and restricted cash |
|
$ |
395,222 |
|
|
$ |
561,755 |
|
|
23andMe Holding Co.Total
Company and Segment Information and Reconciliation of Non-GAAP
Financial Measures(In
thousands)(Unaudited)
The Company’s revenue and Adjusted EBITDA by segment and for the
total Company is as follows:
|
|
Three Months
EndedMarch 31, |
|
|
Year EndedMarch 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Segment
Revenue:(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Consumer and Research Services |
|
$ |
92,377 |
|
|
$ |
100,559 |
|
|
$ |
299,489 |
|
|
$ |
271,893 |
|
Segment Adjusted
EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
Consumer and Research Services
Adjusted EBITDA |
|
$ |
4,989 |
|
|
$ |
3,120 |
|
|
$ |
(17,997 |
) |
|
$ |
(30,112 |
) |
Therapeutics Adjusted
EBITDA |
|
|
(29,904 |
) |
|
|
(19,898 |
) |
|
|
(88,503 |
) |
|
|
(76,944 |
) |
Unallocated Corporate (2) |
|
|
(13,744 |
) |
|
|
(12,992 |
) |
|
|
(54,801 |
) |
|
|
(43,684 |
) |
Total Adjusted EBITDA |
|
$ |
(38,659 |
) |
|
$ |
(29,770 |
) |
|
$ |
(161,301 |
) |
|
$ |
(150,740 |
) |
Reconciliation of net
loss to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(64,098 |
) |
|
$ |
(69,544 |
) |
|
$ |
(311,656 |
) |
|
$ |
(217,490 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
(4,369 |
) |
|
|
(64 |
) |
|
|
(9,676 |
) |
|
|
(277 |
) |
Other (income) expense,
net |
|
|
(174 |
) |
|
|
122 |
|
|
|
93 |
|
|
|
83 |
|
Change in fair value of
warrant liabilities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(32,989 |
) |
Income tax expense
(benefit) |
|
|
(633 |
) |
|
|
32 |
|
|
|
(2,772 |
) |
|
|
(3,480 |
) |
Depreciation and
amortization |
|
|
4,727 |
|
|
|
4,711 |
|
|
|
20,239 |
|
|
|
18,899 |
|
Amortization of acquired
intangible assets |
|
|
3,639 |
|
|
|
4,371 |
|
|
|
16,486 |
|
|
|
7,269 |
|
Impairment of acquired
intangible asset |
|
|
— |
|
|
|
— |
|
|
|
9,968 |
|
|
|
— |
|
Stock-based compensation
expense |
|
|
22,249 |
|
|
|
20,460 |
|
|
|
116,017 |
|
|
|
57,933 |
|
Acquisition-related costs
(3) |
|
|
— |
|
|
|
192 |
|
|
|
— |
|
|
|
9,362 |
|
Litigation settlement (4) |
|
|
— |
|
|
|
9,950 |
|
|
|
— |
|
|
|
9,950 |
|
Total Adjusted EBITDA |
|
$ |
(38,659 |
) |
|
$ |
(29,770 |
) |
|
$ |
(161,301 |
) |
|
$ |
(150,740 |
) |
(1) There was no Therapeutics revenue for all
periods presented.(2) Certain department expenses such as Finance,
Legal, Regulatory and Supplier Quality, Corporate Communications,
and CEO Office are not reported as part of the reporting segments
as reviewed by the CODM. These amounts are included in Unallocated
Corporate.(3) For the fiscal year ended March 31, 2022,
acquisition-related costs primarily consisted of advisory, legal
and consulting fees related to the Lemonaid Acquisition.(4) For the
fiscal year ended March 31, 2022, litigation settlement is
litigation cost net of insurance recoveries, which is not expected
to occur on a recurring basis and not part of the Company's normal
and continued business activity.
23andMe Holding
Co.Reconciliation of GAAP Net Loss Outlook to
non-GAAP Adjusted EBITDA Outlook(in
thousands)(Unaudited)
|
|
Outlook for the Year Ending March 31,
2024 |
|
|
|
as of March 31, 2023 |
|
|
|
Low |
|
|
High |
|
Reconciliation of
estimated net loss to adjusted EBITDA: |
|
|
|
|
|
|
GAAP Net Loss outlook |
|
$ |
(365,000 |
) |
|
$ |
(340,000 |
) |
Adjustments |
|
|
|
|
|
|
Estimated interest (income)
expense, net |
|
|
(11,000 |
) |
|
|
(11,000 |
) |
Estimated other (income)
expenses, net |
|
|
— |
|
|
|
— |
|
Estimated depreciation and
amortization |
|
|
21,000 |
|
|
|
21,000 |
|
Estimated amortization of
acquired intangible assets |
|
|
11,000 |
|
|
|
11,000 |
|
Estimated stock-based
compensation expense |
|
|
149,000 |
|
|
|
149,000 |
|
Non-GAAP adjusted EBITDA
outlook |
|
$ |
(195,000 |
) |
|
$ |
(170,000 |
) |
|
|
|
|
|
|
|
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