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23andMe Fiscal Q4 Revenues Drop 31 Percent as Research Services, Genetic Test Kit Sales Shrink

NEW YORK – 23andMe reported after the close of market Thursday a year-over-year revenue loss of 31 percent for its fiscal 2024 fourth quarter and a decrease of 27 percent for the full year.

The South San Francisco, California-based company finished the three months ended March 31 with $64 million in revenues compared to $92.4 million for the same quarter in 2023. 

The firm attributed the decrease largely to lower research services revenue due to ending a collaboration with GlaxoSmithKline, as well as lower consumer services revenue driven mainly by a drop in Personal Genome Service (PGS) kit sales volume and telehealth orders. The firm noted that these decreases were at least partially offset by revenue growth in membership services.

"A major component of our vision is to build a scalable preventive health service," 23andMe CEO Anne Wojcicki said in an after-market call with investors. "We think this is best achieved through driving membership growth on our platform."

Consumer services, which include PGS, telehealth, and membership services, represented approximately 99 percent of total Q4 revenue.

The firm has experienced a tumultuous year. Earlier this month, Nasdaq granted the company 180 days to regain compliance with the minimum bid price requirement for listing on the Nasdaq Capital Market, as the company's stock had fallen below $1.00.

In April, Wojcicki announced that she was considering a proposal to take 23andMe private by acquiring all outstanding shares she does not yet own. The company's board of directors formed a special committee to review strategic alternatives, although Wojcicki has stated that she wishes to maintain control of the company and will not support alternative transactions.

Wojcicki reiterated this position during the conference call and declined to provide further details at this time.

23andMe's Q4 R&D spending fell approximately 23 percent to $46.7 million from $60.7 million a year ago, while its SG&A expenses shrank 19 percent to $39.2 million from $48.6 million a year ago. Total operating expenses rose to $238.9 million from $109.3 million a year ago due to a $153 million noncash goodwill impairment charge taken in Q4 related to the company's Lemonaid Health acquisition.

Fourth quarter net loss increased to $208.8 million, or $.43 per share, from $64.1 million, or $.14 per share, in the same quarter a year ago.

Full-year revenue fell 27 percent to $219.7 million from $299.4 million in fiscal year 2023 on lower consumer service and research revenues. Consumer service revenues accounted for approximately 92 percent of the fiscal year's total revenue.

Total operating expenses for the year rose approximately 70 percent to $780.8 million from $458.5 million a year ago on a $352 million noncash goodwill impairment charge related to Lemonaid Health taken in the last two quarters.

23andMe's FY24 R&D spending fell approximately 8 percent to $205.4 million from $222.6 million, while SG&A expenses fell almost 9 percent to approximately $215.4 million from $235.9 million.

Net loss for FY24 was $666.7 million, or $1.40 per share, compared to a net loss of $312.5 million, or $.69 per share, for the prior year.

23andMe ended its fiscal year with $216.5 million in cash and cash equivalents and $1.4 million in restricted cash.

The company said it is not providing fiscal year 2025 guidance in light of the special committee review of strategic alternatives.

Shares of 23andMe rose approximately 15 percent to $.58 per share in early morning trading on the Nasdaq on Friday.