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23andMe Fiscal Q4 Revenues Increase 14 Percent

NEW YORK – 23andMe said Thursday after market close that its fiscal 2022 fourth quarter revenues increased nearly 14 percent to $100.6 million from $88.6 million a year earlier. The genetic testing and research firm attributed the year-over-year gain to revenue from the $400 million acquisition of telehealth platform developer Lemonaid Health in November, as well as from higher research services revenues.

Sunnyvale, California-based 23andMe's Q4 net loss widened to $69.5 million, or $.16 per share, in the quarter ended March 31, from $67 million, or $.59 per share, a year earlier. The firm used approximately 444.1 million weighted-average shares to calculate per-share loss in the recently completed quarter compared to about 113.3 million weighted-average shares a year ago. The company went public last June through a merger with a special purpose acquisition company.

23andMe shares opened sharply lower on the Nasdaq Friday, down about 12 percent to $2.54 in the first half hour of trading.

The company's Q4 R&D expenses increased 10 percent to $50.3 million from $45.6 million a year earlier. Its SG&A costs rose marginally to $66.2 million from $66.1 million. 

23andMe ended the quarter with $553.2 million in cash plus $1.6 million in restricted cash. 

For the full 2022 fiscal year, 23andMe had revenues of $271.9 million, up 11 percent from the previous year's $243.9 million. Net loss for the year grew 18 percent to $217.5 million from $183.6 in FY 2021.

The firm was within the ranges of its full-year revenue forecast of $268 million to $278 million and a net loss of $205 million to $220 million.

In a conference call Thursday, CFO Steve Schoch said that 23andMe added 1.5 million new customers to its personal genomics service in FY22, bringing its total number of genotyped customers to 12.8 million. Volume of active members of the 23andMe+ subscription service grew to 425,000 in the year ended March 31, more than triple the total of 125,000 at the end of FY21.

23andMe estimates that it will post revenues of $260 million to $280 million and a net loss of $350 million to $370 million in fiscal 2023.

The Wall Street consensus for FY23 calls for $275.4 million in revenues.