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 second quarter (“Q2”) of its
fiscal year 2023 (“FY2023”), which ended September 30, 2022.
23andMe is the only company with multiple FDA authorizations for
over-the-counter genetic health risk reports, and in particular the
only company the FDA has authorized to provide, without physician
involvement, genetic cancer risk reports and medication insights on
how individuals may process certain commonly prescribed medications
based on their genetics. The Company has also created the world’s
largest crowdsourced platform for genetic research, which it is
using to pursue drug discovery programs rooted in human genetics
across a spectrum of disease areas.
“23andMe continues to deliver on the promise of personalized
healthcare that followed the completion of the Human Genome Project
over 20 years ago. 23andMe has the world's largest re-contactable
database for genetic research, which makes us best positioned to
unlock the potential of the human genome to treat and prevent
disease. With our acquisition and integration of telehealth and
digital pharmacy services, we will be able to provide our customers
with one of the first large-scale personalized, genetics-based
health services,” said Anne Wojcicki, Chief Executive Officer and
Co-Founder of 23andMe. “Our genetic database also provides us with
one of the largest research platforms for therapeutic discovery –
producing over 50 therapeutics programs to date. Just this week our
wholly owned 23ME-00610 Phase 1 program targeting CD200R1 will be
the subject of a trials-in-progress presentation at The Society for
Immunotherapy of Cancer's annual meeting. In our efforts to help
people benefit from the human genome, we believe it is our
genetics-based health services and the new therapeutics that come
out of our discovery engine that will provide the greatest
prospects for fulfilling the promise of personalized
healthcare.”
Recent Highlights
- Received FDA clearance to provide interpretive drug information
for simvastatin, a commonly prescribed cholesterol medication.
- Expanded customer database to approximately 13.4 million
genotyped customers.
- Launched three new reports for 23andMe+ members. 23andMe+ is a
membership service that offers insights and features to give
members even more actionable information to live healthier lives.
These reports are developed by 23andMe scientists using data and
insights gathered from thousands of customers who have consented to
participate in our research. They use machine learning to create a
statistical model that estimates a person’s likelihood of
developing a specific condition using thousands of genetic markers,
along with a person’s ethnicity and birth sex. The new reports
released in the second quarter were:
- Anxiety report
- Fibromyalgia report
- Seasonal Allergies report
- Launched a rare diseases study in four rare conditions –
systemic sclerosis, ANCA-associated vasculitis, pemphigus vulgaris
and dermatomyositis – with the hope of identifying new treatments
and insights for these hard to study diseases.
- Published results from a study that identified five regions in
the human genome associated with susceptibility to pneumonia, a
leading cause of death worldwide.
- Published a large genetic study that identified hundreds of
genes associated with insomnia, a condition that is also linked to
depression, anxiety, schizophrenia, as well as metabolic
disorders.
- Introduces three new East Asian ancestry compositions: Northern
Chinese & Tibetan, Southern Chinese & Taiwanese and South
Chinese.
“We continue to see good revenue growth in our consumer business
with the addition of telehealth services revenue,” said Joe
Selsavage, Interim Chief Financial and Accounting Officer of
23andMe. “We also received $50 million from GSK, subsequent to the
end of the second quarter, as payment for their option to extend
the exclusive target discovery period of our collaboration for a
fifth year. This helps strengthen our balance sheet as we work to
create a new consumer experience with our genetic health service
and advance our therapeutics programs, which further enable our
opportunities for growth and profitability.”
FY2023 Second Quarter Financial ResultsTotal
revenue for the three and six months ended September 30, 2022, was
$76 million and $140 million, respectively, compared to $55 million
and $114 million, respectively, for the same periods in the prior
year, representing an increase of 37% and 22% respectively. Second
quarter revenue and six-month revenue growth was primarily driven
by the inclusion of telehealth services from the acquisition of
Lemonaid in November 2021, increased Research Services revenue and
continued growth in our subscription service. The Research Services
revenue included revenue from GSK as well as non-recurring payments
from other partners. These increases were partially offset by lower
Personal Genome Service (“PGS”) revenue.
Revenue from Consumer Services, which includes PGS, telehealth
and subscription services, represented approximately 75% and 80% of
total revenue, respectively, for the three months and six months
ended September 30, 2022. Research Services revenue is primarily
derived from the collaboration with GSK and accounted for
approximately 25% and 20% of total revenue, respectively, for those
same periods.
Operating expenses for the three and six months ended September
30, 2022 were $106 million and $221 million, respectively, compared
to $74 million and $147 million, respectively for the same periods
in the prior year. The increases in operating expenses in the
second quarter and six-month periods were primarily attributable to
increased labor costs and the addition of sales and marketing
expenses from the previously acquired telehealth business. These
were partially offset by lower R&D expenses due to decreased
spending on the GSK6097608 (GSK ‘608) program following the
Company's election to adopt the royalty option versus continuing to
share in development costs.
Net loss for the three and six months ended September 30, 2022
was $66 million and $156 million, respectively, compared to a net
loss of $17 million and $59 million for the same periods in the
prior year. The increase in the three-month and six-month net loss
was primarily driven by a benefit from changes in fair value of
warrant liabilities of $30 million for the three months ended
September 30, 2021 and higher operating expenses in the current
period (as noted above), partially offset by higher revenue.
Total Adjusted EBITDA (as defined below) for the three and six
months ended September 30, 2022 was a deficit of $30 million and
$79 million, respectively, compared to a deficit of $30 million and
$57 million for the same periods in the prior year. The increase in
Adjusted EBITDA deficit for the six month period was driven
primarily by the increase in operating expenses mentioned above and
partially offset by increased revenue.
Balance Sheet23andMe ended September 30, 2022
with cash and cash equivalents of $411 million, compared to $553
million as of March 31, 2022. Subsequent to the end of the quarter,
a payment of $50 million was received from GSK, as mentioned above.
The decrease was primarily attributable to the Company's overall
operating cash flow deficit.
FY2023 Financial Guidance23andme reconfirmed
its full year guidance following Q2 FY2023 results. Full year
revenue for fiscal 2023, which will end on March 31, 2023, is
projected to be in the range of $260 to $280 million, with a net
loss in the range of $350 to $370 million. The full year adjusted
EBITDA deficit is projected to be in the range of $195 to $215
million for fiscal year 2023. As a reminder, this guidance includes
the full-year impact of the consolidation of the Company’s acquired
telehealth business into its overall consumer business as well as
the current and anticipated effects of general inflation on certain
of our costs.
Conference Call Webcast Information23andMe will
host a conference call at 4:30 p.m. Eastern Time on Monday,
November 7, 2022 to discuss the financial results for Q2 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.
Forward-Looking Statements
This 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 businesses in consumer genetics and
therapeutics and the growth and potential of its proprietary
research platform. All statements, other than statements of
historical fact, included or incorporated in this press release,
including statements regarding 23andMe’s 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
Measure
To 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 expense (income), net
other expense (income), changes in fair value of warrant
liabilities, income tax benefit, depreciation and amortization of
fixed assets, amortization of internal use software, amortization
of acquired intangible assets, non-cash stock-based compensation
expense, acquisition-related costs, and expenses related to
restructuring and other charges, if applicable for the period.
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.
Investor 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 EndedSeptember
30, |
|
|
Six Months EndedSeptember
30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenue (related party amounts of
$14,925 and $10,002 for the three months ended September 30, 2022
and 2021, respectively, and $23,190 and $21,212 for the six months
ended September 30, 2022 and 2021, respectively) |
|
$ |
75,659 |
|
|
$ |
55,204 |
|
|
$ |
140,172 |
|
|
$ |
114,443 |
|
Cost of revenue (related party
amounts of $(271) and $(184) for the three months ended September
30, 2022 and 2021, respectively, and $(510) and $264 for the six
months ended September 30, 2022 and 2021, respectively) |
|
|
37,386 |
|
|
|
27,276 |
|
|
|
76,409 |
|
|
|
55,818 |
|
Gross profit |
|
|
38,273 |
|
|
|
27,928 |
|
|
|
63,763 |
|
|
|
58,625 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development (related party amounts of $2,717 and
$5,864 for the three months ended September 30, 2022 and 2021,
respectively, and $6,266 and $11,886 for the six months ended
September 30, 2022 and 2021, respectively) |
|
|
52,598 |
|
|
|
44,523 |
|
|
|
104,607 |
|
|
|
88,755 |
|
Sales and marketing |
|
|
24,835 |
|
|
|
13,588 |
|
|
|
58,269 |
|
|
|
29,007 |
|
General and administrative |
|
|
28,881 |
|
|
|
16,264 |
|
|
|
58,524 |
|
|
|
28,860 |
|
Total operating expenses |
|
|
106,314 |
|
|
|
74,375 |
|
|
|
221,400 |
|
|
|
146,622 |
|
Loss from operations |
|
|
(68,041 |
) |
|
|
(46,447 |
) |
|
|
(157,637 |
) |
|
|
(87,997 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
1,392 |
|
|
|
92 |
|
|
|
1,637 |
|
|
|
136 |
|
Change in fair value of warrant liabilities |
|
|
— |
|
|
|
29,828 |
|
|
|
— |
|
|
|
29,294 |
|
Other income (expense), net |
|
|
(687 |
) |
|
|
3 |
|
|
|
(1,122 |
) |
|
|
17 |
|
Loss before income taxes |
|
|
(67,336 |
) |
|
|
(16,524 |
) |
|
|
(157,122 |
) |
|
|
(58,550 |
) |
Benefit from income taxes |
|
|
1,271 |
|
|
|
— |
|
|
|
1,525 |
|
|
|
— |
|
Net loss |
|
$ |
(66,065 |
) |
|
$ |
(16,524 |
) |
|
$ |
(155,597 |
) |
|
$ |
(58,550 |
) |
Other comprehensive income |
|
|
829 |
|
|
|
— |
|
|
|
1,453 |
|
|
|
— |
|
Total comprehensive loss |
|
$ |
(65,236 |
) |
|
$ |
(16,524 |
) |
|
$ |
(154,144 |
) |
|
$ |
(58,550 |
) |
Net loss per share of Class A and
Class B common stock attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.15 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.20 |
) |
Weighted-average shares used to
compute net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
449,899,537 |
|
|
|
406,886,060 |
|
|
|
448,211,708 |
|
|
|
288,190,872 |
|
23andMe Holding
Co.Condensed Consolidated Balance
Sheets(in thousands, except share and per share
amounts)
|
|
September 30, |
|
|
March 31, |
|
|
|
2022 |
|
|
2022 |
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
410,891 |
|
|
$ |
553,182 |
|
Restricted cash |
|
|
1,599 |
|
|
|
1,599 |
|
Accounts receivable, net (related party amounts of $50,001 and nil
as of September 30, 2022 and March 31, 2022, respectively) |
|
|
52,883 |
|
|
|
3,380 |
|
Inventories |
|
|
13,806 |
|
|
|
10,789 |
|
Deferred cost of revenue |
|
|
6,786 |
|
|
|
7,700 |
|
Prepaid expenses and other current assets |
|
|
20,240 |
|
|
|
25,139 |
|
Total current assets |
|
|
506,205 |
|
|
|
601,789 |
|
Property and equipment, net |
|
|
44,057 |
|
|
|
49,851 |
|
Operating lease right-of-use
assets |
|
|
51,888 |
|
|
|
55,577 |
|
Restricted cash, noncurrent |
|
|
6,974 |
|
|
|
6,974 |
|
Internal-use software, net |
|
|
11,507 |
|
|
|
9,635 |
|
Intangible assets, net |
|
|
64,928 |
|
|
|
73,905 |
|
Goodwill |
|
|
351,744 |
|
|
|
351,744 |
|
Other assets |
|
|
3,429 |
|
|
|
2,593 |
|
Total assets |
|
$ |
1,040,732 |
|
|
$ |
1,152,068 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable (related party amounts of $3,652 and $12,567 as of
September 30, 2022 and March 31, 2022, respectively) |
|
$ |
10,549 |
|
|
$ |
37,930 |
|
Accrued expenses and other current liabilities (related party
amounts of $2,763 and $5,772 as of September 30, 2022 and March 31,
2022, respectively) |
|
|
44,420 |
|
|
|
44,588 |
|
Deferred revenue (related party amounts of $35,993 and $9,181 as of
September 30, 2022 and March 31, 2022, respectively) |
|
|
81,923 |
|
|
|
62,939 |
|
Operating lease liabilities |
|
|
8,014 |
|
|
|
7,784 |
|
Total current liabilities |
|
|
144,906 |
|
|
|
153,241 |
|
Operating lease liabilities,
noncurrent |
|
|
73,867 |
|
|
|
78,524 |
|
Other liabilities |
|
|
2,639 |
|
|
|
4,647 |
|
Total liabilities |
|
$ |
221,412 |
|
|
$ |
236,412 |
|
Stockholders'
equity |
|
|
|
|
|
|
Common Stock - Class A shares, par value $0.0001, 1,140,000,000
shares authorized as of September 30, 2022 and March 31, 2022,
266,937,775 and 228,174,718 shares issued and outstanding as of
September 30, 2022 and March 31, 2022, respectively; Class B
shares, par value $0.0001, 350,000,000 shares authorized as of
September 30, 2022 and March 31, 2022, 188,515,261 and 220,637,603
shares issued and outstanding as of September 30, 2022 and March
31, 2022, respectively. |
|
|
45 |
|
|
|
45 |
|
Additional paid-in capital |
|
|
2,167,968 |
|
|
|
2,110,160 |
|
Accumulated other comprehensive income |
|
|
1,632 |
|
|
|
179 |
|
Accumulated deficit |
|
|
(1,350,325 |
) |
|
|
(1,194,728 |
) |
Total stockholders’ equity |
|
|
819,320 |
|
|
|
915,656 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,040,732 |
|
|
$ |
1,152,068 |
|
23andMe Holding
Co.Condensed Consolidated Statements of Cash
Flows(in
thousands)(Unaudited)
|
|
Six Months Ended September 30, |
|
|
|
|
2022 |
|
|
2021 |
|
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net loss |
|
$ |
(155,597 |
) |
|
$ |
(58,550 |
) |
|
Adjustments to reconcile net loss
to net cash used in operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
16,747 |
|
|
|
8,402 |
|
|
Amortization and impairment of internal-use software |
|
|
2,078 |
|
|
|
1,106 |
|
|
Stock-based compensation expense |
|
|
59,430 |
|
|
|
20,064 |
|
|
Changes in fair value of warrant liabilities |
|
|
— |
|
|
|
(29,294 |
) |
|
Gain on sale of fixed assets |
|
|
4 |
|
|
|
42 |
|
|
Gain on lease termination |
|
|
— |
|
|
|
(15 |
) |
|
Changes in operating assets and
liabilities: |
|
|
|
|
|
|
|
Accounts receivable (related party amounts of $(50,001) and
$(25,000) for the six months ended September 30, 2022 and 2021,
respectively) |
|
|
(49,502 |
) |
|
|
(24,226 |
) |
|
Inventories |
|
|
(3,017 |
) |
|
|
(11,494 |
) |
|
Deferred cost of revenue |
|
|
914 |
|
|
|
(44 |
) |
|
Prepaid expenses and other current assets |
|
|
4,899 |
|
|
|
(5,360 |
) |
|
Operating right-of-use assets |
|
|
3,689 |
|
|
|
3,496 |
|
|
Other assets |
|
|
(834 |
) |
|
|
(654 |
) |
|
Accounts payable (related party amounts of $(8,915) and $(4,422)
for the six months ended September 30, 2022 and 2021,
respectively) |
|
|
(26,968 |
) |
|
|
(997 |
) |
|
Accrued and other current liabilities (related party amounts of
$(3,009) and $5,545 for the six months ended September 30, 2022 and
2021, respectively) |
|
|
(10,367 |
) |
|
|
(2,276 |
) |
|
Deferred revenue (related party amounts of $26,812 and $3,788 for
the six months ended September 30, 2022 and 2021,
respectively) |
|
|
18,984 |
|
|
|
(3,574 |
) |
|
Operating lease liabilities |
|
|
(4,426 |
) |
|
|
(3,696 |
) |
|
Other liabilities |
|
|
(2,008 |
) |
|
|
45 |
|
|
Net cash used in operating activities |
|
|
(145,974 |
) |
|
|
(107,025 |
) |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Purchases of property and
equipment |
|
|
(1,945 |
) |
|
|
(1,810 |
) |
|
Prepayment for intangible
assets |
|
|
— |
|
|
|
(5,500 |
) |
|
Proceeds from sale of property
and equipment |
|
|
2 |
|
|
|
1 |
|
|
Capitalized internal-use software
costs |
|
|
(3,008 |
) |
|
|
(1,807 |
) |
|
Net cash used in investing activities |
|
|
(4,951 |
) |
|
|
(9,116 |
) |
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Proceeds from exercise of
stock options |
|
|
3,944 |
|
|
|
5,624 |
|
|
Proceeds from issuance of
common stock under employee stock purchase plan |
|
|
3,238 |
|
|
|
— |
|
|
Payments of deferred offering
costs |
|
|
— |
|
|
|
(30,642 |
) |
|
Proceeds from issuance of
common stock upon merger |
|
|
— |
|
|
|
309,720 |
|
|
Proceeds from PIPE (related
party amounts of nil and $25,000 for the six months ended September
30, 2022 and 2021, respectively) |
|
|
— |
|
|
|
250,000 |
|
|
Net cash provided by financing activities |
|
|
7,182 |
|
|
|
534,702 |
|
|
Effect of exchange rates on cash
and cash equivalents |
|
|
1,452 |
|
|
|
— |
|
|
Net increase (decrease) in cash,
cash equivalents and restricted cash |
|
|
(142,291 |
) |
|
|
418,561 |
|
|
Cash, cash equivalents and
restricted cash—beginning of period |
|
|
561,755 |
|
|
|
290,862 |
|
|
Cash, cash equivalents and
restricted cash—end of period |
|
|
419,464 |
|
|
|
709,423 |
|
|
Supplemental disclosures
of non-cash investing and financing activities: |
|
|
|
|
|
|
|
Purchases of property and equipment included in accounts payable
and accrued expenses |
|
|
762 |
|
|
|
34 |
|
|
Stock-based compensation capitalized for internal-use software
costs |
|
|
1,320 |
|
|
|
437 |
|
|
Reclassification of deferred offering costs |
|
|
— |
|
|
|
3,971 |
|
|
Assumption of merger warrants liability |
|
|
— |
|
|
|
75,415 |
|
|
Conversion of redeemable convertible preferred stock to common
stock |
|
|
— |
|
|
|
837,351 |
|
|
Reconciliation of cash,
cash equivalents, and restricted cash within the condensed
consolidated balance sheets to the amounts shown in the condensed
consolidated statements of cash flows above: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
410,891 |
|
|
|
701,050 |
|
|
Restricted cash, current |
|
|
1,599 |
|
|
|
1,399 |
|
|
Restricted cash, noncurrent |
|
|
6,974 |
|
|
|
6,974 |
|
|
Total cash, cash equivalents and
restricted cash |
|
$ |
419,464 |
|
|
$ |
709,423 |
|
|
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 EndedSeptember
30, |
|
|
Six Months Ended September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(in thousands) |
|
|
(in thousands) |
|
Segment Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Consumer and Research
Services |
|
$ |
75,659 |
|
|
$ |
55,204 |
|
|
$ |
140,172 |
|
|
$ |
114,443 |
|
Total Revenue (1) |
|
$ |
75,659 |
|
|
$ |
55,204 |
|
|
$ |
140,172 |
|
|
$ |
114,443 |
|
Segment Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
Consumer and Research Services
Adjusted EBITDA |
|
$ |
2,324 |
|
|
$ |
(760 |
) |
|
$ |
(14,673 |
) |
|
$ |
(1,265 |
) |
Therapeutics Adjusted
EBITDA |
|
|
(18,663 |
) |
|
|
(18,828 |
) |
|
|
(37,128 |
) |
|
|
(37,131 |
) |
Unallocated Corporate |
|
|
(13,316 |
) |
|
|
(10,095 |
) |
|
|
(27,568 |
) |
|
|
(18,563 |
) |
Total Adjusted EBITDA |
|
$ |
(29,655 |
) |
|
$ |
(29,683 |
) |
|
$ |
(79,369 |
) |
|
$ |
(56,959 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net loss to
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(66,065 |
) |
|
$ |
(16,524 |
) |
|
$ |
(155,597 |
) |
|
$ |
(58,550 |
) |
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
Interest (income) expense,
net |
|
|
(1,392 |
) |
|
|
(92 |
) |
|
|
(1,637 |
) |
|
|
(136 |
) |
Other (income) expense,
net |
|
|
687 |
|
|
|
(3 |
) |
|
|
1,122 |
|
|
|
(17 |
) |
Change in fair value of
warrant liabilities |
|
|
— |
|
|
|
(29,828 |
) |
|
|
— |
|
|
|
(29,294 |
) |
Income tax benefit |
|
|
(1,271 |
) |
|
|
— |
|
|
|
(1,525 |
) |
|
|
— |
|
Depreciation and
amortization |
|
|
5,152 |
|
|
|
4,871 |
|
|
|
10,256 |
|
|
|
9,508 |
|
Amortization of acquired
intangible assets |
|
|
4,267 |
|
|
|
— |
|
|
|
8,582 |
|
|
|
— |
|
Stock-based compensation
expense |
|
|
28,967 |
|
|
|
10,427 |
|
|
|
59,430 |
|
|
|
20,064 |
|
Acquisition-related costs
(2) |
|
|
— |
|
|
|
1,466 |
|
|
|
— |
|
|
|
1,466 |
|
Total Adjusted EBITDA |
|
$ |
(29,655 |
) |
|
$ |
(29,683 |
) |
|
$ |
(79,369 |
) |
|
$ |
(56,959 |
) |
(1) 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.
(2) For the three and six months ended
September 30, 2022 and 2021, acquisition-related costs primarily
consisted of advisory, legal and consulting fees related to the
Lemonaid Acquisition.
23andMe Holding
Co.Reconciliation of GAAP Net Loss Outlook to
non-GAAP Adjusted EBITDA Outlook(in
thousands)(Unaudited)
|
|
Outlook for the Year Ending |
|
|
|
as of September 30, 2022 |
|
|
|
Low |
|
|
High |
|
Reconciliation of estimated
net loss to adjusted EBITDA |
|
|
|
|
|
|
GAAP Net Loss outlook |
|
$ |
(370,000 |
) |
|
$ |
(350,000 |
) |
Adjustments |
|
|
|
|
|
|
Estimated interest (income)
expense, net |
|
|
(217 |
) |
|
|
(217 |
) |
Estimated other (income)
expense, net |
|
|
(286 |
) |
|
|
(286 |
) |
Estimated depreciation and
amortization |
|
|
20,605 |
|
|
|
20,605 |
|
Estimated amortization of
acquired intangible assets |
|
|
17,393 |
|
|
|
17,393 |
|
Estimated stock-based
compensation expense |
|
|
117,505 |
|
|
|
117,505 |
|
Non-GAAP adjusted EBITDA outlook |
|
$ |
(215,000 |
) |
|
$ |
(195,000 |
) |
23andMe (NASDAQ:ME)
Historical Stock Chart
From Mar 2024 to Apr 2024
23andMe (NASDAQ:ME)
Historical Stock Chart
From Apr 2023 to Apr 2024