SOUTH SAN FRANCISCO, Calif. - 23andMe Holding Co. (NASDAQ:ME), a pioneer in human genetics and biopharmaceuticals, has reported a significant revenue beat for the fourth quarter of fiscal year 2024.
The company's revenue of $64.0 million exceeded the analyst consensus of $55.82 million. Despite a year-over-year (YoY) decrease of approximately 31% from $92.4 million in the fourth quarter of fiscal 2023, the results surpassed Wall Street expectations, sending the stock up by 9.9%.
The decrease in revenue compared to the previous year was primarily due to the conclusion of the GSK collaboration exclusivity term in July 2023 and lower sales of Personal Genome Service (PGS) kits and telehealth orders. However, the company's focus on membership services has contributed to offsetting some of the declines.
Operating expenses for the quarter rose to $239 million from $109 million YoY, largely due to a $153 million non-cash goodwill impairment charge. The net loss for the quarter widened to $209 million compared to a loss of $64 million in the same period last year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) showed an improvement with a loss of $33 million, better than the $39 million loss YoY, thanks to reduced personnel-related and R&D expenses.
Anne Wojcicki, CEO of 23andMe, stated, "We had a productive fourth quarter and solid end to the year, continuing to add value for members of 23andMe+ and advancing our clinical stage assets. We continue to work to build value for customers and shareholders and are looking forward to a transformative FY2025."
For the full fiscal year 2024, the company reported total revenues of $220 million, a 27% decrease from the previous year's $299 million. The net loss for the full year was $667 million, compared to a net loss of $312 million for the previous year. The company ended the fiscal year with $216 million in cash and cash equivalents.
23andMe did not provide financial guidance for FY2025, citing the ongoing review of strategic alternatives by a Special Committee formed by the Board of Directors. This review aims to maximize shareholder value and includes the potential acquisition proposal from CEO Anne Wojcicki for all outstanding shares of 23andMe that she does not currently own.
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