23andMe (ME) - 2025 Q1 - Quarterly Results

Revenue and Financial Performance - Total revenue for Q1 FY2025 was $40 million, a 34% decrease compared to$ 61 million in the same period last year, primarily due to lower research revenue and decreased consumer revenue from PGS kit sales and telehealth orders[2][3] - Consumer services revenue, including PGS, telehealth, and membership services, accounted for 97% of total revenue, while research services revenue represented 3%[4] - Total revenue for the three months ended June 30, 2024, was $40.4 million, a decrease from$ 60.9 million in the same period in 2023[15] - Consumer and Research Services revenue for the three months ended June 30, 2024, was $40.4 million, down from$ 60.9 million in the same period in 2023[15] Operating Expenses and Net Loss - Operating expenses decreased to $92 million from$ 140 million in the prior year, driven by lower personnel-related expenses and reduced Therapeutics-related R&D spend[4] - Net loss for Q1 FY2025 was $69 million, an improvement from a net loss of$ 105 million in the same period last year[5] - Net loss for the three months ended June 30, 2024, was $69.4 million, compared to a net loss of$ 104.6 million in the same period in 2023[14] - Stock-based compensation expense for the three months ended June 30, 2024, was $21.6 million, compared to$ 51.1 million in the same period in 2023[15] - Cyber security incident expenses, net of probable insurance recoveries, were $9.4 million for the three months ended June 30, 2024[15] Adjusted EBITDA and Cash Flow - Adjusted EBITDA loss improved to$ 35 million from $50 million in the prior year, primarily due to lower R&D and personnel-related expenses[5] - Total Adjusted EBITDA for the three months ended June 30, 2024, was$ (35.2) million, an improvement from $(49.8) million in the same period in 2023[15] - Therapeutics segment reported an Adjusted EBITDA loss of$ (12.4) million for the three months ended June 30, 2024, compared to $(31.1) million in the same period in 2023[15] - Net cash used in operating activities for the three months ended June 30, 2024, was$ (43.3) million, compared to $(69.4) million in the same period in 2023[14] Cash and Assets - Cash and cash equivalents stood at$ 170 million as of June 30, 2024, compared to $216 million as of March 31, 2024[5] - Cash and cash equivalents decreased to$ 169.97 million as of June 30, 2024, from $216.49 million as of March 31, 2024[13] - Total assets as of June 30, 2024, were$ 368.0 million, down from $395.2 million as of March 31, 2024[13] Research and Development Initiatives - The company launched a large-scale genetic research study to identify genetic mechanisms related to GLP-1 medications and plans to introduce a GLP-1 weight loss telehealth membership on the Lemonaid Health platform[2] - 23andMe introduced a new Polygenic Risk Score report for bipolar disorder, bringing the total number of such reports available to members to over 30[2] - The company announced a collaboration with Nightingale Health to pilot a metabolomics blood biomarker panel with a cohort of 23andMe+ members[2] - Enrollment for the 23ME-00610 phase 1/2a clinical trial was completed in April 2024, and data from the Phase 2a expansion cohorts were presented at ASCO[2]