23andMe (ME) - 2025 Q2 - Quarterly Results

Financial Performance - Total revenue for Q2 FY25 was $44 million, a decrease of 12$50 million in the same period last year[5] - GAAP Net loss for Q2 FY25 was $59 million, representing a 21$75 million in the prior year[7] - Adjusted EBITDA for Q2 FY25 was a loss of $33 million, a 26$45 million in the same period last year[8] - Total revenue for the three months ended September 30, 2023, was $44,071 thousand, a decrease of 11.7$49,999 thousand for the same period in 2022[19] - Net loss for the six months ended September 30, 2023, was $(128,503) thousand, compared to a net loss of$(179,894) thousand in the prior year, representing a 28.5% improvement[22] - Total comprehensive loss for the three months ended September 30, 2023, was $(59,103) thousand, compared to$(74,316) thousand in the prior year, indicating a reduction of 20.4%[19] - Net loss for Q3 2024 was $(59,103,000), compared to$(75,270,000) in Q3 2023, showing an improvement of 21.5%[23] - Total Adjusted EBITDA for the six months ended September 30, 2024, was $(68,574,000), compared to$(94,853,000) for the same period in 2023, indicating a 27.7% improvement[23] Revenue Streams - Membership services revenue grew to 21% of total revenue, up from 9% in the prior year quarter, reflecting a focus on higher margin recurring revenue streams[5] - The company reported no revenue from Therapeutics for both Q3 2024 and Q3 2023[23] Operating Expenses - Operating expenses for Q2 FY25 decreased by 17% to $84 million, down from$101 million in the same period last year[6] - Operating expenses for the three months ended September 30, 2023, totaled $83,575 thousand, a decrease of 17.2$100,860 thousand for the same period in 2022[19] - Stock-based compensation expense for Q3 2024 was $19,486,000, down from$23,741,000 in Q3 2023, reflecting a decrease of 17.5%[23] - Unallocated Corporate expenses for Q3 2024 were $(12,804,000), slightly higher than$(12,156,000) in Q3 2023[23] Cash and Assets - Cash and cash equivalents as of September 30, 2024, were $127 million, down from$216 million as of March 31, 2024[9] - Cash and cash equivalents decreased to $126,601 thousand as of September 30, 2024, down from$216,488 thousand on March 31, 2024[21] - Total assets decreased to $318,936 thousand as of September 30, 2024, compared to$395,167 thousand on March 31, 2024[21] - Total liabilities increased to $217,007 thousand as of September 30, 2024, compared to$206,647 thousand on March 31, 2024[21] Strategic Initiatives - The company launched a GLP-1 weight loss telehealth membership and enrolled thousands in a study on genetics and GLP-1 efficacy[2] - 23andMe published one of the largest genetic studies of sickle cell trait in collaboration with NIH and Johns Hopkins University[2] - The company is exploring raising additional capital and restructuring to improve financial condition and extend cash runway[10] - The company has regained compliance with Nasdaq listing requirements following a reverse stock split[3] - The company is focusing on improving its financial metrics and reducing losses in future quarters[23] Cash Flow - Net cash used in operating activities for the six months ended September 30, 2023, was $(84,200) thousand, an improvement from$(126,474) thousand in the prior year[22] - Cyber security incident expenses for Q3 2024 amounted to $1,523,000, with significant costs incurred in the previous periods[23]