23andMe Announces Q1 Fiscal 2025 Financial Results

23andMe Holding Co., a leading genetics and biopharmaceutical company based in South San Francisco, recently disclosed its financial outcomes for the first quarter of fiscal year 2025, which concluded on June 30, 2024. The company, listed on the Nasdaq under the ticker ME, showcased significant updates and developments in its business operations.

In the first quarter of fiscal 2025, 23andMe reported total revenue of $40 million, marking a 34% decline compared to the same period the previous year. This drop in revenue was primarily driven by reduced research revenue following the end of an exclusive collaboration term with GSK in July 2023. Additionally, the company experienced lower consumer revenue due to decreased sales volumes of Personal Genome Service (PGS) kits and fewer telehealth orders.

Despite these financial challenges, 23andMe made notable strides in other areas. The company announced the initiation of a large-scale genetic research study aimed at identifying genetic factors influencing the effectiveness and potential side effects of GLP-1 medications. By the end of the month, 23andMe plans to introduce a GLP-1 weight loss telehealth membership on the Lemonaid Health platform. This service will allow members to receive prescriptions and brand-name or compounded semaglutide medications.

Furthermore, 23andMe expanded its Total Health offering with the addition of a Biological Age feature, providing members tools to monitor their physiological aging process. The company also launched a new genetic Polygenic Risk Score (PRS) report for bipolar disorder for its 23andMe+ members, increasing the number of available PRS reports to over 30.

In collaboration with Nightingale Health, 23andMe plans to pilot a metabolomics blood biomarker panel with a select group of 23andMe+ members. Additionally, the company presented research findings from its therapeutic programs, 23ME-00610 and 23ME-01473, at the American Association for Cancer Research (AACR) annual meeting. The enrollment for the 23ME-00610 Phase 1/2a clinical trial was completed in April 2024. Research findings from the neuroendocrine and ovarian cohorts of 23ME-00610 were also presented at the American Society of Clinical Oncology (ASCO) meeting.

Anne Wojcicki, Co-Founder and CEO of 23andMe, highlighted the company's commitment to becoming a sustainably growing and profitable entity while maintaining its mission to enhance global health. Wojcicki emphasized the company's focus on adding value to its PGS segment, driving growth in telehealth, and leveraging data assets to bolster its Research Data business.

Financially, 23andMe's total revenue for FY25 Q1 was $40 million, down from $61 million in the same period the previous year—a decline attributed mainly to lower research services revenue post-GSK collaboration and reduced consumer services revenue. However, the company saw a slight offset in revenue due to growth in membership services.

The breakdown of the revenue indicated that consumer services, including PGS, telehealth, and membership services, comprised 97% of the total revenue for FY25 Q1, while research services made up about 3%.

Operating expenses for FY25 Q1 were significantly reduced to $92 million from $140 million the previous year. This reduction was due to lower personnel-related expenses following workforce cuts, decreased Therapeutics-related R&D spending, and a significant reduction in GSK collaboration expenses. The previous year's operating expenses had included a non-cash stock-based compensation expense of $22 million, related to the departure of a former Lemonaid officer.

The net loss for FY25 Q1 was $69 million, an improvement from a net loss of $105 million in the prior year's same period. Adjusted EBITDA for FY25 Q1 was a loss of $35 million, compared to a loss of $50 million the previous year, primarily due to reduced R&D and personnel-related expenses.

As of June 30, 2024, 23andMe reported cash and cash equivalents of $170 million, down from $216 million as of March 31, 2024. The company plans to host a conference call to further discuss these financial results and its business progress.

Overall, while 23andMe faced financial hurdles in the first quarter of fiscal 2025, the company continued to make significant advancements in genetic research and therapeutic developments, aligning with its long-term goals and vision.