23andMe posts $217M net loss during ‘transitional’ fiscal year

23andMe reported a $217 million net loss during its fiscal year 2022, which ended March 31, compared with $184 million during the prior year. 

The consumer genetics company also posted a loss of $70 million during its fourth quarter, compared with $67 million during Q4 2021. 23andMe attributed the increase in net loss during the quarter to increased operating expenses driven by sales and marketing, including the addition of expenses for its newly acquired telehealth segment.

Meanwhile, the company pointed to those operational expenses, and to therapeutics-related research and development costs for its fiscal year net loss increase.

Total revenue for the fourth quarter was $101 million, and $272 million for the year, increases of 14% and 11% respectively, compared with the prior-year periods.

23andMe is projecting full-year revenue for fiscal year 2023 to be between $260 million and $280 million, and the full-year GAAP net loss to be in the range of $350 million to $370 million. 

“Fiscal year 2022 was a transitional year for 23andMe. It was highlighted by our public listing in June 2021, followed in November by the strategically important acquisition of Lemonaid Health, which now underpins our planned introduction of a genomic health service,” CFO Steve Schoch said during an earnings call. 

THE LARGER TREND

In October, 23andMe announced it signed a definitive agreement to acquire telehealth and online prescription platform Lemonaid Health. The deal closed in November. 

The company plans to utilize the Lemonaid offering as part of its genomic health service, where customers can access their genetic information for preventive and personalized care. 

“Our efforts on the consumer side will now be focused on building a bridge between health risk awareness and health risk and disease management with our new genomic health services,” CEO and cofounder Anne Wojcicki said during the call. 

“Over the next few years, we plan to concentrate on the direct-to-consumer self-pay market. Once we establish ourselves in the DTC market, then we can look into growing into other channels. This effort started with our acquisition and integration of Lemonaid Health and their telehealth and digital pharmacy services.”

23andMe has also been working on using its genetic data for research and developing new drugs. Earlier this year, pharma giant GlaxoSmithKline extended their drug discovery partnership until July 2023.

ON THE RECORD

“This coming fiscal year we plan to take a more cautious overall approach to our use of cash, giving priority to the roll out of our next-generation genomic health service, and to advancing our therapeutics efforts. We believe that appropriate investments in these areas will provide our best opportunities for future growth,” Schoch said in a statement.