ME - Earnings call transcript Q3 2022

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Operator

Good morning and welcome to 23andMe's Fiscal Year 2022 Third Quarter Financial Results Conference Call.

As a reminder, this call is being recorded. At this time, all participants are in a listen-only mode. After prepared remarks, there will be a question-and-answer session. I would now like to turn the call over to Wade Walke, Vice President of Investor Relations to lead the call off. you. Thank ahead. go Please

Wade Walke

you. Thank

a statements. predictions which of call. statements within We but are that for future applies entitled website outlook note facts, begin, forward-looking our to I periods after including filings refer today Please are limited go of is on we A performance. everyone XX our section this available website not also the Also, on to found the based encourage forward-looking be to, the or impact SEC the matters discussion that for press website investors.XXandme.com on for replay us. now statements a quarter. can review find available may future the earlier results to These webcast our certain information release in call will release solely financial be our statements our regarding that hours press Before for to event. to which and today's numerous factors we SEC's reporting to not management's you that made limited encourage please time during are this our historical issued to

these reconciliation important measures, on We certain our also found discuss non-GAAP earnings to may in our measures use be information GAAP of and U.S. release.

Hillan, Officer Joining to to us Kenneth on of now, Steve Anne. Head Co-Founder; and Executive our the Wojcicki, today Schoch, Financial turn are Chief our over I'd and our call Therapeutics. our call Chief Officer; Anne like And

Anne Wojcicki

to information a pioneered type to path these mission incredible signed there genome. efforts care ancestry on to of from Wade. understand important the that consumer introduce is XX We've customers over million to and our access one's of help their last get a health. genetic new genetic up opportunity therapeutics We and community, access, is months. who you, about learn to human an have significant based and benefit few people progress on With The the and join people for direct both Thank made XXandMe information is their business XXandMe primary risk.

have they this physicians into often information know that they their how genetic information to but our integrate don't their heard We take to from customers their care.

care opportunity our who enable more the us help providing customers it Lemonaid knowledge to Health customers. as we the for are further have service our prepare opens primary health by care from care to to talking out. opportunity report. about for look got we with genetics-based thrilled I the am up door trained We providers as this to genetics-based service on quarter get to from benefit I genome primary it a the their that to about our you our this roll customers acquire forward

impactful benefit help individuals of report. part customers on FDA ancestry our help information make important and our As to them health life to genome, clearance human provide further to expanding from to Recently, received test that cancer a ability direct direct-to-consumer health the we for new marker, hereditary with prostate a access genetic decisions. continue mission pioneer we can

health. include report a a features database of even launched health-related deeper service their uniquely also our subscription with into that content provides for nearsightedness new XX are points, and our is new of our reports premium new giving them We XXandMe+ membership, with acne report. reports insights. these members. health XXandMe+ customers two we and our subscribers to provide the reports insights million billions through genotype and health The over data their With severe course of positioned customers

connections new our into from customers' ethnolinguistic America some indigenous for analysis and analysis ancestry ancestral groups. new added genetic North includes ancestry XX insights we customers. Finally, This additional African to

to first our following programs pipeline into our marks clinical of advanced needs. we to CDXX the important a to human our period to XXME'XXX more collaborator Phase of serious have advance for pleased we targets fifth trials areas, an across continuing addressing therapeutics, drug our program collaboration side, disease wholly-owned therapeutic range patients for extend GSK, with new in validated look our a XX our enter discovery key medical target trial. second exclusive We than unmet in milestone clinical using forward the We I a therapeutic immuno-oncology find goal were to medicines genetics. year. that elect see and of to is program On our

and Under the discover of this continue our payment collaboration health will to of agreement our using proprietary targets we we one genetic $XX together, extension, and So onetime year terms validate novel million. receive drug database. can a survey for

Our our very of value collaboration GSK productive and believe development. by discovering decision collaboration database with we unique further has the been the drug extend novel targets to for demonstrates the GSK for

been help Lemonaid genome. understand access, and reports human of therapeutics to benefit excited Health. the has the from Our progress about launched, we our and I'm mission beginning acquisition our people from on the programs

will customers from over call will the quarter. genome. benefit results human these the And help to to Steve for of turn the All I review our our with that, financial

Steve Schoch

Anne. Thanks,

genome now in health personal access of which services of planning swing with integration in can the Lemonaid pharmacy to testing offer telehealth we With who closing full the November, professionals transaction service services. Lemonaid's e-prescribing, online and the care include our are

take with lives. professionals at unique learn our about Our to offering primary care ultimate with health millions to risk preventative scale genetic to people of healthier their to genetics-based actions customers. live this goal provide This and is for enable medical would to potentially integration partner

are into the starting results Lemonaid Health's this quarter, ours. financial part incorporated of integration, As

the segment. for inclusion financial current fiscal guidance We operations our reflect of updating are to year the also our consumer telehealth into

find option the probability lead the are that arrangement royalty the program share on targeting royalty ultimately CDXX. $XX that medicines for representing in Prior economic made commercialized. the opted to our database We collaboration. to to in the XXandMe joint target targets immuno-oncology of to was potential are Under us genetically of a pleased the the period the if doubling years. previous the exclusivity, program the of last we using annual We our the upside year validate we and and XX-XX development that the during extra collaboration the with successfully taking has cost success had elect under to discovery month for CDXX resulting GSK will the a for payment million GSK could believe announced decision the increase terms profit continues to our drug of extend election, value to GSK. GSK exclusive collaboration ongoing agreement, between of advancing long pay Recently, four and term substantial

program double Now if allocate if we to with the up the while costs as the brought more eligible to clinical economic This within has successfully into will elect allows resources This exciting flexibility earn capital program further curtailing and the XXandMe our is late-stage program advancement portfolio. to upside the our development decision royalties of trials. additional into successful, the option provides us retain programs royalty low advances option greater large to tiered with to market. option, therapeutic to digits be

third quarter financial performance. Now let our turn me to

December X% year. ended the $XXX representing Our nine same million, for XX%, months of $XX periods respectively, revenue respectively, and three prior XXXX, the million XX, increases and the was over and in

'XX. acquisition months shift These to telehealth of primarily by Lemonaid the revenue growth Nine-month revenue in primarily higher in revenues to quarter the a which occurred was second PGS PGS telehealth the or as recent addition subscription event Health two addition promotional by revenue growth subscription channel of genome were revenue revenue, and the business. partially partner's the lower was the of to compared fiscal quarter of of primarily the offset XXXX due personal months from quarter driven two increases fiscal from higher Third and of revenue. of revenue, service due third

total consumer revenue, three revenue of the composition services XXXX. for the the at ended for months revenue of December all Looking collaboration accounted substantially of approximately was approximately Research revenue. GSK from XX, XX% represented total nine services and revenue which XX% our

as services million period to The The XX, sales and month nine increase million respectively, $XX compared and ended XX% and were the XXXX, in profit was the the prior to year. $XXX ended the and $XXX in the with our $XX in same X% for therapeutics were lab business, revenue. the Our subscription attributable and development of three improvements expenses marketing a for Operating primarily promotion operating the processing revenue periods year. the the costs of Lemonaid's in of increases operating integrate and consistent a for $XXX million associated nine $XX and increased primarily acquisition gross transactional with as respectively, PGS expenses nine over increase million, services and three XX, same seasonal was December case lower costs prior million increased December expenses, telehealth well and in million, expense and XXXX, the and activities we three months and as telehealth months of into the driven ongoing expenses nine PGS related incorporation onetime research by representing month Lemonaid the business. period

higher and ended operating XX, Looking December nine months $XX The in was warrant XX, offset the as million prior at changes same $XXX noted expenses in net liabilities losses case earlier. increase in for of ended million $XXX $XX loss and the by million. XXXX, million, for the compared for million, year were loss nine by December the nine value $XX and respectively, of the the driven periods fair of And primarily in month the bottom net XXXX, period to period, three three line. the of and Net respectively. month

primarily costs. increase three EBITDA, onetime EBITDA at respectively, we XX, total Total $XX Now, and $XX period for the excluding $XXX Details XXXX, nine see $XX deficit EBITDA expenses a driven loss how of for to respectively. in adjusted operating adjusted increased year prior release. press million, loss and million, on months our mentioned adjusted same This was EBITDA. million our the please let's by earnings look December million compared the transaction the previously, adjusted define ended was and in a of

deficit $XX and further at three pattern segment, specifically months adjusted spending media for impacted which Services XX, Research million Services nine just primarily period period has we consumer and of Looking and XXXX, for the increase same year inclusion to a in sales is EBITDA marketing and note the that ended in Consumer expense respectively, million, quarterly for million, higher in the It as the $X The the and this respectively. December does of loss impact was and and variation for $XX will segment over saw EBITDA will EBITDA current adjusted well by segment segment $X the driven prior of the by Consumer million compared losses as the previously our as top varied timing seasonal Research from time. Lemonaid's telehealth adjusted have results. mentioned be line to the of important

we reason, year our this focus performance. full EBITDA adjusted For managerially on

efficient continue consideration strong to advancing in as over capital for In ended which Health. cash work Consumer including time. Services paid our economically Lemonaid We quarter, a growth us and strategic the of towards the approximately the balance $XXX provides million segment sheet, acquisition quarter $XXX we objectives. million with a cash the We for of part third Research substantial in

Now, our updated guidance. to let's turn

the business that results. into Our the telehealth from impacts include of we guidance will expect Lemonaid's inclusion our

to full in the million consumer March services $XXX is to projected XXXX, XX, million. revised which end range range from increase due to for $XXX the revenue to year of our business. a a We on fiscal to are million will projected addition primarily revenue million previous telehealth of This $XXX range for XXXX $XXX of increasing

favorable is fair operations, in loss effect warrant by the redemption range integration $XXX year adjustment offset value costs previous are million due in five of projected merger-related net the loss full following million from warrant months transaction the a the million We a to million. decreasing to to This primarily of December, inclusion range net costs. telehealth range of of to $XXX $XXX and projected of revised for decrease $XXX

other range net $XXX partially year $XXX full include adjusted of effects our $XXX million the range operations. moving We with business million by $XXX for to revised range previous of which to the we expect to projected offset are telehealth in our be will EBITDA, a loss consolidated from from losses increasing million we beneficial million a our as

the turn will to on I Now, Kenneth progress. our update Hillan over an us to therapeutics provide call

Kenneth Hillan

shown medicines. on that human of starting becoming least The report with development making to has front. pleased Research I'm therapeutics and in Steve you, have Thank discovery was progress on we're of success genetically the targets the information. genetic business improving productivity with established by at of the therapeutics probability validated the drug the double and goal drug

at Our the about discussed Recently, be and team high identify development. XXME'XXX, an R&D potential have signature. CDXXXRX our more said, antibody how T virtual recently then by our We was decided our from preclinical detail and as candidates GSK drug presentation which generates and access drug for known database cell clinic event the to promising to areas an and And to identified medical and This the Day month. important advanced that phase the an We from program, into Anne our both function. our can targets our product protein our genetic program XXX the need the discovery uses is period into advanced and the of of as target validating are jointly the development. unmet therapeutics an is genetic immuno-oncology drug and value advancing productivity to targets a information of address interested that investigational target CDXXXRX the current discovery discovery our data last regulator demonstrates identifying platform clinical we is collaboration and cell wholly for to the conviction new of success an in extend targets initially first translating proprietary of some the if GSK's have four have exclusive into identifying an decision learning for In is program collaboration with on immuno-oncology discovery exciting collaboration therapeutics. years, CDXXXRX myeloid in into drug you to over example for CDXXX our axis immuno-oncology website. our a the and additional year. year on antibody data XXME'XXX investor This owned in with of you're clinical the extend and than candidates in we they cancer cancer. a provide identified have genetics. additional less product targets fight testament and XX prime programs and in candidates The which CDXX targeting the have provides development. development. brings and to us with CDXX includes We makes to proprietary validation, the CDXX will were example CDXX hopeful discovery data human database. product potential combined Phase program to advancing value potential the medicine Ia XXandMe new that targeting based the genetically drug the This new able the against is validate patients this a collaboration's

for Our take reasons. decision to CDXX a royalty several option the program was based on

program GSK we this leading believe is its forward axis. of portfolio First, targeting independently well antibodies because to of CDXXX positioned move the

Second, portfolio discovery advance deploy and XXandMe. We with computational growth valuable opportunities. of therapeutic at drug therapeutic capital allows our and as insights yield this advanced to resources continue us the our database, our that programs strategically of capabilities, to novel we will and decision combined believe

turn call me let Now, to over the back Anne.

Anne Wojcicki

even we have more about Kenneth. and today Thanks, talked am about about excited coming. progress we've excited you the with I what

that care telehealth deliver look us genetics-based personalized, our forward, integrating by with see services. at scale rolling genetic care I prevention-oriented health personal primary can I genetics-based out As services

next-generation also on targets our improve factors We human risk that continue XX to pipeline over estimates to risk reports have and advance the we by our addressing incorporate programs will polygenic of therapeutics genetics. will validated horizon, score lifestyle

for it Now, let's up questions. open

Operator

Fauth. comes Tiago [Operator Our first question Instructions] from

open. is line Your

Tiago Fauth

the Credit questions taking progress. for Suisse. much from Congrats for here A Tiago the me. Thank of so question. you on couple

of is the of certainly we therapeutics the contribution. on business just way kind if relative I think the the of of and to instead kind rationale the track probably other Thank of that. understand that or follow-up aspect program? inform would So business an you helpful. kind extent can if that's on going other going to such related XX-XX there's that that be in one you better more detail, growth on to early spending forward? sense that for current to larger of The indicators in in And base, I of that be folks can of to guidance will kind us trajectory. -- kind royalty does it the with help on pretty how to of your opt-out us to be comment I'm there we've get curious And/or and that that understand way revenue including XX% you're there segment comps indications, so the any that opting out? made integration any question developers will of guys have quarterly likely and smaller for either for broad a the guys growth the a the of to XX-XX then, it's it. of side investment impact can the available you the R&D estimate any telehealth that by performance to But How a provide you indications? you. Is kind the in appreciate the play but on sense answer potential GSK. can gives Lemonaid ballpark a in It's revenue that, having a of would And pay decision a the to make hard keep I

Steve Schoch

Yes.

it second question I Kenneth I let kick the helps. can and maybe can your take off one in So I'll first and if chime

XX-Q on So and give to revenue, quarter that be our file are we we to the Lemonaid, going that's the in disaggregation you -- so tomorrow. going of we're in

million. a you look number months $X.X five of that or gives around million is of with see Lemonaid. And You'll $X kind that, our guidance

would -- the That business a We pieces. growing. you would the are as the sense base. script, revenue we by Lemonade won't number And just we two versus guidance go in driven for there of prior is Paul to how on to that is thing our very Johnson, is And months into the going business. going the you that we evolve gave is along. come guidance of Consumer and that's addition I largely going the that business consumer We'll is digital as economics experience in this that's delving runs some be business how the are other of I of the now part guidance fundamental expect, going a gives our and leading, really related uptick say, genetics I our So planning say to of how said disclosing quarter. the affect who lot to primary that they together is sort growing. to And and care the of we business the into things disaggregate the

it's Kenneth something that's and with going others. start capital to of CDXX let so for in time are the a There out just we're lot over now. just we're to decision. -- I'll not not allocation it going play And disaggregate and issues out

So I'll take that. let Kenneth

Kenneth Hillan

maybe just is to Tiago, GSK of Yes. earlier we've place, No, program to got able thanks, move in a confidence this in this I well reemphasize a kind I is lot that of forward is where said place Steve. during And that and call think the first what the immuno-oncology.

choices The the change second -- the looking that and return investment. really those it and maximize time. and with over working make we're thing we portfolio is on And evolve will -- think how I is we decisions today, to we're

if GSK a an that with it about as the the program it into return will For going of to goal don't will But we'll it continue our prepared investment. maximize definitely to portfolio If -- drops our Steve, there felt indications. think or to but we would is return opportunity I but in context just make over to a was got decisions want anything to be in those time, investment, programs by cost we on where be indications and we overall more incredible we example, really be program, be know capital, really small working in clinic. big don't as investing invest may move an of it's to hopefully add? is on I on program maximize you

Steve Schoch

No, no, that's good.

Tiago Fauth

for guys that Got [ph]. question. it. the you perfect sense Thank taking Yes, makes

Operator

you. Thank

Our next Daniel from comes of question Grosslight Citi.

Daniel Grosslight

season of that year's specifically prior perhaps Realizing kit you can [ph]. season here book more ASPs most of the you to until last normalized sales revenue comment actually holiday compared fourth comments and a versus around season, years? quarter, the the won't on sales kit at the how number this Thanks this and on the holiday holiday

Steve Schoch

is going any way of Yes. get I a would say from foremost specifically. of is year that the I sales to kit view say, What that out that wouldn't playing relative we're to first be. detail point into and that where to way guidance. that how into the their guidance make sales kit would we be would been all and exactly revenue pretty those I we of giving we've say wanted thought and we're will much the deliver

playing that according that guidance plan year. it's with out out started so we that And in pretty this much to

can as that, season look year. could So, growth that year. and gone about at it quarter say. XX% the to to Lemonaid had expected way. we're second look activities to, we -- -- we I'd last that's that's at within as a plan we you much I -- now the the what be do kind of the We there, be see versus at guidance way Lemonaid, think, of that's same would based say prior there that promotion the in XX% you look about lot the you guidance math. we in particularly behind the holiday to would there the with it thought we right where I similarities and you And had went And when when about on about say before up you went guidance we

us what expected. given we've year so the nothing results way about we in has the And radically changed the that and executed are

Daniel Grosslight

seeing? And seen health subscription just comment just breakdown at of were trended adoption those of you're Have versus then Have the plus attachment versus ancestry you towards we if can the the look on ancestry? health aspect ancestry more from rates percent kits a ancestry? of plus more health you Okay. to

Steve Schoch

how incoming Yes, are latter, customers we're -- the on with we're say subscription. taking the would pleased I customers --

in really needle happy the gross of an And script, I kind noted we're we so have basis probably not big totality. in say that on to -- But And that's as in bit It's is the against come subscription would we're our base, little say happy But starting revenue that's matter margin. it. a the all-in to where year seen. to material. moving it's we're with we growth with I year-end kind at that think about more the really the of

don't talk time promotionally I to yes, know, everything gone side through we say about As radically do as mix, either. we really And stable about a mix. and there's We It's lean, we to range. in the mix as that. into would we've continue health push you leans fairly different nothing

Daniel Grosslight

it. Got

Okay. year, revenue Can this out five change this that me Lemonaid? to $XX going annualize of Lemonaid Lemonaid of have you out that the year it that kind where us. And to just full Is million negative for a of Lemonaid you for I EBITDA contribution for And right is acquisition, now? then you EBITDA. appreciate like months the break then quarter in gets around if the breaking the I in EBITDA looks number that

Steve Schoch

it Lemonaid loss the we'll you, that million. was bit we've of to addition little net I about in revenue we'll with associated information a XX-Q in the believe share providing $X.X Yes, the you on which be given

-- that's will so the And XX-Q. that in be

Daniel Grosslight

you something? the understand you have on side. Okay, therapeutic I were that's helpful. that sorry, last just then saying one, -- And

Steve Schoch

Go ahead.

Sorry.

Daniel Grosslight

spend to evaluate spend to the us project that based sense you you're reallocating because side, on will ROI. have a that I term, you R&D to just programs term? each near understand therapeutic be other Or But going CDXX the in XX% on longer give next the really program? cut of XX back no the near On you months meaning to of XX the shoulder some in you can

Steve Schoch

[indiscernible]. that answer would I

Kenneth Hillan

the I that the and program CDXX could loan It's reasons the of with the trials at in one having excited multiple without owned. we the that looked we we forward large the in complex we fully capture that of I the royalty about good with total moving program. really value mean think capital of about terms maybe molecules. exposure are of combination amount But felt PXXX

exactly example where at program. capital therapeutics our great of of terms in want a it's XXandMe we So be to investing

opportunities and So have blessed that to capital. we're very with many we which fortunate deploy

we So long-term we're and continue make see definitely investments. and upside value to significant those time -- over

in. chip free So Steve, feel to

Steve Schoch

see, Yes. think the this in the R&D the And therapeutic the and consumer R&D. been along, -- of we R&D do and much give you'll of you growth what time of side the same we'll been I following the of and time the rate on that spending you've we between all you that line. XX-Q, that than has of of if average composition total And give noticeably business thing higher the kind

see major that's more more and So part. and and building on a just driver and therapeutics future by line more we revenues. as of And our that it R&D very intentional is being value accounted of for

can the would of to to decide of us royalty that thing option to you that stream a continue CDXX natural to for expect spend do. take when So in we like redeployment happen something be

that we potentially can into; know, money we you there's so alternatives. no lack tens programs of of have put As

Daniel Grosslight

Thank got Yes, it. you.

Anne Wojcicki

I'll showing Walke in I'm the you. Thank over turn the no for questions to further call back Wade any questions. queue. further

Wade Walke

you Thank much. very

come We to those of and Q&A time our top today. have questions answer some take have some want retail to platform questions in that from the I

value? The shareholder the for do we plans how translate you that first collected do question massive amounts is, and have into data of what

Anne Wojcicki

to I something great Wade. on question this. have since this thinking well and it been the for -- with seen that There's that elements side. at therapeutic about information look value, on and as appreciate, the the valuable a they meaningful health consumer customers, take we can opportunity for we've them. they ambulatory back That's over we I company. real that started to a And that, customers. There's continue our as us to for side deliver our And two it's years really

And we've at on integrating be information be that delivering use to made risk to prediction. that that back looking continue at be better. the is additional these sets able we data will better to we their wearables data something health we're going are and commitment to our to and how and So better like obviously them better

On more therapeutic the and novel data able the insights we're we the therapeutic to side, actually we better have, targets. develop have

what grows, tremendous and and able with of all will also as data the about GSK programs really ultimately world maximizing where independent our be what time we we that but fair sure seen benefit we our to world, the different as from thinking extension in GSK with and we we've be a post there's those XX that with large. are therapeutics all customers and we that the year of ways are opportunity over are that on will our at quite make will data fifth enthused amount enthused GSK to value spend able So be

Wade Walke

question were products? are next development growth, The questions three into about that plans a what Great. efforts for and to same your related research new is expanding actually it is, the topic. of And compilation expansion and future product

Anne Wojcicki

information, are want how understand but was of apply is in Lemonaid the -- our acquisition to a how they we life. growth it that we're key And with the their they really future. the engaged to component it better genetic Growth about to want customers Yes. thinking see

that focus and believers which is are an new to prevention. really on we your world of big type So opportunity a on care there health based genetics is pioneer

reports pharmacogenetics think to want the to of is the we're our Lemonaid And variant Wade? a also about pharmacy. take today we through have genetic the the leveraging impacts how Lemonaid which starting I so out call that integrate they is gone growth the second have might in component opportunity help and that or future. just And how the customers in that is genetic medications understand that their FDA What risk their to various be was able that with can and what part, key

Wade Walke

second was research new The development efforts part into expanding and products.

Anne Wojcicki

the data there's That in of of the talking we that to I of at Yes. all and some new along look starting things happening. terms with is of data about types an incredible collection goes before with was all the opportunity have

various devices, there's that your of this us EKGs steps a to reports. So whether are rate into opportunity on incorporate lot our variability for your it's or to or start coming heart

it, about prediction or really think able people So best to data the risk data one number the can actually give high-level best we the be you being to all being of that a really look risk best where amass into at this different what can we summarize prediction. just is sets that at and

So that's focused side. the really we're where highly consumer on

Wade Walke

couple are next more questions financial The side. of on the Great.

two is that The the is drivers the revenue excited three about? first team what one long-term most or are

Anne Wojcicki

you So, can Steve you that again? one take Sorry, that? say will

Wade Walke

three that or drivers Sure. what is about? are team It's most two the the long-term excited revenue --

Steve Schoch

starting I had to you on mute. was Sorry, like... talk I

Anne Wojcicki

Yes. Steve, do do you take? want to take want that? to you Or me

Steve Schoch

care going the the into side, revenue addressable therapeutic that therapeutic on our big and move royalties personal so and going Lemonaid where becoming market We're market move take lot to about that, as into the services way product. that fitting that's drive business I'll accessing the on our far, we're the programs enormous just those And investment our those. into is addressable we're putting to Yes, primary relative think revenue those a think so participation world anticipate I that's from we drive taking we And driver. straightforward. that genetics be as products in and we're we're consumer profit will addressable about and the future Yes, research which in that. and either earlier market; future a and talking fully the all pretty to is the side its this of taking that

that's -- profound a as opportunity those really along. move So we

to data going the then we platform are the out other there could the life. probably bring we to has on and other better those talk in that our the return some them ways earn about to ways benefiting platform this partners, human that but thing. the not with So is, I about ourselves talked thing are bring and work a for genome from it help customers think live mission Anne those insights And of investment those when other has only before be primary

that do find we're to other so going And that. are there think I ways to

Wade Walke

next make the what are doing profitable? XXandMe And is, Great. you question to

Steve Schoch

through from last fiscal or that positive million which year. our we business when if our portfolio million towards the we focus adjusted as of this filings, about that move the to follow breakeven. you fiscal And bear we from really little And XXXX [ph] started on consumer of end of $XX down on you where EBITDA We the to Yes. getting $XX we're revenue-earning breakeven, million we to cash 'XX, the down put moved history. back bit current know, more a goes is around began an business to to flow bear $XX recent as position above

midst As primary business look and acquiring increasingly go through recurring we at those pharmacy, bring into cetera, big going We're piece we're again, that lifetime relative digital on economics revenue. focus et like going to a to begin to much before. we we care better to value that us did business platform new give customer-level this and our of of for associated customers,

led. plan that those and magic marketing to innovation more convinced the to we as then think so as their this on having things and that's kind very thing big not a do a other I a part be going together talks efficiency both this other much relying Paul be investing And product way much And of and to is product-led lot on -- time in going. we be would a I'm here will And think leaning the of product put to over about of about it. -- and get --

Wade Walke

Steve. your merger do next you of vision? pharmaceutical is, a part see with a question Thanks, The company

Anne Wojcicki

shareholders, -- we're always But strategic responsibility strategically evaluating but to options our we're we're always mind top it's don't do of way options. as -- about. We We thinking vision. a come not my that of evaluating we're have not that part do anything always

Wade Walke

there health Okay. care The with insurance plans any is, one partnering in next are providers companies? and

Anne Wojcicki

is different XXandMe of that is outside because Also, and am aligned and really that a our of something about in even opportunity most care a We is are incentives health always that, health unique And are with And more look think customer. very traditional of what I there we Part our are that's entirely obviously, with partnerships new great the And I type types care exploring our care companies deviate insurance of an direct reason, it's meeting really mission existing health question. that providers big that, companies more system. of consumer. working care this. the end actively believer we're at we our direct-to-consumer not system, by and or to for a traditional any meaning it's in of evaluating really are would now for customer. right the traditional insurance something individuals. reimbursement but not world something provide relationships doing think always that I where us because I at from being a to look it always right

Wade Walke

Next expand you -- have to do question next Europe? and is, our to plans any

Anne Wojcicki

sell of actually European We do in number countries. a

We some and have ancestry alone in and ancestry health many. in

U.S. every we there's Our in samples only regulatory largely different health are processed as as requirements a requirements. more. But we and countries and not in of and are country well ancestry do in the in because different have even language Europe, or ancestry number

Wade Walke

Anne. Thanks,

over up this I'll wrap session and call. we'll turn it back that, to the Anne, to Q&A wrap with think, I you,

Anne Wojcicki

next We you to at much. questions that in Great. forward appreciate you appreciate call. and come look Thank with we engaging Thank our participating. you. Well, I so everyone the

Operator

Thank participating. this Thank you. conference. all for does you and conclude today's Ladies gentlemen,

You may now great disconnect. day. Have a

23andMe Holding (ME) 11 Feb 222022 Q3 Earnings call transcript