ME - Earnings call transcript Q4 2022

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Operator

Good morning, and welcome to the 23andMe's Fiscal Year 2022 Fourth Quarter and Year-End Financial Results Conference Call.

As a reminder, this call is being recorded. At this time, all participants are in a listen-only mode. After the 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 off the call. you. Thank ahead. go Please

Wade Walke

you. Thank

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

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

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

Anne Wojcicki

Wade. you, Thank

months everyday with reality. of personalized specifically year taken have integrate the ultimate over genetics over a into steps last care are We the to excited healthcare the several last begin about and goal making to we the

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on on building focused consumer the new a and risk our side management genomic services. and health will now disease bridge risk efforts health Our with be awareness between health

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our Our next out roll to are health services. new genomic steps

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diverticulitis bowel reports for customers XX. total new report, quarter over to launched last subscribed new the three report. also We reports irritable skin XXandMe+ syndrome this released bringing The available to reports included cancer,

we drug XX% research. On failure. and world's platform crowdsourced believe medicines. become we because an largest the validation development target Drug business, for development drug have fail commercial we advantage therapeutic fraught is in genetic the of in with of drugs to have development side our About

our studies unique to associations thousands using validated disease validated genetic are targets succeed. developed of genetically And genetic as with targets containing that shown drugs our of tens database have phenotypes. However, are twice all on of likely

than this create to generated has the on a a more And more conditions pipeline underpinnings platform XXX of range platform publications wide diseases, of of research genetic we've than research XX and traits. Our used two programs Phase believe engine benefit role discovery therapeutics in eventually people the our that genome. come a the in We will of helping human out now from significant I trials. play clinical with which

the the we the new our combination believe services efforts genetically our to our measure With validated mission. poised develop program. health discuss of based Personal targets, I to therapeutics Genome new now Service, to on of to call genomic our and we our over Kenneth accomplish turn full are therapeutics

Kenneth Hillan

Thanks, Anne.

platform we yield therapeutic to benefit passionate discovery, XXandMe, at and customer-driven insights could drug transform potential that are Here about its and target ultimately development research our patients.

This have unique risk about Our our in crowdsourced that the they human diseases genetic world's a chance way affect how to health-related identify significantly a largest of how shown it disease. of targets treated. for to and backed and a gene becoming is genetic powerful insights database by be can targets understand is not. do drug medicines been With those and has opportunity higher resource, evidence changes to very platform offer that we has than this the potential the have research

advancing key Conference important to targets regulator also the GSK We the several advance and These this combination elected our as antibody is advancing last database human CDXX continuing was share to additional discovery AACR program year year on the of cell our target immuno-oncology multiple option clinic at a immuno-oncology and transition value for T of collaboration year's stake developed for plans wholly-owned a extend XXX genetic antibody large program to and our this protein, for with our both for further an immuno-oncology with therapeutics database in We $XX targeting using XXME'XXX, collaboration into genetics. GSK decision continuing clinic. drugs. function. GSK'XXX cell identifying other GSK's the include has profits. new our And in finally, CDXXXRX year an CDXXXRX exercised which our signature. achieve on in this that data and promising of genetically investment medicines linked therapeutics to our first milestones based proprietary myeloid test cost is This is option us to enthusiasm in provides enabled to in view demonstrates identified million. their royalty Our this business. this to in phenotypes. a We from our of presented an March. earlier

collaboration with identified in has Our very has productive XX over jointly less advanced and been and the years, into GSK development. than clinical collaboration targets one program therapeutic four

continue biology and next research targets grow. patients. to and our new in candidates and this can phenotypic development, our value as growing significant understanding year, number into genotype in in to continues preclinical progress to database we human from fiscal customers As to drug of genetics associated advance a identify to clinical development plan We we XXME'XXX and new believe result for of move data

Steve over review to our it results. I'll Now turn financial to

Steve Schoch

Thanks, of a service followed It Kenneth. of genomic Fiscal the Health, Lemonaid which public highlighted June transitional November year XXXX year important underpins a for XXXX, now planned was by in strategically as our acquisition in listing was earlier. by our XXandMe. introduction Anne health discussed

operations were great the progress. While our existing accomplishments day-to-day made company, also those milestone for

Personal our XX% X.X by our genotyped our competitive During XX.X extending million advantage. Service, business fiscal million data Genomic or PGS count significantly customer or XXXX, customers to increased

our from and meaningfully XXX,XXX gross while active our contributing XXandMe+ improving addition, on In margin revenue average customer economics. in grew also subscriber base to to XXX,XXX

investments XXandMe moved our into Our as a in you therapeutics has have the and increased programs Kenneth told pipeline to validated program we XX than portfolio our more clinic. second

on exclusive is for continue $XX of the a comes a insights and this build by business clear with value extension This the we our year, All-in-all, Services and and and it be our payment, a payment. is GSK’s which operationally, million in platform to very January can annual value. the produce. productive Research sustained data year, starts partner will signal a fifth strategically data XXXX double election was Our remain contract in real in previous to July increased which

that our the results year off XX, Now to ranges. performance. our for previously financial within issued let's XXXX noting ended March I'll guidance turn XX-month start financial by were

revenue the XXXX the representing the prior were increases months of versus quarter million, periods three of Research months the ended and and inclusion March increases revenue offset XX%, XX, for XX-month revenue. over due revenue. three the telehealth respectively, by primarily same and Services revenue inclusion Fourth Research driven year of year. of and PGS growth was partially a was in was These $XXX the period. prior by revenue telehealth XX% primarily respectively, $XXX growth revenue subscription to and revenue Our million higher lower of XX five Services and increased months by

of XX% the March services the XX% three total GSK the and and PGS XX, XX% revenue composition total our ended our which total XXXX. Research substantially includes both approximately the XX for telehealth and revenue, from was at months which XX% services of revenue of our all revenue, months total XX approximately of for revenue of Services for and XXXX three the for accounted Looking collaboration for revenue. Consumer represented ended months March XX, months the revenue

$XXX compared the marketing attributable in and to several increase expenses, for periods million to the three of cost for and for expenses transaction was $XXX business. one-time million months XX-month increased development the XX-month period, factors, with for XX, acquisition respectively, in driven and the increased and The within promotional $XX periods improvement both profit March in March year. were ended prior million from the the expenses litigation PGS costs with Health. prior gross the XX% the The including therapeutics-related XX XX, the sales fourth and sales. the X% was operating activities the of a million, $XXX year. mentioned was consistent the same representing settlement and revenues $XXX XXXX cost telehealth The net XX Operating PGS million, of Our $XXX gross increased case months in and additionally addition the while periods associated operational previously and by three increase XXXX research profit of million efficiencies benefited over respectively, expenses, Lemonaid quarter of one-time and payment expenses, ended period, same in and

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

our at look us adjusted EBITDA. let Next,

a period year For deficit million, total adjusted driven of and press increase see for please the increase respectively, EBITDA, in $XXX months operating same XXXX was details to $XX and and the about expenses how March we EBITDA define The Total the compared respectively. XX, related and million XX ended earnings prior three adjusted reconciliations, the deficits million in release. was million for of adjusted $XX our primarily in $XX EBITDA mentioned previously. by deficit

just & at same variation specifically million in Research as the three the impacted and a of by $XX million EBITDA revenue our the We segment's full-year and million $X Consumer months the Services March spending, pattern Looking of surpluses segment segment, XXXX which media in million and for surplus quarterly ended the to $XX XX over prior we factors saw deficit topline time. the a is the the adjusted exhibited the and for recognition including for timing and $XX for of & does respectively. XX, fourth the quarter periods Research has EBITDA note that varied seasonal year Services is Consumer adjusted of PGS for compared

on adjusted five of Research sales expenses driven impact & performance. deficit previously mentioned year full-year adjusted Services segment EBITDA versus marketing this results. our The as months reason, XXXX in prior well increase we focus Consumer this was the the of EBITDA telehealth as For full-year surplus by from inclusion primarily and in managerially

our with to $XXX breakeven consumer to the above both cash, our including as We advance balance Research We new quarter time provides the to expand returning services. solid segments. continue to ended capital sheet, & cash in with towards continue we a flow health with Services will offerings work sufficient over Consumer segment genomic which and million us

to let's Now turn updated our guidance.

on the in conservative Our current is approach in full-year to financial uncertainties a guidance general planning, fiscal economy and XXXX based markets. the recognizing

consumer rather than maximizing PGS and existing businesses prioritizing growth. of minimization telehealth, are of Within the topline the we EBITDA deficit adjusted

expected segments on year, revenue the we health the focus to fiscal fiscal each. these later in business service genomic genomic launch growth, the those not strategically we which business, financially options health until meaningful products fully services not Therapeutics services new For from year within to Because in is new valuable and appropriately anticipated contribution and do the to company’s invest future and new consumer foresee XXXX. our include most drive plan and

carries telehealth the our year five business million. XX, impact inflation the effects as are projecting revenue reminder, a As to XXXX, as company's overall of we the the range costs. and fiscal the year on consumer the $XXX including as consolidation XXXX of versus general which to March year of into guidance anticipated full-year segment only background, will current fiscal months certain well fiscal in XXXX, for full-year of of our XXXX million end be on $XXX With in that

our to that, call to loss full-year are million. be of million And projecting deficit $XXX now in turn are full-year I the $XXX million. consolidated be range $XXX over net we in to finally, GAAP EBITDA million Anne. of With to will range back the $XXX to projecting We the adjusted

Anne Wojcicki

Thank you, Steve.

a see, for can have coming the you agenda year. As we big

are the We the for excited and opportunity. challenge for

Our success a for is of in endeavor millions people. this win

Now let's questions. open it up for

Operator

the Instructions] Our comes from Credit from line [Operator question Fauth of Suisse. first Tiago

open. Your line is

Tiago Fauth

the taking for questions. Thanks

So just two for me. ones quick

XXXX for does or cash And first current side. that expectations cash couple perhaps the questions one just position a plan? burn the the I on how is operational much and have of runway current on given So your therapeutic value

it's clinic base you. to you be the could readouts active from across read-through any recent now space and but of visibility, have on expectations Thank perhaps to XX hard CDXX forward? that additional what programs, have asset a thoughts entering going the then reasonable any though TIGIT programs Just

Anne Wojcicki

Thanks, Tiago.

Let first me for and to hand Kenneth part the that second. obviously Steve, answer to the

Steve Schoch

Yes, sure.

million. of million rate balance is kind million $XXX for about, with adjusted we of operating of the sustained you that guidance cash with to you the starting put if of of burn $XXX side-by-side that of can terms that flow $XXX kind years. So gives of the in a were that what the couple sense talked it EBITDA, runway next And kind

that. a – can time this benefit for to look would some us amount so a we do makes us more company. at for the kind generally, configuration that over think think funding funding that's at But about flexibility as I the have this give in that do and gives say, time And only next future about of appropriate, of front. of We of we'll we we looking time at option now. even And be though it's it way we're I you the time, right of think think, certain on guidance this for every the I have because one-year benefit company as we'll look opportunistic kind sense and

Kenneth Hillan

I Thanks, all, of you just Anne. Steve. sure. about kind Thanks, Yes, maybe first recent can I Yes, data. asked of Tiago, think just talk

of cancer was trial its data, And in cancer. as that cancer, non-small report a progression cancer, it then then study. lung study, a in lung free small cell survival. trial you in or antibody was In – the trial further cell and lung both non-small endpoint negative cell anti-TIGIT, theses co-primary meet small Roche second of didn't know, the One the data lung cell a

disappointment the was in So first interpret, improvement this both of immature, they say data to it's I endpoints. is And there say, but and that study numerical noted continuing. obviously clearly, think the Roche the a also that did there a bit co-primary they a analysis, of it's hard did was OS

we'll So that to to I how wait emerge. and just continues see have think data

CDXX the for means terms In what program. of that

signature around and know CDXXX. pathway from you are As genetics the that our immuno-oncology

multiple of with the know for least CDXX, summary the helpful. then drug GSK as GSK but not anti-PVRIG that iTeos, communication surface continues invested potentially is ability antibodies now anti-TIGIT in of forwards. really had antibody be pathway. antibody the hopefully really with things them had parts also program leading also interesting to they is that plans an just we And one is responsible on you so and I one in will And collaboration that in think oncology. of But with at things that Phase The CDXX the and I, moving

Tiago Fauth

Thanks. Yes. Appreciate that. sense. makes That

Kenneth Hillan

collaboration, say because then so from And we of were we've about you deal in identified we've obviously in in programs, but so about that part our Again, can great do GSK where have, targets we many the asked kind not things the a of pipeline. XX portfolio. we've there's programs the – database,

in And so program. I excited I further started expect as I any this provided next we very working haven't hard those, about program, We're know we advance guidance when very the CDXXXRX I about and continuing or studies think, to next on year. January really remain optimistic Phase of but Phase would you IND which

Tiago Fauth

it. Got taking sense. That the makes for again question. Thanks

Operator

question from come the next of will Our line Citi. from Grosslight Daniel

line Your open. is

Daniel Grosslight

guys. if of some for we to back guidance helps go Maybe Hi, and for question. for bridge of these me. can XXXX, numbers it Thanks kind the taking

seems like So you're lot of on as a more profitability, titrating sense. growth focus makes down you which

the flat, midpoint it at a of Lemonaid revenue. also revenue include but So does full-year is effectively

And adjusted be organic EBITDA down going core for loss that revenue midpoint. the of around kind to million increasing $XX So by then the is also for is year.

some of down. you're growth seem consumer of doesn't impact like the So titrating immediate it getting the

increased slow the and loss So in health between new if XXXX? revenue this therapeutics and I could that organically, point increase loss the the due in of put and the down growth that service finer on assume genomic but in is maybe to expansion investment, bridge you help the a in

Anne Wojcicki

Absolutely.

hand you, me to it first. Let Steve

Steve Schoch

Yes. sure. for Yes,

telehealth. just year of line noted, full months full-year of versus you also the a the a the with comes with comes of as five this of months XX topline It So of topline telehealth. bottom

hit of giving that's noted, that's of Research you of the continually rise part that. a the difference. that'll component what have growing as Services & So side, gives we part to EBITDA. therapeutic segment investment rise on And that And to Consumer

inflationary the terms at of The base, company a here inflationary the time. we other higher on and have just in the things those is running across all that promo thing our during that's rate merit this going costs labor entirety is of on which of and

how actually run on there of to won't launch of out hiring, And to getting the thing. months and getting so I there XX that impact that that that that's telehealth some the And effects be of will big the work terms in an launch be think full instance of then the expenses the like sort specifically do incremental really while the going modest we'll new for business throughout taking and business. operating as just that is products,

relativity. So just to put those in

Daniel Grosslight

helpful. Yes. That's

little report understand that something is a or that in? the readouts And provider this to I health service addition bit Lemonaid with a to new this investing just service this in Okay. that genomic is to want better, be a you're Lemonaid XXandMe provider, the going connects

Anne Wojcicki

It best the you is gets to customers on say well interpret really care part is customers able help a how be really this as into future also about life. – for implement do our connecting if connecting now think as to your I of the first plan information. they to about to best And actually people want with information with that provider, step I would a

this as as product, and Lemonaid healthcare the process, actually able providers with and also the like how beginnings So really acquisition SPAC look as being enhance that really said we do pharmacogenetics. pharmacy more well the do of at with to of part our component part the – the and more subscription to we we with access

of year, early beta with really provider and to we I So do how offering customers follow product access our help to couple a more you to we think imagine very And access can recently next get kind whole the customers a with care care. will later respect we that year comprehensive launched have in reports to a future the giving plan. a

Daniel Grosslight

That makes sense.

How and says care have button provider, there? or so connect my And XXandMe is to like what subscription? me a or for then you model that, charge a bucks app I thinking would XX that something economic Would are it be monetizing you that? about a on

Anne Wojcicki

tapping. I think I you're Yes. mean, that

I is what is that think happening today.

to know I not are what said, So a types want I I of that work you services us the to of right now testing lot be our with out beta saying, XXX% doing can if but and a rolled our subscription you of more customers, think our Like some expect into don't customers to programs. there's get? it's investing

years that's So back our and again. fundamentally incredibly I think the last XX the when where with think on engagement. – over high People company over I engagement and rates, we have back come

more. there's so a And want demand clearly people where

And help have about take focus to services our really us online door been so the sort it's really be a opportunity when advantage that of open at the coach, unmet by but really potentially medical it And a people talk the lot of to not provide always for us they to I yet has reports, up for think directed information. on could prevent. to again, don't that various of that ability a saying, but professional you prevention. you need the care a services, help look have And to condition, of are having you if you

you So we into life? that can implement help how now your

Daniel Grosslight

Yes.

of – of that competitive spaces [CACs]. some mental the Steve in and channels say this very out, on this especially then you're you're of are And that when space? thinking legacy the customers, Lemonaid. marketing unit of direct-to-consumer inflation Lemonaid of the have has lot and economics legacy acquire of new deteriorated of in company some spend Lemonaid about outside oriented some would kind DTC the And or but on health you I the channels, all business of There's piece social talking which you too, How core kind obviously to been mentioned other about Okay. building and results. really Lemonaid particularly service a the search weighed and these in of this

Anne Wojcicki

Yes.

CACs buying again, me was and to pieces really the Steve. could then Let execute And have that get with us are hear million all in that customers it's those quite XXandMe say medicine. that for over and has I place you competitive. absolutely the differentiator genomic Lemonaid reason that and like, that is in genome to up answer XX hand and infrastructure would The begin going so to on engaged. I terms your connection it I we to the of we more

opportunity the if personalized think and it's there's of specific personalized So else for Steve, want when to us, jump really anything in I about that no really that. in terms recommendations do numbers? genetic care, in integrate delivering you else position about there's information, one do a to

Steve Schoch

and team at coming that rolled one we're businesses Again, the for category in number in planning and material we the out. get mentioned the as increment the up it's on on built And guidance, mean, anything focused the I from year. the those setting not tested plan year and this I new this as, Anne

in at legacy of is account resourcing topline and taken we're currently way we've into the drivers are that And so them. that in configured as the inflation media noted growth little that spend about, And as there this they're cash as think just you talked businesses efficacy of our a and the and business looking the the And topline dialing in efficiency your emphasizing we'll we've media we're this I be bit spend. year. back over

Daniel Grosslight

Yes. me, hop and queue. last back it. And I'll one into Got for

this that a a you different I little combo now of but readout be might Here on a out on filed CDXX? just year trial. kind the expecting Are bit, that or asset. is still pushed it latest call noted GSK our on CDXX think

So expected readout I'm just CDXX that if for still is curious this year?

Anne Wojcicki

Kenneth?

Kenneth Hillan

Yes, sure. Happy to do Thanks. that.

now the continued development responsible of you solely GSK So for know, CDXX. I GSK'XXX think, is as against

communicating their to studies we can that are the responsible for say be And think going to so is they What plans. enroll. continue I

so really on I further details that. don't have And

Daniel Grosslight

Okay. Thank you.

Operator

I'd not to moment. any I'm to Wade in comments. like turn you. questions over for showing this queue any additional at the call Thank further the

Wade Walke

Thank you, Victor.

a We few and top have through answer some questions our questions here from investors to we'll going of online I'm take that these. the platform

creating for future future any XXandMe? modify is question the what to And products? current first The Do products? you plans your do for ideas have plans have are you

Anne Wojcicki

take would if say up there's that. of the of I this can healthcare definitely feel with I interaction program. the I gist and I of where providers. has to rise kind like product. catch to And of the evolve the think amazing are we And door opportunity an telemedicine, opened the I pharmacy, used the Yes. even rise really comfortable people online mean,

seen take. them, our So genetic a of and physicians always this it's genetics helping them a of training. best having been challenge And how serve can giving by we reimbursement around we and have of lack lack vision they the consults information on can steps how customers with next

we have access direction full people as ongoing have to product this as information, where help create will providers. from think them it, opportunity well to and they now, learn information, it get So integrate the we about stack can get healthcare they really I a they can will

there's integrated I for what So next on focused really experience. think the And out we have building real stack to a really year. full a opportunity that's are

Wade Walke

Thanks.

we for seem compete their are much question is how planning we Our subscription incentive revenue? ancestry to one spending. be How and and additional are this? customers addressing without with to next Our done

Anne Wojcicki

is very focused has specific mean, a the solving finding say XXandMe market, quite your need, from would about what which ancestry market. your while I would we're I really ancestry the we're records. is is I health about much on that significant And say ancestry. getting which larger relatives, different is a component

So comes that as people themselves, about continue how to health integrate is about our important it that discovered learn out and can in it life. information learn as and really then is it

see obviously as we but new health come back we well people the relatives, levels back, really customer reports. that And have come new they for the so when for engagement

– more more on and way. say think So from I both the a but very And and there's emphasized and that different we've ancestry market that leveraged we market genetic we're appears information, all XXandMe would be larger it done to I health analysis the while leveraged for purposes

Wade Walke

space? the with in already in involved interested company Thank are you. genotyping in question next or field, The the editing is XXandMe is at DNA, you of all partnering as investing the in a gene experienced field

Anne Wojcicki

would Gene definitely therapeutics is Kenneth. Well, our could actually applicability team. having that look phenomenal one I a day editing see I with to tool

could there's don't kinds but tool to our one research. leverage that, a day it's I anything of add So else want you own we to if great know that potentially for Kenneth,

Kenneth Hillan

Yes.

happy very I mean, So exciting respond. a space. Yes. it's to

editing. types that could it and the editing we in like or there have an multiple where potential are something and our Obviously that impact think people something from CRISPR-CasX patient's to different there have was database the gene from tools. I lives – know we get insights involve of genetic would thought gene

might a think we – GSK partner that they're the companies. Today, not GSK. company. as other I you gene they to with for which we case, editing look in opportunities collaboration, with exclusive know have is And

in would it think something I and continue rather for the XXandMe of but kinds near-term, monitor those to absolutely than of opportunities. So be we'll look something for more long-term we thing a observe that and

Wade Walke

company Thank you. The see five next question where you is do years? in the

Anne Wojcicki

is impact that kind or building that over as significant well with love interact is, of in we absolutely what that and the XXandMe really as here a the how healthcare is direct-to-consumer system strongly we in long-term, lives – for to our to actually I directly genomic customers, question. engage do how general. customer's our believe expertise. I because how medicine them how great you is bringing expertise the are vision making a What are

about So XXandMe genomic when to everybody. over the I the how bring about it's next five years, does think opportunity medicine really

additional be meaningful incredibly some throughout might could it's aspects going care. everyone human part And is everyone, applied be tool an genome already that but It when to that be some day the of but is one of all agree healthcare providers, of care. to direct-to-consumer, talk going be channels, can I to through

to get So care care. how actually going has are the are universal is their where in to personalized very from we it getting integrated the opportunity genetics and for everyone world moment today where a people few truly

Wade Walke

current candidate Kenneth, very the testing Thank think already you they're of answered asking drugs? I about I know the about, you. drugs question now. right testing question when It's exciting. The clinical And know about is in referring that to next more GSK'XXX. we’ll

you XXME'XXX? could about our program for a maybe just second So wholly-owned speak

Kenneth Hillan

Sure. to Happy Wade.

That had that in entered is XXME'XXX signature program we a XXXX, We earlier this program, on immuno-oncology. which that immuno-oncology January, it's think in biology important our the we antibody initiated CDXXXRX data announced clinical an our based So and clinic targets trials. yes, year.

the to and make enroll continues expected. We continue to patients trial the progress as

to program have unique the programs. really things portfolio of XXandMe obviously to of that that refer to we're earlier, is as a excited about advance we continue So I forwards. And then have that's one we –

of in most Some some wholly XXandMe. them are with but are assets of GSK, owned collaboration that – those are also for

that most so the looking advance highest the success continuing of to clinic then probability the ultimately are towards development. those into move And clinical just to and with compelling those forward

Wade Walke

Kenneth. Thanks,

stockholders? are your company make more for the Next is plans what question to profitable

Anne Wojcicki

I think over I A can hand then And also couple to of Steve. things.

I with sure the we're our of focused XXandMe that a are we have maximizing everything and using are think value really on we all been has of with have, that we acquired recently really lot Lemonaid. sure how that of making out resources making one, efficient we especially

have a absolutely the you well me to Obviously Second, when around conviction add product road, opportunities a and real genetics. see founded compounds, is and in we beginnings that an of believe healthcare strong our products that serves do more serve are the very we as that as therapeutics, it's for system successful that really a clear there really need clear healthcare in world, opportunity well a there have that world we is need longer general. consumer subscription additional path. investing defined and lot I a And our pipeline. customers develop us are the is on the for and but And the to enhance to the in so that in

a especially coming – from have – human having a We genetic target.

as our will healthcare path So believe success products foundation. a to Anything well when the customers look incredible our developing for here, and on have add solve as a likelihood really we efficient two, therapeutics opportunity being to that are for need going genetic of a are world; how of but and Steve? because the our there three, higher resources; we really three continuing one is there using really I that with an creating very at is this, prongs

Steve Schoch

couple a on to point it. a of Just things put finer

happened got the look we the when what consumer revenue we breakeven more and the in were we of fiscal mean, relationship basis. marketing how got think the that we to of between were this business terms I in much business driving. at on above – spend to is XXXX in efficient that we And – I operating flow cash ways spend one marketing category much

consumer marketing. more So by I of keys the I think lies be driven more that The think segment one it becomes the of driver by segment part and product in of that than driven. becomes does there, that will

a run So size back to growth fixed new super we the that functions the important topline, think profile and as consumer the the products important minimum late there's super rollout year to are I a of And the concept the to then G&A some in costs them scale there. in returning have infrastructure. segment good – because to also in technical some

to important cash business get the to company. order back that's super get that those contributing And So first to are to both our that. of segment

Wade Walke

Thank you.

it question one more I partnerships? entering then think any new last take and you here up. are The question is we'll wrap

Anne Wojcicki

to I continue after partnerships. I world, customer announce offering. but would always we definitely we in right about enhance research-related at don't can we else looking we that that can will now, our think say our to will ways believe are we there's anything ways And enhance that post-GSK the be able

partnerships mind. today top to of us always our always evaluating nothing We're for So opportunities, announce. is but

Wade Walke

All right. Thanks.

turn the that, up and Q&A, Anne we'll the I over So to to wrap with think I'll wrap up call.

Anne Wojcicki

to quarter. for say you talking everyone to joining you and to to next want thank Just forward we look

Operator

Thank This call. participating. conference for today's concludes you

now disconnect. have day. You a Everyone great may

23andMe Holding (ME) 27 May 222022 Q4 Earnings call transcript