ME - Earnings call transcript Q2 2025

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Operator

Good day and thank you for standing by. Welcome to the 23andMe Fiscal Year 2025 Second Quarter Earnings Call. [Operator Instructions] Please be advised that this call is being recorded. I would now like to turn the conference over to your speaker for today, Katie Watson, Vice President of Communications. Please go ahead.

Katie Watson

you. Thank

quarter I release go reporting will we results the begin, find investors.XXandme.com our also everyone A for press XXXX. our the issued second be encourage available we today's website. to to to financial replay on Before of fiscal webcast of earlier today

forward-looking to the review facts Also, release, please are Forward-Looking made predictions limited website of discussion not to, solely outlook SEC's or Please statements on call that which available that matters but in call. during which our note to is that our found SEC filings, statements that for encourage impact a the press to performance. including, regarding future section statements. periods factors our on entitled future refer information us. are for this based can you certain are numerous this and applies may These not website to historical now be Statements our management's We

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

Joining Co-Founder; are to our over Joe Anne. our Anne Financial us now Chief and I'd Accounting and Officer. Selsavage, turn Executive Officer the our on like call Chief today call and to Wojcicki,

Anne Wojcicki

the Katie. Thanks, second into addressing and quarter. Hello, recent call we'll start today's then like to developments get everyone. by I'd company, at the

Independent X XXandMe In new of October, reconstituted late Directors. appointment Directors our of the Board with

immediately. to pleased mission are We these in experienced are accomplished that our who and could jump executives committed

split. standards a executing Board by with our regained Nasdaq We a listing compliance and as obligations and our company fulfilled have reverse stock public reconstituting the

remarks. of for Joe financial is operations, prepared the costs reduce in and our XX%. business the to development this impact are all addition, restructuring company his we will Under a therapeutic programs In discuss reducing undertaking workforce approximately of success. we and restructuring further announced by restructuring, XXandMe discontinuing position yesterday, that long-term streamline the

believe assets in to immunology our stage by oncology continue the clinical preclinical our We and shown promise pipeline.

for process Therapeutics Therapeutics data of be that are monitoring continue strategic trials, while exploring As XXandMe. actively we completed. for outside the wind our of will a of enable we and the patients development will supporting the intend to division, collection pipeline down We wind-down and in our start immediately range their continued alternative of the strategic alternatives process clinical

These but XXandMe are the supporting our to begin mission are dedication positioning actions this team the to on that transition. our we employees a future. appreciate necessary and the committed sustainable and path for difficult impacted believe of putting We the and more company contributions through

participation the and We development efforts also and our benefit staff will remain of can deeply the trials patients. grateful for study work their to in investigators for to ensure patients, continue clinical

to our deliver genetic The to considerable quarter cash our company flow of to to health healthier XXandMe leverage the longer, of and Now XXXX. in lives. live of becoming helping spectrum key objective platform of We strides of positive insights. integrated goal full second millions while committed people made team services I'll turn our year fiscal preventive the a continues sustainable remaining

our customer specifically picture, Total our a is and lab plan. family clinicians, made trained from testing, in health advanced your available truly other health We preventive and tests longevity genetics, future help health platform health guidance a to exome sequencing, the service, history of understanding personalized entire combining to We lab Health including genetics data membership believe derive comprehensive base. complete

power QX, needs. in progress of our and platform research, XXandMe bringing genetic telehealth made insight consumer to serve the significant critical

fewer QX. associated weight influenced Studies we to BMI years initiatives and is by to elevated good a in launched lived on management of As in our that XX% genetics X is focus BMI part longevity, of that prevention estimate health. and number with XX% up

highlights. for side to efficacy, of study impact and understand and few genetics treatment. GLP-X length how launched score a utilizing high of XXandMe+ A approaches. can subscribers. premium new of eating, polygenic report XX% people new thousands technology knowing management with up effects genetic a enrolled can Emotional emotional to on in impacts BMI We participants eating We this launched a weight XXandMe's risk and inform

and We semaglutide weight-loss Lemonaid tool prevention to for that an prescribed offering membership and longevity medications. on be mission. brand compounded and our also These with GLP-X convenient, our consistent is platform launched customers a cost-effective manner or medications the name a in to members be telehealth Health receive and can enables life-changing access them important

and historical to market-leading to Scandinavia with continue feature, new with Japan, from subscription-only Swahili the our Europe, medieval the Avars and Iceman. figures add for new improve historical matches XXandMe's medieval and historical We Coast, and and ancestry regions Ötzi matches, features Germanic the composition

available first also premium assistant customers, health help We and accessory understand AI the XXandMe+ launched find to reports. and DaNA,

subscription quarter. than recurring than in rates XXandMe focus with percentage of revenue in result of total able versus with to recurring the more the shifting X% the double in that improved higher-margin retention and growth These our XX% QX increased only revenue we revenue were for in to services, to line on prior developments more streams, year continue is

more human builds indicates XXandMe's to front, genetics that On that by using we X to presented drug the research targets previous supported research data on likely Xx are succeed. and a research study

using of data increase many not but find the With also insights, and scale can we even further. rate only proprietary relative novel of mapping the success gene algorithms, our

the in We of of studies National with collaboration entire largest cell caliber discovering and value continue Medicine. organizations that Institute demonstrate the Important Health database one genetic of XXandMe of University diverse also the benefit published to research these of John and School we the insights most such Hopkins disease population. of and are research into as with sickle new working trait the

clinical preliminary showed Medical of European carcinoma annual QX, response. be Turning clear-cell and In and expression XXME-XXXXX Oncology renal-cell for on partial at confirmed The immuno-oncology demonstrates tumor patient clinical we CDXXX could in increased Society with genetics benefit, data presented CDXXX to indicating benefit programs the one Therapeutics. data monotherapy with XXME-XXXXX promising show XXME-XXXXX Further, our correlated evidence data higher clinical meeting. biomarker. human stage a the that of

also of saw cancer. tumor non-small cell inhibit We a mouse in patient-derived lung XXME-XXXXX model growth

While disease part several genome. of drug customers mission and we and target as are of collaborations companies to we with down run this community part pharmaceutical leverage clinical winding pursue and across people among our to over genetic business, million others. human validation, areas, unmatched benefit our from efforts These trial collaborations biotech XXandMe's awareness recruitment continue XX will including with to discovery help

to the harnessing scale. human of genetic established was improve people's Therapeutics germline by health XXandMe power at data

to have Over years, identify last leveraging the we therapeutic develop a X major large potential and the of number unique and to XXandMe step database targets forward, valuable taken insights.

advanced productive the with and positive We a collaborator, have assets have collaboration into in pharmaceutical engaged highly in-house clinic with X-year major GSK, X immuno-oncology a results.

We are look we it proud efforts. collaborative we've of to with and forward work done, further the advancing

with turn numbers. it to Joe walk that, I And over to will through the

Joseph Selsavage

Anne. you, Thank

strides net year. by million, same the other by mitigated revenue driven positive for improving Revenue decreases lower lower the the This adjusted These lower telehealth research for collaboration consumer year. term During growth at kit rates. XXXX. membership by revenue, sales the kits by as decrease services services and same upgrades period tiers July towards orders, prior as quarter, $XX by period is PGS from make partially were exclusive GAAP well growth to loss quarter services and due and the the discovery we XX% cash driven continued PGS in flow over in our XX% EBITDA goal renewal mainly volume XX% our was increased in our sustained consumer customer the business, revenue a operating as in of GSK of of prior to approximately concluded in

membership PGS, services, year fiscal consumer revenue QX. accounted from of Research approximately fiscal for of 'XX represented for X% total services, year total which for revenue Revenue revenue 'XX XX% includes services and QX. approximately telehealth

we license expect October. announced year begin the As to in last fiscal from half second recognizing GSK a revenue XXXX data of reminder, the the

profit primarily mentioned more our high-margin was consumer and offset research than lower growth which representing the X% Our in over year. the $XX prior a for previously. the by same period revenue services membership services, the The in driven was gross quarter million, increase increase

the expenses for expenses reductions fiscal were period in in was the Operating for compared programs. current driven as resulting while prior several significant expenses, in XXXX. 'XX the R&D disposition quarters in the in U.K. retaining and year GSK a same QX following prior the of opted therapeutics-related reflects operating in year. workforce compared Lemonaid The decrease million by the programs, personnel-related to compensation and including also those $XX GSK we The lower the reduction of collaboration improvement Limited expenses upside $XXX million quarter in spend royalty noncash on stock-based prior for lower Health partner quarter for to expenses August

Looking in second period mainly operating year. net to loss driven bottom the the in improvement prior quarter as of the expenses, same was discussed. net $XX quarter was just line. compared at a million for million the $XX Net by for The in loss loss savings

adjusted EBITDA. our Next,

as adjusted second how adjusted compared loss Total $XX our in personnel-related adjusted a of was million see For quarter in define please by services the deficit same a loss corresponding for as profit, press EBITDA due was profit. EBITDA and on for to offset R&D earnings partially and to the year. research improvement gross well GAAP, we EBITDA the release. primarily The details of in services reconciliations to expenses gross the million $XX improvements lower our consumer period prior lower

and XXXX. to ended million of as $XXX XX, We cash of $XXX the million with quarter equivalents compared cash March

liquidity financial concern for necessary will in disclosure. the its was to date XX financial The commitments for months filed the after a need additional this resulting going concern include quarter the Our company fund going our expenditures and XX-Q disclosure. statements

and our business yesterday to to capital. its position, the as plan, company improve is operational considering operating additional expected restructuring financial announced ongoing substantially and To we execute expenses managing liquidity measures The raising expenses. working implementing cost-cutting well as our business is reduce condition

of to expect improve and extend costs. million approximately help incur runway. we our will related believe financial $XX and these primarily We position We condition severance, annualized and termination-related cash transition expect least expenses, our $XX to at liquidity per and to million year, efforts cost savings in cost onetime

to committee compliance and want listing also price requirements. I Independent Board we a recently and various Nasdaq conclude, regained the with bid majority that mention minimum I closing Before Board

towards Looking getting the future. path for more are on the company a on XXandMe we ahead, sustainable focused positioning

We'll now Q&A. turn the call to

Katie Watson

Thank you, Joe.

have and through came shareholders Technologies. we our in Q&A Say a few that platform through from that We use questions investors

Katie Watson

plan What question for for recovery? first Anne. The is is the

Anne Wojcicki

Good Katie. Thanks, question.

So about. I want chat a number to areas of different

regaining referenced, was Joe a priority top what first, us. So compliance for

new So that the Board, reverse price, did stock with share we the split.

priority for high a was us. So compliance regaining

sustainable well was Second, more becoming top those really priority. either with now of shut -- to achieved are to a or all costs. our deprioritizing on as And out-license -- assets committing becoming as that been has down going dramatically we so reducing and expenses, cutting a Therapeutics

And getting Third our there. that now I business. into growing our focused opportunities. well reports, Therapeutics we was all products, as that as fourth, out-licensing subscriptions growing historical on mentioned, value the fun continuing advantage the health focusing matches, as are now the encourage take like and programs the product are areas on we're database on are -- recognizing more really really on more the in subscription really a the value customers focusing customers that and to was of And and features business to our the additional subscription the putting like additional

those sure we pharmaceutical And and trials and leading front trials. are and clinical there that we are for an and increasing that the industry discovery interest center focused we clinical the XXandMe are from leveraging in are therapeutics genetics And using in on making the in they see on opportunity world opportunities.

Katie Watson

Anne. Great. Thanks,

is question reverse Joe. was X-for-XX stock The split for you, the Why necessary? second

Joseph Selsavage

this year of we have of notification Katie. Nasdaq of at We most transaction stockholders completed to per subsequently listing recent least price The you, split the $X Nasdaq we requirement. XXandMe a at is split listing by news compliance approved reverse in October now received Stockholders. Annual that Thank reverse are stock that And was the stock reverse the regain the Meeting with good our compliance in split bid stock the after from requirement this share. with

Katie Watson

Thank you, Great. Joe.

profitable? I'll industry third business what being to to the of model, you, steps question, and the to taken your The it that nature are current make due hand Joe.

Joseph Selsavage

Katie. Thank you again,

to and We our collaborations. value the and prioritize are revenue that with to partnerships research products subscription continuing provide we growing our our ongoing recurring customers reflect

of announced the in at Therapeutics all clinical have and savings. in look annual as cost will cost to pausing yesterday result of continuing we significant our that restructuring and trials, reducing also on are base, We which our assets we headcount

Katie Watson

last in are Great. goals I'll And looking what Anne, question, complete XXXX? direct the you to to

Anne Wojcicki

through subscriptions really focused I restructuring as mentioned, with well and after subscription to we announced that's as Well, continuing the X Therapeutics plans today and to costs, our the provide recognize getting of there and for that we're and cutting some with part the be more to customers encouraging that on the enabling of growing really subscription. is, value value more product them as and areas have in the customers

success. is and to drug as evidence increasing I outcomes And or the business. utilization of process the database going increase showing clinical the is trial there's Second in genetic said, -- likelihood that increase the discovery

that those products on industry. focusing So the we can serve developing so

be Therapeutics that that so our eventually out-licensing developed benefit program to and great customers. is last could they really continue be can And products

Katie Watson

you. to questions top we'll be to going back operator hand I'm now. That Thank completes it the answering. the Great.

Operator

Thank conference. joining for you all today's

all may You disconnect.

23andMe Holding (ME) 12 Nov 242025 Q2 Earnings call transcript