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23andMe Reports FY2023 Second Quarter Financial Results

23andMe Holding Co.
23andMe Holding Co.

Second quarter revenue grew 37% to $76 million
Consumer revenue grew 27% year over year due to the addition of telehealth revenue
On track to achieve FY2023 financial guidance

SOUTH SAN FRANCISCO, Calif., Nov. 07, 2022 (GLOBE NEWSWIRE) -- 23andMe Holding Co. (Nasdaq: ME) (“23andMe”), a leading human genetics and biopharmaceutical company with a mission to help people access, understand, and benefit from the human genome, today reported its financial results for the second quarter (“Q2”) of its fiscal year 2023 (“FY2023”), which ended September 30, 2022. 23andMe is the only company with multiple FDA authorizations for over-the-counter genetic health risk reports, and in particular the only company the FDA has authorized to provide, without physician involvement, genetic cancer risk reports and medication insights on how individuals may process certain commonly prescribed medications based on their genetics. The Company has also created the world’s largest crowdsourced platform for genetic research, which it is using to pursue drug discovery programs rooted in human genetics across a spectrum of disease areas.

“23andMe continues to deliver on the promise of personalized healthcare that followed the completion of the Human Genome Project over 20 years ago. 23andMe has the world's largest re-contactable database for genetic research, which makes us best positioned to unlock the potential of the human genome to treat and prevent disease. With our acquisition and integration of telehealth and digital pharmacy services, we will be able to provide our customers with one of the first large-scale personalized, genetics-based health services,” said Anne Wojcicki, Chief Executive Officer and Co-Founder of 23andMe. “Our genetic database also provides us with one of the largest research platforms for therapeutic discovery – producing over 50 therapeutics programs to date. Just this week our wholly owned 23ME-00610 Phase 1 program targeting CD200R1 will be the subject of a trials-in-progress presentation at The Society for Immunotherapy of Cancer's annual meeting. In our efforts to help people benefit from the human genome, we believe it is our genetics-based health services and the new therapeutics that come out of our discovery engine that will provide the greatest prospects for fulfilling the promise of personalized healthcare.”

Recent Highlights

  • Received FDA clearance to provide interpretive drug information for simvastatin, a commonly prescribed cholesterol medication.

  • Expanded customer database to approximately 13.4 million genotyped customers.

  • Launched three new reports for 23andMe+ members. 23andMe+ is a membership service that offers insights and features to give members even more actionable information to live healthier lives. These reports are developed by 23andMe scientists using data and insights gathered from thousands of customers who have consented to participate in our research. They use machine learning to create a statistical model that estimates a person’s likelihood of developing a specific condition using thousands of genetic markers, along with a person’s ethnicity and birth sex. The new reports released in the second quarter were:

    • Anxiety report

    • Fibromyalgia report

    • Seasonal Allergies report

  • Launched a rare diseases study in four rare conditions – systemic sclerosis, ANCA-associated vasculitis, pemphigus vulgaris and dermatomyositis – with the hope of identifying new treatments and insights for these hard to study diseases.

  • Published results from a study that identified five regions in the human genome associated with susceptibility to pneumonia, a leading cause of death worldwide.

  • Published a large genetic study that identified hundreds of genes associated with insomnia, a condition that is also linked to depression, anxiety, schizophrenia, as well as metabolic disorders.

  • Introduces three new East Asian ancestry compositions: Northern Chinese & Tibetan, Southern Chinese & Taiwanese and South Chinese.

“We continue to see good revenue growth in our consumer business with the addition of telehealth services revenue,” said Joe Selsavage, Interim Chief Financial and Accounting Officer of 23andMe. “We also received $50 million from GSK, subsequent to the end of the second quarter, as payment for their option to extend the exclusive target discovery period of our collaboration for a fifth year. This helps strengthen our balance sheet as we work to create a new consumer experience with our genetic health service and advance our therapeutics programs, which further enable our opportunities for growth and profitability.”

FY2023 Second Quarter Financial Results
Total revenue for the three and six months ended September 30, 2022, was $76 million and $140 million, respectively, compared to $55 million and $114 million, respectively, for the same periods in the prior year, representing an increase of 37% and 22% respectively. Second quarter revenue and six-month revenue growth was primarily driven by the inclusion of telehealth services from the acquisition of Lemonaid in November 2021, increased Research Services revenue and continued growth in our subscription service. The Research Services revenue included revenue from GSK as well as non-recurring payments from other partners. These increases were partially offset by lower Personal Genome Service (“PGS”) revenue.

Revenue from Consumer Services, which includes PGS, telehealth and subscription services, represented approximately 75% and 80% of total revenue, respectively, for the three months and six months ended September 30, 2022. Research Services revenue is primarily derived from the collaboration with GSK and accounted for approximately 25% and 20% of total revenue, respectively, for those same periods.

Operating expenses for the three and six months ended September 30, 2022 were $106 million and $221 million, respectively, compared to $74 million and $147 million, respectively for the same periods in the prior year. The increases in operating expenses in the second quarter and six-month periods were primarily attributable to increased labor costs and the addition of sales and marketing expenses from the previously acquired telehealth business. These were partially offset by lower R&D expenses due to decreased spending on the GSK6097608 (GSK ‘608) program following the Company's election to adopt the royalty option versus continuing to share in development costs.

Net loss for the three and six months ended September 30, 2022 was $66 million and $156 million, respectively, compared to a net loss of $17 million and $59 million for the same periods in the prior year. The increase in the three-month and six-month net loss was primarily driven by a benefit from changes in fair value of warrant liabilities of $30 million for the three months ended September 30, 2021 and higher operating expenses in the current period (as noted above), partially offset by higher revenue.

Total Adjusted EBITDA (as defined below) for the three and six months ended September 30, 2022 was a deficit of $30 million and $79 million, respectively, compared to a deficit of $30 million and $57 million for the same periods in the prior year. The increase in Adjusted EBITDA deficit for the six month period was driven primarily by the increase in operating expenses mentioned above and partially offset by increased revenue.

Balance Sheet
23andMe ended September 30, 2022 with cash and cash equivalents of $411 million, compared to $553 million as of March 31, 2022. Subsequent to the end of the quarter, a payment of $50 million was received from GSK, as mentioned above. The decrease was primarily attributable to the Company's overall operating cash flow deficit.

FY2023 Financial Guidance
23andme reconfirmed its full year guidance following Q2 FY2023 results. Full year revenue for fiscal 2023, which will end on March 31, 2023, is projected to be in the range of $260 to $280 million, with a net loss in the range of $350 to $370 million. The full year adjusted EBITDA deficit is projected to be in the range of $195 to $215 million for fiscal year 2023. As a reminder, this guidance includes the full-year impact of the consolidation of the Company’s acquired telehealth business into its overall consumer business as well as the current and anticipated effects of general inflation on certain of our costs.

Conference Call Webcast Information
23andMe will host a conference call at 4:30 p.m. Eastern Time on Monday, November 7, 2022 to discuss the financial results for Q2 FY2023 and report on business progress. The webcast can be accessed on the day of the event at https://investors.23andme.com/news-events/events-presentations. A webcast replay will be available at the same address for a limited time within 24 hours after the event.

About 23andMe
23andMe is a genetics-led consumer healthcare and therapeutics company empowering a healthier future. For more information, please visit investors.23andme.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements regarding the future performance of 23andMe’s businesses in consumer genetics and therapeutics and the growth and potential of its proprietary research platform. All statements, other than statements of historical fact, included or incorporated in this press release, including statements regarding 23andMe’s strategy, financial position, funding for continued operations, cash reserves, projected costs, plans, and objectives of management, are forward-looking statements. The words "believes," "anticipates," "estimates," "plans," "expects," "intends," "may," "could," "should," "potential," "likely," "projects," “predicts,” "continue," "will," “schedule,” and "would" or, in each case, their negative or other variations or comparable terminology, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are predictions based on 23andMe’s current expectations and projections about future events and various assumptions. 23andMe cannot guarantee that it will actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements and you should not place undue reliance on 23andMe’s forward-looking statements. These forward-looking statements involve a number of risks, uncertainties (many of which are beyond the control of 23andMe), or other assumptions that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, and as revised and updated by our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The statements made herein are made as of the date of this press release and, except as may be required by law, 23andMe undertakes no obligation to update them, whether as a result of new information, developments, or otherwise.

Use of Non-GAAP Financial Measure

To supplement the 23andMe’s unaudited condensed consolidated statements of operations and unaudited condensed consolidated balance sheets, which are prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”), this press release also includes references to Adjusted EBITDA, which is a non-GAAP financial measure that 23andMe defines as net income (loss) before net interest expense (income), net other expense (income), changes in fair value of warrant liabilities, income tax benefit, depreciation and amortization of fixed assets, amortization of internal use software, amortization of acquired intangible assets, non-cash stock-based compensation expense, acquisition-related costs, and expenses related to restructuring and other charges, if applicable for the period. 23andMe has provided a reconciliation of net loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA at the end of this press release.

Adjusted EBITDA is a key measure used by 23andMe’s management and the board of directors to understand and evaluate operating performance and trends, to prepare and approve 23andMe’s annual budget and to develop short- and long-term operating plans. 23andMe provides Adjusted EBITDA because 23andMe believes it is frequently used by analysts, investors and other interested parties to evaluate companies in its industry and it facilitates comparisons on a consistent basis across reporting periods. Further, 23andMe believes it is helpful in highlighting trends in its operating results because it excludes items that are not indicative of 23andMe’s core operating performance. In particular, 23andMe believes that the exclusion of the items eliminated in calculating Adjusted EBITDA provides useful measures for period-to-period comparisons of 23andMe’s business. Accordingly, 23andMe believes that Adjusted EBITDA provides useful information in understanding and evaluating operating results in the same manner as 23andMe’s management and board of directors.

In evaluating Adjusted EBITDA, you should be aware that in the future 23andMe will incur expenses similar to the adjustments in this presentation. 23andMe’s presentation of Adjusted EBITDA should not be construed as an inference that future results will be unaffected by these expenses or any unusual or non-recurring items. Adjusted EBITDA should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. Other companies, including companies in the same industry, may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Adjusted EBITDA as a tool for comparison. There are a number of limitations related to the use of these non-GAAP financial measures rather than net loss, which is the most directly comparable financial measure calculated in accordance with GAAP. Some of the limitations of Adjusted EBITDA include (i) Adjusted EBITDA does not properly reflect capital commitments to be paid in the future, and (ii) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures. When evaluating 23andMe’s performance, you should consider Adjusted EBITDA alongside other financial performance measures, including net loss and other GAAP results.

Investor Relations Contact: investors@23andMe.com
Media Contact: press@23andMe.com


23andMe Holding Co.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except share and per share data)
(Unaudited)

 

 

Three Months Ended
September 30,

 

 

Six Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue (related party amounts of $14,925 and $10,002 for the three months ended September 30, 2022 and 2021, respectively, and $23,190 and $21,212 for the six months ended September 30, 2022 and 2021, respectively)

 

$

75,659

 

 

$

55,204

 

 

$

140,172

 

 

$

114,443

 

Cost of revenue (related party amounts of $(271) and $(184) for the three months ended September 30, 2022 and 2021, respectively, and $(510) and $264 for the six months ended September 30, 2022 and 2021, respectively)

 

 

37,386

 

 

 

27,276

 

 

 

76,409

 

 

 

55,818

 

Gross profit

 

 

38,273

 

 

 

27,928

 

 

 

63,763

 

 

 

58,625

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development (related party amounts of $2,717 and $5,864 for the three months ended September 30, 2022 and 2021, respectively, and $6,266 and $11,886 for the six months ended September 30, 2022 and 2021, respectively)

 

 

52,598

 

 

 

44,523

 

 

 

104,607

 

 

 

88,755

 

Sales and marketing

 

 

24,835

 

 

 

13,588

 

 

 

58,269

 

 

 

29,007

 

General and administrative

 

 

28,881

 

 

 

16,264

 

 

 

58,524

 

 

 

28,860

 

Total operating expenses

 

 

106,314

 

 

 

74,375

 

 

 

221,400

 

 

 

146,622

 

Loss from operations

 

 

(68,041

)

 

 

(46,447

)

 

 

(157,637

)

 

 

(87,997

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

 

1,392

 

 

 

92

 

 

 

1,637

 

 

 

136

 

Change in fair value of warrant liabilities

 

 

 

 

 

29,828

 

 

 

 

 

 

29,294

 

Other income (expense), net

 

 

(687

)

 

 

3

 

 

 

(1,122

)

 

 

17

 

Loss before income taxes

 

 

(67,336

)

 

 

(16,524

)

 

 

(157,122

)

 

 

(58,550

)

Benefit from income taxes

 

 

1,271

 

 

 

 

 

 

1,525

 

 

 

 

Net loss

 

$

(66,065

)

 

$

(16,524

)

 

$

(155,597

)

 

$

(58,550

)

Other comprehensive income

 

 

829

 

 

 

 

 

 

1,453

 

 

 

 

Total comprehensive loss

 

$

(65,236

)

 

$

(16,524

)

 

$

(154,144

)

 

$

(58,550

)

Net loss per share of Class A and Class B common stock attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.15

)

 

$

(0.04

)

 

$

(0.35

)

 

$

(0.20

)

Weighted-average shares used to compute net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

449,899,537

 

 

 

406,886,060

 

 

 

448,211,708

 

 

 

288,190,872

 


23andMe Holding Co.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)

 

 

September 30,

 

 

March 31,

 

 

 

2022

 

 

2022

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

410,891

 

 

$

553,182

 

Restricted cash

 

 

1,599

 

 

 

1,599

 

Accounts receivable, net (related party amounts of $50,001 and nil as of September 30, 2022 and March 31, 2022, respectively)

 

 

52,883

 

 

 

3,380

 

Inventories

 

 

13,806

 

 

 

10,789

 

Deferred cost of revenue

 

 

6,786

 

 

 

7,700

 

Prepaid expenses and other current assets

 

 

20,240

 

 

 

25,139

 

Total current assets

 

 

506,205

 

 

 

601,789

 

Property and equipment, net

 

 

44,057

 

 

 

49,851

 

Operating lease right-of-use assets

 

 

51,888

 

 

 

55,577

 

Restricted cash, noncurrent

 

 

6,974

 

 

 

6,974

 

Internal-use software, net

 

 

11,507

 

 

 

9,635

 

Intangible assets, net

 

 

64,928

 

 

 

73,905

 

Goodwill

 

 

351,744

 

 

 

351,744

 

Other assets

 

 

3,429

 

 

 

2,593

 

Total assets

 

$

1,040,732

 

 

$

1,152,068

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable (related party amounts of $3,652 and $12,567 as of September 30, 2022 and March 31, 2022, respectively)

 

$

10,549

 

 

$

37,930

 

Accrued expenses and other current liabilities (related party amounts of $2,763 and $5,772 as of September 30, 2022 and March 31, 2022, respectively)

 

 

44,420

 

 

 

44,588

 

Deferred revenue (related party amounts of $35,993 and $9,181 as of September 30, 2022 and March 31, 2022, respectively)

 

 

81,923

 

 

 

62,939

 

Operating lease liabilities

 

 

8,014

 

 

 

7,784

 

Total current liabilities

 

 

144,906

 

 

 

153,241

 

Operating lease liabilities, noncurrent

 

 

73,867

 

 

 

78,524

 

Other liabilities

 

 

2,639

 

 

 

4,647

 

Total liabilities

 

$

221,412

 

 

$

236,412

 

Stockholders' equity

 

 

 

 

 

 

Common Stock - Class A shares, par value $0.0001, 1,140,000,000 shares authorized as of September 30, 2022 and March 31, 2022, 266,937,775 and 228,174,718 shares issued and outstanding as of September 30, 2022 and March 31, 2022, respectively; Class B shares, par value $0.0001, 350,000,000 shares authorized as of September 30, 2022 and March 31, 2022, 188,515,261 and 220,637,603 shares issued and outstanding as of September 30, 2022 and March 31, 2022, respectively.

 

 

45

 

 

 

45

 

Additional paid-in capital

 

 

2,167,968

 

 

 

2,110,160

 

Accumulated other comprehensive income

 

 

1,632

 

 

 

179

 

Accumulated deficit

 

 

(1,350,325

)

 

 

(1,194,728

)

Total stockholders’ equity

 

 

819,320

 

 

 

915,656

 

Total liabilities and stockholders’ equity

 

$

1,040,732

 

 

$

1,152,068

 


23andMe Holding Co.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)

 

 

Six Months Ended September 30,

 

 

 

 

2022

 

 

2021

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net loss

 

$

(155,597

)

 

$

(58,550

)

 

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

 

16,747

 

 

 

8,402

 

 

Amortization and impairment of internal-use software

 

 

2,078

 

 

 

1,106

 

 

Stock-based compensation expense

 

 

59,430

 

 

 

20,064

 

 

Changes in fair value of warrant liabilities

 

 

 

 

 

(29,294

)

 

Gain on sale of fixed assets

 

 

4

 

 

 

42

 

 

Gain on lease termination

 

 

 

 

 

(15

)

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable (related party amounts of $(50,001) and $(25,000) for the six months ended September 30, 2022 and 2021, respectively)

 

 

(49,502

)

 

 

(24,226

)

 

Inventories

 

 

(3,017

)

 

 

(11,494

)

 

Deferred cost of revenue

 

 

914

 

 

 

(44

)

 

Prepaid expenses and other current assets

 

 

4,899

 

 

 

(5,360

)

 

Operating right-of-use assets

 

 

3,689

 

 

 

3,496

 

 

Other assets

 

 

(834

)

 

 

(654

)

 

Accounts payable (related party amounts of $(8,915) and $(4,422) for the six months ended September 30, 2022 and 2021, respectively)

 

 

(26,968

)

 

 

(997

)

 

Accrued and other current liabilities (related party amounts of $(3,009) and $5,545 for the six months ended September 30, 2022 and 2021, respectively)

 

 

(10,367

)

 

 

(2,276

)

 

Deferred revenue (related party amounts of $26,812 and $3,788 for the six months ended September 30, 2022 and 2021, respectively)

 

 

18,984

 

 

 

(3,574

)

 

Operating lease liabilities

 

 

(4,426

)

 

 

(3,696

)

 

Other liabilities

 

 

(2,008

)

 

 

45

 

 

Net cash used in operating activities

 

 

(145,974

)

 

 

(107,025

)

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(1,945

)

 

 

(1,810

)

 

Prepayment for intangible assets

 

 

 

 

 

(5,500

)

 

Proceeds from sale of property and equipment

 

 

2

 

 

 

1

 

 

Capitalized internal-use software costs

 

 

(3,008

)

 

 

(1,807

)

 

Net cash used in investing activities

 

 

(4,951

)

 

 

(9,116

)

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

3,944

 

 

 

5,624

 

 

Proceeds from issuance of common stock under employee stock purchase plan

 

 

3,238

 

 

 

 

 

Payments of deferred offering costs

 

 

 

 

 

(30,642

)

 

Proceeds from issuance of common stock upon merger

 

 

 

 

 

309,720

 

 

Proceeds from PIPE (related party amounts of nil and $25,000 for the six months ended September 30, 2022 and 2021, respectively)

 

 

 

 

 

250,000

 

 

Net cash provided by financing activities

 

 

7,182

 

 

 

534,702

 

 

Effect of exchange rates on cash and cash equivalents

 

 

1,452

 

 

 

 

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

(142,291

)

 

 

418,561

 

 

Cash, cash equivalents and restricted cash—beginning of period

 

 

561,755

 

 

 

290,862

 

 

Cash, cash equivalents and restricted cash—end of period

 

 

419,464

 

 

 

709,423

 

 

Supplemental disclosures of non-cash investing and financing activities:

 

 

 

 

 

 

 

Purchases of property and equipment included in accounts payable and accrued expenses

 

 

762

 

 

 

34

 

 

Stock-based compensation capitalized for internal-use software costs

 

 

1,320

 

 

 

437

 

 

Reclassification of deferred offering costs

 

 

 

 

 

3,971

 

 

Assumption of merger warrants liability

 

 

 

 

 

75,415

 

 

Conversion of redeemable convertible preferred stock to common stock

 

 

 

 

 

837,351

 

 

Reconciliation of cash, cash equivalents, and restricted cash within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows above:

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

410,891

 

 

 

701,050

 

 

Restricted cash, current

 

 

1,599

 

 

 

1,399

 

 

Restricted cash, noncurrent

 

 

6,974

 

 

 

6,974

 

 

Total cash, cash equivalents and restricted cash

 

$

419,464

 

 

$

709,423

 

 


23andMe Holding Co.
Total Company and Segment Information and Reconciliation of Non-GAAP Financial Measures
(in thousands)
(Unaudited)

The Company’s revenue and Adjusted EBITDA by segment and for the total Company is as follows:

 

 

Three Months Ended
September 30,

 

 

Six Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

 

(in thousands)

 

Segment Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Consumer and Research Services

 

$

75,659

 

 

$

55,204

 

 

$

140,172

 

 

$

114,443

 

Total Revenue (1)

 

$

75,659

 

 

$

55,204

 

 

$

140,172

 

 

$

114,443

 

Segment Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Consumer and Research Services Adjusted EBITDA

 

$

2,324

 

 

$

(760

)

 

$

(14,673

)

 

$

(1,265

)

Therapeutics Adjusted EBITDA

 

 

(18,663

)

 

 

(18,828

)

 

 

(37,128

)

 

 

(37,131

)

Unallocated Corporate

 

 

(13,316

)

 

 

(10,095

)

 

 

(27,568

)

 

 

(18,563

)

Total Adjusted EBITDA

 

$

(29,655

)

 

$

(29,683

)

 

$

(79,369

)

 

$

(56,959

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of net loss to Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

$

(66,065

)

 

$

(16,524

)

 

$

(155,597

)

 

$

(58,550

)

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

Interest (income) expense, net

 

 

(1,392

)

 

 

(92

)

 

 

(1,637

)

 

 

(136

)

Other (income) expense, net

 

 

687

 

 

 

(3

)

 

 

1,122

 

 

 

(17

)

Change in fair value of warrant liabilities

 

 

 

 

 

(29,828

)

 

 

 

 

 

(29,294

)

Income tax benefit

 

 

(1,271

)

 

 

 

 

 

(1,525

)

 

 

 

Depreciation and amortization

 

 

5,152

 

 

 

4,871

 

 

 

10,256

 

 

 

9,508

 

Amortization of acquired intangible assets

 

 

4,267

 

 

 

 

 

 

8,582

 

 

 

 

Stock-based compensation expense

 

 

28,967

 

 

 

10,427

 

 

 

59,430

 

 

 

20,064

 

Acquisition-related costs (2)

 

 

 

 

 

1,466

 

 

 

 

 

 

1,466

 

Total Adjusted EBITDA

 

$

(29,655

)

 

$

(29,683

)

 

$

(79,369

)

 

$

(56,959

)

(1)    Certain department expenses such as Finance, Legal, Regulatory and Supplier Quality, Corporate Communications, and CEO Office are not reported as part of the reporting segments as reviewed by the CODM. These amounts are included in Unallocated Corporate.

(2)    For the three and six months ended September 30, 2022 and 2021, acquisition-related costs primarily consisted of advisory, legal and consulting fees related to the Lemonaid Acquisition.


23andMe Holding Co.
Reconciliation of GAAP Net Loss Outlook to non-GAAP Adjusted EBITDA Outlook
(in thousands)
(Unaudited)

 

 

Outlook for the Year Ending

 

 

 

as of September 30, 2022

 

 

 

Low

 

 

High

 

Reconciliation of estimated net loss to adjusted EBITDA

 

 

 

 

 

 

GAAP Net Loss outlook

 

$

(370,000

)

 

$

(350,000

)

Adjustments

 

 

 

 

 

 

Estimated interest (income) expense, net

 

 

(217

)

 

 

(217

)

Estimated other (income) expense, net

 

 

(286

)

 

 

(286

)

Estimated depreciation and amortization

 

 

20,605

 

 

 

20,605

 

Estimated amortization of acquired intangible assets

 

 

17,393

 

 

 

17,393

 

Estimated stock-based compensation expense

 

 

117,505

 

 

 

117,505

 

Non-GAAP adjusted EBITDA outlook

 

$

(215,000

)

 

$

(195,000

)