SUNNYVALE, Calif. - 23andMe Holding Co. (NASDAQ:ME) reported a wider-than-expected loss for its fiscal second quarter, despite beating revenue estimates, sending shares down 1.74% in after-hours trading.
The genetics and preventive health company posted a loss of $2.32 per share for the quarter ended September 30, significantly wider than analysts' expectations of a $0.16 per share loss. However, revenue came in at $44.07 million, surpassing the consensus estimate of $36.41 million.
Compared to the same quarter last year, revenue declined 12% from $50 million, primarily due to lower consumer services revenue driven by decreased personal genomics kit sales and telehealth orders. This was partially offset by growth in membership services revenue, which represented 21% of total revenue versus 9% in the prior year quarter.
"We have been focused on growing our subscription business by adding more value and driving greater engagement, and as a result we've more than doubled our membership services revenue from the prior year quarter," said Anne Wojcicki, CEO and Co-Founder of 23andMe.
The company's GAAP net loss improved by 21% to $59 million compared to a $75 million loss in the same period last year. Adjusted EBITDA loss narrowed to $33 million from $45 million a year ago.
23andMe ended the quarter with $127 million in cash and cash equivalents, down from $216 million as of March 31, 2024. The company announced it is restructuring the business to streamline operations and reduce costs, while also exploring raising additional capital.
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