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23andMe Reports FY2022 Fourth Quarter and Full Year Financial Results

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23andMe Holding Co.
23andMe Holding Co.

Achieved FY2022 financial guidance
Fourth quarter and full year revenues of $101 million and $272 million representing 14% and 11% increases over prior year, respectively
New genomic health services expected in FY2023
Webcast today, May 26, 2022, at 4:30 p.m. Eastern Time

SOUTH SAN FRANCISCO, Calif., May 26, 2022 (GLOBE NEWSWIRE) -- 23andMe Holding Co. (Nasdaq: ME) (“23andMe”), a leading consumer genetics and research company with a mission to help people access, understand, and benefit from the human genome, today reported its financial results for the fourth quarter (“Q4”) and full year of fiscal year 2022 (“FY2022”), which ended March 31, 2022. 23andMe is the only company with multiple FDA authorizations for over-the-counter genetic health risk reports, and in particular the only company that is FDA 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.

“We made incredible progress this last year with several major milestones, including our entry into the public markets, raising $560 million, and our acquisition of Lemonaid Health. In addition, we increased the number of health reports in our Personal Genome Service to over 60, grew our customer base to 12.8 million genotyped customers and expanded our therapeutics pipeline to more than 50 active programs with two now in Phase 1 clinical trials. All of these accomplishments further our mission to help people access, understand and benefit from the human genome,” said Anne Wojcicki, CEO and Co-Founder of 23andMe. “Genomic information is enabling us to revolutionize the diagnosis, prevention and treatment of human disease. The 23andMe Consumer business is focused on building a genomic health service that focuses on prevention and wellness. Our clinical efforts started with the acquisition and integration of Lemonaid Health’s telehealth and digital pharmacy services and will continue as we roll out a number of new services this fiscal year. Just this month we started beta testing a genetic report consultation service with clinicians who are trained in genetic health concepts. This service can help customers better understand the potential impact of their genetic risk profile and discuss the next steps. This is just the start of our efforts in this area, and I’m excited about the broader suite of services we plan to introduce later this year.”

FY2022 Financial Results Summary

  • Achieved financial guidance

    • $272 million revenue [guidance: $268 to $278 million]

    • $217 million net loss [guidance: $(205) to $(220) million]

    • $151 million adjusted EBITDA loss [guidance: $(148) to $(163) million]

  • Solid balance sheet with cash of $553 million at year end.

Recent Highlights

  • Began offering clinician-led genetic consultations to 23andMe customers focused on risk of breast cancer, colon cancer or early onset of heart disease based on the company’s BRCA1/BRCA2, MUTYH-associated polyposis and familial hypercholesterolemia reports.

  • Enrolled patients in a Phase 1 study of the company’s first wholly owned immuno-oncology antibody, 23ME-00610 (23ME’610).

  • Presented data at the American Association for Cancer Research (AACR) 2022 Annual Meeting related to the company’s wholly-owned 23ME’610 immuno-oncology program.

  • Increased customer database to 12.8 million genotyped customers.

  • Expanded 23andMe+ availability to customers in the UK and Canada. 23andMe+ is a membership service that offers insights and features to give members even more actionable information to live healthier lives.

  • Launched four new reports for customers subscribed to 23andMe+ bringing total reports available to over 60. These new reports 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 fourth quarter were:

    • Skin cancer reports (2)

    • Diverticulitis report

    • Irritable bowel syndrome report

  • Published three papers describing findings on how genetics influences depression and bipolar disorder Translational Psychiatry (2022) 12:121, educational attainment Nature Genetics (2022) 54, 437–449 and loss of smell and taste due to COVID-19 Nature Genetics (2022) 54, 121-124.

  • Made Comparably’s 2022 list of Best Places to Work in the San Francisco Bay Area.

“Our 2022 fiscal year was a pivotal year for 23andMe with our public listing in June 2021 followed by the strategically important acquisition of Lemonaid Health in November,” said Steve Schoch, Chief Financial Officer of 23andMe. “During that same time, our Personal Genome Service business increased by 1.5 million genotyped customers, or 13%, significantly extending our competitive data advantage. Our investments in our therapeutics portfolio have increased our pipeline to more than 50 active programs. Our Research Services business will be sustained by GSK’s election to remain our exclusive data partner for a fifth year for an opt-in cash payment of $50 million, double the average annual cash payment of the first four years. This extension is a clear sign of the value GSK sees in our data advantage.”

“This coming fiscal year we plan to take a more cautious overall approach to our use of cash, giving priority to the roll out of our next-generation genomic health service, and to advancing our therapeutics efforts. We believe that appropriate investments in these areas will provide our best opportunities for future growth,” added Schoch.

FY2022 Fourth Quarter and Full Year Financial Results
Total revenue for the three and twelve months ended March 31, 2022, was $101 million and $272 million, respectively, representing increases of 14% and 11%, respectively, for the same periods in the prior year. Fourth quarter revenue growth was primarily due to the addition of three months of telehealth business revenue from our Lemonaid Health acquisition and higher Research Services revenue. These increases were partially offset by lower Personal Genome Service (“PGS”) revenue. Full year revenue growth was primarily driven by five months of telehealth business revenue and higher subscription revenue.

Consumer services revenue represented approximately 83% and 82% of total revenue, respectively, for the three and twelve months ended March 31, 2022, and Research Services revenue, substantially all derived from the collaboration with GSK, accounted for approximately 17% and 18% of total revenue, respectively, for those same periods.

Operating expenses for the three and twelve months ended March 31, 2022 were $117 million and $387 million, respectively, compared to $112 million and $302 million for the same periods in the prior year. The increase in fourth quarter operating expenses was primarily attributable to increased sales and marketing expenses associated with the addition of telehealth marketing activities. The increase in full year operating expenses was primarily due to increased sales and marketing spending around holiday and promotional periods, the addition of telehealth sales and marketing expenses and therapeutics-related research and development expenses as programs advance in development.

Net loss for the three and twelve months ended March 31, 2022 was $70 million and $217 million, respectively, compared to net losses of $67 million and $184 million for the same periods in the prior year. The increase in net loss for the fourth quarter was primarily driven by higher operating expenses (as noted above). The increase in net loss in the full year was primarily driven by higher operating expenses (as noted above) offset by changes in fair value of warrant liabilities of $33 million and an income tax benefit of $3 million. In December 2021, the company redeemed all outstanding warrants.

Total Adjusted EBITDA (as defined below) for the three and twelve months ended March 31, 2022 was $(30) million and $(151) million, respectively, compared to $(11) million and $(77) million for the same periods in the prior year. The decrease in total Adjusted EBITDA was driven primarily by the increase in operating expenses listed above. Adjusted EBITDA for the three and twelve months ended March 31, 2022 for the Consumer & Research Services segment was $3 million and $(30) million, respectively, compared to $18 million and $13 million for the same periods in the prior year. The decrease in this segment was driven primarily by the increase in operating expenses listed above, excluding therapeutics-related research and development expenses and one-time transaction costs.

Balance Sheet
23andMe ended Q4 FY2022 with cash of $553 million, compared to $282 million as of March 31, 2021. The increase was primarily attributable to the $560 million in gross proceeds from the completion of the business combination with the Virgin Group Acquisition Corp during the first quarter of FY2022.

FY2023 Financial Guidance
The company’s full year fiscal 2023 guidance is based on a conservative approach, recognizing the current uncertainties in the general economy and in financial markets. Within the existing consumer businesses of PGS and telehealth, the company is prioritizing the minimization of cash burn over top-line growth. For those business segments expected to drive future growth, which include the company’s new genomic health services and Therapeutics, the company plans to focus on the most strategically and financially valuable options and invest appropriately. Because the new genomic health service is not anticipated to fully launch until later in the fiscal year, the company does not foresee meaningful revenue contribution from these new consumer products and services within FY2023. As a reminder, our guidance includes the full-year impact of the consolidation of Lemonaid Health’s business into the company’s overall consumer business as well as the current and anticipated effects of general inflation on certain of our costs. Revenue guidance for FY2023, 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. Full year adjusted EBITDA loss is projected to be in the range of $195 to $215 million for fiscal year 2023.

Conference Call Webcast Information
23andMe will host a conference call at 4:30 p.m. Eastern Time on Thursday, May 26th, 2022 to discuss the financial results for the full year and Q4 FY2022 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 to other risks and uncertainties that are described in 23andMe’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2021 filed with the Securities and Exchange Commission (“SEC”) on February 11, 2022 and in the reports subsequently filed by 23andMe with the SEC. 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 before net interest expense (income), net other expense (income), changes in fair value of warrant liabilities, income tax (provision) 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, litigation settlements not related to normal and continued business activities, 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 amounts)
(Unaudited)

 

 

Three Months Ended
March 31,

 

 

Year Ended
March 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue (related party amounts of $16,783 and $9,696 for the three months ended March 31, 2022 and 2021, respectively, and $46,064 and $39,917 for the years ended March 31, 2022 and 2021, respectively)

 

$

100,559

 

 

$

88,582

 

 

$

271,893

 

 

$

243,920

 

Cost of revenue (related party amounts of $90 and $(808) for the three months ended March 31, 2022 and 2021, respectively, and $299 and $(1,400) for the years ended March 31, 2022 and 2021, respectively)

 

 

53,502

 

 

 

44,053

 

 

 

138,948

 

 

 

126,914

 

Gross profit

 

 

47,057

 

 

 

44,529

 

 

 

132,945

 

 

 

117,006

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development (related party amounts of $5,769 and $7,997 for the three months ended March 31, 2022 and 2021, respectively, and $23,954 and $18,684 for the years ended March 31, 2022 and 2021, respectively)

 

 

50,324

 

 

 

45,596

 

 

 

189,377

 

 

 

159,856

 

Sales and marketing

 

 

29,351

 

 

 

11,955

 

 

 

100,338

 

 

 

43,197

 

General and administrative

 

 

36,836

 

 

 

54,055

 

 

 

97,383

 

 

 

99,149

 

Total operating expenses

 

 

116,511

 

 

 

111,606

 

 

 

387,098

 

 

 

302,202

 

Loss from operations

 

 

(69,454

)

 

 

(67,077

)

 

 

(254,153

)

 

 

(185,196

)

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest (expense) income, net

 

64

 

 

60

 

 

277

 

 

255

 

Change in fair value of warrant liabilities

 

 

 

 

 

 

32,989

 

 

 

Other (expense) income, net

 

 

(122

)

 

 

4

 

 

 

(83

)

 

 

1,322

 

Loss before income taxes

 

 

(69,512

)

 

 

(67,013

)

 

 

(220,970

)

 

 

(183,619

)

Benefit from (provision for) income taxes

 

 

(32

)

 

 

 

 

3,480

 

 

 

Net loss

 

$

(69,544

)

 

$

(67,013

)

 

$

(217,490

)

 

$

(183,619

)

Other comprehensive income

 

215

 

 

 

 

179

 

 

 

Total comprehensive loss

 

$

(69,329

)

 

$

(67,013

)

 

$

(217,311

)

 

$

(183,619

)

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

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.16

)

 

$

(0.59

)

 

$

(0.60

)

 

$

(1.84

)

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

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

444,139,193

 

 

 

113,336,281

 

 

 

361,528,119

 

 

 

99,660,786

 


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

 

 

March 31,

 

 

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

553,182

 

 

$

282,489

 

Restricted cash

 

 

1,599

 

 

 

1,399

 

Accounts receivable, net

 

 

3,380

 

 

 

2,481

 

Inventories

 

 

10,789

 

 

 

6,239

 

Deferred cost of revenue

 

 

7,700

 

 

 

5,482

 

Prepaid expenses and other current assets

 

 

25,139

 

 

 

15,485

 

Total current assets

 

 

601,789

 

 

 

313,575

 

Property and equipment, net

 

 

49,851

 

 

 

60,884

 

Operating lease right-of-use assets

 

 

55,577

 

 

 

63,122

 

Restricted cash, noncurrent

 

 

6,974

 

 

 

6,974

 

Internal-use software, net

 

 

9,635

 

 

 

6,889

 

Intangible assets, net

 

 

73,905

 

 

 

 

Goodwill

 

 

351,744

 

 

 

 

Other assets

 

 

2,593

 

 

 

654

 

Total assets

 

$

1,152,068

 

 

$

452,098

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable (related party amounts of $12,567 and $4,422 as of March 31, 2022 and 2021, respectively)

 

$

37,930

 

 

$

12,271

 

Accrued expenses and other current liabilities (related party amounts of $5,772 and $7,065 as of March 31, 2022 and 2021, respectively)

 

 

44,588

 

 

 

31,953

 

Deferred revenue (related party amounts of $9,181 and $30,140 as of March 31, 2022 and 2021, respectively)

 

 

62,939

 

 

 

71,255

 

Operating lease liabilities

 

 

7,784

 

 

 

6,140

 

Total current liabilities

 

 

153,241

 

 

 

121,619

 

Operating lease liabilities, noncurrent

 

 

78,524

 

 

 

87,582

 

Other liabilities

 

 

4,647

 

 

 

1,165

 

Total liabilities

 

$

236,412

 

 

$

210,366

 

Commitments and contingencies

 

 

 

 

 

 

Redeemable convertible preferred stock

 

 

 

 

 

 

Redeemable convertible preferred stock, $0.0001 par value per share, 10,000,000 shares authorized as of March 31, 2022, and $0.00001 par value per share, 209,512,070 shares authorized as of March 31, 2021; nil and 209,181,855 shares issued and outstanding as of March 31, 2022 and 2021, respectively; aggregate liquidation preference of nil and $874,107 as of March 31, 2022 and 2021, respectively

 

 

 

 

 

837,351

 

Stockholders' equity (deficit)

 

 

 

 

 

 

Common Stock - Class A shares, par value $0.0001, 1,140,000,000 and 390,921,975 shares authorized and 228,174,718 and 20,713,076 shares issued and outstanding as of March 31, 2022 and 2021, respectively; Class B shares, par value $0.0001, 350,000,000 and 380,944,977 shares authorized and 220,637,603 and 103,816,708 shares issued and outstanding as of March 31, 2022 and 2021, respectively; Class C shares, par value $0.0001, nil and 72,276,062 shares authorized and no shares issued and outstanding as of March 31, 2022 and 2021, respectively

 

 

45

 

 

 

12

 

Additional paid-in capital

 

 

2,110,160

 

 

 

381,607

 

Accumulated other comprehensive income

 

 

179

 

 

 

 

Accumulated deficit

 

 

(1,194,728

)

 

 

(977,238

)

Total stockholders’ equity (deficit)

 

 

915,656

 

 

 

(595,619

)

Total liabilities and stockholders’ equity (deficit)

 

$

1,152,068

 

 

$

452,098

 


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

 

 

Year Ended March 31,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(217,490

)

 

$

(183,619

)

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

 

 

 

 

 

 

Depreciation and amortization

 

 

23,699

 

 

 

18,078

 

Amortization and impairment of internal-use software

 

 

2,449

 

 

 

2,168

 

Stock-based compensation expense

 

 

57,933

 

 

 

88,425

 

Changes in fair value of warrant liabilities

 

 

(32,989

)

 

 

 

Loss on disposal of property and equipment

 

 

100

 

 

 

57

 

Gain on lease termination

 

 

(15

)

 

 

(876

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(899

)

 

 

3,912

 

Inventories

 

 

(4,262

)

 

 

7,884

 

Deferred cost of revenue

 

 

(2,219

)

 

 

1,163

 

Prepaid expenses and other current assets

 

 

(10,077

)

 

 

2,126

 

Operating lease right-of-use assets

 

 

7,078

 

 

 

10,288

 

Other assets

 

 

(1,820

)

 

 

573

 

Accounts payable (related party amounts of $8,145 and $191 for the years ended March 31, 2022 and 2021, respectively)

 

 

22,856

 

 

 

137

 

Accrued expenses and other current liabilities (related party amounts of $ (1,293) and $3,517 for the years ended March 31, 2022 and 2021, respectively)

 

 

8,316

 

 

 

82

 

Deferred revenue (related party amounts of $(20,959) and $(14,917) for the years ended March 31, 2022 and 2021, respectively)

 

 

(8,799

)

 

 

(16,210

)

Operating lease liabilities

 

 

(7,054

)

 

 

(8,528

)

Other liabilities

 

 

(3,635

)

 

 

88

 

Net cash used in operating activities

 

 

(166,828

)

 

 

(74,252

)

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(3,968

)

 

 

(4,054

)

Purchases of intangible assets (patents)

 

 

(5,500

)

 

 

 

Proceeds from sale of property and equipment

 

 

1

 

 

 

838

 

Capitalized internal-use software costs

 

 

(4,505

)

 

 

(3,320

)

Cash paid for acquisitions, net of cash acquired

 

 

(94,165

)

 

 

 

Net cash used in investing activities

 

 

(108,137

)

 

 

(6,536

)

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from issuance of redeemable convertible preferred stock

 

 

 

 

 

82,500

 

Payments for issuance costs of redeemable convertible preferred stock

 

 

 

 

 

(232

)

Proceeds from exercise of stock options (related party amounts of nil and $67,359 for the years ended March 31, 2022 and 2021, respectively)

 

 

16,998

 

 

 

76,151

 

Payments of deferred offering costs

 

 

(30,642

)

 

 

(3,084

)

Proceeds from issuance of common stock upon Merger

 

 

309,720

 

 

 

 

Proceeds from PIPE (related party amounts of $25,000 and nil for the years ended March 31, 2022 and 2021, respectively)

 

 

250,000

 

 

 

 

Proceeds from exercise of merger warrants

 

 

44

 

 

 

 

Payment for warrant redemptions

 

 

(116

)

 

 

 

Net cash provided by financing activities

 

 

546,004

 

 

 

155,335

 

Effect of exchange rates on cash

 

 

(146

)

 

 

 

Net increase in cash and restricted cash

 

 

270,893

 

 

 

74,547

 

Cash and restricted cash—beginning of period

 

 

290,862

 

 

 

216,315

 

Cash and restricted cash—end of period

 

 

561,755

 

 

 

290,862

 

Supplemental disclosures of non-cash investing and financing activities:

 

 

 

 

 

 

Purchases of property and equipment during the period included in accounts payable and accrued expenses

 

 

722

 

 

 

535

 

Stock-based compensation capitalized for internal-use software costs

 

 

1,166

 

 

 

637

 

Reclassification of transaction costs

 

 

3,971

 

 

 

 

Vesting of related party early exercised stock options

 

 

 

 

 

91,046

 

Assumption of merger warrants liability

 

 

75,415

 

 

 

 

Deferred offering costs during the period included in accounts payable and accrued expenses

 

 

 

 

 

887

 

Conversion of redeemable convertible preferred stock to common stock

 

 

837,351

 

 

 

 

Redemption/exercise of Class A common stock warrants

 

 

42,354

 

 

 

 

Stock consideration in acquisition of businesses, including fair value of common stock issued and fair value of stock-based awards that were vested

 

 

322,842

 

 

 

 

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

 

 

 

 

 

 

Cash

 

 

553,182

 

 

 

282,489

 

Restricted cash, current

 

 

1,599

 

 

 

1,399

 

Restricted cash, noncurrent

 

 

6,974

 

 

 

6,974

 

Total cash and restricted cash

 

$

561,755

 

 

$

290,862

 


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
March 31,

 

 

Year Ended
March 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Segment Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Consumer & Research Services

 

$

100,559

 

 

$

88,576

 

 

$

271,893

 

 

$

243,866

 

Therapeutics

 

 

 

 

 

6

 

 

 

 

 

 

54

 

Total revenue

 

$

100,559

 

 

$

88,582

 

 

$

271,893

 

 

$

243,920

 

Segment Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Consumer & Research Services Adjusted EBITDA

 

$

3,120

 

 

$

17,721

 

 

$

(30,112

)

 

$

12,796

 

Therapeutics Adjusted EBITDA

 

 

(19,898

)

 

 

(19,848

)

 

 

(76,944

)

 

 

(58,734

)

Unallocated Corporate (1)

 

 

(12,992

)

 

 

(9,033

)

 

 

(43,684

)

 

 

(30,587

)

Total Adjusted EBITDA

 

$

(29,770

)

 

$

(11,160

)

 

$

(150,740

)

 

$

(76,525

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of net loss to Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(69,544

)

 

$

(67,013

)

 

$

(217,490

)

 

$

(183,619

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Interest (income) expense, net

 

 

(64

)

 

 

(60

)

 

 

(277

)

 

 

(255

)

Other (income) expense, net

 

 

122

 

 

 

(4

)

 

 

83

 

 

 

(1,322

)

Change in fair value of warrant liabilities

 

 

 

 

 

 

 

 

(32,989

)

 

 

 

Income tax provision (benefit)

 

 

32

 

 

 

 

 

 

(3,480

)

 

 

 

Depreciation and amortization

 

 

4,711

 

 

 

4,714

 

 

 

18,899

 

 

 

20,246

 

Amortization of acquired intangible assets

 

 

4,371

 

 

 

 

 

 

7,269

 

 

 

 

Stock-based compensation expense

 

 

20,460

 

 

 

51,203

 

 

 

57,933

 

 

 

88,425

 

Acquisition-related costs (2)

 

 

192

 

 

 

 

 

 

9,362

 

 

 

 

Litigation settlement (3)

 

 

9,950

 

 

 

 

 

 

9,950

 

 

 

 

Total Adjusted EBITDA

 

$

(29,770

)

 

$

(11,160

)

 

$

(150,740

)

 

$

(76,525

)

  1. Certain expenses such as Finance, Legal, Regulatory and Supplier Quality, 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 fiscal years ended March 31, 2022, acquisition-related costs primarily consisted of advisory, legal and consulting fees related to the Lemonaid Acquisition.

  3. For the fiscal year ended March 31, 2022, litigation settlement is litigation cost net of insurance recoveries, which is not expected to occur on a recurring basis and not part of the company's normal and continued business activity.



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