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23andMe Holding Co. (ME-1.34%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing details a decrease in total revenue to $44,071,000 from $49,999,000 in the same quarter the previous year, representing a 12% decline. This decrease was primarily driven by lower sales in consumer services, including PGS kits and telehealth services.
Cost of revenue decreased to $21,664,000 from $28,270,000, reflecting a 23% reduction. This was attributed to lower costs associated with PGS kits and telehealth services.
The company reported a gross profit of $22,407,000, an increase from $21,729,000 in the previous year, with the gross margin improving to 51% from 43%.
Research and development expenses decreased by 25% to $41,041,000, primarily due to reductions in force and decreased collaboration expenses.
Sales and marketing expenses fell by 8% to $16,874,000, driven by a reduction in advertising and brand-related expenses.
General and administrative expenses decreased by 7% to $23,418,000, mainly due to reduced personnel-related expenses.
Restructuring and other charges were $2,242,000, reflecting costs associated with a reduction in force.
The company recorded a net loss of $59,103,000, an improvement from the net loss of $75,270,000 in the previous year.
Adjusted EBITDA for the Consumer and Research Services segment was $(8,633,000), down from $(6,673,000) in the previous year, while the Therapeutics segment improved to $(11,975,000) from $(26,224,000).
The filing also discusses the company's liquidity position, noting cash and cash equivalents of $126,601,000 and highlighting the need for additional liquidity to fund operations over the next 12 months.
Subsequent events include a reverse stock split effective October 16, 2024, and a reduction in force approved on November 8, 2024, aimed at reducing operating costs.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the 23andMe Holding Co. quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.