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23andMe Holding Co. (ME-10.58%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing shows total revenue increased by 35% to $60.3 million for the three months ended December 31, 2024, compared to the same period in 2023. This increase was primarily due to a significant rise in research services revenue following a non-recurring revenue recognition related to a collaboration agreement amendment with GlaxoSmithKline (GSK).
Cost of revenue decreased by 18% to $20.4 million, driven by lower costs associated with consumer services, including reductions in lab processing and kit costs.
Operating expenses decreased by 73% to $75.7 million due to a substantial reduction in goodwill impairment charges and a decrease in sales and marketing expenses.
Net loss from continuing operations was $34.3 million, an improvement from the $259.7 million loss in the same quarter of the previous year, largely due to the absence of goodwill impairment charges.
The company reported a net loss from discontinued operations of $18.8 million, primarily due to restructuring and other charges related to the closure of its Therapeutics operating segment.
As of December 31, 2024, 23andMe had cash and cash equivalents of $79.4 million. The company plans to raise additional capital and implement cost-cutting measures to address its liquidity needs.
The filing also disclosed a material weakness in internal controls over financial reporting due to a lack of oversight by an independent Audit Committee, which the company is working to remediate.
23andMe continues to face legal proceedings related to a cyber incident disclosed in October 2023, with ongoing settlement discussions and a preliminary settlement agreement for U.S. customers.
The company has implemented a reverse stock split to regain compliance with Nasdaq's minimum bid price requirement and has appointed new independent directors to address corporate governance deficiencies.
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 February 6, 2025. To report an error, please email earnings@qz.com.