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23andMe Holding (ME)
NASDAQ:ME
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23andMe Holding
(NASDAQ:ME)
37Underperform
23andMe Holding (ME) vs. S&P 500 (SPY)
Market Cap
$16.27M
Dividend YieldN/A
Average Volume (3M)6.79M
Price to Earnings (P/E)―
Beta (1Y)1.92
Revenue Growth-15.81%
EPS Growth-4.12%
CountryUS
Employees560
SectorHealthcare
Sector Strength70
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-15.72
Shares Outstanding19,721,802
10 Day Avg. Volume19,421,029
30 Day Avg. Volume6,785,564
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.48
Price to Cash Flow (P/CF)-0.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
23andMe Holding Business Overview & Revenue Model
Company Description23andMe Holding Co. operates as a consumer genetics testing company. It operates through two segments, Consumer & Research Services and Therapeutics. The Consumer & Research Services segment provides a suite of genetic reports, including information on customers' genetic ancestral origins, personal genetic health risks, and chances of passing on certain rare carrier conditions to their children, as well as reports on how genetics can impact responses to medications based on genetic testing of a saliva sample through its spit kit. The Therapeutics segment focuses on the drug development; and discovery and development of novel therapies to improve patient lives across various therapeutic areas, including oncology, respiratory, and cardiovascular diseases, as well as offers out-licensing of intellectual property associated with identified drug targets related to drug candidates under clinical development. It has a collaboration agreement with GlaxoSmithKline Intellectual Property (No.3) Limited to leverage genetic insights to validate, develop, and commercialize drugs. The company was founded in 2006 and is headquartered in South San Francisco, California.
How the Company Makes Money23andMe makes money primarily through the sale of genetic testing kits. Customers purchase these kits to learn about their ancestry, genetic health risks, and other personalized insights. The company also generates revenue by offering subscription services for ongoing access to updated genetic data and insights. Additionally, 23andMe partners with pharmaceutical companies and other research organizations, providing aggregated and anonymized genetic data for research purposes. These partnerships contribute to the company's earnings by supporting drug discovery and other scientific endeavors. Furthermore, 23andMe may engage in licensing agreements related to its proprietary technology and data.
23andMe Holding Financial Statement Overview
Summary
23andMe Holding faces significant financial challenges with declining revenues, persistent net losses, and negative cash flows. While the company maintains a moderate gross profit margin and manageable leverage, the ongoing financial losses and cash burn pose risks to its financial stability. Continued focus on cost management and revenue growth is critical to improving its financial position.Income Statement
23andMe Holding shows declining revenue with a significant decrease from $299.5M in 2023 to $208.8M TTM. The company's gross profit margin is 49.8% TTM, indicating it maintains a moderate level of profitability on sales. However, the net profit margin is deeply negative at -183.4% TTM, reflecting substantial net losses primarily driven by high operating expenses. This trend of net losses and declining revenue growth poses significant concerns.30
Negative
Balance Sheet
The balance sheet reveals a debt-to-equity ratio of 0.86 TTM, indicating a moderate level of leverage. The equity ratio is 25.3% TTM, showing a reasonable proportion of equity in the company’s asset base. However, the return on equity is negative due to ongoing net losses, which indicates poor returns for shareholders. The high level of liabilities compared to equity could pose risks if losses continue.45
Neutral
Cash Flow
23andMe Holding's cash flow situation is challenging, with negative operating cash flow of -$145.8M TTM reflecting ongoing cash burn. The free cash flow to net income ratio is negative due to substantial net losses. While there is a slight improvement in free cash flow from -$176.7M in 2023 to -$148.7M TTM, the company remains dependent on external financing to cover its cash shortfalls.35
Negative
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 208.78M | 219.64M | 299.49M | 271.89M | 243.92M | 305.46M | Gross Profit |
| 103.99M | 99.38M | 134.50M | 132.94M | 117.01M | 137.43M | EBIT |
| -227.92M | -321.36M | -324.01M | -254.15M | -185.20M | -213.75M | EBITDA |
| -341.32M | -291.87M | -291.94M | -228.00M | -164.95M | -191.51M | Net Income Common Stockholders |
| -382.87M | -666.70M | -311.66M | -217.49M | -183.36M | -289.31M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 79.35M | 217.89M | 386.85M | 553.18M | 282.49M | 209.34M | Total Assets |
| 277.42M | 395.17M | 942.60M | 1.15B | 452.10M | 404.63M | Total Debt |
| 60.54M | 76.52M | 85.30M | 86.31M | 93.72M | 90.32M | Net Debt |
| -18.81M | -139.97M | -301.55M | -466.87M | -188.77M | -119.02M | Total Liabilities |
| 214.70M | 206.65M | 228.66M | 236.41M | 1.05B | 270.43M | Stockholders Equity |
| 70.22M | 188.52M | 713.94M | 915.66M | -595.62M | 134.20M |
| Cash Flow | Free Cash Flow | ||||
| -148.73M | -173.97M | -176.69M | -180.80M | -81.63M | -259.35M | Operating Cash Flow |
| -145.85M | -164.32M | -165.39M | -166.83M | -74.25M | -185.77M | Investing Cash Flow |
| -5.12M | -9.63M | -11.30M | -108.14M | -6.54M | -72.82M | Financing Cash Flow |
| -6.54M | 3.58M | 9.78M | 546.00M | 155.34M | 8.83M |
23andMe Holding Technical Analysis
Negative
0.61
Price Trends
2.29
Negative
2.97
Negative
5.05
Negative
Market Momentum
-0.43
Positive
25.99
Positive
7.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ME, the sentiment is Negative. The current price of 0.61 is below the 20-day moving average (MA) of 1.43, below the 50-day MA of 2.29, and below the 200-day MA of 5.05, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 25.99 is Positive, neither overbought nor oversold. The STOCH value of 7.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ME.
23andMe Holding Risk Analysis
23andMe Holding disclosed 79 risk factors in its most recent earnings report. 23andMe Holding reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
23andMe Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $8.67B | 107.27 | 2.27% | ― | 0.66% | ― | |
51 Neutral | $810.82M | ― | -17.15% | ― | 12.15% | 61.33% | |
51 Neutral | $5.32B | ― | -4584.47% | ― | 31.04% | 16.91% | |
49 Neutral | $13.03B | ― | -30.11% | ― | -2.93% | -4.69% | |
49 Neutral | $6.85B | 0.81 | -52.75% | 2.49% | 20.08% | 1.28% | |
44 Neutral | $2.41B | ― | -37.73% | ― | 25.85% | 6.06% | |
37 Underperform | $16.27M | ― | -168.95% | ― | -15.81% | -4.12% |
* Healthcare Sector Average
Performance Comparison
ME
23andMe Holding
0.61
-9.93
-94.21%
ILMN
Illumina
80.00
-48.98
-37.97%
MYGN
Myriad Genetics
8.88
-12.56
-58.58%
QGEN
Qiagen
39.85
-2.63
-6.19%
GH
Guardant Health
43.14
22.89
113.04%
TWST
Twist Bioscience
40.36
5.95
17.29%
23andMe Holding Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: -82.06% | Next Earnings Date: May 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative developments. While there were significant achievements in board reconstitution, subscription service growth, and improved financial metrics, the company faced challenges with revenue decline, discontinuation of therapeutic programs, and financial liquidity concerns.Highlights
Board Reconstitution and Nasdaq Compliance
23andMe reconstituted its Board of Directors with three new Independent Directors and regained compliance with Nasdaq listing standards.
Significant Progress in Subscription Services
The company more than doubled its recurring revenue percentage from 9% in the prior year quarter to over 21% in Q2.
Launch of Total Health Membership Service
Introduced a comprehensive longevity platform combining advanced exome sequencing, lab tests, and genetics-focused clinician guidance.
New Genetic Studies and Reports
Launched studies on GLP-1 efficacy and genetic reports on emotional eating, along with improvements to ancestry composition and historical matches features.
Improved Financial Metrics
Improved GAAP net loss by 21% and adjusted EBITDA by 26% compared to the same period in the prior year.
Lowlights
Revenue Decline
Revenue for the quarter was $44 million, a decrease of approximately 12% over the same period in the prior year.
Discontinuation of Therapeutic Programs
23andMe discontinued further development of all therapeutic programs and reduced its workforce by approximately 40%.
Financial Liquidity Concerns
The company issued a going concern disclosure, indicating the need for additional liquidity to fund necessary expenditures and financial commitments.
Company Guidance
During the Q2 2025 earnings call, 23andMe provided significant guidance on their financial and strategic direction. The company reported a revenue of $44 million, representing a 12% decrease from the previous year, primarily due to declines in consumer services and research services revenue. Despite this, they achieved a 21% improvement in GAAP net loss and a 26% improvement in adjusted EBITDA compared to the prior year. The restructuring efforts, including reducing their workforce by approximately 40% and discontinuing therapeutic programs, are expected to result in annualized cost savings of at least $35 million. The company aims to focus on increasing subscription revenue, which grew to represent 21% of total revenue, and exploring collaborations in their database business. Additionally, they are working towards out-licensing their Therapeutics programs to ensure continued development outside of 23andMe. With cash and cash equivalents standing at $127 million, 23andMe is prioritizing financial stability and sustainable growth, including regaining compliance with Nasdaq listing requirements and considering raising additional capital.23andMe Holding Corporate Events
Executive/Board ChangesPrivate Placements and FinancingLegal Proceedings
23andMe Files for Bankruptcy and CEO Resigns
Negative
Mar 24, 2025
On March 23, 2025, 23andMe Holding Co. filed for Chapter 11 bankruptcy protection, seeking relief under the United States Bankruptcy Code. The company has entered into a $35 million loan agreement with JMB Capital Partners Lending, LLC to support its operations during the bankruptcy process. Additionally, Anne Wojcicki resigned as CEO, with Joseph Selsavage appointed as interim CEO. The company is also pursuing a structured sale of its assets and has settled claims related to a previous cyber incident for $37.5 million.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.