Zerbor
23andMe (NASDAQ:ME) stock fell ~14% premarket Aug. 9 after the company's Q1 net loss widened Y/Y due to higher operating expenses.
Q1 FY23 total revenue grew ~9% Y/Y to $64.51M. The company said the increase was mainly due to inclusion of a full quarter of telehealth services and an increase in subscription revenue, which were partially offset by lower revenue in the other areas of Consumer & Research Services.
Gross profit declined ~17% Y/Y to $25.49M.
Net loss widened to $89.79M, compared to -$42.03M in Q1 FY22 primarily driven by higher operating expenses.
Operating expenses were $115M, compared to $72M in the prior year period. The company noted that the increase was mainly driven by increased labor costs and addition of sales and marketing expenses from the previously acquired telehealth business, partially offset by lower R&D expenses due to decreased spending on the GSK6097608 program.
Total Adjusted EBITDA was -$49.72M, compared to -$27.28M in Q1 FY22.
23andMe ended Q1 FY23 with cash of $479M, compared to $553M as of March 31, 2022.
Outlook: FY23
The company reconfirmed its full year revenue outlook range of $260M to $280M; Consensus Revenue Estimate is $274.89M.
Net loss is expected in the range of $350M to $370M. Adjusted EBITDA deficit is projected to be in the range of -$195M to -$215M.
ME -14.32% to $3.41 premarket Aug. 9