23andI reported a net loss of $217 million for fiscal 2022 ended March 31, compared to $184 million a year earlier.
The consumer genetics company also reported a loss of $70 million in the fourth quarter, compared to $67 million in the fourth quarter of 2021. 23andMe attributed the increase in net loss in the quarter to increased operating expenses driven by sales and marketing, including the addition of expenses for it is newly acquired telemedicine segment.
Meanwhile, the company noted these operating expenses and therapeutic-related research and development expenses for the increase in net loss for the fiscal year.
Total revenue for the fourth quarter was $101 million and $272 million for the yearIncreases of 14% and 11%, respectively, over the prior-year periods.
23andMe forecasts full year 2023 revenue of between $260 million and $280 million and full year GAAP net loss of between $350 million and $370 million.
“Fiscal year 2022 was a transitional year for 23andMe. It was highlighted by our IPO in June 2021, followed by November’s strategically important acquisition of Lemonaid Health, which now underpins our planned launch of a genomic health service,” CFO Steve Schoch said during an earnings call.
THE BIGGER TREND
In October, 23andMe announced it signed a definitive agreement to acquire telemedicine and online prescribing platform Lemonaid Health. The deal was finalized in November.
The company plans to use the Lemonaid offering as part of its genomic health service, where customers can access their genetic information for preventative and personalized care.
“Our efforts on the consumer side will now focus on bridging the gap between health risk awareness and health risk and disease management with our new genomic health services,” CEO and co-founder Anne Wojcicki said during the call.
“In the next few years, we plan to focus on the consumer direct payment market. Once we have established ourselves in the DTC market, we can see if we can expand into other channels. This effort began with our acquisition and integration of Lemonaid Health and their telemedicine and digital pharmacy services.”
23andMe has also worked to use its genetic data for research and development of new drugs. Earlier this year pharmaceutical giant GlaxoSmithKline has extended its drug discovery partnership through July 2023.
ON THE RECORD
“In the coming fiscal year, we plan to take an overall more cautious approach to cash usage, prioritizing the launch of our next-generation genomic health service and advancing our therapeutic efforts. We believe investing in these areas appropriately will provide our best opportunities for future growth,” Schoch said in a statement.