Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Vandana Singh

23andMe's Q3 Topline Beat Estimates On Boost From Telehealth Business Acquisition

23andMe Holding Co (NASDAQ:ME) has updated its FY22 guidance following the inclusion of telehealth operations into its consumer business. 

  • The Company closed the acquisition of Lemonaid Health Inc, an on-demand platform for accessing medical care and pharmacy services online, for $400 million.
  • The Company now expects FY22 sales of $268 - $278 million (consensus of $257.66 million), up from previous guidance of $250 - $260 million. 
  • The projected range for full-year net loss has decreased from $210 - $225 million to $205 - $220 million. 
  • 23andMe forecast FY22 adjusted EBITDA loss of $148 to $163 million, compared to the prior guidance of $143 to $158 million.
  • Related: 23andMe Pivoting To Clinical Research: Could That Lead To A Turnaround For The Stock?
  • For Q3 FY22, sales increased 2.6% to $56.9 million, beating the consensus of $54.30 million.
  • Revenues increased primarily due to the addition of two months of Telehealth business revenue from the recent acquisition of Lemonaid Health and higher subscription revenue. 
  • The Company posted EPS of $(0.21), compared to $(0.46) a year ago, missing the consensus of $(0.16).
  • 23andMe ended Q3 with cash of $586 million.
  • Credit Suisse maintained an Outperform rating on 23andMe and lowered the price target to $11.
  • Price Action: ME shares closed 7.04% lower at $4.62 during the market session on the last check Friday.
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.