What happened
The stock market was experiencing a frothy Friday on the last trading day of the week, but 23andMe Holding (ME 7.23%) was a bit of a wallflower at the party. As of 1:30 p.m. ET , the genetic testing and research specialist's shares were up only incrementally, at a rate well behind the S&P 500 index's 1.7% gain. Investors were holding back after the company reported its latest set of quarterly results.
So what
For 23andMe's fourth quarter of fiscal 2022, the company recorded just under $101 million in revenue, which was 14% higher than the same period of the previous year. On the bottom line, its net loss deepened but not by much, landing at nearly $70 million ($0.16 per share) against the year-ago shortfall of $67 million.
Image source: Getty Images.
Both headline figures were a bit worse than the average analyst estimates. Collectively, prognosticators following the stock were modeling nearly $103 million on the top line, and a narrower per-share net loss of $0.13.
23andMe attributed its top-line growth mainly to the incorporation of a recent acquisition, healthcare services company Lemonaid Health. It also benefited from a boost in its take from research services.
Now what
23andMe quoted CFO Steve Schoch as saying the company will "take a more cautious overall approach to our use of cash, giving priority to the roll out of our next-generation genomic health service, and to advancing our therapeutics efforts. We believe that appropriate investments in these areas will provide our best opportunities for future growth."
That's going to come at a cost, however. 23andMe proffered guidance for full-year 2023 indicating that it should earn revenue of $260 million to $280 million, and book a rather steep net loss of $350 million to $370 million. By comparison, the fiscal 2022 results were a respective $272 million and $217 million.
