What happened

Genetic-testing company and researcher 23andMe Holding (ME -1.64%) wasn't testing very well with investors on Wednesday. They assertively sold out of the company's shares, to the point where the shares ended the day down by nearly 13%.

That was a far steeper decline than the 0.7% slide of the S&P 500 index. The chief culprit was 23andMe's latest earnings release.

So what

This was broadcast just after market hours on Tuesday, engendering the sharply negative investor reaction the following trading session. For its first quarter of fiscal 2024, 23andMe's revenue was just under $60.9 million, down from the $64.5 million it booked in the same period the prior year. Additionally, it landed below the consensus analyst estimate of $61.6 million.

Another clear source of investor concern was 23andMe's bottom line. The specialty healthcare company booked a net loss of nearly $105 million ($0.23 per share). This was notably deeper than the almost $89 million loss in the first quarter of 2023.

Again, prognosticators following the stock were expecting better. They were modeling a per-share net loss of only $0.13.

Now what

What also likely darkened the market's mood on 23andMe was the company's admission that the full-year fiscal 2024 guidance it proffered "is based on a conservative approach, recognizing the current uncertainties in the general economy and financial markets."

With that caveat in mind, the company reaffirmed its revenue projection of $255 million to $275 million for the period, with net loss anticipated to be $325 million to $345 million. That puts 23andMe on track to deliver worse results on a year-over-year basis, as fiscal 2023 revenue was slightly under $300 million and net loss clocked in at less than $312 million.