Signage at 23andMe headquarters in Sunnyvale, California, U.S., on Wednesday, Jan. 27, 2021.
David Paul Morris | Bloomberg | Getty Images
23andMe on Tuesday reported declining revenue in its most recent quarter, a day after the company said it will cut 40% of its workforce and shutter its therapeutics business as part of a business restructuring plan.
The embattled genetics company reported $44.1 million in revenue for the fiscal second quarter, down from $50 million in the same period last year. 23andMe’s net loss narrowed to $59.1 million, or $2.32 per share, from $75.27 million, or $3.17 per share, a year ago.
23andMe said Monday that it’s eliminating more than 200 jobs, discontinuing all its therapeutics programs and winding down its ongoing clinical trials “as quickly as practical.” It’s evaluating strategic options such as asset sales and licensing agreements to “maximize the value” of the therapeutic programs, the release said.
“We are taking these difficult but necessary actions as we restructure 23andMe and focus on the long-term success of our core consumer business and research partnerships,” 23andMe CEO Anne Wojcicki, said in the release Monday. “I want to thank our team for their hard work and dedication to our mission. We are fully committed to supporting the employees impacted by this transition.”
The company said Tuesday that it’s looking to potentially raise additional capital.
Shares of 23andMe closed up 2% on Tuesday. They’ve slumped about 75% this year after losing more than half their value in 2023, pushing the company’s market cap toward $100 million.
Wojcicki, who co-founded 23andMe in 2006, has been working to keep the company afloat after it faced the risk of being delisted from the Nasdaq. Shares were hovering below $1 until 23andMe announced a 1-for-20 reverse stock split in October.
In September, all seven of the company’s independent directors abruptly resigned from the board, writing in a letter that they disagreed with Wojcicki about the “strategic direction for the company.” Three new independent directors were appointed to the board in late October.
“We have fulfilled our obligations as a public company and regained compliance with the NASDAQ listing standards by reconstituting our board and executing a reverse stock split,” Wojcicki said during 23andMe’s earnings call Tuesday.
Wojcicki has repeatedly said she intends to take 23andMe private, though she didn’t address the plans Tuesday. In a September filing with the SEC, she said she would not consider third-party takeover proposals, and said the “best path forward” is for her to take the company private.
23andMe declined to comment.
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