23andMe shares slide more than 15% as lower services revenue hits Q3 results

23andMe’s third-quarter revenue was $44.7 million, down from $66.9 million in the prior year’s quarter. The company said this was due to lower research revenue after the conclusion of its exclusive GSK PLC AR
GSK,
-0.58%
collaboration in July 2023 and lower consumer services revenue driven mainly by lower PGS (Preimplantation Genetic Screening) kit sales volume and telehealth orders. These decreases were partially offset by higher revenue from non-recurring payments from other research partners as well as growth in 23andMe’s membership services revenue, the company said. Analysts surveyed by FactSet were looking for sales of $54 million.

Related: 23andMe to offer clients personalized action plans based on genetic and other health data

Revenue from consumer services, which includes PGS, telehealth and membership services, accounted for approximately 96% of 23andMe’s total third-quarter revenue, the company said. Research services revenue accounted for approximately 4% of 23andMe’s total revenue.

The company reported a net loss of $278 million, or a loss of 58 cents a share, compared to a net loss of $92 million, or a loss of 20 cents a share, in the year-ago quarter. Analysts surveyed by FactSet were expecting a loss of 14 cents a share.

23andMe also lowered its full-year revenue guidance to between $215 million and $220 million, from its prior forecast of $240 million to $250 million.

Related: 23andMe confirms hackers accessed ancestry data of 6.9 million people

Shares of 23andMe have fallen 77.6% in the last 52 weeks, compared with the S&P 500 index’s
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PX
gain of 22.3%.