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The stock was trading at about 56 cents on Thursday.
In November, 23andMe received a letter of deficiency from the Nasdaq listing qualification department giving it 180 days to return its stock price above $1, according to a filing with the U.S. Securities and Exchange Commission. If 23andMe fails to comply, it will be delisted from the exchange.
During 23andMe’s quarterly conference call with investors, co-founder and CEO Anne Wojcicki said the company is expanding its consumer and therapeutics businesses to help grow its investor base. He said he is considering splitting the company.
“We have not made a final decision on what we will do, but [are] “It’s definitely an opportunity and something that we’re exploring that could potentially make therapeutics independent of the consumer,” she said.
Founded in 2006, 23andMe exploded in popularity thanks to its at-home DNA testing kits that provide consumers with insight into their ancestry and genetic profiles. The five-time CNBC Disruptor 50 company went public in 2021 through a merger with a special acquisition vehicle, a deal that values 23andMe at about $3.5 billion..
Wojcicki, the ex-spouse of Google founder Sergey Brin, briefly reached billionaire status after her IPO and made it to Forbes magazine’s list of “Power Women” and “America’s Self-made Women.” Listed names.
But 23andMe has struggled to generate consistent recurring revenue because consumers only need to take a DNA test once to receive their results. The company has launched additional therapeutics and research businesses, but its stock price has fallen more than 95% from its peak.
23andMe said it expects full-year 2024 sales to be between $215 million and $220 million, compared with the $240 million to $250 million range the company showed in the previous quarter. Revised downward from.
23andMe is also grappling with mounting legal challenges, facing more than 30 class-action lawsuits following data breaches it disclosed late last year. A spokesperson confirmed to TechCrunch that the hackers accessed sensitive information such as names, ancestry reports, and years of birth for up to 6.9 million individuals.
CFO Joe Celsage said the company has incurred $2.7 million in costs to date related to the data breach.
“While we now require two-factor authentication for all of our customers, we have realized that our business is truly built on customer trust,” Sellsavage said on the earnings call.
In a note Thursday, Citi analysts said they were cautious about 23andMe’s outlook due to the ongoing class action lawsuit and “continued headline and reputational risks.” They lowered their price target on the stock from 90 cents to 85 cents.
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