ME Earnings Prediction
The chart below shows how ME performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ME sees a +0.20% change in stock price 10 days leading up to the earnings, and a -20.63% change 10 days following the report. On the earnings day itself, the stock moves by -2.68%. This data can give you a slight idea of what to expect for the next quarter's release.
ME Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
44.07M
-11.86%
9.05%
Gross Margin
50.84%
16.98%
0.16%
Operating Margin
-130.30%
-12.26%
-35.27%
Net Margin
-134.11%
-10.91%
-21.90%
EPS
-46.40
-28900.00%
33042.86%
No Data Available
ME Earnings Analysis
23andMe Holding Co. Class A Common Stock Corporation (ME.O) Earnings Conference Call
Positive
Financial Performance Improvement: 1. Improved Financial Performance: 23andMe improved its GAAP net loss by 21% and adjusted EBITDA by 26% compared to the same period in the prior year.
Gross Profit Increase: 2. Increased Gross Profit: The company's gross profit for Q2 was $22 million, representing a 3% increase over the same period last year, driven by growth in high-margin membership services.
Recurring Revenue Increase: 3. Higher Recurring Revenue: More than 21% of total revenue in Q2 was recurring, more than doubling from 9% in the prior year quarter, indicating a successful shift towards higher-margin revenue streams.
Cost Savings Strategy: 4. Cost Reduction Initiatives: The company expects annualized cost savings of at least $35 million from its restructuring efforts, which will significantly improve its financial condition.
NASDAQ Compliance Achieved: 5. Regained NASDAQ Compliance: 23andMe successfully regained compliance with NASDAQ listing standards, fulfilling requirements for a majority independent Board and minimum closing bid price.
Negative
Quarterly Revenue Decline: Revenue for the quarter was $44 million, a decrease of approximately 12% over the same period in the prior year.
Quarterly Net Loss Comparison: Net loss for the quarter was $59 million compared to a net loss of $75 million for the same period in the prior year.
Cash Position Decline: We ended the quarter with cash and cash equivalents of $127 million compared to $216 million as of March 31, 2024.
Business Restructuring Costs: The business restructuring we announced yesterday is expected to incur approximately $12 million in costs and expenses primarily related to onetime severance, transition and termination-related costs.
Liquidity Needs and Concerns: The company will need additional liquidity to fund its necessary expenditures and financial commitments for the 12 months after the date our 10-Q was filed, resulting in the going concern disclosure.
ME FAQs
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ME Earning Call Sentiment
23andMe Holding Co. (ME) Q2 2025 Earnings Call Transcript
1.0x
00:00
00:00
ME.O
-4.18%Positive
The earnings call indicates several concerns: a 12% revenue decrease, a significant cash position decline, and a going concern disclosure. Although cost-cutting measures are in place, the company is discontinuing therapeutic programs and reducing its workforce by 40%, which suggests financial strain. The Q&A section reveals a focus on restructuring and compliance, but lacks specific recovery timelines. The absence of a shareholder return plan and competitive pressures further contribute to a negative outlook, likely resulting in a stock price decrease of -2% to -8% over the next two weeks.