23andMe Holding Co. (ME) 2024 Q1 法說會逐字稿

Hello, and welcome to 23andME Fiscal Year 2024 First Quarter Financial Results Conference Call. As a reminder, this call is being recorded. (Operator Instructions)

您好，歡迎參加 23andME 2024 財年第一季度財務業績電話會議。提醒一下，此通話正在錄音。 （操作員說明）

I would now like to turn the call over to Katie Watson, Vice President of Communications at 23andMe to lead off the call. Thank you. Please go ahead.

我現在想將電話轉給 23andMe 通訊副總裁凱蒂·沃森 (Katie Watson) 主持。謝謝。請繼續。

Thank you. Before we begin, I encourage everyone to go to investors.23andme.com to find the press release we issued earlier today reporting our financial results for the first quarter. A replay of today's webcast will also be available on our website for a limited time within 24 hours after the event.

謝謝。在我們開始之前，我鼓勵大家訪問 Investors.23andme.com 查找我們今天早些時候發布的新聞稿，報告我們第一季度的財務業績。活動結束後 24 小時內，我們的網站也將限時提供今天網絡廣播的重播。

Please note that certain statements made during this call regarding matters that are not historical facts, including, but not limited to, management's outlook or predictions for future periods are forward-looking statements. These statements are based solely on information that is now available to us. We encourage you to review the section entitled Forward-Looking Statements in our press release, which applies to this call. Also, please refer to our SEC filings, which can be found on our website and the SEC's website for a discussion of numerous factors that may impact our future performance. We also discuss certain non-GAAP measures. Important information on our use of these measures and reconciliations to U.S. GAAP may be found in our earnings release.

請注意，本次電話會議期間做出的有關非歷史事實的某些陳述，包括但不限於管理層的展望或對未來時期的預測，均為前瞻性陳述。這些陳述僅基於我們現在掌握的信息。我們鼓勵您查看我們的新聞稿中適用於本次電話會議的前瞻性陳述部分。另外，請參閱我們的 SEC 文件，這些文件可以在我們的網站和 SEC 網站上找到，以了解可能影響我們未來業績的眾多因素的討論。我們還討論了某些非公認會計原則措施。有關我們使用這些措施以及與美國公認會計原則（U.S. GAAP）的調節的重要信息可以在我們的收益報告中找到。

Joining us on our call today are Anne Wojcicki, our Chief Executive Officer and Co-Founder; and Joe Selsavage, our Interim Chief Financial and Accounting Officer; Kenneth Hillan, our Chief Therapeutics Officer, will join us for Q&A.

今天參加我們電話會議的還有我們的首席執行官兼聯合創始人 Anne Wojcicki；以及我們的臨時首席財務和會計官 Joe Selsavage；我們的首席治療官肯尼思·希蘭 (Kenneth Hillan) 將與我們一起進行問答。

I'd now like to turn the call over to Anne.

我現在想把電話轉給安妮。

Thank you, Katie. During our first fiscal quarter of 2024, we continue to make progress on advancing our therapeutics business and executing on our consumer strategy by providing additional customer value and expanding our product margins. 23andMe concluded the exclusive drug discovery phase of our GSK collaboration in July and we now look forward to opportunities to work broadly with a number of therapeutics partners to enable genetic-based drug discovery.

謝謝你，凱蒂。在 2024 年第一財季，我們通過提供額外的客戶價值和擴大產品利潤，在推進治療業務和執行消費者戰略方面繼續取得進展。 23andMe 於 7 月結束了與 GSK 合作的獨家藥物發現階段，現在我們期待有機會與許多治療合作夥伴廣泛合作，以實現基於基因的藥物發現。

The collaboration was a large success combining the unique skills, resources and scientific expertise of both companies to generate more than 50 therapeutic programs. We will continue to advance a number of ongoing programs, both collaboratively and independently. 23andMe is now focused on partnering with multiple therapeutics companies for target discovery. During the GSK partnership, we validated the enormous potential for 23andMe to aid with therapeutic discovery and we feel confident in our ability to work both independently and with a number of partners going forward.

這次合作取得了巨大成功，結合了兩家公司的獨特技能、資源和科學專業知識，產生了 50 多個治療項目。我們將繼續以合作和獨立的方式推進一些正在進行的項目。 23andMe 現在專注於與多家治療公司合作進行靶標發現。在與葛蘭素史克合作期間，我們驗證了 23andMe 在幫助治療發現方面的巨大潛力，並且我們對我們獨立工作以及與許多合作夥伴一起前進的能力充滿信心。

We are now actively pursuing new opportunities with pharmaceutical and biotech companies. Details on future collaborations will be shared as available.

我們現在正在積極尋求與製藥和生物技術公司合作的新機會。有關未來合作的詳細信息將在可用時分享。

With the end of our GSK drug discovery period, it was important for the company to reassess our overall therapeutic strategy and resourcing. Over the last 5 years, we have built a large infrastructure to support the work of the collaboration and we recognize the need to rightsize and realign the business to set us up for long-term success. Based on this, today, we significantly restructured our therapeutics organization, which included a reduction in workforce. 71 employees or nearly 50% of our therapeutics organization were impacted. To remind our investors, in June, we announced that we reduced the size of the consumer and G&A team by 9%. Overall, we have reduced head count by nearly 200 people since April 1, 2023.

隨著葛蘭素史克藥物發現期的結束，公司重新評估我們的整體治療策略和資源非常重要。在過去的 5 年裡，我們建立了大型基礎設施來支持協作工作，我們認識到需要調整業務規模並重新調整業務，以便為我們的長期成功奠定基礎。基於此，今天我們對治療組織進行了重大重組，其中包括裁員。我們的治療組織中有 71 名員工或近 50% 的員工受到了影響。為了提醒我們的投資者，6 月份，我們宣布將消費者和 G&A 團隊的規模縮小了 9%。總體而言，自 2023 年 4 月 1 日以來，我們已減少了近 200 名員工。

We have a clear and focused plan for the therapeutics business, one that will enable us to focus in 2 areas where we believe our data insights provide us with the greatest strategic advantage. The first is to focus on continuing to advance our wholly-owned immuno-oncology assets. We continue to be pleased with the progress of patient enrollment in the Phase IIa portion of our Phase I/IIa clinical trial for 23ME-00610 and hope to share additional scientific information on the program at a medical conference later this calendar year.

我們對治療業務有一個明確而有針對性的計劃，該計劃將使我們能夠專注於兩個領域，我們相信我們的數據洞察力為我們提供了最大的戰略優勢。首先是專注於繼續推進我們全資擁有的免疫腫瘤學資產。我們對 23ME-00610 的 I/IIa 期臨床試驗的 IIa 期部分的患者入組進展仍然感到滿意，並希望在今年晚些時候的醫學會議上分享有關該項目的更多科學信息。

We are also excited to announce today that we are progressing a second I/O antibody asset, one that targets solid tumors through a novel mechanism that enhances natural killer cell mediated antitumor activity. We intend to provide an update on this program at a later date and continue to explore various options, including potential partnerships.

今天我們還很高興地宣布，我們正在開發第二種 I/O 抗體資產，該資產通過一種增強自然殺傷細胞介導的抗腫瘤活性的新機制來靶向實體瘤。我們打算稍後提供有關該計劃的最新信息，並繼續探索各種選擇，包括潛在的合作夥伴關係。

The second area is to tailor the therapeutics discovery organization to focus on the immunology and inflammation therapeutic area. We are excited about the strength and breadth of our data in immunology and inflammatory diseases and are looking to position a number of our leading immunology therapeutics programs to advance them towards the clinic. A smaller, more focused therapeutics organization allows us to reduce our cash burn and provide the overall business with a longer cash runway.

第二個領域是調整治療發現組織，重點關注免疫學和炎症治療領域。我們對免疫學和炎症性疾病數據的強度和廣度感到興奮，並希望定位我們的一些領先的免疫學治療項目，以將其推向臨床。規模更小、更專注的治療組織使我們能夠減少現金消耗，並為整體業務提供更長的現金跑道。

In addition, effective today, Kenneth Hillan will be stepping down as Chief Therapeutics Officer with the intention of retiring from 23andMe on February 8. He will continue to provide support through the transition. I'm pleased to announce that Bill Richards will be stepping up to lead our discovery organization as Head of Therapeutics Discovery and Jennifer Lowe will continue to serve as Head of Therapeutics Development as we advance our pipeline. Both will be reporting directly to me.

此外，從今天起，Kenneth Hillan 將辭去首席治療官職務，併計劃於 2 月 8 日從 23andMe 退休。他將在過渡期間繼續提供支持。我很高興地宣布，比爾·理查茲 (Bill Richards) 將作為治療藥物發現主管領導我們的發現組織，詹妮弗·洛 (Jennifer Lowe) 將繼續擔任治療藥物開發主管，以推進我們的產品線。兩人都將直接向我匯報。

Shifting to our consumer business. We remain focused on increasing product margins and delivering long-term customer value. In May 2023, we increased the price of our 23andMe+ subscription for new members and we are seeing positive results. Last month, we also increased the price of our PGS kits. These updates are part of our ongoing strategy to improve product margins through higher average selling prices and marketing efficiency.

轉向我們的消費者業務。我們仍然專注於提高產品利潤和提供長期客戶價值。 2023 年 5 月，我們提高了新會員的 23andMe+ 訂閱價格，並看到了積極的成果。上個月，我們還提高了 PGS 試劑盒的價格。這些更新是我們通過提高平均銷售價格和營銷效率來提高產品利潤的持續戰略的一部分。

We continue to grow our customer base and expand our unique crowd source platform of genetic and phenotypic data contributed by our engaged customers. This past quarter, we added to the value of our 23andMe+ subscription by launching 3 new polygenic risk score reports for depression, lupus and panic attacks. We now provide subscribers with 38 reports on important conditions that have an impact on millions of customers. We remain focused on delivering member exclusive premium insights and features that allow our subscribers to take action to improve their overall health.

我們繼續擴大我們的客戶群，並擴大我們獨特的眾包平台，該平台由我​​們參與的客戶提供的遺傳和表型數據提供。上個季度，我們推出了 3 份針對抑鬱症、狼瘡和恐慌症的新多基因風險評分報告，增加了 23andMe+ 訂閱的價值。我們現在為訂閱者提供 38 份關於影響數百萬客戶的重要情況的報告。我們仍然專注於提供會員專屬的優質見解和功能，使我們的訂閱者能夠採取行動改善他們的整體健康狀況。

With Lemonade, we offer pharmacy and medical services in 50 states and continue to meet the demand of customers looking for help with ED, hair loss, mental health and other conditions. Lemonade is a key part of our future strategy that integrates 23andMe genetic information with medical services, allowing customers to take actionable next steps.

通過 Lemonade，我們在 50 個州提供藥房和醫療服務，並繼續滿足在 ED、脫髮、心理健康和其他疾病方面尋求幫助的客戶的需求。 Lemonade 是我們未來戰略的關鍵部分，該戰略將 23andMe 遺傳信息與醫療服務相結合，使客戶能夠採取可行的後續步驟。

Over the past quarter, we also added finer ancestry composition details for our PGS customers, including indigenous American and indigenous Caribbean populations. Our ancestry service now offers ancestry composition for 2,500 geographic regions.

在過去的季度中，我們還為 PGS 客戶（包括美洲原住民和加勒比原住民）添加了更精細的血統組成詳細信息。我們的祖先服務現在提供 2,500 個地理區域的祖先組成。

Last week, Science Magazine featured a cover story on groundbreaking research led by our 23andMe research team, along with collaborators at Harvard and the Smithsonian on ancient DNA collected from the Catoctin Furnace site in Maryland where enslaved and free African-Americans labored in the 18th and 19th centuries.

上週，《科學》雜誌刊登了一篇封面故事，介紹了我們的23andMe 研究團隊以及哈佛大學和史密森尼學會的合作者領導的突破性研究，研究了從馬里蘭州卡托克廷熔爐遺址收集的古代DNA，那裡是被奴役和自由的非裔美國人在18 世紀和20 世紀勞動的地方。十九世紀。

Using the ancient DNA and the 23andMe database, 23andMe and Harvard researchers were able to find connections between the Catoctin individuals and more than 40,000 of their living relatives. This research demonstrates the power of DNA to fill in gaps previously erased by atrocities like the slave trade and the benefit to living individuals to learn of potential connections to their past relative.

利用古代 DNA 和 23andMe 數據庫，23andMe 和哈佛大學的研究人員能夠找到 Catoctin 個體與其 40,000 多名在世親屬之間的聯繫。這項研究展示了 DNA 的力量，可以填補先前因奴隸貿易等暴行而被抹去的空白，以及讓活著的個體了解與過去親屬的潛在聯繫的好處。

In addition, this past quarter, our research service group launched a sickle cell carrier status awareness program with Morehouse School of Medicine, Sickle Cell Foundation of Georgia, aiming to increase access to information on sickle cell carrier status and offer resources to individuals with sickle cell trait and sickle cell disease.

此外，上個季度，我們的研究服務小組與莫爾豪斯醫學院、佐治亞州鐮狀細胞基金會啟動了鐮狀細胞攜帶者狀態意識計劃，旨在增加鐮狀細胞攜帶者狀態信息的獲取，並為鐮狀細胞患者提供資源性狀和鐮狀細胞病。

We would be remiss not to talk about AI, large language models and our strategy at 23andMe. We are well-positioned to capitalize on AI advancements given our unique database of human genetic and health information. 23andMe has the largest recontactable database of human genetic data with self-reported genotypes with over 14 million customers and growing annually. We believe AI is going to play a significant role in the future for both the consumer and therapeutics businesses. At 23andMe, we have always recognized that genetic data serves as the cornerstone for a deep and meaningful understanding of health. Our growing database has reached a scale that can truly empower emerging AI models.

如果我們不談論人工智能、大型語言模型和 23andMe 的戰略，那就太失職了。鑑於我們獨特的人類遺傳和健康信息數據庫，我們處於有利地位，可以利用人工智能的進步。 23andMe 擁有最大的可重新聯繫的人類基因數據數據庫，該數據庫具有自我報告的基因型，擁有超過 1400 萬客戶，並且每年都在增長。我們相信人工智能將在未來為消費者和治療業務發揮重要作用。在 23andMe，我們始終認識到遺傳數據是深入、有意義地了解健康的基石。我們不斷增長的數據庫已經達到了能夠真正為新興人工智能模型提供支持的規模。

In the same way that we led the charge in large-scale consumer genetic testing, we are now positioned to bring AI to bear into health care and research. We see opportunities in uncovering completely new patterns and relationships that can help prevent, diagnose or treat a range of conditions in making genetics and preventative health far more accessible and scalable to our customers through the application of large language models.

就像我們在大規模消費者基因檢測方面處於領先地位一樣，我們現在也準備將人工智能引入醫療保健和研究領域。我們看到了發現全新模式和關係的機會，這些模式和關係可以幫助預防、診斷或治療一系列疾病，通過應用大型語言模型，使我們的客戶更容易獲得和擴展遺傳學和預防性健康。

And with that, I'll turn the call over to Joe to review our financial results for the quarter.

接下來，我將把電話轉給喬，讓他審查我們本季度的財務業績。

Thanks, Anne. Our first quarter of fiscal year '24 was in line with our guidance. We have also made headway on improving our adjusted EBITDA deficit for our consumer and research services and therapeutic segments through margin and operating expense discipline, which we expect to continue during fiscal year 2024. We increased our prices of our PGS kits and subscriptions. And to date, these have been accretive to margin.

謝謝，安妮。我們 24 財年第一季度的業績符合我們的指導方針。我們還通過利潤率和運營費用紀律，在改善消費者和研究服務以及治療領域的調整後EBITDA 赤字方面取得了進展，我們預計在2024 財年將繼續這樣做。我們提高了PGS 試劑盒和訂閱的價格。迄今為止，這些已經增加了利潤。

Our revenue for the 3 months ended June 30, 2023, was $61 million, representing a decrease of 6% over the same period in the prior year. The year-over-year decrease in revenue was primarily due to our focus on driving improved product margins through higher average selling prices and marketing efficiency, resulting in lower overall volume of PGS kits and telehealth orders. These decreases were partially offset by continued growth in our subscription services and GSK's election to extend its exclusive discovery for a fifth year, which provides greater revenue than prior years.

截至2023年6月30日的三個月，我們的收入為6100萬美元，比上年同期下降6%。收入同比下降的主要原因是我們專注於通過提高平均銷售價格和營銷效率來提高產品利潤，從而導致 PGS 試劑盒和遠程醫療訂單總量下降。這些下降被我們的訂閱服務的持續增長以及葛蘭素史克選擇將其獨家發現延長第五年所部分抵消，這提供了比前幾年更多的收入。

Looking at the composition of our revenue, consumer services revenue represented approximately 78% of total revenue for the 3 months ended June 30, 2023 and research services revenue, which was primarily derived from the GSK collaboration, accounted for approximately 22% of total revenue for the same period. Our gross profit for the 3-month period ended June 30, 2023, was $31 million, representing a 20% increase over the same period in the prior year. The increase in the first quarter gross profit was driven primarily by the increase in research services revenue, subscription services revenue and improved PGS kit selling prices mentioned previously.

從我們的收入構成來看，消費者服務收入約佔截至2023 年6 月30 日止3 個月總收入的78%，研究服務收入主要來自與GSK 的合作，約佔2023 年6 月30 日總收入的22%。同一時期。截至2023年6月30日的三個月期間，我們的毛利潤為3100萬美元，比上年同期增長20%。第一季度毛利潤的增長主要是由研究服務收入、訂閱服務收入的增長以及前面提到的 PGS 套件銷售價格的提高推動的。

Operating expenses for the 3 months ended June 30, 2023, were $140 million compared to $115 million for the same period in the prior year. The increase in the first quarter operating expenses was primarily driven by a $22 million noncash stock-based compensation expense associated in connection with the departure of an employee with an accelerated vesting of an equity grant under the terms of our relinquishment agreement, along with continued investment in therapeutics portfolio advancement, partially offset by reductions in marketing, advertising spend aimed to improve advertising efficiency as noted previously.

截至 2023 年 6 月 30 日的三個月運營費用為 1.4 億美元，而上年同期為 1.15 億美元。第一季度運營費用的增加主要是由於與根據我們的放棄協議條款加速授予股權授予的員工離職以及持續投資相關的 2200 萬美元非現金股票補償費用所致在治療組合的進步中，廣告支出的目的是提高廣告效率，部分被營銷的減少所抵消，如前所述。

Looking at the bottom line, net loss for the 3 months ended June 30, 2023, was $105 million compared to net loss for the same period in the prior year of $90 million. The increase in first quarter net loss was driven mainly by the higher operating expenses mentioned previously, partially offset by gross margin improvements and an increase in interest income from cash held in money market funds.

從底線來看，截至 2023 年 6 月 30 日的三個月淨虧損為 1.05 億美元，而上一年同期的淨虧損為 9000 萬美元。第一季度淨虧損的增加主要是由於前面提到的運營費用增加，但部分被毛利率的改善和貨幣市場基金持有現金的利息收入增加所抵消。

Next, our adjusted EBITDA. For details on how we define adjusted EBITDA as well as the corresponding reconciliations to GAAP, please see our earnings press release. Total adjusted EBITDA deficit for the 3 months ended June 30, 2023, was $15 million, flat to the same period in the prior year. We ended the quarter with $314 million in cash and cash equivalents compared to $387 million as of March 31, 2023.

接下來是我們調整後的 EBITDA。有關我們如何定義調整後 EBITDA 以及相應的 GAAP 調節的詳細信息，請參閱我們的收益新聞稿。截至 2023 年 6 月 30 日的三個月調整後 EBITDA 赤字總額為 1,500 萬美元，與上年同期持平。截至本季度末，我們的現金和現金等價物為 3.14 億美元，而截至 2023 年 3 月 31 日為 3.87 億美元。

As always, we are actively evaluating our use of capital for both our consumer and therapeutic businesses, including responsibly opting in or out of therapeutic programs based on opportunity potential and timing of returns as appropriate given market conditions.

一如既往，我們正在積極評估我們對消費者和治療業務的資本使用情況，包括根據機會潛力和適當的市場條件回報時間負責任地選擇加入或退出治療計劃。

Now turning to our guidance. The company's full fiscal 2024 guidance is based on a conservative approach, recognizing the current uncertainties in the general economy and financial markets. Within the existing consumer businesses of PGS and telehealth, the company is prioritizing the minimization of cash burn and margin expansion for those areas of the business expected to drive future growth, which include the 23andMe+ subscription services and therapeutics. The company plans to focus on more strategically and financially valuable allocation of our capital and invest appropriately. Given the company's shift in focus to higher margins as well as the end of the target discovery term of the GSK collaboration, the company does not foresee meaningful revenue contribution from these areas of consumer in fiscal 2024.

現在轉向我們的指導。該公司的 2024 財年完整指引基於保守方法，認識到當前整體經濟和金融市場的不確定性。在 PGS 和遠程醫療的現有消費業務中，該公司優先考慮的是最大程度地減少現金消耗和擴大預計將推動未來增長的業務領域的利潤率，其中包括 23andMe+ 訂閱服務和治療。公司計劃重點關注更具戰略性和財務價值的資本配置並進行適當投資。鑑於該公司將重點轉向更高的利潤率以及與葛蘭素史克合作的目標發現期限結束，該公司預計 2024 財年這些消費領域不會產生有意義的收入貢獻。

Within the first quarter's results behind us, the company is adjusting its full year guidance for fiscal 2024, which ends on March 31, 2024. Revenue guidance for fiscal year 2024 is reaffirmed to be in the range of $255 million to $275 million and more likely to come in the lower end of that range with net loss improving to an updated range of $325 million to $345 million net loss.

在我們公佈的第一季度業績中，該公司正在調整截至2024 年3 月31 日的2024 財年全年指引。2024 財年的收入指引被重申在2.55 億美元至2.75 億美元之間，更有可能淨虧損改善至 3.25 億美元至 3.45 億美元的更新範圍。

Full year adjusted EBITDA deficit is now projected to improve to be in the range of $160 million to $180 million deficit for fiscal year 2024. This updated guidance is a result of us continuing to focus on margin growth through adding value to our products, while at the same time, reducing our cost structure.

預計 2024 財年全年調整後 EBITDA 赤字將改善至 1.6 億至 1.8 億美元赤字。這一更新的指導是我們繼續關注通過增加產品價值來實現利潤增長的結果，同時同時，降低我們的成本結構。

The adjusted EBITDA guidance assumes the following that we will continue to advance our key therapeutic assets and that no additional revenue is currently included from new strategic partnerships. Also, a reminder that adjusted EBITDA is our best proxy for cash burn.

調整後的 EBITDA 指引假設我們將繼續推進我們的關鍵治療資產，並且目前不包括來自新戰略合作夥伴關係的額外收入。另外，請注意，調整後的 EBITDA 是我們現金消耗的最佳指標。

And now I'll turn the call back over to Anne.

現在我將把電話轉回給安妮。

Thank you, Joe. We remain optimistic heading into the rest of the fiscal year in our ability to execute on the consumer business, advance our current therapeutic pipeline and take advantage of exciting new opportunities in drug development.

謝謝你，喬。進入本財年剩餘時間，我們對執行消費者業務、推進當前治療產品線以及利用藥物開發領域令人興奮的新機遇的能力保持樂觀。

With that, let's open it up for questions.

說到這裡，讓我們開始提問吧。

(Operator Instructions) Our first question comes from David Lebowitz with Citi.

（操作員說明）我們的第一個問題來自花旗銀行的 David Lebowitz。

I'm on for Daniel Grosslight. First question, with respect to Prime Day in July, did -- was there any adaptation or change in your marketing strategy versus prior Prime Days?

我是丹尼爾·格羅斯萊特。第一個問題，關於 7 月的 Prime Day，與之前的 Prime Day 相比，您的營銷策略是否有任何調整或變化？

David, we appreciate the interest. Today, we're not planning to talk about Prime Day as it occurred in July, which is part of our second fiscal quarter. We can confirm that the results of the recent Prime Day are reflected in our updated guidance for the year.

大衛，我們感謝您的關注。今天，我們不打算談論 7 月發生的 Prime Day，這是我們第二財季的一部分。我們可以確認，最近的 Prime Day 的結果已反映在我們今年更新的指導中。

Got it. Also, given the recent price increase, has there been any churn in subscriptions?

知道了。另外，考慮到最近的價格上漲，訂閱量是否有任何變化？

To-date, we have not seen any churn in subscriptions. We increased the prices for new subscribers and that has been consistent with our projections.

迄今為止，我們還沒有看到任何訂閱量的流失。我們提高了新訂戶的價格，這與我們的預測一致。

Got it. And then could you just update us as to the status of the Lemonade and 23andMe app, specifically the rollout relating to primary care?

知道了。那麼您能否向我們介紹 Lemonade 和 23andMe 應用程序的最新狀態，特別是與初級保健相關的推出情況？

Yes, (inaudible). I'll jump in a little bit just with the app. The app is absolutely something that we deprecated and something that we definitely think about how we're going to integrate the entire Lemonade experience into 23andMe in the future. So again, just to reiterate, the purpose -- the reason why we bought Lemonade was to be able to enhance more and more the demand that we see for comprehensive genomic offerings.

是的，（聽不清）。我將簡單介紹一下該應用程序。該應用程序絕對是我們已棄用的東西，並且我們肯定會考慮未來如何將整個 Lemonade 體驗集成到 23andMe 中。再次重申，我們購買 Lemonade 的目的是為了能夠越來越多地增強我們對全面基因組產品的需求。

So there's a number of services, obviously, that lemonade delivers. ED, hair loss, dermatology that we are continuing. But what I see is that strategic long-term vision is the ability for us to have the 23andMe experience, a comprehensive genomic experience and really help people have pharmacogenomics, understand the genetics and what to do with their care and really be able to have a partnership with those customers long-term to help them get the best value from their genomic information.

顯然，檸檬水可以提供多種服務。 ED、脫髮、皮膚科我們正在繼續。但我看到的是，戰略性的長期願景是我們有能力擁有 23andMe 經驗，全面的基因組經驗，真正幫助人們了解藥物基因組學，了解遺傳學以及如何處理他們的護理，並真正能夠擁有與這些客戶建立長期合作夥伴關係，幫助他們從基因組信息中獲得最大價值。

So absolutely something that we are continuing to work on. Joe, what else were you going to say?

所以這絕對是我們正在繼續努力的事情。喬，你還想說什麼？

I think that covers it, Anne.

我想這已經涵蓋了，安妮。

And we have a question coming from Gaurav Goparaju with Berenberg Capital Markets.

我們有一個來自 Berenberg Capital Markets 的 Gaurav Goparaju 的問題。

Just a couple for me. On capital allocation strategy in therapeutics business specifically, given the current macro climate, are you prioritizing later-stage programs more? Or are you able to still focus on newer, earlier discovery stage programs as well?

對我來說只是一對。具體到治療業務的資本配置策略，考慮到當前的宏觀環境，您是否更優先考慮後期項目？或者您仍然能夠專注於更新、早期發現階段的項目嗎？

Kenneth, do you want to take that?

肯尼斯，你想接受這個嗎？

Yes, happy to do that. Yes, we absolutely prioritize our therapeutics business into 2 areas where we feel that we have the greater strategic advantage. The first is very much on those most advanced I/O program. So we've talked before about P006 that's currently in its Phase II study. That really is our top priority. And then as Anne shared today, we have a new program that we're excited about that is a potential first-in-class program with a differentiated mechanism of action also an antibody for immuno-oncology. So that's priority area 1.

是的，很高興這樣做。是的，我們絕對將我們的治療業務優先發展到我們認為擁有更大戰略優勢的兩個領域。第一個是非常關於那些最先進的I/O程序。我們之前已經討論過目前處於 II 期研究的 P006。這確實是我們的首要任務。然後，正如安妮今天分享的那樣，我們有一個令我們感到興奮的新項目，這是一個潛在的一流項目，具有差異化的作用機制，也是免疫腫瘤學的抗體。這就是優先領域 1。

The second priority area is in immunology and inflammation, so I&I. And as we've gone through the restructuring, the recent restructuring therapeutics, that's going to be our primary area of focus. And we've essentially deprioritized all other efforts in discovery. And so yes, really trim down and focus the organization.

第二個優先領域是免疫學和炎症，即 I&I。當我們經歷重組、最近的重組療法時，這將是我們的主要關注領域。我們基本上已經不再優先考慮所有其他發現工作。所以，是的，確實要精簡組織並集中精力。

Got it. And then just one quick follow-up. Pending favorable Phase II data on 00610, do you plan to out-license the program for later clinical development? Or are you prepared to take it through commercialization internally?

知道了。然後只是一個快速跟進。在 00610 獲得有利的 II 期數據之前，您是否計劃將該項目許可用於以後的臨床開發？或者你準備好在內部將其商業化嗎？

Yes, I can take that. And Anne, feel free to add anything you'd like. We've always said for our programs, particularly those lead programs, that we see them as providing opportunities to partner with pharma companies. That's because we believe in immuno-oncology. Pharma partners actually have the ability to maximize the total value of their asset given their global reach and their ability to perform combination studies, which, as you know, are really important in immuno-oncology.

是的，我可以接受。安妮，請隨意添加您想要的任何內容。我們一直表示，對於我們的項目，特別是那些主導項目，我們認為它們提供了與製藥公司合作的機會。那是因為我們相信免疫腫瘤學。鑑於製藥合作夥伴的全球影響力和進行組合研究的能力，製藥合作夥伴實際上有能力最大化其資產的總價值，正如您所知，這在免疫腫瘤學中非常重要。

So our strategy there would be to look for partnership opportunities. As you will remember, Reza Afkhami recently joined us as our Head of Corporate Development and is leading those discussions with those I/O programs.

因此，我們的策略是尋找合作機會。您還記得，Reza Afkhami 最近加入我們，擔任我們的企業發展主管，並領導與這些 I/O 計劃的討論。

Now I'll turn it over to Katie for any further questions.

現在我將把它轉給凱蒂，以解答任何進一步的問題。

Thank you. We have a few questions from investors that came in through our [Same] Technologies Q&A platform. I'm now going to ask the management team to address the top questions that we received through the platform. The first question is, when does the exclusive deal with GSK end and what new partners or deals can you announce now?

謝謝。我們收到了投資者通過我們的 [Same] Technologies 問答平台提出的一些問題。我現在要請管理團隊解決我們通過該平台收到的首要問題。第一個問題是，與 GSK 的獨家交易何時結束？現在可以宣布哪些新的合作夥伴或交易？

So I can take that and then I can have Kenneth jump in some as well. So the GSK collaboration ended in July and it is a collaboration that has many programs that are continuing to mature. So that collaboration, you can imagine, will continue in a different type of form. We will not be doing novel discovery anymore, but we will be continuing to support the programs out of there.

所以我可以接受這個，然後我也可以讓肯尼斯也加入一些。因此，GSK 的合作於 7 月份結束，這是一個有許多項目正在不斷成熟的合作。因此，您可以想像，這種合作將以不同類型的形式繼續下去。我們將不再進行新的發現，但我們將繼續支持那裡的項目。

What's really exciting for me in the post-GSK world is the explosion of interest in genomic-based discovery. So there are lots of biotechs, lots of pharma companies that now really see the opportunity with having genetics as a fundamental part of their discovery engine. And what we've really been able to prove out with GSK during this collaboration is the incredible productivity that we can get from our database. So we are incredibly adept and capable with target discovery and leading that through to novel programs.

在後葛蘭素史克時代，真正令我興奮的是人們對基於基因組的發現的興趣激增。因此，有很多生物技術公司、很多製藥公司現在真正看到了將遺傳學作為其發現引擎的基本組成部分的機會。在這次合作中，我們與葛蘭素史克真正能夠證明的是，我們可以從我們的數據庫中獲得令人難以置信的生產力。因此，我們非常擅長並有能力發現目標並將其引導至新穎的項目。

So we're focusing really on those types of collaborations, data partnerships as well as research discovery partnerships in specific phenotypes. But we see a real demand now for access to the 23andMe database for target discovery. Kenneth, anything to add?

因此，我們真正關注的是這些類型的合作、數據夥伴關係以及特定表型的研究發現夥伴關係。但我們現在看到了訪問 23andMe 數據庫以進行目標發現的真正需求。肯尼斯，有什麼要補充的嗎？

No, Anne. I think that's a great summary. Thanks.

不，安妮。我認為這是一個很好的總結。謝謝。

Great. The next question is, when do you expect increased revenue from the maturation of the pharmaceutical and therapeutics pipeline?

偉大的。下一個問題是，您預計何時會因藥品和治療藥物管道的成熟而增加收入？

I can take that, Katie. Thank you. We are pursuing revenue-generating collaboration with third parties as well as advancing our wholly-owned therapeutics programs. We're also focused on non-exclusive database collaborations as Anne was just referencing earlier and other partnerships for drug discovery with third parties. We'll continue to announce partnerships as they happen and provide updates on our therapeutic programs in the future.

我可以接受，凱蒂。謝謝。我們正在尋求與第三方的創收合作，並推進我們的全資治療項目。我們還關注非排他性數據庫合作，因為 Anne 剛才提到了與第三方的藥物發現合作夥伴關係。我們將繼續宣布合作夥伴關係，並在未來提供有關我們治療計劃的最新信息。

Thanks, Joe. The next question is, is ME looking at share repurchases since the share price is down 83% since IPO?

謝謝，喬。下一個問題是，自從 IPO 以來股價下跌了 83%，ME 是否正在考慮股票回購？

We have a strong current cash position with $314 million in cash and cash equivalents at the end of the quarter. Our full year adjusted EBITDA deficit is projected to be in the range of $160 million to $180 million deficit for fiscal year 2024. This gives you a sense of our cash position and runway. And it's a reasonably good period of time that will give us the ability to execute upon a lot of our goals on the consumer and as well as the therapeutics portfolio. With that said, we will be opportunistic and evaluate our options as it relates to fundraising.

我們當前的現金狀況強勁，截至本季度末現金和現金等價物為 3.14 億美元。 2024 財年，我們全年調整後的 EBITDA 赤字預計將在 1.6 億至 1.8 億美元之間。這可以讓您了解我們的現金狀況和跑道。這是一段相當好的時期，使我們有能力實現我們對消費者和治療組合的許多目標。話雖如此，我們將抓住機會並評估與籌款相關的選擇。

Thanks, Joe. The next question, please comment more on the 50-plus therapeutics programs the GSK collaboration has yielded.

謝謝，喬。下一個問題，請您對葛蘭素史克合作產生的 50 多個治療項目進行更多評論。

Thank you. I'm happy to take that. So broadly, the programs, including both GSK and 23andME wholly-owned programs span the following therapeutic areas: immuno-oncology, cardiovascular and metabolic, immunology and neurology. So it's very broad and that really speaks to, I think, the breadth and depth of the 23andME database and then, of course, GSK's interest and capabilities as a large pharma company across multiple therapeutic areas.

謝謝。我很樂意接受。從廣義上講，這些項目（包括 GSK 和 23andME 全資項目）涵蓋以下治療領域：免疫腫瘤學、心血管和代謝、免疫學和神經病學。所以它非常廣泛，我認為這確實說明了 23andME 數據庫的廣度和深度，當然也說明了葛蘭素史克作為跨多個治療領域的大型製藥公司的興趣和能力。

As Anne shared on the call, the collaboration has really been a large success. It combines the skills and the resources of both companies to generate more than 50 therapeutic programs, which is incredible productivity over 5 years. We will continue to advance a number of ongoing programs, both collaboratively and independently. And importantly, 23andMe has the option to receive royalties from the programs that GSK advances on its own that came from the database. And so there are multiple revenue streams that are still to be realized in the future, we believe, from this collaboration.

正如安妮在電話中分享的那樣，這次合作確實取得了巨大的成功。它結合了兩家公司的技能和資源，制定了 50 多個治療方案，5 年來的生產力令人難以置信。我們將繼續以合作和獨立的方式推進一些正在進行的項目。重要的是，23andMe 可以選擇從 GSK 自己開發的、來自數據庫的項目中收取版稅。因此，我們相信，通過這次合作，未來仍有多種收入來源有待實現。

In addition to our GSK programs, we also announced that we're progressing a second I/O antibody program, one that targets solid tumors through a really novel mechanism that enhances natural killer cell mediated anti-tumor activity. We believe it has the potential to be a first-in-class program and we intend to provide an update on this at a later date. And we'll continue, as I spoke about with P006 to explore various options, including potential partnerships in the immuno-oncology space.

除了我們的 GSK 項目之外，我們還宣布我們正在推進第二個 I/O 抗體項目，該項目通過一種真正新穎的機制來靶向實體瘤，增強自然殺傷細胞介導的抗腫瘤活性。我們相信它有潛力成為一流的計劃，我們打算稍後提供相關更新。正如我與 P006 談到的那樣，我們將繼續探索各種選擇，包括免疫腫瘤學領域的潛在合作夥伴關係。

Thanks, Kenneth. I believe this question is also for you. How is the drug development of your fully owned 23andME-00610 program going?

謝謝，肯尼思。我相信這個問題也適合你。你們全資擁有的 23andME-00610 項目的藥物開發進展如何？

Yes, thanks for the question. Yes, we continue to be pleased with the progress of enrollment in the Phase IIa portion of the clinical trial for 23andME-00610. It's the first in human. We've completed, as you know, the dose escalation phase. And now we're looking for evidence of objective responses, progression-free survival and overall survival in the expansion cohorts. Those expansion cohorts cover a number of different solid tumor types of patients with advanced solid malignancies, metastatic solid malignancies, including ovarian cancer, clear cell carcinoma of the kidney, tumors with high mutation burden, neuroendocrine tumors, small-cell lung cancers and in addition, a cohort in adolescent patients.

是的，謝謝你的提問。是的，我們對 23andME-00610 臨床試驗 IIa 期部分的入組進展仍然感到滿意。這在人類中尚屬首次。如您所知，我們已經完成了劑量遞增階段。現在我們正在尋找擴展隊列中客觀反應、無進展生存期和總生存期的證據。這些擴展隊列涵蓋了多種不同實體瘤類型的晚期實體惡性腫瘤、轉移性實體惡性腫瘤患者，包括卵巢癌、腎透明細胞癌、高突變負荷腫瘤、神經內分泌腫瘤、小細胞肺癌等，一組青少年患者。

We anticipate that we will be sharing data at a later date at a scientific or medical conference around the seasonal escalation portion of the study and we plan for that later this fiscal year.

我們預計，我們將在稍後的科學或醫學會議上圍繞研究的季節性升級部分共享數據，我們計劃在本財年晚些時候這樣做。

Great, thank you. How do you plan to address the current cash burn?

太好了謝謝。您計劃如何解決當前的現金消耗問題？

We made headway on improving our adjusted EBITDA deficit from our Consumer and Research Services and Therapeutics segment through margin and operating expense discipline, which we continue to expect to continue throughout fiscal year 2024. We increased the prices of our PGS kits and subscriptions. And to date, these both have been accretive to margins. And we're actively working on non-exclusive database deals and other partnerships.

我們通過利潤率和運營費用紀律，在改善消費者、研究服務和治療部門的調整後EBITDA 赤字方面取得了進展，我們仍然預計整個2024 財年將持續這種情況。我們提高了PGS 試劑盒和訂閱的價格。迄今為止，這兩項都增加了利潤。我們正在積極致力於非獨家數據庫交易和其他合作夥伴關係。

As announced, we've also restructured the company, including the therapeutics business. A smaller, more focused therapeutics organization and company overall allows us to reduce our cash burn and provide the overall business with a longer cash runway.

正如所宣布的，我們還重組了公司，包括治療業務。規模更小、更專注的治療組織和公司整體使我們能夠減少現金消耗，並為整體業務提供更長的現金跑道。

Thanks, Joe. The next question, what are your plans to incorporate AI? And what part of the business do you see it providing the most value?

謝謝，喬。下一個問題，你們計劃如何整合人工智能？您認為業務的哪一部分提供了最大的價值？

I'll take that, Katie. We are very excited about the opportunities with LLM models and the application of AI. And it's not just in one segment or the other. We really see the opportunity of LLM to be transformative really for the consumer business and how consumers are interacting with their genetic data, how they're potentially getting access to care, the insights that they're getting. We think it can be broadly applicable to the consumer experience and then in drug discovery as well.

我會接受的，凱蒂。我們對法學碩士模型和人工智能應用的機會感到非常興奮。而且它不僅僅存在於某個細分市場或另一細分市場。我們確實看到了法學碩士為消費者業務帶來變革的機會，以及消費者如何與其基因數據互動、他們如何獲得醫療服務以及他們獲得的見解。我們認為它可以廣泛適用於消費者體驗，然後也適用於藥物發現。

It has already been used in important areas like protein folding. And we see that being able to have large genomic data sets with structured phenotypic data, we're really well set up to apply large language models to the incredible amounts of data that we have for drug discovery. So we see, again, broad applications, both on the consumer side and the therapeutic side and we'll continue to keep updating you as we have more announcements on that. But we do have teams dedicated in both areas.

它已經被用於蛋白質折疊等重要領域。我們看到，如果能夠擁有包含結構化表型數據的大型基因組數據集，我們就可以將大型語言模型應用於我們擁有的用於藥物發現的大量數據。因此，我們再次看到了廣泛的應用，無論是在消費者方面還是在治療方面，我們將繼續向您通報最新情況，因為我們有更多相關公告。但我們確實有專門從事這兩個領域的團隊。

Thank you, Anne. Final question, what new products, services or new income streams are coming? And if you're not able to speak to them, can you provide a simple yes or no that they are on the way?

謝謝你，安妮。最後一個問題，即將推出哪些新產品、服務或新收入來源？如果您無法與他們交談，您能否簡單地表示他們正在路上？

I can help you, I can take that one, Katie. We continue to invest in the 23andMe+ subscription offering to make it a compelling long-term value service for customers. We're also optimizing pricing and efficiencies in customer acquisition costs to better -- to deliver better margins. We also expect continued growth for this recurring revenue model and a consistent focus on margin optimization as we bring more personally relevant information to our members.

我可以幫助你，我可以接受那個，凱蒂。我們繼續投資 23andMe+ 訂閱服務，使其成為對客戶有吸引力的長期價值服務。我們還在優化客戶獲取成本的定價和效率，以提供更好的利潤。我們還預計這種經常性收入模式將持續增長，並持續關注利潤優化，因為我們為會員提供了更多與個人相關的信息。

Also, as I previously mentioned, 23andMe is also pursuing new revenue-generating collaborations with third parties. This includes non-exclusive database collaborations and other partnerships for drug discovery and we'll announce these partnerships as they happen.

此外，正如我之前提到的，23andMe 還在尋求與第三方開展新的創收合作。這包括非排他性數據庫合作和其他藥物發現合作夥伴關係，我們將在這些合作夥伴關係發生時宣布這些合作夥伴關係。

Great. That concludes the submitted Q&A. We look forward to updating you on 23andMe's progress on both our therapeutic efforts and consumer business.

偉大的。提交的問答到此結束。我們期待向您通報 23andMe 在治療工作和消費者業務方面的最新進展。

Thank you for joining us. This concludes today's conference call. Thank you for participating. You may now disconnect. Everyone, have a great day.

感謝您加入我們。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。大家，祝你有美好的一天。