23andMe Holding Co. (ME) 2024 Q4 法說會逐字稿

Hello, and welcome to 23andMe's fiscal year 2024 fourth quarter and full-year financial results conference call.

您好，歡迎參加 23andMe 2024 財年第四季和全年財務業績電話會議。

As a reminder, this call is being recorded.

提醒一下，此通話正在錄音。

(Operator Instructions)

（操作員說明）

I would like to turn the call over to Ian Cooney, Senior Director of Investor Relations at 23andMe, to lead off the call.

我想將此次電話會議轉交給 23andMe 投資者關係高級總監 Ian Cooney 主持。

Thank you.

謝謝。

Please go ahead.

請繼續。

Thank you.

謝謝。

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 fourth quarter and full year.

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，報告我們第四季度和全年的財務業績。

A replay of today's webcast will also be available on our website.

今天網路廣播的重播也將在我們的網站上提供。

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.

請注意，本次電話會議期間所做的有關非歷史事實的某些陳述，包括但不限於管理階層的展望或對未來期間的預測，均為前瞻性陳述。

These statements are based solely on information that is now available to us.

這些陳述僅基於我們現在掌握的資訊。

We encourage you to review the section entitled forward-looking statements in our press release, which applies to this call.

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。

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.

此外，請參閱我們向 SEC 提交的文件（可在我們的網站和 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。

We also discuss certain non-GAAP measures.

我們也討論了某些非公認會計原則措施。

Important information on our use of these measures and reconciliation to US GAAP may be found in our earnings release.

有關我們使用這些措施以及與美國公認會計原則（US GAAP）進行調節的重要資訊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 Chief Financial and Accounting Officer.

今天參加我們電話會議的還有我們的執行長兼共同創辦人 Anne Wojcicki；以及我們的財務和會計長 Joe Selsavage。

Jennifer Low, our Head of Therapeutics Development will join us for Q&A.

我們的治療開發主管 Jennifer Low 將與我們一起進行問答。

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

我現在想把電話轉給喬。

Thank you, Ian.

謝謝你，伊恩。

Hello everyone.

大家好。

I'd like to start by addressing the topic that is likely top of mind for everyone on this call.

我想先討論本次電話會議中每個人可能最關心的話題。

On March 28, 2024, the Board of Directors of 23andMe formed a special committee comprised of independent directors to review strategic alternatives that may be available to 23andMe to maximize shareholder value.

2024 年 3 月 28 日，23andMe 董事會成立了一個由獨立董事組成的特別委員會，負責審查 23andMe 可能採取的策略替代方案，以實現股東價值最大化。

On April 19th, 2024, the company announced, it has been made aware that Anne Wojcick, Chief Executive Officer, Co-Founder, and Chair of the Board of Directors of 23andMe, was considering making a proposal to acquire all of the outstanding shares of 23andMe that she does not currently own, as she stated in an amendment dated April 17, 2024, to our Schedule 13D filing with the Securities and Exchange Commission.

2024 年 4 月 19 日，該公司宣布，已獲悉 23andMe 執行長、聯合創始人兼董事會主席 Anne Wojcick 正在考慮提出收購 23andMe 全部已發行股份的提案。委員會提交的Schedule 13D 文件的修正案中所述，她目前並不擁有23andMe。

Ms. Wojcicki also indicated in our Schedule 13D filing that she wishes to maintain control of 23andMe and therefore will not be willing to support any alternative transaction.

Wojcicki 女士也在我們的 Schedule 13D 文件中表示，她希望保持對 23andMe 的控制，因此不願意支持任何替代交易。

The special committee will carefully review this Ms. Wojcicki's proposal when and if it is made available and evaluate it in light of other available strategic alternatives, including continuing to operate as a publicly traded company.

特別委員會將在沃西基女士的提案公佈時仔細審查該提案，並根據其他可用的戰略選擇（包括繼續作為上市公司運營）對其進行評估。

The special committee is committed to acting in the best interest of 23andMe and its shareholders.

特別委員會致力於以 23andMe 及其股東的最佳利益行事。

There can be no assurances that the foregoing will result in any particular outcome, and 23andMe does not intend to comment further on these matters until 23andMe determines that additional disclosure is appropriate or required by law.

無法保證上述內容會導致任何特定結果，並且在 23andMe 確定額外披露是適當的或法律要求之前，23andMe 不打算對這些事項進一步發表評論。

This call is focused solely on the company and its earnings release, and we will not be addressing or responding to any questions regarding the aforementioned matters on this call.

本次電話會議僅關注本公司及其收益發布，我們不會在本次電話會議上解決或回應有關上述事項的任何問題。

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

我現在想把電話轉給安妮。

Thank you, Joe. Fiscal 2024 was a productive yet transitional year at 23andMe.

謝謝你，喬。 2024 財年對 23andMe 來說是富有成效且過渡的一年。

The conclusion in July of the exclusive period of our discovery and development collaboration agreement with GSK, combined with a more constrained capital markets and fundraising environment necessitated a significant change in the strategic direction of the company.

我們與葛蘭素史克 (GSK) 的獨家發現和開發合作協議於 7 月結束，加上資本市場和融資環境更加受限，迫使公司的策略方向發生重大變化。

We refocused our business on our highest value programs and therapeutics and prioritized higher margin services and creating value for our membership programs in our consumer business.

我們將業務重新集中在最高價值的計劃和治療上，並優先考慮更高利潤的服務，並為我們的消費者業務中的會員計劃創造價值。

We also began to reimagine how to best leverage our data to create value for customers, partners, and shareholders.

我們也開始重新設想如何最好地利用我們的數據為客戶、合作夥伴和股東創造價值。

The result is an operating model that will look different in the coming years, but it's designed to reflect a company that remains committed to our vision of improving the health of millions of people worldwide.

結果是一種在未來幾年看起來會有所不同的營運模式，但它的設計反映了一家公司仍然致力於改善全球數百萬人健康的願景。

As a first priority, we are focusing on driving profitable growth and high return uses of cash.

作為首要任務，我們專注於推動利潤成長和現金的高回報使用。

This means prioritizing memberships in our PGS segment, driving growth in telehealth, and leveraging our data assets to create a sustainably growing profitable research business.

這意味著優先考慮我們的 PGS 領域的會員資格、推動遠距醫療的成長，並利用我們的數據資產創建可持續成長的獲利研究業務。

It also means that we are looking for ways to fund the continued development of our clinical assets while limiting the use of cash on our balance sheet.

這也意味著我們正在尋找方法為我們的臨床資產的持續發展提供資金，同時限制資產負債表上現金的使用。

Starting with the PGS business.

從PGS業務開始。

We are excited to announce that we have passed the 15 million customer milestone.

我們很高興地宣布我們已經突破了 1500 萬客戶的里程碑。

This is a testament to the hard work of our employees into the power and value of genetic information.

這證明了我們員工為基因資訊的力量和價值所付出的辛勤努力。

We continue to innovate in both our ancestry and health offerings to drive growth and add value to our platform, specificahlly in our membership services.

我們繼續在血統和健康產品方面進行創新，以推動成長並為我們的平台增加價值，特別是在我們的會員服務方面。

We have a compelling pipeline of premium features planned for our ancestry platform and recently rolled out an exciting new feature called Historical Matches, enabling premium plus members to learn about their genetic connections to hundreds of interesting figures from history.

我們為我們的祖先平台規劃了一系列引人注目的高級功能，最近推出了一項令人興奮的新功能，稱為歷史匹配，使高級會員能夠了解他們與歷史上數百個有趣人物的遺傳聯繫。

We also added a number of new regions to bring our industry-leading total to over 3,000.

我們還增加了一些新區域，使我們的總數達到 3,000 多個，處於行業領先地位。

In health, a major component of our vision is to build a scalable, preventive health service.

在健康領域，我們願景的一個重要部分是建立可擴展的預防性健康服務。

We think this is best achieved through driving membership growth on our platform as it enables us to help our customers improve their health and manage risk over time.

我們認為，這最好透過推動我們平台上的會員成長來實現，因為它使我們能夠幫助我們的客戶改善他們的健康並隨著時間的推移管理風險。

The membership model also enables a scalable, sustainable business model that will allow us to create value for shareholders while we are investing in innovation to continue to improve the value of our offerings for customers.

會員模式也實現了可擴展、可持續的商業模式，使我們能夠為股東創造價值，同時我們投資於創新，並繼續提高我們為客戶提供的產品的價值。

We are focused on the delivery of ongoing health value and accountability to customers.

我們專注於為客戶提供持續的健康價值和責任。

And our product development for our consumer products is largely centered in this area.

我們的消費品開發主要集中在這個領域。

We started with the recent rollout of personalized health features like Health Action plan and Health Tracks and had begun integrating telehealth into our offering with the rollout of Total Health.

我們從最近推出的個人化健康功能（如健康行動計劃和健康追蹤）開始，並開始將遠距醫療整合到我們的產品中，推出全面健康。

In Q4, we announced the availability of three new genetic reports for 23 million-plus members on breast, colorectal, and prostate cancer.

在第四季度，我們宣佈為超過 2,300 萬會員提供三份關於乳癌、大腸癌和攝護腺癌的新基因報告。

The reports are based on statistical models known as polygenic risk scores, developed by 23andMe through our proprietary research database.

這些報告基於稱為多基因風險評分的統計模型，由 23andMe 透過我們的專有研究資料庫開發。

Our new cancer PRS reports that identify individuals with a higher likelihood of developing three of the most common cancers, the majority of whom are invisible to the healthcare system today.

我們的新癌症 PRS 報告識別出患有三種最常見癌症的可能性較高的個人，其中大多數癌症在當今的醫療保健系統中是看不見的。

Those individuals are then matched to the appropriate next steps through Health Action Plan.

然後透過健康行動計劃將這些人與適當的後續步驟相匹配。

By empowering more people with this knowledge, we can help make cancer screening, prevention, early detection, and treatment more effective.

透過讓更多人了解這些知識，我們可以幫助更有效地進行癌症篩檢、預防、早期檢測和治療。

We continue to work to make the membership platform even more engaging and useful for customers in tracking and impacting their personalized health journeys.

我們繼續努力使會員平台對客戶追蹤和影響他們的個人化健康旅程更具吸引力和有用性。

And I am pleased to report that our retention rates in Q4 improved from the previous three quarters, while membership revenue grew by 41% year over year to $20 million.

我很高興地向大家報告，第四季度我們的保留率較前三個季度有所提高，而會員收入同比增長 41% 至 2000 萬美元。

We are also prioritizing growth in our Lemonaid telehealth business and have begun to make meaningful strides while investing in the pipeline of future value drivers.

我們也優先考慮 Lemonaid 遠距醫療業務的成長，並在投資未來價值驅動因素的同時，已開始取得有意義的進展。

Over the past few quarters, the telehealth business has generated positive gross margins while decreasing advertising spend at the same time, leading to improvements in our bottom line.

在過去的幾個季度中，遠距醫療業務產生了正的毛利率，同時減少了廣告支出，從而提高了我們的利潤。

And we expect these trends to continue.

我們預計這些趨勢將持續下去。

In Q4, we launched over-the-counter options and quarterly plans, which are contributing to a meaningfully improved LTV.

在第四季度，我們推出了場外選擇權和季度計劃，這有助於顯著提高生命週期價值。

We also just announced the launch of one of the industry's leading fast acting ED medications in Stendra and expect to further add to our offerings in the coming year.

我們也剛宣布推出業界領先的速效 ED 藥物 Stendra，並預計來年進一步增加我們的產品。

Overall, I'm very optimistic about the future of our consumer business.

總的來說，我對我們消費業務的未來非常樂觀。

I believe we have only scratched the surface in delivering value and engaging with customers on their health journey.

我相信，在提供價值和與客戶的健康之旅互動方面，我們僅僅觸及了表面。

Moving to the research business, fiscal 2024 was a year of transition and learning for research.

轉向研究業務，2024 財年是研究轉型和學習的一年。

We were very pleased to announce GSK extended our agreement on a non-exclusive basis in October, showing the ongoing value in drug discovery and development of engaging with the world's largest reconfigurable DNA data engine.

我們非常高興地宣布 GSK 在 10 月以非排他性方式延長了我們的協議，展示了與世界上最大的可重建 DNA 數據引擎合作在藥物發現和開發方面的持續價值。

I'm extremely encouraged by the potential for this business and by the interest shown by potential partners throughout the drug discovery and development ecosystem and believe research will be a strong source of growth, profitability, and innovation as market conditions improve.

我對該業務的潛力以及整個藥物發現和開發生態系統中潛在合作夥伴所表現出的興趣感到非常鼓舞，並相信隨著市場條件的改善，研究將成為成長、獲利和創新的強大來源。

On the innovation front, we are excited by recent advances in deep learning that will eventually enable us to train DNA language models to study the grammar of the genome.

在創新方面，我們對深度學習的最新進展感到興奮，這些進展最終將使我們能夠訓練 DNA 語言模型來研究基因組的語法。

We expect these methods to rapidly grow our ability to predict disease and provide compelling personalized health recommendations for customers.

我們期望這些方法能夠快速提高我們預測疾病的能力，並為客戶提供令人信服的個人化健康建議。

Using our database and AI, we are building features with the goal of becoming the world's best at genetic health risk prediction to help customers understand the impact of their lifestyle and disease prevention. 23andMe is actively developing AI models to enhance both its consumer and data partnership businesses.

利用我們的資料庫和人工智慧，我們正在建立功能，目標是成為世界上最擅長遺傳健康風險預測的公司，以幫助客戶了解其生活方式和疾病預防的影響。 23andMe 正在積極開發人工智慧模型，以增強其消費者和數據合作夥伴業務。

In the short term, the company is utilizing existing large language models to potentially expand support for clinicians.

短期內，該公司正在利用現有的大型語言模型來擴大對臨床醫生的支持。

In the future, 23andMe hopes to launch various AI models aimed at improving services for both customers and biotech partners.

未來，23andMe希望推出各種人工智慧模型，旨在改善為客戶和生物技術合作夥伴提供的服務。

In the consumer space, this includes new predictive models for delivering personalized health recommendations more effectively.

在消費者領域，這包括用於更有效地提供個人化健康建議的新預測模型。

For biotech use cases, we are developing AI models that better predict the impact of genetic variation on cellular functions.

對於生物技術用例，我們正在開發人工智慧模型，以更好地預測遺傳變異對細胞功能的影響。

These initiatives utilize the company's unique database to accelerate target discovery and improve the probability of success in the drug discovery business.

這些舉措利用公司獨特的資料庫來加速標靶發現並提高藥物發現業務的成功機率。

With recent breakthroughs in AI, we believe we are well placed to enable customers to explore potential health outcomes, understand how their lifestyle choices, impact disease prevention, and surface new therapeutic opportunities for our partners.

隨著人工智慧領域最近的突破，我們相信我們有能力幫助客戶探索潛在的健康結果，了解他們的生活方式選擇如何影響疾病預防，並為我們的合作夥伴提供新的治療機會。

Moving to the therapeutics business, we made significant progress in fiscal 2024.

轉向治療業務，我們在 2024 財年取得了重大進展。

We are pleased to announce we've completed enrollment in the Phase 2A study for 23ME'610, and also recently announced, we've moved our second immuno-oncology asset 23ME’1473 into the clinic and begun dosing patients in Phase 1.

我們很高興地宣布，我們已經完成了23ME'610 2A 期研究的註冊，最近也宣布，我們已將我們的第二個免疫腫瘤學資產23ME-1473 轉移到臨床，並開始在1 期中給患者給藥。

For 610, we will be presenting safety, efficacy, and biomarker data from two of our Phase 2 cohorts at ASCO on June 1 and June 3.

對於 610，我們將於 6 月 1 日和 6 月 3 日在 ASCO 上展示兩個 2 期隊列的安全性、有效性和生物標記數據。

We expect to present additional data from the 610 Phase 2A at additional upcoming medical meetings, and data from the 1473 Phase 1 in calendar year 2025.

我們預計將在即將舉行的其他醫學會議上提供 610 2A 階段的更多數據，並在 2025 年提供 1473 1 期的數據。

As I look towards the future, I'm excited about the opportunities for 23andMe to grow and impact our customers.

展望未來，我對 23andMe 有機會發展並影響我們的客戶感到興奮。

We are a leader in genetic and data-based health, and we continue to innovate and lead.

我們是遺傳和基於數據的健康領域的領導者，我們不斷創新和領先。

The interest in data and AI, combined with our world-leading genetic and phenotypic data engine portend amazing opportunities for our research business, and in therapeutics, we are incredibly excited by the potential of our clinical assets and future value they may bring to patients and to the company.

對數據和人工智慧的興趣，加上我們世界領先的遺傳和表型數據引擎，預示著我們的研究業務和治療學方面的巨大機遇，我們對我們的臨床資產的潛力以及它們可能為患者和患者帶來的未來價值感到非常興奮。

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，讓他審查我們本季的財務表現。

Thank you, Anne.

謝謝你，安妮。

I'd like to reiterate and excitement about the future of precision healthcare at 23andMe, and I'm proud of our ability to execute while maintaining cost discipline amid our shift toward a more sustainable operating profile.

我想重申對 23andMe 精準醫療保健的未來感到興奮，並且我對我們在轉向更永續的營運模式的同時保持成本紀律的執行能力感到自豪。

Revenue for the quarter and the year was $64 million and $220 million, respectively, representing a 31% decrease and a 27% decrease, respectively, over the same periods in the prior year.

本季和全年營收分別為 6,400 萬美元和 2.2 億美元，較上年同期分別下降 31% 和 27%。

Similar to the last few quarters, the year-over-year decrease in revenue was primarily due to the conclusion of the exclusive discovery term under our GSK collaboration in July as well as lower consumer services revenue in our PGS kit and telehealth businesses.

與過去幾季類似，營收年減主要是由於我們與葛蘭素史克合作的獨家發現期限於 7 月結束，以及我們的 PGS 試劑盒和遠距醫療業務的消費者服務收入下降。

The decrease in consumer revenue was driven by our focus on marketing efficiency and membership sales, both of which have resulted in improved unit economics and customer lifetime value but lower sales across the consumer offerings.

消費者收入的下降是由於我們對行銷效率和會員銷售的關注，這兩者都提高了單位經濟效益和客戶終身價值，但整個消費者產品的銷售額下降。

We expect that these decisions will continue providing benefits to our margins over the short and longer term.

我們預計這些決定將繼續為我們的短期和長期利潤帶來好處。

These decreases were partially offset by continued growth in our subscription services.

這些下降被我們訂閱服務的持續成長部分抵消。

Looking at the composition of our revenue, consumer services revenue represented 99% and 92% of total revenue for the quarter and the year, respectively.

從我們的收入組成來看，消費者服務收入分別佔本季和全年總收入的99%和92%。

And research services revenue, which was primarily derived from our other research partners, accounted for approximately 1% and 8% of total revenue, respectively, for those same periods.

研究服務收入主要來自我們的其他研究夥伴，同期分別佔總收入約 1% 和 8%。

As a reminder, the new GSK deal license announced in Q3 is expected to have minimal impact from this year's results with the majority landing in fiscal year '25, given the terms of the agreement.

需要提醒的是，鑑於協議條款，葛蘭素史克第三季宣布的新交易許可預計對今年業績的影響很小，大部分交易將在 25 財年達成。

For gross profit for the fourth quarter and the year was $27 million and $99 million, respectively, representing a 32% decrease and 26% decrease, respectively, over the same periods in the prior year.

第四季和全年毛利分別為2,700萬美元和9,900萬美元，較上年同期分別下降32%和26%。

The decreases were driven primarily by the decrease in research services revenue, while subscription revenue, higher ASPs on our PGS kits, and improved telehealth margins following the August '23 disposition of Lemonaid Heath Limited in the UK.

下降的主要原因是研究服務收入的下降、訂閱收入的下降、我們的 PGS 套件的平均售價提高以及 23 年 8 月處置英國 Lemonaid Heath Limited 後遠距醫療利潤率的提高。

Turning to our expenses, total operating expenses for the quarter and the year were $239 million and $781 million, respectively, compared to $109 million and $459 million for the same periods in the prior year.

說到我們的費用，本季和全年的總營運費用分別為 2.39 億美元和 7.81 億美元，而去年同期為 1.09 億美元和 4.59 億美元。

The increase in operating expenses for the quarter and the year was primarily due to $153 million and $352 million in non-cash goodwill impairment charges taken in the quarter and the year respectively, and was partially offset by lower personnel-related expenses following workforce reductions in the prior quarters, and the disposition of the UK entity, along with lower therapeutics related R&D spend due to a significant reduction from the GSK collaboration programs.

本季和本年度營運費用的增加主要是由於本季和本年度分別提列了 1.53 億美元和 3.52 億美元的非現金商譽減損費用，但部分被前幾季的成長、英國實體的處置，以及由於葛蘭素史克合作計畫大幅減少而導致治療相關研發支出減少。

Looking at the bottom line, net loss for the quarter and the year were $209 million and $667 million, respectively, compared to net losses for the same periods in the prior year of $64 million and $312 million.

從利潤來看，本季和全年的淨虧損分別為 2.09 億美元和 6.67 億美元，而上年同期的淨虧損為 6,400 萬美元和 3.12 億美元。

The increase in fourth quarter and full year net loss was driven mainly by the goodwill impairment charge mentioned previously.

第四季和全年淨虧損的增加主要是由前面提到的商譽減損費用所推動的。

I would also like to point out that the full year fiscal '24 results are preliminary.

我還想指出，24 財年全年結果是初步的。

We are still completing our assessment of our impairment review of goodwill and long-lived assets and our impairment expenses undergoing further evaluation.

我們仍在完成對商譽和長期資產的減損審查以及減損費用的進一步評估。

This could result in an adjustment to the impairment recorded in our operating expenses and impact on net loss.

這可能會導致我們的營運費用中記錄的減損調整以及對淨虧損的影響。

However, it is important to point out that any adjustment would be a non-cash item and reflected in our annual report on Form 10-K for the year ended March 31, 2024.

然而，需要指出的是，任何調整都將是非現金項目，並反映在我們截至 2024 年 3 月 31 日的年度 10-K 表格年度報告中。

Next, our adjusted EBITDA.

接下來是我們調整後的 EBITDA。

For details on how we define adjusted EBITDA as well as the corresponding reconciliations to GAAP, please see our earnings release.

有關我們如何定義調整後 EBITDA 以及相應的 GAAP 調整的詳細信息，請參閱我們的收益發布。

Total adjusted EBITDA deficit for the fourth quarter was $33 million compared to a $39 million deficit for the same period in the prior year.

第四季調整後 EBITDA 赤字總額為 3,300 萬美元，而上年同期赤字為 3,900 萬美元。

Total adjusted EBITDA deficit for the year was $176 million compared to a $161 million deficit for the same period in the prior year.

今年調整後 EBITDA 赤字總額為 1.76 億美元，而去年同期赤字為 1.61 億美元。

Despite the decline in revenue, we made meaningful progress in managing our expenses and we ended the year with $216 million in cash and cash equivalents compared to $387 million as of March 31, 2023.

儘管收入下降，我們在管理開支方面取得了有意義的進展，截至年底，我們的現金和現金等價物為 2.16 億美元，而截至 2023 年 3 月 31 日為 3.87 億美元。

We continue to be judicious with our cash usage and believe that the current level of cash supports 23andMe plans for targeted investments and high ROI growth initiatives.

我們繼續審慎地使用現金，並相信目前的現金水準支持 23andMe 計畫的針對性投資和高投資報酬率成長計畫。

We also announced on May 9 that the company received a notification letter from Nasdaq notifying the company that it had been granted an additional 180 days or until November 4, 2024, to regain compliance with the minimum bid requirement for continued listing on the Nasdaq Capital Markets.

我們也於5月9日宣布，公司收到納斯達克的通知函，通知公司已獲得額外180天或直至2024年11月4日的期限，以重新遵守在納斯達克資本市場繼續上市的最低出價要求。

Turning to guidance, in light of the previously mentioned special committee review of strategic alternatives, the company is not providing financial guidance at this time.

談到指導，鑑於前面提到的特別委員會對策略替代方案的審查，該公司目前不提供財務指導。

Wrapping up, we are pleased with the company's strategic progress and are looking forward to an exciting year ahead.

最後，我們對公司的策略進展感到滿意，並期待著令人興奮的未來一年。

We remain focused on realizing our vision while maintaining operating discipline and a focus on high-return investments.

我們仍然專注於實現我們的願景，同時保持營運紀律並專注於高回報投資。

I'm incredibly optimistic about the future of the company and our ability to help people access, understand, and benefit from the human genome.

我對公司的未來以及我們幫助人們獲取、理解人類基因組並從中受益的能力非常樂觀。

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

說到這裡，讓我們提出問題。

(Operator Instructions) David Lebowitz, Citi.

（操作員指示）David Lebowitz，花旗銀行。

Thank you very much for taking my question.

非常感謝您回答我的問題。

Would you be able to help frame expectations for the Phase 2 update that's coming into ASCO?

您能否協助建立對即將進入 ASCO 的第 2 階段更新的預期？

Yeah, let me hand it over to Jennifer.

是的，讓我把它交給珍妮佛。

Yeah, we're excited to be able to present the first efficacy, safety, and biomarker data on two of our cohorts, the neuroendocrine and ovarian cohorts, which involved more quickly last year.

是的，我們很高興能夠提供關於我們的兩個隊列（神經內分泌隊列和卵巢隊列）的第一個療效、安全性和生物標記數據，這兩個隊列去年的參與速度更快。

That data is embargoed until the presentation of the abstracts just before the study starts by just before the conference starts.

在研究開始前和會議開始前提交摘要之前，這些數據都是禁止的。

But we have released the titles and the timings, and we will present the posters on our investor website and the therapeutics website when they become available on the day of presentation.

但我們已經發布了標題和時間表，當海報發布當天可用時，我們將在我們的投資者網站和治療網站上發布海報。

Anne, thank you for that.

安妮，謝謝你。

And in terms of product mix at present and going forward, what do you see as the biggest drivers of margin expansion as the year proceeds?

就目前和未來的產品組合而言，您認為今年利潤成長的最大驅動因素是什麼？

Joe, do you want to take that?

喬，你想接受這個嗎？

Sure.

當然。

You know, for us, it is really focused on membership revenue.

你知道，對我們來說，它真正關注的是會員收入。

We've really seen improvements in our subscription revenue this year and as we increased the price from $29 to [$69], I know, on our 23andMe+ memberships, we've continued to see great retention rates, you know, and people really -- and we're continuing to add value in that subscription as well.

今年我們的訂閱收入確實有所改善，隨著我們將價格從29 美元提高到[69 美元]，我知道，我們的23andMe+ 會員資格，我們繼續看到很高的保留率，你知道，人們真的- - 我們也將繼續增加該訂閱的價值。

So that recurring revenue will help us in its high margin dollars we added to our bottom line.

因此，經常性收入將有助於我們增加利潤，增加高利潤。

At what point do you think you'll have a fair degree of, I guess, visibility and the extent that the customer base is proceeding post the price increases?

我想，您認為什麼時候您將擁有相當程度的知名度以及客戶群在價格上漲後繼續前進的程度？

Sorry, say again?

對不起，再說一次？

Can you explain a little more?

你能再解釋一下嗎？

I'm just asking about at what point do you think you have a fair degree of visibility and retention of customers post the price increases?

我只是想問一下，您認為在價格上漲後，您在什麼時候擁有相當程度的知名度和客戶保留率？

Basically, we increased prices in mid 2024.

基本上，我們在 2024 年中期提高了價格。

So we're seeing people renew at basically coming up in -- basically from May forward.

所以我們看到人們基本上是從五月開始更新的。

So I think we'll start to see these retention rates going forward into the next quarter and even beyond.

因此，我認為我們將開始看到這些保留率持續到下個季度甚至更長。

Got it.

知道了。

And I guess, final question here and then I'll pass it on, how's the rollout of Total Health going at this point?

我想，最後一個問題是，然後我會轉達它，目前 Total Health 的推出進展如何？

The rollout on Total Health is one we haven't disclosed details on, but I think the thing to look for is really about when we launch this to existing customers, which we will launch in that Q3 timeframe.

Total Health 的推出我們尚未透露細節，但我認為真正需要關注的是我們何時向現有客戶推出此功能，我們將在第三季度的時間範圍內推出。

Got it.

知道了。

Thank you very much for taking my question.

非常感謝您回答我的問題。

-- just last quarter -- I should be clear about.

——就在上個季度——我應該清楚這一點。

Excellent.

出色的。

Thank you.

謝謝。

Steven Mah, TD Cowen.

史蒂文·馬，TD·考恩。

Great.

偉大的。

Thanks for taking the questions.

感謝您提出問題。

Maybe a follow-up question on Total Health, and the launch of existing customers, you said it's going to be in the third quarter -- you're talking about calendar year quarter, right?

也許是關於全面健康以及現有客戶推出的後續問題，您說這將在第三季度進行 - 您談論的是日曆年季度，對吧？

Yeah, I'm talking about calendar year.

是的，我說的是日曆年。

Yeah.

是的。

And then maybe can you outline what still needs to be done before you roll out to existing customers?

然後，也許您可以概述一下在向現有客戶推出之前還需要做什麼？

Just kind of curious, I think before you had disclosed it was going to be rolled out to existing customers in spring.

只是有點好奇，我想在您透露它將在春季向現有客戶推出之前。

Yeah, it's really -- it's an engineering issue.

是的，這確實是一個工程問題。

It's just about building it out and enabling that upgrade path.

這只是關於構建它並啟用升級路徑。

So we just had our hands full with other priorities.

所以我們忙於處理其他優先事項。

So it will be prioritized starting now through summer with that kind -- with the rollout to existing customers in Q3.

因此，從現在到夏季，它將優先考慮這種情況，並在第三季向現有客戶推出。

Okay.

好的。

Thanks for that.

感謝那。

And last one for me, appreciate your comments around managing the cash burn, but how should we think about the cash burn going forward, especially when you're funding the high-value therapeutics business?

最後一點，感謝您對管理現金消耗的評論，但我們應該如何考慮未來的現金消耗，特別是當您為高價值治療業務提供資金時？

Just how should we think about those two things, given funding clinical trials is somewhat costly?

鑑於資助臨床試驗的成本有些昂貴，我們該如何考慮這兩件事？

Thank you.

謝謝。

Sure.

當然。

So as mentioned, we've continued to reduce expenses in our consumer and research segment through reductions in force and better cost management, which we announced last year.

如前所述，我們去年宣布透過減少人力和更好的成本管理來繼續減少消費者和研究部門的開支。

And we're committed to ME'610 to funding the Phase 2A, working all the study, and for 1473 to be Phase 1 portion of the clinical trial.

我們承諾 ME'610 為 2A 期提供資金，進行所有研究，並為 1473 提供臨床試驗的 1 期部分。

For us, it is really having cost discipline in the company and really making sure that we reduce our cash burn and extend our cash runway to the extent possible.

對我們來說，這確實是公司內部的成本紀律，並真正確保我們減少現金消耗並盡可能擴大我們的現金跑道。

Okay.

好的。

Thank you.

謝謝。

Thank you.

謝謝。

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

現在我將把它轉給 Ian 詢問任何進一步的問題。

Yeah, thank you.

是的，謝謝。

I'll read a few of the top shareholder questions from our Say Technology's Q&A platform.

我將從我們的 Say Technology 問答平台上閱讀一些主要股東問題。

I would just like to acknowledge that the top up voted question was will the company be going private?

我只想承認，最高投票的問題是公司會私有化嗎？

And as Joe mentioned at the beginning of the call, we can't comment any further beyond what we've already said.

正如喬在電話會議開始時提到的那樣，除了我們已經說過的內容之外，我們無法進一步發表評論。

So I just wanted to acknowledge that, but we don't have any further comments.

所以我只是想承認這一點，但我們沒有任何進一步的評論。

Next question would be for Anne, are there any plans to team up further with pharmaceutical companies to utilize the data you've collected to treat or to create any products or use of data in any other ways to create value.

下一個問題是安妮，是否有計劃進一步與製藥公司合作，利用您收集的數據來治療或創建任何產品或以任何其他方式使用數據來創造價值。

Absolutely.

絕對地。

And that is definitely a priority for the company to do partnerships with the therapeutics development industry to make sure that we're leveraging this data to help accelerate the development of therapeutical discoveries and development.

這絕對是公司與治療藥物開發產業建立合作關係的首要任務，以確保我們利用這些數據來幫助加速治療藥物的發現和開發。

So you should definitely see we will continue to engage in those conversations.

所以你肯定會看到我們將繼續參與這些對話。

We'll hope to have deals.

我們希望能達成交易。

We have been, you know, sort of understanding and analyzing what is that best use for us to do these types of partnerships.

你知道，我們一直在理解和分析什麼是我們建立這類合作關係的最佳用途。

I just want to also highlight It's definitely been an environment where the entire industry has been cutting costs and we are quite happy with the interest that we've had and we're optimistic about the ability for us to do deals.

我還想強調，這絕對是一個整個行業都在削減成本的環境，我們對我們所擁有的興趣感到非常滿意，並且我們對我們進行交易的能力感到樂觀。

Great.

偉大的。

Another one for Anne, kind of more of a general one.

另一張是給安妮的，比較通用。

What are the things that investors can look towards that are sort of the most exciting about the future of where the company is going?

投資人可以關注哪些對公司未來發展最令人興奮的事？

Great question.

很好的問題。

So three areas, I think, that people should really be thinking about, one, this opportunity for us to be integrating Lemonaid and really develop that consumer-focused wellness prevention service that is founded on your genomics is really exciting.

因此，我認為人們應該真正考慮三個領域，第一，我們有機會整合 Lemonaid 並真正開發基於基因組學的以消費者為中心的健康預防服務，這真的令人興奮。

And this is an opportunity for people to learn about their genome, get blood, get access to advisers, healthcare professionals who are trained on genomics to look at all the various data sources and understand what are the things they can do to be as healthy as possible.

這是一個機會，讓人們了解自己的基因組、獲取血液、獲得顧問和接受過基因組學培訓的醫療保健專業人員的幫助，以查看所有不同的數據源，並了解他們可以採取哪些措施來保持與正常人一樣的健康。

I think we've seen a real enthusiasm in the wellness space in general.

我認為我們總體上看到了健康領域的真正熱情。

And I think that we have this opportunity to create a really affordable, impactful service for customers.

我認為我們有機會為客戶創造真正負擔得起的、有影響力的服務。

Total Health is a fabulous product.

Total Health 是一款非常棒的產品。

I encourage everybody to try it, if you have not.

我鼓勵大家嘗試一下，如果你還沒有的話。

It really gives you access to the 23andMe Premium plus the entire exome plus access to blood, care providers, it really, I think, shows you sort of the future of where healthcare can go.

它確實讓您可以訪問 23andMe Premium 加上整個外顯子組，再加上血液、護理提供者，我認為，它確實向您展示了醫療保健的未來發展方向。

Second, obviously, we've talked about the database and the opportunities with the database.

其次，顯然，我們已經討論了資料庫以及資料庫帶來的機會。

It's an exciting world right now also because it's the world of LLM and the opportunity for us to leverage all this data in LLM models.

現在這是一個令人興奮的世界，因為這是法學碩士的世界，也是我們在法學碩士模型中利用所有這些數據的機會。

It's really the first time where we've seen these tools are able to manage the amount of data that we have.

這確實是我們第一次看到這些工具能夠管理我們擁有的資料量。

So we see a lot of opportunity there, both on the therapeutic side as well as on the consumer side.

因此，我們看到了許多機會，無論是在治療方面還是在消費者方面。

And last, obviously, most importantly, not most importantly, but one of our favorites is therapeutics, with our therapeutic programs.

最後，顯然，最重要的，不是最重要的，但我們最喜歡的之一是治療，以及我們的治療計劃。

And it is a real privilege for us to be able to develop therapeutics.

能夠開發治療方法對我們來說是一種真正的榮幸。

And be impacting lives the way we are.

並以我們現在的方式影響生活。

So I am excited to see the data that comes out at ASCO and look forward to more data that's going to come out after, but developing therapies from all of this data and really impacting human lives is incredibly exciting for us.

因此，我很高興看到 ASCO 公佈的數據，並期待之後公佈更多數據，但根據所有這些數據開發療法並真正影響人類生活對我們來說非常令人興奮。

Thank you.

謝謝。

Next one is for Joe. Now that you've received 180-day extension from Nasdaq, what are the plans to comply with this change of plan?

下一張是給喬的。既然您已收到納斯達克 180 天的延期，那麼您計劃如何應對這項計劃變更？

We're pretty focused on improving the stock price organically through continued execution and operating momentum.

我們非常注重透過持續的執行和營運動力來有機地提高股價。

And we also mentioned that we would consider a reverse stock split under the right circumstances later in the year if we were able to get the stock price over $1 per share, noting that any reverse stocks would require Board and shareholder approval.

我們還提到，如果我們能夠使股價超過每股 1 美元，我們將在今年稍後在適當的情況下考慮反向股票分割，並指出任何反向股票都需要董事會和股東批准。

Great.

偉大的。

Thank you.

謝謝。

Last one.

最後一個。

Anne, what plans beyond or maybe you can just reiterate a little bit what plans are to leverage our data with artificial intelligence model?

安妮，除此之外還有什麼計劃，或者您可以重申一下透過人工智慧模型利用我們的數據的計劃是什麼？

Yeah.

是的。

I think it's a little bit of what I talked about before.

我想這就是我之前談到的一些內容。

I think that there is a really exciting opportunity for building out models and risk prediction.

我認為建立模型和風險預測有一個非常令人興奮的機會。

And by understanding -- by collecting all this data, understanding it all, looking at events, helping consumers understand what their risks are and predicting what that next highest risk event is for them is one really exciting opportunity as well as in therapeutics is helping pick what is the right target, how is the right way to develop a drug.

透過理解——透過收集所有這些數據，理解這一切，觀察事件，幫助消費者了解他們的風險是什麼，並預測下一個最高風險事件對他們來說是什麼，這是一個真正令人興奮的機會，在治療學方面也有助於選擇什麼是正確的靶點，如何開發藥物才是正確的方法。

Knowing that you can convert all of this data into either a consumer application or a therapeutic's application is very exciting for us.

知道您可以將所有這些數據轉換為消費者應用程式或治療應用程式對我們來說非常令人興奮。

And those are the types of partnerships that we are focused on.

這些就是我們關注的合作夥伴類型。

Thanks for joining us.

感謝您加入我們。

This concludes today's conference call.

今天的電話會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。

Everyone have a great day.

每個人都度過了愉快的一天。