23andMe to Layoff 75 Employees in 9% Workforce Reduction

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23ANDME HOLDING ($NASDAQ:ME) is a leading consumer genetics and research company that gives individuals the ability to access and understand their own genetic information. The layoffs are scheduled to take place in the next few months, and affected employees will receive severance packages. The company also believes that this decision will improve its long-term potential to continue delivering meaningful insights and discoveries to its customers.

Analysis

At GoodWhale, we recently conducted an analysis of 23ANDME HOLDING‘s fundamentals. According to our Star Chart, the company has an intermediate health score of 6/10 considering its cashflows and debt, indicating that it is likely to sustain future operations in times of crisis. We classify 23ANDME HOLDING as ‘elephant’, a type of company that is rich in assets after deducting off liabilities. Given 23ANDME HOLDING’s strong asset base, investors looking for a stable, low-risk investment may find this company attractive. However, investors looking for dividend growth and better profitability may want to look elsewhere as 23ANDME HOLDING is weaker in these areas. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for 23andme Holding. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for 23andme Holding. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for 23andme Holding. More…

Key Ratios Snapshot

Some of the financial key ratios for 23andme Holding are shown below. More…

Peers

The company offers a range of tests, including those for ancestry, health, and wellness. Its competitors include IQVIA Holdings Inc, Illumina Inc, and Avricore Health Inc.

– IQVIA Holdings Inc ($NYSE:IQV)

In 2022, IQVIA Holdings Inc had a market capitalization of $40.44 billion and a return on equity of 21.52%. The company provides data, information and technology solutions that help customers drive healthcare insights and solutions.

– Illumina Inc ($NASDAQ:ILMN)

Illumina Inc has a market cap of 34.93B as of 2022, a Return on Equity of -29.49%. The company is a provider of sequencing and array-based solutions for genetic analysis. The company’s products are used by researchers, physicians, patients and parents to make better decisions about health, agriculture, pharmaceuticals, research and many other areas.

– Avricore Health Inc ($TSXV:AVCR)

Avricore Health Inc is a Canadian biotechnology company that develops and commercializes products for the early detection and prevention of chronic disease. The company has a market cap of 25.4 million as of 2022 and a return on equity of -46.21%. Avricore’s products are based on its proprietary technology, which uses a combination of blood tests and genetic tests to identify individuals at risk for developing chronic diseases such as heart disease, stroke, and cancer.

Summary

23andMe Holding is a consumer genetic testing and research company. The company saw its stock price dip recently after announcing a restructuring and workforce reduction of around 9%, or 75 employees. Despite the setback, 23andMe has seen strong market performance over the past year. Analysts have given the stock a consensus rating of ‘overweight’, with a projected target price of nearly double the current market price.

This suggests that investors remain positive on 23andMe’s business prospects and long-term growth. With recent financial results showing continued strong revenue growth, 23andMe appears to be well-positioned to capitalize on the growing consumer demand for home-based genetic testing and research.