23andMe's Q3 Topline Beat Estimates On Boost From Telehealth Business Acquisition

23andMe Holding Co (NASDAQ:ME) has updated its FY22 guidance following the inclusion of telehealth operations into its consumer business.

The Company closed the acquisition of Lemonaid Health Inc, an on-demand platform for accessing medical care and pharmacy services online, for $400 million.
The Company now expects FY22 sales of $268 - $278 million (consensus of $257.66 million), up from previous guidance of $250 - $260 million.
The projected range for full-year net loss has decreased from $210 - $225 million to $205 - $220 million.
23andMe forecast FY22 adjusted EBITDA loss of $148 to $163 million, compared to the prior guidance of $143 to $158 million.
Related: 23andMe Pivoting To Clinical Research: Could That Lead To A Turnaround For The Stock?
For Q3 FY22, sales increased 2.6% to $56.9 million, beating the consensus of $54.30 million.
Revenues increased primarily due to the addition of two months of Telehealth business revenue from the recent acquisition of Lemonaid Health and higher subscription revenue.
The Company posted EPS of $(0.21), compared to $(0.46) a year ago, missing the consensus of $(0.16).
23andMe ended Q3 with cash of $586 million.
Credit Suisse maintained an Outperform rating on 23andMe and lowered the price target to $11.
Price Action: ME shares closed 7.04% lower at $4.62 during the market session on the last check Friday.

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