23andMe Holding Co. (NASDAQ:ME) Q2 2024 Earnings Call Transcript

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Ian Cooney: Thank you, Jennifer. This one has already been asked in a way, but it was a top question online, so I’ll ask it again, maybe for Anne. While the recent security incidents of customer accounts affect future business opportunities in any way?

Anne Wojcicki : A couple of things here. I want to just point out how we did just sign a new partnership accessing the 23andMe data set being able to leverage that for drug discovery with a partner, GSK, who’s been, obviously, a long-standing partner for us. So I think that it is something that obviously we have notified individuals about. We have commented on I think it’s very important about how we react. As you can see, we also have implemented 2-factor authentication. So I think that we are learning, we are taking the necessary steps forward to adapt to an environment where things like credential stuffing is happening more and more. We are being very proactive about how we are thinking about data and security. And I think you can see based on collaborations that we are entering now that there is still enthusiasm.

And I think based on our BD calendar and the meetings that we’re doing, there is absolute enthusiasm for the projects you’re doing. There is not — the incident has not diminished the opportunities for genetics to still really revolutionize health care for consumers or for the industry.

Ian Cooney: Great. Last one, it is for Anne. You’ve recently announced another subscription business and the consumer business. Do you expect to continue to move in that subscription model direction, or how should we think about the future of the consumer business?

Anne Wojcicki : The future of the consumer business is absolutely about subscription. And the reason for that is that we see from our customers and the behavior we’ve had over the last 17 years is that our customers are eager to get more, they’re eager to engage, and they’re eager to keep learning about themselves. So for us to be able to financially support that kind of innovation and additional data that our customers are looking for, we need to evolve from a onetime payment to a subscription model. And I think that both with the needs of the company is actually having a sustainable consumer business or rather a thriving consumer business as well as hit our customer goals of being able to get affordable direct access to meaningful information but continuously seeing it innovate and evolve and continuously enabling themselves to learn more through their genome as well as the additional data that we provide back.

So yes, the future is subscription, and we’re very enthused about 23andMe Plus as well as Total Health offerings. And I think you can look to us to continue to put more products in the subscription and add more features there.

Operator: And thank you all for participating and joining us. This concludes today’s conference call, and you may now disconnect. Everyone, have a great day.

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