23andMe Holding Co.

Good morning and welcome to the 23andMe's fiscal year 2022 fourth quarter and year-end financial results conference call. As a reminder, this call is being recorded at this time of participants on listen-only mode. After the prepared remarks, there will be a question and answer session. I would now like to turn the call over to Wade Walk, Vice President of Investor Relations, to lead off the call. Thank you. Please go ahead.

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 quarter and fiscal year. A replay of today's webcast will also be available on our website for a limited time within 24 hours after the event. 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 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 reconciliation to US GAAP may be found in our earnings release. Joining us on today's call are Ann Wojcicki, our chief executive officer and co-founder, Kenneth Hillen, our chief therapeutics officer, and Steve Schuch, our chief financial officer. And now I'd like to turn the call over to Ann.

Thank you, Wade. We are excited about the steps we have taken over the last year and specifically over the last several months to begin to integrate genetics into everyday care with the ultimate goal of making personalized healthcare a reality. One of the unique aspects of our approach is that we will be able to offer people the ability to access and learn about their DNA and then take proactive preventative steps to manage their health and well-being through guidance from our genetically trained lemonade clinicians. Nearly 20 years ago, as the Human Genome Project was being completed, leaders at the time predicted that genetics would have the potential to transform how we diagnose, treat, and prevent all human disease. That vision still exists today, but for a number of reasons, such as lack of reimbursement, education, and training, genetics is not widely adopted into care. We have the opportunity to partner with customers in the traditional healthcare world to use genetic data to truly personalize care. We are taking this next step because it is the logical progression of our vision to help people access, understand, and benefit from the human genome. We have delivered on the first two aspects of our vision, accessibility and understanding, by now offering over 60 health reports in our personal genome service. We've also grown our customer base to 12.8 million genotype customers. Our new focus strives to deliver on the third aspect of our vision, to help people benefit from the human genome. We know there is a huge unmet need for preventative healthcare. It has been reported that 40% of deaths from the five leading causes in the U.S. are preventable. Yet accessibility to preventative care remains a problem for most people. We believe that with our first-of-its-kind genomic health service focused on genetics and personalized health data, we have an opportunity to fill this unmet need and improve people's lives. I think everyone knows that healthcare is not personalized today. In most cases, it's a one-size-fits-all approach. For example, we see guidelines for cancer screening that are primarily based on age, but rarely based on an individual's genetic risk. Because genetic testing is very rarely used outside of prenatal and cancer care, most people don't know their genetic risk factors, much less what to do with that information. In addition, more often than not, insurance presents a barrier to accessing genetic testing. We often know that our customers have had problems translating information about their genetic health risks to tangible health benefits and outcomes. Often they take our genetic health reports to their primary care physicians who largely don't know how to interpret or act on the information. Our efforts on the consumer side will now be focused on building a bridge between health risk awareness and health risk and disease management with our new genomic health services. Our plan is to support patients from the first touchpoint through a continuum of care, being the trusted guide. Over the next few years, we plan to concentrate on the direct-to-consumer self-pay market. Once we establish ourselves in the DTC market, then we can look into growing into other channels. This effort started with our acquisition and integration of Lemonade Health and their telehealth and digital pharmacy services. Our next steps are to roll out our new genomic health services. Just this month, we started data testing a genetic report consultation service with clinicians who are trained in genetic health concepts. This service provides customers with the opportunity to have genetic report consultations on three of our genetic health risk reports. These consultations can help customers better understand the potential impact of their genetic risk profile and discuss the next steps. This is just the start of our effort in this area, and I'm excited about the broader suite of services we plan to introduce later this year. A few notable milestones on the consumer side include the recent expansion of our 23andMe Plus membership service to customers in the UK and Canada. This service offers insights and features to give members even more actionable information to live healthier lives. We also launched three new reports for customers subscribed to 23andMe Plus bringing the total reports available to over 60. The new reports released this last quarter included skin cancer, diverticulitis report, irritable bowel syndrome report. On the therapeutic side of our business, we believe we have an advantage in drug target validation and drug development because we have the world's largest crowd source platform for genetic research. Drug development is fraught with failure. About 90% of drugs in development fail to become commercial medicines. However, studies have shown that drugs developed on genetically validated targets are twice as likely to succeed, and all of our targets are validated using our unique genetic database containing tens of thousands of genetic associations with disease phenotypes. Our research platform has generated more than 200 publications on the genetic underpinnings of a wide range of diseases, conditions, and traits, and we've used this research platform to create a pipeline of more than 50 programs with two now in Phase I clinical trials. We believe that the therapeutics which come out of our discovery engine will eventually play a significant role in helping people benefit from the human genome. With the combination of our personal genome service, our new genomic health services, and our efforts to develop new therapeutics based on genetically validated targets, We believe we are poised to accomplish the full measure of our mission. I now turn the call over to Kenneth to discuss our therapeutics program.