23andMe Holding Co (23andMe Holding Co) Gross Margin % : 44.55% (As of Dec. 2023)

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What is 23andMe Holding Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. 23andMe Holding Co's Gross Profit for the three months ended in Dec. 2023 was $19.9 Mil. 23andMe Holding Co's Revenue for the three months ended in Dec. 2023 was $44.7 Mil. Therefore, 23andMe Holding Co's Gross Margin % for the quarter that ended in Dec. 2023 was 44.55%.

The historical rank and industry rank for 23andMe Holding Co's Gross Margin % or its related term are showing as below:

ME' s Gross Margin % Range Over the Past 10 Years
Min: 44.91 Med: 46.48 Max: 48.9
Current: 45.3

During the past 4 years, the highest Gross Margin % of 23andMe Holding Co was 48.90%. The lowest was 44.91%. And the median was 46.48%.

ME's Gross Margin % is ranked worse than
51.39% of 216 companies
in the Medical Diagnostics & Research industry
Industry Median: 45.595 vs ME: 45.30

23andMe Holding Co had a gross margin of 44.55% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for 23andMe Holding Co was 0.00% per year.

23andMe Holding Co Gross Margin % Historical Data

The historical data trend for 23andMe Holding Co's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

23andMe Holding Co Gross Margin % Chart

23andMe Holding Co Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Gross Margin %

44.99

47.97

48.90

44.91

23andMe Holding Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial											45.94	43.28	50.41	43.46	44.55

Competitive Comparison of 23andMe Holding Co's Gross Margin %

For the Diagnostics & Research subindustry, 23andMe Holding Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

23andMe Holding Co's Gross Margin % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, 23andMe Holding Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where 23andMe Holding Co's Gross Margin % falls into.

23andMe Holding Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

23andMe Holding Co's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	134.5	/	299.489
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(299.489 - 164.993)	/	299.489
	=	44.91 %

23andMe Holding Co's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	19.9	/	44.747
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(44.747 - 24.811)	/	44.747
	=	44.55 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

23andMe Holding Co (NAS:ME) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

23andMe Holding Co had a gross margin of 44.55% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

23andMe Holding Co Gross Margin % Related Terms

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23andMe Holding Co (23andMe Holding Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » 23andMe Holding Co (NAS:ME) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

349 Oyster Point Boulevard, South San Francisco, CA, USA, 94080

Website

https://www.23andme.com

23andMe Holding Co is a consumer-facing healthcare technology company, primarily involved in the sale of direct-to-consumer personal genome services, or PGS, through DNA collection kits shipped via mail. The company provides users access to reports summarizing estimated genetic ancestry breakdown, phenotypic trait reports, and various health predisposition and disease carrier reports. Its segment include Consumer and Research Services and Therapeutics. The company generates maximum revenue from the Consumer and Research Services segment.

Executives

Kathy L Hibbs	officer: See Remarks	C/O VIROLOGIC, 345 OYSTER POINT BLVD, SOUTH SAN FRANCISCO CA 94080
William G Richards	officer: Head of Therapeutics Discovery	160 KELLY AVE, HALF MOON BAY CA 94019
Richard H Scheller	director	C/O GENENTECH INC, 1 DNA WAY MS 49, SOUTH SAN FRANCISCO CA 94080-4990
Joseph Anthony Selsavage	officer: Interim CFO	490 HILL STREET, APT 5, SAN FRANCISCO CA 94114
Kenneth J. Hillan	officer: Head of Therapeutics	C/O ACHAOGEN, INC., 7000 SHORELINE COURT, SUITE 371, SOUTH SAN FRANCISCO CA 94080
Evan Lovell	director, officer: Chief Financial Officer	27 SOUTH PARK STREET, SUITE 200, SAN FRANCISCO CA 94107
Hernandez Sandra R Md	director	BLACKBAUD INC, 2000 DANIEL ISLAND DRIVE, CHARLESTON SC 29492
Paul D Johnson	officer: VP, General Manager-Consumer	440 N BARRANCA AVE #3550, COVINA CA 91723
Tracy Keim	officer: See Remarks	6107 ARROWROOT LANE, RANCHO PALOS VERDES CA 90275
Steven Lemon	officer: Vice President, Engineering	1020 CHERRY AVENUE, SAN JOSE CA 95125
Steven J Schoch	officer: See Remarks	2748 BUSH STREET, SAN FRANCISCO CA 94115
Frederick Mark Kohler	officer: Vice President, People	1004 UNION STREET, ALAMEDA CA 94501
Sequoia Capital Global Growth Ii Principals Fund, L.p.	10 percent owner	2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Abeec 2.0, Llc	10 percent owner	171 MAIN STREET, SUITE 259, LOS ALTOS CA 94022
Anne Wojcicki	director, 10 percent owner, officer: Chief Executive Officer	C/O AJAX I HOLDINGS, LLC, 667 MADISON AVENUE, NEW YORK NY 10606