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Stock impact report

Function Health's $2.5 Billion Bet And Are Blood Testing Startups Sustainable [Forbes]

Quest Diagnostics Incorporated (DGX) 
Last quest diagnostics incorporated earnings: 4/22 06:45 am Check Earnings Report
US:NYSE Investor Relations: ir.questdiagnostics.com
Company Research Source: Forbes
But behind the impressive headline lies a more complex question about the sustainability of the direct-to-consumer lab testing boom. The Numbers Tell A Complex Story Using the 50 million tests figure, we can reverse-engineer Function's approximate revenue trajectory. With around 100 tests per panel and members testing twice yearly, this translates to roughly 250,000 paid member-years at $499 per membership, suggesting approximately $125 million in cumulative revenue over three years. If revenue growth accelerated recently, the company likely generated $50-75 million in the last twelve months alone. At a $2.5 billion valuation, Function commands a 30-50x multiple on trailing revenue. While ambitious for most businesses, such valuations aren't unprecedented in the longevity space, where investors bet on future potential rather than current economics. Yet Function's competitive environment raises questions about whether these numbers can grow sustainably. A Crowded Market Gets Show less Read more
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