Core Insights - DarioHealth Corp. anticipates signing a total of 25 new clients in 2024, indicating a projected growth of approximately 35% in its client base compared to 2023 [1][3] Group 1: Business Development - The company has secured four new contracts with self-insured employers, which are expected to commence in Q1 2025, contributing to recurring revenue [1][2] - These contracts encompass the full suite of Dario's platform, highlighting the demand for multi-condition offerings rather than single-condition solutions [2][3] Group 2: Financial Impact - Each new employer contract is expected to enhance recurring revenue, support gross margin growth, and expand the user base, thereby increasing the company's data pool [3] - The anticipated growth in client signings is viewed as a key indicator of the company's profitability timeline [3] Group 3: Company Overview - DarioHealth Corp. is a leader in the digital health sector, focusing on chronic condition management through a user-centric digital therapeutics platform [4][5] - The platform provides personalized interventions driven by data analytics and coaching for various health conditions, including diabetes and hypertension [4][5]

Financial Data and Key Metrics Changes - For Q3 2024, DarioHealth reported revenue of $7.42 million, an 18.7% increase over Q2 2024 and a 111% year-over-year growth [13] - Non-GAAP operating expenses were reduced to $12.3 million, a 15.9% sequential decline from Q2 2024 [13] - Gross margins for the B2B2C business rose to 83%, with full business gross margins reaching 70% on a non-GAAP basis [13] Business Line Data and Key Metrics Changes - The core B2B2C business has become the main revenue driver, contributing significantly to the overall revenue growth [13] - DarioHealth secured 10 new client wins in Q3 2024, with expectations to secure 5 more clients by year-end, totaling 17 to 20 new clients for the second half of the year [12] Market Data and Key Metrics Changes - The company is expanding its reach into the employer and health plan channels, with major employers like Amazon and Google showing interest in Dario's platform [18] - A new contract with Centene in the Medicare Advantage market aims to promote healthy aging, expanding Dario's footprint to over 1 million eligible members starting in 2025 [20] Company Strategy and Development Direction - DarioHealth aims to position itself as a Software-as-a-Service business with high gross margins targeting over 80% and a strong recurring revenue model [11] - The acquisition of Twill has enhanced Dario's capabilities in behavioral health and personalized health solutions, making it a comprehensive platform in the market [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued financial improvement, projecting a 69% reduction in non-GAAP operating losses from Q1 2024 to Q1 2025 [14] - The company is on track to achieve a cash flow breakeven run rate by the end of 2025 [30] Other Important Information - DarioHealth is focusing on integrating AI and data-driven personalization to enhance client engagement and clinical outcomes [29] - The company has restructured its budget, shifting funds from R&D to sales and marketing to drive revenue growth [46] Q&A Session Summary Question: Guidance for 2025 growth range for B2B2C revenue - Management indicated that with around 25 new clients this year, they expect to increase average revenue per client and aim for a run rate of $50 million by the end of next year [34] Question: Drivers for sequential growth in B2C revenue - Management confirmed that B2C revenue is expected to remain stable in the $8 million range, noting it is cash flow positive [35] Question: Contribution estimates from new pharma customers - New pharma clients are expected to contribute between $500,000 to $5 million, depending on their goals and engagement levels [38][40] Question: Status of prior pharma partners under the legacy model - Management is focused on converting existing contracts to the new subscription model to achieve more predictable revenue [41] Question: Key levers for OpEx improvement - Management highlighted that they have managed to maintain a similar OpEx level while integrating Twill, with expectations to reach a run rate of $41 million by Q1 2025 [44]

DarioHealth Corp. (DRIO) came out with a quarterly loss of $0.13 per share versus the Zacks Consensus Estimate of a loss of $0.18. This compares to loss of $0.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 27.78%. A quarter ago, it was expected that this company would post a loss of $0.29 per share when it actually produced earnings of $0.06, delivering a surprise of 120.69%.Over the last four quarters, the company has sur ...

Financial Performance - Q3 2024 revenue reached $7.42 million, an 18.7% increase from Q2 2024 and a 111% increase compared to Q3 2023, driven by growth in the B2B2C business [4][13] - Q3 operating loss decreased by 25.7% sequentially to $12 million on a GAAP basis and by 33.3% to $7.1 million on a non-GAAP basis [1][7] - Gross profit for Q3 2024 was $3.9 million, a 534% increase compared to Q3 2023, with gross margins reaching 52.2% [15] - Pro-forma gross profit for Q3 2024 was $5.2 million, or 70.3% of revenues, excluding $1.34 million of amortization expenses [16] Business Momentum and Strategic Wins - Secured 10 new B2B2C clients, including a national Medicare advantage health plan, a regional Medicaid health plan, and a global leading pharma company [1][9] - Transformed the pharma/medical device channel into a recurring revenue model, securing two new deals, including one with a top six global pharma company [1][10] - Completed the integration of Twill's capabilities, creating a comprehensive digital health solution under the Dario brand [11] Cost Management and Synergies - Implemented cost-management strategies post-Twill acquisition, reducing GAAP operating expenses by 16% sequentially to $15.9 million and non-GAAP operating expenses by 15.9% to $12.3 million [6] - Expected to reduce operating expenses by 38% by Q1 2025 compared to Q1 2024, contributing to a 49% reduction in operating losses and a 59% reduction in non-GAAP operating losses [1][8] Future Outlook - On track to achieve operational cash flow breakeven run rate by the end of 2025 [1][8] - Anticipates continued revenue growth and increasing gross margins due to positive mix shift and reduced fixed expenses [8] Industry and Market Position - DarioHealth is a leader in the global digital health market, offering a multi-chronic condition digital therapeutics platform [2][29] - The company's AI capabilities, including generative AI and microservices, are expected to revolutionize areas like drug discovery and consumer engagement [12]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-37704 | --- | --- | |------------------------------------------------------------------------------------------- ...

The new contract marks the eighth health plan for Dario and will contribute to revenues starting immediately. NEW YORK, Oct. 30, 2024 /PRNewswire/ -- DarioHealth Corp. (Nasdaq: DRIO) ("Dario" or the "Company"), a leader in the global digital health market, announced today a new contract with a regional health plan in the Medicaid space, which has launched with the full suite of cardiometabolic solutions. The launch with this new health plan marks the third Medicaid client for Dario, continuing a solid momen ...

Company to host conference call and webcast at 8:30am ETNEW YORK, Oct. 23, 2024 /PRNewswire/ -- DarioHealth Corp. (Nasdaq: DRIO) ("Dario" or the "Company"), a global leader in digital health, announced today that it will release its financial results for the 3rd quarter ended September 30th, 2024 and will host a conference call and webcast at 8:30 am Eastern Time, on Thursday, November 7th, 2024, before the market opens.Erez Raphael, Chief Executive Officer, and Steven Nelson, Chief Commercial Officer, will ...

Integration of behavioral health and wellbeing solutions with navigation and engagement technology creates the most comprehensive solution in the market under the Dario brand NEW YORK, Oct. 17, 2024 /PRNewswire/ -- DarioHealth Corp. (Nasdaq: DRIO) ("Dario" or the "Company"), a global leader in digital health, today announces the full integration of Twill's advanced behavioral health and navigation capabilities into the Dario platform. The integration completes Dario's effort to create one of the most compre ...

New offer gives Dario access to millions of AARP members, enabling engagement with people over 50 in health and well-being beginning in January 2025 NEW YORK, Oct. 15, 2024 /PRNewswire/ -- DarioHealth Corp. (Nasdaq: DRIO) ("Dario" or the "Company"), a leader in the global digital health market, announced today a new AARP member benefit that provides members with proven digital behavioral health and well-being solutions from Twill by Dario. The new benefit is expected to launch in January of 2025 for AARP me ...

DarioHealth Corp. (DRIO) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices - - has triggered this rating change. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. ...