Core Viewpoint - DarioHealth Corp. (DRIO) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for DarioHealth for the fiscal year ending December 2025 is projected at -$0.22 per share, reflecting an 83.3% decrease from the previous year's reported figure [8]. - Over the past three months, analysts have raised their earnings estimates for DarioHealth by 58.5% [8]. Zacks Rating System - The Zacks rating system is based solely on changes in a company's earnings picture, making it a reliable tool for investors [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - DarioHealth's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for near-term stock price increases [10]. Market Influence - Changes in earnings estimates are strongly correlated with stock price movements, particularly due to the actions of institutional investors who adjust their valuations based on these estimates [4][5]. - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 20% of stocks are recognized for their superior earnings estimate revisions [9][10].

Core Insights - DarioHealth has secured a new agreement with a Blue Cross Blue Shield (BCBS) health plan, enhancing its presence in the health plan market and driving recurring revenue growth [1][2][3] - The agreement integrates Dario's AI-driven cardiometabolic digital health solutions into the health plan's services, contributing to the company's annual recurring revenue (ARR) in Q1 2025 [2][4] - Dario now serves nine health plans, reinforcing its role in delivering digital cardiometabolic care solutions as the market is projected to exceed $1.2 trillion by 2033 [3][4] Company Overview - DarioHealth is a leader in the global digital health market, focusing on chronic condition management through a user-centric digital therapeutics platform [5][6] - The platform offers personalized interventions driven by data analytics and coaching for conditions such as diabetes, hypertension, and weight management [5][6] - Dario's approach aims to provide continuous and customized care, enhancing user satisfaction and promoting sustainable behavior change [6][7] Market Position - The collaboration with BCBS highlights the increasing demand for scalable, AI-driven digital health solutions among payers [4] - Dario's expansion into the multi-billion-dollar payer market is expected to strengthen its trajectory toward profitability and long-term growth [4][3] - The cardiometabolic disease market is identified as one of the fastest-growing sectors in healthcare, further solidifying Dario's strategic positioning [3][4]

DarioHealth (DRIO) Q4 2024 Earnings Call March 10, 2025 04:41 PM ET Company Participants Kat Parrella - Investor Relations ManagerErez Raphael - Chief Executive OfficerSteven Nelson - Chief Commercial OfficerCharles Rhyee - Managing DirectorAshok Kumar - Head of Equity ResearchDavid Grossman - Managing Director Operator Good morning, ladies and gentlemen, and welcome to the DarioHealth Fourth Quarter twenty twenty four Results Conference Call. This call is being recorded on Monday, 03/10/2025. I would now l ...

DarioHealth Corp. (NASDAQ:DRIO) Q4 2024 Earnings Conference Call March 10, 2025 8:30 AM ET Company Participants Kat Parrella - Investor Relations Manager Erez Raphael - Chief Executive Officer Steven Nelson - Chief Commercial Officer Conference Call Participants Charles Rhyee - TD Cowen Ashok Kumar - ThinkEquity David Grossman - Stifel Operator Good morning, ladies and gentlemen, and welcome to the DarioHealth Fourth Quarter 2024 Results Conference Call. At this time, all lines are in listen-only mode. Foll ...

Core Insights - DarioHealth Corp. reported significant financial improvements for the fourth quarter and full-year 2024, with total revenue reaching $27.0 million, a 32.9% increase from $20.4 million in 2023, driven by strong growth in its B2B2C business [4][26][27] Financial Performance - Total revenue for 2024 was $27.0 million, up 32.9% from $20.4 million in 2023 [4][26] - Recurring revenues from the B2B2C segment grew to $20.0 million in 2024, a 300% increase from $5 million in 2023 [27] - Gross profit for 2024 was $13.3 million, a 122% increase from $6.0 million in 2023 [28] - Operating loss for 2024 was $57.7 million, slightly higher than the $56.2 million loss in 2023, primarily due to increased operating expenses [31] Business Model and Strategy - Dario has transitioned to a SaaS-like model with high-margin, recurring revenues based on multi-year contracts [2] - The acquisition of Twill Inc. has enhanced Dario's position in the digital health market, allowing it to support five chronic conditions under a unified brand [3] - The company secured 36 new clients in 2024, bringing the total client base to 83, with a forecast of 50% net client growth in 2025 [6][11][15] Market Trends and Demand - There is a growing demand for comprehensive chronic care solutions, particularly those that complement GLP-1 therapies, as employers and health plans seek long-term support beyond medication [7][10] - Dario's AI-driven platform is positioned to meet the increasing demand for efficiencies in digital health, leveraging data from 5 million patients to enhance engagement and outcomes [10] Operational Efficiency - The company implemented cost-management strategies that led to a 35% reduction in operating loss from Q1 2024 to Q4 2024 [5] - Dario anticipates an additional 20% reduction in operating expenses by Q4 2025 through further consolidation and AI tool implementation [5][40] Client Engagement and Retention - Dario maintains a client renewal rate above 90%, indicating strong value and impact of its solutions [12] - The company’s contracts are primarily structured as three-year agreements, providing long-term stability [12] Future Outlook - Dario aims to accelerate growth by expanding its reach into mid-sized employers and maximizing existing collaborations with health plans [15] - The company expects to achieve an operational cash flow breakeven run rate by the end of 2025 [5][40]

Business Growth and Client Acquisition - DarioHealth has signed over 100 total contracts as of now, indicating rapid scaling of its B2B2C model [559]. - In the fiscal year 2024, the B2B2C channel added 36 new employers and health plan clients, bringing the total client base to 83 [574]. - The company has expanded its solutions beyond diabetes to include hypertension, pre-diabetes, musculoskeletal health, and behavioral health [559]. - The company has entered into contracts with a preferred partner and a health plan provider for data licensing and implementation services [575]. Financial Performance - Revenues for the year ended December 31, 2024, amounted to $27,040, an increase of 33.2% compared to $20,352 for the year ended December 31, 2023, driven by growth in the commercial channel and the consolidation of Twill's revenues [584]. - Gross profit for the year ended December 31, 2024, was $13,267, representing 49.1% of revenues, compared to $5,984 or 29.4% of revenues for the year ended December 31, 2023 [588]. - Net loss for the year ended December 31, 2024, was $42,747, a decrease of 28.2% from the net loss of $59,427 for the year ended December 31, 2023 [600]. - As of December 31, 2024, the company had incurred an accumulated deficit of $390,343 since inception [611]. - The company expects to continue incurring losses until it achieves profitability through successful product development and commercialization [611]. Cash Flow and Capital Management - Cash and cash equivalents as of December 31, 2024, were approximately $27,764, down from $36,797 at December 31, 2023 [612]. - Net cash used in operating activities increased to $38.562 million for the year ended December 31, 2024, compared to $30.379 million in 2023, primarily due to increased operating expenses and working capital [636]. - Net cash used for investing activities rose to $8.934 million in 2024, significantly higher than $547, attributed to the acquisition of Twill [637]. - Net cash provided by financing activities was $38.531 million for the year ended December 31, 2024, compared to $18.253 million in 2023, driven by private placements [638]. - The company expects to meet its contractual obligations totaling $4.884 million, with $3.948 million due within one year [640]. Mergers and Acquisitions - The company acquired Upright for a total consideration of 1,687,612 shares of common stock and options to purchase up to 100,193 shares [560]. - DarioHealth paid $10.0 million in cash as part of the merger with Twill, along with additional stock options and warrants [561]. - Research and development expenses increased by $3,931 to $24,179 for the year ended December 31, 2024, primarily due to higher payroll and consulting expenses related to the consolidation of Twill [590]. - Sales and marketing expenses rose by $2,565 to $26,350 for the year ended December 31, 2024, mainly due to increased payroll and consulting expenses from the Twill acquisition [592]. - General and administrative expenses increased by $2,342 to $20,482 for the year ended December 31, 2024, largely due to higher payroll and acquisition costs associated with Twill [594]. Regulatory and Accounting Changes - The FASB issued ASU 2023-07, effective January 1, 2024, enhancing segment reporting disclosures, particularly on significant segment expenses [644]. - ASU 2023-09, effective January 1, 2025, requires disaggregated information on effective tax rate reconciliation and income taxes paid, currently under evaluation [645]. - ASU 2024-03 mandates additional disaggregated disclosures for certain expense categories, effective after December 15, 2026, with early adoption permitted [646]. - The company adopted the fiscal year standard for segment disclosures on a retrospective basis starting January 1, 2024 [644]. - The impact of ASU 2023-09 on financial statement disclosures is currently being evaluated by the company [645]. - The company is assessing the effects of adopting ASU 2024-03 on its disclosures [646]. - No quantitative or qualitative market risk disclosures are applicable at this time [647].

Core Insights - DarioHealth Corp. has announced a strategic collaboration with Rula Health to enhance access to mental health support for employers and their workforce nationwide [1][2][3] - The partnership allows Dario to leverage Rula's network of over 15,000 providers, covering over 120 million commercial lives through major insurance networks [1][7] - This collaboration aims to accelerate the adoption of Dario's behavioral health solutions in the employer channel and boost sales growth in the B2B2C segment [2][3] Company Overview - DarioHealth is a leader in the digital health market, focusing on chronic condition management through a user-centric digital therapeutics platform [5] - The company's solutions include personalized interventions driven by data analytics and coaching for various health issues, including behavioral health [5][6] - DarioHealth provides its solutions globally to health plans, self-insured employers, and consumers [6] Rula Health Overview - Rula Health offers a network of over 15,000 licensed providers, providing next-day therapy and 24/7 crisis support [7] - The platform allows patients to quickly match with providers, confirm insurance costs, and track their progress [7][8] - Rula Health accepts most major insurance networks, covering over 120 million lives [8]

Core Insights - DarioHealth Corp. has signed a contract with a major healthcare system to provide AI-powered chronic care management solutions, expected to contribute to 15 new client signings in 2025, marking a significant step towards achieving its net new client goal for that year [1][2][3] Company Developments - The new contract is set to go live in the first quarter of 2025, reinforcing the recognition of digital health solutions among healthcare professionals [2][3] - Dario's solutions are designed to enhance care delivery for chronic conditions such as diabetes, hypertension, musculoskeletal pain, and mental health challenges, reflecting confidence from self-insured employers in the company's value proposition [3][4] Industry Trends - The digital health landscape is evolving, with collaborations between digital health companies and healthcare systems becoming critical for expanding access to technology-enabled care [6] - Recent industry shifts, including improved coverage and stronger clinical evidence, are accelerating the adoption of digital wellness and self-care therapies, which have historically faced skepticism [5][6] Clinical Effectiveness - Dario's platform has demonstrated effectiveness in reducing A1C levels for diabetes patients by 2.3 points and decreasing anxiety and depression by 28-30% over eight weeks through its behavioral health platform, Dario Mind [4] - The company aims to bridge the gap between traditional care models and scalable digital interventions by combining AI-driven personalization with a seamless user experience [4][8] User-Centric Approach - Dario's user-centric platform offers continuous and customized care, empowering individuals to adapt their lifestyles for sustainable behavior change, which drives user satisfaction and retention [8] - The company provides its solutions globally to health plans, self-insured employers, and consumers, emphasizing a holistic approach to chronic condition management [9]

Core Viewpoint - DarioHealth Corp. will release its financial results for the 4th quarter of 2024 on March 10, 2025, and will host a conference call to discuss these results [1][2]. Group 1: Conference Call Details - The conference call is scheduled for March 10, 2025, at 8:30 am Eastern Time [3]. - Participants can join via a domestic dial-in number (1-800-717-1738) or an international number (1-646-307-1865) [3]. - A replay of the call will be available approximately two hours after the event until March 24, 2025 [3]. Group 2: Company Overview - DarioHealth Corp. is a leader in the digital health market, focusing on chronic condition management through a user-centric digital therapeutics platform [4]. - The platform provides personalized interventions for conditions such as diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health [4]. - DarioHealth's approach aims to empower users to make sustainable lifestyle changes, enhancing user satisfaction and retention [5]. Group 3: Market Reach - DarioHealth offers its solutions globally to health plans, self-insured employers, care providers, and consumers [6].

Core Insights - DarioHealth Corp. has appointed Lawrence (Larry) B. Leisure to its Board of Directors, bringing extensive healthcare leadership and digital health innovation experience to the company [1][5] - Mr. Leisure's background includes roles in managed care, health policy, and value-based care models, which will support Dario's expansion in payer and employer markets [1][5] - DarioHealth is focused on AI-driven digital health solutions for chronic conditions, offering a user-centric platform that promotes continuous and customized care [6][7] Company Overview - DarioHealth Corp. is a leader in digital health, providing solutions for chronic condition management through a multi-chronic condition digital therapeutics platform [6] - The platform delivers personalized interventions driven by data analytics and coaching for conditions such as diabetes, hypertension, and behavioral health [6][7] - DarioHealth's approach aims to disrupt traditional episodic healthcare by empowering users to make sustainable lifestyle changes [7] Leadership and Experience - Mr. Leisure has a diverse background in healthcare consulting, having served in senior roles at Towers Perrin, PricewaterhouseCoopers, and Accenture, as well as leadership positions at Kaiser Foundation Health Plan and UnitedHealth Group [2][3] - He co-founded the Employer Health Innovation Roundtable, representing over six million lives, and holds advisory roles at prestigious institutions [3] - His educational background includes a BA in Economics from Stanford University and an MBA in Finance from UCLA Anderson [4]