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]

Core Viewpoint - DarioHealth Corp. successfully closed a $25.6 million private placement of convertible preferred stock, primarily funded by existing shareholders, aimed at extending its cash runway and supporting its strategic plan to achieve operational cash flow positivity by the end of 2025 [1][2][3] Financial Position - The private placement is expected to enhance Dario's financial position, with a proforma cash balance of $40.6 million as of the end of Q3 2024, including the proceeds from the offering [2] - The financing will enable the company to continue building high-margin, scalable recurring revenues across B2B and pharma channels [4][9] Transaction Details - The company issued 18,805 shares of convertible preferred stock at $1,000 per share with a conversion price of $0.73, and 6,800 shares at $1,000 per share with a conversion price of $0.83 [5] - Holders of the preferred stock will receive a 10% dividend payable in common stock each quarter for the first four quarters, totaling up to 40% [6] Shareholder Confidence - More than half of the newly issued convertible preferred shares were purchased by existing shareholders, indicating strong confidence in the company's strategy and performance [3][9] - The participation of accredited healthcare investors further underscores this confidence [9] Strategic Growth - The financing is aligned with the company's long-term growth strategy focused on high-margin, scalable recurring revenues [4][9] - The company aims to maintain its growth trajectory and strengthen its position in the digital health market [4]

Company Collaboration and Strategy - DarioHealth Corp announced a collaboration with MediOrbis to enhance its GLP-1 behavior change solution by adding prescribing capabilities, creating a fully integrated medical weight loss program [1] - The collaboration aims to meet growing employer demand for weight-loss medication coverage and expand Dario's addressable market in the digital health sector [1] - The partnership positions Dario to drive recurring revenue and expand its market presence in both employer and direct-to-consumer channels [1][4] Market Trends and Employer Demand - 44% of large employers now cover obesity drugs, reflecting a growing trend in employer-sponsored health benefits [2] - The rising costs of GLP-1 medications highlight the need for strategic plan designs that combine medication use with behavior change programs to ensure sustainable clinical outcomes and maximize ROI [2] - Employers are increasingly seeking holistic, cost-effective weight management solutions, creating opportunities for Dario to optimize outcomes and ROI through its integrated offerings [2][3] Product and Service Enhancements - Dario's GLP-1 behavior change solution now includes virtual physician oversight and prescribing capabilities, enabling seamless access to care throughout the weight loss journey [1][3] - The enhanced solution supports employees before, during, and after GLP-1 medication use, ensuring sustainable weight loss through lifelong healthy lifestyle modifications [2][3] - The collaboration strengthens Dario's ability to provide personalized, high-quality virtual care that complements its behavior change programs, delivering meaningful health outcomes [4] Industry and Market Positioning - The GLP-1 market is rapidly expanding, with employers demanding solutions that drive long-term health improvements and cost savings [4] - Dario's end-to-end GLP-1 solution, combining virtual prescribing with behavior change programs, positions the company to capture opportunities in both employer and direct-to-consumer markets [4] - The collaboration with MediOrbis allows Dario to innovate and develop clinical programs that address obesity and other chronic conditions, impacting employee health and productivity globally [4] Company Overview - DarioHealth Corp is a leading digital health company offering a user-centric, multi-chronic condition digital therapeutics platform [5] - The platform delivers personalized interventions for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health, driven by data analytics and one-on-one coaching [5] - Dario's solutions are highly rated and provided globally to health plans, self-insured employers, care providers, and consumers [7]

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 ...