Company Leadership Transition - DarioHealth Corp. announced the retirement of Chief Financial Officer Zvi Ben-David, effective May 15, 2025 [1][2] - Chen Franco-Yehuda has been appointed as the new Chief Financial Officer, Treasurer, and Secretary, set to assume the role upon Mr. Ben-David's retirement [2][3] - Mr. Ben-David will assist the company in an advisory capacity until the end of June 2025 to ensure a smooth transition [2] New CFO's Background - Chen Franco-Yehuda brings extensive financial leadership experience, particularly in corporate finance, capital markets, and strategic growth initiatives [3] - She previously served as CFO at Pluri Inc., where she led financial strategy and secured substantial capital through various fundraising rounds [4] - Franco-Yehuda has a background as an Audit/Assurance Manager at PwC and is a licensed CPA in Israel [5] Company Growth and Strategy - Under Mr. Ben-David's leadership, DarioHealth transformed from a single-condition solution provider to a comprehensive multi-condition digital health platform [6] - The company has expanded its offerings across various health conditions, including diabetes, hypertension, mental health, weight management, and musculoskeletal care [6] - DarioHealth aims to leverage Franco-Yehuda's expertise to continue driving innovation and growth in the digital health sector [6][7]

Core Insights - DarioHealth Corp. has formed a strategic partnership with a leading benefit administrator to provide a comprehensive cardiometabolic solution, which includes a GLP-1 support program and an AI-driven digital health suite, contributing to recurring revenues since January 2025 [1][2][4] - The partnership aims to address rising healthcare costs associated with metabolic conditions, particularly focusing on the demand for effective GLP-1 medication support [2][4] - Dario's approach includes a complete lifecycle management solution that supports members from medication initiation to long-term weight maintenance, addressing the challenge of medication discontinuation [3][4] Company Overview - DarioHealth Corp. is a leader in the digital health market, offering a user-centric platform for managing chronic conditions through personalized interventions driven by data analytics [5][6] - The company's platform aims to disrupt traditional episodic healthcare by providing continuous and customized care, promoting sustainable behavior change [6][7] Market Potential - The GLP-1 market is projected to grow to $100 billion by 2030, while the broader cardiometabolic disease market is expected to exceed $1.2 trillion by 2033 [3][4] - Research indicates that without proper behavioral support, 50-75% of patients discontinue GLP-1 medications within one year, highlighting the need for effective management solutions [3]

Core Insights - DarioHealth Corp. has signed a partnership with a major healthcare employer, enhancing its growth trajectory in 2025 and solidifying its leadership in AI-driven digital health solutions for chronic condition management [1][3] - The partnership is already generating recurring revenue and reflects a shift among employers towards data-driven health solutions that demonstrate measurable outcomes and ROI [1][3][4] Company Overview - DarioHealth is a leader in the digital health market, offering a comprehensive platform for managing chronic conditions through personalized, data-driven interventions [5] - The company's solutions include Dario Health, Dario Mind, and Dario Move, targeting conditions such as diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health [2][5] Market Position - The newly partnered institution is a significant player in U.S. healthcare, indicating Dario's growing influence and trust within the enterprise healthcare segment [3][4] - DarioHealth's engagement rates exceed industry averages, with early outcomes showing notable reductions in A1c levels, blood pressure, and musculoskeletal pain, alongside improvements in mental well-being [4] Strategic Direction - The partnership signifies a trend where leading organizations are moving away from generic wellness apps towards scalable, clinically integrated platforms that provide real-world results [3][4] - DarioHealth aims to establish partnerships with leading healthcare systems as a marker of trust and reliability in the digital health sector [4][8]

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].

Financial Data and Key Metrics Changes - Total revenue for 2024 reached $27 million, a 32.9% increase from $20.4 million in 2023, with over 110% growth compared to Q4 2023 and a 2.4% sequential increase from Q3 2024 [19][22][48] - B2B2C employers and health plans recurring revenue grew approximately 400% year-over-year, with 35% of that growth coming from organic expansion [20][22] - Pro-forma gross profit margin increased from 51% to 72%, with gross margins for the B2B2C business around 80% for the last three quarters [21][22] - Proforma operating expenses were reduced by 35% from Q1 2024 to Q4 2024, with an anticipated further 20% reduction by Q4 2025 [22][56] Business Line Data and Key Metrics Changes - The acquisition of Twill has strengthened the company's position in the industry, allowing it to support five chronic conditions under a unified brand [9][12] - The GLP-1 companion model has been instrumental in securing employer contracts, with 10 new client wins in 2024 directly tied to GLP-1 solutions [15][19] - The client renewal rate remained above 90%, indicating strong value and impact of the platform [29] Market Data and Key Metrics Changes - The healthcare industry is shifting towards whole-person digital health and vendor consolidation, with employers and health plans demanding integrated solutions [11][12] - The rise of GLP-1 therapies has created a need for long-term behavioral and lifestyle support, with employers prioritizing comprehensive solutions [13][14] Company Strategy and Development Direction - The company aims to accelerate client growth and expand its business, targeting a 50% net client growth in 2025 [23][52] - The strategy focuses on three key priorities: accelerating commercial growth, leading the market shift to whole-person digital health, and driving operational efficiencies and profitability [52][56] - The company is positioned to capitalize on the transition towards integrated multi-condition platforms that deliver better outcomes and cost efficiencies [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive sustainable long-term growth, supported by a strong financial profile and market-leading AI-powered platform [24][48] - The company is on track for operational cash flow breakeven by the end of 2025, with a disciplined approach to expense management [22][56] Other Important Information - The company raised $25.6 million in capital in January 2025, providing a strong financial position to execute its strategy [22] - The company has a proforma cash balance of $34.5 million as of December 31, 2024 [22] Q&A Session Summary Question: What number of patients have successfully off-boarded from GLP-1 support programs? - Management indicated that they have seen a few hundred users successfully off-boarded and will present specific data in June [61][62] Question: What are the expectations for growth in 2025, particularly regarding GLP-1 programs? - Management targets to grow by more than 50 accounts in 2025, with GLP-1 expected to double in terms of accounts [64][66] Question: How significant is the role of GLP-1 treatments in the company's strategy? - Management sees GLP-1 as a major revenue driver, with expectations for significant growth in accounts related to GLP-1 solutions [95][96] Question: What are the opportunities to expand offerings through health plans? - Management confirmed ongoing discussions with health plans to expand offerings, particularly in behavioral health and cardiometabolic conditions [73][77] Question: What is the expectation for breakeven? - Management confirmed the objective of achieving operational breakeven by the end of 2025 [84]

Financial Data and Key Metrics Changes - Total revenue for 2024 reached $27 million, a 32.9% increase from $20.4 million in 2023, with over 110% growth compared to Q4 2023 and a 2.4% sequential increase from Q3 2024 [19][22][48] - B2B2C recurring revenue grew approximately 400% year-over-year, with 35% of that growth coming from organic expansion [20][22] - Pro-forma gross profit margin increased from 51% to 72%, with gross margins for the B2B2C business around 80% for the last three quarters [21][22] - Proforma operating expenses were reduced by 35% from Q1 2024 to Q4 2024, with an anticipated further 20% reduction by Q4 2025 [22][56] Business Line Data and Key Metrics Changes - The acquisition of Twill has enabled DarioHealth to support five chronic conditions under a unified brand, enhancing its position in the digital health market [9][12] - The GLP-1 companion model has been instrumental in securing new employer contracts, with 10 new client wins in 2024 directly tied to GLP-1 solutions [15][19] - Client renewal rate remained above 90%, indicating strong value and impact of the platform [29] Market Data and Key Metrics Changes - The healthcare industry is shifting towards whole-person digital health and vendor consolidation, with employers and health plans demanding integrated solutions [11][12] - The rise of GLP-1 therapies has created a demand for long-term behavioral and lifestyle support, positioning DarioHealth as a leader in this space [13][14] Company Strategy and Development Direction - DarioHealth aims to accelerate client growth and expand its business, targeting a 50% net client growth in 2025 [23][52] - The strategy focuses on three key priorities: accelerating commercial growth, leading the market shift to whole-person digital health, and driving operational efficiencies and profitability [52][56] - The company is positioned to capitalize on the transition towards integrated multi-condition platforms that deliver better outcomes and cost efficiencies [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained revenue growth, with a strong pipeline and market demand [26][29] - The company is on track for operational cash flow breakeven by the end of 2025, with a disciplined approach to expense management [22][56] - The increasing demand for whole-person, multi-conditioned care positions DarioHealth strongly for future growth [48][56] Other Important Information - The company raised $25.6 million in capital in January 2025, providing a strong financial position to execute its strategy [22] - DarioHealth's AI-powered platform is a key differentiator, driving engagement, operational efficiency, and improved clinical and financial outcomes [18][56] Q&A Session Summary Question: What number of patients have successfully off-boarded from GLP-1 support programs? - Management indicated that they have seen a few hundred users successfully off-boarded and will present specific data in June [61][62] Question: What are the growth expectations for 2025, particularly regarding GLP-1 programs? - Management targets to grow by more than 50 accounts in 2025, with GLP-1 expected to double in terms of accounts [64][66] Question: What is the focus on health plans and opportunities for expansion? - Management confirmed that behavioral health is a priority, with plans to expand offerings in cardiometabolic conditions [77] Question: What are the expectations for health plan revenue growth in 2025? - Management did not provide specific guidance but indicated a general target of 35% growth across all channels [80] Question: Can you explain the pricing tied to results and claims-based billing? - Management elaborated on moving towards claims-based billing, allowing for better targeting and engagement, and tying payments to clinical outcomes [124][126]

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]