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]
DarioHealth Reports Third Quarter 2024 Financial and Operating Results