DarioHealth Reports Fourth Quarter and Full year 2024 Financial and Operating Results

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$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$20.4 million in 2023 [4][26] - Recurring revenues from the B2B2C segment grew to $20.0 million in 2024, a 300$5 million in 2023 [27] - Gross profit for 2024 was $13.3 million, a 122$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]