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]