- Full-year 2024 revenue increased by 32.9% to $27.0 million from $20.4
million revenue in 2023.
- Revenue growth driven by B2B2C channel including employers
and health plans resulting in recurring revenues which increased by
300% year over year as core business continues to gain
traction.
- Completed $25.6 million equity
financing, resulting in a $34.5
million proforma cash balance as of year-end; proforma balance
expected to fund operations through operational cash flow breakeven
run rate by the end of 2025 with a larger cushion.
- Revenue growth and efficient post-merger integration
resulted in a decrease in operating loss in the quarter ended
December 31, 2024, of 35% to
$11.7 million on a GAAP basis and by
24% to $6.9 million on a non-GAAP
basis compared to the quarter ended March
31, 2024.
- Company expects to realize an additional 20% reduction in
operating expenses between the fourth quarter of 2024 and the
fourth quarter of 2025 through further post-merger consolidation
and implementation of AI tools across the organization.
- Advancements in Dario's AI-powered platform and
expansion post-Twill acquisition have created one of the most
comprehensive product portfolios in the industry, aligning with the
market consolidation and shift towards whole-person care as well as
GLP-1 cost management.
- 2024 growth in B2B2C channel included 36 new
employers and health plans client wins, bringing the total client
base to 83; forecasting 50% net client growth in 2025.
- Dario will host an investor conference call and webcast at
8:30 a.m. ET today.
NEW
YORK, March 10, 2025 /PRNewswire/ -- DarioHealth
Corp. (Nasdaq: DRIO) ("Dario" or the "Company"), a leader in the
global digital health market, today announced its financial results
for the fourth quarter and full-year 2024, highlighting substantial
improvements in financial performance, business momentum, and
market expansion.
Over the past year, Dario continued its transformational shift,
evolving into a leading healthcare technology company operating
under a Software as a Service ("SaaS")-like model with high margin,
recurring revenues based on multi-year contracts across a large,
growing, diversified base of clients. With a focus on
continuous developments, enhancements to and expansion of its
technology and product offerings, Dario solidified its reputation
as a premier platform in the business-to-business-to-consumer
("B2B2C") market, as evidenced by expanding sales
to employers, health plans, and strategic partners.
The acquisition of Twill Inc. ("Twill")—Dario's most
significant to date—further strengthened its leadership in the
industry, creating one of the most comprehensive, clinically
integrated digital health platforms. Now supporting five
chronic conditions under a single, unified brand, we believe that
Dario is uniquely positioned to meet the growing demand
for consumer-centric, whole-person care in an
increasingly value-driven healthcare environment. Dario has
significantly strengthened its financial profile,
driving greater efficiency, scalability, and profitability,
and these advancements are reflected in our gross margins
exceeding 80% in the B2B2C business over the past three quarters,
which we believe reinforces Dario's trajectory toward
sustainable profitability and long-term value creation.
"Our strategic initiatives yielded remarkable financial
improvements throughout 2024 in both our top and bottom line. We
are already seeing this positive trajectory continue into 2025. For
the full year of 2024, total revenue reached $27.0 million, representing a 32.9% increase from
$20.4 million in 2023. Additionally,
recurring revenues from our B2B2C business—employers and health
plans—grew significantly, reaching $5.6
million in the fourth quarter of 2024, compared to
$1.1 million in the fourth
quarter of 2023, representing a 398% year-over-year increase.
This growth was driven by the continued expansion of our core B2B2C
business and the successful integration of Twill.
While we are excited about our top line growth, profitability
cannot be achieved through revenue growth alone. With a dual focus
on revenue and expense efficiency, we implemented focused
cost-management strategies that led to a 35% reduction in our
operating loss from the first quarter of 2024 to the fourth
quarter of 2024 without impairing our growth ambitions.
Looking ahead, we anticipate an additional 20% reduction in
operating expenses by the fourth quarter of 2025, which we
believe can further strengthen our financial position. With
these efficiencies and continued business momentum, we believe the
Company is on track to achieve an operational cash flow breakeven
run rate by the end of 2025," said Erez
Raphael, Chief Executive Office of Dario.
"In 2024, Dario won 36 new clients by capitalizing on the
market's demand for comprehensive chronic care solutions to address
their most expensive and challenging conditions. Dario's current
business model and product offering satisfies this demand with its
whole-person approach. This demand is driven by a focus on member
engagement and achieving strong return on investment (ROI), with
organizations looking to consolidate their digital health
investments into high-value, cost-effective solutions that improve
outcomes across a broad population.
Concurrently, there is growing demand for solutions that
complement GLP-1 therapies, as employers and health
plans acknowledge the need for long-term behavioral and lifestyle
support beyond medication alone. Reports show that
GLP-1 medications were the top healthcare expense for
employers in 2024, making cost management an urgent priority. With
our broad and mature portfolio, Dario is uniquely positioned
to capitalize on these trends and deliver meaningful impact for
both members and customers. GLP-1 therapies are
evolving beyond weight loss, with emerging research pointing to new
applications in cardiovascular health, neurodegenerative
diseases, addiction treatment, and even certain cancers. As part of
this transformation, Dario is getting closer to care by
expanding our GLP-1 capabilities through our
collaboration with MediOrbis, adding prescribing
services to provide a more clinically integrated
experience.
Finally, Dario is uniquely positioned to meet the demand for
AI-driven efficiencies in digital health. We continue to advance
AI-driven innovation to increase its impact while improving care in
a hyper-personalized manner. By leveraging our data from 5 million
patients, 25 years of user journeys, and billions of data points to
enhance engagement, optimize operations, and drive better clinical
and financial outcomes—an area we intend to expand further," said
Steven Nelson, Chief Commercial
Officer of Dario.
"In 2024, Dario saw a record-breaking expansion across
employers, health plans, and pharmaceutical companies," continued
Steven Nelson, "We secured 36 new
contracts and grew our total client base to 83 organizations,
reinforcing the strong demand for our multi-condition, AI-powered
platform. This momentum is a testament to our unmatched ability to
engage users, drive sustained behavior change, and deliver tangible
ROI.
Additionally, our client renewal rate remains above 90%,
reflecting the strong value and impact of our solutions. Most of
our contracts are structured as three-year agreements, providing
long-term stability and deepening our relationships with clients.
While we continue to maintain high retention levels, we recognize
that certain accounts may not renew as we optimize our client mix
and focus on collaborations that align best with our long-term
strategy.
Our approach remains centered on driving engagement, improving
outcomes, and ensuring the highest return on investment for our
clients, which we believe positions us well for sustained growth in
2025 and beyond.
We have also expanded Dario Mind, formerly known as Twill,
by integrating with Rula, one of the largest virtual therapist
networks in the U.S. Through this collaboration, Dario members
now have access to Rula's extensive network of over 15,000
providers, covering 120 million lives. By combining Rula's
in-network provider reach with Dario's AI-driven digital health
solutions, we are making high-quality mental health support more
accessible and easier to implement for employers and health plans.
This strategic expansion strengthens our ability to deliver a truly
integrated, whole-person digital health experience, further
reinforcing Dario's leadership in the evolving healthcare
landscape.
Looking ahead to 2025, we expect to accelerate growth by
expanding our reach into mid-sized employers, while continuing to
capture large-scale health plan
opportunities and maximizing the value of our existing
collaborations. We are working closely with current health plan
clients to expand and enhance our product offerings, aligning
them with their healthcare cost reduction goals by leveraging
digital health to drive better outcomes and more efficient care
delivery. Beyond client wins, Dario's revenue model has never
been more diversified, reflecting a stronger financial
foundation and reduced dependency on any single client. Our
expanded employer, health plan, and pharmaceutical collaborations
ensure greater revenue predictability, resilience, and
scalability.
One example of this is our strategic collaboration with
Sanofi which has evolved into a recurring revenue model,
providing a stable, high-value revenue stream as we enter
2025. This revenue model demonstrates the confidence that
industry leaders have in Dario's ability to continuously deliver
value over time to them and their users, highlighting our
opportunity to significantly grow this market in the future.
"Momentum has continued into early 2025, with 9 new client wins,
which we believe underscores the strength of our market position
and the growing demand for our solutions," said Steven Nelson, Chief Commercial Officer of
Dario. "Building on this momentum, we aim to expand our total
client base in 2025 by an additional 50% increase, as we continue
to scale our presence across employers, health plans, and
pharmaceutical companies."
Fourth Quarter 2024 Results Summary
Revenues for the three months ended December 31, 2024, were $7.6 million, a 110% increase from $3.6 million for the three months ended
December 31, 2023, and an increase of
2.4% from $7.4 million for the three
months ended September 30, 2024. The
increase compared to the quarter ended December 31, 2023, and the three months ended
September 30, 2024, resulted from an
increase in revenues from the B2B2C channel and the consolidation
of Twill revenues.
B2B2C, employers and health plans recurring revenues for the
three months ended December 31, 2024,
were $5.6 million compared to
$1.1 million in the three months
ended December 31, 2023, representing
an increase of 398%, and compared to $5.4
million in the three months ended September 30, 2024, representing an increase of
2.6% sequentially.
Gross profit for the three months ended December 31, 2024, was $4.2 million, an increase of $4.1 million or 3,080%, compared to gross profit
of $132,000 for the three months
ended December 31, 2023, and an
increase of 8.4% from $3.9 million
for the three months ended September 30,
2024. The reason for this increase is the increase in our
B2B2C revenues. Gross profit as a percentage of revenues increased
to 55.3% in the three months ended December
31, 2024, from 3.7% in the three months ended December 31, 2023, and 52.2% in the three months
ended September 30, 2024.
Pro-forma gross profit, excluding $1.3
million of amortization expenses related to the acquisition
of technology, was $5.5 million, or
72.2% of revenues, for the three months ended December 31, 2024, compared to pro-forma gross
profit of $1.2 million, or 34.2% of
revenues, for the three months ended December 31, 2023, and a pro-forma gross profit
of $5.2 million, or 70.3% of
revenues, for the three months ended September 30, 2024. A reconciliation of GAAP to
non-GAAP measures has been provided in the financial statement
tables included in this press release. An explanation of these
measures is also included below under the heading "Non-GAAP
Financial Measures."
Total operating expenses for the three months ended December 31, 2024, were $15.9 million compared to $14.3 million for the three months ended
December 31, 2023, and $15.9 million for the three months ended
September 30, 2024, an increase of
$1.5 million, or 10.6%, compared to
the three months ended December 31,
2023, and no change compared to the three months ended
September 30, 2024. The increase
compared to the three months ended December
31, 2023, resulted mainly from the increase in operating
expenses.
Total operating expenses excluding stock-based compensation,
acquisition related expenses and depreciation for the three months
ended December 31, 2024, were
$12.4 million compared to
$9.9 million for the three months
ended December 31, 2023, and
$12.3 million for the third quarter
of 2024.
Operating loss for the three months ended December 31, 2024, was $11.7 million, a decrease of $2.5 million, or 18%, compared to $14.2 million for the three months ended
December 31, 2023, and a decrease of
$0.36 million, or 3.0%, compared to
$12 million for the three months
ended September 30, 2024. The
decrease compared to the three months ended December 31, 2023, and the three months ended
September 30, 2024 was mainly due to
the increase in the gross profit.
Financing income was $2.2 million
for the three months ended December 31,
2024, compared to financing expenses of $6,000 for the three months ended December 31, 2023. The reason for this increase
was the revaluation of the pre-funded warrants issued as part of
the consideration for the acquisition of Twill, due to its
classification as a liability according to GAAP rules.
Net loss was $9.6 million in the
three months ended December 31, 2024,
a decrease of $4.7 million, or 32.6%,
compared to a net loss of $14.3
million in the three months ended December 31, 2023, and a decrease of $2.7 million, or 21.9%, compared to $12.3 million in three months ended September 30, 2024.
Net loss excluding stock-based compensation, acquisition related
expenses and depreciation for the three months ended December 31, 2024 was $4.9
million compared to a loss of $8.4
million for the three months ended December 31, 2023, and a net loss of $7.4 million in the three months ended
September 30, 2024.
A reconciliation of GAAP to non-GAAP measures has been provided
in the financial statement tables included in this press release.
An explanation of these measures is also included below under the
heading "Non-GAAP Financial Measures."
Full Year 2024 Results Summary:
Revenues for the twelve months ended December 31, 2024, were $27 million, a 32.9% increase from $20.4 million for the twelve months ended
December 31, 2023. The increase in
revenues for the year ended December 31,
2024, compared to the year ended December 31, 2023, resulted from an increase in
the Company's revenues from its commercial channel. The revenues
also include the consolidation of Twill's revenues, as a result of
its acquisition during the first quarter of 2024.
B2B2C, employers and health plans recurring revenues for the
twelve months ended December 31,
2024, were $20.0 million
compared to $5 million in the twelve
months ended December 31, 2023,
representing an increase of 300%.
Gross profit for the twelve months ended December 31, 2024, was $13.3 million, an increase of 122%, or
$7.3 million, compared to gross
profit of $6.0 million for the twelve
months ended December 31, 2023. The
increase in gross profit as a percentage of revenue for the year
ended December 31, 2024, compared to
the year ended December 31, 2023,
resulted mainly from the increase in the revenues from the
commercial channel, mainly related to the acquisition of Twill.
Pro-forma gross profit, excluding $5
million of amortization of expenses related to acquisitions,
was $18.3 million for the twelve
months ended December 31, 2024,
compared to a pro-forma gross profit of $10.4 million for the twelve months ended
December 31, 2023. Pro-forma gross
profit margin, excluding amortization of acquisition related
expenses, was 67.7% for the twelve months ended December 31, 2024, compared to 51.0% for the
twelve months ended December 31,
2023. A reconciliation of GAAP to non-GAAP measures has been
provided in the financial statement tables included in this press
release. An explanation of these measures is also included below
under the heading "Non-GAAP Financial Measures."
Total operating expenses for the twelve months ended
December 31, 2024, were $71 million, an increase of $8.8 million, or 14.2%, compared with
$62.2 million for the twelve months
ended December 31, 2023. The increase
resulted from the acquisition of Twill. Total operating expenses
excluding stock-based compensation, amortization of acquisition
related expenses and depreciation for the twelve months ended
December 31, 2024, were $52.2 million compared to $42.2 million for the twelve months ended
December 31, 2023.
Operating loss for the twelve months ended December 31, 2024, increased by $1.5 million to $57.7
million, compared to a $56.2
million operating loss for the twelve months ended
December 31, 2023. This increase is
mainly due to the increase in operating expenses.
Financing income was $13.1 million
for the twelve months ended December 31,
2024, compared to financing expense of $3.2 million for the twelve months ended
December 31, 2023. The reason for
this increase was the revaluation of the pre-funded warrants issued
as part of the consideration for the acquisition of Twill, due to
its classification as a liability according to GAAP rules.
Net loss was $42.7 million for the
twelve months ended December 31,
2024, compared to a net loss of $59.4
million for the twelve months ended December 31, 2023. The decrease was driven by the
increase in financing income.
Net loss excluding stock-based compensation, acquisition related
expenses and depreciation for the twelve months ended December 31, 2024, was $18.8 million compared to a loss of $34.6 million for the twelve months ended
December 31, 2023.
A reconciliation of GAAP to non-GAAP measures has been provided
in the financial statement tables included in this press release.
An explanation of these measures is also included below under the
heading "Non-GAAP Financial Measures."
Conference Call Details: Monday, March
10, 8:30am ET
Dial-in Number: 1-800-717-1738 (domestic) or 1-646-307-1865
(international)
Call me™: https://emportal.ink/41htore
Participants can use the dial-in numbers above and be answered
by an operator OR click the Call me™ link for instant telephone
access to the event. This link will be made active 15 minutes prior
to the scheduled start time.
Webcast
link: https://viavid.webcasts.com/starthere.jsp?ei=1708830&tp_key=417ae4f4c3
Participants are asked to dial in approximately 10 minutes prior
to the start of the event. A replay of the call will be available
approximately two hours after completion of the conference call
through Monday, March 24th, 2025. To listen to the
replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671
(international) and use replay passcode 1134608.
About DarioHealth Corp.
DarioHealth Corp. (Nasdaq: DRIO) is a leading digital health
company revolutionizing how people with chronic conditions manage
their health through a user-centric, multi-chronic condition
digital therapeutics platform. Our platform and suite of solutions
deliver personalized and dynamic interventions driven by data
analytics and one-on-one coaching for diabetes, hypertension,
weight management, musculoskeletal pain and behavioral health.
Our user-centric platform offers people continuous and
customized care for their health, disrupting the traditional
episodic approach to healthcare. This approach empowers people to
holistically adapt their lifestyles for sustainable behavior
change, driving exceptional user satisfaction, retention and
results and making the right thing to do the easy thing to do.
Dario provides its highly user-rated solutions globally to
health plans and other payers, self-insured employers, providers of
care and consumers. To learn more about Dario and its digital
health solutions, or for more information, visit
http://dariohealth.com.
Cautionary Note Regarding Forward-Looking Statements
This news release and the statements of representatives and
partners of the Company related thereto contain or may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Statements that are not
statements of historical fact may be deemed to be forward-looking
statements. Without limiting the generality of the foregoing, words
such as "plan," "project," "potential," "seek," "may," "will,"
"expect," "believe," "anticipate," "intend," "could," "estimate" or
"continue" are intended to identify forward-looking statements. For
example, the Company is using forward-looking statements when it
discuss that its cash balance will be sufficient to fund operations
through operational cash flow breakeven run rate by the end of 2025
with significant cushion; that it expects to generate an additional
20% reduction in operating expenses between the fourth quarter of
2024 and the fourth quarter of 2025 through further post-merger
consolidation and implementation of AI tools across the
organization; its forecasting of 50% net client growth in
2025; its ability to achieve an operational cash flow
breakeven run rate by the end of 2025; its ability to capitalize on
current trends, deliver meaningful impact for both members and
customers, and deliver tangible ROI; its potential future client
growth and retention opportunities; and its expected 50% increase
in client net growth in 2025. Readers are cautioned that certain
important factors may affect the Company's actual results and could
cause such results to differ materially from any forward-looking
statements that may be made in this news release. Factors that may
affect the Company's results include, but are not limited to,
regulatory approvals, product demand, market acceptance, impact of
competitive products and prices, product development,
commercialization or technological difficulties, the success or
failure of negotiations and trade, legal, social and economic
risks, and the risks associated with the adequacy of existing cash
resources. Additional factors that could cause or contribute to
differences between the Company's actual results and
forward-looking statements include, but are not limited to, those
risks discussed in the Company's filings with the U.S. Securities
and Exchange Commission. Readers are cautioned that actual results
(including, without limitation, the timing for and results of the
Company's commercial and regulatory plans for Dario™ as described
herein) may differ significantly from those set forth in the
forward-looking statements. The Company undertakes no obligation to
publicly update any forward-looking statements, whether as a result
of new information, future events or otherwise, except as required
by applicable law.
Non-GAAP Financial Measures
We have provided in this release financial information that has
not been prepared in accordance with Generally Accepted Accounting
Principles (GAAP). These non-GAAP financial measures are not based
on any standardized methodology prescribed by GAAP and are not
necessarily comparable to similar measures presented by other
companies. We use these non-GAAP financial measures internally in
analyzing our financial results and believe they are useful to
investors, as a supplement to GAAP measures, in evaluating our
ongoing operational performance. We believe that the use of these
non-GAAP financial measures provides an additional tool for
investors to use in evaluating ongoing operating results and trends
and in comparing our financial results with peer companies, many of
which present similar non-GAAP financial measures to investors.
Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. Investors are encouraged to
review the reconciliation of these non-GAAP financial measures to
their most directly comparable GAAP financial measures provided in
the financial statement tables below.
Operating expenses (non-GAAP). Our presentation of
non-GAAP operating expenses excludes stock-based compensation
expenses, amortization of acquisition related expenses and
depreciation of fixed assets. Due to varying available valuation
methodologies, subjective assumptions, and the variety of equity
instruments that can impact a company's non-cash operating
expenses, we believe that providing non-GAAP financial measures
that exclude non-cash expenses provides us with an important tool
for financial and operational decision making and for evaluating
our own core business operating results over different periods of
time.
Net loss (non-GAAP). Our presentation of adjusted net
loss excludes the effect of certain items that are non-GAAP
financial measures. Adjusted net loss represents net loss
determined under GAAP without regard to stock-based compensation
expenses, deferred inventory, depreciation of fixed assets,
earn-out remeasurement and acquisition related expenses and
amortization. We believe these measures provide useful information
to management and investors for analysis of our operating
results.
|
DARIOHEALTH CORP.
AND ITS SUBSIDIARIES
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
U.S. dollars in
thousands
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2024
|
|
2023
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
27,764
|
|
$
|
36,797
|
|
Short-term bank
deposits
|
|
|
697
|
|
|
-
|
|
Short-term restricted
bank deposits
|
|
|
175
|
|
|
292
|
|
Trade receivables,
net
|
|
|
4,804
|
|
|
3,155
|
|
Inventories
|
|
|
4,753
|
|
|
5,062
|
|
Other accounts
receivable and prepaid expenses
|
|
|
2,336
|
|
|
2,024
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
40,529
|
|
|
47,330
|
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Deposits
|
|
|
79
|
|
|
6
|
|
Operating lease right
of use assets
|
|
|
1,065
|
|
|
967
|
|
Long-term
assets
|
|
|
313
|
|
|
143
|
|
Property and equipment,
net
|
|
|
709
|
|
|
899
|
|
Intangible assets,
net
|
|
|
18,762
|
|
|
5,404
|
|
Goodwill
|
|
|
57,427
|
|
|
41,640
|
|
|
|
|
|
|
|
|
Total non-current
assets
|
|
|
78,355
|
|
|
49,059
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
118,884
|
|
$
|
96,389
|
|
DARIOHEALTH CORP.
AND ITS SUBSIDIARIES
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
U.S. dollars in
thousands (except stock and stock data)
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2024
|
|
2023
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Trade
payables
|
|
$
|
3,045
|
|
$
|
1,131
|
|
Deferred
revenues
|
|
|
1,583
|
|
|
997
|
|
Operating lease
liabilities
|
|
|
504
|
|
|
111
|
|
Other accounts payable
and accrued expenses
|
|
|
6,052
|
|
|
6,300
|
|
Current maturity of
long-term loan
|
|
|
5,451
|
|
|
3,954
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
16,635
|
|
|
12,493
|
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
|
765
|
|
|
885
|
|
Long-term
loan
|
|
|
23,472
|
|
|
24,591
|
|
Warrant
liability
|
|
|
5,968
|
|
|
240
|
|
Other long-term
liabilities
|
|
|
25
|
|
|
36
|
|
|
|
|
|
|
|
|
Total non-current
liabilities
|
|
|
30,230
|
|
|
25,752
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
Common stock of $0.0001
par value - authorized: 160,000,000 shares; issued and
outstanding: 38,388,431 and 27,191,849 shares on
December 31, 2024 and
December 31, 2023, respectively
|
|
|
4
|
|
|
3
|
|
Preferred stock of
$0.0001 par value - authorized: 5,000,000 shares; issued and
outstanding: 49,585 and 18,959 shares on
December 31, 2024 and December 31, 2023,
respectively
|
|
|
*) -
|
|
|
*) -
|
|
Additional paid-in
capital
|
|
|
462,358
|
|
|
407,502
|
|
Accumulated
deficit
|
|
|
(390,343)
|
|
|
(349,361)
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
|
72,019
|
|
|
58,144
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
118,884
|
|
$
|
96,389
|
|
DARIOHEALTH CORP.
AND ITS SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
|
|
U.S. dollars in
thousands (except stock and stock data)
|
|
|
|
Year
ended
|
|
|
December 31,
|
|
|
2024
|
|
2023
|
|
Revenues:
|
|
|
|
|
|
|
|
Services
|
|
$
|
20,197
|
|
$
|
13,084
|
|
Consumer
hardware
|
|
|
6,843
|
|
|
7,268
|
|
Total
revenues
|
|
|
27,040
|
|
|
20,352
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Services
|
|
|
3,606
|
|
|
4,679
|
|
Consumer
hardware
|
|
|
5,139
|
|
|
5,303
|
|
Amortization of
acquired intangible assets
|
|
|
5,028
|
|
|
4,386
|
|
Total cost of
revenues
|
|
|
13,773
|
|
|
14,368
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
13,267
|
|
|
5,984
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
|
$
|
24,179
|
|
$
|
20,248
|
|
Sales and
marketing
|
|
|
26,350
|
|
|
23,785
|
|
General and
administrative
|
|
|
20,482
|
|
|
18,140
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
71,011
|
|
|
62,173
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
57,744
|
|
|
56,189
|
|
|
|
|
|
|
|
|
Total financial
expenses (income), net
|
|
|
(13,145)
|
|
|
3,174
|
|
|
|
|
|
|
|
|
Loss before
taxes
|
|
|
44,599
|
|
|
59,363
|
|
|
|
|
|
|
|
|
Income Tax
|
|
|
(1,852)
|
|
|
64
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
42,747
|
|
$
|
59,427
|
|
|
|
|
|
|
|
|
Deemed dividend
(contribution)
|
|
$
|
(1,765)
|
|
$
|
4,084
|
|
|
|
|
|
|
|
|
Net loss attributable
to common shareholders
|
|
$
|
40,982
|
|
$
|
63,511
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share of common stock
|
|
$
|
0.61
|
|
$
|
1.93
|
|
Weighted average number
of common stock used in computing basic and diluted
net loss per share
|
|
|
49,039,410
|
|
|
28,371,979
|
|
DARIOHEALTH CORP.
AND ITS SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
U.S. dollars in
thousands
|
|
|
|
Year
ended
|
|
|
December 31,
|
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(42,747)
|
|
$
|
(59,427)
|
|
Adjustments required to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
15,796
|
|
|
19,701
|
|
Depreciation and
impairment
|
|
|
1,327
|
|
|
473
|
|
Change in operating
lease right of use assets
|
|
|
907
|
|
|
239
|
|
Amortization of
acquired intangible assets
|
|
|
6,100
|
|
|
4,512
|
|
Decrease in trade
receivables, net
|
|
|
1,680
|
|
|
3,261
|
|
Increase in other
accounts receivable, prepaid expense and long-term
assets
|
|
|
(80)
|
|
|
(426)
|
|
Decrease in
inventories
|
|
|
308
|
|
|
2,894
|
|
Decrease in trade
payables
|
|
|
(496)
|
|
|
(1,191)
|
|
Decrease in other
accounts payable and accrued expenses
|
|
|
(3,483)
|
|
|
(256)
|
|
Decrease in deferred
revenues
|
|
|
(156)
|
|
|
(323)
|
|
Change in operating
lease liabilities
|
|
|
(1,150)
|
|
|
(124)
|
|
Change in fair value
of warrant liability
|
|
|
(16,504)
|
|
|
(670)
|
|
Non-Cash financial
expenses
|
|
|
516
|
|
|
1,198
|
|
Other
|
|
|
(580)
|
|
|
(240)
|
|
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
|
(38,562)
|
|
|
(30,379)
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(138)
|
|
|
(584)
|
|
Purchase of short-term
investments
|
|
|
—
|
|
|
(4,996)
|
|
Proceeds from
redemption of short-term investments
|
|
|
—
|
|
|
5,033
|
|
Payments for business
acquisitions, net of cash acquired
|
|
|
(8,796)
|
|
|
—
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
(8,934)
|
|
|
(547)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of common stock, net of issuance costs
|
|
|
—
|
|
|
1,614
|
|
Proceeds from issuance
of preferred stock, net of issuance costs
|
|
|
38,531
|
|
|
14,868
|
|
Proceeds from
borrowings on credit agreement
|
|
|
—
|
|
|
29,604
|
|
Repayment of long-term
loan
|
|
|
—
|
|
|
(27,833)
|
|
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
|
38,531
|
|
|
18,253
|
|
|
|
|
|
|
|
|
Decrease in cash, cash
equivalents and restricted cash and cash equivalents
|
|
|
(8,965)
|
|
|
(12,673)
|
|
Effect of exchange rate
differences on cash, cash equivalents and restricted cash and cash
equivalents
|
|
|
(68)
|
|
|
—
|
|
Cash, cash equivalents
and restricted cash and cash equivalents at beginning of
period
|
|
|
36,797
|
|
|
49,470
|
|
Cash, cash equivalents
and restricted cash and cash equivalents at end of
period
|
|
$
|
27,764
|
|
$
|
36,797
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
|
|
|
Cash paid during the
period for interest on long-term loan
|
|
$
|
3,927
|
|
$
|
4,031
|
|
Non-cash
activities:
|
|
|
|
|
|
|
|
Right-of-use assets
obtained in exchange for lease liabilities
|
|
$
|
428
|
|
$
|
136
|
|
Exercise of pre-funded
warrant to common stock upon acquisition
|
|
$
|
2,225
|
|
$
|
-
|
|
Reconciliation of
Operating Loss, Net Loss and Operating Expenses to
Adjusted
|
|
Operating Loss, Net
Loss and Operating Expenses (Non-GAAP)
|
|
U.S. dollars in
thousands
|
|
|
Three months ended
December 31, 2024
|
|
|
GAAP
|
Stock-Based
Compensation
Expenses
|
Amortization of
acquisition
related expenses
and depreciation
of fixed assets
|
Non-GAAP
|
|
Cost of
Revenues
|
$
|
3,402
|
|
(8)
|
|
(1,302)
|
|
2,092
|
|
Gross Profit
|
|
4,202
|
|
8
|
|
1,302
|
|
5,512
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
5,281
|
|
(985)
|
|
(51)
|
|
4,245
|
|
Sales and
Marketing
|
|
5,575
|
|
(536)
|
|
(325)
|
|
4,714
|
|
General and
Administrative
|
|
5,014
|
|
(1,061)
|
|
(474)
|
|
3,479
|
|
Total Operating
Expenses
|
|
15,870
|
|
(2,582)
|
|
(850)
|
|
12,438
|
|
Operating
Loss
|
$
|
(11,668)
|
|
2,590
|
|
2,152
|
|
(6,926)
|
|
Financing
expenses
|
|
(2,191)
|
|
-
|
|
-
|
|
(2,191)
|
|
Income Tax
|
|
155
|
|
|
|
|
|
155
|
|
Net Loss
|
$
|
(9,632)
|
|
2,590
|
|
2,152
|
|
(4,890)
|
|
Reconciliation of
Operating Loss, Net Loss and Operating Expenses to
Adjusted
|
|
Operating Loss, Net
Loss and Operating Expenses (Non-GAAP)
|
|
U.S. dollars in
thousands
|
|
|
Three months ended
December 31, 2023
|
|
|
GAAP
|
Stock-Based
Compensation
Expenses
|
Amortization of
acquisition
related expenses
and depreciation
of fixed assets
|
Non-GAAP
|
|
Cost of
Revenues
|
$
|
3,484
|
|
(266)
|
|
(1,118)
|
|
2,100
|
|
Gross Profit
|
|
132
|
|
266
|
|
1,118
|
|
1,516
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
4,196
|
|
(90)
|
|
(21)
|
|
4,085
|
|
Sales and
Marketing
|
|
4,622
|
|
(918)
|
|
(42)
|
|
3,662
|
|
General and
Administrative
|
|
5,529
|
|
(3,120)
|
|
(267)
|
|
2,142
|
|
Total Operating
Expenses
|
|
14,347
|
|
(4,128)
|
|
(330)
|
|
9,889
|
|
Operating
Loss
|
$
|
(14,215)
|
|
4,394
|
|
1,448
|
|
(8,373)
|
|
Financing
expenses
|
|
6
|
|
-
|
|
|
|
6
|
|
Income Tax
|
|
64
|
|
|
|
|
|
64
|
|
Net Loss
|
$
|
(14,285)
|
|
4,394
|
|
1,448
|
|
(8,443)
|
|
Reconciliation of
Operating Loss, Net Loss and Operating Expenses to
Adjusted
|
|
Operating Loss, Net
Loss and Operating Expenses (Non-GAAP)
|
|
U.S. dollars in
thousands
|
|
|
Twelve months ended
December 31, 2024
|
|
|
GAAP
|
Stock-Based
Compensation
Expenses
|
Amortization of
acquisition
related expenses
and depreciation
of fixed assets
|
Non-GAAP
|
|
Cost of
Revenues
|
$
|
13,773
|
|
(13)
|
|
(5,086)
|
|
8,674
|
|
Gross Profit
|
|
13,267
|
|
13
|
|
5,086
|
|
18,366
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
24,179
|
|
(3,296)
|
|
(238)
|
|
20,645
|
|
Sales and
Marketing
|
|
26,350
|
|
(4,890)
|
|
(1,183)
|
|
20,277
|
|
General and
Administrative
|
|
20,482
|
|
(7,597)
|
|
(1,649)
|
|
11,236
|
|
Total Operating
Expenses
|
|
71,011
|
|
(15,783)
|
|
(3,070)
|
|
52,158
|
|
Operating
Loss
|
$
|
(57,744)
|
|
15,796
|
|
8,156
|
|
(33,792)
|
|
Financing
expenses
|
|
(13,145)
|
|
-
|
|
-
|
|
(13,145)
|
|
Income Tax
|
|
(1,852)
|
|
|
|
|
|
(1,852)
|
|
Net Loss
|
$
|
(42,747)
|
|
15,796
|
|
8,156
|
|
(18,795)
|
|
Reconciliation of
Operating Loss, Net Loss and Operating Expenses to
Adjusted
|
|
Operating Loss, Net
Loss and Operating Expenses (Non-GAAP)
|
|
U.S. dollars in
thousands
|
|
|
Twelve months ended
December 31, 2023
|
|
|
GAAP
|
Stock-Based
Compensation
Expenses
|
Amortization of
acquisition
related expenses
and depreciation
of fixed assets
|
Non-GAAP
|
|
Cost of
Revenues
|
$
|
14,368
|
|
(327)
|
|
(4,490)
|
|
9,551
|
|
Gross Profit
|
|
5,984
|
|
327
|
|
4,490
|
|
10,801
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
20,248
|
|
(3,803)
|
|
(78)
|
|
16,367
|
|
Sales and
Marketing
|
|
23,785
|
|
(6,468)
|
|
(171)
|
|
17,146
|
|
General and
Administrative
|
|
18,140
|
|
(9,103)
|
|
(374)
|
|
8,663
|
|
Total Operating
Expenses
|
|
62,173
|
|
(19,374)
|
|
(623)
|
|
42,176
|
|
Operating
Loss
|
$
|
(56,189)
|
|
19,701
|
|
5,113
|
|
(31,375)
|
|
Financing
expenses
|
|
3,174
|
|
-
|
|
-
|
|
3,174
|
|
Income Tax
|
|
64
|
|
|
|
|
|
64
|
|
Net Loss
|
$
|
(59,427)
|
|
19,701
|
|
5,113
|
|
(34,613)
|
DarioHealth Corporate Contact
Mary Mooney
VP Marketing
Mary@dariohealth.com
+1-312-593-4280
DarioHealth Investor Relations Contact
Kat Parrella
Investor Relations Manager
kat@dariohealth.com
+315-378-6922
Media Contact:
Scott Stachowiak
Scott.Stachowiak@russopartnersllc.com
+1-646-942-5630
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SOURCE DarioHealth Corp.
