DarioHealth (NASDAQ: DRIO), a leader in the global digital health market, is reporting its financial results for second quarter 2024. Highlights of the report show that revenue for the quarter totaled $6.26 million, an 8.6% increase over Q1 2024 and a 1.7% over Q2 2023; Q2 commercial and consumer revenues came in at $7.34 million before a nonrecurring price concession in collaboration with a pharma partner, a 105% increase over Q2 2023; and core business-to-business-to-consumer (“B2B2C”) revenue channel, recurring revenues from employers and health plans in the second quarter, totaled $5.5 million, up 315% year over year and 60% sequentially from Q1 2024. The report also indicated that DarioHealth ended the quarter with cash equivalents of $22.9 million and anticipates reaching cash-flow breakeven by the end of 2025.
In addition, the report noted that during the quarter, DarioHealth made progress on collaboration with existing and potential pharma clients, saw strong business momentum on cross selling of its Twill offering to Dario clients with at least 10 initial clients, and executed on Dario-Twill synergies that expect to reduce operating expenses by approximately 40% by Q1 2025. In addition, Dario experienced increased GLP-1 product adoption with both new and existing clients seeking the company’s metabolic solutions.
“Looking ahead, we anticipate a significant reduction in operating losses over the next three quarters driven by continued revenue growth and aggressive cost-cutting measures implemented post-Twill merger,” said DarioHealth CEO Erez Raphael in the press release. “These cost-reduction initiatives, which commenced in early May 2024 and were completed in early August 2024 , are expected to yield a 24% decrease in GAAP operating expenses and a 40% decrease in non-GAAP operating expenses from the first quarter of 2024 to the first quarter of 2025. Additionally, we expect gross margins to climb to 80% by the first quarter of 2025, as our core B2B2C revenues have already reached 82% gross margins in the second quarter. These combined efforts are anticipated to result in a 58% reduction in GAAP operating loss and 75% reduction in non-GAAP operating losses between the first quarter of 2024 and the first quarter of 2025, providing a clear path to cash flow breakeven by the end of 2025.”
To view the full press release, visit https://ibn.fm/ksax2
About DarioHealth Corp.
DarioHealth Corp. is a leading digital health company revolutionizing how people with chronic conditions manage their health through a user-centric, multichronic-condition, digital-therapeutics platform. Dario’s 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. The company’s 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, making the right thing to do the easy thing to do. Dario provides its highly user-rated solutions globally to health plans and other payors, self-insured employers and providers of care as well as directly to consumers. For more information about the company, please visit www.DarioHealth.com.
NOTE TO INVESTORS: The latest news and updates relating to DRIO are available in the company’s newsroom at http://ibn.fm/DRIO
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