- Full-year 2023 revenue of $20.4 million reflects a decrease from 2022 revenue of $7.3 due to a managed decrease in B2C and strategic milestone revenue as the core B2B2C revenue increased.
- 2023 B2B2C, employers and health plans recurring revenues increased 39% year over year as the core business continues to gain traction.
- Commercial revenues in 2023 generated majority of the revenue with B2B2C growing from 13% to 25% of total revenue from 2022 to 2023.
- GAAP operating expenses decreased by 11.2% sequentially from the third quarter of 2023.
- Non-GAAP operating expenses decreased 9.4% sequentially from the third quarter to $9.9M.
- Signed multiple customers onto the Aetna platform which subsequently launched in Q1 of 2024.
- Saw significant interest and multiple employer adoption of the Dario GLP-1 Behavioral Change Program as well as expansions of current customer relationships on the metabolic side.
- Enhanced path to profitability through improvements across the financial profile on an annual basis, which we expect will continue into 2024 and accelerate with the acquisition of Twill, Inc. in Q1 of 2024.
- Total pro forma non-audited revenues of approximately $38 million for the integrated entity in 2023.
- Ended 2023 with cash equivalents of $37 million, not including $22.4 million financing in the first quarter of 2024.
- Company to host investor conference call and webcast at 8:30 a.m. ET today.
NEW YORK, March 28, 2024 /PRNewswire/ -- DarioHealth Corp. (Nasdaq: DRIO) ("Dario" or the "Company"), a leader in the global digital health market, today reported financial results for the fourth quarter 2023 and the full year 2023 and provided a corporate and commercial update.
"2023 was a very significant year for Dario. Our financial profile continued to improve as a result of our pivot to a Business-to-Business-to-Consumer (B2B2C) business model with growing B2B2C revenue and decreasing operating costs. As we have previously discussed, our revenue comes from three sources; our historical direct to consumer/business to consumer (B2C) business, recurring revenue from health plans and employers (B2B2C), and strategic revenue from partners like Sanofi U.S., which is milestone driven. In 2023, we have continued to manage our B2C revenue down in comparison to 2022 and focus on our B2B2C business. While 2023 saw a managed decrease in B2C revenue to approximately $8.3 million on an annual basis, and a decrease in our milestone-based revenue, following the delivery of the private label platform for Aetna and delays in completing milestones with Sanofi. In 2023, we saw 39% year-over-year growth in our core B2B2C business. Our operating expenses decreased on a sequential quarterly basis from the third quarter of 2023. Our fourth quarter revenue was up slightly over the third quarter as expected, in advance of new customer launches and the launch of the Aetna platform in the first quarter of 2024," stated Erez Raphael, Chief Executive Officer of Dario.
"Last month we announced the transformational acquisition of Twill, Inc. ("Twill") accompanied by a $22.4 million equity financing. We believe this acquisition propels Dario forward, creating immediate scale with three of the top eight national health plans, some of the largest technology companies and several major pharmaceutical companies as customers. Some of the highlights of the transaction include:
- Creation of one of the most comprehensive digital health offerings spanning from emotional well-being through some of the costliest chronic conditions.
- Nearly doubles non-audited pro forma 2023 revenue with approximately $38 million for the integrated entity.
- The addition of high gross margin revenue that, when combined with Dario's existing business, is expected to enable the company to reach margins greater than 80% by 2025.
- Ability to leverage Twill's innovative approaches to engagement and navigation and breadth of offering to increase sales opportunities, revenue per customer and lifetime value of members.
- Expected ability to achieve 30% annualized cost synergies within two years.
- Addition of high value non-overlapping customers in Dario's core health plan and employer markets, which enables significant opportunities for cross selling.
- An accelerated path to profitability expected in 2025 through revenue scale, increased gross margins and cost synergies.
Following the recent acquisition of Twill, we have commenced selling our new combined offerings and the have begun the integration process and expect to report outcomes in the coming quarters. We believe that this acquisition completely transforms Dario and firmly establishes it as one of the leaders in the space, that understands how to leverage organic and inorganic growth to improve financial metrics and manage responsible growth. We ended the year with a strong cash position of $37 million, not including the $22.4 million financing in the first quarter of 2024, which we believe puts us in a great position to execute our strategy," Mr. Raphael concluded.
"We were pleased to conclude the employer sales season in the fourth quarter and continue to see increasing traction across all of our sales channels. We expect to continue to grow revenue in our core B2B2C business with the launch of the most significant number of new customers on our platform in the first quarter of 2024. Adding to these new customers, the Aetna platform launched with several customers in January and has continued to add customers that are planned for launches through second quarter of 2024. The separate self-help business we won from Aetna will also launch at the beginning of the second quarter of 2024. We have already seen a strong start to the 2024 employer sales cycle with larger opportunities compared to 2023. We anticipate additional health plan customers this year directly and through our partners that cover more than 87 million members," stated Rick Anderson, President of Dario. "In addition, Twill's existing pipeline adds millions of dollars of sales opportunities, several that are late stage or are in contracting. Excitingly, customers from both companies have expressed a strong interest in exploring opportunities created by the combination of the products and we look forward to strong cross selling opportunities."
Q4 2023 and Recent Highlights
- Completed the transformational acquisition of Twill in Q1 of 2024 concurrent with a $22.4 million equity financing. The acquisition is immediately accretive to revenues, gross margins, and go-to-market strategy.
- Made meaningful progress in multiple areas with the new Dario GLP-1 Behavioral Change Program. We saw significant interest and adoption of the program across existing commercial clients as well as a new national employer and regional union.
- Launched more than a dozen new customers and partners on the platform in the first quarter of 2024, with additional recently signed customers expected to launch in the second quarter of 2024.
- Launched the Aetna private labeled platform in Q1 of 2024, with multiple employer groups and have seen additional Aetna customer bookings in the first quarter of 2024.
- Agreed with multiple customers, including two of our health plans, to expand their population on the platform.
- Announced a new strategic partnership with a top five national employee benefits consulting firm to become the preferred digital health and chronic condition solution partner for its national employer clients. The partnership includes Dario's solutions for diabetes, pre-diabetes, hypertension, musculoskeletal and behavioral health.
- Announced new research presented by Sanofi at the Academy of Managed Care Pharmacy's 2023 annual conference Nexus demonstrating a 36% reduction in 30-day hospital readmissions for Dario users compared to non-users living with type 2 diabetes.
- Announced new research presented at the Diabetes Technology Society 2023 Meeting demonstrating the quantifiable value of associating physical activity tracking alongside blood sugar tracking for people living with diabetes and pre-diabetes.
- Announced two new analyses presented by Sanofi at the Diabetes Technology Society (DTS) annual conference demonstrating two mediators associated with improved clinical and economic in Dario users who saw an overall clinically significant reduction in HbA1c, improvement in medication adherence, reduction in all-cause healthcare resource use, and less likelihood of incurring related charges.
- Continued to demonstrate the strength of Dario's multi-condition suite, with more than 80% of pipeline opportunities for multi-condition contracts.
Fourth Quarter 2023 Results Summary
Revenues for the fourth quarter ended December 31, 2023, were $3.6 million, a 47% decrease from $6.8 million for the fourth quarter ended December 31, 2022, and an increase of 2.8% from $3.5 million for the for the third quarter of 2023. The decrease compared to the quarter ended December 31, 2022, resulted from a decrease in revenues from the Company's consumer and strategic partner channels.
Gross profit for the fourth quarter of 2023 was $132,000, a decrease of $2.6 million, compared to gross profit of $2.7 million for the fourth quarter of 2022, and a decrease of 78.4% from $0.6 million for the third quarter of 2023. Gross profit as a percentage of revenues decreased to 3.7% in the fourth quarter of 2023, from 40.1% in the fourth quarter of 2022, and 17.3% in the third quarter of 2023. The decrease compared to the fourth quarter ended December 31, 2022, mainly resulted from the decrease in revenues from the strategic channel. The decrease compared to the third quarter of 2023 is a result of an increase in stock-based compensation expenses and inventory right offs.
Pro-forma gross profit, excluding $1.1 million of amortization expenses and other costs related to the acquisition of technology, was $1.2 million, or 34.2% of revenues, for the three months ended December 31, 2023, compared to pro-forma gross profit of $4.0 million, or 58.1% of revenues, for the three months ended December 31, 2022. 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 fourth quarter ended December 31, 2023, were $14.3 million compared with $11.7 million for the fourth quarter ended December 31, 2022, and $16.1 million for the third quarter of 2023, an increase of $2.6 million, or 22.2%, compared to the fourth quarter of 2022, and a decrease of $1.8 million, or 11.2%, compared to the third quarter of 2023. The increase compared to the fourth quarter ended December 31, 2022, resulted mainly due to an increase in stock-based compensation expenses. The decrease compared to the third quarter of 2023, resulted mainly from a decrease in our stock-based compensation and digital marketing expenses. Total operating expenses excluding stock-based compensation, acquisition expenses and depreciation for the fourth quarter of 2023 were $9.9 million compared to $10 million for the fourth quarter of 2022, and $10.9 million for the third quarter of 2023.
Operating loss for the fourth quarter of 2023 was $14.2 million, an increase of $5.2 million, or 58%, compared to $9.0 million for the fourth quarter of 2022, and a decrease of $1.3 million, or 8.6%, compared to $15.5 million for the third quarter of 2023. The increase compared to the fourth quarter of 2022 was due to the decrease in gross profit and the increase in operating expense. The decrease compared to the third quarter of 2023, was mainly due to the decrease in operating expenses.
Net loss was $14.3 million in the fourth quarter of 2023, an increase of $1.7 million, or 13.2%, compared to a net loss of $12.6 million in the fourth quarter of 2022, and a decrease of $1.4 million, or 9.2%, compared to $15.7 million in the third quarter of 2023.
Net loss excluding stock-based compensation, acquisition related expenses and depreciation for the fourth quarter of 2023, was $8.4 million compared to $9.6 million for the fourth quarter of 2022, and $9.3 million in the third quarter of 2023.
Non-GAAP billings for the three months ended December 31, 2023, were $3.9 million, a 45% decrease from $7.1 million for the three months ended December 31, 2022. The decrease is a result of lower sales generated in the three months ended December 31, 2023, compared to the three months ended December 31, 2022. 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 2023 Results Summary
Revenues for the twelve months ended December 31, 2023, were $20.4 million, a 26.4% decrease from $27.7 million for the twelve months ended December 31, 2022. The decrease compared to the year ended December 31, 2022, resulted from a decrease in revenues from the Company's consumer and strategic partner channels.
Gross profit for the twelve months ended December 31, 2023, was $6.0 million, a decrease of 38%, or $3.7 million, compared to gross profit of $9.7 million for the twelve months ended December 31, 2022. Gross profit as a percentage of revenues decreased to 29.4% for the twelve months ended December 31, 2023, from 34.9% for the twelve months ended December 31, 2022. The decrease compared to the year ended December 31, 2022, mainly resulted from a decrease in revenues from the strategic channel.
Pro-forma gross profit, excluding $4.4 million of amortization expenses and other costs related to acquisitions, was $10.4 million, or 51% of revenues for the twelve months ended December 31, 2023, compared to a proforma gross profit of $14.0 million, or 50.7% of revenues for the twelve months ended December 31, 2022. The decrease compared to the year ended December 31, 2022, mainly resulted from a decrease in revenues from the strategic channel.
Total operating expenses for the twelve months ended December 31, 2023, were $62.2 million, a decrease of $4.3 million, or 6.5%, compared with $66.5 million for the twelve months ended December 31, 2022. The decrease resulted from a decrease in our sales and marketing expenses. Total operating expenses excluding stock-based compensation, acquisition related expenses and depreciation for the twelve months ended December 31, 2023, were $42.2 million compared to $49.7 million for the twelve months ended December 31, 2022.
Operating loss for the twelve months ended December 31, 2023, decreased by $0.6 million to $56.2 million, compared to an operating loss of $56.8 million for the twelve months ended December 31, 2022. This decrease is mainly due to the decrease in operating expenses.
Net loss was $59.4 million for the twelve months ended December 31, 2023, compared to a net loss of $62.2 million for the twelve months ended December 31, 2022. The decrease was driven by lower operating and financial expenses.
Non-GAAP billings for the twelve months ended December 31, 2023, were $20.0 million, a 28% decrease from $27.8 million for the twelve months ended December 31, 2022.
Non-GAAP adjusted operating loss for the twelve months ended December 31, 2023, was $31.4 million, a 11.6% decrease from a $35.5 million non-GAAP adjusted operating loss for the twelve months ended December 31, 2022.
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: Thursday, March 28, 8:30am ET
Date: Thursday, March 28th, 8:30am ET
Dial-in Number: 1-888-886-7786 (domestic) or 1-416-764-8658 (international)
Call me: https://emportal.ink/3T9QM65
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 scheduled start time.
Webcast link: https://viavid.webcasts.com/starthere.jsp?ei=1659828&tp_key=33195a8703
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 through Sunday, April 28th, 2024. To listen to the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and use replay passcode 63790103.
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, when the Company discusses the potential benefits of the Twill acquisition, including the expected doubling of non-audited pro forma revenue, that it expects margins greater than 80% by 2025, that it has an enhanced path to profitability through improvements across the financial profile on an annual basis which it expects to continue into 2024 and accelerate in the first quarter following the acquisition of Twill, that it expects to achieve 30% annualized cost synergies within two years and that it expects an accelerated path to profitability in 2025 through revenue scale, increased gross margins and cost synergies, that its cash position puts it in a great position to execute its strategy, that it expects it B2B2C revenue to continue to grow, the expected launch of its existing contracts, that it expects additional health plan customers this year directly and through its partners that cover more than 87 million members and that Twill's existing pipeline adds millions of dollars of sales opportunities, several that are late stage or are in contracting. 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.
Billings (non-GAAP). We define billings as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period and adjustment to the deferred revenue balance due to adoption of the new revenue recognition standard less any deferred revenue balances acquired from business combination(s) during the period. We consider billings to be a useful metric for management and investors because billings drive future revenue, which is an important indicator of the health and viability of our business. There are a number of limitations related to the use of billings instead of GAAP revenue. First, billings include amounts that have not yet been recognized as revenue and are impacted by the term of security and support agreements. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue.
Operating expenses (non-GAAP) . Our presentation of non-GAAP operating expenses excludes stock-based compensation expenses, depreciation of fixed assets, earn-out remeasurement and acquisition related expenses and amortization. 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 expense 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, | |||||||
2023 | 2022 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 36,797 | $ | 49,357 | |||
Short-term restricted bank deposits | 292 | 165 | |||||
Trade receivables, net | 3,155 | 6,416 | |||||
Inventories | 5,062 | 7,956 | |||||
Other accounts receivable and prepaid expenses | 2,024 | 1,630 | |||||
Total current assets | 47,330 | 65,524 | |||||
NON-CURRENT ASSETS: | |||||||
Deposits | 6 | 6 | |||||
Operating lease right of use assets | 967 | 1,206 | |||||
Long-term assets | 143 | 111 | |||||
Property and equipment, net | 899 | 788 | |||||
Intangible assets, net | 5,404 | 9,916 | |||||
Goodwill | 41,640 | 41,640 | |||||
Total non-current assets | 49,059 | 53,667 | |||||
Total assets | $ | 96,389 | $ | 119,191 | |||
DARIOHEALTH CORP. AND ITS SUBSIDIARIES | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
U.S. dollars in thousands (except stock and stock data) | ||||||
December 31, | ||||||
2023 | 2022 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
CURRENT LIABILITIES: | ||||||
Trade payables | $ | 1,131 | $ | 2,322 | ||
Deferred revenues | 997 | 1,320 | ||||
Operating lease liabilities | 111 | 293 | ||||
Other accounts payable and accrued expenses | 6,300 | 6,592 | ||||
Current maturity of long term loan | 3,954 | 8,823 | ||||
Total current liabilities | 12,493 | 19,350 | ||||
NON-CURRENT LIABILITIES | ||||||
Operating lease liabilities | 885 | 827 | ||||
Long-term loan | 24,591 | 18,105 | ||||
Warrant liability | 240 | 910 | ||||
Other long-term liabilities | 36 | - | ||||
Total non-current liabilities | 25,752 | 19,842 | ||||
STOCKHOLDERS' EQUITY | ||||||
Common stock of $0.0001 par value - authorized: 160,000,000 shares; issued and | 3 | 3 | ||||
Preferred stock of $0.0001 par value - authorized: 5,000,000 shares; issued and | *) - | *) - | ||||
Additional paid-in capital | 407,502 | 365,846 | ||||
Accumulated deficit | (349,361) | (285,850) | ||||
Total stockholders' equity | 58,144 | 79,999 | ||||
Total liabilities and stockholders' equity | $ | 96,389 | $ | 119,191 | ||
DARIOHEALTH CORP. AND ITS SUBSIDIARIES | ||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||
U.S. dollars in thousands (except stock and stock data) | ||||||
Year ended | ||||||
December 31, | ||||||
2023 | 2022 | |||||
Revenues: | ||||||
Services | $ | 13,084 | $ | 17,859 | ||
Consumer hardware | 7,268 | 9,797 | ||||
Total revenues | 20,352 | 27,656 | ||||
Cost of revenues: | ||||||
Services | 4,679 | 5,324 | ||||
Consumer hardware | 5,303 | 8,320 | ||||
Amortization of acquired intangible assets | 4,386 | 4,357 | ||||
Total cost of revenues | 14,368 | 18,001 | ||||
Gross profit | 5,984 | 9,655 | ||||
Operating expenses: | ||||||
Research and development | $ | 20,248 | $ | 19,649 | ||
Sales and marketing | 23,785 | 30,323 | ||||
General and administrative | 18,140 | 16,493 | ||||
Total operating expenses | 62,173 | 66,465 | ||||
Operating loss | 56,189 | 56,810 | ||||
Total financial expenses, net | 3,174 | 5,379 | ||||
Loss before taxes | 59,363 | 62,189 | ||||
Income Tax | 64 | 4 | ||||
Net loss | $ | 59,427 | $ | 62,193 | ||
Deemed dividend | $ | 4,084 | $ | 1,643 | ||
Net loss attributable to shareholders | $ | 63,511 | $ | 63,836 | ||
Net loss per share: | ||||||
Basic and diluted loss per share of common stock | $ | 1.93 | $ | 2.54 | ||
Weighted average number of common stock used in computing | 28,371,979 | 23,635,038 | ||||
DARIOHEALTH CORP. AND ITS SUBSIDIARIES | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
U.S. dollars in thousands | ||||||
Year ended | ||||||
December 31, | ||||||
2023 | 2022 | |||||
Cash flows from operating activities: | ||||||
Net loss | $ | (59,427) | $ | (62,193) | ||
Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||
Stock-based compensation, common stock, and payment in stock to directors, | 19,701 | 16,975 | ||||
Depreciation | 473 | 356 | ||||
Change in operating lease right of use assets | 239 | (919) | ||||
Amortization of acquired intangible assets | 4,512 | 4,361 | ||||
Decrease (increase) in trade receivables | 3,261 | (5,106) | ||||
Increase in other accounts receivable, prepaid expense and long-term assets | (426) | (3) | ||||
Decrease (increase) in inventories | 2,894 | (1,728) | ||||
Decrease in trade payables | (1,191) | (2,787) | ||||
Decrease in other accounts payable and accrued expenses | (256) | (1,314) | ||||
Increase (Decrease) in deferred revenues | (323) | 125 | ||||
Change in operating lease liabilities | (124) | 833 | ||||
Remeasurement of earn-out | - | (497) | ||||
Non cash financial expenses | 528 | 4,052 | ||||
Other | (240) | - | ||||
Net cash used in operating activities | (30,379) | (47,845) | ||||
Cash flows from investing activities: | ||||||
Purchase of property and equipment | (584) | (442) | ||||
Purchase of short-term investments | (4,996) | - | ||||
Proceeds from redemption of short-term investments | 5,033 | - | ||||
Purchase of intangible assets | - | (131) | ||||
Net cash used in investing activities | (547) | (573) | ||||
Cash flows from financing activities: | ||||||
Proceeds from issuance of common stock and prefunded warrants, net of issuance costs | 1,614 | 38,288 | ||||
Proceeds from issuance of preferred stock, net of issuance costs | 14,868 | - | ||||
Proceeds from borrowings on Loan agreement | 29,604 | 23,786 | ||||
Repayment of long-term loan | (27,833) | - | ||||
Repurchase and retirement of common stock | - | (134) | ||||
Net cash provided by financing activities | 18,253 | 61,940 | ||||
Increase in cash, cash equivalents and restricted cash and cash equivalents | (12,673) | 13,522 | ||||
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period | 49,470 | 35,948 | ||||
Cash, cash equivalents and restricted cash and cash equivalents at end of period | 36,797 | 49,470 | ||||
Supplemental disclosure of cash flow information: | ||||||
Cash paid during the period for interest on long-term loan | 4,031 | 1,876 | ||||
Non-cash activities: | ||||||
Right-of-use assets obtained in exchange for lease liabilities | 136 | 1,269 | ||||
Earn-out extinguishment as part of WayForward acquisition | - | 328 | ||||
Reconciliation of Revenue to Billing (Non-GAAP) | ||||||||
U.S. dollars in thousands | ||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
GAAP Revenue | 20,352 | 27,656 | 3,616 | 6,809 | ||||
Add: | ||||||||
Change in deferred revenue | (323) | 125 | 313 | 330 | ||||
Billing (Non-GAAP) | 20,029 | 27,781 | 3,929 | 7,139 | ||||
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 | Acquisition costs, | 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) | |||
Three months ended December 31, 2022 | ||||||||
GAAP | Stock-Based | Earn out | Non-GAAP | |||||
Cost of Revenues | $ | 4,077 | 7 | (1,255) | 2,829 | |||
Gross Profit | 2,732 | (7) | 1,255 | 3,980 | ||||
Research and development | 4,782 | (394) | (13) | 4,375 | ||||
Sales and Marketing | 3,920 | (953) | (53) | 2,914 | ||||
General and Administrative | 3,040 | (1,737) | 1,393 | 2,696 | ||||
Total Operating Expenses | 11,742 | (3,084) | 1,327 | 9,985 | ||||
Operating Loss | $ | (9,010) | 3,077 | (72) | (6,005) | |||
Financing income | 3,604 | - | 3,604 | |||||
Income Tax | 3 | 3 | ||||||
Net Loss | $ | (12,617) | 3,077 | (72) | (9,612) | |||
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 | Acquisition costs, | 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) | |||
Twelve months ended December 31, 2022 | ||||||||
GAAP | Stock-Based | Earn out remeasurement, | Non-GAAP | |||||
Cost of Revenues | $ | 18,001 | (66) | (4,462) | 13,473 | |||
Gross Profit | 9,655 | 66 | 4,462 | 14,183 | ||||
Research and development | 19,649 | (3,608) | (46) | 15,995 | ||||
Sales and Marketing | 30,323 | (6,042) | (401) | 23,880 | ||||
General and Administrative | 16,493 | (7,259) | 569 | 9,803 | ||||
Total Operating Expenses | 66,465 | (16,909) | 122 | 49,678 | ||||
Operating Loss | $ | (56,810) | 16,975 | 4,340 | (35,495) | |||
Financing expenses | 5,379 | - | - | 5,379 | ||||
Income Tax | 4 | 4 | ||||||
Net Loss | $ | (62,193) | 16,975 | 4,340 | (40,878) | |||
DarioHealth Corporate Contact
Mary Mooney
VP Marketing
[email protected]
+1-312-593-4280
DarioHealth Investor Relations Contact
Kat Parrella
Investor Relations Manager
[email protected]
+315-378-6922
Media Contact:
Scott Stachowiak
[email protected]
+1-646-942-5630
Logo - https://mma.prnewswire.com/media/1920436/DarioHealth_Logo.jpg
SOURCE DarioHealth Corp.
