DarioHealth Reports Fourth Quarter and Full year 2024 Financial and Operating Results
- 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)
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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 | 4 | 3 | ||||
Preferred stock of $0.0001 par value - authorized: 5,000,000 shares; issued and | *) - | *) - | ||||
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 | 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 | Amortization of | 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 | Amortization of | 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 | Amortization of | 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 | Amortization of | 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
[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
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SOURCE DarioHealth Corp.