DarioHealth Reports Second Quarter 2024 Financial and Operating Results
- Q2 revenue of $6.26 million reflects an increase of 8.6% over Q1 2024, and an increase of 1.7% over Q2 of 2023, driven primarily by increased B2B2C revenues
- Q2 commercial and consumer revenues totaled $7.34 million before a non-recurring price concession in collaboration with a pharma partner, compared to $3.57 million for Q2 of 2023, representing a 105% increase
- Core B2B2C revenue channel, recurring revenues from employers and health plans in the second quarter totaled $5.5 million, an increase of 315% year over year and 60% sequentially from the first quarter of 2024
- Made progress on collaboration with existing and potential pharma clients to accelerate a transformation to a new, recurring, and more stable revenue-based business model in our pharma channel, which is currently milestone based.
- Strong business momentum on cross selling of Twill offering to Dario clients with at least 10 initial clients
- Executed on Dario-Twill synergies that expect to reduce operating expenses by approximately 40% by Q1 2025 compared to Q1 2024, aiding in an expected reduction in operating losses of at least 70% by Q1 2025
- Saw increased GLP-1 product adoption across new and existing clients seeking our metabolic solutions, with 9 clients implementing already and several more expected in 2024.
- Company expects to reach cashflow breakeven by the end of 2025
- Ended Q2 2024 with cash equivalents of $22.9 million
- Company to host investor conference call and webcast at 8:30 a.m. ET today
Q2 2024 and Recent Highlights
NEW YORK, Aug. 8, 2024 /PRNewswire/ -- DarioHealth Corp. (NASDAQ:DRIO) ("Dario" or the "Company"), a leader in the global digital health market, today reported financial results for the second quarter 2024.
In the second quarter, we drove significant growth in our core business-to-business-to-consumer (B2B2C) channel. Our B2B2C channel grew 60% sequentially over the first quarter of 2024, and 315% over the second quarter of 2023, primarily due to Aetna customer sign on, expansions of existing customer contracts, new customer launches, and the addition of Twill, Inc. ("Twill") revenues following our acquisition of Twill in the first quarter of 2024. The organic sequential growth of this channel is 28%. Our legacy direct to consumer (B2C) business remains at its consistent run rate at $7.6 million.
We are continuing the momentum of scaling of our business and realizing the benefits of the strategic decisions we have made over the past few quarters. Our growing confidence in our ability to meet our target of cash flow breakeven by the end of 2025 is supported by recent progress in our core high margin B2B2C channel that reached $21.6 million in annual recurring revenues (ARR). We signed multiple contracts in 2024 so far, saw more employers sign on to the Aetna platform, and many of Dario's clients have agreed to adopt the Twill platform, providing validation that our cross-selling efforts will help further us towards reaching cash flow breakeven.
"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. 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," stated Erez Raphael, Chief Executive Officer of Dario.
"Our core B2B2C revenue saw an increase in the second quarter as we saw the significant impact of new customer launches, customer expansions, and the transformative impact of the Twill acquisition," stated Steven Nelson, Dario's Chief Commercial Officer. "We continue to see meaningful traction with our GLP-1 product among new and existing contracts, with 9 clients already implementing the product and several others in the pipeline. We see an increasing opportunity for revenue growth with the GLP-1 product as more and more clients have expressed interest in this product each quarter. Aetna continues to add customers to its existing Mind Companion platform, a trend we expect to continue. We've signed agreements to expand with a health plan customer and other off-cycle employers, which are anticipated to launch this year.
Our commercial pharma channel, traditionally reliant on milestone-based revenue, presents a significant growth opportunity. The industry's shift towards direct-to-consumer models aligns perfectly with our expanded capabilities following the acquisition of Twill. We are confident that our Dario-Twill consumer hub platform, coupled with our enhanced offerings, positions us as a premier partner for pharma companies seeking to engage patients effectively. We are actively collaborating with existing and potential pharma clients to accelerate this transformation and maximize the value of our new, recurring, and more stable revenue-based business model. To facilitate this strategic transition, we have granted a one-time price concession of $1.1 million to a strategic partner. This decision reflects our commitment to balancing short-term adjustments with long-term growth prospects. While we anticipate a potential near-term reduction in channel revenues as we focus on securing long-term, sustainable growth, we are actively collaborating with existing and potential clients to accelerate this transformation and maximize the value of our new business model.
We see a growing opportunity to expand on our foundational artificial intelligence (AI) capabilities given the data and tools that have had for years and are now of growing importance to our business model. We believe that the integration of generative AI and microservices is set to revolutionize drug discovery, consumer engagement, and personalization, with proprietary data sets poised for internal and external monetization, and we have a market leading capability to capitalize on this movement. With our strong cash position, we believe that we are well-equipped to execute our strategy and solidify Dario's leadership in the digital health space," concluded Mr. Nelson.
Additional Q2 2024 and Recent Highlights
- Signed multiple new customer contracts and obtained commitments from some Dario clients to adopt the Twill platform beginning in January 2025, because of cross selling efforts.
- Announced a strategic management restructuring with the appointment of Steven Nelson as Dario's inaugural Chief Commercial Officer.
- Announced two new studies presented at the 84th Annual American Diabetes Association (ADA) Scientific Sessions in Orlando, demonstrating 12 months of sustained healthy behavior change for Dario members taking a GLP-1.
- Announced new research published in the leading peer-reviewed journal for digital health and medicine, Journal of Internet Medicine (JMIR) demonstrating a clinically significant reduction in blood glucose levels for members using Dario to manage weight alongside diabetes.
- Announced two new studies published in the leading peer-reviewed journal for digital health and medicine, Journal of Internet Medicine (JMIR), including a Randomized Controlled Trial (RCT) demonstrating the impact of a digital stress reduction program for teens.
Second Quarter 2024 Results Summary
Revenues for the second quarter ended June 30, 2024, were $6.26 million, a 1.7% increase from $6.15 million for the second quarter ended June 30, 2023, and an increase of 8.6% from $5.76 million for the first quarter of 2024. The increase compared to the quarter ended June 30, 2023, 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 second quarter ended June 30, 2024, were $5.5 million compared to $1.34 million in the quarter ended June 30, 2023, representing an increase of 315%, and compared to $3.5 million in the first quarter of 2024, representing an increase of 59.7% sequentially.
Gross profit for the second quarter ended June 30, 2024, was $2.76 million, an increase of $682,000 or 32.9%, compared to gross profit of $2.07 million for the second quarter of 2023, and an increase of 13.3% from $2.43 for the first quarter of 2024. The reason for this increase is the increase in our B2B2C revenues. Gross profit as a percentage of revenues increased to 44.1% in the second quarter of 2024, from 33.7% in the second quarter of 2023, and 42.2% in the first quarter of 2024.
Pro-forma gross profit, excluding $1.23 million of amortization expenses related to the acquisition of technology, was $4.0 million, or 63.8% of revenues, for the three months ended June 30, 2024, compared to pro-forma gross profit of $3.17 million, or 51.5% of revenues, for the three months ended June 30, 2023, and a pro-forma gross profit of $3.6 million, or 62.4% of revenues, for the three months ended March 31, 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 second quarter ended June 30, 2024, were $18.9 million compared with $16.1 million for the second quarter ended June 30, 2023, and $20.3 million for the first quarter of 2024, an increase of $2.8 million, or 17.7%, compared to the second quarter of 2023, and a decrease of $1.4 million, or 6.6%, compared to the first quarter of 2024. The increase compared to the second quarter ended June 30, 2023, resulted mainly from the acquisition of Twill. The decrease compared to the first quarter of 2024 resulted mainly from a decrease in stock-based compensation expenses.
Total operating expenses excluding stock-based compensation, acquisition related expenses and depreciation for the second quarter of 2024 were $14.7 million compared to $10.7 million for the second quarter of 2023, and $12.7 million for the first quarter of 2024.
Operating loss for the second quarter of 2024 was $16.2 million, an increase of $2.2 million, or 15.5%, compared to $14 million for the second quarter of 2023, and a decrease of $1.7 million, or 9.3%, compared to $17.9 million for the first quarter of 2024. The increase compared to the second quarter of 2023 was due to the increase in operating expenses. The decrease compared to the first quarter of 2024 was due to the decrease in operating expenses.
Financing income was $2.6 million for the second quarter of 2024, compared to financing expense of $2.6 million for the second quarter of 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 $13.6 million in the second quarter of 2024, a decrease of $3.0 million, or 17.9%, compared to a net loss of $16.6 million in the second quarter of 2023, and an increase of $6.4 million, or 89.7%, compared to $7.2 million in the first quarter of 2024.
Net loss excluding stock-based compensation, acquisition related expenses and depreciation for the second quarter of 2024 was $8.1 million compared to a loss of $10 million for the second quarter of 2023, and a profit of $1.6 million in the first quarter of 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."
Financial Results for the Six Months Ended June 30, 2024:
Revenues for the six months ended June 30, 2024, were $12 million, a 9.1% decrease from $13.2 million for the six months ended June 30, 2023.
Gross profit for the six months ended June 30, 2024, was $5.19 million, a decrease of 1%, or $54,000, compared to gross profit of $5.24 million for the six months ended June 30, 2023.
Pro-forma gross profit, excluding $2.4 million of amortization of expenses related to acquisitions, was $7.6 million for the six months ended June 30, 2024, compared to a pro-forma gross profit of $7.4 million for the six months ended June 30, 2023. Pro-forma gross profit margin, excluding amortization of acquisition related expenses, was 63.1% for the six months ended June 30, 2024, compared to 56.1% for the six months ended June 30, 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 six months ended June 30, 2024, were $39.2 million, an increase of $7.5 million, or 23.9%, compared with $31.7 million for the six months ended June 30, 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 six months ended June 30, 2024, were $27.4 million compared to $21.4 million for the six months ended June 30, 2023.
Operating loss for the six months ended June 30, 2024, increased by $7.6 million to $34.0 million, compared to a $26.4 million operating loss for the six months ended June 30, 2023. This increase is mainly due to the increase in operating expenses.
Financing income was $11.3 million for the six months ended June 30 2024, compared to financing expense of $3.0 million for the six months ended June 30, 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 $20.8 million for the six months ended June 30, 2024, compared to a net loss of $29.4 million for the six months ended June 30, 2023. The decrease was driven by the increase in financing income.
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, August 8, 8:30am ET
Dial-in Number: 1-800-717-1738 (domestic) or 1-646-307-1865 (international)
Call me™: https://emportal.ink/3V5ogDP
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=1672806&tp_key=f245af335e
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, September 8th, 2024. To listen to the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and use replay passcode 1163410.
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 its expected reduced operating expenses expected by Q1 2025 and the resulting operating losses by such time period, that it expects to reach breakeven by the end of 2025, its expected breakeven timeline is supported by its progress in its high margin B2B2C channel, its expected ARR in its B2B2C channel, that client adoption of the Twill platform will help it towards it cross-selling efforts, that it anticipates a significant reduction in operating losses over the next three quarters driven by robust revenue growth and aggressive cost-cutting measures, that its cost cutting measures are expected to yield a 41% decrease in operating expenses from the first quarter of 2024 to the first quarter of 2025, that it projects gross margin to climb to 80% by the first quarter of next year, that it believes it has a clear and direct path to reaching profitability in the second half of 2025, the expected timing of its client launch, that it sees an increasing opportunity for revenue growth with the GLP-1 product as more and more clients express interest in this product each quarter, that Aetna continues to add customers to the existing Mind Companion platform, a trend it expects to continue, that its commercial pharma channel, traditionally reliant on milestone-based revenue, presents a significant growth opportunity, thar while it anticipates a potential near-term reduction in channel revenues as it focuses on securing long-term, sustainable growth, it is actively collaborating with existing and potential clients to accelerate this transformation and maximize the value of its new business model, and that with its strong cash position, it believes that it is well-equipped to execute its strategy and solidify Dario's leadership in the digital health space. 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 | |||||
INTERIM CONSOLIDATED BALANCE SHEETS | |||||
U.S. dollars in thousands | |||||
June 30, | December 31, | ||||
2024 | 2023 | ||||
Unaudited | |||||
ASSETS | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | $ | 22,938 | $ | 36,797 | |
Short-term restricted bank deposits | 859 | 292 | |||
Trade receivables, net | 6,731 | 3,155 | |||
Inventories | 5,133 | 5,062 | |||
Other accounts receivable and prepaid expenses | 3,679 | 2,024 | |||
Total current assets | 39,340 | 47,330 | |||
NON-CURRENT ASSETS: | |||||
Deposits | 6 | 6 | |||
Operating lease right of use assets | 1,547 | 967 | |||
Long-term assets | 134 | 143 | |||
Property and equipment, net | 1,334 | 899 | |||
Intangible assets, net | 22,346 | 5,404 | |||
Goodwill | 57,427 | 41,640 | |||
Total non-current assets | 82,794 | 49,059 | |||
Total assets | $ | 122,134 | $ | 96,389 | |
DARIOHEALTH CORP. AND ITS SUBSIDIARIES | ||||
INTERIM CONSOLIDATED BALANCE SHEETS | ||||
U.S. dollars in thousands (except stock and stock data) | ||||
June 30, | December 31, | |||
2024 | 2023 | |||
Unaudited | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
CURRENT LIABILITIES: | ||||
Trade payables | $ | 3,351 | $ | 1,131 |
Deferred revenues | 1,515 | 997 | ||
Operating lease liabilities | 884 | 111 | ||
Other accounts payable and accrued expenses | 6,475 | 6,300 | ||
Current maturity of long-term loan | 5,191 | 3,954 | ||
Total current liabilities | 17,416 | 12,493 | ||
NON-CURRENT LIABILITIES | ||||
Operating lease liabilities | 1,118 | 885 | ||
Long-term loan | 23,440 | 24,591 | ||
Warrant liability | 12,054 | 240 | ||
Other long-term liabilities | 51 | 36 | ||
Total non-current liabilities | 36,663 | 25,752 | ||
STOCKHOLDERS' EQUITY | ||||
Common stock of $0.0001 par value - authorized: 160,000,000 shares; issued and outstanding: 30,024,275 and 27,191,849 shares on June 30, 2024 and December 31, 2023, respectively | 3 | 3 | ||
Preferred stock of $0.0001 par value - authorized: 5,000,000 shares; issued and outstanding: 40,331 and 18,959 shares on June 30, 2024 and December 31, 2023, respectively | *) - | *) - | ||
Additional paid-in capital | 431,526 | 407,502 | ||
Accumulated deficit | (363,474) | (349,361) | ||
Total stockholders' equity | 68,055 | 58,144 | ||
Total liabilities and stockholders' equity | $ | 122,134 | $ | 96,389 |
DARIOHEALTH CORP. AND ITS SUBSIDIARIES | |||||||||||
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||||||||||
U.S. dollars in thousands (except stock and stock data) | |||||||||||
Three months ended | Six months ended | ||||||||||
June 30, | June 30, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Unaudited | Unaudited | ||||||||||
Revenues: | |||||||||||
Services | $ | 4,660 | $ | 4,149 | $ | 8,820 | $ | 9,406 | |||
Consumer hardware | 1,595 | 2,003 | 3,193 | 3,812 | |||||||
Total revenues | 6,255 | 6,152 | 12,013 | 13,218 | |||||||
Cost of revenues: | |||||||||||
Services | 960 | 1,625 | 1,925 | 3,102 | |||||||
Consumer hardware | 1,306 | 1,359 | 2,504 | 2,699 | |||||||
Amortization of acquired intangible assets | 1,233 | 1,094 | 2,396 | 2,175 | |||||||
Total cost of revenues | 3,499 | 4,078 | 6,825 | 7,976 | |||||||
Gross profit | 2,756 | 2,074 | 5,188 | 5,242 | |||||||
Operating expenses: | |||||||||||
Research and development | $ | 6,810 | $ | 5,222 | $ | 13,452 | $ | 10,387 | |||
Sales and marketing | 7,132 | 6,460 | 14,042 | 12,800 | |||||||
General and administrative | 5,005 | 4,412 | 11,740 | 8,483 | |||||||
Total operating expenses | 18,947 | 16,094 | 39,234 | 31,670 | |||||||
Operating loss | 16,191 | 14,020 | 34,046 | 26,428 | |||||||
Total financial expenses (income), net | (2,581) | 2,565 | (11,267) | 2,982 | |||||||
Loss before taxes | 13,610 | 16,585 | 22,779 | 29,410 | |||||||
Income Tax | — | — | 1,994 | — | |||||||
Net loss | $ | 13,610 | $ | 16,585 | $ | 20,785 | $ | 29,410 | |||
Other comprehensive loss: | |||||||||||
Deemed dividend (contribution) | $ | (8,706) | $ | 1,691 | $ | (6,672) | $ | 1,691 | |||
Net loss attributable to common shareholders | $ | 4,904 | $ | 18,276 | $ | 14,113 | $ | 31,101 | |||
Net loss per share: | |||||||||||
Basic and diluted loss per share of common stock | $ | 0.08 | $ | 0.58 | $ | 0.27 | $ | 1.03 | |||
Weighted average number of common stock used in computing basic and diluted net loss per share | 39,830,793 | 28,186,345 | 37,778,087 | 27,879,881 | |||||||
DARIOHEALTH CORP. AND ITS SUBSIDIARIES | |||||
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
U.S. dollars in thousands | |||||
Six months ended | |||||
June 30, | |||||
2024 | 2023 | ||||
Unaudited | |||||
Cash flows from operating activities: | |||||
Net loss | $ | (20,785) | $ | (29,410) | |
Adjustments required to reconcile net loss to net cash used in operating activities: | |||||
Stock-based compensation | 10,420 | 10,148 | |||
Depreciation and impairment | 648 | 191 | |||
Change in operating lease right of use assets | 425 | 135 | |||
Amortization of acquired intangible assets | 2,516 | 2,238 | |||
Decrease (increase) in trade receivables, net | (247) | 1,595 | |||
Increase in other accounts receivable, prepaid expense and long-term assets | (1,171) | (476) | |||
Decrease (increase) in inventories | (71) | 2,042 | |||
Decrease in trade payables | (190) | (871) | |||
Decrease in other accounts payable and accrued expenses | (3,034) | (865) | |||
Decrease in deferred revenues | (224) | (531) | |||
Change in operating lease liabilities | (417) | (90) | |||
Change in fair value of warrant liability | (12,643) | — | |||
Non-Cash financial expenses | 204 | 1,501 | |||
Other | 96 | — | |||
Net cash used in operating activities | (24,473) | (14,393) | |||
Cash flows from investing activities: | |||||
Purchase of property and equipment | (85) | (220) | |||
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 | (8,881) | (183) | |||
Cash flows from financing activities: | |||||
Proceeds from issuance of common stock, net of issuance costs | - | 1,410 | |||
Proceeds from issuance of preferred stock, net of issuance costs | 20,206 | 14,868 | |||
Proceeds from borrowings on credit agreement | — | 29,604 | |||
Repayment of long-term loan | — | (27,833) | |||
Net cash provided by financing activities | 20,206 | 18,049 | |||
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents | (13,148) | 3,473 | |||
Effect of exchange rate differences on cash, cash equivalents and restricted cash and cash equivalents | (48) | — | |||
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 | $ | 23,601 | $ | 52,943 | |
Supplemental disclosure of cash flow information: | |||||
Cash paid during the period for interest on long-term loan | $ | 1,972 | $ | 2,044 | |
Non-cash activities: | |||||
Right-of-use assets obtained in exchange for lease liabilities | $ | 428 | $ | 14 | |
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 June 30, 2024 | ||||||||
GAAP | Stock-Based Compensation Expenses | Amortization of acquisition related expenses and depreciation of fixed assets | Non-GAAP | |||||
Cost of Revenues | $ | 3,499 | (5) | (1,248) | 2,246 | |||
Gross Profit | 2,756 | 5 | 1,248 | 4,009 | ||||
Research and development | 6,810 | (448) | (63) | 6,299 | ||||
Sales and Marketing | 7,132 | (1,650) | (94) | 5,388 | ||||
General and Administrative | 5,005 | (1,459) | (553) | 2,993 | ||||
Total Operating Expenses | 18,947 | (3,557) | (710) | 14,680 | ||||
Operating Loss | $ | (16,191) | 3,562 | 1,958 | (10,671) | |||
Financing expenses | (2,581) | - | - | (2,581) | ||||
Income Tax | - | - | ||||||
Net Loss | $ | (13,610) | 3,562 | 1,958 | (8,090) | |||
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 June 30, 2023 | |||||||
GAAP | Stock-Based Compensation Expenses | Amortization of acquisition related expenses and depreciation of fixed assets | Non-GAAP | ||||
Cost of Revenues | $ | 4,078 | (17) | (1,124) | 2,937 | ||
Gross Profit | 2,074 | 17 | 1,124 | 3,215 | |||
Research and development | 5,222 | (1,302) | (16) | 3,904 | |||
Sales and Marketing | 6,460 | (1,824) | (45) | 4,591 | |||
General and Administrative | 4,412 | (2,149) | (34) | 2,229 | |||
Total Operating Expenses | 16,094 | (5,275) | (95) | 10,724 | |||
Operating Loss | $ | (14,020) | 5,292 | 1,219 | (7,509) | ||
Financing expenses | 2,565 | - | - | 2,565 | |||
Income Tax | - | - | |||||
Net Loss | $ | (16,585) | 5,292 | 1,219 | (10,074) | ||
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 | |||||||
Six months ended June 30, 2024 | |||||||
GAAP | Stock-Based Compensation Expenses | Amortization of acquisition related expenses and depreciation of fixed assets | Non-GAAP | ||||
Cost of Revenues | $ | 6,825 | (12) | (2,425) | 4,388 | ||
Gross Profit | 5,188 | 12 | 2,425 | 7,625 | |||
Research and development | 13,452 | (1,563) | (124) | 11,765 | |||
Sales and Marketing | 14,042 | (3,406) | (170) | 10,466 | |||
General and Administrative | 11,740 | (5,439) | (1,158) | 5,143 | |||
Total Operating Expenses | 39,234 | (10,408) | (1,452) | 27,374 | |||
Operating Loss | $ | (34,046) | 10,420 | 3,877 | (19,749) | ||
Financing expenses | (11,267) | - | - | (11,267) | |||
Income Tax | (1,994) | (1,994) | |||||
Net Loss | $ | (20,785) | 10,420 | 3,877 | (6,488) | ||
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 | |||||||
Six months ended June 30, 2023 | |||||||
GAAP | Stock-Based Compensation Expenses | Amortization of acquisition related expenses and depreciation of fixed assets | Non-GAAP | ||||
Cost of Revenues | $ | 7,976 | (44) | (2,236) | 5,696 | ||
Gross Profit | 5,242 | 44 | 2,236 | 7,522 | |||
Research and development | 10,387 | (2,487) | (35) | 7,865 | |||
Sales and Marketing | 12,800 | (3,671) | (89) | 9,040 | |||
General and Administrative | 8,483 | (3,946) | (69) | 4,468 | |||
Total Operating Expenses | 31,670 | (10,104) | (193) | 21,373 | |||
Operating Loss | $ | (26,428) | 10,148 | 2,429 | (13,851) | ||
Financing expenses | 2,982 | - | - | 2,982 | |||
Income Tax | - | - | |||||
Net Loss | $ | (29,410) | 10,148 | 2,429 | (16,833) | ||
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.