- Generated sequential B2B recurring revenue growth for
the tenth consecutive quarter
- Revenues of $6.15 million
(pre-announced), compared to $6.18
million in the second quarter of 2022, a 0.5% decrease
resulting from a delay with one of our strategic partners
- Improved gross profit margin to 33.7% of revenues for the
second quarter of 2023, up from 18.4% for the second quarter of
2022
- Improved proforma gross profit margin to 51.5% of revenues
for the second quarter of 2023, up from 36.1% for the second
quarter of 2022·
- Reduced operating expenses by 13% in the second quarter of
2023, as compared to the second quarter of 2022
- Launched hypertension solution with a large regional health
plan through partnership with Solera and signed an expansion to
that contract to include diabetes
- Announced contract with pharmacy benefit manager, MedOne,
through Dario's partnership with Sanofi
- Cash and cash equivalents balance as of the end of the
second quarter of 2023 of $52.6
million, which provides estimated runway through
2025
- Company to host investor conference call and webcast at
8:30 a.m. ET today
NEW
YORK, Aug. 10, 2023 /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 2023 and provided a corporate and commercial
update.
"During the second quarter, we saw a continuation of the many
positive trends that have contributed to our improved financial
profile, including growing revenue contribution from highly
scalable Business-to-Business ("B2B") customers, expanding gross
margins, and reduced operating expenses, as compared to the same
period last year," stated Erez
Raphael, Chief Executive Officer of Dario. "Of note, we
increased our gross profit margin to 33.7% in the second quarter of
2023 compared to 18.4% in the second quarter of 2022.
Our proforma gross margins increased to 51.5% in the second
quarter of 2023, up significantly from 36.1% in the second quarter
of 2022, while reducing our operating expense run rate by 13% over
that period."
"Our pre-announced second quarter total revenue was impacted by
the delay of anticipated strategic revenue from one of our
strategic partners. Notwithstanding such delay, our partnership
strategy continues to mature and yield significant opportunities
for long-term growth. Our recurring
Business-to-Business-to-Consumer ("B2B2C") revenue has now
increased for ten consecutive quarters, which we believe speaks to
the value that members place on our highly engaging digital health
offering. We expect to continue to add members to the platform
throughout 2023, as MedOne and our new regional health plan
customer go live on the platform. We delivered the Aetna
private labeled platform in the second quarter; however, we now
expect member enrollment to start in 2024, which may result in a
larger opportunity for new members on our platform as Aetna
is selling through to a larger group of their customers. We believe
a key highlight of this quarter was that our B2B channels were 63%
of total revenues in the quarter ended June
30, 2023, as compared to 46% in the second quarter ended
June 30, 2022.
"Finally, we ended the quarter in a very strong financial
position, with $52.6 million of cash
and cash equivalents, and we anticipate that our growing B2B
revenue combined with our continued expense management will provide
ample cash runway through 2025 to continue to execute against our
strategy," Mr. Raphael concluded.
"While it is still early, we have already seen new customer
pull-through from our strategic partnerships, including, most
recently, MedOne through our partnership with Sanofi US Services
Inc., and a large regional health plan through our partnership with
Solera Health, Inc.," stated Rick
Anderson, President of Dario. "We are also very pleased with
the early traction we are seeing with American Well Corporation,
which comprises approximately 2,000 health plans and hospitals that
reach over 90 million lives. We believe the breadth and diversity
of our partnerships, and the early successes that they are having
selling our solutions, provide external validation from many
sources of the advantages of our fully integrated, multi-chronic
condition platform.
"Complementing the efforts of our strategic partners, we
continue to add to the significant body of research demonstrating
the strong return on investment that we can deliver to payers and
the positive clinical impact we can have on members. In one study
conducted by Sanofi, members with Type 2 diabetes on our platform
were found to incur $5,077 less in
medical costs over the course of a year compared to a matched group
of non-Dario users. A separate Sanofi study demonstrated
significant reductions in glycated hemoglobin ("HbA1c") for Dario
users compared to a matched group of non-users, resulting in a
23.5% reduction in hospitalizations. It is rigorous, real-world
evidence such as this that sets us apart from other digital health
offerings in the market and we anticipate will provide payers the
conviction they need to move forward with Dario.
"Our pipeline continues to grow, driven by our continued focus
on larger B2B opportunities. We anticipate B2B2C revenue to
continue to increase throughout 2023, and more significant growth
beginning in 2024 with new employer programs and Aetna enrollment
anticipated to commence in the first quarter of 2024. With
the Aetna platform delivered , and due to the delays with our other
strategic partner, we expect to continue to see volatility in our
strategic milestone driven revenue in the second half of
2023. We are pleased with our progress with our recurring B2B
revenue growth to date and believe we have set the stage for
accelerating growth through the back half of the year and into
2024," Mr. Anderson concluded.
Q2 2023 and Recent Highlights
- Continued to improve the financial profile of the Company,
driven by the growth in scalable, high margin B2B customers, which
represented 63% of second quarter revenue, combined with prudent
expense management.
- Announced a new contract with a large regional health plan
through Dario's partnership with Solera. The contract, which
launched in late July, will initially offer Dario's hypertension
solution to the plan's members. Recently signed an agreement
to expand this customer to add Dario's diabetes solution.
- Announced a new contract with pharmacy benefits
manager, MedOne, through Dario's strategic partnership with
Sanofi. The contract was launched starting with Dario's diabetes
solution.
- Introduced a new GLP-1 Behavioral Change Program to help
members realize the transformational power of GLP-1s and other
anti-obesity medications while also helping Dario's customers
gain better insights on the impact of these medications across
their populations.
- Announced new research conducted by Sanofi, further
demonstrating the economic and clinical value of Dario's platform.
The first study demonstrated clinically significant differences in
reductions in HbA1c for all Dario users compared to non-users,
resulting in a 23.5% reduction in hospitalizations for Dario users.
In a separate study, an analysis of matched medical claims revealed
$5,077 in incremental medical cost
savings for Dario users living with Type-2 diabetes compared to
non-users.
- Continue to demonstrate the strength of Dario's
multi-condition suite, with more than 50% of pipeline opportunities
for multi-condition contracts.
Financial Results for the Three Months Ended June 30, 2023:
Revenues for the second quarter ended June 30, 2023, were $6.15
million, a 0.5% decrease from $6.18
million for the second quarter ended June 30, 2022, and a decrease of 13% from
$7.07 million for the first quarter
of 2023. The decrease in revenues for the quarter ended
June 30, 2023, as compared to the
quarter ended June 30, 2022, resulted
mainly from lower revenues from the Company's Business-to-Consumer
(B2C) Channel.
Gross profit for the second quarter of 2023 was $2.1 million, an increase of $1 million, compared to gross profit of
$1.1 million for the second quarter
of 2022, and a decrease of $1.1
million from $3.2 million for
the first quarter of 2023. Gross profit as a percentage of revenues
increased to 33.7% in the second quarter of 2023, from 18.4% in the
second quarter of 2022, and decreased from 44.8% in the first
quarter of 2023.
Pro-forma gross profit, excluding $1.1
million of amortization expenses related to the acquisition
of technology, was $3.2 million, or
51.5% of revenues, for the three months ended June 30, 2023, compared to a pro-forma gross
profit of $2.2 million, or 36.1% of
revenues, for the three months ended June
30, 2022, and pro-forma-gross profit of $4.2 million, or 60.1% of revenues, for the three
months ended March 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 second quarter of 2023 were
$16.1 million, compared with
$18.5 million for the second quarter
of 2022, and $15.6 million for the
first quarter of 2023, a decrease of $2.4
million, or 13%, compared to the second quarter of 2022, and
an increase of $0.5 million, or 3.3%,
compared to the first quarter of 2023. The decrease compared to the
second quarter of 2022 resulted mainly from the decrease in our
digital marketing expenses and acquisition related expenses. The
increase compared to the first quarter of 2023 resulted mainly from
an increase in share-based compensation. Total operating expenses
excluding stock-based compensation, amortization of acquisition
related expenses, earn-out measurement, and depreciation for the
second quarter of 2023 were $10.7
million, compared to $13.4
million for the second quarter of 2022, and $10.6 million for the first quarter of 2023.
Operating loss for the second quarter of 2023 was $14 million, a decrease of $3.4 million, or 19.2%, compared to $17.4 million for the second quarter of 2022, and
an increase of $1.6 million, or 13%,
compared to $12.4 million for the
first quarter of 2023. The decrease compared to the second quarter
of 2022 was mainly due to the decrease in operating expenses, and
the increase compared to the first quarter of 2023, was mainly due
to the decrease in the gross profit.
Operating loss excluding stock-based compensation, amortization
of acquisition related expenses earn-out measurement and
depreciation for the second quarter of 2023 was $7.5 million compared to $11.1 million for the second quarter of 2022, and
$6.3 million for the first quarter of
2023.
Net loss was $16.6 million in the
second quarter of 2023, a decrease of $1.4
million, or 8%, compared to a net loss of $18 million in the second quarter of 2022, and an
increase of $3.8 million, or 29.3%,
compared to $12.8 million for the
first quarter of 2023. Net loss excluding stock-based compensation,
amortization if acquisition related expenses, earn-out measurement
and depreciation for the second quarter of 2023 was $10.1 million compared to $11.8 million for the second quarter of 2022 and
$6.8 million in the first quarter of
2023.
Non-GAAP billings for the three months ended June 30, 2023, were $6.0
million, a 1.2% decrease from $6.09
million for the three months ended June 30, 2022. The decrease is a result of lower
sales generated in the B2C channel, in the three months ended
June 30, 2023, compared to the three
months ended June 30, 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."
Financial Results for the Six Months Ended June 30, 2023:
Revenues for the six months ended June
30, 2023, were $13.2 million,
a 7.2% decrease from $14.2 million
for the six months ended June 30,
2022.
Gross profit for the six months ended June 30, 2023, was $5.2
million, an increase of 2.3%, or $119,000, compared to gross profit of
$5.1 million for the six months ended
June 30, 2022.
Pro-forma gross profit, excluding $2.2
million of amortization of expenses related to acquisitions,
was $7.4 million for the six months
ended June 30, 2023, compared to a
proforma gross profit of $7.15
million for the six months ended June
30, 2022. Pro-forma gross profit margin, excluding
amortization of acquisition related expenses, was 56.1% for the six
months ended June 30, 2023, compared
to 50.2% for the six months ended June 30,
2022.
Total operating expenses for the six months ended June 30, 2023, were $31.7
million, a decrease of $6.7
million, or 17.4%, compared with $38.4 million for the six months ended
June 30, 2022. The decrease resulted
from the decrease in sales and marketing expenses. Total operating
expenses excluding stock-based compensation, amortization of
acquisition related expenses, earn-out measurement and depreciation
for the six months ended June 30,
2023, were $21.4 million
compared to $28.3 million for the six
months ended June 30, 2022.
Operating loss for the six months ended June 30, 2023, decreased by $6.8 million to $26.4
million, compared to a $33.2
million operating loss for the six months ended June 30, 2022. This decrease is mainly due to the
decrease in operating expenses.
Net loss was $29.4 million for the
six months ended June 30, 2023,
compared to a net loss of $33.9
million for the six months ended June
30, 2022. The decrease was driven by lower operating
expenses, partially offset by higher financing expenses.
Non-GAAP billings for the six months ended June 30, 2023, were $12.7
million, a 9.7% decrease from $14.05
million for the six months ended June
30, 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,
August 10, 8:30am ET
Dial-in: 1-877-451-6152 (domestic) or 1-201-389-0879
(international)
Call me™:
https://callme.viavid.com/viavid/?callme=true&passcode=13732068&h=true&info=company-email&r=true&B=6
Participants can use Guest dial-in #s 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.
Conference title: DarioHealth Corp. – Second Quarter 2023
Results Call
Webcast link:
https://viavid.webcasts.com/starthere.jsp?ei=1621054&tp_key=21b533c2ce
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, Sep. 10, 2023. To listen to the replay,
dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international)
and use replay passcode 13739414.
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 DarioHealth 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 it discusses its expectation to continue to add
members to its platform throughout 2023, its expected cash runway,
its anticipation that B2B2C revenue will increase throughout 2023
and 2024, its expectation that new employer programs and Aetna
enrollment will commence in the first quarter of 2024, and its
anticipation that there may be continued volatility in its
strategic milestone driven revenue in the second half of 2023.
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. 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
|
|
INTERIM CONSOLIDATED
BALANCE SHEETS
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
|
Unaudited
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
52,602
|
|
$
|
49,357
|
Short-term restricted
bank deposits
|
|
|
393
|
|
|
165
|
Trade
receivables
|
|
|
4,821
|
|
|
6,416
|
Inventories
|
|
|
5,914
|
|
|
7,956
|
Other accounts
receivable and prepaid expenses
|
|
|
2,047
|
|
|
1,630
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
65,777
|
|
|
65,524
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS:
|
|
|
|
|
|
|
Deposits
|
|
|
6
|
|
|
6
|
Operating lease right
of use assets
|
|
|
1,071
|
|
|
1,206
|
Long-term
assets
|
|
|
170
|
|
|
111
|
Property and equipment,
net
|
|
|
817
|
|
|
788
|
Intangible assets,
net
|
|
|
7,678
|
|
|
9,916
|
Goodwill
|
|
|
41,640
|
|
|
41,640
|
|
|
|
|
|
|
|
Total non-current
assets
|
|
|
51,382
|
|
|
53,667
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
117,159
|
|
$
|
119,191
|
|
|
|
|
|
|
|
|
DARIOHEALTH CORP.
AND ITS SUBSIDIARIES
|
INTERIM CONSOLIDATED
BALANCE SHEETS
|
U.S. dollars in
thousands (except stock and stock data)
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
|
Unaudited
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Trade
payables
|
|
$
|
1,451
|
|
$
|
2,322
|
Deferred
revenues
|
|
|
789
|
|
|
1,320
|
Operating lease
liabilities
|
|
|
145
|
|
|
293
|
Other accounts payable
and accrued expenses
|
|
|
5,691
|
|
|
6,592
|
Loan,
current
|
|
|
—
|
|
|
8,823
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
8,076
|
|
|
19,350
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
|
885
|
|
|
827
|
Long-term
loan
|
|
|
29,094
|
|
|
18,105
|
Warrant
liability
|
|
|
664
|
|
|
910
|
Other long-term
liabilities
|
|
|
36
|
|
|
—
|
|
|
|
|
|
|
|
Total non-current
liabilities
|
|
|
30,679
|
|
|
19,842
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Common stock of $0.0001
par value - authorized: 160,000,000 shares; issued and
outstanding: 26,784,674 and 25,724,470 shares on
June 30, 2023 and
December 31, 2022, respectively
|
|
|
3
|
|
|
3
|
Preferred stock of
$0.0001 par value - authorized: 5,000,000 shares; issued and
outstanding: 18,959 and 3,567 shares on June 30, 2023
and
December 31, 2022, respectively
|
|
|
*) -
|
|
|
*) -
|
Additional paid-in
capital
|
|
|
395,352
|
|
|
365,846
|
Accumulated
deficit
|
|
|
(316,951)
|
|
|
(285,850)
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
|
78,404
|
|
|
79,999
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
117,159
|
|
$
|
119,191
|
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,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
Unaudited
|
|
Unaudited
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Services
|
|
$
|
4,149
|
|
$
|
3,265
|
|
$
|
9,406
|
|
$
|
8,249
|
Consumer
hardware
|
|
|
2,003
|
|
|
2,918
|
|
|
3,812
|
|
|
5,993
|
Total
revenues
|
|
|
6,152
|
|
|
6,183
|
|
|
13,218
|
|
|
14,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Services
|
|
|
1,625
|
|
|
1,259
|
|
|
3,102
|
|
|
1,711
|
Consumer
hardware
|
|
|
1,359
|
|
|
2,692
|
|
|
2,699
|
|
|
5,382
|
Amortization of
acquired intangible assets
|
|
|
1,094
|
|
|
1,094
|
|
|
2,175
|
|
|
2,026
|
Total cost of
revenues
|
|
|
4,078
|
|
|
5,045
|
|
|
7,976
|
|
|
9,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2,074
|
|
|
1,138
|
|
|
5,242
|
|
|
5,123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
$
|
5,222
|
|
$
|
4,137
|
|
$
|
10,387
|
|
$
|
10,064
|
Sales and
marketing
|
|
|
6,460
|
|
|
9,297
|
|
|
12,800
|
|
|
18,832
|
General and
administrative
|
|
|
4,412
|
|
|
5,059
|
|
|
8,483
|
|
|
9,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
16,094
|
|
|
18,493
|
|
|
31,670
|
|
|
38,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
14,020
|
|
|
17,355
|
|
|
26,428
|
|
|
33,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total financial
expenses, net
|
|
|
2,565
|
|
|
672
|
|
|
2,982
|
|
|
716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before
taxes
|
|
|
16,585
|
|
|
18,027
|
|
|
29,410
|
|
|
33,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
16,585
|
|
$
|
18,028
|
|
$
|
29,410
|
|
$
|
33,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deemed
dividend
|
|
$
|
1,691
|
|
$
|
433
|
|
$
|
1,691
|
|
$
|
884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to shareholders
|
|
$
|
18,276
|
|
$
|
18,461
|
|
$
|
31,101
|
|
$
|
34,828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share of common stock
|
|
$
|
0.58
|
|
$
|
0.74
|
|
$
|
1.03
|
|
$
|
1.43
|
Weighted average number
of common stock used
in computing basic and diluted net loss per share
|
|
|
28,186,345
|
|
|
22,426,019
|
|
|
27,879,881
|
|
|
21,925,089
|
DARIOHEALTH CORP.
AND ITS SUBSIDIARIES
|
INTERIM CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
|
Six months
ended
|
|
|
June 30,
|
|
|
2023
|
|
2022
|
|
|
Unaudited
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(29,410)
|
|
$
|
(33,944)
|
Adjustments required to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
Stock-based
compensation, common stock, and payment in stock to directors,
employees,
consultants, and service providers
|
|
|
10,148
|
|
|
8,972
|
Depreciation
|
|
|
191
|
|
|
154
|
Change in operating
lease right of use assets
|
|
|
135
|
|
|
75
|
Amortization of
acquired intangible assets
|
|
|
2,238
|
|
|
2,087
|
Decrease (increase) in
trade receivables
|
|
|
1,595
|
|
|
(1,828)
|
Increase in other
accounts receivable, prepaid expense and long-term
assets
|
|
|
(476)
|
|
|
(562)
|
Decrease (increase) in
inventories
|
|
|
2,042
|
|
|
(2,119)
|
Decrease in trade
payables
|
|
|
(871)
|
|
|
(1,838)
|
Decrease in other
accounts payable and accrued expenses
|
|
|
(865)
|
|
|
(1,107)
|
Decrease in deferred
revenues
|
|
|
(531)
|
|
|
(196)
|
Change in operating
lease liabilities
|
|
|
(90)
|
|
|
(98)
|
Remeasurement of
earn-out
|
|
|
—
|
|
|
939
|
Non cash financial
expenses
|
|
|
1,501
|
|
|
256
|
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
|
(14,393)
|
|
|
(29,209)
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(220)
|
|
|
(225)
|
Purchase of short-term
investments
|
|
|
(4,996)
|
|
|
-
|
Proceeds from
redemption of short-term investments
|
|
|
5,033
|
|
|
-
|
Cash paid as part of
Upright Technologies Ltd. acquisition
|
|
|
-
|
|
|
(115)
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
(183)
|
|
|
(340)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from issuance
of common stock and prefunded warrants, net of issuance
costs
|
|
|
1,410
|
|
|
38,023
|
Proceeds from issuance
of preferred stock, net of issuance costs
|
|
|
14,868
|
|
|
-
|
Proceeds from
borrowings on credit 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
|
|
|
18,049
|
|
|
61,675
|
|
|
|
|
|
|
|
Increase in cash, cash
equivalents and restricted cash and cash equivalents
|
|
|
3,473
|
|
|
32,126
|
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
|
|
$
|
52,943
|
|
$
|
68,074
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
|
|
Cash paid during the
period for interest on long-term loan
|
|
$
|
2,044
|
|
$
|
181
|
Non-cash
activities:
|
|
|
|
|
|
|
Right-of-use assets
obtained in exchange for lease liabilities
|
|
$
|
14
|
|
$
|
58
|
Reconciliation of
Revenue to Billing (Non-GAAP)
|
U.S. dollars in
thousands
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
GAAP Revenue
|
|
6,152
|
|
6,183
|
|
13,218
|
|
14,242
|
Add:
|
|
|
|
|
|
|
|
|
Change in deferred
revenue
|
|
(136)
|
|
(94)
|
|
(531)
|
|
(196)
|
|
|
|
|
|
|
|
|
|
Billing
(Non-GAAP)
|
|
6,016
|
|
6,089
|
|
12,687
|
|
14,046
|
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)
|
Three months ended
June 30, 2022
|
|
|
GAAP
|
Stock-Based
Compensation
Expenses
|
Earn-out
remeasurement,
amortization of
acquisition
related expenses and depreciation
of fixed assets
|
Non-GAAP
|
Cost of
Revenues
|
$
|
5,045
|
|
(25)
|
|
(1,121)
|
|
3,899
|
Gross Profit
|
|
1,138
|
|
25
|
|
1,121
|
|
2,284
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
4,137
|
|
(560)
|
|
(10)
|
|
3,567
|
Sales and
Marketing
|
|
9,297
|
|
(1,481)
|
|
(263)
|
|
7,553
|
General and
Administrative
|
|
5,059
|
|
(1,563)
|
|
(1,206)
|
|
2,290
|
Total Operating
Expenses
|
|
18,493
|
|
(3,604)
|
|
(1,479)
|
|
13,410
|
Operating
Loss
|
$
|
(17,355)
|
|
3,629
|
|
2,600
|
|
(11,126)
|
Financing
income
|
|
672
|
|
-
|
|
|
|
672
|
Income Tax
|
|
1
|
|
|
|
|
|
1
|
Net Loss
|
$
|
(18,028)
|
|
3,629
|
|
2,600
|
|
(11,799)
|
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)
|
Six months ended
June 30, 2022
|
|
|
GAAP
|
Stock-Based
Compensation
Expenses
|
Earn-out
remeasurement,
amortization of
acquisition
related expenses
and depreciation
of fixed assets
|
Non-GAAP
|
Cost of
Revenues
|
$
|
9,119
|
|
(48)
|
|
(2,075)
|
|
6,996
|
Gross Profit
|
|
5,123
|
|
48
|
|
2,075
|
|
7,246
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
10,064
|
|
(2,048)
|
|
(21)
|
|
7,995
|
Sales and
Marketing
|
|
18,832
|
|
(3,132)
|
|
(304)
|
|
15,396
|
General and
Administrative
|
|
9,454
|
|
(3,744)
|
|
(781)
|
|
4,929
|
Total Operating
Expenses
|
|
38,350
|
|
(8,924)
|
|
(1,106)
|
|
28,320
|
Operating
Loss
|
$
|
(33,227)
|
|
8,972
|
|
3,181
|
|
(21,074)
|
Financing
income
|
|
716
|
|
-
|
|
-
|
|
716
|
Income Tax
|
|
1
|
|
|
|
|
|
1
|
Net Loss
|
$
|
(33,944)
|
|
8,972
|
|
3,181
|
|
(21,791)
|
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DarioHealth corporate contact:
Mary Mooney
VP Marketing
Mary@dariohealth.com
+1-312-593-4280
Media contact:
Scott
Stachowiak
Scott.Stachowiak@russopartnersllc.com
+1-646-942-5630
View original
content:https://www.prnewswire.com/news-releases/dariohealth-reports-second-quarter-2023-financial-and-operating-results-301897707.html
SOURCE DarioHealth Corp.