• Total Revenue (2024): $27 million, a 32.9% increase from $20.4 million in 2023.
• Q4 Revenue Growth: Over 110% increase compared to Q4 2023 and 2.4% sequential growth from Q3 2024.
• B2B2C Recurring Revenue Growth: Approximately 400% year over year, with 35% from organic expansion.
• Pro Forma Gross Profit Increase: From 51% to 72% for the full business.
• B2B2C Gross Margins: Above 80% for the last three quarters.
• Pro Forma Operating Expenses Reduction: 35% reduction from Q1 2024 to Q4 2024, with a further 20% reduction anticipated by Q4 2025.
• Capital Raise (January 2025): $25.6 million.
• Pro Forma Cash Balance (December 31, 2024): $34.5 million.
• New Client Wins (2024): 36 new contracts, bringing the total client base to 83 organizations.
• Client Renewal Rate: Above 90%.

• Warning! GuruFocus has detected 4 Warning Signs with DRIO.

Release Date: March 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• DarioHealth Corp (NASDAQ:DRIO) reported a 32.9% increase in total revenue for 2024, reaching $27 million, compared to $20.4 million in 2023.
• The company's B2B2C recurring revenue from employers and health plans grew by approximately 400% year over year.
• DarioHealth successfully integrated Twill, creating a comprehensive digital health platform supporting five chronic conditions.
• The company achieved a gross margin above 80% for its B2B2C business over the last three quarters, indicating strong profitability.
• DarioHealth plans to reduce operating expenses by an additional 20% by Q4 2025, aiming for cash flow breakeven by the end of 2025.

Negative Points

• DarioHealth faces risks and uncertainties that could cause actual results to differ materially from forward-looking statements.
• The company is not providing specific guidance for 2025, creating uncertainty about future financial performance.
• DarioHealth's reliance on GLP-1 solutions for growth may pose a risk if market dynamics change or if the adoption rate slows.
• The integration of behavioral health and metabolic solutions is still in progress, with no current accounts taking the full suite.
• The company's revenue stability is challenged by the need to diversify its client base and reduce dependency on a few large accounts.

Q & A Highlights

Q: Can you provide insights on the GLP-1 support programs, specifically regarding the number of patients successfully off-boarded and the percentage of customers adopting this solution? A: Last year, we secured 10 accounts with the GLP-1 solution and had a few hundred B2C users. We conducted a study, to be presented at the ADA in June, which will provide detailed results on off-boarding. We have data on onboarding and retention, and our ability to predict successful onboarding based on collected data.

Q: What are your growth expectations for 2025, particularly regarding the GLP-1 program's contribution to total revenue? A: We aim to grow by more than 50 accounts this year, with a third of last year's signings related to GLP-1. We expect the GLP-1 program to at least double in terms of market penetration and account numbers, significantly impacting our revenue.

Q: How many employers are opting for MediOrbis to prescribe GLP-1, and how does this affect rebate calculations on the pharmacy benefit side? A: Currently, no employers have opted for MediOrbis to prescribe GLP-1, as the capability was launched in January. We identified this as a necessary capability to enhance our product offering, and time will tell how many employers will adopt this option.

Q: What opportunities exist to expand offerings through health plans, particularly for weight loss and cardiometabolic conditions? A: We expect to sign a large health plan offering a full suite of products this year. Our focus is on behavioral health, enabling members to access therapists and integrating with payer networks. We aim to expand cardiometabolic offerings and have a use case for expansion this year.

Q: Can you clarify your expectations for reaching breakeven and the growth target for health plan revenue in 2025? A: We aim for operational breakeven by the end of this year. While not providing specific guidance for 2025, we target a 35% growth rate across all channels. Behavioral health is not expected to surpass cardiometabolic in revenue or win rate.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.