DarioHealth Reports Fourth Quarter and Full year 2024 Financial and Operating Results

PR Newswire

NEW YORK, March 10, 2025

   -- 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.

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March 10, 2025 06:30 ET (10:30 GMT)