DarioHealth Corp. Q4 FY2024 earnings call

Evolution and Acquisition: DarioHealth has evolved into a leading healthcare technology company with a satellite model, and the acquisition of Twill strengthened its position, creating a comprehensive clinically integrated digital health platform supporting five chronic conditions. ### Market Trends: Two key trends driving growth are the move toward whole-person digital health and vendor consolidation, and the rise of GLP-1 therapies with a need for long-term behavioral and lifestyle support. ### AI Strategy: AI cubed strategy leverages artificial intelligence for operational efficiency, member engagement, and customer value, using billions of data points from 5 million patients. ### Financial Performance: 2024 total revenue was $27 million, a 32.9% increase from 2023; B2B2C recurring revenue grew ~400% YOY; pro-forma gross profit business increased from 51% to 72%; operating expenses reduced by 35% from Q1 2024 to Q4 2024.

In 2024, total revenue reached $27 million, a 32.9% increase from $20.4 million in 2023. B2B2C employers and health plans recurring revenue grew approximately 400% year-over-year with 35% of that growth from organic expansion. Pro-forma gross profit business increased from 51% to 72%, and gross margins for the B2B2C business were about 80% for the last three quarters. Total revenue grew more than 110% compared to Q4 2023 and 2.4% sequentially from Q3 2024.

2025 Plan: Target 50% net client growth, expanding across employers, health plans, and pharmaceutical partnerships. ### Cost Reduction: Anticipate a further 20% reduction in operating expenses by Q4 2025. ### Breakeven Goal: On track for operational cash flow breakeven by the end of 2025.

Actual events or results may differ materially from projections due to changing market trends, reduced demand, competitive nature, and risks discussed in the risk factors section of the Form 10-K and other SEC filings.

Q: Charles Rhyee asked about GLP-1 off-boarding, growth expectations, health plan offerings, and breakeven.

A: Erez Raphael discussed GLP-1 data to be published in June, 2025 growth plans, health plan expansion, and operational breakeven by end of 2025.

Q: Ashok Kumar inquired about GLP-1 role in strategy and business model differentiation.

A: Erez Raphael and Steven Nelson discussed GLP-1's significance, business model differentiation through D2C learning, multi-conditioned platform, and strategic partnerships.

Q: David Grossman asked about multi-condition solutions, pharma relationships, and pricing tied to results.

A: Erez Raphael and Steven Nelson provided details on multi-condition client trends, pharma partnership status, and pricing tied to results via claim-based billing and outcomes.