DarioHealth Reports Second Quarter 2023 Financial and Operating Results
- 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 | 3 | 3 | ||||
Preferred stock of $0.0001 par value - authorized: 5,000,000 shares; issued and | *) - | *) - | ||||
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 | 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, | 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 | Amortization of | 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 | Earn-out | 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 | Amortization of | 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 | Earn-out | 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) | |||
Logo - https://mma.prnewswire.com/media/1920436/DarioHealth_Logo.jpg
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.
