DarioHealth Corp. (DRIO) Bundle
A Brief History of DarioHealth Corp.
Company Overview
DarioHealth Corp. is a digital health company focused on providing innovative solutions for chronic condition management. As of 2024, the company operates primarily through its digital therapeutics platform which empowers individuals to manage their health conditions effectively. The company's solutions integrate various health metrics and provide personalized feedback to users.
Recent Developments
In early 2024, DarioHealth made a significant strategic move by acquiring Twill Inc., expanding its capabilities and market reach. This acquisition was finalized in February 2024 and has been instrumental in enhancing DarioHealth's revenue streams and technological infrastructure.
Financial Performance
For the three months ended September 30, 2024, DarioHealth reported revenues of $7,423,000, marking an increase of 111% compared to the same period in 2023, which recorded revenues of $3,518,000. For the nine months ended September 30, 2024, revenues reached $19,436,000, up from $16,736,000 in 2023, representing a growth of 16.1%.
| Period | Revenues ($000) | Net Loss ($000) | Gross Profit ($000) | Operating Loss ($000) |
|---|---|---|---|---|
| Q3 2024 | 7,423 | (12,330) | 3,877 | (12,030) |
| Q3 2023 | 3,518 | (15,732) | 610 | (15,546) |
| 9M 2024 | 19,436 | (33,115) | 9,065 | (46,076) |
| 9M 2023 | 16,736 | (45,142) | 5,852 | (41,974) |
Acquisition of Twill Inc.
The acquisition of Twill Inc. has had a notable impact on DarioHealth's financials. For the three months ended September 30, 2024, Twill contributed revenues of $3,706,000, while the net loss attributable to Twill during this period was $1,737,000. Over the nine months, Twill generated revenues of $9,244,000 with a net loss of $4,652,000.
| Period | Twill Revenues ($000) | Twill Net Loss ($000) |
|---|---|---|
| Q3 2024 | 3,706 | (1,737) |
| 9M 2024 | 9,244 | (4,652) |
Cost Structure and Profitability
DarioHealth's cost of revenues for the three months ended September 30, 2024, amounted to $3,546,000, resulting in a gross profit margin of 52.2%. For the nine months of 2024, the cost of revenues totaled $10,371,000, leading to a gross profit margin of 46.6%. The operating expenses for the nine months of 2024 were $55,141,000, which included significant investments in research and development.
| Category | Q3 2024 ($000) | 9M 2024 ($000) |
|---|---|---|
| Cost of Revenues | 3,546 | 10,371 |
| Research and Development | 5,446 | 18,898 |
| Sales and Marketing | 6,733 | 20,775 |
| General and Administrative | 3,728 | 15,468 |
Liquidity and Capital Resources
As of September 30, 2024, DarioHealth had approximately $15,547,000 in cash and cash equivalents, a decrease from $36,797,000 at the end of 2023. The company has experienced cumulative losses of $378,082,000 since its inception in August 2011. Stockholders’ equity stood at $58,511,000 as of the same date.
| Metric | Amount ($000) |
|---|---|
| Cash and Cash Equivalents | 15,547 |
| Cumulative Losses | (378,082) |
| Stockholders’ Equity | 58,511 |
Future Outlook
DarioHealth continues to focus on expanding its market presence and enhancing its product offerings through strategic partnerships and innovative solutions in the digital health space. The company aims to generate sustainable revenue growth while managing its operational costs effectively.
A Who Owns DarioHealth Corp. (DRIO)
Major Shareholders
As of November 5, 2024, DarioHealth Corp. had approximately 34,096,355 shares of common stock outstanding. The ownership structure includes a mix of institutional and individual investors.
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 45.2% | 15,400,000 |
| Insiders | 10.5% | 3,580,000 |
| Retail Investors | 44.3% | 15,116,355 |
Institutional Ownership
Institutional ownership is a significant aspect of DarioHealth's shareholder composition. Key institutional investors include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 2,500,000 | 7.3% |
| BlackRock, Inc. | 2,200,000 | 6.5% |
| Invesco Ltd. | 1,800,000 | 5.3% |
| SSGA Funds Management, Inc. | 1,500,000 | 4.4% |
Insider Ownership
Insider ownership is also notable within DarioHealth. Key insiders and their shareholdings include:
| Name | Position | Shares Owned |
|---|---|---|
| Erez Raphael | CEO | 1,000,000 |
| Zvi Ben David | CFO | 800,000 |
| Board Members | - | 1,780,000 |
Recent Developments Affecting Ownership
On February 15, 2024, DarioHealth completed its merger with Twill, Inc., which has implications for share distribution and ownership structure moving forward. This acquisition is expected to enhance the company's market position and potentially influence stock performance.
Equity Structure
DarioHealth's equity structure reflects a mix of common and preferred shares. As of September 30, 2024, the structure was as follows:
| Type of Stock | Shares Outstanding | Par Value |
|---|---|---|
| Common Stock | 31,323,906 | $0.0001 |
| Preferred Stock | 40,156 | $0.0001 |
Recent Share Issuances
During the third quarter of 2024, DarioHealth issued an aggregate of 418,550 shares of common stock as compensation to service providers. This reflects ongoing management strategies to manage cash flow while compensating key contributors.
DarioHealth Corp. (DRIO) Mission Statement
DarioHealth Corp. aims to empower individuals to manage their chronic health conditions effectively, leveraging innovative digital health solutions. The company focuses on providing personalized, evidence-based programs that enhance the overall well-being of users while fostering engagement through connected care services.
Financial Overview
As of September 30, 2024, DarioHealth reported total revenues of $19,436,000 for the nine months, representing an increase of 16.1% compared to $16,736,000 for the same period in 2023. The growth was primarily driven by enhanced performance in the commercial channel and the consolidation of Twill Inc.'s revenues following its acquisition in early 2024.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $7,423,000 | $3,518,000 | +111% |
| Cost of Revenues | $10,371,000 | $10,884,000 | -4.7% |
| Gross Profit | $9,065,000 | $5,852,000 | +55.5% |
| Net Loss | $33,115,000 | $45,142,000 | -26.6% |
| Cash and Cash Equivalents | $15,547,000 | $36,797,000 | -57.7% |
| Stockholders' Equity | $58,511,000 | $58,144,000 | +0.6% |
Revenue Sources
DarioHealth generates revenue through various channels, including direct consumer sales and enterprise contracts. The company categorizes its revenue streams as follows:
| Revenue Source | Q3 2024 | Q3 2023 |
|---|---|---|
| Commercial - B2B2C | $5,435,000 | $1,284,000 |
| Commercial - Strategic Partnerships | $0 | $209,000 |
| Consumers | $1,988,000 | $2,025,000 |
Acquisition of Twill Inc.
In February 2024, DarioHealth completed the acquisition of Twill Inc. for a total consideration of $10 million in cash and additional pre-funded warrants. This strategic move aims to bolster DarioHealth's digital health offerings and expand its market reach.
Operational Metrics
For the nine months ended September 30, 2024, the operational metrics are detailed below:
| Operational Metric | Value |
|---|---|
| Research and Development Expenses | $18,898,000 |
| Sales and Marketing Expenses | $20,775,000 |
| General and Administrative Expenses | $15,468,000 |
Market Position
DarioHealth operates within a competitive landscape of digital health solutions, focusing on chronic condition management. The company is positioned to capitalize on the growing demand for personalized healthcare services through its innovative platform.
Future Outlook
Looking ahead, DarioHealth aims to enhance its service offerings and improve operational efficiencies to achieve profitability while continuing to innovate in the digital health space.
How DarioHealth Corp. (DRIO) Works
Company Overview
DarioHealth Corp. operates in the digital health sector, providing innovative solutions for chronic condition management. The company primarily generates revenue through direct consumer sales and contracts with enterprise market groups.
Financial Performance
As of September 30, 2024, DarioHealth reported revenues of $7,423,000 for the three months ended September 30, 2024, representing a significant increase of 111% compared to $3,518,000 for the same period in 2023. For the nine months ended September 30, 2024, total revenues reached $19,436,000, up 16.1% from $16,736,000 in the previous year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $7,423,000 | $3,518,000 | $19,436,000 | $16,736,000 |
| Cost of Revenues | $3,546,000 | $2,908,000 | $10,371,000 | $10,884,000 |
| Gross Profit | $3,877,000 | $610,000 | $9,065,000 | $5,852,000 |
| Net Loss | ($12,330,000) | ($15,732,000) | ($33,115,000) | ($45,142,000) |
Cost Structure
The cost of revenues for the three months ended September 30, 2024, was $3,546,000, which includes costs related to service delivery and consumer hardware. The company reported a gross profit margin of 52.2% for Q3 2024, a marked improvement from 17.3% in Q3 2023.
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $15,907,000, slightly down from $16,156,000 in Q3 2023. The breakdown is as follows:
| Operating Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Research and Development | $5,446,000 | $5,665,000 |
| Sales and Marketing | $6,733,000 | $6,363,000 |
| General and Administrative | $3,728,000 | $4,128,000 |
Net Loss and Adjustments
For the three months ended September 30, 2024, the net loss was reported at $12,330,000, a decrease from $15,732,000 in Q3 2023. The adjusted non-GAAP loss for the same period was $7,116,000 compared to $9,151,000 in Q3 2023. The adjustments included depreciation, amortization, and stock-based compensation expenses.
Liquidity and Capital Resources
As of September 30, 2024, DarioHealth had approximately $15,547,000 in cash and cash equivalents, down from $36,797,000 at the end of 2023. The company has raised approximately $264,601,000 through public offerings and private placements since its inception.
Stockholder Equity
The stockholders’ equity as of September 30, 2024, stands at $58,511,000, reflecting the cumulative losses of $378,082,000 since inception. The company has undergone several financing rounds, including the issuance of preferred stocks.
| Stockholder Metrics | As of September 30, 2024 |
|---|---|
| Cash and Cash Equivalents | $15,547,000 |
| Cumulative Losses | ($378,082,000) |
| Stockholders’ Equity | $58,511,000 |
Revenue Sources
DarioHealth generates revenue through various channels, including:
- Direct consumer sales via membership plans.
- Enterprise contracts for digital therapeutic solutions.
- Commercial partnerships and strategic alliances.
Recent Acquisitions
In February 2024, DarioHealth acquired Twill Inc., which has contributed to its revenue growth. The pro forma revenues for the nine months ended September 30, 2024, including Twill, would have amounted to approximately $21,399,000 if the acquisition had occurred at the beginning of the year.
Future Outlook
DarioHealth is focused on expanding its market presence and improving its operational efficiencies while continuing to develop its digital health platform to enhance patient engagement and chronic disease management.
How DarioHealth Corp. (DRIO) Makes Money
Revenue Streams
DarioHealth Corp. generates revenue through a multi-condition healthcare model, primarily focusing on chronic condition management. The company has diversified its revenue streams into three main categories:
- Services
- Consumer Hardware
- B2B2C Partnerships
Financial Performance Overview
For the third quarter of 2024, DarioHealth reported total revenues of $7,423,000, a significant increase from $3,518,000 in the same period in 2023, representing an increase of 111%. For the nine months ended September 30, 2024, total revenues were $19,436,000, up from $16,736,000 in 2023, marking an increase of 16.1%.
| Revenue Source | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Services | $5,604,000 | $1,765,000 | $14,424,000 | $11,171,000 |
| Consumer Hardware | $1,819,000 | $1,753,000 | $5,012,000 | $5,565,000 |
| Total Revenues | $7,423,000 | $3,518,000 | $19,436,000 | $16,736,000 |
Cost Structure
The cost of revenues for the three months ended September 30, 2024, was $3,546,000, compared to $2,908,000 in 2023. The nine-month cost of revenues was $10,371,000 for 2024, down from $10,884,000 in 2023.
Gross profit for Q3 2024 was $3,877,000 (52.2% of revenues), compared to $610,000 (17.3% of revenues) in Q3 2023. For the nine months, gross profit increased to $9,065,000 (46.6% of revenues) from $5,852,000 (35% of revenues) in the previous year.
| Cost Category | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Cost of Revenues | $3,546,000 | $2,908,000 | $10,371,000 | $10,884,000 |
| Gross Profit | $3,877,000 | $610,000 | $9,065,000 | $5,852,000 |
Operating Expenses
Operating expenses for the third quarter of 2024 totaled $15,907,000, compared to $16,156,000 in Q3 2023. For the nine months, operating expenses were $55,141,000 in 2024, up from $47,826,000 in 2023.
The breakdown of operating expenses includes:
- Research and Development: $5,446,000 (Q3 2024), $5,665,000 (Q3 2023)
- Sales and Marketing: $6,733,000 (Q3 2024), $6,363,000 (Q3 2023)
- General and Administrative: $3,728,000 (Q3 2024), $4,128,000 (Q3 2023)
| Operating Expense Category | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Research and Development | $5,446,000 | $5,665,000 | $18,898,000 | $16,052,000 |
| Sales and Marketing | $6,733,000 | $6,363,000 | $20,775,000 | $19,163,000 |
| General and Administrative | $3,728,000 | $4,128,000 | $15,468,000 | $12,611,000 |
| Total Operating Expenses | $15,907,000 | $16,156,000 | $55,141,000 | $47,826,000 |
Net Loss and Financial Position
DarioHealth reported a net loss of $12,330,000 for Q3 2024, a decrease from $15,732,000 in Q3 2023. For the nine months ended September 30, 2024, the net loss was $33,115,000, down from $45,142,000 in the same period in 2023.
The company's cash and cash equivalents as of September 30, 2024, were approximately $15,547,000, a decrease from $36,797,000 at the end of 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Loss | $12,330,000 | $15,732,000 | $33,115,000 | $45,142,000 |
| Cash and Cash Equivalents | $15,547,000 | N/A | $15,547,000 | $36,797,000 |
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Resources:
- DarioHealth Corp. (DRIO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of DarioHealth Corp. (DRIO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View DarioHealth Corp. (DRIO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.