Full Press Release Details
DarioHealth Reports Strong Second Quarter 2021 Results and Operational Highlights
Total Q2 revenue of $5.3 million increased 46% sequentially and
Validated B2B expansion by securing new
clients in all B2B segments
Expanded into the large and underserved digital behavioral health
market through the acquisition of wayForward; signed four Behavioral Health employer contracts
Built strong foundation for a market leading, comprehensive DTx
multi chronic condition platform for all key B2B2C stakeholders: payers, providers, and employers
Ended the second quarter 2021 with cash and cash equivalents of
Company to host conference call and webcast today, August 16, at
NEW YORK, Aug. 16, 2021 /PRNewswire/ -- DarioHealth Corp. (Nasdaq:
DRIO), a pioneer in the global digital therapeutics market, today reported financial results for the second quarter of 2021 and provided
a corporate and commercial update.
"During the second quarter and subsequent period, we saw increasing
demand for our integrated multi condition digital therapeutics solution, driven in part by the expansion of our metabolic offering into
musculoskeletal and pain conditions through the acquisition of Upright Technologies in February 2021 and into behavioral health through
the acquisition of wayForward in June 2021," stated Erez Raphael, Chief Executive Officer of Dario. "We believe Dario's offering
is the most comprehensive, fully-integrated hyper personalized digital therapeutics suite in the industry, as demonstrated by customer
acceptance, and now market acceptance, as well as the fact that approximately two-thirds of our expanded sales pipeline is made of opportunities
that include our complete chronic condition management platform."
"At the same time, the execution of our long term strategic operating
plan resulted in several new employer clients, further penetration into the rapidly growing provider's remote patient monitoring (RPM)
market, and we believe that a health plan contract is imminent. Equally as important, Dario continues to on-board new patients efficiently
and enrollment trends remain strong. We believe that this bodes well for new clients anticipated throughout the remainder of the third
and fourth quarter this year."
"We had solid financial performance, with Q2 2021
total revenue growth of 46% sequentially from the first quarter of 2021 and 194% over the comparable period in 2020. We also drove significant
pro-forma gross profit margin expansion, to 49.4% in the second quarter of 2021, a sequential increase from 44.7% in the first quarter
of 2021. Gross margin should continue to improve with scale due to our SaaS business model and Business-to-Business-to-Consumer (B2B2C)
transformation. Finally, our balance sheet remains very strong, with $63.9 million of cash as of June 30, 2021. We believe that we are
well funded to execute on our multi-faceted growth plan," Mr. Raphael concluded.
"Our integrated multi-condition digital therapeutics suite
serves the ever-growing need of providers, employers, and health plans, a fact that is reflected in the continued growth of our
pipeline, which now stands at more than $900 million and is buoyed by incremental growth in our employer pipeline. We are encouraged
by the shift we have seen in our pipeline of healthcare providers from interest in point solutions for specific chronic conditions
to demand for a hyper-personalized holistic, integrated service for chronic disease management. This trend leverages our sales
effort not only by delivering the right multi-condition, single platform solution at the right time, but also by increasing the
percentage of covered patients addressable by Dario's platform several fold," stated Rick Anderson, President and General
Manager of North America. "We anticipate the first integration of musculoskeletal (MSK) into the Dario platform in the third
quarter of 2021, and behavioral health in the fourth quarter of 2021, setting us up for what I anticipate will be a successful
second half of the year and significant sales momentum heading into 2022."
Q2 2021 and Recent Highlights
Second Quarter 2021 Results Summary
Revenues for the second quarter ended June 30, 2021, were $5.26 million,
a 46% sequential increase from first quarter ended March 31, 2021, and a 194% increase from the $1.8 million in the second quarter ended
Gross profit in the second quarter of 2021 was $1,508,000, an increase
of $872,000, or 137%, compared to gross profit of $636,000 in the second quarter of 2020. Gross profit margin was 28.7% in the second
quarter of 2021 as compared to 35.6% in the second quarter of 2020.
Pro-forma gross profit, excluding $1,092,000 of amortization of expenses
related to the acquisition of Upright Technologies and wayForward, was $2.6 million. Pro-forma gross profit margin, excluding amortization
of expenses related to the acquisition of Upright Technologies and wayForward, was 49.4% in the second quarter of 2021, a sequential increase
from 44.7% in the first quarter of 2021.
Operating loss for the second quarter of 2021 was $18 million, an increase
of $13.9 million, or 337%, compared to the $4.1 million operating loss in the second quarter of 2020. This increase was mainly due to
the increase in our operating expenses.
Net loss was $17.8 million in the second quarter of 2021, an increase
of $13.8 million, or 343%, compared to the $4 million net loss in the second quarter of 2020.
Non-Generally Accepted Accounting Principles (Non-GAAP) adjusted net
loss for the three months ended June 30, 2021, was $10.6 million an increase of $7.5 million, or 239%, compared to the $3.1 million non-GAAP
adjusted net loss in the second quarter of 2020.
Cash and cash equivalents totaled $63.9 million on June 30, 2021.
Non-GAAP billings for the three months ended June 30, 2021 were $5.13
million, a 186% increase from $1.79 million reported in the three months ended June 30, 2020. The increase is a result of higher sales
generated and the consolidation of Upright revenues in the three months ended June 30, 2021, compared to the three months ended June 30,
2020. 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, 2021:
Revenue for the six months ended June 30, 2021, was $8.9 million, a
156% increase from $3.5 million for the six months ended June 30, 2020.
Gross profit of $2.6 million was recorded for the six months ended
June 30, 2021, an increase of 83%, or $1.2 million, compared to gross profit of $1.4 million for the six months ended June 30, 2020.
Pro-forma gross profit, excluding $1,618,000 of amortization of expenses
related to the acquisition of Upright Technologies and WayForward, was $4.2 million. Pro-forma gross profit margin, excluding amortization
of expenses related to the acquisition of Upright Technologies and WayForward, was 47.5% in the six months ended June 30, 2021.
Total operating expenses for the six months ended June 30, 2021, were
$34.9 million, an increase of $19.3 million, or 123%, compared with $15.6 million for the six months ended June 30, 2020. The increase
resulted from an increase in our research and development activities, sales and marketing expenses, stock-based compensation and from
the consolidation of Upright Technologies and WayForward.
Operating loss for the six months ended June 30, 2021, increased by
$18.1 million to $32.3 million, compared to a $14.2 million operating loss for the six months ended June 30, 2020. This increase is mainly
due to the increase in our operating expenses.
Net loss was $32.7 million for the six months ended June 30, 2021,
compared to a net loss of $13.9 million for the six months ended June 30, 2020. The reason for the was mainly due to an increase in operating
Non-GAAP billings for the six months ended June 30, 2021, were $8.8
million, a 152% increase from $3.5 million in the six months ended June 30, 2020.
Non-GAAP adjusted net loss for the six months ended June 30, 2021,
was $19.8 million, a 184% increase from a $7.0 million non-GAAP adjusted net loss for the six months ended June 30, 2020.
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: Monday, August 16, 8:30am ET
Dial-in Number: 877-451-6152
International Dial-in: 201-389-0879
Conference ID: DarioHealth Second Quarter 2021 Results Call
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 September 16, 2021. To
listen to the replay, dial 844-512-2921 (domestic) or 412-317-6671 (international) and use replay passcode 13722168. The webcast replay
will be available for two months.
An updated corporate presentation can be found at https://dariohealth.investorroom.com/