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| Statement |
|---|
| Q2 shows continued improvement of the company's financial profile |
| We maintained a strong relationship with Aetna and believe we may have additional strategic and other opportunities with them in the second half of 2023 and beyond |
| And I think we're benefiting from the trends in the marketplace as it relates to that |
| We generated sequential B2B2C ARR growth for the 10th consecutive quarter |
| We are showing that the fundamentals of the B2B business and selling into the self-insured employer and health care market have a positive impact on demonstrating Dario as a true Software-as-a-Service type digital health business with high gross margins and stable year-over-year recurring revenues |
| And I think, by the way, that we will continue to benefit from that as we go into next year |
| We remain especially excited about our AML relationship where we are the only cardiometabolic solution integrated into their platform |
| We also see top relationships getting stronger |
| The Sanofi studies demonstrate real win-win through improved member health and lower cost for payers in exceptionally real-world study; the holy grail of digital health and health care in general |
| We believe we have a unique opportunity as well as a product market fit with real competitive moat and real-world third-party validated scientific evidence |
| I think that with AI and generative AI, our ability to iterate and keep improving because every month, the platform is becoming better and better because the platform is learning better and better |
| We're growing pipeline for both health plans and employers through -- our relationship with stock players like Sanofi and Aetna are getting stronger |
| We have created a growing base of B2C revenue that we carry into 2024 with strong retention |
| We also believe that we have evidence that the core B2B2C model is working as we generated a sequential [indiscernible] recurring revenue growth for the 10th consecutive quarter |
| With an installed base of approximately 2,000 customers, including 55 health plans, we believe this represents an extremely large opportunity |
| So, I think we've got a very strong ROI story as it relates to that |
| Based on the foundation we have built, we believe we are positioned to accelerate our multiyear strategy to drive revenue and profitability substantially higher with our partners, outplan and employers |
| We believe we are well positioned to benefit from this trend given the depth of our data and pricing |
| And the results from very rigorous studies are showing that we're getting significant cost reductions |
| Our recurring B2C revenue has now increased for 10 consecutive quarters in a row, which we believe speaks to the value that members place on our highly engaging digital health offering |
| We believe we will see revenue acceleration as we continue to get the signed accounts loans |
| Despite slower-than-anticipated launch by Aetna, in the big picture, we believe we have all components and we are showing all the evidence to be successful and show significant growth in 2024 |
| We continue to anticipate that the rollout will happen over several quarters once launched, and we have better visibility on platform additions in 2024 than we previously did |
| A few things to consider; we have created a growing base of B2B2C revenue that will carry into 2024 with strong retention |
| We do believe that our multi-condition strategy, partner-focused and demonstrated ability to turn contracts into revenue have positioned us to experience significant growth throughout 2024 |
| This high level of rigor is another differentiating factor for the Dario platform that we believe will have the most value in the health plan market as the demand for high-quality studies continues to increase |
| And as Erez pointed out, resulted in the higher gross margins in the quarter versus the same quarter last year |
| Looking into the balance sheet, we are also having a strong cash position of $52.6 million for runway through 2025 |
| As noted above, we are seeing expansion opportunities in both the self-insured employer and the health plan segment of our business, expansions of additional population and customers expanding the number of conditions are both happen |
| Q2 financial results continue to demonstrate the advancement of our multiyear strategy |
| Statement |
|---|
| We have seen and will continue to see attempt in the market to build and launch digital therapeutic solutions that have run into market penetration and macroeconomic challenges |
| The decrease in revenue in the second quarter was due to a reduction in our strategic partner revenue, which is milestone-driven |
| In July, we launched a large regional Blues plan with approximately 3 million members, which is our first health plan through our partner, Solera -- as we discussed on our first quarter call, this health plan saw several delays at Solera and the health plan finalized their agreement and launch plan |
| These delays are especially frustrating because we have a limited ability to impact them |
| On Aetna, despite a delay in the launch of the platform, we believe that the partnership is only getting stronger |
| Those growth rates would slow down in the back half of the year before you added the new customers in the first quarter |
| This flat growth has resulted from timing of anticipated strategic revenue resulting from delay with one of the strategic partners |
| And I think that's impacting some people's decisions and pushing some things back in the year |
| We expect that the B2C revenue will remain relatively constant with past levels with the Aetna platform delivered and due to the delays with Sanofi; we expect to continue to see volatility in our strategic milestone-driven revenue through the end of this year |
| So we see overall OpEx that is declining a bit, not something that is too big, but there is some kind of decline |
| We believe that the disruption from these internal changes is now largely behind us |
| And so that's impacting people as they try and find ways to reduce that |
| We believe that the true consumer first approach with real road evidence is the only way to successfully penetrate the market |
| And one thing to keep in mind about growth of this sort is it's not linear because of the fact that you have -- it's impacted significantly by when we add new customers on the platforms and a few quarters after that |
| Actual events or results may differ materially from those projected as a result of changing market trends, reduced demand or the competitive nature of DarioHealth's industry |
| Frankly, though, this one, we were a little bit surprised by the timing |
| We expected to recognize revenue from work with Sanofi that was delayed due to internal organizational shifts by Sanofi that were unrelated to Dario |
| So I mean, I think that we're definitely seeing -- so I guess I would -- this is what I would say is the economy is not the same for all companies |
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