DarioHealth, a digital chronic condition management platform, reported $3.6 million in revenue for Q4 2023 compared to $6.8 million for the fourth quarter of 2022, a 47% decrease, and year-over-year revenue in 2023 was $20.4 million compared to $27.7 million for 2022.
The New York-based company said the overall decrease in revenue stemmed from lower consumer and strategic partner channels.
The company reported a net loss for the fourth quarter of $14.3 million compared to a loss of $12.6 million in Q4 2022, an increase of 13.2%. It reported year-over-year net loss of $59.4 million for 2023 compared to $62.2 million in 2022.
DarioHealth’s gross profit decreased substantially from $2.7 million in Q4 2022 to $132,000 in Q4 2023. Its yearly gross profit decreased 38% for 2023 to $6 million, compared to $9.7 million in 2022.
Total operating expenses for Q4 2023 were $14.3 million compared with $11.7 million for Q4 2022, and full-year expenditures were $62.2 million compared to $66.5 million for 2022, a 6.5% decrease.
Pro forma gross profit for 2023 was $10.4 million, which did not include $4.4 million of costs related to acquisitions and amortization expenses. This is compared to a pro forma gross profit of $14 million in 2022. The decrease was attributed to lower revenues from the strategic channel.
“2023 was a very significant year for Dario. Our financial profile continued to improve as a result of our pivot to a Business-to-Business-to-Consumer business model with growing B2B2C revenue and decreasing operating costs,” Dario’s CEO Erez Raphael said in a statement.
“Last month, we announced the transformational acquisition of Twill, Inc., accompanied by a $22.4 million equity financing. We believe this acquisition propels Dario forward, creating immediate scale with three of the top eight national health plans, some of the largest technology companies and several major pharmaceutical companies as customers.”
THE LARGER TREND
In February, DarioHealth announced it would acquire Twill, a digital therapeutics company, to expand its offerings focused on chronic conditions.
At the time of the announcement, the company said it expected the acquisition to accelerate its path to profitability and nearly double its pro forma revenues in 2023.
The expectation of increased pro forma revenues was based on revenues through Sept. 30 totaling $30.5 million, comprising $13.8 million in Twill revenues and $16.7 million in Dario revenues.
DarioHealth (DRIO) is trading on the NASDAQ at $1.53 per share as of this article, a substantial drop from its opening price of $4,986 per share in 2013. The company’s stock has steadily remained under $100 per share since 2017, gradually decreasing.
In DarioHealth’s Q4 and full-year earnings report, the company said it has enhanced its path to profitability through improvements in its financial profile, which it expects to continue and accelerate in 2024 thanks to its acquisition of Twill.
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