The Israeli company Dario Health published on Monday the preliminary results for the fourth quarter of 2022 according to which it expects revenues of approximately $6.7 million and approximately $27.5 million in 2022 as a whole. According to the company, the revenues in the fourth quarter resulted from growth in the B2B channel that exceeded the managed decline of the B2C channel following the strategic change in the allocation of the company’s resources. The company’s cash balances and cash value at the end of 2022 were approximately $49.3 million.
In addition, the company announces today a cooperation agreement with Dexcom
DEXCOM INC
-0.11%
closure:0
opening:109.5
High:110.9
low:108.74
cycle:—
Page Quote News Graphs Company Profile Recommendations
More articles on the subject:
, a leader in the field of real-time glucose monitoring (CGM) technology, for the integration of the DEXCOM G6 system for continuous monitoring of the sugar level, in Dario’s chronic condition management platform. These are small, wearable sensor systems that measure glucose levels continuously to a receiver or smart device, allowing users with diabetes to make real-time decisions about their health. The agreement between the two companies will enable the integration of the data obtained from the Dexcom G6 CGM directly into Dario’s platform.
“Approximately two million people currently use a monitor for continuous monitoring of blood sugar levels, and the ability to display this data on the Dario platform expands our ability to provide people living with diabetes with a more dynamic and relevant experience. This is an exciting development that will ultimately benefit all users of the Dario platform, as The CGM data enriches our overall data set,” said Rick Anderson, President of Dario Health.
Dario Health’s stock jumped 31% since the beginning of the year to a price of $5.7, which represents a market value of $146.7 million.
CEO of Dario, Erez Raphaelsays in an interview with Bizportal that “We have been in the field of digital health for a long time and the company only dealt with diabetes and about 3 years ago we said that the field was going to merge. Therefore, if you want to establish a company that ultimately produces a business that makes money and does not lose money, it is impossible for every company Focus on another disease, but you need to take a collection of challenges and chronic diseases and manage them on one digital platform. In addition, we said that we can take the clinical data and go with it to American insurance companies and tell them that we have a solution that works so that they will buy it.
“In the last two and a half years, and according to the financial results of the third quarter and the preliminary results of the last quarter, they saw that this vision we set is being expressed and validated in these results. The gross profit increased very nicely and was over 50% in the third quarter. Operating expenses decreased by about 40% and more , our loss decreased by more than 50% year over year and the fourth quarter was basically a continuation of the third quarter. This is also why the stock jumped 10% on Monday.”
What are the growth engines of the company?
“First of all, sell products for different diseases – we currently have 5 diseases on one platform: diabetes, blood pressure, weight problems, digital physical therapy and emotional help. Each of these products on its own generates revenue and connecting them increases revenue even more. A second growth engine is our sales channels. We in the US sell both to American insurance companies and to American employers because in the US, unlike Israel, the employer buys health plans directly for its employees. The combination of these two growth engines is what produces the financial results that improve drastically during two the last quarters”.
What is the company’s cash situation, how long will it last? Are there any upcoming purchases?
“The company ended 2022 with 49.3 million dollars in cash. The company is losing operationally on the order of 20-21 million dollars so it is expected to be enough for at least two years. We want to continue to grow and improve the top line and the bottom line because ultimately we want to bring the company to profitability and I I think our situation in terms of cash is good and stable.
“In 2021 we made 3 acquisitions of companies and we are mainly busy putting everything together. We think that in the market conditions there are a lot of realities in the market and different start-up companies. At the moment, when we are trading at only 150 million dollars, we do not have such a big appetite for acquisition And dilute the company tomorrow morning. In the medium-long term, we will continue with a strategy that expands our product line.”
What is the diabetes monitoring system you reported on today?
“In the field of diabetes, there are all kinds of monitoring devices such as those known to patients that prick their finger, especially for those who have type 2 diabetes. For those who have type 1 diabetes, which is diabetes that requires insulin injections several times a day, there is a continuous glucose meter. This technology that you attach a needle to the body and it monitors sugar levels 24/7 using an app. Most diabetics are type 2 and only about 5%-7% are type 1 who need this device. We actually came to an agreement to connect this sugar meter to our digital platform.”
Where will the company be in two years? What is the vision for another 5 years?
“I think we can reach profitability and that’s what we want to do. In the end we want to be the leading digital health company in the world. I want to show investors that if I want to I can be profitable. In 5 years the ambition is that the world of health will undergo a revolution so that people will learn better How to manage their health condition and we want to be the ones leading this revolution.”
The stock has fallen by over 50% in the past year, how do you explain that?
“Two years ago the stock was at $31 and the company managed one disease. Today the company manages 5 diseases and has contracts with insurance companies amounting to tens of millions of dollars. In the end, the company also generates more money, increased revenues, increased the product portfolio and has partnerships with The digital health giant. We are in a much better place than where we were two years ago and anyone reading this should ask themselves if it makes sense to them and if they should buy the stock. It’s hard to say why it went down, but where will it be? Based on what we’ve done in two and a half years The latter they can understand where it can go because stocks are bought when they are cheap.”