CAESAREA, Israel, March 25, 2019 /PRNewswire/ -- Global
digital therapeutics innovator DarioHealth Corp. (Nasdaq: DRIO),
today reported record financial and operational results for the
full-year ended on December 31,
2018.
Financial Highlights
- Record annual revenues of $7.4
million, a 43% increase year-over-year (YOY)
- In addition, DarioHealth recorded deferred revenue of
$736,000 in 2018
- Record billings (non-GAAP) of $8.13
million, a 57% increase YOY
- Gross profit of $1.77 million, an
increase of 35% YOY
- 37% increase in new subscribers YOY
"Throughout 2018, we continued our pioneering role in the
burgeoning field of digital therapeutics. We had a number of
significant achievements including the introduction of service
oriented offerings in the form of membership plans (PMPM), our
increase in sales as we shifted to a membership recurring revenue
model, improving the average revenue per user (ARPU), obtaining
regulatory clearances, and the publication of clinical data
evidencing the benefit of our product offerings. We are
looking forward to an exciting year in 2019, Q1 is progressing well
and we expect continued growth," said Erez
Raphael, Chief Executive Officer of DarioHealth.
DarioHealth made significant progress expending from
direct-to-consumer (B2C) product sales to a business-to-business
(B2B) model in 2018. The company announced several joint
initiatives with healthcare providers, distributors, retailers, and
payers' channels and expect these initiatives to accelerate our
revenue growth in 2019.
The company's successful go to market efforts are reflected in
new sales channels such as Amazon, BestBuy and the
partnership with Giant Eagle. The company expects further
collaborations as it expands its business development efforts in
the burgeoning field of digital therapeutics.
During 2018, the company strengthened its management team with
the additions of Sequoia Capital partner Yoav Shaked as the
Chairman of the Board, and former Bayer Diabetes Care global
business head, Olivier Jarry as
President and Chief Commercial Officer.
Full Year 2018 Results Summary
For the twelve months ended December 31,
2018, revenues were $7.4
million, a 43% increase from revenues of $5.17 million for the twelve months ended
December 31, 2017.
Revenues generated during the year ended December 31, 2018 were derived mainly from the
sales of DarioHealth's components and from the offering of our
membership plans to our customers in the
United States. We recorded an additional $736,000 as deferred revenues from revenues
generated from our new membership offering to our customers in the
U.S.
Gross profit increased by $454,000, a 35% increase, to a profit of
$1.8 million in the twelve months
ended December 31, 2018, compared to
gross profit of $1.3 million in the
twelve months ended December 31,
2017.
Operating loss for the twelve months ended December 31, 2018 increased by $3.3 million to $17.7
million, compared to a $14.4
million operating loss in the twelve months ended
December 31, 2017.
The increase in operating loss was mainly due to the increase in
operating expenses partially offset by the improvement in the gross
profit compared to the twelve months ended December 31, 2017.
Net loss attributable to holders of common stock increased by
$2.1 million, a 13% increase, to
$17.8 million in the twelve months
ended December 31, 2018, compared to
$15.7 million in the twelve months
ended December 31, 2017.
Non-GAAP billings for the twelve months ended December 31, 2018 were $8.13 million, a 57% increase from $5.17 million in the twelve months ended
December 31, 2017. 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."
Fourth Quarter 2018 Results Summary
Revenues for the fourth quarter ended December 31, 2018 were $1.7 million, a 7.7% increase from $1.6 million in the fourth quarter ended
December 31, 2017, and a 9.5%
decrease sequentially from the third quarter of 2017.
During the fourth quarter ended December
31, 2018, we recorded an additional $351,000 as deferred revenues from revenues
generated from our new membership offering to our customers in the
U.S.
Gross profit in the fourth quarter of 2018 decreased by
$346,000, or 61%, to $223,000 compared to a gross profit of
$569,000 in the fourth quarter of
2017.
Operating loss for the fourth quarter ended December 31, 2018 increased by $2.0 million to $5.1
million, compared to a $3.1
million operating loss in the fourth quarter ended
December 31, 2017. This increase is
mainly due to the increase in our operating expenses.
Net loss attributable to holders of common stock increased by
$1.7 million to $5.0 million in the fourth quarter of 2018,
compared to $3.3 million in the
fourth quarter of 2017.
As of December 31, 2018, cash and
cash equivalents totaled $11
million.
Non-GAAP billings for the three months ended December 31, 2018 were $2.0 million, a 30% increase from $1.6 million in the three months ended
December 31, 2017. 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:
Date: Monday, March 25, 2019
Time: 9:00 AM EDT
Dial-in Number: 844-602-0380
International Dial-in Number: 862-298-0970
Webcast:
https://www.investornetwork.com/event/presentation/45131
A Company investor presentation is available at:
http://mydario.investorroom.com/
About DarioHealth Corp.
DarioHealth Corp. (NASDAQ: DRIO) is a leading global Digital
Therapeutics (DTx) company revolutionizing the way people manage
their health across the chronic condition spectrum. By delivering
evidence-based interventions that are driven by data, high quality
software and coaching, we developed a novel approach that empowers
individuals to adjust their lifestyle in a personalized way. Our
Cross Functional Team operates at the intersection of life
sciences, behavioral science and software technology to deliver
highly engaging therapeutic interventions. Already one of the
highest rated diabetes solutions, its user-centric approach is
loved by tens of thousands consumers around the globe. DarioHealth
is rapidly moving into new chronic conditions and geographic
markets.
Cautionary Note Regarding Forward-Looking Statements
This news release and the statements of representatives and
partners of DarioHealth Corp. (the "Company") related thereto
contain or may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Statements that are not statements of historical fact may be deemed
to be forward-looking statements. Without limiting the generality
of the foregoing, words such as "plan," "project," "potential,"
"seek," "may," "will," "expect," "believe," "anticipate," "intend,"
"could," "estimate" or "continue" are intended to identify
forward-looking statements. For example, the Company is using
forward-looking statements in this press release when the Company
states that the first quarter of 2019 is progressing well and that
it expects continued growth, describes its expectation that its
joint initiatives will accelerate revenue growth in 2019 and its
expected future business collaborations. Readers are
cautioned that certain important factors may affect the Company's
actual results and could cause such results to differ materially
from any forward-looking statements that may be made in this news
release. Factors that may affect the Company's results include, but
are not limited to, regulatory approvals, product demand, market
acceptance, impact of competitive products and prices, product
development, commercialization or technological difficulties, the
success or failure of negotiations and trade, legal, social and
economic risks, and the risks associated with the adequacy of
existing cash resources. Additional factors that could cause or
contribute to differences between the Company's actual results and
forward-looking statements include, but are not limited to, those
risks discussed in the Company's filings with the U.S. Securities
and Exchange Commission. Readers are cautioned that actual results
(including, without limitation, the timing for and results of the
Company's commercial and regulatory plans for Dario™ as described
herein) may differ significantly from those set forth in the
forward-looking statements. The Company undertakes no obligation to
publicly update any forward-looking statements, whether as a result
of new information, future events or otherwise, except as required
by applicable law.
Non-GAAP Financial Measures
We have provided in this release financial information that has
not been prepared in accordance with Generally Accepted Accounting
Principles (GAAP). These non-GAAP financial measures are not based
on any standardized methodology prescribed by GAAP and are not
necessarily comparable to similar measures presented by other
companies. We use these non-GAAP financial measures internally in
analyzing our financial results and believe they are useful to
investors, as a supplement to GAAP measures, in evaluating our
ongoing operational performance. We believe that the use of these
non-GAAP financial measures provides an additional tool for
investors to use in evaluating ongoing operating results and trends
and in comparing our financial results with peer companies, many of
which present similar non-GAAP financial measures to investors.
Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. Investors are encouraged to
review the reconciliation of these non-GAAP financial measures to
their most directly comparable GAAP financial measures provided in
the financial statement tables below.
Billings (non-GAAP). We define billings as revenue
recognized in accordance with GAAP plus the change in deferred
revenue from the beginning to the end of the period and adjustment
to the deferred revenue balance due to adoption of the new revenue
recognition standard less any deferred revenue balances acquired
from business combination(s) during the period. We consider
billings to be a useful metric for management and investors because
billings drive future revenue, which is an important indicator of
the health and viability of our business. There are a number of
limitations related to the use of billings instead of GAAP revenue.
First, billings include amounts that have not yet been recognized
as revenue and are impacted by the term of security and support
agreements. Second, we may calculate billings in a manner that is
different from peer companies that report similar financial
measures. Management accounts for these limitations by providing
specific information regarding GAAP revenue and evaluating billings
together with GAAP revenue.
DARIOHEALTH
CORP.
|
CONSOLIDATED
BALANCE SHEETS
|
U.S. dollars in
thousands
|
|
|
|
December
31,
|
|
|
|
2018
|
|
|
2017
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
10,997
|
|
|
$
|
3,718
|
|
Short-term restricted
bank deposits
|
|
|
180
|
|
|
|
258
|
|
Trade
receivables
|
|
|
168
|
|
|
|
282
|
|
Inventories
|
|
|
1,377
|
|
|
|
1,184
|
|
Other accounts
receivable and prepaid expenses
|
|
|
591
|
|
|
|
604
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
13,313
|
|
|
|
6,046
|
|
|
|
|
|
|
|
|
|
|
LEASE
DEPOSITS
|
|
|
43
|
|
|
|
42
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
|
|
733
|
|
|
|
869
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
14,089
|
|
|
$
|
6,957
|
|
DARIOHEALTH
CORP.
|
CONSOLIDATED
BALANCE SHEETS
|
U.S. dollars in
thousands (except stock and stock data)
|
|
|
|
|
December
31,
|
|
|
|
2018
|
|
|
2017
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Trade
payables
|
|
$
|
2,574
|
|
|
$
|
1,852
|
|
Deferred
Revenues
|
|
|
736
|
|
|
|
-
|
|
Other accounts
payable and accrued expenses
|
|
|
1,854
|
|
|
|
1,163
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
5,164
|
|
|
|
3,015
|
|
|
|
|
|
|
|
|
|
|
LIABILITY RELATED TO
WARRANTS
|
|
|
-
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Common Stock of
$0.0001 par value -
Authorized: 160,000,000 shares at December 31, 2018 and 2017;
Issued and Outstanding: 36,607,755 and 14,074,238 shares at
December 31, 2018 and 2017, respectively
|
|
|
8
|
|
|
|
7
|
|
Preferred Stock of
$0.0001 par value -
Authorized: 5,000,000 shares at December 31, 2018 and 2017; Issued
and Outstanding: None at December 31, 2018 and 2017
|
|
|
-
|
|
|
|
-
|
|
Additional paid-in
capital
|
|
|
98,171
|
|
|
|
74,892
|
|
Accumulated
deficit
|
|
|
(89,254)
|
|
|
|
(70,958)
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
8,925
|
|
|
|
3,941
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders'
equity
|
|
$
|
14,089
|
|
|
$
|
6,957
|
|
DARIOHEALTH
CORP.
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
|
U.S. dollars in
thousands (except stock and stock data)
|
|
|
|
|
Year
ended
December
31,
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
7,394
|
|
|
$
|
5,170
|
|
Cost of
revenues
|
|
|
5,629
|
|
|
|
3,859
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
1,765
|
|
|
|
1,311
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
$
|
3,676
|
|
|
$
|
3,297
|
|
Sales and
marketing
|
|
|
10,309
|
|
|
|
7,707
|
|
General and
administrative
|
|
|
5,468
|
|
|
|
4,726
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
19,453
|
|
|
|
15,730
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
17,688
|
|
|
|
14,419
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net:
|
|
|
|
|
|
|
|
|
Expenses (income)
from revaluation of warrants
|
|
|
(1)
|
|
|
|
1,168
|
|
Other financial
expense, net
|
|
|
116
|
|
|
|
156
|
|
|
|
|
|
|
|
|
|
|
Total financial
expenses, net
|
|
|
115
|
|
|
|
1,324
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
17,803
|
|
|
$
|
15,743
|
|
|
|
|
|
|
|
|
|
|
Deemed
dividend
|
|
|
493
|
|
|
|
255
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to holders of Common Stock
|
|
$
|
18,296
|
|
|
$
|
15,998
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per share
|
|
$
|
0.78
|
|
|
$
|
1.64
|
|
Weighted average
number of Common Stock used in computing basic and diluted net loss
per share
|
|
|
23,412,891
|
|
|
|
9,628,256
|
|
DARIOHEALTH
CORP.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
|
|
Year ended
December 31,
|
|
|
|
2018
|
|
|
2017
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(17,803)
|
|
|
$
|
(15,743)
|
|
Adjustments required
to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Stock-based
compensation and Common Stock to service providers
|
|
|
3,758
|
|
|
|
3,824
|
|
Depreciation
|
|
|
207
|
|
|
|
195
|
|
Decrease (increase)
in trade receivables
|
|
|
114
|
|
|
|
(56)
|
|
Decrease (increase)
in other accounts receivable and prepaid expenses
|
|
|
13
|
|
|
|
(99)
|
|
Increase in
inventories
|
|
|
(193)
|
|
|
|
(295)
|
|
Increase in trade
payables
|
|
|
722
|
|
|
|
39
|
|
Increase in deferred
revenues
|
|
|
736
|
|
|
|
-
|
|
Increase in other
accounts payable and accrued expenses
|
|
|
977
|
|
|
|
334
|
|
Change in the fair
value of warrants to purchase shares of Common Stock
|
|
|
(1)
|
|
|
|
1,168
|
|
Revaluation of
short-term restricted bank deposits
|
|
|
-
|
|
|
|
(17)
|
|
Loss from disposal of
fixed assets
|
|
|
-
|
|
|
|
31
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
|
(11,470)
|
|
|
|
(10,619)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Maturity (investment)
in short-term restricted bank deposits
|
|
|
78
|
|
|
|
(17)
|
|
Investment in lease
deposit
|
|
|
(1)
|
|
|
|
(7)
|
|
Purchase of property
and equipment
|
|
|
(71)
|
|
|
|
(195)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
|
6
|
|
|
|
(219)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from
exercise of warrants
|
|
|
-
|
|
|
|
*)-
|
|
Proceeds from
issuance of shares and warrants, net of issuance cost
|
|
|
18,743
|
|
|
|
13,463
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
|
18,743
|
|
|
|
13,463
|
|
|
|
|
|
|
|
|
|
|
Increase in cash and
cash equivalents
|
|
|
7,279
|
|
|
|
2,625
|
|
Cash and cash
equivalents at beginning of year
|
|
|
3,718
|
|
|
|
1,093
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of year
|
|
$
|
10,997
|
|
|
$
|
3,718
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification of
warrants from liability to equity
|
|
$
|
-
|
|
|
$
|
8,655
|
|
|
|
|
|
|
|
|
|
|
Payment for
executives and directors under Salary Program
|
|
$
|
201
|
|
|
$
|
183
|
|
(*) Represents an amount lower than $1.
DARIOHEALTH
CORP.
|
Reconciliation of
Revenue to Billing (Non-GAAP)
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
December
31,
|
|
Three Months
Ended
December
31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
GAAP
Revenue
|
|
7,394
|
|
5,170
|
|
1,700
|
|
1,578
|
Add:
|
|
|
|
|
|
|
|
|
Change in deferred
revenue
|
|
736
|
|
-
|
|
351
|
|
-
|
|
|
|
|
|
|
|
|
|
Billing
(Non-GAAP)
|
|
8,130
|
|
5,170
|
|
2,051
|
|
1,578
|
|
|
|
|
|
|
|
|
|
DarioHealth Corporate Contact:
Joao Mendes-Roter
VP Marketing
joao@mydario.com
+1-347-767-4220
View original content to download
multimedia:http://www.prnewswire.com/news-releases/dariohealth-reports-fourth-quarter-and-year-end-2018-record-results-300817555.html
SOURCE DarioHealth Corp.