Dariohealth Corp. · NASDAQ:DRIO
Dariohealth — Investor Presentation (May 2019)
30 slides from Dariohealth's investor presentation, May 21, 2019
Slide 1: DarioHealth Corp. Live Therapeutics for Better Life
1 DarioHealth Corp. Live Therapeutics for Better Life
Slide 2: Forward Looking Statements
Forward Looking Statements. This presentation of DarioHealth Corp. (the “Company”) and statements of our managemen t contain or may contain forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Statements which are not historical reflect
Slide 3: DarioHealth: Who We Are
Digital Therapeutics Company ( DTx ) Revolutionizing the Way People Manage Chronic Conditions 2011 ▪ Founded NYC, Israel (80 Employees) ▪ Headquarters USA, Canada, UK, Germany , Italy, Australia ▪ Countries with Users ▪ Insurance Coverage USA, Canada, UK, Australia $7.9M (1) ▪ LTM Revenue DarioHealt
Slide 4: Growing Industry, Well Positioned to Support Growth
Growing Industry, Well Positioned to Support Growth ▪ Highly popular product in the market as testified by tens of thousands of users (4.9 on AppStore, NPS 77) ▪ Proven clinical outcomes show an ROI of $165 (1)(2) per user per month (proven by real data evidence of more than 38,000 users operating o
Slide 5: Diabetes is pervasive, costly, and often involves other chronic conditions
Diabetes is pervasive, costly, and often involves other chronic conditions. 90% of the nation’s $3.3 trillion in annual health care expenditure is for people with CHRONIC and mental health conditions $ 190 B Heart Disease & Stroke $140B Arthritis $174B Cancer $237B Diabetes $200B Alzheimer’s $131B H
Slide 6: Diabetes Management is Not Efficient and Filled with Hassles
99.9% Annu al time spent on one’s own (5 waking hours or 0.1% of year) 0.1% Annual time spent in a healthcare setting (5 waking hours or 0.1% of year) Diabetes Management is Not Efficient and Filled with Hassles Source: Livongo Health Presentation (September 20, 2018); Diabetes Hands Foundation Curr
Slide 7: Our Answer: The Dario Smart Diabetes Management Solution
▪ Highly personalized application ▪ Real time alerts ▪ Digital interventions through the app ▪ Highly personalized – right message to the right person at the right time ▪ Believed to be the most advanced device in the market (Accuracy, Size of drop of blood) ▪ Plug directly into the smartphone (Andr
Slide 8: MyDario – Mobile Medical Device
▪ All - in - one smart glucose meter ▪ Essentially turns a smartphone into a glucometer ▪ Highly accurate (cleared post FDA 2016 guidance) ▪ Sync with Dario’s proprietary app to measure, record, and track blood glucose levels ▪ Allows 100% data capturing in real time including physical, nutrition, a
Slide 9: Dario Engage – How We Engage Patients in a Personalized Way
What we communicate with these tools: ● Personal insights ( r eports) ● Clinical content ● Articles ● Digital coaching ● Food recommendations ● Self prediction ● Feedback & m otivation CRM Support Email Reminders Onboarding T eam App M essaging Chat SMS ▪ MyDario Personalized Journeys ▪ Highly perso
Slide 10: Dario Experience – Healthy Choices Throughout the Day
Dario Experience – Healthy Choices Throughout the Day
Slide 11: Dario – The Most Loved Product in the Market
4.3 4.8 NPS 77+ 5 Dario – The Most Loved Product in the Market
Slide 12: Dario Intelligence – Leveraging Data and AI
Behavior Lifestyle Messages & Interactions Sensors & Environment Clinical & Bio Chemical Consumer Profile Diabetes Profile User Profile Users ▪ Data is leveraged from smart insights for users ▪ Prediction models for user engagement and life time value optimizations Clinical ▪ Optimization of data in
Slide 13: Stories of Success: Clinical Outcomes and ROI
12 - 43% Reduction in diabetes risks* Yields substantial savings 1 % - 2.3 % Reduction In A1C** ROI of $165 per user per month Reduction in Hospital & ER Visits Lowers costs and reduces medical claims * Data from 17,156 users, as presented to the ADA ** “Reducing A1C Levels in Individuals with High
Slide 14: Full Digital Therapeutics Offering Membership Program
Highly accurate device with unlimited test strips Device : • All in one device • Unlimited strips • Native mobile Application & Reports : • Real – time data collection • Personalized nutrition & fitness tracking • Automated reminders • “At a glance” statistics & charts facilitates making healthy cho
Slide 15: Recurring Revenue Model: Monthly Membership Programs
▪ Standard Program – Monthly Payment $29.99 (Least Price) ▪ Premium Program – Monthly Payment $59.99 (Least Price) ▪ 1 month, 3 month and 12 month package. ▪ Package Margins: 59% - 79% Recurring Revenue Model : Monthly Membership Programs – DTx – Unit Economic Package Plan (months) Monthly Price (De
Slide 16: Evolution of Product Offering: From Disposable Device to Digital Therapeutics
Device & Disposables 2016 Device & Disposables 2017 PMPM Disposable Full Digital Therapeutics 2018 Performance Base 2019 PMPM DTx PMPM Performance DTx Medical Device and Disposables DTx High Margins ( Saas ) Risk Sharing - Data Evidence Based Membership Evolution of Product Offering: From Disposable
Slide 17: 3 Stage Funnel: Converting Users into Monthly Recurring Membership
Non Paying Paying – Device & Disposables Only Paying for full offering: Device, disposables, Digital Therapeutics. Standard: $20 - $29 Monthly Premium: $59.99 B 2 C - Direct To Consumer (“DTC”) B2B2C Retailers, Payers, Clinics 3 Stage Funnel: Converting Users into Monthly Recurring Membership Model
Slide 18: User Growth: Growth in User Base While Improving ARPU and Margins
$19.05 $19.70 $19.59 $19.59 $19.68 $20.29 $21.50 $ 22.93 $23.20 $24.37 $25.40 $24.71 $24.74 Low margins strips distributors Initial US launch – introduction of direct to consumer. Launch of first PMPM membership (non digital) low margins. Transforming the membership model to DTx high margins busines
Slide 19: Paying Member Model: ROI and LTV Metrics
$126 $157 $221 2017 2018 Current Total Upfront Customer Acquisition Cost Annual ARPU Annual Contribution (Net Churn) Months to ROI (Upfront Cost) 1) Average of current paying users 2) Includes customer acquisition cost, plus upfront device cost, less revenue from device sale 3) Average revenue per u
Slide 20: Growth – Sales Channels Designed to Reduce CAC and Scale User Growth
Retail Payers Employers Distributors Mini - clinics, nurses Partnerships / Distribution Social Media Google Shopping Market Places (Amazon) DTC ▪ Dario continues to grow its user base via its funnel and DTC efforts ▪ Partnerships can quickly and significantly scale user growth and decrease CAC ▪ Dar
Slide 21: Partnerships: Distributors, Retailers, Clinics, Payers and Employers
▪ Distributor partnerships expand Dario’s member base ▪ Distributors get margin on test strips and coaching ▪ Distributors already provide access to hundreds of payers, may also have relationships with employers and benefits brokers that Dario can leverage. Retailers 1 Distributors Clinics & Hospita
Slide 22: Platform Technology: Able to Adapt to Other Chronic Conditions
State of the Art Technology Coaching Data Analytics Hardware State of the Art Technology Coaching Data Analytics Hardware State of the Art Technology Coaching Data Analytics Hardware State of the Art Technology Coaching Data Analytics Hardware HYPERTENSION $131B OBESITY $147B PRE - DIABETES $44B (1)
Slide 23: Revenue & Billings Growth
$0.0 $2.5 $5.0 $7.5 $10.0 2016 2017 2018 LTM Revenue Deferred Revenue ▪ Membership model drives recurring revenue ▪ Multiple channels enable growth acceleration from B2C and B2B $5.2 $8.1 $2.8 $ in millions ($ in thousands) 2016 2017 2018 LTM Q1 2018 Q1 2019 Revenue $2,803 $5,170 $7,394 $7,880 $1,75
Slide 24: Long-Term Operating Model
Current Long - Term at Scale Paying Users ~40K ~250k Revenue (annual run - rate) $8.8M $155M Gross Margin % 25% 75% Operating Income Margin % NA 50% NOTE: These metrics are subject to a number of assumptions, risks, uncertainties and other factors that may cause actual results to differ materially f
Slide 25: Balance Sheet & Capitalization Snapshot
Dario Warrant Table # of Warrants Exercise Price Maturity Year 3,803,271 $1.80 2019 12,652,828 $1.25 2021 1,528,333 $4.34 2021 143,333 $5.63 2021 36,250 $3.88 2022 Warrant Total: 18.16M Dario Balance Sheet (as of 3/31/19) Cash & Equivalents $7.0M Total Assets $11.4M Total Debt $0 Capitalization Tabl
Slide 26: Management Team and Board
Olivier Jarry | President & CCO Mr. Jarry has managed innovation at the crossroads of technology, healthcare and patient - centricity for three decades on five continents. He has held several executive roles in multinational life science companies including Bayer HealthCare, Bristol - Myers Squibb a
Slide 27: Commercial Office and R&D Center
Commercial Office 142 W 57th Street, 8th Floor New York, NY 10019, USA partnershipgroup@dariohealth.com www.dariohealth.com R&D Center 8 Hatokhen Street North Industrial Park Caesarea 389000 Israel
Slide 28: Appendix 1. Non-GAAP Financial Measures
Appendix 1. - Non - GAAP Financial Measures We have provided in this presentation financial information that has not been prepared in accordance with Generally Accepted Acc ounting Principles (GAAP). These non - GAAP financial measures are not based on any standardized methodology prescribed by GAAP
Slide 29: Competition – Main Digital Care Delivery Initiatives
Company Founded Medical Device App Platform / Data Coaching Solution Dario Health 2011 Yes Native Mobile Yes 100% Data capture Yes Open Platform Yes Digital/Physical Full integrated solution running on native mobile supported by digital therapeutics. Livongo 2013 Yes Separate Handset Yes Yes Closed
Slide 30: Competitive Analysis – Dario Health / Livongo
USA only 3 continents - 0.7% A1c 1 - 2.3% A1c ~50% engagement 80% engagement NPS + 64 NPS +77 Meter is a 2 nd cell phone Meter plugged into any smart mobile device. Measurement does not engage user Real time engagement at each measurement Closed platform Platform adaptable to partnerships Rigid prop