Dariohealth Corp. · NASDAQ:DRIO
Dariohealth — Q2 2022 Earnings Presentation
21 slides from Dariohealth's earnings presentation, Aug 15, 2022
Slide 1: DarioHealth Corp.: A Comprehensive, User-Centric Digital Therapeutic Platform
DARIOHEALTH CORP. A Comprehensive, User-Centric Digital Therapeutic Platform Nasdaq | DRIO
Slide 2: Forward Looking Statement
Forward Looking Statement el tegen elle el Company") and statements of i i Private “Act about our future results, perf liquid ition, format tousana what is believed business, including events. For example, that the expansion of our growth, our ‘ the expected benefits to be deve ror our businesses, i
Slide 3: *Business to Business to Consumer
2 *Business to Business to Consumer
Slide 4: B2B2C Transition is working!
B2B2C Transition is working! © DTC Key Differentiator The Al/ML backbone of our technology was built from billions of DTC data points dario * Direct to Consumer fi B2B2C Confidence Our plan to transition to B2B2C is working Right time to significantly reduced spend on DTC* GJ Focus Focus all our hum
Slide 5: Non-GAAP OPEX and operating loss
* Non - GAAP OPEX – excluding stock - based compensation, earn - out revaluation, amortization of acquisition related expenses and depreciation ** Non - GAAP Operating Loss – excluding stock - based compensation, earn - out revaluation, amortization of acquisition related expenses and depreciation *
Slide 6: OPEX and Non-GAAP OPEX in $M
$ 22.2 $ 19.8 $ 18.5 $16.4 $14.9 $13.4 $6.0 $12.0 $10.0 $8.0 $14.0 $16.0 $18.0 $20.0 $22.0 $ 2 4.0 Q 4/21 Q 1/22 Q 2/22 OPEX and Non - GAAP OPEX in $M GAAP Opex Non GAAP Opex • • • * excluding stock - based compensation, earn - out revaluation, amortization of acquisition related expenses and deprec
Slide 7: Gross Profit 2021 H1 vs 2022 H1
• • • 1 9 .3 36.0 3 9 .3 5 0 .2 10 0 20 3 3 .2 30 40 50 60 2 0 20 Gross Profit 2021 H1 2022 Gross Profit (Non - GAAP) Exc. Acq. Releated amortizations
Slide 8: Half-year revenue trend H1/20 to H1/22
$ 3.4 $ 4.1 $ 8.8 $ 11.7 $ 14.2 H1/20 H2/20 H1/21 H2/21 H1/22 2020 2021 2022 • • • • •
Slide 9: Balance Sheet
Balance Sheet $ wi $68M As of June 30, 2022 dario & $25M Access to Orbimed credit line for additional $25M
Slide 10: Commercial Momentum Continues
COMMERCIAL MOMENTUM CONTINUES with meaningful deals signed worth $55M in total contract value
Slide 11: Potential value when customer base is fully converted
* When customer base is fully converted. Dario’s calculation based on assumption of lives on platform and percentage that buy up to higher levels of services
Slide 12: B2B2C progress to date
B2B2C progress to date January 2022 — Set Objective: @ Mid year status Clients Base Anticipating 100%+ growth in client base in 2022 Achieved 35% growth in client base Health plans to client base in 2022 Added ® Multi Condition More than 9 40% Of signed accounts are for Multi condition 9 35% Of sign
Slide 13: Account Momentum accelerates 2H 2021 and into 2022
Account Momentum accelerates 2H 2021 and into 2022 Signed Accounts 140 #100° oo a + 69accounts signed so far + Strong partners that expand our " #69 sales capability (including Sanofi) + Total value of contracts $55M 60 #51 40 20 #5 ° hs 2020 2021 2022 2021 sales activity positioned us to double acc
Slide 14: Implementation of Multi Condition
Implementation of Multi Condition Retention of Enrollment rate 70% -80% averaging above “ "30% Add retention - 70%80% dario Eligible lives can reach 40% B2B2C direct CAC is below $20 Gross Margins on pure B2B2C business is above 70% Q2/22
Slide 15: Recurring revenue streams with Sanofi partnership
recurring revenue streams with Sanofi partnership showing robust traction value
Slide 16: Strategic Partnerships - Sanofi
Strategic Partnerships - Sanofi * Multi-year, $30 million-dollar agreement, will help accelerate commercial adoption of Dario’s full suite of digital therapeutics and drive the expansion of digital health solutions on the Dario platform. + Sanofi selected Dario to leverage its broad suite of digital
Slide 17: Partnerships
Partnerships Partnerships multiply the access to the market » «SOLERA wliibe SANOFI .%
Slide 18: Platform and Market Reach Transformation
Platform and Market Reach Transformation © 242,000 users Product Suite ~ ----» Behavioral Health Expansion through M&A. “>a 2) Musculoskeletal 65,000 users: Product Suite - Organic Expansion First B2 client win 50,000 users “ ) Weight Management ) Hypertension eo Diabetes Offering Pe e —— 40,000 use
Slide 19: Non-GAAP operating expenses reconciliation
Dec. 31, 21 Mar. 31, 22 Jun. 30, 22 Operating expenses 22 , 213 19 , 857 18 , 493 Less: Stock based compensation 6 , 279 5 , 320 3 , 604 Depreciation 49 48 57 Amortization of Acquired Brand 12 31 31 Earn - out revaluation - 503 - 452 1 , 39 1 Non GAAP operating expenses 16 , 376 14 , 91 0 13 , 41 0
Slide 20: Non-GAAP operating loss reconciliation
Dec. 31, 21 Mar. 31, 22 Jun. 30, 22 Operating loss 21 , 665 15 , 872 17 , 355 Less: Inventory step up amortization 155 Amortization of Acquired Technology 627 932 1 , 094 Stock based compensation 6 , 300 5 , 343 3 , 629 Depreciation 81 70 84 Amortization of Acquired Brand 12 31 31 Earn - out revalua
Slide 21: Thank You!