Dariohealth Corp. · NASDAQ:DRIO
Dariohealth — Investor Presentation (February 2024)
35 slides from Dariohealth's investor presentation, Feb 22, 2024
Slide 1: A Comprehensive, User-Centric Digital Health Platform
A Comprehensive, User-Centric Digital Health Platform DarioHealth Corp. + Feb 21st, 2024
Slide 2: Forward-looking statements
2 01 This presentation of DarioHealth Corp. (“Dario”, the “Company”, “we” and “our”) and statements of our management or agents related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Statements which a
Slide 3: Combined Company Highlights
DRIO | Nasdaq listed | 3 Combined Company Highlights Combined Entity Partnered With 3 of Top 8 National Health Plans Aetna, Sanofi, Blues Plan, and other household name employers including 3 of the top 7 tech companies in the world. SaaS-like Financial Profile Combination serves a larger eligible po
Slide 4: Combination Creates an Unrivaled Market Position Post Twill Acquisition
4 Combination Creates an Unrivaled Market Position Post Twill Acquisition Enhanced Product Offering Optimized Go To Market Strategy Better Clients and Member Economics Financial Profile • Best in class consumer centric solution • Comprehensive multi condition platform across 6 conditions • Powerful
Slide 5: $171B opportunity in the U.S. alone
DRIO | Nasdaq listed | 5 $171B opportunity in the U.S. alone of which less than 2% is already penetrated TAM – Exceptional and Untapped Adults in the US have a chronic disease (2) 60% Annual Health Care Costs to the U.S. economy (1) $4.1T of aggregate U.S. healthcare spending accounted for chronic d
Slide 6: Dario's Timeline of Expansion Through Market Consolidation
Launch Direct-to-Consumer Launch DRIO | Nasdaq listed | 6 Business-to-Business First B2B client win 2022 2023 Total +100 B2B Clients D2C 2017 2018 Hypertension 2019 Weight Management B2B 2020 Musculoskeletal 2021 Behavioral Health Expansion from DTC* & Single-Condition to B2B2C across multiple condi
Slide 7: Value Exchange Between Dario Stakeholders
DRIO | Nasdaq listed | 7 CONSUMERS DATA Pha rma B2C B2B2C Cha nne ls Diabetes Hypertension Weight Management MSK Behavioral Health Value Exchange Between Dario Stakeholders B2C / Consumer Online marketing MSK, diabetes and hypertension B2B2C / Health Plans and Employers Recurring Monthly Revenue Str
Slide 8: One of digital health's first consumer centric platforms
8 One of digital health’s first consumer centric platforms which starts at navigation and ends at treatment across 6 conditions. + Multi condition platform clinically proven to deliver cost savings and improved clinical outcomes Integrated software solution powering user engagement and navigation to
Slide 9: User Centricity Translates to Value Creation
9 Employer/Payor ↑ Enrollment Traditional Enrollment ↑ ARPU ↑ Engagement 1 2 3 User Centricity Translates to Value Creation… Behavioral Health Maternal Health MSK Diabetes Hypertension Weight Loss Combined Service Offering (multi-condition network) Twill Care (AI based network navigation) Wellbeing
Slide 10: Dario Has Built a Consolidated and Personalized Experience
DRIO | Nasdaq listed | 10 Metabolic Dario has Built a Consolidated and Personalized Experience The Dario ecosystem provides members the capability to monitor their progress with seamless integration across products Behavioral Health Musculoskeletal
Slide 11: Dario Delivers Members a Dynamic, Personalized Journey Powered by AI
DRIO | Nasdaq listed | 11 Dario Delivers Members a Dynamic, Personalized Journey Powered by AI Insights dynamically applied to six domains of personalization creating engagement throughout patient journey Dario’s adaptive approach flexes to members’ changing needs and circumstances, using their uniq
Slide 12: GLP-1 Behavioral Change Program
DRIO | Nasdaq listed | 12 • Onboarding with a clinical coach sets members up for success. • Dedicated specialty health coaches support members on their health journey. • Tailored weight loss program to help members achieve weight loss goals and develop healthy habits. GLP-1 Behavioral Change Program
Slide 13: Real World Clinical Results
DRIO | Nasdaq listed | 13 Real World Clinical Results 1.1–2.3 pts Reduction in A1c 54% reduction in severe pain 58% reduction in hyperglycemic events 48%, 59% reduction in Depression and Anxiety Symptoms (Respectively) 8.4 mmHg reduction in systolic blood pressure for 70% of members 4.9/5 Stars app
Slide 14: Twill's Complimentary Platform and Capabilities
DRIO | Nasdaq listed | 14 Twill’s Complimentary Platform and Capabilities 70% Women Activated in 1st Trimester of Pregnancy 18M+ Covered Lives Across Customer Accounts 58% More Effective in Improving Depression Symptoms vs. Control Group Accelerated delivery of simple and seamless end-to-end materna
Slide 15: The Combination Creates an End-to-End User Experience
15 Integrated software and device patient experience Integrated software and clinical services patient experience The Combination Creates an End-to-End User Experience Combined Services: • Configurable Navigation • Activation • Community • AI-Based Chat • Devices • DTx • Coaching • Integration to Cl
Slide 16: Together We Address Clients' Top Priorities
DRIO | Nasdaq listed | 16 Together We Address Clients’ Top Priorities Covered by Dario and Twill Behavioral Health Diabetes Financial well-being 48% Nutrition/weight management Physical activity Cardiovascular health Musculoskeletal 26% Cancer 23% Family planning and support 14% 75% 49% 40% 39% 28%
Slide 17: Combination Creates Vertically / Horizontally Integrated Platform
DRIO | Nasdaq listed | 17 Combination Creates Vertically / Horizontally Integrated Platform The only consumer centric, multi condition solution with real world clinical studies that show tangible results for payors, employers and end users alike Comprehensive and feature filled consumer platform Men
Slide 18: Revenue Channels and Business Model
DRIO | Nasdaq listed | 18 Revenue Channels and Business Model Strategic Revenue Paid in Milestones Pharma Private Label or custom delivery Strategic Partnerships Managed Medicare & Medicaid Fully insured commercial Health Plans / PBMs Direct to employer Consultants/Brokers Through health plans and P
Slide 19: Multi-Condition Strategy Compounds Economic Value
DRIO | Nasdaq listed | 19 75% Retention rate Example: Employer with 10,000 employees: 1,400 employees enrolled, $900K in yearly revenue (post churn) 30% Enrollment Rate Employer Client $89 Per Engaged Member Per Month (Full suite) Up to 40% eligible More Members per account on the platform Multi-Con
Slide 20: Dario-Twill Combination Accelerates Revenue Growth
DRIO | Nasdaq listed | 20 Dario-Twill Combination Accelerates Revenue Growth Synergies Across the Full Spectrum of Growth Opportunities Larger Eligible Member Population • Twill Care and precision care enable larger population touch 6 covered conditions total Increased ARPU • Larger number of paying
Slide 21: Strategic Approach to Partnership Accelerates Commercial Adoption
DRIO | Nasdaq listed | 21 Partners network with access to: 15,000 employers 105 health plans Strategic Approach to Partnership Accelerates Commercial Adoption and Enhances Competitiveness 50M Members 3.5M Members 5M Members 700k Members 21M Members Member lives: 87 Million* Total Addressable Market:
Slide 22: Rapidly growing pipeline through partners
DRIO | Nasdaq listed | 22 Rapidly growing pipeline through partners Near Term Growth – Dario Signed Partnerships Amwell, Solera, and Aetna customers use existing contracts to shorten sales cycle with access to: 14M members with access to: 20M+ members January 2024 Launch available to: 21M commercial
Slide 23: Strategic Partnerships Advantage: $30M
DRIO | Nasdaq listed | 23 Strategic Partnerships Advantage: $30M Multi-year, $30 million agreement, will help accelerate the 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
Slide 24: Dario – Twill Revenue 2023
DRIO | Nasdaq listed | 24 B2B2C Dario – Twill Revenue 2023 – 9 Month Revenues Consumer – B2C • $8M – Dario Annual run rate • Cash positive business line Commercial – B2B2C • $5.5M – Dario recurring annual run rate Commercial – Strategic • $6.3M – Strategic projects with Sanofi and Aetna • $3.5M – Pl
Slide 25: Multiple Avenues of Revenue Growth
DRIO | Nasdaq listed | 25 Multiple Avenues of Revenue Growth Retain Users Ramp Up Signed Contracts Land & expand Partnership Access New contracts $60M in contract value Access to 87M potential members Existing Clients • Additional conditions • Additional populations • Additional enrollment Growth st
Slide 26: Financial Profile Improvement – GAAP
DRIO | Nasdaq listed | 26 Financial Profile Improvement – GAAP 33.2% 19.3% 34.9% 35.0% 2020 2021 2022 1-9/2023 Gross Profit Operating Expenses Operating Loss 2021 2022 1-9/2023 2021 2022 1-9/2023 -$42M -$76.5M -$56.8M $80.5M $66.5M $47.8M
Slide 27: Financial Profile Improvement – Non-GAAP
DRIO | Nasdaq listed | 27 Financial Profile Improvement – Non-GAAP Gross Margins Trend (Non-GAAP) Continuous improvement of gross margins due to larger B2B2C business. B2B2C business already achieved 70% gross margins Business expected to reach 80-85% gross margin at scale 2020 35% 2021 40% 2022 51%
Slide 28: Capital structure
DRIO | Nasdaq listed | 28 Capital structure (*) $30 million long-term loan. Balances as of September 30, 2023: Cash and short-term investment (*): $43.9M Balance Sheet & Capitalization Snapshot, as of February 21, 2024 Stock Price $2.44 Shares Outstanding 27,787K Market Cap $68M Shares Outstanding 2
Slide 29: Experienced Executive Management Team
DRIO | Nasdaq listed | 29 Rick Anderson President Erez Raphael CEO, Board Member Zvi Ben-David CFO Omar Manejwala, M.D. Chief Medical Officer Josh Fischer SVP Operations and Compliance Brian Harrigan SVP Employer Sales Mary Mooney VP Marketing Tomer Ben-Kiki Chief Operating Officer Experienced Execu
Slide 30: Board of Directors and Advisors
DRIO | Nasdaq listed | 30 Dennis M. McGrath Chair of Audit - Board Member Adam Stern Board Member Yoav Shaked Chairman of the Board Hila Karah Board Member Allen Kamer Advisory Board Dennis Matheis Board Member Eric Milledge Chairman of the Scientific Advisory Board Marilyn Ritholz, PHD Scientific A
Slide 31: Thank You!
31 Thank You!
Slide 32: Non-GAAP Financial Measures
DRIO | Nasdaq listed | 32 Non-GAAP Financial Measures We have provided in this presentation 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
Slide 33: Reconciliation between Gross Profit and Gross Margin
DRIO | Nasdaq listed | 33 Reconciliation between Gross Profit and Gross Margin In USD 000 Nine months ended 2020 2021 2022 September 30. 2023 Revenues: Services $2,085 $17,859 $11,171 Hardware and consumable products $18,428 $9,797 $5,565 Total revenues $7,576 $20,513 $27,656 $16,736 Cost of revenue
Slide 34: Reconciliation between Operating Expenses and Operating Expenses (non-GAAP)
DRIO | Nasdaq listed | 34 Reconciliation between Operating Expenses and Operating Expenses (non-GAAP) In USD 000 Nine months ended 2021 2022 September 30. 2023 Operating expenses: Research and development $17,219 $19,649 $16,052 Sales and marketing $39,706 $30,323 $19,163 General and administrative
Slide 35: Reconciliation between Operating Loss and Operating Loss (non-GAAP)
DRIO | Nasdaq listed | 35 Reconciliation between Operating Loss and Operating Loss (non-GAAP) In USD 000 Nine months ended 2021 2022 September 30. 2023 Operating loss $76,494 $56,810 $41,974 Less Gross profit adjustments: Amortization of acquired intangible assets $4,106 $4,357 $3,281 Depreciation a