Dariohealth Corp. · NASDAQ:DRIO
Dariohealth — Investor Presentation (February 2021)
31 slides from Dariohealth's investor presentation, Feb 4, 2021
Slide 1: DarioHealth Corp.
1 DarioHealth Corp. Nasdaq | DRIO AI - powered, digital solutions that drive durable behavior change in chronic disease
Slide 2: Forward Looking Statement
2 01 Forward Looking Statement This presentation of DarioHealth Corp. (the Company”) and statements of our management or agents related thereto contain or m ay contain forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Statements whic
Slide 3: DarioHealth – A Leader in Digital Therapeutics
3 We use technology and the science of behavior to create durable improvements in chronic disease, providing a personalized user experience at scale to make behavior change the path of least resistance. The Dario Virtuous Cycle , an AI - driven approach that uses billions of behavioral data points f
Slide 4: Mission statement
4 Empowering behavior change to alleviate the burden of chronic conditions through simple, clinically proven digital tools and coaching – Making the right thing to do, the easy thing to do. Mission statement
Slide 5: Chronic disease management represents a significant unmet need
5 Chronic disease management represents a significant unmet need. 1 in 3 children born today will develop diabetes in their lifetime 7 / 10 deaths caused by chronic disease 147M+ people in the U.S. have chronic conditions $3 of $4 spent on healthcare from chronic diseases $3.7T annual total cost to
Slide 6: Global Addressable Market – Digital Therapeutics
6 Approximately 0.5M under digital therapeutics US Penetration Global Addressable Market – Digital Therapeutics $162B opportunity in US alone. Of which less then 1% is already penetrated. 114M with chronic condition Less than 1 % penetration 1 st Condition: Hypertension $ 30 PMPM https://www.diabete
Slide 7: Dario Solution
7 Dario Solution Fully - integrated digital solutions for managing multiple chronic conditions Diabetes Hypertension Live Analytics Propriety Medical Devices Mobile Application Digital and Human Coaching A Holistic, Integrated Service For Chronic Disease Management Prediabetes Musculoskeletal *2021
Slide 8: Dario's simplicity makes engagement easy
8 DarioEngage tm devices glucometer BP cuff digital scale gamification unlimited consumables activity tracking food tracking Coaching DarioWay AI - based insights education real - time coaching performance rewards behavioral health support telemedicine providers Dario’s simplicity makes engagement e
Slide 9: The Dario Virtuous Cycle
9 personalized journey enables durable behavior change and chronic disease improvement Behavior change is the core requirement for improvement in chronic disease The user experience of 65k users generates over 4 billion behavioral data points annually The user experience of 65k users generates over
Slide 10: Dario accelerates behavior change by making the right thing to do, the easy thing
10 Dario accelerates behavior change by making the right thing to do, the easy thing to do “ Even when I know what I need to do, it feels impossible ” “With Dario tools, changing what I do is easy” Accelerates change “Its hard to keep up with devices and supplies” “I always have what I need, when I
Slide 11: Dynamic Personalization for Each Individual
11 Timing Tone Channel Content Frequency Intervention Dynamic Personalization for Each Individual AI Insights Continuously Applied to the Six Domains of Personalization for Each User (After 12 months Jack remains engaged) (After 3 months Jack drops out) “Jack’s” Dario Journey “Jack’s” Competitor Jou
Slide 12: Dario's High Engagement Rate Drives Results
12 Dario’s High Engagement Rate Drives Results Improved outcomes demonstrated in 11 clinical studies comprising >40,000 users and 3.4 million measurements Experience and satisfaction drive high user engagement Driving clinical improvement Significant cost savings Sustainable long - term outcomes Ref
Slide 13: Dario's Competitive Advantage
13 Source: commentary/analysis about competitors is attributed to SVB Leerink from its August 2019 Livongo research report. Anal ysi s on Dario is based on management estimates. • Market with less then 1% penetration • Limited competitors with scale • Dario positioned for Market Leadership Role Dari
Slide 14: Leverage D2C core to penetrate the B2B2C market
14 Market Places, Social Media, Search Engines 2020 + Leverage D2C core to penetrate the B2B2C market clients Members 2017 2019 2018 Employers Health Plans Providers 159,400 Users 3B + Data Points 15 Real Data Clinical Publications • Following the successful penetration and growth in the D2C market,
Slide 15: Strong Client Base / Expanding Pipeline
15 Strong Client Base / Expanding Pipeline • Medicare reimbursable • Opportunity for increased revenue for providers • Reduce cost • Employee satisfaction & retention • In contracting of first large employer • In partnership with health plan • Partner for self - insured employers • Fully insured • F
Slide 16: Our Highly Scalable SaaS / PaaS Business Model
16 Our Highly Scalable SaaS / PaaS Business Model Drives recurring revenue and high growth margin. SaaS Software as a service PaaS Platform as a service Medical Devices + Unlimited Disposables Application Experience Dario Coaching Medical Devices + Unlimited Disposables Enhanced Application Experien
Slide 17: Transformative M&A Acquisition of Upright
17 Transformative M&A Acquisition of Upright 17
Slide 18: Additional Growth Engine - Musculoskeletal
18 *https://www.sciencedaily.com/releases/ 2016 / 03 / 160301114116 .htm *https://ergo - plus.com/cost - of - musculoskeletal - disorders - infographic/ #1 Reason for work absentee $ 7 , 800 Annual cost of treatment 38 % More time away from work than the avg injury It ’ s a big problem 50 % $213B 52
Slide 19: Musculoskeletal – Complements Diabetes and Dario's Existing Platform
19 Musculoskeletal – Complements Diabetes And aligns well with Dario ’ s Existing Platform Shared Clients of Employers R anked MSK top condition impact costs Closely align with * Diabetes 36% Prevalence among Diabet ic s Significant TAM $ 13 B Opportunity in the US Similar Treatment Approach Require
Slide 20: UPRIGHT Satisfies All of Dario's Selection Criteria
20 DarioHealth – MSK Solution UPRIGHT Satisfies All of Dario’s Selection Criteria Consumer Centric D 2 C Focused with very high user satisfaction Wide MSK coverage Covers 52% of MSK conditions by providing a solution for Back, Neck and shoulder Significant user base that proves durable behavioral ch
Slide 21: Digital First Solution for MSK and Pain Management
21 Support the digital experience with human coaching to provide a durable behavioral change Digital First Solution for MSK and Pain Management Integrated Virtual Platform Focused on Behavior Change Mirrors Dario ’ s Current Offering Hardware / Sensors Enables biofeedback to drive personalized exper
Slide 22: Upright – Scalable, Sustainable Results
22 Upright – Scalable, Sustainable Results • Unique approach prevents and treats MSK conditions via sustainable behavioral change. • Bio - Feedback platform Unique data aggregation with an average usage of hours /day • Resulted in a sustainable ( 18 months) significant decrease in back pain ( 54 % -
Slide 23: UPRIGHT's High User Satisfaction
23 U PRIGHT ’ s High User Satisfaction Satisfaction Leads to Engagement which In turn Leads to Clinical Performance Report improvement in posture within 2 weeks 83% Would recommend within Employer 4 out of 5 Would recommend a friend 72%
Slide 24: UPRIGHT – Clinical Results
24 U PRIGHT – Clinical Results Real World Health Outcomes Highlight Strength of Offering $3 , 954 54% Severe pain level reduction User ’ s pain level rating over 13 to 18 months 57 k Users – 261 K data points Moderate pain level reduction 61 % User ’ s pain level rating over 13 to 18 months $4 , 467
Slide 25: Digital Therapy - MSK Solution Landscape
25 Digital Therapy - MSK Solution Landscape UPRIGHT Compares Favorably to Peers Active Users B2B B 2 C User Satisfaction Clinical Data HW Sensor Behavioral health Global 90 K 60K 10 K MSK Scalable Players Early stage, most players have up to 10,000 users, Hinge and upright are the only 2 companies w
Slide 26: Product Roadmap
26 Product Roadmap Layering on New Chronic Conditions for a More Complete Virtual Care Solution Multi Devices, CGM, Hyper personalization through AI. 2016 - 2018 Diabetes Personalized through user journeys and education 2019 Hypertension Fully integrated MSK solution for Employers 2021 Musculoskelet
Slide 27: Board of Directors and Advisors / Management Team
27 Dror Bacher COO Rick Anderson President & GM North America Erez Raphael CEO, Board Member Zvi Ben - David CFO Dennis M. McGrath Chair of Audit - Board Member Adam Stern Board Member Yoav Shaked Chairman of the Board Hila Karah Board Member Yadin Shemer Advisory Board Allen Kamer Advisory Board Ba
Slide 28: Financial Highlights
28 Financial Highlights Above $20M in revenue Above $ 90 M as of Jan 26 th , 2021 Transforming into B 2 B 2 C on good traction Combined proforma 2020 full - year revenue Cash position Several deals signed with employers and providers provide initial indication for a more significant sales ramp up in
Slide 29: Average revenue per user per month (ARPU)
29 Average revenue per user per month ARPU Product Enhancements Expand D2C user base Scale Via B 2 B Clients Revenue $7 $25 $ 60 $ 80 Expand market through leverage of existing and new partnerships Expanding product offering to additional chronic conditions Continue to grow profitable consumer chann
Slide 30: Balance Sheet & Capitalization Snapshot
30 Preferred Shares 3,550K Prefunded Warrants 1,183K Cash - $90M Enterprise Value $383M Stock Price $ 4.48 Shares Outstanding 14,598K Market Cap $357M Capital Structure Balance Sheet & Capitalization Snapshot Shares Outstanding 14,598K Preferred Shares 3,550K Prefunded Warrants 1,183K Warrants (Exer
Slide 31: Thank You
31 Thank You