Dariohealth Corp. · NASDAQ:DRIO
Dariohealth — Investor Day (January 2022)
37 slides from Dariohealth's investor day presentation, Jan 19, 2022
Slide 1: Dario Health – Investors Day Jan 19th, 2022
1 Dario Health – Investors Day Jan 19 th , 2022
Slide 2: Forward-looking statements
This presentation 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 and other U . S . Federal securities laws, as amen
Slide 3: Webinar: Navigating Emerging Digital Health Trends for Strategic Growth in 2022
DarioHealth (NASDAQ: DRIO) Webinar: 3 Navigating Emerging Digital Health Trends for Strategic Growth in 2022
Slide 4: Speakers: Sari Kaganoff and Dr David Kaplan
Sari Kaganoff Sari is the General Manager of Consulting at Rock Health , a digital health focused venture fund and advisory firm, where she advises clients on digital health strategy and innovation. Dr David Kaplan David is a physician and expert on healthcare and the employer market. Dr. Kaplan has
Slide 5: Agenda
| Agenda © 2021 Summary © 2022 Goals DARIO
Slide 6: Digital health investment activity 2022
Digital health investment activity 2022
Slide 7: Venture funding and deal size increased significantly in 2021
$3 9 . 9 M $3 0 . 8 M $1 9 . 9 M $2 1 . 6 M $1 5 . 8 M $1 3 . 6 M $1 4 . 7 M $ 1 5.2 M $1 0 . 7 M $1 0 . 8 M $12.3M 7 © ROCK HEALTH 2022 7 Venture funding and deal size increased significantly in 2021 U.S. DIGITAL HEALTH FUNDING AND DEAL SIZE 2011 - 2021 Note: Includes U.S. deals >$2M; data through
Slide 8: Top funded therapeutic areas include mental health, diabetes and MSK solutions
Note: Comp Source: Roc anies can be tagged as multiple value propositions and clinical indications. Rock Health tracks 23 clinical indications. k Health Digital Health Venture Funding Database; includes U.S. deals >$2M; data through December 31, 2021 8 © ROCK HEALTH 2022 8 Top funded therapeutic are
Slide 9: Valuations of mental health, MSK & diabetes care companies
© ROCK HEALTH 2022 9 9 COMPANY VALUATION TA(S) $4.8B $4.6B $3.0B $4.2B $2.1B $0.85B $6.2B $2.0B $0.1B $18.5B $0.6B (2019) Mental Health Diabetes M us cu l o s k el et a l VALUATIONS OF MENTAL HEALTH, MSK & DIABETES CARE COMPANIES Source: Pitchbook, NYSE Considering company valuations
Slide 10: Flurry of digital health companies going public
There has been a flurry of Digital Health companies going public NUMBER OF EXITS DIGITAL HEALTH’S PUBLIC EXIT DROUGHT 15 20 10 5 0 10 © ROCK HEALTH 2022 10 Source: Rock Health Digital Health Public Company Index DIGITAL HEALTH PUBLIC EXIT ACTIVITY 2011 - 2021 25
Slide 11: Increase in M&A activity in 2021
EXAMPLE ACQUISITIONS 2020 - 2021 QUARTERLY DIGITAL HEALTH M&A ACTIVITY 2020 - 2021 Note: Data through 2021. Digital health M&A activity refers to acquisitions and/or mergers of digital health companies. Source: Rock Health Digital Health M&A Database 0 20 40 60 80 100 M& A DEALS Q 2 Q 3 Q 4 Q 1 Q2 Q
Slide 12: FDA approvals and clearances 1997–2021
L E G E N D TOP NON - US HEADQUARTER LOCATIONS 2,3 FDA approvals and clearances from 1997 – 2021 1 OVERALL US VERSUS NON - US BREAKDOWN FDA approvals and clearances from 1997 – 2021 1 31 9 I S R A EL C A N A D A 19 N E T H E RLAND S 14 F R A N CE 14 S WE D EN 13 J A P AN 13 UK 10 C H INA A U ST R A
Slide 13: Digital Health Market Main Clients Trends
| Digital Health Market 3 Main Clients Trends Consumerization Consolidation Py Wider Market Adoption
Slide 14: Employer Market Insights
Employer Market Insights by Dr David Kaplan
Slide 15: Employer priorities
• Getting back into the office/COVID • Retaining and recruiting talent • Addressing equity issues in workplace • Preparing for a resource constrained environment if economic conditions deteriorate 15
Slide 16: What employers look for in programs
• Ability to bill through their medical budgets • Demonstrable return on investment (ROI) • Programs that simplify their healthcare ecosystems - consolidation of solutions • Programs that focus on rising cost areas • Programs that will delight their employees - consumer centric 16
Slide 17: DarioHealth product offering and strategy
DarioHealth — SA ge : Product Offering =. ZS e i a gh Se Strategy Pr
Slide 18: Multi-condition platform strengths and clinical studies
apple app store rating Multi Conditions 26 Clinical Studies 38,800 Users per single study with 2 - year sustained results • Best in user - centricity / DNA of the company • Most comprehensive platform • Best Return on investment 18
Slide 19: Patient has one consolidated experience
Patient has ONE Consolidated Experience e@ One journey Musculoskeletal ‘One Weight chin moa Management Ino @ Behavioral Health “Kw Fully }} ») Integrated Hypertension Holistic User Centric PARI
Slide 20: Hyper-personalization and proactive treatment
• Built to engage based on hyper - personalization. • Proactive flagging and treatment initiation 20
Slide 21: Strategic Roadmap
| Strategic Roadmap - Personalization, Automation, Scale 6G e~ Expand conditions & Services Screening & Navigation ow
Slide 22: Expansion of Dario Move with computer vision
Expansion of Dario Move Offering with Computer Vision mobile capabilities Significant Capabilities: 1. Objective scoring using evidence - based functional movement AI 2. Automated exercise allocation (reduce human need) 3. Predictive risk of injury assessment Validated by elite NBA & NFL teams as we
Slide 23: J — en |
J — en |
Slide 24: 2021 Summary
2021 Summary
Slide 25: 2021 summary: partnerships and preliminary results
25 national health plan significant partnerships of deals signed in last 6 months * Estimates revenues (unaudited) for 2021 between $20.3M to $20.5M ** Adjusted NON - GAAP gross profit for the nine months ended Sep. 30, 2021, excluding amortization of expenses related to acquisitions of technologies
Slide 26: Growth of integrated platform creates demand
2016 2017 2018 2019 2020 2021 Growth of integrated platform creates demand from stakeholders who desire healthier outcomes for their constituents 26
Slide 27: Validation of platform from multiple market segments
Validation of platform from multiple market segments 2 nd health plan announced this morning. 3 additional accounts announced since year start 27
Slide 28: Quarterly revenue 2020–2021
28 1.67 1.79 2.04 2.08 3.6 5.3 5.6 5.9 Q 1 Q 2 Q 3 Q4 Q 1 Q 2 Q 3 Q4 2020 2021 • • The Company is providing revenue, cost of revenue and gross profit estimates in this presentation, rather than specific amounts , primarily because the financial closing process and review are not yet complete and, as
Slide 29: 2022 Sales Activity
2022 Sales Activity
Slide 30: Pricing: eligible population and enrollment rate
Eligible Population Enrollment Rate • Paid per employee with access to the platform • Paid for eligible members that are enrolled to the platform • Recurring billing for retained members 30
Slide 31: PEMPM and ARPU growth
8% Eligible 40 % Eligible $60 PEMPM on similar sales effort $89 PEMPM More Members per account on the platform Higher ARPU (average revenue per user) Eligible Population Enrollment Rate 31
Slide 32: Positioned to double account base in 2022
32 140 120 100 80 60 40 20 0 • 2021 sales activity positioned us to double account base in 2022 • 70% of the signed accounts have been signed in the last 6 month * Represents the Company’s potential signed account growth in 2022
Slide 33: Potential annual recurring revenue of signed clients
33 • Potential annual recurring revenues (ARR) upon full implementation of clients. #54 #100 - #120 #5 • Clients potential ARR includes B2B only and does not includes the Direct - to - consumer revenues. • Full potential implementation is expected within 4 - 6 quarters. * Includes potential expansio
Slide 34: 2022 Goals
| 2022 Goals @ Multi Strategic Condition Partnership Increase number of Anticipating ‘dd More thon Establish clients launch in 40% 1-3 -5 Health plans to client @t-o2 2022 ff Rese sawsscn 2022 “ Of signed accounts strotepe partnership in es are for 202: Multi condition 2022 DARIO
Slide 35: Healthcare is transforming to be digital and consumer centric
Healthcare is transforming to be digital, consumer centric driven and value based “Non - Digital” Health Care giants recognize the transformation and will take bigger role in being part of the newly created space Dario Health is positioned to lead the newly created category Strong tech, high margins
Slide 36: Gross profit reconciliation
Gross profit as reported Amortization of expenses related to acq. of technology Gross profit Non - GAAP Revenues $14,485 $14,485 Cost of revenues $11,070 - $3,324 $7,746 Gross Profit $3,415 $3,324 $6,739 GP % 23.6% 46.5% 36 The Company is providing revenue, cost of revenue and gross profit estimates
Slide 37: Thank You
» il Thank You