Digital chronic condition management company DarioHealth reported full-year 2024 revenue of $27 million, a 32.9% increase from $20.4 million in 2023, attributed to a consolidation of Twill's revenue and increased revenue from its commercial channels.

The New York-based company acquired Twill in early 2024. 

The company's full-year B2B2C, employers and health plans recurring revenues increased 300% to $20 million, compared to $5 million in 2023. 

Total revenue for the fourth quarter was $7.6 million, a 110% increase compared to $3.6 million in Q4 2023. DarioHealth said the increase was driven by a consolidation of Twill revenue and increased revenues from its B2B2C channels. 

The company reported gross profit in the fourth quarter of $4.2 million, compared to $132,000 for the same period the prior year, an increase of 3,080%. It said that its growth was driven by its B2B2C revenues. 

Last year's gross profits were $13.3 million, an increase of 122% from $6 million in 2023.

Total operating expenses in Q4 2024 were $15.9 million, compared to $14.3 million in Q4 2023, and operating loss was $11.7 million, an 18% decrease from the same period the prior year.   

For 2024, total operating expenses were $71 million, a 14.2% increase, compared with $62.2 million for 2023. Operating loss in 2024 increased to $57.7 million from $56.2 million in 2023. 

DarioHealth reported a net loss of $9.6 million in the fourth quarter of last year, compared to a loss of $14.3 million in the fourth quarter of 2023, and a full-year net loss of $42.7 million, compared to a loss of $59.4 million in 2023.  

"Our strategic initiatives yielded remarkable financial improvements throughout 2024 in both our top and bottom line. We are already seeing this positive trajectory continue into 2025," Erez Raphael, CEO of DarioHealth, said in a statement.

"While we are excited about our top-line growth, profitability cannot be achieved through revenue growth alone. With a dual focus on revenue and expense efficiency, we implemented focused cost-management strategies that led to a 35% reduction in our operating loss from the first quarter of 2024 to the fourth quarter of 2024 without impairing our growth ambitions. Looking ahead, we anticipate an additional 20% reduction in operating expenses by the fourth quarter of 2025, which we believe can further strengthen our financial position."

THE LARGER TREND

In January, DarioHealth announced it closed a $25.6 million private placement of convertible preferred stock, with most funds secured from existing shareholders. 

The balance of the funds was provided by a network of accredited healthcare investors and executives from within the healthcare sector.

Private placement allows a company to sell debt or equity securities to a small number of investors. It is an alternative to selling securities publicly. The placement can include preferred stock, common stock and other methods of interest, including warrants, hedge fund interests, promissory notes, debentures and bonds.

DarioHealth also announced it expanded its GLP-1 offering with prescribing capabilities and a collaboration with multi-specialty digital health provider MediOrbis to add prescribing capabilities to its offerings.  

Last year, the company announced partnerships with a pharma company that would use DarioConnect to boost user engagement and a Medicare Advantage health plan that would use Twill by Dario for its plan members.