DarioHealth Corp, a prominent player in the global digital health market, released its financial results for the third quarter (Q3) of 2023 today, revealing a significant decline in revenues compared to the same period last year. Following this announcement, the stock of DarioHealth Corp witnessed a notable drop.
At the time of this publication, DarioHealth Corp stock (DRIO) has witnessed a decline.
DarioHealth Corp
Current Price: $0.79
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DarioHealth Corp Q3 Results for Three Months Ended September 30, 2023:
For the three months ending on September 30, 2023, DarioHealth reported revenues of $3.52 million. This marked a substantial 46.7% decrease from the $6.6 million reported in the third quarter of 2022, and a 42.8% decline from the $6.15 million in revenue recorded in the second quarter of 2023. The reduction in revenues for this quarter was primarily attributed to a decrease in earnings from the Company’s strategic partnerships included in service revenues and the B2C channel.
The gross profit for the third quarter of 2023 amounted to $610,000, representing a $1.19 million decrease compared to the third quarter of 2022. This also reflected a 70.6% drop from the $2.1 million in gross profit reported in the second quarter of 2023. As a percentage of revenues, gross profit declined to 17.3% in Q3 2023, down from 27.3% in Q3 2022, and further down from 33.7% in Q2 2023.
Excluding $1.1 million in amortization expenses related to technology acquisition, pro-forma gross profit for the third quarter of 2023 was $1.72 million, constituting 48.8% of revenues. This was compared to a pro-forma gross profit of $2.9 million (44% of revenues) for the same period in 2022, and $3.2 million (51.5% of revenues) for the three months ending on June 30, 2023.
Total operating expenses for Q3 2023 amounted to $16.2 million, slightly down by $0.2 million (1.3%) from the same period last year. This was mainly attributed to reduced marketing expenses. When excluding stock-based compensation, earn-out measurement, and depreciation, total operating expenses were reported at $10.9 million for the third quarter of 2023, compared to $11.4 million for Q3 2022.
The operating loss for the third quarter of 2023 was $15.5 million, indicating a $1 million (6.7%) increase compared to Q3 2022. This was primarily due to the decrease in gross profit. When excluding stock-based compensation and depreciation, the operating loss for Q3 2023 was $9.15 million, up from $8.4 million in Q3 2022.
In terms of net loss, Q3 2023 saw a total of $15.7 million, a slight increase of $100,000 (0.6%) from the same period in 2022. However, when excluding stock-based compensation, acquisition-related expenses, and depreciation, the net loss for Q3 2023 was $9.15 million, compared to $8.4 million for Q3 2022.
DarioHealth Corp Q3 Results for Nine Months Ended September 30, 2023:
Looking at the nine months ending on September 30, 2023, DarioHealth reported revenues of $16.74 million, representing a 19.7% decrease from the $20.85 million recorded in the same period in 2022. This drop was primarily attributed to the planned reduction in revenues from consumer hardware sales and a decrease in revenue related to data access and development services from the Company’s strategic partners.
Gross profit for the nine months ending on September 30, 2023, was $5.85 million, a 15.5% decrease from the $6.92 million reported for the same period in 2022. Pro-forma gross profit, excluding $3.3 million in amortization expenses related to acquisitions, was $9.1 million, with a gross profit margin of 54.6%, compared to $10 million and 48.2% respectively for the same period in 2022.
Total operating expenses for the nine months ending on September 30, 2023, were $47.8 million, down by $6.9 million (12.6%) from the same period in 2022. This reduction was primarily due to decreased sales and marketing expenses. Excluding stock-based compensation and depreciation, total operating expenses were reported at $32.3 million, compared to $39.7 million for the same period in 2022.
The operating loss for the nine months ending on September 30, 2023, decreased by $5.8 million to $42 million, compared to a $47.8 million operating loss for the same period in 2022. This reduction was mainly attributed to decreased operating expenses.
Net loss for the nine months ending on September 30, 2023, was $45.1 million, compared to a net loss of $49.6 million for the same period in 2022. This decrease was driven by lower operating expenses, partially offset by higher financing expenses.
Non-GAAP billings for the nine months ending on September 30, 2023, were $16.1 million, a 22% decrease from $20.6 million for the same period in 2022. Non-GAAP adjusted net loss for the nine months ending on September 30, 2023, was $26.2 million, a 16.3% decrease from a $31.3 million non-GAAP adjusted net loss for the same period in 2022.
