DarioHealth Corp. (NASDAQ: DRIO), a leading global digital health company with mobile health and big data solutions, today reported financial and operational results for the fourth quarter and full-year periods ended on December 31, 2017.
Fourth Quarter Highlights
- Record revenues of $1.6 million increased 88% compared to the fourth quarter of 2016
- Sequential quarterly revenue growth of 15% over the third quarter of 2017
- Twelfth consecutive quarter of revenue growth
- Gross profit of $569,000, an increase of 188% compared to the fourth quarter of 2016
- Net loss decreased by 15% from the fourth quarter of 2016
2017 Highlights
- Record revenues of $5.2 million increased 84% compared to the full year 2016
- Gross profit of $1.3 million increased 258% compared to the full year 2016
- Launched into a new market - Germany
- Received three additional regulatory clearances: FDA for Android, CE Lightning, TGA Australia for Lightning
- Received positive market recognition as a digital health industry leader, from both a company and product offering perspective:
- Best "100 Global Digital Health" by The Journal of mHealth
- Best Glucometer for Data Management by Top Ten Reviews
- Selected by Philips' HighTechXL innovation hub
- Recognized by CCG UK as the "First Choice" for Type 1 Diabetes
2018 Outlook
In 2018, Dario Health is confident in its ability to continue to execute on its vision and anticipates continued strong growth building on the foundation fundamentals established during 2017, including:
- Regulatory clearances
- Reimbursements in several territories
- Extended offering beyond monitoring and disposables
- Presence and operations in multiple markets
- Expansion into multiple sales channels - including B2B and B2C
Additionally, during Q1 2018, DarioHealth raised approximately $6.6 million. The investment was led by a specialized healthcare technologies fund joined by existing major shareholders of DarioHealth, among others. The proceeds will be used to execute on the Company's growth plans.
For the first time, the Company is providing revenue guidance. The Company forecasts 2018 revenues to be between $8.3 million and $9.3 million.
Erez Raphael, Chairman and CEO of DarioHealth, commented, "Our vision and focus has enabled us to achieve real progress and numerous accomplishments during 2017 and has positioned Dario for continued growth and market penetration in 2018.
"Both the fourth quarter and full year 2017 saw record sales and we established a more predictable stream of high margin recurring subscription revenues. We are excited by the positive engagement we are achieving with our users translating into significant monthly user growth and customer lifetime value. Based on our continued momentum, we expect annual revenue growth of at least 60% in 2018.
"Today, more than ever, we have confidence that DarioHealth will transform the market from a pure monitoring solution into a full digital care solution. Dario's products combine monitoring disposables, software and service capabilities, and will result in a significantly better clinical benefit to our user."
Full Year 2017 Results Summary
For the twelve months ended December 31, 2017, revenues were $5.2 million, an 84% increase from $2.8 million for the twelve months ended December 31, 2016.
Revenues generated during the year ended December 31, 2017 were derived mainly from the sales of DarioHealth's components, including the Dario™ Blood Glucose Monitoring System itself, through direct sales to consumers located mainly in the United States, Australia and Germany, through the Company's online stores and through distributors in Canada, Italy and the United Kingdom.
Gross profit increased by $2,141,000, a 258% increase to a profit of $1,311,000 in the twelve months ended December 31, 2017, as compared to a $830,000 gross loss in the twelve months ended December 31, 2016.
Operating loss for the twelve months ended De...
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