DarioHealth Q1 revenue rises sequentially, operating loss narrows on cost reductions

Overview

• Digital health platform's Q1 revenue rose sequentially but fell yr/yr due to one-time prior revenue

• Operating expenses fell 21% yr/yr and operating loss narrowed 22% yr/yr

• Company added 10 new accounts and expanded channel partnerships, now reaching 116 mln covered lives

Outlook

• DarioHealth sees potential for increased scale and operating leverage from its channel-led commercial model

Result Drivers

• REVENUE MIX SHIFT - Year-over-year revenue fell mainly due to the non-recurrence of $1.3 mln in pharmaceutical customer revenue as co shifted focus to recurring B2B2C business

• CHANNEL PARTNER GROWTH - Sequential revenue growth was driven by onboarding of new clients from channel partners and increased MSK product sales

• COST REDUCTIONS - Operating expenses decreased year-over-year and quarter-over-quarter, mainly due to increased operational efficiency

Company press release: ID:nPn7yVGPva

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

• Wall Street's median 12-month price target for DarioHealth Corp is $18.00, about 107.4% above its May 12 closing price of $8.68

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